Stock Code: 603529 Abbreviation: Aima Technology
AIMA TECHNOLOGY GROUP CO., LTD.
2022 Annual Report
Letter to ShareholdersDear Shareholders,
The past 2022 was remarkably significant. For Aima Technology, it was a year full of progress, whichwas gained by working hard to surmount difficulties and facing up to changes while maintaining stability.It was also a year witnessing our all-out efforts in forging ahead. As the Russo-Ukrainian War triggered aglobal energy crisis, pushed up the prices of raw materials, and impacted the already overwhelmed globalsupply chain, and suffering from the public safety risk caused by the highly contagious virus, China keepsto the guiding principle of being “people-oriented” and has taken effective strategies to respond to thispublic health issue, which somehow restricted the domestic circulation and consumption. Facing thefrequent extreme weather and climate incidents and the notable climate anomalies, no country could stayaloof, and any extreme weather may result in a rather big shock to the offline economy.In pursuit of realizing the goals of Carbon Peaking and Carbon Neutrality and in the context of aworld-wide replacement of fossil fuel with electricity, considering the complex political and economicsituation and market environment, the Company focuses on its main business, and persistentlytransforms into a platform-based technology company that provides green and convenient travel solutions,and continues to promote its innovative development, organizational reform, management improvement,product upgrade, quality improvement, and digital transformation, adheres to the guiding value centeredon long-termism, and continuously improves the comprehensive distribution efficiency of “from insightinto user demands to satisfying them”. In the past year, the Company achieved a leapfrog growth: itsmain products recorded a sales volume of 10.7727 million units, up by 24.25% on a year-on-year basis,its revenue hit RMB 20.802 billion yuan, a year-on-year increase of 35.09%, its net profit attributable toshareholders reached RMB 1.873 billion yuan, skyrocketing by 182.14%, and many of its importantsubsidiaries have been certified as high-tech enterprises.
In recent years, electric two-wheeler users in China have attached more importance to such majorclaims as green, convenience, intelligence, experience, and personalization. In addition to makingincreasingly diversified demands, consumers are also seeking for ever greater perfection in ridingexperience and personalization, putting forward higher requirements for vehicle manufacturers, so that alarge number of companies providing homogeneous products are being knocked out of the game. It willbe the mainstream trend in the industry at present and within a certain period of time in the future forlarge-scale enterprises to compete in terms of comprehensive strength. This competition comes down tothe value guidance, accurate identification, rapid response and full satisfaction of user demands.
Since its engagement in the R&D and manufacturing of electric two-wheelers in 2004, AimaTechnology, remaining “Users First”, has made continuous investments of valuable resources and energyto the insight into user demands and the improvement of independent research and developmentcapabilities. Through more than 20 years of in-depth engagement, we have accumulated and formed aproduct development system and category innovation capabilities mainly oriented to “technology andfashion”, making sound contributions to the Company’s ceaseless growth and innovation. In terms ofresearch and development, the Company keeps making greater investments in basic and cutting-edgeindustrial technologies, insight into user demands, research on consumer behavior, human-machineinteraction design, and innovation in vehicle models and categories, to record a research anddevelopment expense of RMB 507 million yuan, representing a year-on-year increase of 25.39%; inchannels building, the Company attaches great importance to the quality improvement of channels whilepursuing a higher channel coverage, and actively promotes the digital and intelligent application of itsterminal stores, to continuously refine their capabilities of user service, so as to provide users withconsiderate services centering on user demands; for operation and management, the Company sticks toan organizational culture of making changes and continuous improvements in its operation andmanagement, to guide enterprises and motivate employees with culture; for the industry, the Companyguides the cooperation with industrial partners with the values emphasizing “co-creation, co-development,win-win and sharing”, to jointly expand a green and smart ecosystem for short- and medium-distancetravel, and to promote industrial upgrades and development.
Facing the future, we see 2023 as a year full of opportunities and challenges. Against the backdropof the recovering China’s economic vitality and the global acceleration of the Carbon Peaking and CarbonNeutrality policy, an industry development trend of being differentiated, high-end, intelligent, andinternational has been increasingly highlighted; the Company will firmly stick to its strategic objective of“focusing on two-wheelers and developing multi-wheelers, centering on travel and continuing
transformation” and its strategic axis of “Users First, Excellent Products, In-depth Development in theMarket, Refined Operation”, to boost the investment and layout in such key fields as the research andimplementation of power battery, drive motor and vehicle electric control technologies, the constructionand optimization of Aima’s vehicle manufacturing platform, and the upgrade and application of intelligenttechnology; at the same time, the Company adheres to the development concept of “love”, and attachesgreat importance to the common sustainable development of enterprises and the environment and society.
We unswervingly seek to create long-term value for our shareholders, just as we keep to the valueproposition of “Users First” over the past 20 years. To repay our shareholders, based on the Company’soperating performance and overall financial situation in 2022, and fully considering our future corporatedevelopment and reasonable returns for shareholders, the Board of Directors recommends this plan forprofit distribution and capitalization of reserves to create new shares for 2022: on the base of the totalshare capital registered on the equity registration date for the implementation of equity distribution, byJune 30, 2023, a cash dividend of RMB 13.04 yuan (tax-included) per 10 shares is estimated to bedistributed to all shareholders of the Company, and the reserve is estimated to be capitalized to create 5new shares per 10 shares. This matter still requires additional deliberation and approval by theCompany’s 2022 general meeting of shareholders.We feel grateful for the constant company, support and trust from our shareholders, customers,suppliers and all walks of life! As the new chapter is being unfolded, Aima Technology, confidently andlongingly, hopes to go hand in hand with all of you, by upholding the corporate values of being “UsersFirst, Striving Based, High Integrity, Open and Innovative”, and do our utmost to achieve greater gloriesunder the mission of “Fill the ride with love”.
Chairman of the Board:
April 14, 2023
Important Notice
I. The Board of Directors (the “Board”), the Board of Supervisors, the directors, the supervisorsand senior executives of the Company warrant that there are no false representations ormisleading statements contained in, or material omissions from, this report; and jointly andseverally accept full responsibility for the truthfulness, accuracy and completeness of theinformation contained in this report.II. All members of the Board attended the Board Meeting.III. Ernst & Young Hua Ming LLP audited and issued a standard unqualified opinion on the annualfinancial statements of the Company.IV. Zhang Jian, representative of the Company, Zheng Hui, person in charge of accountingoperation, and head of Accounting Department, make representations in respect of thetruthfulness, accuracy and completeness of the financial statements contained in the annualreport.V. Proposal for profit distribution and proposal for the capitalization of capital reserve during thereporting period approved by the BoardUpon the audit by Ernst & Young Hua Ming LLP, the Company recorded the profit attributable toshareholders of the listed company of RMB 1,873,433,343.24, and the parent company recorded the netprofit of RMB 889,542,954.09 in 2022. By 31 December 2022, the undistributed accumulated profit of theCompany amounted to RMB 2,142,503,000.74. The Company intends to take the total shares on theequity registration date for the implementation of equity distribution as the basis to execute the profitdistribution and capitalization of capital reserve in year 2022 as below:
1. The Company intends to distribute a cash dividend of RMB 13.04 (tax included) per 10 shares toall shareholders. Based on the total share capital of 574,700,004 shares of the Company so far, the cashdividend to be distributed as above will be RMB 749,408,805.22 in total (tax included). The cash dividendof the Company in this year accounts for 40.00% in the net profit attributable to common shareholders ofthe Company. After the profit distribution, the remaining balance of undistributed profit will beaccumulated for further distribution in the years to come.
2. The Company intends to issue 5 shares converted by capital reserve, per 10 shares to allshareholders. Based on the total share capital of 574,700,004 shares of the Company so far, the totalshares of the Company will increase to 862,050,006 shares after this conversion (the total share capitalof the Company is based on the final registration result of China Securities Depository and ClearingCorporation Limited Shanghai Branch, in case of the rounding differences if any).
In case of any change in the Company’s total share capital from the date of disclosure of thisannouncement to the equity registration date for the implementation of equity distribution, the Companyplans to maintain the ratios of distribution and capitalization per share, and to adapt the total amounts ofprofit distribution and capitalization accordingly.VI. Risk relating to forward-looking statements
√Applicable ?Not applicable
The future plan, development strategy and other forward-looking statements contained in the reportdo not constitute any substantive commitments to investors of the Company. Investors should be fullyaware of the relevant risks and the difference among plan, forecast and commitments, and pay attentionto investment risk.VII. Whether controlling shareholder and its affiliated parties occupy fund on a non-operatingpurposeNoVIII. Whether there was any violation of regulations, decisions or procedures in relation toprovisions of external guaranteesNoIX. Whether over half of board members cannot guarantee the truthfulness, accuracy andcompleteness of the annual report declared by the CompanyNo
X. Significant risk noticeIn the reporting period, there was no significant risk with material impact on the production andmanagement of the Company. The Company had described in details relevant risks that may face in thecourse of production and operation in the report. Please refer to Section 3, VI. (IV)Possible risks.XI. Other?Applicable √Not applicable
Table of Contents
Section 1 Definition ...... 7
Section 2 Company Profile and Key Financial Indexes ...... 9
Section 3 Discussion and Analysis of the Management ...... 13
Section 4 Corporate Governance ...... 44
Section 5 Environmental and Social Responsibility ...... 66
Section 6 Significant Events ...... 71
Section 7 Changes in Common Shares and Information about Shareholders ...... 86
Section 8 Preferred Shares ...... 96
Section 9 Corporate Bonds ...... 97
Section 10 Financial report ...... 97
| Documents Available for Reference | (I) Full text and Abstract of the Company’s Annual Report signed by the legal representative of the Company and stamped by the Company; |
| (II) Financial statements signed by the legal representative, the Financial Controller, and the head of the accounting department (accounting supervisor) and stamped by the Company; | |
| (III) The originals of all the Company’s documents and announcements disclosed on newspapers designed by China Securities Regulatory Commission during the reporting period. |
Section 1 DefinitionI. DefinitionIn this report, unless otherwise stated in the context, the following terms have the followingmeanings:
| Definition of common terms | ||
| Aima Technology /Aima /Company/the Company /the Group | refers to | Aima Technology Group Co., LTD. |
| Changxing Dingai | refers to | Changxing Dingai Investment Management Partnership (Limited Partnership) |
| Guangdong Vehicle | refers to | Guangdong Aima Vehicle Technology Co., Ltd, a subsidiary of Aima Technology |
| Jiangsu Vehicle | refers to | Jiangsu Aima Vehicle Technology Co., Ltd, a subsidiary of Aima Technology |
| Aima Nanfang | refers to | Aima Nanfang Co., Ltd., a subsidiary of Aima Technology |
| Tianjin Vehicle | refers to | Tianjin Aima Vehicle Technology Co., Ltd., a subsidiary of Aima Technology |
| Zhejiang Vehicle | refers to | Zhejiang Aima Vehicle Technology Co., Ltd., a subsidiary of Aima Technology |
| Henan Vehicle | refers to | Henan Aima Vehicle Co., Ltd., a subsidiary of Aima Technology |
| Tianjin Sports | refers to | Tianjin Aima Sports Goods Co., Ltd., a subsidiary of Aima Technology |
| Guangxi Vehicle | refers to | Guangxi Aima Vehicle Co., Ltd., a subsidiary of Aima Technology |
| Suiwanwan | refers to | Tianjin Suiwanwan Cultural Communication Co., Ltd., a subsidiary of Aima Technology |
| Tianjin Jinge | refers to | Tianjin Jinge Industrial Design Co., Ltd., a subsidiary of Aima Technology |
| Xiaopa Electric | refers to | Xiaopa Electric Technology (Shanghai) Co., Ltd., a subsidiary of Aima Technology |
| Sichuan Aima | refers to | Sichuan Aima Technology., Ltd., a subsidiary of Aima Technology |
| Aima Share | refers to | Tianjin Aima Share Technology Services Co., Ltd., a subsidiary of Aima Technology |
| Xiaoma Network | refers to | Chongqing Xiaoma Network Technology Co., Ltd., formerly Tianjin Xiaoma Network Technology Co., Ltd., a subsidiary of Aima Technology |
| Tianjin Tianli | refers to | Tianjin Tianli Electric Bicycle Co., Ltd., a subsidiary of Aima Technology |
| Aima Chongqing | refers to | Aima Technology (Chongqing) Co., Ltd., a subsidiary of Aima Technology |
| Chongqing Vehicle | refers to | Chongqing Aima Vehicle Technology Co., Ltd., a subsidiary of Aima Technology |
| Zhejiang Sales | refers to | Aima Technology (Zhejiang) Co., Ltd., a subsidiary of Aima Technology |
| Taizhou Manufacture | refers to | Taizhou Aima Vehicle Manufacture Co., Ltd., a subsidiary of Aima Technology |
| Aima Venture Capital | refers to | Aima Growth Venture Capital (Ningbo) Co., Ltd., a subsidiary of Aima Technology |
| Lishui Vehicle | refers to | Lishui Aima Vehicle Technology Co., Ltd., a subsidiary of Aima Technology |
| Suoteng Technology | refers to | Suoteng Technology Hong Kong Co., Ltd., a subsidiary of Aima Technology |
| Tianjin Jiema | refers to | Tianjin Jiema Electric Technology Co., Ltd., a company in which Aima Technology holds shares |
| Today Sunshine | refers to | Zhejiang Today Sunshine New Energy Vehicle Co., Ltd., a company in which Aima Technology holds shares |
| Geling New Energy | refers to | Geling New Energy Technology (Shandong) Co., Ltd., formerly Shandong Geling Electric Vehicle Co., Ltd., a company in which Aima Technology holds shares |
| Taizhou Jinfu | refers to | Taizhou Jinfu Venture Capital Partnership (Limited Partnership), a company in which Aima Technology holds shares |
| Shandong Aidebang | refers to | Shandong Aidebang Intelligent Technology Co., Ltd., a company in which Taizhou Jinfu holds shares |
| Beijing Zhongzhong | refers to | Beijing Zhongzhong Travel Technology Co., Ltd., a company in which Aima Technology holds shares |
| Xiaoma Intelligent | refers to | Chongqing Xiaoma Intelligent Technology Co., Ltd., a subsidiary of Aima Technology |
| Chongqing Mechanical and Electrical Technology | refers to | Chongqing Aima Mechanical and Electrical Technology Co., Ltd., a subsidiary of Aima Technology |
| Chongqing Vehicle Service | refers to | Chongqing Aima Vehicle Service Technology Co., Ltd., a subsidiary of Aima Technology |
| Super Universe | refers to | Super Universe (Chongqing) Vehicle Industry Technology Co., Ltd., a subsidiary of Aima Technology |
| Aima Singapore | refers to | Aima technology Singapore Pte. Ltd., a subsidiary of Aima Technology |
| Aima Logistics | refers to | Chongqing Aima Zhilian Logistics Co., Ltd., a subsidiary of Aima Technology |
| CITIC Investment | refers to | CITIC Securities Investment Co., Ltd. |
| GoldStone Zhiyu | refers to | GoldStone Zhiyu Equity Investment (Hangzhou) Partnership (Limited Partnership) |
| GoldStone Haofeng | refers to | GoldStone Haofeng Equity Investment (Hangzhou) Partnership (Limited Partnership) |
| Changxia GoldStone | refers to | Changxia GoldStone (Wuhan) Equity Investment Fund Partnership (Limited Partnership), formerly Three Gorges GoldStone (Wuhan) Equity Investment Fund Partnership (Limited Partnership) |
| New National Standard | refers to | GB17761-2018 Safety Technical Specification for Electric Bicycle |
| CRSC | Refers to | China Securities Regulatory Commission |
| SSE | refers to | Shanghai Stock Exchange |
| Company Law | refers to | Company Law of the People’s Republic of China |
| Securities Law | refers to | Securities Law of the People’s Republic of China |
| Yuan, Yuan’0000 | refers to | Expressed in the Chinese currency of RMB Expressed in tens of thousands of RMB |
| Articles of Association | refers to | Articles of Tianjin Aima Technology Co., Ltd. |
| Reporting period | refers to | January 1, 2022 to December 31, 2022 |
| Same period of last year | refers to | January 1, 2021 to December 31, 2021 |
| Electric two-wheel vehicles | refers to | Electric two-wheel vehicles contain “electric bicycles” defined according to the standard Safety Technical Specification for Electric Bicycle (GB17761-2018) and “electric moped” and “electric motorcycle” with two wheels defined according to Technical Terms of Motorcycle and Moped Part 1: Type of Vehicle (GB/T5359.1-2019). |
| Electric two-wheel motorcycle | refers to | “Electric moped” and “electric motorcycle” with two wheels defined according to Technical Terms of Motorcycle and Moped Part 1: Type of Vehicle (GB/T5359.1-2019). |
Section 2 Company Profile and Key Financial IndexesI. Company’s Information
| Chinese name | 爱玛科技集团股份有限公司 |
| Abbreviation of Chinese name | 爱玛科技 |
| English name | Aima Technology Group Co., Ltd. |
| Abbreviation of English name | AIMA |
| Legal representative | Zhang Jian |
II. Contact Information
| Board Secretary | Securities Representative | |
| Name | Wang Chunyan | Li Xin, Ma Qunbo |
| Address | 22/F, Global Financial Center, No. 2 Dagu North Road, Heping District, Tianjin City | 22/F, Global Financial Center, No. 2 Dagu North Road, Heping District, Tianjin City |
| Tel | 022-5959 6888 | 022-5959 6888 |
| Fax | 022-5959 9570 | 022-5959 9570 |
| amkj@aimatech.com | amkj@aimatech.com |
III. General Company Information
| Registered address | No. 5 Aima Road, South Area, Jinghai Economic Development Area, Tianjin City |
| Changes of registered address | Not applicable |
| Office address | No. 5 Aima Road, South Area, Jinghai Economic Development Area, Tianjin City |
| Zip code | 301600 |
| Website | www.aimatech.com |
| amkj@aimatech.com |
IV. Information Disclosure and Place of Preparation
| Media and websites where this Report is disclosed | Securities Times, Securities Daily, China Securities Journal, Shanghai Securities News |
| Stock exchange website where this Report is disclosed | http://www.sse.com.cn |
| Place where this Report is lodged | The Securities Department of the Company |
V. Stock Profile
| Stock profile | ||||
| Category of stock | Stock exchange | Abbreviation of stock | Stock code | Abbreviation of stock before change |
| A share | Shanghai Stock Exchange | Aima Technology | 603529 | Not applicable |
VI. Other Relevant Information
| Accounting firm engaged by the Company (domestic) | Name | Ernst & Young Hua Ming LLP |
| Office address | 16/F Ernst & Young Building, Eastern Square, No. 1 Dongchangan Street, Dongcheng District, Beijing City | |
| Signed by the Accountants | Guo Jing, Zhang Bin | |
| Sponsor that exercised supervision over the Company in the reporting period | Name | Huatai United Securities Co., Ltd. |
| Office address | Room 401, Building B7, Qianhai SZ-HK Fund Town, No. 128, Guiwan 5th Road, Nanshan Street, Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone, Shenzhen | |
| Name of sponsor representative signing | Zhao Naiji, Xu Nan | |
| Period of continual direction and supervision | August 16, 2022 to December 31, 2024 |
VII. Major Accounting Data and Financial Indexes in Recent Three Years(I) Major accounting data
In: Yuan Currency: RMB
| Major accounting data | 2022 | 2021 | Change (%) | 2020 |
| Revenue | 20,802,212,994.46 | 15,398,710,870.72 | 35.09 | 12,904,586,099.11 |
| Profit attributable to shareholders of the listed company | 1,873,433,343.24 | 663,998,092.90 | 182.14 | 598,524,584.35 |
| Net profit deducting non-recurring gains or losses attributable to shareholders of the | 1,797,357,709.42 | 616,214,620.89 | 191.68 | 513,503,070.76 |
| listed company | ||||
| Net cash flows from operating activities | 5,051,454,116.94 | 2,094,187,373.97 | 141.21 | 1,154,579,844.77 |
| 2022 year end | 2021 year end | Change (%) | 2020 year end | |
| Net assets attributable to shareholders of the listed company | 6,721,176,109.98 | 4,974,827,390.92 | 35.10 | 2,629,761,352.35 |
| Total assets | 18,471,355,153.82 | 13,396,944,911.18 | 37.88 | 9,558,496,657.40 |
(II) Major financial indexes
| Major financial indexes | 2022 | 2021 | Change (%) | 2020 |
| Basic earnings per share (RMB/share) | 3.31 | 1.79 | 84.92 | 1.77 |
| Diluted earnings per share (RMB/share) | 3.31 | 1.79 | 84.92 | 1.77 |
| Basic earning per share deducting non-recurring gains or losses (RMB/share) | 3.17 | 1.66 | 90.96 | 1.52 |
| Weighted average return on net assets (%) | 31.15 | 17.46 | Increasing by 13.69 percentage points | 25.65 |
| Weighted average return on net assets after deducting non-recurring profit or loss (%) | 30.08 | 16.31 | Increasing by 13.77 percentage points | 22.42 |
Description of major accounting data and financial indexes of the Company within three years beforethe end of the reporting period?Applicable √Not applicableVIII. Difference of Accounting Data under Domestic and International Accounting Standards(I) Difference between net profits in the financial report concurrently disclosed according tointernational accounting standard and accounting standard of China, and difference between netassets attributable to shareholders of the listed company?Applicable √Not applicable(II)Difference between net profits in the financial report concurrently disclosed according tooverseas accounting standard and accounting standard of China, and difference between netassets attributable to shareholders of the listed company?Applicable √Not applicable(III) Description of difference between overseas and domestic accounting standards:
?Applicable √Not applicableIX. Major Financial Data by Quarter in 2022
In: Yuan Currency: RMB
| Q1 (Jan. - Mar.) | Q2 (Apr. - Jun.) | Q3 (Jul. - Sep.) | Q4 (Oct. -Dec.) | |
| Revenue | 4,586,633,662.82 | 4,851,032,662.39 | 7,790,597,846.78 | 3,573,948,822.47 |
| Net profit attributable to shareholders of the listed company | 317,478,581.47 | 372,443,626.63 | 686,561,796.23 | 496,949,338.91 |
| Net profit deducting non-recurring gains or losses, attributable to shareholders of | 323,580,131.73 | 371,277,867.55 | 669,440,490.93 | 433,059,219.21 |
| the listed company | ||||
| Net cash flows from operating activities | 991,740,553.97 | 804,078,517.97 | 4,587,520,289.69 | -1,331,885,244.69 |
Description of difference between quarterly data and data of the disclosed periodical report?Applicable √Not applicableX. Non-recurring Gains or Losses Items and Amounts
√Applicable ?Not applicable
In: Yuan Currency: RMB
| Non-recurring gains or losses | 2022 | 2021 | 2020 |
| Gains or losses from disposal of non-current assets | -5,205,312.26 | -12,713,091.69 | -8,941,375.47 |
| Government grants recognized in during profit or loss (excluding those having close relationship with the Company’s normal business, conforming to the national policies and regulations and enjoying ongoing fixed amount or quantity according to certain standard) | 91,038,555.75 | 34,294,933.55 | 41,825,036.44 |
| Except for the effective hedging business related to the ordinary business of the Company, changes in fair value of financial assets and financial liabilities held for trading, and derivative financial assets and liabilities; as well as the return on investment generated from the disposal of financial assets and financial liabilities held for trading, and derivative financial assets and liabilities, and financial assets at fair value through other comprehensive income | -12,120,000.00 | 9,978,187.68 | 12,219,498.91 |
| Write back of the impairment provision for receivables and contract assets that have been individually tested for impairment | 24,164,117.84 | ||
| The investment costs for acquiring subsidiaries, associates and joint ventures were less than the earnings generated by the fair value of the identifiable net assets of the investee that the Company should have been entitled to at the time of acquiring the investment | 3,497,737.94 | ||
| Non-operating income or expenses other than the above items | -13,062,366.52 | 6,361,478.19 | 6,780,501.09 |
| Other gain or loss in compliance with the definition of non-recurring gain or loss | 16,736,022.09 | 22,292,050.35 | 61,478,357.16 |
| Less: Amount affected by the income tax | 25,387,754.23 | 15,927,824.01 | 28,340,504.54 |
| Affected amount of minority shareholders’ equity (after tax) | 87,628.85 | ||
| Total | 76,075,633.82 | 47,783,472.01 | 85,021,513.59 |
Description of non-recurring profit and loss items listed in the Explanatory Announcement No. 1 onInformation Disclosure for Companies Offering Their Securities to the Public - Non-recurring Gains orLosses, and defining the non-recurring gains or losses items as recurring profit and loss items.?Applicable √Not applicable
XI. Items Measured at Fair Value
√Applicable ?Not applicable
In: Yuan Currency: RMB
| Name of item | Beginning balance | Ending balance | Change | Impact to the profit or loss of current period |
| Financial assets at fair value through other comprehensive income- receivables financing | 49,295,422.59 | 8,332,754.00 | -40,962,668.59 | |
| Financial asset held for trading | 1,265,981,818.24 | 142,668,675.59 | -1,123,313,142.65 | 5,816,022.09 |
| Total | 1,315,277,240.83 | 151,001,429.59 | -1,164,275,811.24 | 5,816,022.09 |
XII. Other?Applicable √Not applicable
Section 3 Discussion and Analysis of the ManagementI. Discussion and Analysis on Operation SituationIn the reporting period, with more intensive industry competition, rising cost of raw materials, andother disadvantages, the Company focused on its core business, namely, development and manufactureof electric two-wheel vehicles by adhering to its strategic axis of “Users First, Excellent Products, In-depthDevelopment in the Market, Refined Operation”, and executing its strategic directives of transformationto digital and smart technological company. The Company strictly implemented the annual business &operating plan; and achieved good business results.In the reporting period, the Company recorded revenue of RMB 20,802.213 million, representing ayear-on-year increase of 35.09%, the profit attributable to shareholders of the listed company of RMB1,873.4333 million, representing a year-on-year increase of 182.14%, and the profit deducting non-recurring gains or losses attributable to shareholders of the listed company of RMB 1,797.3577 million,representing a year-on-year increase of 191.68%. The key milestones of the Company in 2022 weredescribed below:
(I) Improvement of product powerIn terms of platform-based vehicle production, based on the APDS process (development processesof AIMA products), the Company established a vehicle manufacture platform for several exceptionalvehicle models and subsequently expanded it to cover various vehicle models, thus improving the stabilityand consistency of the Company's product quality, increasing the product development efficiency andreducing the product cost. In the reporting period, the Company conducted the comprehensive review,competitive product benchmarking and technology trend analysis of the vehicle manufacture platformfrom six dimensions of convenience, maneuverability, economic efficiency, power performance, refinedmanufacture, and riding comfort, and launched the upgrade of the vehicle manufacture platform on thisbasis in an effort to further optimize the forward development process from user need management toplatform development.
With regard to product design, the Industrial Design Center of the Company was committed tocontinuously improving the lean design of the Company's products. By using the principles of ergonomics,taking HVE (human-vehicle-environment) as the object of systematic study, conducting comprehensiveanalysis from the perspective of overall concept, and considering the relationship between human andvehicle, vehicle and environment, and human and environment, the Center managed to better align thefunctions, configurations, colors and structures of various vehicle models with the physiologicalcharacteristic and psychological needs of users. The Center further combined various actual vehicleusing scenario parameters and designed and developed safe, comfortable, beautiful and personalized
products that meet user requirements, so as to integrate user needs into each new model and equip theproduct with a comfortable, accurate, reliable and convenient man–machine interaction system.As to new product introduction (NPI), the Company set up a NPI project team, which effectivelyconnects and integrates different business processes, work nodes, post members, key tasks, departmentfunctions and information systems throughout the product life cycle, coordinates various links within theNPI process (including new product planning and development, cost reduction and optimization,marketing and publicity, distribution, promotion and phase-out management), sets up a businesscollaboration process, and works out a set of incentive measures centered on new product salesindicators and profit indicators. In the reporting period, the NPI project functioned well, and the proportionof new products and the percentage of gross profit contribution increased significantly compared with thesame period last year.In the matter of quality management, the Company continued to promote and optimize the all-process quality control system. In the design stage, the Company, on the basis of the APDS processes,identified quality problems and optimized the design through virtual simulation and data simulation. In theproduction development stage, while implementing closed-loop new production quality management,reviewing each quality management threshold strictly in accordance with AIMA standards and prohibitingmodels with quality problems from entering the mass production stage, the Company increasedinvestment to raise evaluation standards, improve evaluation and review technology, and enhance R&Defficiency. In the component configuration stage, the Company took incoming inspection as the startingpoint to conduct reasonable supervision over the production process of suppliers, and constantlyimproved the quality management of suppliers by providing them with support such as technicalconsultation and management assistance. As regards manufacturing, the Company implementeddynamic and real-time quality management throughout the entire process and built a market qualitymanagement system consisting of an early warning mechanism for market feedback information and anaudit mechanism for market quality issues to connects production bases with dealers and users torespond to and address quality issues in an accurate and rapid way. In respect of testing, the Companykept on enhancing its own testing capabilities for components and production processes andimplemented a combination of prevention and inspection.(II) Improvement of channel capacity and capabilityIn the aspect of offline channels, channel construction and upgrading are two priorities of theCompany. On one hand, the Company continued to promote channel expansion and the “channel sinking”strategy, actively extended its channel to city communities and areas of township, and increased numbersof retail stores. At the end of reporting period, the Company’s dealership network exceeded 1,900, andretail stores exceeded 30,000. On the other hand, the Company adopted the three-in-one operationsystem of "headquarters empowerment + mobile support + targeted assistance" to help dealers improvetheir store management efficiency and store output. Headquarters empowerment means that theCompany insists on value integration of factory and distributor and establishes a special training systemand business team, aiming to comprehensively improve the business capabilities of dealers. In particular,the Company set up a special empowerment training module for sales assistants and held various kindsof competitions of sales ability and service ability regularly to reward excellent sales assistants, thusenhancing their sense of honor and sense of belonging. By giving mobile support, the Company isrequired to implement the grid-based channel management and promote the city manager campaigndesigned to serve individual stores (the city managers are obliged to visit retail stores and in-store salesassistants frequently). By connecting the workflow of the Company with that of the dealers, retail storesand in-store sales assistants and through the standardization and informatization of such workflows,mobile support allows the Company to conduct lean management of channel terminals andcomprehensively improve store operation efficiency. With the provision of targeted assistance, theCompany can identify channel problems through the collection and statistical analysis of channeloperation data and thereby optimizing the product structure and marketing plan of retail stores of eachsegment to achieve precise marketing and improving single-store output. In addition, the channeloperation data so collected can also be used to give feedback to production and increase the accuracyof production planning.In the reporting period, the Company set up and promoted digital stores and their new online retailplatform to carry out the integrated operation of new retail and the upgrade of digital and smart technologyon all-channel marketing characterized by deep user reach. At the end of reporting period, the digital andsmart technology system of the Company has basically covered all dealers, the coverage of the “RetailConnection System” considerably improved, and the proportion of store data recovery greatly increased.
The Company further empowered dealers' e-commerce thinking, formed standardized workflows forthe acquisition, recognition and transformation of online traffic and the conversion of such online trafficinto sales, conducted special training and provided technical support to guide more dealers to try to useself-media, short videos, seeding APPs and other new online platforms for marketing. Among theseinnovative marking approaches, the vehicle sales through live broadcasting has received more and moreattention and recognition from dealers, and the Company's dealer live broadcasting matrix has begun totake shape.As to online channels, the Company established online sales channels across multiple platforms. Inthe reporting period, the Company strived to integrate online traffic with offline operation. Through theimplementation of e-commerce, an important way to drive online traffic, the Company precisely directedcustomer flow into offline stores and provided these customers with the services of the same quality asoffline customers, including test drive experience, vehicle delivery, license registration and after-salesservice.In respect of international channels, the Company’s International Business Department establisheda marketing team based on the Company's current international product portfolio, and implemented achannel expansion plan tailored to local conditions in accordance with the regional characteristics andconsumption habits of the major markets and conducive to the increase in sales in the internationalmarket. In the reporting period, the international business income was RMB 221.1865 million,representing a year-on-year increase of 28.26%.(III) Improvement of brand powerThe Company adopted the brand proposition of “technology and fashion”, and kept on promoting the“differentiation” and “high-end” strategy. In the reporting period, the Company worked with theinternationally renowned designer Rob Janoff (designer of the famous Apple logo) to carry out the high-end upgrade of "AIMA" brand logo with the brand proposition of "technology and fashion" as the core andenhance the “brand tone”.In the aspect of technology, the Company regarded R&D and product innovation as the underlyingarchitecture for high-end branding and product competitiveness improvement, intensified R&Dinvestment, improved independent R&D capabilities, and accelerated brand premium by increasingtechnological added value of product. In the reporting period, the Company’s R&D expenses were RMB507 million, indicating a year-on-year increase of 25.39%. At the same time, the Company promoted itshigh-technology products through activities such as extreme challenges and championship rallies.In the aspect of fashion, the Company enhanced the fashion sense of “AIMA” brand by cooperatingwith Harper's Bazaar, implementing the “Star-chasing Campaign” (regular release, interpretation andsupporting marketing activities of fashionable and popular colors and model colors, which can effectivelyreinforce the emotional bond between its products and female customers), upgrading the store image,conducting actresses endorsement and shooting fashion blockbusters. In the first half of 2022, theCompany cooperated with the high-quality variety show "Sister Riding the Wind and Waves", and tookadvantage of the momentum to release the hot two-wheelers “Qingtian”, a high-end vogue modeldesigned for female customers. In the second half of 2022, the Company cooperated with the "Call Meby Fire", an equivalent variety show, to highlight the technological sense and tough appearance of thebrand and demonstrate a variety of fashionable use scenario suitable for male customers. These twoshows helped AIMA to maintain its popularity throughout the year on the most visited fashion platformssuch as Weibo and Xiaohongshu (including generating over 100 million topic exposures and discussions)and achieved good publicity effects.To effectively enhance young consumers’ value perception and recognition of the Company's brandand products, the Company devoted itself to meet this young group’s needs for trendy personality andvirtual social interaction, created the IP of “Xiaoma”, which is a combination of beauty and cuteness, andstrengthened the cool and trendy appearance design of certain product series. Meanwhile, the Companycarried out a number of new marketing activities that are popular among young consumers, such as theinteraction with the Advertising Art Festival of The Chinese College Students to launch the national youthco-creation of super item based on AIMA elements like new AIMA logo, the IP of “Xiaoma” and theeyelash headlamps, the crossover cooperation with the Arena of Valor team, and the “Passerby KingBasketball Game”. In addition, the community section “Mayou” was added to the Company’s applicationto provide users with a communication and interaction platform where they can post photos, share ridingexperience, participate in the Company's user interaction or feedback activities, etc.
(IV) Improvement of technological powerThe Company fully adopted its development strategy of “transformation to technological company”and took independent R&D as its important support to improve product performance and competitiveadvantage and the engine to drive long-term stable growth. In the reporting period, the Company appliedfor a total of 138 invention patents and utility models.In terms of research on core technologies of the industry, AIMA Research Institute (“AIMA Institute”)made sustained efforts to steam up the research and development of such technologies as motor,controller, electrical technology and new materials, and made great achievements during the reportingperiod. For example, (1) electric control project: by referring to the research and development process ofthe automobile industry and integrating the Autosar software architecture and the torque control strategyarchitecture, and through software development based on matlab digital modeling, AIMA Instituteelementarily achieved three-in-one domain control integration (MCU & VCU & DCDC) and efficient FOCmotor control for all operating conditions, and on this basis, built a control system platform featuring highsafety factor, excellent and stable performance and good compatibility with various driving models; (2)electronic drive project: by taking advantage of the unequal air gap design, AIMA Institute preliminarilyachieved a reduction in magnetic field harmonics, noise, torque ripple, and back-EMF harmonics, andthus created a silent and efficient motor platform. Benefited by the design concept and technology ofreluctance-assisted permanent-magnet synchronous motor in the auto industry, AIMA Institutemaintained a high magnetic flux while taking into account the reluctance torque generated by saliencyeffect, thus improving the maximum output torque of motors; (3) new materials application project:
through thorough research, development and application, high-gloss ABS and high-gloss PP+PU finishcan improve the glossiness and scratch resistance of plastic parts, and be more environmentally friendlyand cost-effective.In the aspect of intelligent technology research, in the reporting period, the Company focused onpromoting AIMA’s Intelligent IoV (Internet of Vehicle) Platform Project to unify different businesses(service-side, product-side, and dealer-side) and client software portals of subsidiary brands. Thisplatform can not only improve consumers’ car-using experience in the whole process and lay a structuralfoundation for the Company to collect big data of users and products in an accurate and efficient manner,but also support the Company’s R&D of various IoV hardware technologies, including but not limited toimproving the non-discriminatory centralized purchasing capability of the intelligent hardware supplychain, enhancing the after-sales quality supervision capability for IoV products, conducting firmwareremote upgrades, implementing whole-vehicle EEA architecture, etc. Up to now, the Company's unifiedintelligent port was put into use. In addition to offering intelligent functions such as vehicle sharing andNFC smart keys, this intelligent port can also provide services such as store guidance, online customerservice, and repair and maintenance, and support the compatibility with other intelligent hardware devicesof the Company (such as smart helmet).In respect of R&D of new products and technology sourcing, the Company upgraded the “EngineMAX” (an energy accumulation system), and on this basis, developed the "Engine Core Power" energymanagement system by focusing on the integration of IoV technologies and referring to some algorithmsand processes of the automotive industry as standards. In addition to the SDS smart power system andthe CES braking energy recovery system independently developed by the Company and granted withinvention patent, the Company also upgraded or introduced BMS intelligent lithium battery safetymanagement system, DMC driving mode management system, GVC acceleration control system andQEMS full process tracking quality management platform, which can effectively improve the energyutilization efficiency under the existing energy framework and provide users with a smarter and morecomfortable riding experience. Meanwhile, the Company improved the vehicle quality and prolonged theservice life of vehicle by reducing the wear and tear of key components during use. As a result, theCompany managed to provide a warranty period longer than the statutory warranty period for some keycomponents.
In addition, the Company attached great importance to improving its testing and inspectioncapabilities through independent research and development. In the reporting period, the Companycontinued to develop and optimize the databases of standards, processes and methods for performancetesting of products and key components. In terms of power and economy test database, the drivingmileage calculation standards for new products (the error compared with the actual driving mileage canbe controlled within ±5%), road test operation manuals, and performance quality goal setting andacceptance procedures have been established. With regard to NVH (noise, vibration and harshness)database, the vibration serviceability testing and evaluation standards, modal testing process (in
assistance to the neumorphic design of whole vehicle), vibration isolation rate testing process and dataprocessing methods of shock absorber, mounting-point dynamic stiffness testing process and one-metersound pressure level testing process of motor have been formulated. In the aspect of CAE simulationsystem, the frame strength, stiffness and modal simulation and transfer function simulation have beencarried out.(V) Improvement of productivity
In the reporting period, the Company upgraded its manufacturing system in an all-round way byadhering to the idea of "technology-driven development, lean cultivation, and digital operation andmaintenance", and achieved phased breakthroughs in many aspects, which in turn enabled themanufacturing system to respond to market demand more quickly and improved the cost competitivenessof products.In terms of technology-driven development, the Company was committed to build automatic andsmart factories. Specifically speaking, the Company optimized the manufacturing process of frameassembly and set up the automatic frame production line; introduced and upgraded the automatic spraypainting & transfer technology; conducted refined upgrade of spot automation in assembly workshop toincrease the production efficiency of assembly process; utilized advanced technologies such as AI-basedvisual recognition to identify information of various key materials, achieve precise feeding and realizebinding and traceability of key materials and vehicles in production and sales system; and increasedinvestment to upgrade the software and hardware of component stereoscopic warehouse as well asfinished product warehouse with the upgrade of smart logistics system as the core to realize smartlogistics within the factory. In addition, the Company made sustained efforts to promote its manufacturingcapacity for core components. In the reporting period, the Company invested in the construction ofproduction workshops and sophisticated equipment and managed to acquire the ability to manufacturecomponents of power driven system independently through continuous trials and enhancement ofproduction process and constant exploration and improvement of manufacturing technique during thetrial production, which in turn allowed the Company to improve the quality and delivery speed of corecomponents and reduce costs. More importantly, the improvement of customized production capacity forcore components ensured that the Company can customize and develop products based on accurateinsights into the performance requirements of segmented consumer groups.In the aspect of lean cultivation, the Company constantly stepped up the integration of Aima BusinessSystem and its production processes, and unceasingly improved and implemented the defined andstandardized operation manuals for quality control, lean logistics, cost management and deliverymanagement under three core driving factors including ABS methodology, talent cultivation andbenchmark setup. Furthermore, the Company set up a special task force to provide incentives based onperformance indicators such as achievement rate of process cost reduction, on-time delivery rate andaccurate delivery rate, material turnover rate, and quality target achievement rate and implement thenormalized working mechanism consisting of daily tracking, continuous improvement, motivation anddemonstration, and consolidation and improvement, so as to comprehensively improve the Company'slean manufacturing.
As to digital operation and maintenance, the Company successfully pushed out APS, MES and QMS,and fully realized the information management of manufacturing process during the reporting period. TheAPS allows the Company to set the UPH (units per hour) and process-critical bottleneck capacity of eachmodel, match the material resource with the supply resource, improve the efficiency of production lines,optimize the multi-process and multi-resource arrangement process, and implement automaticscheduling. The introduction of MES enables the Company to exercise effective and standardizedmanagement of process resources, manufacturing resources and process nodes, make problemsvisualized and traceable, and comprehensively improve the efficiency and effectiveness of manufacturingprocess control. With the implementation of QMS, the Company can conduct all-round data monitoringon product quality to further improve the quality and reliability of AIMA products.(VI) Improvement of operation capacity
In terms of digital and smart operation, the Company implemented “361 Digital and SmartEngineering” strategy during the reporting period. With the continuous integration of digital and smartsystems and businesses, the precise and diligent operation of the Company has been continuouslyimproved, and various business fields fully empowered. By adopting algorithmic models based on bigdata, the Company formulated accurate sales plans to facilitate procurement, production and marketing,smoothly connected business processes such as pre-order placement, material supply chain, planning
and scheduling, production processes and logistics scheduling, improved the efficiency of procurementand inventory management and the timeliness and accuracy of product delivery and launching, andreduced the operating cost through refined management. As regards digital and smart R&D, the Companyexplored the value of online business conditions and public opinions, collected user information, vehicleusing scenarios, behavior data, etc., and established and continuously improved user portraits to obtainaccurate insight into consumer needs, which in turn raised the success rate of product development. Inrespect of lean manufacturing, the Company made sustained efforts to introduce digital and smartsystems into various production segments (e.g. defined calculation of paint dosage standard and feedingplan of each painting factory) and, in addition to reduced process costs, contributed to the increase ofproduction and delivery achievement rate and the reduction of cost. The real-time presentation ofinformation such as output of each production line and process quality inspection result in system enablesthe precise feedback on and the rapid adjustment to the implementation of production plan.With regard to digital and smart service, driven by work orders, the Company provided users withhigh-quality after-sales services, including convenient user port operations, efficient and diligent serviceresponses, real-time service progress display, and transparent service supervision. Meanwhile, theCompany connected AIMA’s vehicle service system with its dealer management system, which in turnhelped the dealers to build and operate their private domain traffic pool and benefited the collection ofaccurate consumption characteristics data, product shelf sales data and quality data.
In the matter of digital and smart finance, the Company created a strategic financial managementsystem of “compliant efficiency improvement, closed-loop processes, business-finance integration andsafe and controlled operation” based on four platforms (including expense management platform andfund management platform) by taking the overall budget as the main line and the enterprise internalcontrol as the criterion. Besides, the Company reviewed and adjusted the decision execution based onoperation data to control as well as serve the business.As for talent operation, the Company appreciated human capital under the talent management ideaof “showing respect for our staff, improving their competence and making them happy”. It cultivated the“talent pool” idea by external recruitment and internal training to attract experienced R&D talents andformed “talent pool”, in addition to on-campus recruitment for graduating students from universities andcolleges as its talent reserve. The Company also focused on organizational development, talentcultivation, progression pathways and echelon building, as well as established qualification system formanagers, professionals and technicians, building up transparent career pathways. The Company set upa learning center to focus on four core professional areas of R&D, production, sales and service,developed and provided targeted customized professional empowerment courses based on the operatingexperience accumulated by the Company over the years and the practical problems encountered in theprocess of business development, and promoted the construction of a learning organization throughdiversified and innovative means, such as excellent R&D project evaluation and skill competition. TheCompany also continuously optimized the remuneration and incentive system based on “Fighter Culture”and oriented by performance result, and provided equity incentive by issuing restrictive stocks to keymembers of employees for their personal growth and deep bondage with the Company.II. Company’s Industry in the Reporting Period
1. Industry classification
According to the Industrial Classification for National Economic Activities, the industry in which theCompany operates is "C377-C3770 Moped Manufacture" (Group and Class) of "C37 Manufacture ofRailway, Ship, Aerospace and Other Transport Equipment” (Division).
2. Industry development
The first electric two-wheel vehicle appeared in China in 1995. After rapid development andregulatory exploration for more than 20 years, electric two-wheel vehicle became the importanttransportation and production tools of short-distance travel for Chinese residents.
Before implementation of Chinese New National Standard in 2019, the complete industrial eco-system and broad market condition were formed. The cumulative ownership of electric bicycles in thesociety has exceeded 250 million sets, and annual average of production and sales quantity maintainedsome 35 million sets for years, and market competition was intensive and industrial concentration degreewas low.
The Chinese New National Standard, released in 2019, regulated research and development,production, sale, distribution and use of electric bicycles, and brought industry new opportunities.
Meanwhile, local governments set up different transition periods for implementation of New NationalStandard. According to the actual situation, it was estimated that the transition period would expire at theend of 2024. After the transition period, the vehicle models, which didn’t meet the requirements of NewNational Standard, would not be allowed to run on roads. The subsequent replacement demand wouldbring new growth point for market volume. With the compound demands on both organic growth andreplacement, the industry entered a new rapid growth period. In this phase, market shares would befurther taken by large-scale, leading and brand enterprises, the industry would accelerate optimization,and the degree of market concentration would increase.Under the macroscopic background of economy transformation, information technology, the carbonpeak and neutrality targets, the consumer electric two-wheel vehicles market showed three trends:(1)consumption upgrades and personalized consumer demand; (2) environmental protection awareness byconsumers;(3) consumer’s pursuit of convenience and smart technology. In addition, due to the increaseddemand from international markets, electric two-wheel industry, originated, developed and flourished inChina, would further penetrate into overseas markets and accelerate its internationalization within theindustry. For this reason, the industry would be trending toward differentiation, high-end orientation,intelligence and internationalization. After the transition period of the Chinese New National Standardexpires, and the industry would enter a new round of rapid development period, driven by the deepunderstanding of consumer demand and product customization, continuous implementation of Internettechnologies, smart technologies and new energy technologies in electric two-wheel vehicle industry, andthe expansion and further growth of global business.
Form Development Stages of Electric Two-wheel Vehicle Industry
| Industry development stage | Period | Development characteristics | Industry features and structure |
| Generation and rapid development | From 1995 to New National Standard taking effect | Rapid development from zero | Many manufacturers, serious product homogenization and fragmented market share |
| Transition to orderly development | From New National Standard taking effect to expiry of transition period | Market volume increasing Regulatory system improved Industry order meeting specification Market concentration degree improved | Many small enterprises withdraw competition, the market share of head enterprises is being improved, and resources are concentrated to head enterprises |
| Future and transformed development | From expiry of transition period of New National Standard | From mainly relying on the local the market to combination of local market and overseas market The industry is transformed from manufacture and sale of vehicles to service provision based on users | Industry development shows differential, high-end, smart and international features |
III. Description of The Company’s Businesses in the Reporting Period(I) Main business of the CompanyThe Company was established in 1999 and entered electric two-wheel vehicle industry in 2004, andit was one of the earliest manufacturing enterprises of electric two-wheel vehicles in China. The mainbusiness of the Company is development, production and sale of electric bicycle, electric moped andelectric motorcycle. With development for years, the Company has high market share and is one ofleading enterprises in the electric two-wheel vehicle industry.
(II) Major products of the Company
1. Electric two-wheel vehicles
| Classification | Electric bicycle | Electric two-wheel motorcycle | |
| Electric moped | Electric motorcycle | ||
| Nature | Non-motor vehicle | Motor vehicle | Motor vehicle |
| Pedal riding ability | Compulsory requirement | None | None |
| Highest velocity | ≤25km/h | ≤50km/h | ＞50km/h |
| Whole mass | Shall not exceed 55kg | May exceed 55kg | May exceed 55kg |
| Voltage of battery | ≤48V | No restriction | No restriction |
| Production qualification | None | With production qualification | With production qualification |
| Product qualification | 3C certification | 3C certification and catalogue announcement of the Ministry of Industry and Information Technology | 3C certification and catalogue announcement of the Ministry of Industry and Information Technology |
| Riding qualification | None | Motorcycle driver’s license | Motorcycle driver’s license |
2. Electric tricycle
As for electric tricycle products, the Company boasts electric tricycle for leisure purposes, pluselectric tricycle with canopy, and electric tricycle for freight. The electric tricycle for leisure purpose ismore suitable for the following demands of young mothers, middle-aged and old people: leisure travel,pickup of children from and to school, and relevant consumers liked it very much. The electric tricyclewith canopy features sheltering from wind and rain, and it refers to the manufacture and assemblytechnology of vehicle in the aspects of whole vehicle design and manufacture process, with exceptionalfunctionality and fashionability that cater to the demand of comfortable short-distance travel. The electrictricycle for freight adds faddish elements to durability, enjoying high popularity among consumers. In thereporting period, the revenue of electric tricycles of the Company increased by 21.76% year over year.In addition, the Company has also launched bicycles, e-bikes, electric scooters and other products,all of them constitute green traffic tool product system for short and medium distance travel.(III) Operation modelThe Company adopts a user-centric approach to spur self-reform and transformation, implementproduct and technology innovation, striving to becoming the world’s leading platform-based technologycompany that integrates all services across the industrial chain of electric two-wheel vehicles.In terms of R&D and design, the Company considers technological innovation as its developmentfoundation and continuously increases spending on innovation as it expands its business footprint. It hasestablished AIMA Institute in Hangzhou, which is mainly responsible for the R&D and validation of core,cutting-edge technologies in the industry such as the EIC system (battery, motor, and electric control);AIMA Institute has set up an intelligent center to launch R&D projects such as the upgrading andapplication of smart technologies, Internet of Vehicles consumption software, and IOT-linked smarthardware; and the R&D Department is responsible for the development of new model and the applicationof new technologies and processes, including product design, development, testing and inspection,compliance, quality control, etc. Aima has set up R&D bases in Tianjin, Wuxi, and Chongqing, togetherwith industrial design center and CMF center (responsible for the design and application of product colorsand visual effects), with considerable influence in the industry.In terms of parts procurement, the Company focuses on building a highly integrated and adaptableindustry-wide supply chain system, and has established a supply chain management center (consisting
of a supplier quality control department) and a procurement center for the business units to select andestablish a close and friendly long-term supply relationship with high-quality suppliers. Meanwhile, theCompany actively builds up its manufacturing capacity of core components, including frames, coating,motors, etc.In terms of manufacturing, the Company has set up 7 production bases across China, and another4 intelligent production bases are under construction/planning.In terms of sales, the Company carries out marketing based on the distribution model, under which,it insists on the value integration of factory and dealer. Dealers are the direct customers and alsoimportant partners of the Company who sell products, provide services and exhibit brand image toconsumers. The Company has established a complete and reasonable management system of dealers,and had formulated detailed rules on admittance, management, training, appraisal and evaluation ofdealers. It empowers dealers on all fronts through operational assistance, training delivery, specialservices for city managers, and precise promotion toward new customers for retailing.In terms of logistics, Aima has established a specialized logistics management platform company togradually implement unified logistics and distribution management. Intensive management of goodsdistribution at various points of sales (POS) helped the Company shorten the time spent in the "company'sfinished product warehouse - logistics - POS” process and effectively use logistics resources to achieveinventory optimization and further improve finished stock turnover.
In terms of service, in order to meet the changing needs of users from the "era of vehicle purchase"to the "era of vehicle use", the Company is committed to creating a lifecycle service system that canprovide users with services of sales, repair, replacement, maintenance, leasing, and battery replacement.It has established a specialized service company with distribution channels-backed service outlets toprovide users with efficient and premium services.IV. Analysis on Core Competitive Advantages in the Reporting Period
√Applicable ?Not applicable
(I) Precision product development and innovation based on “technology and fashion”
After development of electric two-wheel vehicles for more than 20 years, homogeneous phenomenonof product was highly general. The Company insisted on “technology and fashion” and took R&D andproduct innovation as major measures for improving its product competition and realizing long-termdevelopment. In terms of product development, the Company has developed and keeps improving theprecise, efficient user-centered APDS process (forward development process of AIMA products). User-oriented product development and validation are always conducted from product design to planning,research and development, and introduction. Multiple critical thresholds and specifications are set for theconfirmation of phased goals in finished vehicle development in order to develop vehicle models thataccurately cater to the needs of the target user group under the premise of required quality Q, time C andcost D. The innovative vehicle models independently developed by the Company had received varioushonors, such as Annual Innovative Vehicle Model, Annual Fashion Vehicle Model issued by AnnualMotorcycle Model Selection Organizing Committee of China, MUSE Golden Medal issued by InternationalDesign Awards (IAA).
In terms of technical strength, the Company continuously stepped up its investment in theindependent research and development of industry underlying technologies, cutting-edge technologiesand engineering technologies, introduced new technologies and new materials, and applied them toproduct manufacturing and to improve existing production technologies and processes and enhanceproduct performance and added value, which guarantee the Company’s leading technical and productstrength. After years of business operation, the Company has built a R&D team boasting high professionalquality, strong research and development capability, and considerable influence in the industry. As ofDecember 31, 2022, the Company owned over 1,600 patents, and many of its subsidiaries had obtainedcertification of New & Hi-tech Enterprise.
In the field of fashion design, and the Company’s products were always the fashion wind vane invehicle body modeling, paint texture, color matching and other aspects, and owned diversified productdesign innovation capacity. The Company can provide multiple vehicle models that will meet therequirements of different consumers to fashion and personality. In particular, the Company boastsoutstanding and unique capacity for innovating fashion colors. It cooperated with China Fashion ColorAssociation (the authority on color fashion of China) to establish an electric bicycle fashion color R&D
base, a leader in the industry, and had acquired various original design achievements including Mai Mini,ICOOL.In addition, the Company was active in fulfilling its industry responsibilities, and fully utilized itsstrength in R&D and technology to promote standardization of industrial technologies. It had organizedto compile or participated in drafting more than a score of national standards and industrial standards,including Technical Requirements of Charger in Electric Bicycle, Motor Performance Testing Methods forElectric Motorcycle and Electric Moped, Safety Requirements of Electric Motorcycle and Electric Moped.Jiangsu Vehicle obtained the honor title of “Leading Unit in Industrial Standardization” issued by ElectricBicycle Technical Sub-committee of All-China Bicycle Standardization Technical Committee.(II) Reliable production technologies, leading product qualityThe Company always considered technical R&D, product quality as its development foundation,pursued excellence in the course of production and guaranteed output of high-quality products. TheCompany used first-class electrophoretic technique for manufacture of vehicle frame. Internal andexternal double-layer paint spraying provided good packaging of internal frame structure and significantlyimproved corrosion resistance and durability; acquired advanced CNC pipe bending machines andwelding robots to guarantee vehicle frame cutting and produce quality and appearance quality. In theaspect of painting, the Company established dust-free painting workshop to guarantee painting quality,and took cathode electrophoretic technology to strengthen anti-rusting performance of products; usedhigh-quality paint materials to guarantee anti-aging, anti-corrosive performance of products andmaintained products cosmetically beautiful. In the aspect of other core components, the Companycooperated with brand suppliers leading in the industry to ensure stability of operating system of electrictwo-wheel vehicles. In the aspect of manufacture and inspection of whole vehicle, the Company carriedout lean production mode to improve profit and guarantee quality with five-inspection system includingfirst inspection, self-inspection, mutual inspection, sampling and special inspection.
The Company had established fully equipped testing laboratories in the production bases situated inTianjin, Jiangsu, Guangdong and etc. The Company owned 400 sets of testing devices and equipment,and employed about 30 technicians who had passed ISO/IEC training and obtained qualificationcertificates. The Company had set up 7 professional laboratories, including whole vehicle performancelaboratory, environment laboratory, material analysis laboratory, electronic and electric laboratory,mechanic performance laboratory, core technology laboratory and intelligent laboratory, which ownedvarious testing equipment and powerful technical capacity, and had the testing capacities to electric two-wheel vehicles, electric tricycles and some low-speed electric quadricycle. The Testing TechnologyCenter of the Company (Wuxi Base) had received the certificate from China National AccreditationService for Conformity Assessment (CNAS). With reference to the product development testing modelused in automobile industry, the Company worked out the testing processes highly consistent with APDSproduct development processes and the Company’s production system, and carried out overall testing toparts, system and whole vehicle to ensure product quality.The Company’s products had been sold in the market for years, and the Company had receivedhigh-level accreditation and various honors in the aspect of quality, for example, “All-China QualityBenchmark Enterprise” issued by China Association for Quality Inspection, AAA Enterprise Credit RatingCertificate issued by China Urban Transportation Association.(III) Sales channel system with large coverage and high efficiencyIn the aspect of offline channel, the Company actively implemented the brand strategy focusing atconsumption demand, grasped the development opportunity of electric two-wheel vehicle market, fullyutilized its brand influence to develop dealer channel and formed an offline sales network over China.The Company had achieved economy of scale and rapid growth accordingly. The Company insisted onvalue integration of factory and dealer, continually improved management rules and system of dealersand attracted excellent dealers that have large share in district/county markets to establish long-termstrategic cooperation relationship with the Company. After accumulation for years, the Company hadestablished flat marketing channels in unit of district/county and demonstrated its advantage of widecoverage and high efficiency.In the aspect of online channel, the Company had set up online channel system on multiple platforms,including Tmall, JD and other major e-commerce platforms, as well as Douyin, Xiaohongshu, Kuaishouand other emerging platforms. The Company further provided overall and all-time shopping experienceand convenient after-sale services to online customers by virtue of its digital and smart empowerment
platform and nationwide service network. In addition, by coordination with the marketing measures of theCompany, the online channels played an important role as traffic driver and in new customer acquisition.(IV) Service network with high quality, high efficiency and high coverageIn the aspect of service network, based on long-term operation, the Company had established aperfect service network, consisting of nationwide service shops, efficient work order distribution system,industrial leading service effect and service content standards, efficient part warehousing and distributionsystem, examination system based on service satisfaction indicators and professional service team. Theoutstanding and efficient services of the Company were widely praised by customers and highly acceptedby regulatory bodies. All-China Goods After-sale Service Rating Authentication Reviewing Committeedetermined the Company reaching five-star level in technical support, maintenance service and etc.,China Customer Connection Center granted the Company “Customer’s Satisfaction Award”; theCompany also participated in drafting the industrial self-regulatory service specification After-sale ServiceSpecification for Electric Bicycle, organized to draft After-sale Service Time Effect Specification forElectric Bicycle, which led the standardized development of services in the industry.(V) Brand influence leading in the industryThe Company took “Technology and Fashion” as its brand strategy and “love, and act at once” asits brand slogan to carry out brand construction in China on the basis of fashionable and high-qualityproducts. With great efforts for years, the brand AIMA received general acceptance and high reputation,and its brand influence led ahead in the industry.The qualification and honors that the Company had acquired in brand construction includedauthentication of Famous Trademark of China, recognized as the 1st position for 11 consecutive yearson the list of China brand influence indexes (C-BPI) in the category of electric bicycles issued byChnbrand.(VI) Production and sales volume leading in the industry, with significant scale advantage andcost advantageThe Company became one of leading enterprises in the electric two-wheel vehicle industry of Chinadue to good quality, large distribution system and high brand reputation. The Company keeps closelycooperative relationship with dealers and suppliers. The Company had strong bargaining power when itmade concentrated procurement to suppliers, beneficial for maintaining stable price of raw materials andobtaining beneficial payment period; while selling goods to dealers, the Company generally used themode of delivering goods after receipt of payment, and thus possessed very stable cash flow.Furthermore, larger production scale can allow the Company to realize lower cost per single vehicle inproduction and manufacture. With the production scale and sales volume increased, the Company hadsufficient resources and development strength to improve production processes and technologies,product performance and production efficiency, and this would further enhance scale effect and costcompetition advantage. The leading production scale made the Company to achieve efficiency and costadvantage that its competitors were incomparable in market competition.(VII) Digital and smart management system with full empowerment and efficiency improvementThe Company had started and implemented the “361 digital and smart engineering” strategy to leaddigital transformation of the Company. The Company had also built up a digital and smart managementsystem highly consistent with organizational structure and business procedure, and empoweredCompany in various business fields. The Company had established the digital marketing system basedon retail and covering all business processes of marketing, and achieved smooth connection of enterprisemarketing system to shop terminals of dealers, so that the coordinated business of dealers can be madeonline and thus it significantly improved efficiency. Meanwhile, the system data can guide ordering planof dealers and internal production plan of the Company, and improved accuracy of sales and productionplan; the Company had constructed private flow pool of AIMA, and laid foundation for the Company toperform user operation. The Company carried out transformation of intelligent manufacturing, analyzedbusiness plan execution situation through data perspective, and realized data-feeding lean manufacturing.The Company promoted supply and sale integration by smooth system connection concurrently, whichremarkably enhanced efficiency. The Company empowered management, realized integration ofbusiness and finance, inspected execution of decision with operation data and realizes consistent datacollection standards and decision-making based on data. With accurate operation, forward development,lean manufacture, and accurate data supporting operation decision-making, the Company gave quickresponse and agile treatment to market demand, accurately understood and promptly met users’ demand,
and reduced costs and improved benefit by refinement operation. The Company had initially realizedoverall information technology use, digital operation, smart decision-making and automatic execution.(VIII) Talent team with high loyalty and professional level
The Company upheld the talent management idea of “showing respect for our staff, improving theircompetence and making them happy”, established the human resource management system based ontalent development and human capital appreciation, including attractive remuneration system, smoothoccupational promotion channel, professional talent training system, good employee welfare system andinclusive and creative diversified business culture, so that the Company became the happy platform ofcontributors, improved professional capacity and quality of staff and cultivated the talent team with highloyalty and professional level, and made them happier.V. Major Operation Situation in the Reporting PeriodIn the reporting period, the Company recorded revenue of RMB 20,802.213 million, representing ayear-on-year increase of 35.09%, the profit attributable to shareholders of the listed company of RMB1,873.4333 million, representing a year-on-year increase of 182.14%, and the profit deducting non-recurring gains or losses attributable to shareholders of the listed company of RMB 1,797.3577 million,representing a year-on-year increase of 191.68%. The main reasons were that the Company continuouslyfocused on its core business, i.e. R&D and manufacture of electric two-wheel vehicles, executed annualbusiness and operating plan, continuously improved product power, channel capacity and capability,brand power, technological power, productivity, operation capacity, and achieved good businessoperations in 2022.(I) Analysis on main business
1. Analysis on change of relevant items in income statement and cash flow statement
In: Yuan Currency: RMB
| Items | Amount of the current year | Amount of last year | Change (%) |
| Revenue | 20,802,212,994.46 | 15,398,710,870.72 | 35.09 |
| Cost of sales | 17,398,502,632.36 | 13,593,606,029.56 | 27.99 |
| Selling expenses | 587,315,848.35 | 550,605,290.98 | 6.67 |
| Administrative expenses | 432,777,222.67 | 316,594,598.36 | 36.70 |
| Financial expenses | -382,697,297.50 | -261,133,668.57 | N/A |
| R&D expenses | 506,685,038.01 | 404,084,127.91 | 25.39 |
| Net cash flows from operating activities | 5,051,454,116.94 | 2,094,187,373.97 | 141.21 |
| Net cash flows from investing activities | -2,178,319,161.48 | -2,024,141,754.57 | N/A |
| Net cash flows from financing activities | -182,243,777.55 | 1,797,930,958.66 | -110.14 |
The change in revenue was mainly attributable to the fact that the Company continued to leverageits competitive advantage, there was a robust demand for the Company’s main products, and its operatingperformance was on the increase.
The change in cost of sales was mainly attributable to the growing sales scale and the simultaneousincrease of operating cost.
The change in selling expenses was mainly attributable to the enlarged sales volume and thesimultaneous increase of selling expenses.
The change in administrative expenses was primarily attributable to the increased amortization ofspending on restricted stock incentives implemented during the reporting period.
The change in financial expenses was mainly due to the increased interest income generated fromthe larger scale of the currency funds.
The change in R&D expenses was due to that the Company enhanced the R&D investment.
The change in net cash flows from operating activities was mainly due to that the business growthled to more cash received from operating activities.
The change in net cash flows from investing activities was mainly due to the difference of low-riskfinancial products purchased and redeemed by the Company in the reporting period increased year onyear.Reasons for the change in net cash flows from financing activities: ① the cash outflow increasedsince the Company implemented the 2021 Equity Distribution Plan during the reporting period; ② theCompany raised capital by IPO in the same period of the previous year.Detailed description of major changes of the Company in business type, profit makeup or profitsource?Applicable √Not applicable
2. Analysis on revenue and cost of sales
√Applicable ?Not applicable
In the reporting period, the Company recorded revenue of RMB 20,802.213 million, representing ayear-on-year increase of 35.09%, and cost of sales of RMB 17,398.5026 million, representing a year-on-year increase of 27.99%, as the Company achieved performance growth by focusing on its main business,and continually utilizing its brand influence strength.
(1). Sales information of principal operation by industry, products, regions and sales models
In: Yuan Currency: RMB
| Information of main business by industries | ||||||
| Based on industry | Revenue | Cost of sales | Gross profit margin (%) | Change of revenue compared with last year (%) | Change of cost of sales compared with last year (%) | Change of gross profit margin compared with last year (%) |
| Railway, ship, aerospace and other transport equipment manufacture industries | 20,665,424,894.78 | 17,312,624,672.57 | 16.22 | 35.38 | 28.32 | Increased by 4.6 percentage points |
| Information of principal operation by products | ||||||
| Product | Revenue | Cost of sales | Gross profit margin (%) | Change of revenue compared with last year (%) | Change of cost of sales compared with last year (%) | Change of gross profit margin compared with last year (%) |
| Electric bicycles | 12,134,936,859.64 | 10,068,416,512.74 | 17.03 | 69.49 | 58.90 | Increased by 5.53 percentage points |
| Electric two-wheel motorcycles | 7,143,561,215.16 | 6,063,830,677.68 | 15.11 | 5.59 | 1.13 | Increased by 3.74 percentage points |
| Electric tricycles | 797,453,478.08 | 665,107,850.67 | 16.60 | 21.76 | 17.36 | Increased by 3.13 percentage points |
| Bicycles | 3,206,607.36 | 2,893,119.15 | 9.78 | -93.36 | -93.64 | Increased by 3.98 |
| percentage points | ||||||
| Sale of parts | 586,266,734.54 | 512,376,512.33 | 12.60 | -7.91 | -6.32 | Increased by 1.48 percentage points |
| Information of principal operation by regions | ||||||
| Region | Revenue | Cost of sales | Gross profit margin (%) | Change of revenue compared with last year (%) | Change of cost of sales compared with last year (%) | Change of gross profit margin compared with last year (%) |
| Northeast China | 517,203,936.16 | 440,287,226.98 | 14.87 | 37.40 | 29.92 | Increased by 4.9 percentage points |
| East China | 8,346,994,705.28 | 6,916,047,881.80 | 17.14 | 45.38 | 36.97 | Increased by 5.08 percentage points |
| North China | 2,710,951,421.43 | 2,295,863,032.64 | 15.31 | 34.97 | 30.43 | Increased by 2.95 percentage points |
| Central China | 2,981,516,870.36 | 2,530,406,986.75 | 15.13 | 21.87 | 16.39 | Increased by 4.00 percentage points |
| South China | 3,487,873,335.66 | 2,911,045,655.29 | 16.54 | 52.67 | 45.16 | Increased by 4.32 percentage points |
| Southwest China | 1,480,171,286.96 | 1,261,728,855.46 | 14.76 | 43.67 | 36.28 | Increased by 4.63percentage points |
| Northwest China | 806,080,071.28 | 677,574,363.97 | 15.94 | 40.25 | 35.92 | Increased by 2.68 percentage points |
| Overseas | 221,186,462.65 | 174,610,671.34 | 21.06 | 28.26 | 24.77 | Increased by 2.21 percentage points |
| Undefined region | 113,446,805.00 | 105,059,998.34 | 7.39 | -82.00 | -82.47 | Increased by 2.48 percentage points |
| Information of principal operation by sales models | ||||||
| Sales model | Revenue | Cost of sales | Gross profit margin (%) | Change of revenue compared with last year (%) | Change of cost of sales compared with last year (%) | Change of gross profit margin compared with last year (%) |
| Distribution | 19,944,845,861.46 | 16,682,005,922.88 | 16.36 | 39.85 | 32.68 | Increased by 4.52 |
| percentage points | ||||||
| Direct sales | 720,579,033.32 | 630,618,749.69 | 12.48 | -28.17 | -31.31 | Increased by 4.00 percentage points |
Description of principal operation by industry, products, regions, sales models
① Description of revenue and cost of sales of principal operation by industry: in the reporting period,the Company focused on its main business, continually utilized its brand strength and obtainedperformance growth. Furthermore, the Company strengthened new product development efforts,optimized product structure and increased the ratio of the newly developed and high-profit products insale.
② Description of sales of principal operation by products: in the reporting period, as the mainproducts of the Company, the electric bicycles achieved sound sales performance, and the demand ofelectric tricycles also showed the trend of rapid increase. The market demand for electric two-wheelmotorcycles was stabilizing due to the influence of the New National Standard.
③ Description of sales of principal operation by regions: The Company actively developed its saleschannels, and consequently caused the steady growth in the major sales regions.
④ Description of sales of principal operation by sales models: The revenue from direct sales modelreduced than last year because of the decreased orders of sharing bicycles and electric two-wheelvehicles produced through OEMs.
(2). Analysis on production and sales volumes
√Applicable ?Not applicable
| Main product | Unit | Production volume | Sales volume | Inventory | Change of production volume (%) | Change of sales volume (%) | Change of inventory (%) |
| Electric bicycles | Set | 7,258,671 | 7,236,942 | 280,239 | 41.97 | 44.20 | 8.41 |
| Electric two-wheel motorcycles | Set | 3,254,501 | 3,269,590 | 76,968 | -2.49 | -1.86 | -16.39 |
| Electric tricycles | Set | 263,463 | 261,446 | 14,324 | 24.35 | 27.84 | 16.39 |
| Bicycles | Set | 2,052 | 4,755 | 6 | -98.18 | -95.88 | -99.78 |
| Total | Set | 10,778,687 | 10,772,733 | 371,537 | 22.83 | 24.25 | 1.63 |
Description of production and sales volumes
① In the reporting period, the Company's electric two-wheel vehicles sold well, with a YoY growthof 25.82%. Among them, the market demand for electric bicycles was strong, with a YoY increase of
44.20%; the demand for electric two-wheel motorcycles was stabilizing due to the influence of the NewNational Standard.
② In the reporting period, the Company's electric tricycles sold well because of brisk demand.
③ The significant decline in the Company's bicycle production and sales during the reporting periodwas caused by the decreased orders of sharing bicycles.
④ The production and inventory of the Company remained stable, with flexible adjustments betweencategories based on market orders.
(3). Performance situation of major purchasing contracts, major sales contracts?Applicable √Not applicable
(4). Cost analysis form
In: Yuan
| Information based on industry | ||||||
| Industry | Cost components | Consumed in current year | Ratio in total cost in current year (%) | Consumed in last year | Ratio in total cost in last year (%) | Change in consumption (%) |
| Railway, ship, aerospace and other transport equipment manufacture industries | Direct materials | 16,498,119,094.70 | 95.30 | 12,835,977,562.81 | 95.14 | 28.53 |
| Direct labor and manufacture expenses | 814,505,577.87 | 4.70 | 655,410,117.04 | 4.86 | 24.27 | |
| Total | 17,312,624,672.57 | 100 | 13,491,387,679.85 | 100 | 28.32 | |
| Information based on product | ||||||
| Product | Cost structure item | Consumed in current year | Ratio in total cost in current year (%) | Consumed in last year | Ratio in total cost in last year (%) | Change in consumption (%) |
| Electric bicycle | Direct materials | 9,482,221,123.11 | 54.77 | 5,936,021,994.54 | 44 | 59.74 |
| Direct labor and manufacture expenses | 586,195,389.63 | 3.39 | 400,191,585.40 | 2.97 | 46.48 | |
| Sub-total | 10,068,416,512.74 | 58.16 | 6,336,213,579.94 | 46.97 | 58.90 | |
| Electric two-wheel motorcycle | Direct materials | 5,888,168,560.03 | 34.01 | 5,796,324,564.55 | 42.96 | 1.58 |
| Direct labor and manufacture expenses | 175,662,117.65 | 1.01 | 199,700,426.37 | 1.48 | -12.04 | |
| Sub-total | 6,063,830,677.68 | 35.03 | 5,996,024,990.92 | 44.44 | 1.13 | |
| Electric tricycle | Direct materials | 612,745,321.52 | 3.54 | 515,830,075.38 | 3.82 | 18.79 |
| Direct labor and manufacture expenses | 52,362,529.15 | 0.30 | 50,871,646.25 | 0.38 | 2.93 | |
| Sub-total | 665,107,850.67 | 3.84 | 566,701,721.63 | 4.2 | 17.36 | |
| Bicycle | Direct materials | 2,607,577.70 | 0.02 | 40,840,899.05 | 0.3 | -93.62 |
| Direct labor and manufacture expenses | 285,541.45 | 0.00 | 4,646,459.02 | 0.03 | -93.85 | |
| Sub-total | 2,893,119.15 | 0.02 | 45,487,358.07 | 0.34 | -93.64 | |
| Sale of parts | Direct materials | 512,376,512.33 | 2.96 | 546,960,029.29 | 4.05 | -6.32 |
| Total | 17,312,624,672.57 | 100.00 | 13,491,387,679.85 | 100.00 | 28.32 |
Description of other situations in cost analysisDuring the reporting period, the cost components of the Company's main products remainedgenerally stable, with a slight increase in the cost of purchased main raw materials. But this influencewas offset by the 35.38% increase in the Company's prime operating revenue over the previous year.
(5). Equity change of major subsidiaries in the reporting period caused change of consolidationscope?Applicable √Not applicable
(6). Major changes of the Company about business, product or service in the reporting periodor relevant adjustment situation?Applicable √Not applicable
(7). Major customers and major suppliers
A. Information of major customers of the Company
√Applicable ?Not applicable
The total sales amount to the top five customers was RMB 1,032.9955 million, accounting for 4.97%of the annual sales amount. Among the sales to the top five customers, the amount of sales to the relatedparties was nil, accounting for 0% of the annual sales amount.In the reporting period, the circumstance that sales ratio to single customer exceeded 50% of totalamount, there were new customers in top five customers or it seriously relied on minority customers?Applicable √Not applicableB. Information of major suppliers of the Company
√Applicable ?Not applicable
The total purchasing amount from the top five suppliers was RMB 6,175.381 million, accounting for
36.45% of the annual purchasing amount. Among the purchase from the top five suppliers, the amountof purchase from the related parties was nil, accounting for 0% of the annual purchases.
In the reporting period, the circumstance that purchasing ratio from single supplier exceeded 50% oftotal amount, there were new suppliers in top five suppliers or it seriously relied on minority suppliers?Applicable √Not applicable
3. Expenses
√Applicable ?Not applicable
In: Yuan
| Expense item | Current year | Prior year | Change (%) | Description of change reasons |
| Selling expenses | 587,315,848.35 | 550,605,290.98 | 6.67 | Mainly attributable to the enlarged sales volume and the simultaneous increase of selling expenses. |
| Administrative expenses | 432,777,222.67 | 316,594,598.36 | 36.70 | Primarily attributable to the increased amortization of spending on restricted stock incentives implemented during the reporting period. |
| Financial expenses | -382,697,297.50 | -261,133,668.57 | N/A | The increased interest income generated from the larger scale of the currency funds |
| R&D expenses | 506,685,038.01 | 404,084,127.91 | 25.39 | The Company enhanced the R&D investment |
4. Research and development input
(1). R&D input form
√Applicable ?Not applicable
In: Yuan
| Research and development input expensed in current period | 506,685,038.01 |
| Research and development input capitalized in current period | 0.00 |
| Total of research and development input | 506,685,038.01 |
| Ratio of total R&D input in revenue (%) | 2.44 |
| Ratio of capitalization of R&D input (%) | 0.00 |
(2). Information of R&D personnel
√Applicable ?Not applicable
| Quantity of R&D personnel of the Company | 917 |
| Ratio of R&D personnel in staff of the Company (%) | 11.28 |
| Educational structure of R&D personnel | |
| Category of educational structure | People in educational structure |
| Doctorate | 3 |
| Master degree | 21 |
| University | 322 |
| Junior college | 299 |
| High school and below | 272 |
| Age structure of R&D personnel | |
| Category of age structure | People in age structure |
| Below 30 (exclusive) | 270 |
| 30-40 (inclusive 30, exclusive 40) | 485 |
| 40-50 (inclusive 40, exclusive 50) | 120 |
| 50-60 (inclusive 50, exclusive 60) | 39 |
| Above 60 | 3 |
(3). Description of situation
?Applicable √Not applicable
(4). Reasons of major change about R&D personnel structure and impact on future developmentof the Company?Applicable √Not applicable
5. Cash flows
√Applicable ?Not applicable
| Cash flow item | Current year | Prior year | Change (%) | Description of change reasons |
| Net cash flows from operating activities | 5,051,454,116.94 | 2,094,187,373.97 | 141.21 | The business growth led to more cash received from operating activities |
| Net cash flows from investing activities | -2,178,319,161.48 | -2,024,141,754.57 | N/A | The difference of low-risk financial products purchased and redeemed by the Company in the reporting period increased than in last year. |
| Net cash flows from financing activities | -182,243,777.55 | 1,797,930,958.66 | -110.14 | Main reasons: ① the cash outflow increased since the Company implemented the 2021 Equity Distribution Plan during the reporting period; ② the Company raised capital by IPO in the same period of the previous year. |
(II) Description of major changes of project caused by non-main business?Applicable √Not applicable(III) Analysis on assets and liabilities
√Applicable ?Not applicable
1. Assets and liabilities
In: Yuan
| Item | Closing balance of current year | Percentage of closing balance of current year in total assets (%) | Closing balance of last year | Percentage of closing balance of last year in total assets (%) | Year-on-year Change (%) | Description of change |
| Currency funds | 6,633,455,070.29 | 35.91 | 2,846,143,310.70 | 21.24 | 133.07 | The Company's sales increased in the reporting period, resulting in an increase in the payments for goods received. |
| Financial assets held for trading | 142,668,675.59 | 0.77 | 1,265,981,818.24 | 9.45 | -88.73 | The Company reduced its holdings of short-maturity, low-risk bank financial products. |
| Accounts receivable | 290,365,547.11 | 1.57 | 207,629,801.65 | 1.55 | 39.85 | The Company's sales increased in the reporting period, resulting in an increase in accounts receivable. |
| Receivables financing | 8,332,754.00 | 0.05 | 49,295,422.59 | 0.37 | -83.10 | Decreased unexpired bank acceptance bill held by the Company at the end of reporting period. |
| Other receivables | 28,051,920.26 | 0.15 | 150,069,854.58 | 1.12 | -81.31 | The deposit for the purchased lithium battery |
| components with fixed price at the end of the previous year was converted into payment for goods in this reporting period. | ||||||
| Non-current assets due in one year | 3,524,708,328.77 | 19.08 | N/A | Increased fixed term deposits due within a year at the end of the reporting period | ||
| Other current assets | 77,023,491.16 | 0.42 | 170,807,953.30 | 1.27 | -54.91 | Decreased input VAT to be deducted in the reporting period |
| Intangible assets | 457,986,772.95 | 2.48 | 332,074,064.23 | 2.48 | 37.92 | Payment for land purchases in Taizhou and Guigang production bases in the reporting period. |
| Long-term prepaid expenses | 43,895,107.41 | 0.24 | 29,394,318.63 | 0.22 | 49.33 | Increased spending on workshop reconstruction in the reporting period |
| Notes payable | 6,853,338,997.32 | 37.10 | 4,926,337,711.40 | 36.77 | 39.12 | The Company's sales increased in the reporting period, resulting in increased bank acceptance bills issued to suppliers. |
| Receipts in advance | 20,619,060.26 | 0.11 | 13,125,994.89 | 0.10 | 57.09 | Increased plant rental payments received in the reporting period |
| Contract liabilities | 638,429,605.04 | 3.46 | 483,535,624.57 | 3.61 | 32.03 | The Company's sales increased in the reporting period, resulting in an increase in the rebates to dealers. |
| Payroll payable | 162,900,880.50 | 0.88 | 113,584,622.70 | 0.85 | 43.42 | Increase annual bonuses accrued and unpaid at the end of the reporting period. |
| Taxes and surcharges payable | 154,033,696.44 | 0.83 | 58,301,487.57 | 0.44 | 164.20 | The Company's sales increased in the reporting period, resulting in an increase in the corporate income tax payable. |
| Other current liabilities | 24,329,644.32 | 0.13 | 39,990,259.74 | 0.30 | -39.16 | Decreased output VAT |
| Deferred income | 198,066,664.29 | 1.07 | 118,883,340.46 | 0.89 | 66.61 | Increased deferred income represented the government grants relating to assets received in the reporting period |
| Deferred tax liabilities | 14,379,454.97 | 0.08 | 431,224.44 | 0.00 | 3,234.56 | Increased book-tax difference resulting from investment income of unexpired financial products at the end of the reporting period. |
| Equity | 574,700,004.00 | 3.11 | 403,660,003.00 | 3.01 | 42.37 | The Company conducted capitalization of capital reserve in the reporting period. |
| Treasury stock | 134,953,200.00 | 0.73 | N/A | The Company issued restricted stocks to employees as incentives in the reporting period. | ||
| Surplus reserves | 290,784,296.91 | 1.57 | 201,830,001.50 | 1.51 | 44.07 | The parent company sustained to make profits in the reporting period, resulting in an increase in the provision for surplus reserves. |
| Undistributed profits | 4,012,879,593.44 | 21.72 | 2,433,650,547.11 | 18.17 | 64.89 | The Company's net profit increased significantly in the reporting period, resulting in an increase in retained earnings. |
| Minority shareholders' equity | 13,145,608.02 | 0.07 | 4,940,339.11 | 0.04 | 166.09 | Non-wholly owned subsidiaries newly established in the reporting period absorbed minority investments. |
2. Information of overseas assets
?Applicable √Not applicable
3. Information of main restricted assets at the end of reporting period
√Applicable ?Not applicable
| Item | Closing book | Restriction reason |
| value | ||
| Currency funds | 1,096,591,549.00 | Bill deposit |
| Other non-current assets | 3,230,000,000.00 | Bank acceptance bills issued as pledge guarantee |
| Non-current assets due in one year | 3,200,000,000.00 | Bank acceptance bills issued as pledge guarantee |
| Total | 7,526,591,549.00 | / |
4. Other descriptions
?Applicable √Not applicable(IV) Analysis on industrial operation information?Applicable √Not applicable
(V) Analysis on investment statusOverall analysis on external equity investment
√Applicable ?Not applicable
See the following “major non-equity investments” and “financial assets measures with fair value” for details.
1. Major equity investments
?Applicable √Not applicable
2. Major non-equity investments
√Applicable ?Not applicable
(1) Guigang Base
In July 2022, the Company reviewed and adopted the Proposal on the Company Intends to Sign the Investment Agreement with the People’s Governmentof Guigang City at the 28th meeting of the fourth session of the Board, approving the Company’s proposal to invest approximately RMB 1.15 billion in theconstruction of the Aima Smart Travel Industrial Park Project in Guigang City. This project was undertaken by the Company’s wholly-owned subsidiary GuangxiVehicle. As of the end of the reporting period, the Company had obtained the State-owned Land Use Certificate and Construction Land Planning Permit for theproject site.
(2) Lishui Base
In November 2021, the Company held the second temporary general meeting of 2021, discussed and adopted the Proposal on the Company Intends toSign the Investment Agreement with the People’s Government of Qingtian County, Lishui City, and the Company was agreed to invest about RMB 2 billion inthe construction of the project of Aima New Energy Smart Transportation Ecological Industry Park. The project was undertaken by the Company’s wholly-owned subsidiary Lishui Vehicle. During the reporting period, Lishui Vehicle signed the Contract for Transferring the Right to Use State-owned ConstructionLand with the Qingtian County Natural Resources and Planning Bureau for the project site. As of the end of the reporting period, the Company had obtainedthe State-owned Land Use Certificate for the project site.
(3) Taizhou Base
In September 2021, the Company held the 21st meeting of the fourth board of directors, discussed and adopted the Proposal on the Company Intends toSign the Investment Agreement on Taizhou Smart Electric Vehicles and High-Speed Electric Motorcycle Project, and the Company was agreed to invest a totalof RMB 1 billion to build up the smart electric vehicles and high-speed electric motorcycle project of Taizhou at Huangyan District, Taizhou City. Taizhou Vehicle,a wholly-owned subsidiary, was responsible for implementation of the project. As of end of the reporting period, Taizhou Vehicle has signed Contract forTransferring the Right to Use State-owned Construction Land with Taizhou Natural Resources and Planning Bureau of Taizhou City.
3. Financial assets measured at fair value
?Applicable √Not applicableSecurities investment
√Applicable ?Not applicable
In: Yuan’0000, currency: RMB
| Category of security | Code of security | Abbreviation | Initial investment cost | Source of funding | Opening book value | Gains or losses arising from changes in fair value | Commutative changes in fair value recognized in profit or loss | Purchases | Sales | Gain or loss on investments | Closing book value | Account |
| Stock | 688819.SH | Tianneng Share | 8,399.79 | Self-owned funds | 8,560.00 | 1,212.00 | -1,212.00 | 0 | 0 | -1,212.00 | 7,348.00 | Financial assets held for trading |
Private equity investment?Applicable √Not applicableDerivatives investment?Applicable √Not applicable
4. Concrete progress of restructuring and integration of major assets in the reporting period?Applicable √Not applicable(VI) Sale of major assets and equity?Applicable √Not applicable(VII) Analysis of major controlling and companies invested by the Company
√Applicable ?Not applicable
In: Yuan’0000, currency: RMB
| Name of company | Control relationship | Main business | Registered capital | Total assets | Net assets | Revenue | Net profit |
| Aima Chongqing | Wholly-owned subsidiary | Development, manufacture and sale of electric bicycle, electric moped, electric motorcycle | 1,000 | 452,148.23 | 203,735.22 | 1,051,515.83 | 38,161.74 |
| Tianjin Vehicle | Wholly- owned subsidiary | Development, manufacture and sale of electric bicycle, electric moped, electric motorcycle, electric tricycle | 10,000 | 297,269.42 | 58,021.23 | 719,812.63 | 41,726.45 |
| Jiangsu Vehicle | Wholly- owned subsidiary | Development, manufacture and sale of electric bicycle, electric moped, electric motorcycle | 44,000 | 152,930.19 | 32,949.34 | 539,619.59 | 18,426.71 |
| Guangdong Vehicle | Wholly- owned subsidiary | Development, manufacture and sale of electric bicycle, electric moped, electric motorcycle | 10,000 | 72,331.67 | 32,578.18 | 236,195.42 | 19,596.35 |
| Zhejiang Vehicle | Wholly- owned subsidiary | Development, manufacture and sale of electric bicycle, electric moped, electric motorcycle | 10,000 | 69,004.11 | 24,571.36 | 220,517.78 | 12,174.72 |
In the reporting period, net profit realized by the above major wholly-funded subsidiaries came fromthe sales of major products including electric two-wheel vehicles, electric tricycles. Other subsidiaries andassociates of the Company were in normal operation, and their profit and loss situation had little impactto the Company.(VIII) Information of structured subjects under control of the Company?Applicable √Not applicable
VI. Discussion and Analysis of The Company on Its Future Development(I) Industrial structure and trend
√Applicable ?Not applicable
1. Competition situation of industry
With more intensive market competition and implementation of New National Standard, a largenumber of small-scale and low-efficiency enterprises that don’t have product development andtechnological competitiveness have been eliminated or closed down, and the industry concentration hascontinued to increase. In view of enterprise features, the industry participants mainly include threecategories of enterprises: the enterprises in the first category are nationwide brand enterprises, whichhave nationwide marketing network, nationwide production layout, independent product developmentcapacity, powerful capital strength and good market reputation. These enterprises generally havesignificant scale strength and brand influence, pay attention to product development and technicalinnovation and own wide user foundation and market recognition; the enterprises in the second categoryare regional brand enterprises, which have formed unique competition strength in long-term marketcompetition, have certain market strength in specific regions and specific products, and have powerfulindustry chain integration capacity and market promotion capacity; the enterprises in the third categoryare newcomers, which start to enter the industry after the electric two-wheel vehicle industry has beenmature. By focusing on products for specific users or specific uses, with intelligence and networkingtechnology as the selling point, as they gain a certain market in specific markets and specific uses, theybegin to penetrate into the mass consumer market.
Form market competition situation of electric two-wheel vehicles
| Market participant | Customer group | Brand influence | Channel | Distribution of manufacture base |
| Nationwide brand enterprises | Nationwide consumers | With brand popularity in China | Has set up the nationwide marketing network | Select a few of regions with industrial cluster effect in China, establish nationwide manufacture base system |
| Regional brand enterprises | Local consumers | With brand popularity in a region | With good marketing network at local place | Establish manufacture base at local place |
| Newcomers | A segmenting | With brand | Channels mainly | Outsource some |
| consumer group (currently they are mainly high-income people in first-tier and second-tier cities) | popularity mainly in first-tier and second-tier cities | concentrated in first-tier and second-tier cities | production processes |
2. Industrial drive factors
(1) Policy
The supervision system in the aspect of policy is becoming better, and implementation ofNew National Standard and other industrial policies regulates development of industry and bringsdevelopment opportunities for head enterprises.
1) New National Standard
Implementation of New National Standard brings changes in competition order and market volume.
The inspection rules of Old National Standard are divided into three categories, veto items, importantitems and common items. The electric bicycle, meeting all veto items, at least 15 ones in 18 importantitems and at least 9 items in 13 common items, are deemed as qualified in inspection conclusion. TheNew National Standard does not distinguish the inspection rules of electric bicycle, all technicalparameters are compulsory requirements, and insists on the nature of non-motor vehicle of electricbicycle in a few of aspects, for example, the highest velocity of vehicle shall not exceed 25km/h, andincreases the technical requirement to prevent changing maximum speed.
With implementation of New National Standard, in order to further strengthen transportation safetymanagement, the administrative departments implement transition period management policy for theexisting electric bicycles that exceed the standard, and each local government set the transition period.After the transition period expires, the electric bicycles exceeding the standard will not be allowed to runon the road again. Local governments promulgated the management policies for electric bicycles thatexceed the standard, and set different transition periods (generally 5 years, i.e. closing before the end of2024). And also they strictly executed the New National Standard, and the digital and smart transportmonitoring equipment and execution tools greatly reduced execution difficulty, therefore, theimplementation effect of the New National Standard was good, and the replacement demand increasingevery year extended the industry’s market volume.
After implementation of the New National Standard, the demand to electric mopeds and electricmotorcycles significantly increased, many manufacturers had to pass strict entry examination in order toobtain production and management qualification. In addition, all electric two-wheel vehicles must pass3C authentication before sale in the market, and the authentication would generate certain expenses.These requirements significantly raised industrial entry barrier and the operating costs of whole vehiclemanufacturers, accelerated survival of the fittest in the industry, and had active promotion action forregulating development and competition order of electric two-wheel vehicle industry. In view ofimplementation effect of New National Standard in recent two years, integration showed accelerationtrend in the industry, and the market share would be concentrated to the leading enterprises.
2) Other important industry policies
The industry supervision and administration policies promulgated and implemented in recent yearswere mainly related to safety (including riding safety and fire safety). Benefiting from digital and smarttransportation monitoring equipment and execution tools, execution strength and effect continuallyincrease, safety use of electric two-wheel vehicles and industrial order were strictly regulated fromproduction end, sales end and user end.
The State Taxation Administration, Ministry of Industry and Information Technology, Ministry ofPublic Security jointly released Measures for the Use of Motor Vehicle Invoices, which was formallyimplemented in July 2021. Enterprises which manufacture and sell motor vehicles shall issue unifiedinvoices for the motor vehicles which they have sold according to the principle of “one invoice for onevehicle”, and any electric motorcycle and electric moped not issued with invoice cannot obtain licenseplate and run on road. The policy of “one invoice for one vehicle” is convenient for after-sale claim ofconsumers and effectively removes unsymmetrical competition in the industry.
In addition, occurrence of public safety accidents arising from electric two-wheel vehicle on firecatches more social attention in recent years. Execution of the rule “electric vehicles shall not be upstairs”
is stricter, safe charging had become the focal point in consumption and an important issue affecting thedevelopment of the industry, and generated a huge potential demand market, and also provided room forbusiness expansion and performance growth.
(2) Society
The common view of “low carbon emission and green transport” and worse traffic jam tocommute habit made more users to accept electric two-wheel vehicles.In recent years, governments of various nations continually improved the policy and law system onlow carbon emission, and advocated the concept of green environmental protection, in order to solvegreenhouse effect. The common view of “low carbon emission and green transport” made electric two-wheel vehicles accepted by more customers; traffic jam had become worse day by day, many familiesand individuals who owned vehicle or electric four-wheel vehicles were willing to select electric two-wheelvehicles for medium and short-distance travel because they were flexible and convenient.
(3) Economy
The medium and short-distance travel demand of residents is basic, transport cost advantagemakes electric two-wheel vehicle as major selection for medium and short-distance travel; therise of take-out distribution and other emerging businesses remarkably extend the use scenariosof electric two-wheel vehicles.
With economic development and urbanization progress, the travel radius of residents (includingurban and rural residents) continually increases, and the medium and short-distance travel demand isincreasing. Compared with other medium and short-distance vehicles, electric two-wheel vehicle has thefollowing advantages: economical, convenient, time-saving and labor-saving, and the transportation costadvantage is even more obvious, this highly meets the demand of residents and it becomes the majorselection of residents for medium and short-distance travel. This is the basic drive factor of industrydevelopment.
Furthermore, when consumption awareness of residents improves and the “Internet +” service modelis becoming mature in China, various door-to-door services have become mainstream of newconsumption, take-out services driven under O2O (online/offline) model and express services drivenunder e-commerce have become the new consumption scenarios of electric two-wheel vehicle, whichbenefits the expansion of industry capacity.
(4) Technology
In-depth research on the design, technology and process of electric two-wheel vehicles andthe continuous application of networking and intelligence jointly drive the technologicaldevelopment of the industry.
Industry technologies are developed mainly in two paths, one is innovation and improvement of theinherent technology system of the industry (including material, process and structure), includingperformance improvement of core hardware such as battery, application of new environment-friendlymaterials and new technologies, improvement of vehicle body structure. The other is technical applicationcrossing industries, networking and smart technical application is the R&D field of current important cross-industry technical application. Both of them jointly promote technology development of the industry,improvement of product performance and function expansion, and it is beneficial that the products in theindustry obtain wider market recognition. After the leading enterprises with strength in R&D investmentacquire economic interest from research and development, they will further increase input in R&D anddesign, so that it can generate good cycle of R&D - design - manufacture - sale, and promoteimprovement of industry concentration and whole upgrading of industry.
(5) International demand
Carbon emission reduction is an important strategic consensus formed on a global scale.Under the background of the continuous implementation of "carbon peaking and carbonneutrality" policies in various countries, the international market for electric two-wheel vehiclesis showing a growing trend.
Since electric two-wheel vehicle emerged, the domestic market is the major consumption market,but the international market has low demand to electric two-wheel vehicles. Compared with electric two-wheel vehicles, motorcycles and electric assistance products with leisure and fitness function are greatlyacceptable by overseas customers. A few of manufacturers in China have a little export business, and
they try to build up factories in Southeast Asia /other countries for developing business, but the effect isvery little. While environmental protection awareness is being strengthened in the world, many countriespromulgate relevant policies for “prohibiting motorcycle” or encouraging “replacing oil with electricity”, andthe demand to electric two-wheel vehicles in the international market shows increasing trend, and thisprovides another huge development space for the industry.
3. Industry development trend
Economic transformation and consumption upgrading, application of networking and smarttechnologies and rise of international demand under carbon peaking and carbon neutrality willdrive electric two-wheel vehicle industry developing to differential, high-end, smart andinternational direction.
(1) Differentiation
Electric two-wheel vehicles in early days mainly met the short-distance travel demand of the public,and the products focused at riding function and cost performance, they had simple functions and arehomogeneous. With improvement of living standard of residents and development of consumptionupgrading trend, the consumption demand to electric two-wheel vehicles changes to the direction ofquality, function, personality and experience, including color, vehicle model and style (such as business,fashion and sports), driving mileage, smart interaction, riding comfort, brake safety, stability, etc. In thetrend of consumption demand transformation and consumption upgrading, electric two-wheel vehicleswill show differential trend, namely, manufacturers carry out precise identification and deep research tosegmenting consumption demand, and organize customized production according to different personaldemands.
(2) High-end
With more intensive competition in the industry, restructuring of industry order and change ofconsumption demand, high-end will be the necessary option of electric two-wheel vehicle industry, andis also only way of brand enterprises. High-end trend of the industry includes three aspects: first, productfunction upgrading and expansion, second, brand re-positioning and extension, third, overall high-endtransformation. Overall high-end transformation mainly refers to innovation, evolution and upgrading ofthe existing industrial pattern under the networking, smart and digital trend.
(3) Smartness
Consumption upgrading and cross-industry technical application provide opportunities for smartdevelopment of the industry, including development and application of automatic driving, automaticparking, smart navigation, automatic unlocking, health testing, remote failure diagnosis, anti-theft warningand other smart modules. Especially, Gen Z people, who have been one of the major consumption groups,pay more attention to smart unlocking, human-vehicle interconnection and other smart functions. Withcontinual development of Internet of vehicles, smart function is hopeful to be the standard functionconfiguration. At that time, electric two-wheel vehicles will not be limited to be short-distance transportvehicle, and they will become an important part of smart networking media system of residents and theimportant source of social networking data.
(4) Internationalization
With formation of international common view on carbon emission reduction and understanding ofoverseas users about green and convenient characteristics of electric two-wheel vehicle, internationalmarket faces development opportunity, electric two-wheel vehicle industry will gradually move fromdomestic market to global market. At present, many domestic manufacturers of China Intensify theirefforts to expand the international market. In spite of the obstruction of trade protectionism in the courseof internationalization, the unique advantage of electric two-wheel vehicle industry and the internationalstrategy of some leading enterprises will be helpful for electric two-wheel vehicles to enter overseasmarket, and this will become the important development trend of this industry.(II) Development strategy of the Company
√Applicable ?Not applicable
The Company will, based on its strategic axis of “Users First, Excellent Products, In-depthDevelopment in the Market, Refined Operation” and following its strategic direction of transforming todigital and smart technical company, focus its core business and carry out differential competition. The
Company will achieve products smart and high-end by application of Internet of vehicle technologies anddevelopment of core hardware and others, and actively develop international market.(III) Management plan
√Applicable ?Not applicable
1. Product
Taking meeting user needs as the core and starting point, we continuously improve the productforward development process (APDS) and create hot product projects, promote the upgrading of theAima vehicle manufacturing platform, increase investment in user demand research and data collection,and product trend insight, and improve the precision development ability of products. And the successrate of product development and the contribution rate of best-selling product sales are also enhanced.The Company also continues to streamline SKU, implement platform and standardization, and focus onresources. It further makes the whole processes of planning, design, development, manufacturing andprocurement smooth, solves coordination problem in the course of product development and improvesefficiency. The Company continues to optimize and strictly implement the whole-process quality controlsystem, strictly control the key point management of new product quality, increase investment in producttesting equipment, and promote the implementation of key component standards to ensure productquality. The Company takes improvement of product service experience as an important strategicmeasure of improving brand and product competition, adds input to digital and smart service platformand professional service team, improves service quality and accelerates service demand response.
2. Channel
The Company carries out defined management of domestic channels, insists on value integrationdirection of factories and dealers, continually adds quantity of shops and optimizes dealers and shopsmanagement system and digital and smart management to improve marketing capacity of dealers andsingle shop output. The Company concurrently adds input to e-commerce platforms and makes moreefforts in drawing online attention and development of new customers, so as to promote online and offlinecollaborative development.
3. Research and Development
The Company continues to implement the R&D project manager system in depth, focuses on theresearch on the application of the Internet of vehicles technology and the research on the core technologyof the industry, and at the same time increases the project investment in the application of the R&D results,to actively promote the transformation of the results.
4. Marketing
The Company continually explores brand publicity strategy in the new online traffic era, improves themarketing capacity of dealers in new flow era and takes adjustment of product structure as marketingpoint to increase marketing strength of best selling products.
5. Digital and smart project
The Company continues to promote the construction of digital and intelligent projects, empower allbusiness units, and focus on promoting the iterative launch of systems in the three major areas ofmanufacturing, marketing and information. At the same time, the Company continuously strengthen itsability to "raise data, manage data, and use data", and establishes data-driven management capabilities.
6. Development of international market
The Company increased input, firmly develops international market with localization strategy,focuses on main markets and realizes collaborative development between key OEM customers andindependent brand business; actively promotes overseas localization construction and internationalmanufacturing system upgrading, and builds core competitive advantages for the global markets.
7. Human resources
The Company further optimizes the organizational level, clarifies functions and responsibilities, andfully implements the application of performance results in training, recruitment & promotion, incentives,and other areas; strengthens cultivation of technicians, improves training and development system ofskilled personnel, and improves professional development path of skilled personnel related toremuneration distribution.
8. Supply
The Company pushes ahead with supplier optimization and empowerment, and creates a high-quality supplier base through quality supplier introduction, graded evaluation, technical consultation, andmanagement assistance; continuously strengthens the localization of supply chain, stimulating excellentsuppliers to establish factories, offices, or third-party transit warehouses in or near the Company'sproduction bases, in order to improve supply safety and speed; the Supply Chain ManagementDepartment collaborates with the R&D, quality control and production departments to create a partsplatform, jointly participating in the design, development, and production process of key components, andencouraging the use of new materials and new processes to cut down the procurement cost withoutcompromising quality.(IV) Potential risks
√Applicable ?Not applicable
1. More intensive competition in the industry
The competition in the electric two-wheel vehicle industry is more intensive increasingly. In recentyears, with regulatory development of industry and optimization of competition order, many smallenterprises withdraw from the market, and industry competition mainly exists between leading enterprises.This is a new situation. These enterprises continue to reduce sales prices while improving productperformance and expanding service coverage, greatly increasing the difficulty of competition. If amanufacturer fails to promptly launch high-cost performance products and offer high-quality servicesaccording to market demand, it may lose original competition advantage and industrial position. Atpresent, the Company has maintained a leading position in the industry by virtue of its capabilities ofstrong product development, technological innovation, excellent cost control and quality management,good brand image and user reputation, nationwide marketing channels and service networks and othercompetitive advantages. The Company will continually focus on users’ demand, carry out differentialcompetition, realize smart and high-end products by application of Internet of vehicles technologies,development of industrial core hardware, improve production efficiency and defined operation throughdigital and smart upgrading, development and cost reduction and raise its cost competition advantage.
2. Product R&D risks
With the improvement of consumers' consumption awareness and the trend of consumptionupgrading becoming more and more obvious, consumers' demand for electric two-wheeled vehiclespresents the characteristics of fashion, intelligence and networking, which requires electric two-wheeledvehicle manufacturers to continuously research and predict the trend of consumer demand, continue tocarry out product innovation and technology research and development, and launch new models withnew shapes and new functions to meet the constantly upgraded consumer needs of users. Failure tomeet consumption expectations will have a negative impact on performance. In addition, the R&D of newmodels requires a certain period of time. If a manufacturer takes the lead in developing similar productsand locks the relevant patents, it may put pressure on the R&D of other manufacturers. The Companyalways regards R&D and product innovation as the main means to enhance its product competitivenessand achieve long-term development. Starting from the needs of users, after years of continuous R&Dinvestment and exploration, it has acquired the relevant capabilities of accurate user demand positioning,excellent technology and innovation, which makes its products popular among consumers. The Companywill continue to improve the APDS process with a user-centered R&D strategy, and enhance theCompany's technological capabilities to reduce R&D risks.
3. Management risks to dealers
The main sales model of the Company's products is distribution. Dealers are not only the Company'sdirect customers, but also important windows for the Company to show its brand image and enhance itsbrand reputation to consumers in its distribution areas. The operating capabilities, risk appetite andwillingness to work hard of the dealers have a greater impact on the sales of the Company's products inthe relevant distribution areas. If the dealer's operation method and service quality are contrary to theCompany's business purpose or the dealer's understanding of the Company's management philosophydeviates, it may have an adverse impact on the Company's business performance and brand image. Inthis regard, the Company continuously improves the dealer management system, strictly implements themanagement standards for dealer access, training, assessment and exit, etc., and establishes ascorecards and dynamic channel management system to “retain winners and retire losers”, to stimulate
the dealer’ working enthusiasm, improve their operation capabilities and ensure the vitality and healthydevelopment of the Company's channel system.
4. Material price fluctuation risks
The purchase price of raw materials in the industry is affected by factors such as macro trends andindustrial policies, and there is the possibility of fluctuations, which increases the difficulty of controllingpurchase costs and may have a certain impact on the operating performance of production enterprises.In this regard, the Company has built and will continue to improve a high-quality and efficient supply chainsystem, set up a special supplier quality management department, and select and integrate global supplychain resources. The Company invested in key parts suppliers to ensure the safety of the supply of keyparts; at the same time, for products with a clear price increase, the Company adopts the method oflocking the price in advance and locking the purchase volume to avoid operating risks caused by sharpprice increases. The Company has established close strategic cooperative relations with major partssuppliers, which is conducive to achieving sufficient supply of raw materials and stable prices. At thesame time, the Company upgrades and optimizes the supply chain platform through the construction ofdigital intelligence, realizes the deep synergy between the Company's manufacturing process and thesupply chain system, and hedges the cost control pressure caused by rising raw materials with theimprovement of production efficiency.(V) Other?Applicable √Not applicableVII. Explanation for Non-disclosure in Accordance with The Accounting Standard due to BeingNot Applicable to The Provisions of The Standard or State Secret and Business Secrete and OtherSpecial Reasons?Applicable √Not applicable
Section 4 Corporate GovernanceI. Related Information about Corporate Governance
√Applicable ?Not applicable
In accordance with the Company Law, Securities Law, Code of Corporate Governance for ListedCompanies, Rules Governing the Listing of Stocks on Shanghai Stock Exchange and other laws andregulations, and based on its actual situation, the Company has constantly improved its corporategovernance structure and internal control system to further enhance its governance level.The general meeting of shareholders, board of directors, board of supervisors and managers havetheir respective clear rights and responsibilities, and they perform according to their duties andspecifications. Four specialized committees including the Strategy and Development Committee, AuditCommittee, Nomination Committee, Remuneration and Appraisal Committee have been set up under theBoard of Directors, and each specific committee does its work according to its duties. In 2022, theCompany held 4 general meetings of Shareholders, 9 meetings of board of directors and 8 meetings ofboard of supervisors, reviewing the important matters such as external guarantees, related transactions,external investments and convertible bonds. The independent directors of the Company seriouslyperformed duties, expressed independent opinions on relevant matters and practically maintained legalinterest of all shareholders in accordance with the requirements of relevant laws and regulations and theArticles of Association. Concurrently, the Company continues to amend and improve relevant regulations,which are effectively executed; The Company has established impartial, transparent performanceevaluation standard and incentive and restriction mechanism for senior executives, and has madecomprehensive evaluation with reference to the operation targets of the Company and its business units,individual ability and performance examination.The Company continually improves information disclosure quality according to the provisions of theArticles of Association, Management Method on Information Disclosure and other rules. The Companyinsists on combination of statutory information disclosure and voluntary information disclosure and ensurethat all shareholders and other stakeholders could obtain the Company’s information equally. During thereporting period, the Company disclosed 99 temporary reports and 4 regular reports, and preparedprinted regulars reports which were kept in the Company’s securities affairs management department forinvestors’ reference. The Company also strictly executed the Insider Registration and Filing System to
enhance the confidentiality of insider information, maintain the openness, fairness and justness ofinformation disclosure and protect the legitimate rights and interests of investors.
The Company attaches great importance to the management of investor relations, and keeps intouch with investors and industry researchers through diverse channels such as Shanghai StockExchange E Interaction Platform, investor hotline, e-mail, website column, online meetings and on-sitereception, so as to enable investors to keep abreast of company information. During the reporting period,the Company organized a number of performance briefings and investor research activities, and activelytook part in strategy conferences organized by securities and investment institutes, thus not only buildingan effective communication bridge between investors and listed companies, but also understandinginvestors’ demands and expectations, guiding and standardizing the management of investor relationsand supporting quality improvement.
Indicate whether there was any material incompliance with the applicable laws and regulations, aswell as the CSRC’s requirements in corporate governance. If yes, please explain.?Applicable √Not applicableII. Specific Measures Taken by the Controlling Shareholder and Actual Controller to Guarantee theAsset, Personnel, Financial, Organizational and Business Independence of the Company, as wellas Solutions, Progress and Subsequent Plans when the Company’s Independence Is Intervened
√Applicable ?Not applicable
The Company has been operating strictly according to the Company Law, Articles of Associationand other relevant regulations. The Company is independent of the controlling shareholder, the actualcontroller and other enterprises under its control in assets, personnel, finance, organization, business,etc. The Company has a complete business system and the ability to operate independently in the market.The concrete situation is as follows:
(I) Independent assets
The Company has an independent and complete production, procurement and sales system andsupporting facilities for production and operation, and legally owns fixed assets (e.g., plants andequipment) and intangible assets (e.g., land use rights, trademarks and patents) related to productionand operation. There is no illegal occupation of the Company’s funds, assets and other resources by thecontrolling shareholder or its affiliates, and there are no unclear property rights in the business systemsand major assets related to operation.
(II) Independent personnel
The Company has set up an independent human resource department, and has formulated the rulesrelated to labor, personnel and salary. All of the Company’s senior executives hold full-time positions inand receive remunerations from the Company, and none of them hold a position other than director andsupervisor in the controlling shareholder or actual controller of the Company or any other enterprise undercontrol thereof. The Company is absolutely independent from its controlling shareholder and actualcontroller, and other enterprises under their control in terms of labor, personnel and salary management.
(III) Independent finance
The Company has set up an independent finance department, and established a set of independent,complete and normative financial accounting system, accounting management system and internalcontrol system. The Company independently opens banking accounts, pays tax in accordance with thelaw, and does not use any joint account with the controlling shareholder, actual controller and otherenterprises under control thereof.
(IV) Independent organization
The Company has independent production, operation and office places. According to law, theCompany has set the general meeting of shareholders as the highest authority, the board of directors asthe decision-making body and the board of supervisors as the supervisory body, built an independentorganizational structure suitable for its own development, and formulated reasonable and completeposition duties and internal management rules. Each department independently operates according tothe stated responsibilities. There is no shareholder entity or any other entity or individual that interfereswith the establishment of the Company’s organization, and the Company is completely independent ofthe controlling shareholder, actual controller and other enterprises under control thereof.
(V) Independent businessThe Company owns independent and complete purchasing, production, sales and business systems,and has independent management decision-making rights, independently organizes its production andmanagement according to operation plans, independently carries out business, which is independent withthe controlling shareholder, actual controller and other enterprises under control thereof. The Companydoes not have horizontal competition or unconscionable related transaction with the controllingshareholder, actual controller and other enterprises under control thereof.
Indicate whether the controlling shareholder, the actual controller, or any entity under their control isengaged in the same or similar business with the Company. Explain the impact of horizontal competitionor any significant change to horizontal competition on the Company, solutions taken, progress andsubsequent plans.?Applicable √Not applicableIII. Introduction to General Meetings of Shareholders
| Meeting | Date | Index to disclosed resolutions | Disclosure date | Resolutions |
| Annual general meeting of shareholders in 2021 | May 6, 2022 | www.sse.com.cn | May 7, 2022 | Reviewed and adopted the Proposal on the Work Report of the Board of Directors in 2021, the Proposal on the Work Report of the Board of Supervisors in 2021, the Proposal on the Final Financial Report of 2021, the Proposal on the Plan for Profit Distribution and Capitalization of Capital Reserves in 2021, the Proposal on the Annual Report of 2021 and its Summary, the Proposal on Use of Idle Self-owned Fund for Cash Management, the Proposal on Provision of Guarantee for Some Subsidiaries, the Proposal on Applying for Comprehensive Credit Line to Bank in 2022, the Proposal on the Work Report of Independent Directors in 2021, the Proposal on the Remuneration of Directors and Senior Executives in 2021 and Remuneration Program for 2022, the Proposal on the Remuneration of Supervisors in 2021 and Remuneration Program for 2022, the Proposal on Changing the Registered Capital and Amending the Articles of Association, the Proposal on Terminating Some investment projects with raised funds and Permanently Injecting Remaining Raised Funds into Working Capital, and the Proposal on Purchasing Liability Insurance for the Company and its Directors, Supervisors and Senior Executives. |
| First extraordinary general meeting of shareholders in 2022 | July 8, 2022 | www.sse.com.cn | July 9, 2022 | Reviewed and adopted the Proposal on Changing the Registered Capital and Amending the Articles of Association |
| Second extraordinary general meeting of shareholder | August 5, 2022 | www.sse.com.cn | August, 6, 2022 | Reviewed and adopted the Proposal on Meeting the Conditions for Public Issuance of Convertible Bonds, the Proposal on the Plan for Public Issuance of Convertible Bonds, the Proposal on the Advance Scheme for Public |
| s in 2022 | Issuance of Convertible Bonds, the Proposal on the Feasibility Analysis Report on Use of the Funds Raised by Public Issuance of Convertible Bonds, the Proposal on Formulating the Rules of AIMA Technology Group Co., Ltd. for Meetings of Convertible Bond Holders, the Proposal on Diluting Immediate Returns, Taking Filling Measures and Fulfilling Commitments of Relevant Subjects by Public Issuance of Convertible Bonds, the Proposal on Making the Shareholders’ Return Plan of AIMA Technology Group Co., Ltd. for the Next Three Years (2022-2024), the Proposal on the Report on Use of Previously Raised Funds, the Proposal on Requesting the General Meeting of Shareholders to Authorize the Board of Directors to Handle the Specific Matters Concerning the Public Issuance of Convertible Bonds, the Proposal on Revising the Management Rules of AIMA Technology Group Co., Ltd. for Special Deposit and Use of Raised Funds, the Proposal on Changing the Company’s Registered Capital and Amending the Articles of Association, and the Proposal on Continuing the Employment of the Financial Audit Body and Internal Control Audit Body for 2022. | |||
| Third extraordinary general meeting of shareholders in 2022 | September 9, 2022 | www.sse.com.cn | September 10, 2022 | Reviewed and adopted the Proposal on Changing the Registered Capital and Amending the Articles of Association, the Proposal on Electing Non-independent Directors of the Fifth Board of Directors, the Proposal on Electing Independent Directors of the Fifth Board of Directors, and the Proposal on Electing Non-employee Representative Supervisors of the Fifth Board of Supervisors. |
Extraordinary general meetings of shareholders convened at the request of preference shareholders withresumed voting rights:
?Applicable √Not applicableDescription of general meetings of shareholders
√Applicable ?Not applicable
IV. Situation of Directors, Supervisors and Senior Executives(I) Shareholding changes and remunerations of incumbent directors, supervisors and senior executives and those who resigned before the end oftheir tenures during the reporting period
√Applicable ?Not applicable
In: Share
| Name | Office title (note) | Gender | Age | Start of tenure | End of tenure | Opening shareholding (share) | Closing shareholding (share) | Change in shareholding in the reporting period (share) | Reason for change | Total amount of remuneration pre-tax acquired from the Company in the reporting period (Yuan’0000) | Whether acquiring remuneration in the related parties of the Company |
| Zhang Jian | Chairman of the Board, GM | M | 53 | September 27, 1999 | September 8, 2025 | 282,317,000 | 395,243,800 | 112,926,800 | Capitalization of capital reserves | 360.73 | No |
| Duan Hua | Vice Chairman of the Board, vice GM | F | 54 | September 13, 2013 | September 8, 2025 | 360.73 | No | ||||
| Zhang Gege | Director | F | 29 | September 13, 2013 | September 8, 2025 | 60.73 | No | ||||
| Peng Wei | Director | M | 52 | August 26, 2009 | September 8, 2025 | 3,150,000 | 4,147,840 | 997,840 | Capitalization of capital reserves and share reduction for personal reasons | 85.59 | No |
| Gao Hui | Director, vice GM | M | 44 | September 9, 2022 | September 8, 2025 | 1,680,000 | 1,680,000 | Granting of restricted | 470.83 | No |
| stock and capitalization of capital reserves | |||||||||||
| Wang Chunyan | Director, vice GM, secretary of board of director | M | 43 | January 24, 2018 | September 8, 2025 | 141.73 | No | ||||
| Sun Minggui | Independent director | M | 59 | September 9, 2022 | September 8, 2025 | 2.48 | No | ||||
| Liu Junfeng | Independent director | M | 54 | September 9, 2022 | September 8, 2025 | 2.48 | No | ||||
| Ma Junsheng | Independent director | M | 47 | September 9, 2022 | September 8, 2025 | 2.48 | No | ||||
| Xu Peng | Chairman of board of supervisors | M | 33 | September 13, 2016 | September 8, 2025 | 35.57 | No | ||||
| Li Yan | Employee supervisor | F | 39 | May 7, 2018 | September 8, 2025 | 77.23 | No | ||||
| Liu Tingxu | Supervisor | F | 41 | September 9, 2022 | September 8, 2025 | 25.97 | No | ||||
| Li Yubao | Vice GM | M | 47 | January 24, 2018 | September 8, 2025 | 288.83 | No | ||||
| Zheng Hui | Vice GM, Chief Financial Officer | F | 41 | July 21, 2021 | September 8, 2025 | 560,000 | 560,000 | Granting of restricted stock and capitalization of capital reserves | 234.81 | No | |
| Luo Qingyi | Vice GM | M | 43 | September 9, 2022 | September 8, 2025 | 840,000 | 840,000 | Granting of restricted stock and capitalization of capital | 357.66 | No |
| reserves | |||||||||||
| Liu Jianxin (Left office) | Director | M | 56 | August 26, 2009 | September 9, 2022 | 3,150,000 | 3,611,080 | 461,080 | Capitalization of capital reserves and share reduction for personal reasons | No | |
| Fang Hao (Left office) | Director | M | 48 | November 28, 2017 | July 7, 2022 | Yes | |||||
| Wang Aijian (Left office) | Independent director | F | 68 | April 16, 2018 | September 9, 2022 | 5.55 | No | ||||
| Sun Guangliang (Left office) | Independent director | M | 59 | January 24, 2018 | September 9, 2022 | 5.55 | No | ||||
| Xu Haoran (Left office) | Independent director | M | 53 | January 24, 2018 | September 9, 2022 | 5.55 | No | ||||
| Wu Lyubo (Left office) | Supervisor | M | 54 | August 26, 2009 | September 9, 2022 | No | |||||
| Hu Yupeng (Left office) | Vice GM | M | 43 | May 14, 2020 | September 9, 2022 | 280,000 | 280,000 | Granting of restricted stock and capitalization of capital reserves | 104.18 | No | |
| Total | / | / | / | / | / | 288,617,000 | 406,362,720 | 117,745,720 | / | 2,628.68 | / |
| Name | Main working experience |
| Zhang Jian | Former executive director of Tianjin Qiyu Interactive Technology Co., Ltd., former director of Tianjin Sanshang Investment Management Co., Ltd. Current Chairman of the Board and general manager of the Company. |
| Duan Hua | Former vice general manger of Aima Technology. Current vice Chairman of the Board, vice general manger. |
| Zhang Gege | Former general manager assistant, former secretary of Chairman of the Board of the Company. Current director of the Company, executive director and general manager of Suiwanwan, executive partner of Changxing Dingai. |
| Peng Wei | Former general manager of Tianjin Bond Fushida Electric Vehicle Co., Ltd., former general manager of Tianjin Sports. Current director of the Company. |
| Gao Hui | Former president of the Special Vehicle Department and International Business Department of the Company. Current director, vice general manager, president of the Domestic Business Department and general manager of the International Business Department of the Company. |
| Wang Chunyan | Former lecturer of Shanghai Ocean University, former Chairman of the Board and president of Tianjin Sanshang Investment Management Co., Ltd. Current director, vice general manager, secretary of board of directors of the Company. |
| Sun Minggui | Former teaching assistant, lecturer, associate professor and professor of Lanzhou University. Current independent director of the Company, and current professor and doctoral supervisor of Glorious Sun School of Business and Management, Donghua University. |
| Liu Junfeng | Former vice general manager and board secretary of Tasly Pharmaceutical Group Co., Ltd., and former vice general manager and board secretary of Masterwork Group Co., Ltd. Current independent director of the Company, and current full-time vice chairman and secretary-general of Tianjin Association for Public Companies. |
| Ma Junsheng | Current independent director of the Company, current director of the Financial Research Institute of Shanghai Pudong Financial Promotion Association, current training partner of Shandong Paramount Certified Public Accountants, current researcher of the Intelligent Finance Research Institute of Shanghai National Accounting Institute, current independent director of Shanghai Guohui Environmental Technology Co., Ltd., current independent director of Shanghai CN Science and Technology Co., Ltd., and current external director of Shanghai Yangpu Trading (Group) Co., Ltd. |
| Xu Peng | Former Chairman of the Board of Tianjin Bond Fushida Electric Vehicle Co., Ltd., former general manager assistant of Tianjin Sanshang Investment Management Co., Ltd. Current chairman of board of supervisors of the Company. |
| Li Yan | Former section chief of Supplier Management Section of Procurement Department of the Company, former secretary of vice Chairman of the Board, former director of Improvement Office, Brand Management Center, former director of office of vice Chairman of the Board. Current employee supervisor, product manager of R & D Department of the Company. |
| Liu Tingxu | Former section chief of the Procurement Department and deputy director of the Brand Center of the Company. Current supervisor and secretary to deputy chairman of the Company. |
| Li Yubao | Former director of Procurement Department of Tianjin New Times Vehicle Industry Co., Ltd., former director of Procurement Department of Tianjin Taimei Bicycle Co., Ltd., former director of Procurement Department of the Company. Current vice general manager of the Company. |
| Zheng Hui | Former financial manager of Product Company of Midea Group Co., Ltd., former vice general manager, Chief Financial Officer of Meizhi Photoelectric Technology Co., Ltd., former vice general manager of Foshan Hange E-commerce Technology Co., Ltd., former Senior Financial Director of Foshan Yunmi Electric Technology Co., Ltd., and former Senior Financial Director of the Company. Current vice general manager |
| and Chief Financial Officer of the Company. | |
| Luo Qingyi | Former administrative vice general manager of Ningbo Geely Royal Engine Components Co., Ltd. Current vice general manager, president assistant and Chief Talent Officer of the Company. |
Description of other situation
√Applicable ?Not applicable
1. On July 7, 2022, Fang Hao, director of the Company, resigned for personal reasons.
2. On September 9, 2022, the Proposal on Electing Non-independent Directors of the Fifth Board of Directors, the Proposal on Electing IndependentDirectors of the Fifth Board of Directors, and the Proposal on Electing Non-employee Representative Supervisors of the Fifth Board of Supervisors werereviewed and adopted at the third extraordinary general meeting of shareholders in 2022. Accordingly, Gao Hui and Wang Chunyan were elected as non-independent directors, Liu Junfeng, Sun Minggui and Ma Junsheng were elected as independent directors, and Liu Tingxu was elected as a non-employeesupervisor; the former non-independent director Liu Jianxin, former independent directors Wang Aijian, Xu Haoran and Sun Guangliang, and former non-employee supervisor Wu Lyubo retired at the expiration of their respective term.
3. On September 9, 2022, the Proposal on Appointing Vice General Managers was reviewed and adopted at the first meeting of the fifth Board of Directorsof the Company. Accordingly, Gao Hui and Luo Qingyi were appointed as new vice general managers of the Company; Hu Yupeng, former vice generalmanager, left his post at the expiration of his term.
(II) Incumbency of current and resigned directors, supervisors and senior executives during thereporting period
1. Position at the shareholder entity
√Applicable ?Not applicable
| Name of in-service staff | Name of shareholding entity | Position held in shareholder entity | Starting date of tenure | Ending date of tenure |
| Fang Hao | CITIC Securities Investment Co., Ltd. | Director, GM | August 2017 | |
| Statement of the position held in shareholding entity | CITIC Investment and its concerted actors Goldstone Zhiyu, Goldstone Haofeng and Three Gorges Goldstone reduced their shares in AIMA Technology due to their own fund demands. On July 25, 2022, the above shareholders no longer held more than 5% of shares in the Company. | |||
2. Statement of the position held in other entities
√Applicable ?Not applicable
| Name of in-service staff | Name of other entities | Position held in other entities | Starting date of tenure | Ending date of tenure |
| Zhang Jian | Tianjin Jiema Electric Technology Co., Ltd. | Director | January 2019 | |
| Zhang Jian | Zhejiang Today Sunshine New Energy Vehicle Co., Ltd. | Director | May 2022 | |
| Zhang Gege | Changxing Dingai Investment Management Partnership (Limited Partnership) | Managing partner | December 2017 | |
| Gao Hui | Wuxi Lyuling Electric Technology Co., Ltd. | Executive director | May 2015 | |
| Liu Junfeng | Tianjin Association for Public Companies | Full-time vice president and secretary general | August 2021 | |
| Sun Minggui | Glorious Sun School of Business and Management, Donghua University | Professor, doctoral supervisor | February 2004 | |
| Ma Junsheng | Shanghai Guohui Environmental Technology Co., Ltd. | Independent director | October 2020 | |
| Ma Junsheng | Luoyang Xiyuan State-owned Capital Investment Co., Ltd. | Director | December 2021 | June 2022 |
| Ma Junsheng | Shanghai CN Science and Technology Co., Ltd. | Independent director | February 2022 | |
| Ma Junsheng | Shanghai Yangpu Trading (Group) Co., Ltd. | External director | January 2022 | |
| Luo Qingyi | Ningbo Hengai Enterprise Management Partnership (Limited Partnership) | Executive partner | December 2021 | |
| Liu Jianxin (Left office) | Tianjin Sanshang Investment Management Co., Ltd. | Supervisor | February 2017 | |
| Fang Hao (Left office) | CITIC Industry Investment Fund Management Co., Ltd. | Director | June 2018 | |
| Fang Hao (Left | Zhejiang Huayou New Energy | Director | May 2019 | August |
| office) | Technology Co., Ltd. | 2022 | ||
| Fang Hao (Left office) | China Investment and Financing Guarantee Co., Ltd. | Director | November 2019 | July 2022 |
| Fang Hao (Left office) | Zhejiang Xingxing Cold Chain Integration Co., Ltd. | Director | December 2019 | |
| Fang Hao (Left office) | China National Gold Group Gold Jewellery Co., Ltd. | Director | October 2017 | |
| Fang Hao (Left office) | Shenzhen BGI Smart Manufacture Technology Co., Ltd. | Director | June 2020 | |
| Fang Hao (Left office) | CSI Capricornus Limited | Director | ||
| Fang Hao (Left office) | Jupiter Connection Limited | Director | ||
| Fang Hao (Left office) | Neptune Connection Limited | Director | ||
| Fang Hao (Left office) | Uranus Connection Limited | Director | ||
| Fang Hao (Left office) | Pluto Connection Limited | Director | ||
| Fang Hao (Left office) | CS Regal Holding Limited | Director | ||
| Fang Hao (Left office) | Sailing International Investment Fund (Shanghai) Co., Ltd. | Director | June 2021 | |
| Fang Hao (Left office) | Xi’an Yisiwei Material Technology Co., Ltd. | Director | July 2021 | March 2023 |
| Fang Hao (Left office) | Guangzheng Lingxiu Investment Co., Ltd. | Executive director, GM | December 2020 | |
| Fang Hao (Left office) | Hunan Steel Group Co., Ltd. | Director | October 2021 | October 2022 |
| Fang Hao (Left office) | Citron PE Holdings Limited | Director | ||
| Wang Aijian (Left office) | Northern International Trust Co., Ltd. | Director | December 2015 | December 2022 |
| Wang Aijian (Left office) | TASLY PHARMACEUTICAL GROUP CO., LTD. | Independent director | June 2021 | |
| Sun Guangliang (Left office) | Dongxing Securities Corporation Limited | Independent director | December 2017 | |
| Sun Guangliang (Left office) | CITIC Metal Co., Ltd. | Independent director | September 2020 | |
| Sun Guangliang (Left office) | Beijing Huatang Law Firm | Director | January 1998 | |
| Xu Haoran (Left office) | Beijing Youshi Capital Management Co., Ltd. | Vice chairman of the board | September 2019 | |
| Xu Haoran (Left office) | Kunming Mengtang Technology Co., Ltd. | Director | December 2015 | |
| Xu Haoran (Left office) | Beijing Gaopeng Tianxia Investment Management Co., | Director | July 2014 |
| Ltd. | ||||
| Xu Haoran (Left office) | Nanjing Wudengdeng Media Advertising Co., Ltd. | Supervisor | March 2004 | May 2022 |
| Xu Haoran (Left office) | Chongqing Yunhuan Cultural Industry (Group) Co., Ltd. | Director | October 2018 | |
| Xu Haoran (Left office) | TOJOY Holding Group Co., Ltd. | Director | September 2020 | |
| Xu Haoran (Left office) | Guangzhou Dingda Educational Information Consultation Co., Ltd. | Supervisor | August 2008 | |
| Xu Haoran (Left office) | Yonghu Cross-border E-commerce Co., Ltd. | Chairman of the board | July 2018 | |
| Xu Haoran (Left office) | Beijing Huizhi Huaxia Business Management Consultation Co., Ltd. | Supervisor | May 2021 | |
| Xu Haoran (Left office) | Chongqing Yunyixuan Cultural Technology Co., Ltd. | Director | June 2017 | |
| Xu Haoran (Left office) | Qinzhi Digital Technology Co., Ltd. | Director | July 2015 | |
| Xu Haoran (Left office) | Far East Holding Group Co., Ltd. | Supervisor | January 2019 | |
| Xu Haoran (Left office) | TOJOY (Qingdao) Financial Technology Group Co., Ltd. | Executive director | October 2019 | |
| Description of taking office in other organizations | N/A | |||
(III) Remunerations of directors, supervisors and senior executives
√Applicable ?Not applicable
| Decision-making process for the remuneration of directors, supervisors and senior executives | The Remuneration and Appraisal Committee of the board of directors brings forth a proposal to the board of directors about remuneration of directors and senior executives of the Company. The board of directors decides remuneration of management, reward and punishment affairs, and general meeting of shareholders decides remuneration affairs of directors and supervisors. |
| Basis for deciding the remuneration of directors, supervisors and senior executives | The Company determines the remuneration of directors, supervisors and senior executives according to the Articles of Association and relevant rules. |
| Actual payment of remuneration for directors, supervisors and senior executives | In 2022, the Company’s annual allowance for each independent director was RMB 80,000 (tax-inclusive); non-independent directors and supervisors had no allowances; directors, supervisors and senior executives who take office in the Company were paid based on their respective positions and duties and according to the Company’s relevant remuneration and performance appraisal management rules. |
| Total remuneration actually obtained by all directors, supervisors and senior executives at the end of reporting period | RMB 26.2868 million |
(IV) Changes in directors, supervisors and senior executives
√Applicable ?Not applicable
| Name | Position | Change | Reason of change |
| Gao Hui | Director, vice GM | Elected | Election and appointment at expiration of office terms |
| Wang Chunyan | Director | Elected | Election at expiration of office terms |
| Sun Minggui | Independent director | Elected | Election at expiration of office terms |
| Liu Junfeng | Independent director | Elected | Election at expiration of office terms |
| Ma Junsheng | Independent director | Elected | Election at expiration of office terms |
| Liu Tingxu | Supervisor | Elected | Election at expiration of office terms |
| Luo Qingyi | Vice GM | Appointed | Appointment at expiration of office terms |
| Liu Jianxin | Director | Left office | Leave office at expiration of office terms |
| Fang Hao | Director | Left office | Leave office due to personal reasons |
| Wang Aijian | Independent director | Left office | Leave office at expiration of office terms |
| Sun Guangliang | Independent director | Left office | Leave office at expiration of office terms |
| Xu Haoran | Independent director | Left office | Leave office at expiration of office terms |
| Wu Lyubo | Supervisor | Left office | Leave office at expiration of office terms |
| Hu Yupeng | Vice GM | Left office | Leave office at expiration of office terms |
(V) Punishments imposed by securities regulators in the past three years?Applicable √Not applicable(VI) Other?Applicable √Not applicableV. Board Meetings Convened during the Reporting Period
| Meeting | Convening date | Resolutions |
| 25th meeting of the fourth board of directors | April 14, 2022 | Reviewed and adopted the Proposal on the Work Report of the Board of Directors in 2021, the Proposal on the Work Report of the General Manager in 2021, the Proposal on the Final Financial Report of 2021, the Proposal on the Plan for Profit Distribution and Capitalization of Capital Reserves in 2021, the Proposal on the Annual Report of 2021 and its Summary, the Proposal on the Special Report on Deposit and Use of Raised Funds in 2021, the Proposal on Use of Idle Self-owned Fund for Cash Management, the Proposal on Provision of Guarantee for Some Subsidiaries, the Proposal on Applying for Comprehensive Credit Line to Bank in 2022, the Proposal on the Work Report of Independent Directors in 2021, the Proposal on the Performance Report of the Audit Committee of the Board of Directors for 2021, the Proposal on the Remuneration of Directors and Senior Executives in 2021 and Remuneration Program for 2022, the Proposal on Estimated Daily Related Transactions of the Company and its Subsidiaries in 2022, the Proposal on Changing the Registered Capital and Amending the Articles of Association, the Proposal on Terminating Some |
| investment projects with raised funds and Permanently Injecting Remaining Raised Funds into Working Capital, the Proposal on Purchasing Liability Insurance for the Company and its Directors, Supervisors and Senior Executives., the Proposal on Formulating the Management Rules for External Information Reporting, the Proposal on Formulating Donation Management Rules, the Proposal on Formulating Subsidiary Management Rules, the Proposal on Granting Reserved Restricted Stock to Incentive Objects, the Proposal on Repurchase and Cancellation of Restricted Stock Granted at the First Time under the Restricted Stock Incentive Plan 2021, and the Proposal on Convening the Annual General Meeting of Shareholders in 2021. | ||
| 26th meeting of the fourth board of directors | April 28, 2022 | Reviewed and adopted the Proposal on the First Quarter Report of 2022. |
| 27th meeting of the fourth board of directors | June 21, 2022 | Reviewed and adopted the Proposal on Changing the Registered Capital and Amending the Articles of Association, the Proposal on Continuing to Use Part of the Temporarily Idle Raised Funds for Cash Management, and the Proposal on Convening the First Extraordinary General Meeting of Shareholders in 2022 |
| 28th meeting of the fourth board of directors | July 5, 2022 | Reviewed and adopted the Proposal on the Company’s Intention to Sign the Investment Agreement with the People’s Government of Guigang Municipality |
| 29th meeting of the fourth board of directors | July 11, 2022 | Reviewed and adopted the Proposal on Meeting the Conditions for Public Issuance of Convertible Bonds, the Proposal on the Plan for Public Issuance of Convertible Bonds, the Proposal on the Advance Scheme for Public Issuance of Convertible Bonds, the Proposal on the Feasibility Analysis Report on Use of the Funds Raised by Public Issuance of Convertible Bonds, the Proposal on Formulating the Rules of AIMA Technology Group Co., Ltd. for Meetings of Convertible Bond Holders, the Proposal on Diluting Immediate Returns, Taking Filling Measures and Fulfilling Commitments of Relevant Subjects by Public Issuance of Convertible Bonds, the Proposal on Making the Shareholders’ Return Plan of AIMA Technology Group Co., Ltd. for the Next Three Years (2022-2024), the Proposal on the Report on Use of Previously Raised Funds, the Proposal on Requesting the General Meeting of Shareholders to Authorize the Board of Directors to Handle the Specific Matters Concerning the Public Issuance of Convertible Bonds, the Proposal on Revising the Management Rules of AIMA Technology Group Co., Ltd. for Special Deposit and Use of Raised Funds, the Proposal on Changing the Company’s Registered Capital and Amending the Articles of Association, the Proposal on Continuing the Employment of the Financial Audit Body and Internal Control Audit Body for 2022, and the Proposal on Convening the Second Extraordinary General Meeting of Shareholders in 2022 |
| 30th meeting of the fourth board of directors | August 24, 2022 | Reviewed and adopted the Proposal on the Semi-annual Report of 2022 and its Summary, the Proposal on the Special Report on Deposit and Use of Raised Funds in the First Half of 2022, the Proposal on Electing Non-independent Directors of the Fifth Board of Directors, the Proposal on Electing Independent Directors of the Fifth Board of Directors, the Proposal on Changing the Registered Capital and Amending the Articles of Association, and the Proposal on Convening the Third Extraordinary General Meeting of Shareholders in 2022. |
| 1st meeting of the fifth board of directors | September 9, 2022 |
Reviewed and adopted the Proposal on Electing the Chairman andVice Chairman of the Fifth Board of Directors, the Proposal on ElectingMembers of Special Committees of the Fifth Board of Directors, the
| Proposal on Appointing the General Manager, the Proposal on Appointing the Chief Financial Officer, the Proposal on Appointing the Secretary of the Board of Directors, the Proposal on Appointing Vice General Managers, and the Proposal on Appointing the Securities Affairs Representative. | ||
| 2nd meeting of the fifth board of directors | October 28, 2022 | Reviewed and adopted the Proposal on the Third Quarter Report of 2022. |
| 3rd meeting of the fifth board of directors | December 29, 2022 | Reviewed and adopted the Proposal on Estimated Daily Related Transactions of the Company and its Subsidiaries in 2023, and the Proposal on Changing the Securities Affairs Representative. |
VI. Performance of Duty by Directors(I) Attendance of directors at board meetings and general meetings of shareholders during thereporting period
| Name of director | Independent director or not | Attendance at board meetings | Attendance at general meetings of shareholders | |||||
| Total number of board meetings the director was supposed to attend | Board meetings attended on site | Board meetings attended by way of telecommunication | Board meetings Attended through a proxy | Absence | The director failed to attend two consecutive board meetings (yes/no) | Total number of general meetings of shareholders the director was supposed to attend | ||
| Zhang Jian | No | 9 | 9 | 7 | 0 | 0 | No | 4 |
| Duan Hua | No | 9 | 9 | 7 | 0 | 0 | No | 4 |
| Zhang Gege | No | 9 | 9 | 7 | 0 | 0 | No | 4 |
| Peng Wei | No | 9 | 9 | 7 | 0 | 0 | No | 4 |
| Gao Hui | No | 3 | 3 | 2 | 0 | 0 | No | 0 |
| Wang Chunyan | No | 3 | 3 | 2 | 0 | 0 | No | 0 |
| Sun Minggui | Yes | 3 | 3 | 2 | 0 | 0 | No | 0 |
| Ma Junsheng | Yes | 3 | 3 | 2 | 0 | 0 | No | 0 |
| Liu Junfeng | Yes | 3 | 3 | 2 | 0 | 0 | No | 0 |
| Liu Jianxin | No | 6 | 6 | 5 | 0 | 0 | No | 4 |
| Fang Hao | No | 4 | 4 | 3 | 0 | 0 | No | 2 |
| Wang Aijian | Yes | 6 | 6 | 5 | 0 | 0 | No | 4 |
| Sun Guangliang | Yes | 6 | 6 | 5 | 0 | 0 | No | 4 |
| Xu Haoran | Yes | 6 | 6 | 5 | 0 | 0 | No | 4 |
Explain why any director failed to attend two consecutive board meetings.?Applicable √Not applicable
| Total number of board meetings convened in the reporting period | 9 |
| Of which: on-site meetings | 0 |
| Meetings convened by way of telecommunication | 7 |
| Meetings where on-site attendance and attendance by telecommunication were both allowed | 2 |
(II) Objections raised by directors on matters of the Company?Applicable √Not applicable(III) Other?Applicable √Not applicableVII. Specialized Committees under the Board of Directors
√Applicable ?Not applicable
(1). Members of the specialized committees
| Specialized committee | Members |
| Audit Committee | Ma Junsheng, Zhang Jian, Sun Minggui, Liu Junfeng |
| Nomination Committee | Liu Junfeng, Zhang Jian, Ma Junsheng |
| Remuneration and Appraisal Committee | Sun Minggui, Duan Hua, Liu Junfeng |
| Strategy and Development Committee | Zhang Jian, Sun Minggui, Liu Junfeng, Ma Junsheng |
(2). The Audit Committee held six meetings during the reporting period.
| Convening date | Content of meeting | Important comments and suggestions | Other performance of duties |
| April 7, 2022 | Reviewed the Proposal on the Annual Report of 2021 and its Summary, the Proposal on the Final Financial Report of 2021, the Proposal on the Plan for Profit Distribution and Capitalization of Capital Reserves in 2021, the Proposal on the Special Report on Deposit and Use of Raised Funds in 2021, the Proposal on Use of Idle Self-owned Fund for Cash Management, the Proposal on Estimated Daily Related Transactions of the Company and its Subsidiaries in 2022, and the Proposal on Terminating Some investment projects with raised funds and Permanently Injecting Remaining Raised Funds into Working Capital. | Agree to submit to the board of directors for deliberation | Nil |
| April 26, 2022 | Reviewed the Proposal on the First Quarter Report of 2022. | Agree to submit to the board of directors for deliberation | Nil |
| July 7, 2022 | Reviewed the Proposal on the Report on Use of Previously Raised Funds, and the Proposal on Continuing the Employment of the Financial Audit Body and Internal Control Audit Body for 2022. | Agree to submit to the board of directors for deliberation | Nil |
| August 22, 2022 | Reviewed the Proposal on the Semi-annual Report of 2022 and its Summary, and the Proposal on the Special Report on Deposit and Use of Raised Funds in the First Half of 2022. | Agree to submit to the board of directors for deliberation | Nil |
| October 26, 2022 | Reviewed the Proposal on the Third Quarter Report of 2022. | Agree to submit to the board of directors for | Nil |
| deliberation | |||
| December 29, 2022 | Reviewed the Proposal on Estimated Daily Related Transactions of the Company and its Subsidiaries in 2023. | Agree to submit to the board of directors for deliberation | Nil |
(3). The Nomination Committee held two meetings during the reporting period.
| Convening date | Content of meeting | Important comments and suggestions | Other performance of duties |
| August 22, 2022 | Reviewed the Proposal on Candidates for the Fifth Board of Directors. | Agree to submit to the board of directors for deliberation | Nil |
| September 9, 2022 | Reviewed the Proposal on Electing the Chairman and Vice Chairman and Appointing Senior Executives. | Agree to submit to the board of directors for deliberation | Nil |
(4). The Remuneration and Appraisal Committee held one meeting during the reporting period.
| Convening date | Content of meeting | Important comments and suggestions | Other performance of duties |
| April 7, 2022 | Reviewed the Proposal on the Remuneration of Directors and Senior Executives in 2021 and Remuneration Program for 2022, the Proposal on Granting Reserved Restricted Stock to Incentive Objects, and the Proposal on Repurchase and Cancellation of Restricted Stock Granted at the First Time under the Restricted Stock Incentive Plan 2021. | Agree to submit to the board of directors for deliberation | Nil |
(5). Strategy and Development Committee held three meetings during the reporting period.
| Convening date | Content of meeting | Important comments and suggestions | Other performance of duties |
| April 7, 2022 | Reviewed the Proposal on the Company’s Strategy and Development Planning. | Agree to submit to the board of directors for deliberation | Nil |
| July 5, 2022 | Reviewed the Proposal on the Company’s Intention to Sign the Investment Agreement with the People’s Government of Guigang Municipality. | Agree to submit to the board of directors for deliberation | Nil |
| July 11, 2022 | Reviewed the Proposal on the Plan for Public Issuance of Convertible Bonds, the Proposal on the Advance Scheme for Public Issuance of Convertible Bonds, and the Proposal on the Feasibility Analysis Report on Use of the Funds Raised by Public Issuance of Convertible Bonds. | Agree to submit to the board of directors for deliberation | Nil |
(6). Specification of Objections
?Applicable √Not applicableVIII. Risks Detected by the Board of Supervisors?Applicable √Not applicable
IX. Employees of the Company as the Parent and Its Principal Subsidiaries at the Period-end(I) Employees
| Number of in-service employees of the Company as the parent | 1,112 |
| Number of in-service employees of principal subsidiaries | 7,014 |
| Total number of in-service employees | 8,126 |
| Number of retirees to whom the Company as the parent or its principal subsidiaries need to pay retirement pensions | 0 |
| Functions | |
| Function | Employees |
| Production | 5,155 |
| Sales | 1,183 |
| Technical | 917 |
| Financial | 154 |
| Administrative | 717 |
| Total | 8,126 |
| Educational background | |
| Category of education level | Quantity (person) |
| Doctor | 5 |
| Master | 64 |
| Undergraduate | 1,134 |
| Junior College and Technical secondary school | 1,875 |
| High school and below | 5,048 |
| Total | 8,126 |
(II) Remuneration policy
√Applicable ?Not applicable
Guided by the Fighters Culture and the performance-oriented idea, The Company implements aremuneration policy that is internally fair, externally competitive, and based on performance evaluation,which takes the post system and pay grade as the standard and the qualification evaluation as the basisto establish a sound, scientific and reasonable talent development and compensation managementsystem. At the same time, through the implementation of incentive measures such as equity incentives,the Company has realized the deep binding between its interests and the key employees and improvedloyalty. Under its framework of overall compensation system, for key businesses (including marketing,R&D and manufacturing), the Company conducts performance appraisals based on business attributesand the final realization of the value of related products, including marketing incentive, and reward ofproduction process improvements, etc.(III) Training plans
√Applicable ?Not applicable
Aimed at value-added human capital, the Company has set up the AIMA Learning Center. Targetedat the professional competence matrix, focusing on the four core areas of “research”, “production”, “sales”and “service”, and in combination with the Company’s strategic objectives, job requirements and relatedproblems in operation, AIMA Learning Center provided customized professional empowerment training,organized campaigns and competitions which focus on different aspects such as R&D, technologicalinnovation, manufacturing technology improvement and skill enhancement, promoted the construction ofa learning organization on the basis of training, and followed up on the practical application of theoreticalknowledge, thus leading thousands of employees to constantly strive towards “great country craftsman”.
The Company has initially formed a three-level training system, with emphasis on key and generalcapabilities, professional capabilities for various functional sections and internal working competence fororganizations at all levels. In order to create a good learning atmosphere that “everyone is a teacher andeveryone is a student” and accumulate professional experience, AIMA Learning Center launched the“Hundred Trainers and Hundred Courses Construction Project”, under which 130 internal trainers gotcertified and 92 internal training courses were produced in 2022.(IV) Labor outsourcing
√Applicable ?Not applicable
| Total remuneration paid for labor outsourcing | RMB 110,759,484 |
X. Plan on Profit Distribution or Conversion of Capital Reserve(I) Formulation, implementation or adjustment of the cash dividend policy
√Applicable ?Not applicable
1. According to the Articles of Association, the cash dividend policy of the Company is as below:
If the Company’s profit for the year and the accumulative undistributed profit are positive, and it hasno significant investment plan or material cash spending, the Company shall give priority to cashdividends in the profit distribution, which shall be no less than 20% of distributable profit recorded in theyear, provided that such distribution shall not prejudice the normal operation and long-term businessdevelopment of the Company. The dividend ratio of each year shall be formulated by the board ofdirectors according to the operation condition and relevant regulations, and submitted to the generalmeeting for consideration and approval.
When proposing the profit distribution, the board of directors shall take into consideration of theindustry characteristics, ranking in the industry, competition power, profit margin when determining theCompany’s development stage, and whether it has any significant capital expenditure arrangements, andformulate the profit distribution proposal, in accordance with the provisions set out below:
(1) If the Company is at the mature stage, and has no significant capital expenditure arrangement,the ratio of cash dividends shall be at least 80%in the profit distribution.
(2) If the Company is at the mature stage, and has a significant capital expenditure arrangement, theratio of cash dividends shall be at least 40% in the profit distribution.
(3) If the Company is at the growing stage, and has a significant capital expenditure arrangement,the ratio of cash dividends shall be at least 20% in the profit distribution.
(4) If it is difficult to determine the development stage of the Company while it has a significant capitalexpenditure arrangement, the profit distribution may be dealt with according to the rules applied in theprevious paragraph.
2. Pursuant to the resolution at the 6th meeting of the fifth session of the Board, the Company intendsto take the total shares on the equity registration date for the implementation of equity distribution as thebasis to execute the profit distribution and capitalization of capital reserve in year 2022 as below:
(1) The Company intends to distribute a cash dividend of RMB 13.04 (tax included) per 10 shares toall shareholders. Based on the total share capital of 574,700,004 shares of the Company so far, the cashdividend to be distributed as above will be RMB 749,408,805.22 (tax included) in total. The cash dividendof the Company in this year accounts for 40.00% in the net profit attributable to common shareholders ofthe Company. After the profit distribution, the remaining balance of undistributed profit will beaccumulated for further distribution in the years to come.
(2) The Company intends to issue 5 shares converted by capital reserve, per 10 shares to allshareholders. Based on the total share capital of 574,700,004 shares of the Company so far, the totalshares of the Company will increase to 862,050,006 shares (the total share capital of the Company isbased on the final registration result of China Securities Depository and Clearing Corporation LimitedShanghai Branch, in case of the rounding differences if any) after this conversion.
From the date of disclosure of this Report to the equity registration date for the implementation ofequity distribution, if the total equity of the Company changes, the Company intends to maintain the ratioof distribution and conversion unchanged, and correspondingly adjust the amount of profit distributionand capital reserve capitalization. This matter needs to be submitted to the 2022 annual general meeting
of the Company for consideration.
3. During the reporting period, there was no adjustment to the Company’s cash dividend policy.(II) Special description of cash dividend policy
√Applicable ?Not applicable
| In compliance with the Company’s Articles of Association or the relevant resolutions of general meeting of shareholders | √Yes □No |
| Specific and clear dividend standards and ratios | √Yes □No |
| Complete decision-making procedure and mechanism | √Yes □No |
| Independent directors have faithfully performed their duties and played their due role | √Yes □No |
| Non-controlling shareholders are able to fully express their opinion and demand and their legal rights and interests are fully protected | √Yes □No |
(III) Where the Company fails to put forward a cash dividend proposal despite the facts that theCompany has made profits in the reporting period and the profits of the Company as the parentdistributable to shareholders are positive, it shall give a detailed explanation of why, as well as ofthe purpose and use plan for the retained earnings.?Applicable √Not applicable(IV) Profit Distribution and Capitalization of Capital Reserves during the reporting period
√Applicable ?Not applicable
In: Yuan Currency: RMB
| Number of bonus shares for every 10 shares | 0 |
| Dividends for every 10 shares (RMB) (tax-inclusive) | 13.04 |
| Number of shares converted from capital reserves for every 10 shares | 5 |
| Amount of cash dividends (tax-inclusive) | 749,408,805.22 |
| Net profit attributable to common shareholders of the Company in the annual consolidated statement of dividends | 1,873,433,343.24 |
| Percentage of cash dividends in the net profit attributable to common shareholders of the Company in the consolidated statements (%) | 40.00 |
| Shares repurchased in cash which are recognized as cash dividends | 0 |
| Total amount of dividends (tax-inclusive) | 749,408,805.22 |
| Percentage of total dividends in the net profit attributable to common shareholders of the Company in the consolidated statements (%) | 40.00 |
XI. Status and Impact of Share Incentive Schemes, Employee Shareholding Plan or OtherIncentive Measures for Employees(I) Relevant incentive matters disclosed in current announcement with no subsequent progressor change
√Applicable ?Not applicable
| Overview | Index to the disclosed information |
| The 23rd meeting of the fourth board of directors decided to implement the Restricted Stock Incentive Plan 2021 (Draft), which plans to grant 7.06 million restricted shares to the incentive objects at the price of 20.23 yuan/share, including 6.86 million shares granted at the first time and 200,000 shares reserved. | See the relevant announcements disclosed on the website of Shanghai Stock Exchange on November 17, 2021 for details. |
| The third extraordinary general meeting of shareholders in 2012 agreed to implement the Restricted Stock Incentive Plan 2021, and | See the relevant announcements disclosed on the website of |
| authorized the board of directors to handle related matters. The 24th meeting of the fourth board of directors adjusted the List of First Incentive Objects and Number of Restricted Stock Granted at the First Time under the Restricted Stock Incentive Plan 2021, and decided to grant 6.79 million restricted shares to 106 incentive objects on December 27, 2021. | Shanghai Stock Exchange on December 28, 2021 for details. |
| On January 24, 2022, the Company completed first granting registration of restricted stock incentive plan of 2021 with China Securities Depository and Clearing Corporation Limited Shanghai Branch. | See the relevant announcements disclosed on the website of Shanghai Stock Exchange on January 26, 2022 for details. |
| The 25th meeting of the fourth board of directors decided to repurchase and cancel 120,000 restricted shares under the lock-up period held by four incentive objects who were no longer eligible for incentives due to departure, and to grant 200,000 reserved restricted shares to 15 incentive objects on April 18, 2022. | See the relevant announcements disclosed on the website of Shanghai Stock Exchange on April 16, 2022 for details. |
| On May 19, 2022, the Company completed the registration of the reserved share granting under the Restricted Stock Incentive Plan 2021 with Shanghai Branch of China Securities Depository and Clearing Corporation Limited. | See the relevant announcements disclosed on the website of Shanghai Stock Exchange on May 21, 2022 for details. |
| On June 9, 2022, the Company repurchased and cancelled 120,000 restricted shares from four incentive objects who were no longer eligible for incentives due to departure. | See the relevant announcements disclosed on the website of Shanghai Stock Exchange on June 7, 2022 for details. |
(II) Incentives not disclosed in temporary announcement or with subsequent progressEquity incentive situation?Applicable √Not applicableOther description?Applicable √Not applicableEmployee stock ownership plan?Applicable √Not applicableOther incentive measures?Applicable √Not applicable(III) Equity incentives granted to directors and senior management during the reporting period
√Applicable ?Not applicable
In: Share
| Name | Position | Restricted Shares held at the period-begin | Restricted Shares granted in the reporting period | Grant price (RMB) | Unlocked shares | Shares still in lockup | Restricted shares held at the period-end | Market value at the end of reporting period (RMB) |
| Gao Hui | Director, Vice GM | 1,200,000 | 20.23 | 1,680,000 | 1,680,000 | 45.87 | ||
| Luo Qingyi | Vice GM | 600,000 | 20.23 | 840,000 | 840,000 | 45.87 | ||
| Zheng Hui | Vice GM, Chief Financial | 400,000 | 20.23 | 560,000 | 560,000 | 45.87 |
| Officer | ||||||||
| Hu Yupeng (Left office) | Vice GM | 200,000 | 20.23 | 280,000 | 280,000 | 45.87 | ||
| Total | / | 2,400,000 | / | 3,360,000 | 3,360,000 | / |
Note: ① According to the Plan for Profit Distribution and Capitalization of Capital Reserves in 2021reviewed and adopted at the annual general meeting of shareholders in 2021, it was agreed that theCompany would distribute a cash dividend of RMB 0.5 (tax-inclusive) for every share based on the totalshare capital of 410,500,003 shares, and issue 0.4 share converted from capital reserves for every shareto all shareholders. On June 28, 2022, the Company completed the annual equity distribution for 2021,and the number of restricted shares held by incentive objects increased proportionally.
② The Proposal on Appointing Vice General Managers was reviewed and adopted at the firstmeeting of the fifth board of directors. Accordingly, Hu Yupeng, former vice general manager, left his postat the expiration of his term, and thereafter, he is still an employee of the Company.(IV) Formulation and implementation of appraisal and incentive mechanisms for senior executivesduring the reporting period
√Applicable ?Not applicable
The evaluation and incentive mechanisms of the Company to is based on" Developing with theorganization and Achieving organizational goals", the Company selects suitable performance indexes(including financial indexes, operation indexes, quality indexes, key events and veto item) according tobusiness attributes, sets up short-term performance target and long-term performance target to thedepartments or business units for which the senior executives are responsible, the Company regularlytracks and implements the achievement of these target, and implements short-term and long-termincentives based on assessment and achievement of organizational goals.XII. Establishment and Implementation of Internal Control System in the Reporting Period
√Applicable ?Not applicable
The Company has established a relatively sound internal control and management system in strictaccordance with the requirements of China Securities Regulatory Commission and Shanghai StockExchange and other relevant regulatory requirements, and made continuous improvements inconsideration of its actual operation situation. In 2022, the Company maintained effective internal controlover financial reports in all major aspects in accordance with the internal control standards for enterprisesand relevant regulations, and had no major defects in internal control. For details, please refer to theAnnual Internal Control Evaluation Report 2022 disclosed by the Company on the website of ShanghaiStock Exchange.Description of major defects existing in internal control in the reporting period.?Applicable √Not applicableXIII. Management and Control of Subsidiaries during the Reporting Period
√Applicable ?Not applicable
During the reporting period, the Company carried out standardized management and risk controlover its subsidiaries through effective management, control, evaluation and supervision in terms ofpersonnel management, finance management, operation and investment decision-making management,information disclosure management, audit supervision and management, and archives and sealmanagement based on the Subsidiary Management Rules reviewed and adopted by the board ofdirectors and in strict accordance with laws and regulations, regulatory documents, and variousmanagement rules of the Company. According to its overall strategic planning, the Company required itssubsidiaries to develop relevant business plans, risk management procedures and internal controlsystems to continuously improve the standardized operation of subsidiaries.XIV. Information about the Internal Control Audit Report?Applicable √Not applicable
Ernst & Young Hua Ming LLP was entrusted by the Company to audit the Company’s internal controlsin 2022, and issue a standard unqualified Internal Control Audit Report. For details, please refer to theInternal Control Audit Report 2022 disclosed by the Company on the same day as the Annual Report of2022.Whether internal control audit report is disclosed: YesType of opinions in the internal control audit report: standard unqualified opinionsXV. Rectification of Issues in Self- inspection of Special Actions for Governance of the ListedCompanyNot applicableXIV. Other?Applicable √Not applicable
Section 5 Environmental and Social ResponsibilityI. Environmental Information
| Whether there is an environmental protection mechanism in place | Yes |
| Investment in environmental protection during the reporting period (In: Yuan ‘0000) | 2,042.25 |
(I) Information about environmental protection of the Company and its main subsidiaries as thekey pollutant discharging entities published by environmental protection department
√Applicable ?Inapplicable
1. Pollutant discharging information
√Applicable ?Not Applicable
In accordance with the Notification of Releasing the List of Key Pollutant Discharging Entities ofTianjin City in 2022, issued by Tianjin Ecology and Environment Bureau, Tianjin Vehicle, a subsidiary ofthe Company, was listed as a key pollutant discharging entity of atmospheric environment, solid wasteand hazardous waste of Tianjin City in 2022. In accordance with the Notification of Releasing the List ofKey Pollutant Discharging Entities of Shangqiu City in 2022, issued by Shangqiu Ecology andEnvironment Bureau, Henan Vehicle, a subsidiary of the Company, was listed as a key pollutantdischarging entity of soil environment in April 2022.Tianjin Vehicle and Henan Vehicle have strictly executed relevant requirements of laws, regulationsand pollutant discharging permit, they have truthfully disclosed relevant information to the public on thenationwide pollutant discharging permit management information platform, including pollutants,discharging manner, discharging concentration and total discharging volume, construction and operationsituation of pollution prevention and control facilities, and accept supervision of the public.
2. Construction and operation situation of pollution prevention and control facilities
√Applicable ?Not Applicable
Tianjin Vehicle has constructed various pollutant treatment facilities strictly according to regulations,standards, environmental impact assessment and approval requirements, and these pollutant treatmentfacilities are operating well. It has strictly executed national, local discharging standards to ensure thatthe pollutant discharging concentration meet the standards, and the solid waste has been properlydisposed. Details are as follows:
(1) Tianjin Vehicle
The major waste gases emitted by Tianjin Vehicle include spraying dust, organic waste gas and fuelwaste gas, and the major factors of these pollutants are dust, methylbenzene, dimethylbenzene, VOCs,smoke dust, SO
, NOx. Painting rooms, leveling rooms and drying rooms of various production lines areairtight, the purifying method of organic waste gases is mainly “zeolite roller + RTO”, and the gases areemitted through exhaust stack after treatment; Dust from the static powder spraying process is recoveredthrough recovery system, and the tail gas is fully emitted through exhaust tubes. The main waste gasexhaust port of spraying workshop is set with online monitoring devices, which is networked with Tianjin
Ecology and Environment Bureau to real-time monitor of atmospheric pollutants emission meetingstandards. The waste gas treatment facilities of Tianjin Vehicle are in good operation, methylbenzene,dimethylbenzene, VOCs, PM, smoke dust, SO
, NOx and other pollutants are discharged up to thestandard.
The wastewater discharged by Tianjin Vehicle includes industrial wastewater and domesticwastewater. In particular, painting wastewater is the key object of monitoring, and the main pollutantfactors include PH, COD, B0D5, SS, ammonia nitrogen, total phosphorus, total nitrogen, petroleum, etc.In the plant area, there is a 500m?/d wastewater treatment station used to treat the industrial wastewaterincluding painting wastewater. The station adopts the treatment techniques of “flocculation andprecipitation + micro-electrolysis + Fenton + biological contact oxidation”, and ensures that effluentdischarged from the plant area reaches the Level 3 standard specified in the Integrated WastewaterDischarge Standard (DB12/356-2018). In the plant area, rainwater and wastewater are separated, andthe flow directions of wastewater and rainwater pipelines are marked, to achieve diversion of industrialwastewater, domestic wastewater and rainwater. The treated wastewater flows to the professionalsewage treatment plant through the municipal pipeline network. The wastewater treatment facilities in theplant area operate well, and all pollutants are discharged according to the relevant discharge standards;the general wastewater drainage port of the plant area is equipped with an online monitoring device,which is networked with Tianjin Ecology and Environment Bureau to monitor the discharge of waterpollutants out of the plant area in real time.Tianjin Vehicle has constructed a temporary storage room of hazardous waste, recovery area ofgeneral solid waste and other facilities, the construction of the temporary storage room of hazardouswaste met Pollution Control Standards for Hazardous Waste Storage. General industrial solid waste hasbeen disposed according to garbage classification, and those with recycling value have been deliveredto the third-party professional institutions for recycle, while production and domestic waste has beencleaned and transported regularly by sanitation departments, and hazardous waste has been disposedof safely by qualified professional companies. In 2022, Tianjin Vehicle fully performed the hazardouswaste transfer formalities according to laws, and the hazardous waste was disposed of on the basis ofcompliance.
Besides the above environmental protection measures, Tianjin Vehicle has taken correspondingenvironmental protection measures to noise, which met the requirements in relevant with national andlocal environmental protection.
(2) Henan Vehicle
As per the requirements of soil pollution risk control zoning in Henan Province, Shangqiu Urban-Rural Integration Demonstration Zone, where the plant area of Henan Vehicle is located, is a soil pollutionrisk control zone (enterprise under key supervision of soil pollution). However, the land in the plant areaof Henan Vehicle is industrial land, and Henan Vehicle does not belong to an industry with soil pollutionrisks, so the plant area of Henan Vehicle meets the requirements of the soil pollution risk prevention andcontrol bottom-line. The risk of groundwater and soil pollution in the plant area of Henan Vehicle mainlylies in wastewater and solid waste. In the plant area, temporary hazardous waste storerooms are treatedas the key anti-seepage areas, and the wastewater treatment area, paint mixing room and the like aretreated as the general anti-seepage areas.
The wastewater discharged by Henan Vehicle includes such main pollutant factors as PH, COD,ammonia nitrogen, SS, total phosphorus, etc. In the plant area, there is a 100m?/d wastewater treatmentstation used to treat industrial wastewater. The station adopts the treatment techniques of “pretreatment+ biochemical reaction + filtration + biochemical treatment”. Domestic sewage is pretreated in the plantarea and discharged into the municipal sewage treatment plant. The wastewater treatment facilities inthe plant area operate well, and all pollutants are discharged according to the relevant dischargestandards.
Henan Vehicle has constructed a temporary storage room of hazardous waste, recovery area ofgeneral solid waste and other facilities, the construction of the temporary storage room of hazardouswaste met Pollution Control Standards for Hazardous Waste Storage. General industrial solid waste hasbeen disposed according to garbage classification, and those with recycling value have been deliveredto the qualified professional institutions for recycle, while production and domestic waste has beencleaned and transported regularly by sanitation departments, and hazardous waste has been disposedof safely by qualified professional companies. In 2022, Henan Vehicle fully performed the hazardous
waste transfer formalities according to laws, and the hazardous waste was disposed of on the basis ofcompliance.Besides the above environmental protection measures, Henan Vehicle has taken correspondingenvironmental protection measures to exhaust gas and noise, which met the requirements in relevantwith national and local environmental protection.
3. Environmental impact assessment of construction project and other administrative licensesfor environmental protection
√Applicable ?Not applicable
Strictly according to the requirements of laws and regulations, The Company prepares environmentalimpact assessment documents for the new reconstruction and expansion projects that need to go throughenvironmental protection procedures, and obtains EIA approval and constructs strictly according to laws,regulations and EIA approval. The Company performs the completion and acceptance procedures ofenvironmental protection according to laws and regulations after the completion of the construction.
4. Emergency plan for environmental accident
√Applicable ?Not applicable
Tianjin Vehicle and Henan Vehicle filed their contingency plans for environmental emergencies inlocal environmental protection administrations in August 2021 and August 2022 respectively and receivedthe corresponding filing receipt. They further inspected risk sources and took relevant correctivemeasures to improved environmental risk prevention mechanism, and reduce the possibility ofenvironmental risk accidents. Tianjin Vehicle and Henan Vehicle have organized relevant personnelevery year to carry out emergency drills for environmental risk accidents in order to improve emergencyresponse capacities.
5. Environmental self-monitoring program
√Applicable ?Not applicable
The main waste gas and wastewater discharging ports of Tianjin Vehicle are installed with onlinemonitoring system for real-time monitoring of main pollutants, and monitoring data is directly uploaded toenvironmental protection data platform, various pollutants are discharged in conformity with relevantstandards. Tianjin Vehicle keeps operation and maintenance records on waste gas, wastewater treatmentfacilities in daily production, and solid waste and hazardous waste records.
Tianjin Vehicle entrusts qualified testing institutions to regularly monitor waste water, waste gas andnoise strictly in accordance with Self-monitoring Technical Guidance for Pollutant Discharging Entitiesand other standards, as well as monitoring frequency requirement of environmental impact evaluationdocuments and pollutant discharging license. The testing report is uploaded to the pollution sourcemonitoring data management and information sharing platform.
In addition, Henan Vehicle entrusts qualified testing institutions to regularly monitor wastewater,waste gas and noise strictly in accordance with self-monitoring Technical Guidance for PollutantDischarging Entities and other regulations and standards, as well as monitoring frequency requirementof environmental assessment reports and pollutants-discharging license. Various pollutants aredischarged according to relevant standards. The testing report is uploaded to the management andinformation sharing platform for pollution source monitoring data. Henan Vehicle keeps operation andmaintenance records on production and waste gas, wastewater treatment facilities in daily production,and solid waste and hazardous waste transfer records.
In June 2022, Henan Vehicle carried out a project to investigate the potential risks of soil andgroundwater pollution in the plant area. It developed an Investigation Plan for the Potential Risks of Soiland Groundwater as per relevant requirements such as the Guidelines for the Investigation of PotentialRisks of Soil Pollution in Enterprises under Key Supervision (Trial), conducted on-site investigations onkey areas and key facilities, completed sampling and monitoring of soil and groundwater, and issuedrelevant test reports. In September 2022, the Investigation Report on Potential Risks of Soil Pollution wasprepared. After comprehensive investigation and testing, the test results of soil and groundwater in theplant area met the relevant standard limits, and the soil pollution prevention and control measures havebeen continuously enhanced. Therefore, there was low risk of soil pollution in the plant area.
6. Administrative penalty due to environmental issues in the reporting period
?Applicable √Not applicable
7. Other environmental information that should be disclosed?Applicable √Not applicable(II) Description of environmental protection situation of companies other than those defined askey pollutant-discharging entities
√Applicable ?Not applicable
1. Administrative penalty due to environmental issues
?Applicable √Not applicable
2. Other environmental information disclosed with reference to major pollutant dischargingentities
√Applicable ?Not applicable
Upholding the concept of green development, the Company has established a comparatively perfectmodern environmental management system which covers R&D, production, marketing and otherbusiness links. The Company and its subsidiaries actively promote the effective environmentalmanagement by establishing and implementing normal and long-term environmental protection measures,and constantly improve the environmental management system to promote high-quality development.Several subsidiaries have passed the third-party certifications.The Company and its subsidiaries strictly abide by relevant laws, regulations and standards. All new,reconstruction and expansion projects have gone through the EIA procedures, with their constructioncontents consistent with the EIA approval, and have passed the completion acceptance of environmentalprotection. Relevant subsidiaries actively manage the operation of pollutant prevention and controlfacilities to ensure satisfactory treatment capacity of the facilities, strictly implement the managementregulations of pollutant discharge licenses, carry out daily and regular monitoring of pollutants, and realizeup-to-standard discharge of waste gas, wastewater and noise and compliant disposal of solid waste. Allrelevant subsidiaries have developed emergency plans for sudden environmental incidents as required,and organized regular drills.
3. Reasons of not disclosing other environmental information?Applicable √Not applicable(III) Relevant information favorable to ecological protection, pollution prevention and control andenvironmental responsibility fulfillment
√Applicable ?Not applicable
The Company integrates the concept of sustainable development into its production and operation,strengthens the green management throughout the product life cycle by establishing and improving theenvironmental management system, constantly improves the utilization efficiency of resources andenergy, and actively creates an efficient, clean, low-carbon and recycling green manufacturing system.The Company and its subsidiaries regularly inspect and improve high-energy-consuming equipment,enhance the analysis of energy consumption and improve the energy utilization rate; actively chooseenergy-saving and water-saving products, maximize the use of recyclable packaging materials, andimprove the service life of containers, in an effort to reduce the consumption of resources and energy.(IV) Measures taken during the reporting period to reduce carbon emission and their effectiveness
| Whether carbon emission reduction measures were taken | Yes |
| Reduction in CO2 equivalent emissions (In: Ton) | 802 |
| Carbon reduction measures (e.g., using clean energy in power generation, using carbon reduction technologies in production, developing and producing new products for carbon reduction) | Actively explore effective ways to reduce resource consumption and increase resource recycling, improve the comprehensive utilization efficiency of energy and resources, establish the awareness of energy conservation and emission reduction throughout the Company, and create a sound atmosphere of energy conservation and emission reduction. |
In 2022, the Company’s energy conservation and emissionreduction projects in the process of production included TianjinVehicle Gas-Saving Renovation Project, Tianjin VehicleTransformer Capacity Reduction Project and Guangxi VehiclePainting Preheater Renovation Project.
Detailed description?Applicable √Not applicableII. Performance of Social Responsibilities(I) Whether a social responsibility report, sustainable development report or ESG report wasdisclosed separately
√Applicable ?Not applicable
For details about the Company’s performance of its social responsibilities, please refer to theEnvironmental, Social and Governance (ESG) Report 2022 published on the same day as the AnnualReport of 2022.(II) Specific social responsibility works
√Applicable ?Not applicable
| Donation and public welfare projects | Quantity/Content | Descriptions |
| Total investment (Yuan’0000) | 2,751.13 | Mainly for charitable donations, education donation, etc. |
Detailed description?Applicable √Not applicableIII. Particulars on the Efforts to Consolidate and Expand Its Achievements in Poverty Alleviationand Rural Area Invigoration
√Applicable ?Not applicable
| Poverty alleviation and rural revitalization projects | Quantity/Content |
| Total investment (Yuan’0000) | 574.78 |
| Including: funds (Yuan’0000) | 352 |
| Materials (Yuan’0000) | 222.78 |
| Number of beneficiaries | N/A |
| Forms of assistance (e.g., poverty alleviation through industrial development, poverty alleviation through employment, poverty alleviation through education, etc.) | The Company constantly explores and tries new ways to perform its social responsibilities, and takes different measures according to the actual needs of objects. In recent years, the Company has made great efforts to support rural revitalization and national education development, and made its own contribution through donation, provision of jobs and targeted support, in order to respond to the national policy. |
Detailed description?Applicable √Not applicable
Section 6 Significant EventsI. Fulfillment of Commitments(I) Commitments of the Company’s actual controller, shareholders, related parties, acquirer, as well as the Company and other relevant entitiesduring or up to the reporting period"√ Applicable" "□ Not applicable"
| Commitment background | Commitment Category | Promisor | Commitment Description | Commitment Duration | Whether there is a deadline for implementation | Whether it is timely and strictly performed | If it is not timely performed, the specific reasons should be stated | If it is not timely performed, the plan for the further step should be stated |
| Commitments related to IPO | Restricted shares | Zhang Jian and Zhang Gege | Note 1 | June 15, 2021 to June 14, 2024 | Yes | Yes | N/A | N/A |
| Restricted shares | Changxing Dingai and its partners | Note 2 | June 15, 2021 to June 14, 2024 | Yes | Yes | N/A | N/A | |
| Restricted shares | CITIC Investment, Goldstone Zhiyu, Goldstone Haofeng, Three Gorges Goldstone, Liu Jianxin, Peng Wei, Han Jianhua, Li Shishuang and Qiao Baogang | Note 3 | June 15, 2021 to June 14, 2022 | Yes | Yes | N/A | N/A | |
| Others | Zhang Jian, Zhang Gege, Changxing Dingai and its partners, Liu Jianxin and Peng Wei | Note 4 | Long term | No | Yes | N/A | N/A | |
| Others | The Company, Zhang Jian, Zhang Gege, | Note 5 | June 15, 2021 to June 14, | Yes | Yes | N/A | N/A |
| Duan Hua, Liu Jianxin, Peng Wei, Fang Hao, Xu Peng, Wu Lyubo, Li Yan, Wang Quanzhang, Li Yubao, Hao Hong, Wang Chunyan, Ren Yong and Hu Yupeng | 2024 | |||||||
| Solution to horizontal competition | Zhang Jian and Zhang Gege | Note 6 | Long term | No | Yes | N/A | N/A | |
| Solution to related transactions | Zhang Jian and Zhang Gege | Note 7 | Long term | No | Yes | N/A | N/A | |
| Commitments related to refinancing | Restricted shares | Zhang Jian | Note 8 | February 23, 2023 to September 3, 2023 | Yes | Yes | N/A | N/A |
| Restricted shares | Zhang Gege, Gao Hui, Peng Wei, Wang Chunyan, Zheng Hui, Li Yubao, Luo Qingyi | Note 9 | February 23, 2023 to September 3, 2023 | Yes | Yes | N/A | N/A | |
| Others | Sun Minggui, Liu Junfeng, Ma Junsheng, Xu Peng, Li Yan | Note 10 | February 23, 2023 to March 3, 2023 | Yes | Yes | N/A | N/A | |
| Restricted shares | Duan Hua and Liu Tingxu | Note 11 | February 23, 2023 to September 3, 2023 | Yes | Yes | N/A | N/A |
Note 1: Commitment of the controlling shareholder and actual controller for locking up their sharesZhang Jian, the Company's controlling shareholder and the actual controller and Zhang Gege, the Company’s actual controller have made the followingcommitment and confirmed that:
(1) Within 36 months from the date of lPO, I shall not transfer or entrust others to manage the shares directly or indirectly held by me that have beenissued before the Company's public offering, nor shall the Company repurchase the shares directly or indirectly held by me that have been issued before theCompany's public offering.
(2) Within 6 months after the listing of the Company's stock, the closing price of the Company's stock is continuously lower than the issuing price forsuccessively 20 trading days, or the closing price is lower than the issuing price at the end of the 6 months after listing, the locking duration of the shares heldby me in the Company shall prolong automatically 6 months.
Note 2: Commitment of Changxing Dingai and its partner for locking up their shares
Within 36 months from the date of IPO, I shall not transfer or entrust others to manage the shares directly or indirectly held by me that have been issuedbefore the Company's public offering, nor shall the Company repurchase the shares directly or indirectly held by me that have been issued before theCompany's public offering.
Note 3: Commitment of CITIC Investment, Goldstone Zhiyu, Goldstone Haofeng, Changxia Goldstone, Liu Jianxin, Peng Wei, Han Jianhua, LiShishuang and Qiao Baogang for locking up their shares
Within 12 months from the date of listing of the Company's shares, I shall neither transfer nor entrust others to manage the shares directly or indirectlyheld by me that have been issued before the Company's public offering, nor shall the Company repurchase such shares directly or indirectly held by me thathave been issued before the Company's public offering.
Note 4：Commitment of the controlling shareholder, actual controller, Changxing Dingai and its partner Liu Jianxin, and Peng Wei for theintentions about shareholding or reduction of shares
(1) During my tenure as a director or senior executive of the Company, the annual transfer of the shares of the Company directly or indirectly held by meshall not exceed 25% of the total shares of the Company directly or indirectly held by me; within six months after my leave from the office, none of the sharesof the Company directly or indirectly held by me shall be transferred.
(2) I commit that if the shareholding is lessened within two years after the expiration of the lock-up period, the price of the shares reduced shall not belower than the issue price. In the event of dividends, bonus shares, capitalization of provident fund, share allotment, etc., the price shall be adjusted accordinglybased on the ex-right and ex-dividend conditions.
(3) The above commitments shall not be exempted from the implementation due to job change, leave from office, etc. If I cause any loss to the Companyor other investors due to my failure to perform the above commitments, I shall be liable for compensation to the Company or other investors in accordancewith the law.
Note 5: Commitment for the stabilization of the share price and share repurchase
(1) The Company's Commitment
① Within three years from the date of IPO, if the closing price of the stock is lower than the Company's latest audited net assets per share for 20consecutive trading days (if ex-right and ex-right is conducted due to the distribution of the cash bonus, bonus shares, capitalization of reserve or additionalissuing of new shares, the closing price shall be adjusted accordingly, the same below), and the repurchase measures do not result in the Company's equitydistribution not meeting the listing criteria, the Company will initiate the measures for stabilizing the stock price through repurchasing of the shares in accordancewith the relevant laws, rules and regulations.
②The Board of Directors should hold a Board meeting to review the proposal for repurchase of the Company's shares within 5 trading days commencingfrom the day of starting the measures for stabilizing the stock price as stated above and submit the same to the general meeting for examination. The Companyshould start the repurchase commencing from the date when the general meeting has reviewed and approved such a proposal.
③The price of the Company’s shares repurchased shall not be higher than the net assets per share in the latest audited financial statements. Therepurchase of the shares is conducted in a way of centralized bidding, tender offer or other ways as recognized by the securities regulatory authority. Underthe premise that the Company's equity distribution may not be caused to fail to meet the listing conditions, the amount of the funds used by the Company forrepurchase at a time is not less than RMB 10 million in principle, the total repurchase funds used to stabilize the stock price in a single fiscal year shall notexceed 50% of the net profit attributable to the shareholders of the parent Company in the latest audited financial statements, and the total amount of fundsused by the Company to repurchase shares shall not exceed the total amount of funds raised by the Company's initial public offering of shares.
④From the time when the Company initiates the stock price stabilization plan to that before the formal implementation of the stock price stabilizationmeasures, or during the implementing the measures for stabilizing the stock price, if any of the conditions as stated in the “conditions for terminating theimplementation of the measures for stabilizing the stock price” in the “AIMA Technology Group Co., Ltd.'s IPO of RMB Common Shares (A Shares) and theStabilization Plan of the Stock Price within Three Years After Listing of the Company’s Stock" is triggered, the implementation of the above-mentioned pricestabilization plan will be terminated.
⑤Within three years from the date of the listing of the Company's stock, if the Company has newly appointed directors (independent directors are exclusive)and senior executives, the Company will require these newly appointed directors and senior executives to fulfill the corresponding commitments made by thedirectors and senior executives appointed at the time of the listing.
(2) Controlling shareholder and actual controller
① Within three years from the date of IPO, if the closing price of the stock is lower than the Company's latest audited net assets per share for 20consecutive trading days (if ex-right and ex-right is conducted due to the distribution of the cash bonus, bonus shares, capitalization of reserve or additionalissuing of new shares, the closing price shall be adjusted accordingly, the same below), and the repurchase measures do not result in the Company's equitydistribution not meeting the listing criteria, I will initiate the measures for stabilizing the stock price through repurchasing of the shares in accordance with therelevant laws, rules and regulations.
②If the closing price of the stock is lower than the Company's latest audited net assets per share for 10 consecutive trading days from the next day afterthe Company has finished implementation of the measures for stabilizing the stock price (subject to the date of the announcement that implementation isfinished), or within 3 months from the next day after the Company has finished implementation of the measures for stabilizing the stock price (subject to thedate of the announcement that implementation is finished), the closing price of the Company’s stock is once again lower than the Company's latest auditednet assets per share for 20 consecutive trading days, I will initiate the measures for stabilizing the stock price.
③Within 5 trading days from the day when the above-mentioned conditions for initiating the measures to stabilize the stock price are satisfied, I willpropose a plan to increase my shareholding of the Company’s shares (including the number of shares to be increased, the price range, the completion period,etc.) and notify the Company. After receiving my shareholding plan, the Company should announce the increasing plan in accordance with the relevantregulations; and I will start to increase the shareholding on the trading day after the day of announcement for the increasing plan.
④ The price of my increased shares is not higher than the Company’s audited net assets per share at the end of the previous fiscal year. Under thepremise that the Company's equity distribution may not be caused to fail to meet the listing conditions, and the cumulative number of the increased shares
shall not exceed 1% of the Company’s total shares within every 12 months from the day when the condition for taking the measures to stabilize the stock priceis triggered, the funds I use to increase my shareholdings are not less than 30% of the total amount of the cash dividends, remuneration or allowance(after-tax) that I receive directly or indirectly from the Company in the previous year within every 12 months from the day when the condition for taking the measuresfor stabilizing stock price is triggered.
⑤From the time when the Company initiates the stock price stabilization plan to that before the formal implementation of the stock price stabilizationmeasures, or during the implementing the measures for stabilizing the stock price, if any of the conditions as stated in the “conditions for terminating theimplementation of the measures for stabilizing the stock price” in the “AIMA Technology Group Co., Ltd.'s IPO of RMB Common Shares (A Shares) and theStabilization Plan of the Stock Price within Three Years After Listing of the Company’s Stock" is triggered, the implementation of the above-mentioned pricestabilization plan will be terminated.
⑥I guarantee that when the Company implements the plan for stabilizing stock price, I shall vote in favor of the resolution to repurchase shares.
(3) Commitments of the directors (independent directors are exclusive) and senior executives
① Within three years from the date of IPO, if the closing price of the stock is lower than the Company's latest audited net assets per share for 20consecutive trading days (if ex-right and ex-right is conducted due to the distribution of the cash bonus, bonus shares, capitalization of reserve or additionalissuing of new shares, the closing price shall be adjusted accordingly, the same below), and the repurchase measures do not result in the Company's equitydistribution not meeting the listing criteria, I will initiate the measures for stabilizing the stock price through repurchasing of the shares in accordance with therelevant laws, rules and regulations.
②If the closing price of the stock is lower than the Company's latest audited net assets per share for 10 consecutive trading days from the next day afterthe Company has finished implementation of the measures for stabilizing the stock price (subject to the date of the announcement that implementation isfinished), or within 3 months from the next day after the Company has finished implementation of the measures for stabilizing the stock price (subject to thedate of the announcement that implementation is finished), the closing price of the Company’s stock is once again lower than the Company's latest auditednet assets per share for 20 consecutive trading days, I will initiate the measures for stabilizing the stock price.
③Within 5 trading days from the day when the above-mentioned conditions for initiating the measures to stabilize the stock price are satisfied, I willpropose a plan to increase my shareholding of the Company’s shares (including the number of shares to be increased, the price range, the completion period,etc.) and notify the Company. After receiving my shareholding plan, the Company should announce the increasing plan in accordance with the relevantregulations; and I will start to increase the shareholding on the trading day after the day of announcement for the increasing plan.
④ The price of my increased shares is not higher than the Company’s audited net assets per share at the end of the previous fiscal year. Under thepremise that the Company's equity distribution may not be caused to fail to meet the listing conditions, and the cumulative number of the increased sharesshall not exceed 1% of the Company’s total shares within every 12 months from the day when the condition for taking the measures to stabilize the stock priceis triggered, the funds I use to increase my shareholdings are not less than 30% of the total amount of the cash dividends, remuneration or allowance(after-tax) that I receive directly or indirectly from the Company in the previous year within every 12 months from the day when the condition for taking the measuresfor stabilizing stock price is triggered.
⑤ From the time when the Company initiates the stock price stabilization plan to that before the formal implementation of the stock price stabilizationmeasures, or during the implementing the measures for stabilizing the stock price, if any of the conditions as stated in the “conditions for terminating theimplementation of the measures for stabilizing the stock price” in the “AIMA Technology Group Co., Ltd.'s IPO of RMB Common Shares (A Shares) and the
Stabilization Plan of the Stock Price within Three Years After Listing of the Company’s Stock" is triggered; the implementation of the above-mentioned pricestabilization plan will be terminated.
⑥I guarantee that when the Company implements the plan for stabilizing stock price, I shall vote in favor of the resolution to repurchase shares.Note 6: Commitment to resolve or avoid the Horizontal CompetitionThe Company's controlling shareholder and actual controller Zhang Jian and actual controller Zhang Gege have issued a letter of commitment to resolveor avoid the horizontal competition with the commitment as follows:
(1) For the purpose of avoiding horizontal competition between the enterprise I control or impose significant impact on and the Company after listing, Ihereby commit that while I act as a shareholder and actual controller of Aima Technology Group Co., Ltd., the enterprise I may control or exert significantinfluence on shall not be directly or indirectly involved in any business or activities which may form competition with Aima Technology by any means both inand out of the territory of China (including but not limited to independent operation, operation through joint venture or owning of the shares and other equity inanother company or enterprise), I shall not hold any post to perform any practical management duties in any economic organization that competes with theCompany.
If Aima Technology further expands its business scope, I promise and will urge the enterprise that I control or exert significant influence on to commit notto compete with the expanded business of Aima Technology; if I and the enterprise that I control or exert significant influence on have any business opportunityto do or participate in any activity which may compete with Aima Technology currently or in future, I will take and urge the enterprise that I control or exertsignificant influence on to take all possible and reasonable measures to transfer such opportunity to Aima Technology; if Aima Technology does not acceptthe transfer of such opportunity, the enterprise that I control or exert significant influence on will take any possible measures before the implementation of suchopportunity to any unaffiliated third party or voluntarily withdraw from such business opportunity, or take any other measures favorable to protect AimaTechnology’s interest and to avoid horizontal competition with Aima Technology.
For enterprises that I control or exert significant influence on, I will urge these enterprises to perform their obligations in this letter of commitment bydispatching agencies and personnel (including but not limited to directors and managers) and obtaining controlling positions, and commit not to be involved inhorizontal competition with Aima Technology.
(2)I commit not to take advantage of my status as the controlling shareholder and actual controller of Aima Technology to damage the legitimate rightsand interests of Aima Technology and other minority shareholders, nor to use my special status to seek abnormal additional interests.
(3) I confirm that each of the commitments contained in this letter of commitment is independently enforceable. If any of the above commitments is violated,Aima Technology has the right to require me and the enterprises I control or exert significant influence on to immediately stop horizontal competition, and hasthe right to require me or the enterprises I control or exert significant influence on to bear the direct or indirect economic losses, claim liability and relatedexpenses caused to Aima Technology.
(4) I guarantee that the above commitments shall continue to be valid and irrevocable as long as Aima Technology remains listed on the domestic stockexchange and I act as its controlling shareholder and actual controller. If change takes place in the relevant laws, rules or regulations, I shall update orsupplement the relevant commitments in a timely manner in accordance with the regulations.
Note 7: Measures taken by the Company to reduce related transactions
In order to further regulate and reduce related-party transactions, the controlling shareholder and actual controller Zhang Jian and actual controller ZhangGege of the Company issued the letter of commitment on regulating and reducing related transactions with details as follows:
(1) My close relatives and I, other economic organizations controlled by myself or my close relatives, will try to avoid or reduce related transactions withAima Technology (including its subsidiaries within the scope of consolidated financial statements, the same below). Transactions between the independentthird parties and Aima Technology that occur through the market will be carried out by the independent third parties and Aima Technology. My close relativesand I, other economic organizations controlled by myself or my close relatives, will strictly avoid borrowing from Aima Technology, appropriating AimaTechnology funds or taking the form of advances and payments to occupy Aima Technology funds, etc.
(2) Any necessary transaction between my close relatives and myself, other economic organizations controlled by myself or my close relatives and AimaTechnology will strictly comply with the market principle and in accordance with the general principles of equality and mutual benefit, and the transaction shouldbe fair and reasonable. If there is government price in pricing for the transaction, the government price shall be applicable; if there is no government price, themarket fair price shall be applicable; if there is neither government price nor market price for reference, the cost price shall be determined according to the costplus a comparable and reasonable profit level.
(3) Any related transactions between my close relatives and myself, other economic organizations controlled by myself or my close relatives and AimaTechnology will be clearly stipulated in the form of signing a written contract or agreement. And these transactions must comply with the necessary statutoryprocedures, which stipulated in the Aima Technology’s Articles of Association and the regulations concerning management of related transactions. When theauthority of Aima Technology reviews the concerned related transaction, I will initiatively implement the obligation of avoidance in accordance with the law.The related transactions that need to be reported to the authority should be implemented only after the authority has deliberated and approved them.
(4) I promise not to obtain any improper benefit through related transactions or making Aima Technology undertake any improper obligations. If theviolation of the above commitments causes Aima Technology to lose or using the related transactions to encroach on the interests of Aima Technology. AimaTechnology has the right to unilaterally terminate such related transactions, and I shall bear the loss of Aima Technology.
(5) For any unavoidable related transaction, I shall urge Aima Technology to strictly implement the related transaction decision-making procedures, thevoting avoidance system and the information disclosure system formulated by the Company's articles of association, so as to ensure the fairness, justice andimpartiality of related party transactions, and to avoid related transactions that harm the interest of Aima Technology and its shareholders.
(6) The above commitments will retain valid during the period when I constitute a related party of Aima Technology.
Note 8: Commitment of Zhang Jian to participate in the subscription of convertible bonds to be issued
(1) I will subscribe for the convertible bonds to be issued by the Company this time with my self-owned or self-raised funds. The amount of subscriptionwill be determined according to the relevant laws, regulations and normative documents, the plan for issuance of convertible bonds and my financial conditionat that time.
(2) If I or my spouse, parents or children reduce our shares in the Company within six months before the first day of this issue, I shall not participate in thesubscription of the convertible bonds on my own or by entrusting other entities.
(3) If I successfully subscribe for the convertible bonds, both I and my spouse, parents and children shall strictly abide by the legal requirements on short-term trading, that is, commit not to reduce our shares in the Company and these convertible bonds from the first day of this issue to six months after thecompletion of this issue.
(4) I voluntarily make the aforesaid commitment, and agree to be bound by the aforesaid commitment and to strictly abide by relevant laws, regulationsand normative documents. If I or my spouse, parents or children violate the aforesaid commitment, all earnings from such violation shall belong to the Company,and I or my spouse, parents or children shall bear the legal liabilities arising therefrom according to law.
Note 9: Commitment of Zhang Gege, Gao Hui, Peng Wei, Wang Chunyan, Zheng Hui, Li Yubao and Luo Qingyi to participate in the subscriptionof convertible bonds to be issued
(1) If I or my spouse, parents or children reduce our shares in the Company within six months before the first day of this issue, I shall not participate in thesubscription of the convertible bonds on my own or by entrusting other entities.
(2) If I and my spouse, parents and children do not reduce our shares in the Company within six months before the first day of this issue, I will decidewhether to participate in the subscription of the convertible bonds according to the market conditions and my capital arrangements. If I successfully subscribefor the convertible bonds, both I and my spouse, parents and children shall strictly abide by the legal requirements on short-term trading, that is, commit not toreduce our shares in the Company and these convertible bonds from the first day of this issue to six months after the completion of this issue.
(3) If I or my spouse, parents or children reduce our shares in the Company or the subscribed convertible bonds in violation of the aforesaid commitment,all earnings from such violation shall belong to the Company, and I or my spouse, parents or children shall bear the legal liabilities arising therefrom accordingto law.
Note 10: Commitment of Sun Minggui, Liu Junfeng, Ma Junsheng, Xu Peng and Li Yan to participate in the subscription of convertible bondsto be issued
I will not participate in the subscription of the convertible bonds to be issued by the Company this time on my own, or through my spouse, parents orchildren or any other person. The above commitment reveals my genuine intention. If I participate in the subscription of the convertible bonds in violation ofthe above commitment, all earnings from such violation shall belong to the Company, and I shall bear the legal liabilities arising therefrom according to law.
Note 11: Commitment of Duan Hua and Liu Tingxu to participate in the subscription of convertible bonds to be issued
(1) I will not participate in the subscription of the convertible bonds to be issued by the Company this time. If my spouse, parents and/or children have thepreemptive right to the convertible bonds due to shareholding in the Company, he/she/they will decide whether to participate in the subscription of theconvertible bonds according to the market conditions and capital arrangements. In case of successful subscription of the convertible bonds, both I and myspouse, parents and/or children shall strictly abide by the legal requirements on short-term trading, that is, commit not to reduce his/her/their shares in theCompany (if any) from the first day of this issue to six months after the completion of this issue. Except for the above circumstances, I commit not to entrustother entities to participate in the subscription of the convertible bonds, and not to participate in the subscription of the convertible bonds by using the accountof my spouse, parents or children or any other person. The above commitment reveals my genuine intention.
(2) If I or my spouse, parents or children violate the aforesaid commitment, all earnings from such violation shall belong to the Company, and I or myspouse, parents or children shall bear the legal liabilities arising therefrom according to law.
(II) If there is earnings forecast for the assets or projects of the Company and the reporting periodis still in the earnings forecast period, the Company should explain whether the asset or projectreaches the original earnings forecast and give the reasons
□ Already reached □ Not reached √ Not applicable
(III) Fulfillment of commitments on the performance and its impacts on goodwill impairment test
□ Applicable √ Not applicable
II. Non-operational Occupancy of the Company’s Capital by the Controlling Shareholder and itsRelated Parties during the Reporting Period
□ Applicable √ Not applicable
III. Information on Non-compliance Guarantees
□ Applicable √ Not applicable
IV. Explanation of the Board of Directors in Company on the “Non-standard Opinion Audit Report”Issued by the Accounting Firm
□ Applicable √ Not applicable
V. Analysis and Explanation on the Causes and Influences of the Changes in the Company’sAccounting Policies, Accounting Estimates or Correction of Major Accounting Errors(I) Analysis and explanation of the Company on the causes and influences of the changes in theaccounting policies and accounting estimates
□ Applicable √ Not applicable
(II)Explanation of the Company’s analysis on reasons and effects of the correction of significantaccounting errors
□ Applicable √ Not applicable
(III) Communication with former accounting firm
□ Applicable √ Not applicable
(IV) Other notes
□ Applicable √ Not applicable
VI. Engagement/Disengagement of the CPAs
In: Yuan’0000 Currency: RMB
| Currently engaged | |
| Name of the domestic CPAs | Ernst & Young Hua Ming LLP |
| Remuneration to the domestic CPAs | 290 |
| Years of the domestic CPAs offering auditing services | 10 years |
| Name of CPAs of the domestic accounting firm | Guo Jing and Zhang Bin |
| Years of CPAs of the domestic accounting firm offering auditing services | 1 year (Guo Jing) and 3 years (Zhang Bin) |
| Name | Remuneration | |
| Accounting firm for internal control audit | Ernst & Young Hua Ming LLP | 45 |
| Sponsor | Huatai United Securities Co., Ltd. | 200 |
Note to Engagement/Disengagement of the CPAs
□ Applicable √ Not applicable
On August 5, 2022, the Proposal on Continuing the Employment of the Financial Audit Body andInternal Control Audit Body for 2022 was reviewed and adopted at the second extraordinary general
meeting of shareholders in 2022. Accordingly, Ernst & Young Hua Ming LLP continued to be appointedas the Company’s financial audit body and internal control audit body for 2022.Note to the replacement of the CPAs during the auditing
□ Applicable √ Not applicable
VII. Delisting Risk(I) Reasons for the delisting risks warning
□ Applicable √ Not applicable
(II) Solution to be adopted by the Company
□ Applicable √ Not applicable
(III) Termination of the listing and its reasons
□ Applicable √ Not applicable
VIII. Events Related to Bankruptcy and Reorganization
□ Applicable √ Not applicable
IX. Major Lawsuit and Arbitration Issues
□ Significant lawsuits and arbitrations in the reporting period
√ No significant lawsuit or arbitration in the reporting period
X. Punishment and Correction on the Listed Company as well as its Directors, Supervisors, SeniorManagement, Controlling Shareholders and Actual Controller due to Suspect of Law Violations
□ Applicable √ Not applicable
XI. Integrity Status of the Company, its Controlling Shareholder and Actual Controller during theReporting Period
√ Applicable □ Not applicable
During the reporting period, the Company, its controlling shareholder and actual controller were allenjoying good reputation in integrity, and there was no failure to perform any effective judgment of thecourt, or large amount of outstanding due debts remaining unpaid.XII. Significant Related Transactions(I) Related Transactions Related with Day-to-Day Operations
1. Matters already disclosed in the interim announcement but with no progress or change insubsequent implementation
□ Applicable √ Not applicable
2. Matters already disclosed in the interim announcement but with no progress or change insubsequent implementation
√ Applicable □ Not applicable
On April 14, 2022, the Proposal on Estimated Daily Related Transactions of the Company and itsSubsidiaries in 2022 was reviewed and adopted with 6 votes in favor, 0 vote against and 0 abstention atthe 25
thmeeting of the fourth board of directors. The related directors Zhang Jian, Duan Hua and ZhangGege withdrew from voting. For details, please refer to the relevant announcement published on thewebsite of Shanghai Stock Exchange on April 16, 2022.
The estimated and actual daily related transactions between the Company and related parties in2022 are as follows:
In: Yuan ‘0000
| Trading party | Type of related transaction | Related party | Estimated amount in 2022 | Actual amount in 2022 |
| Company and its | Purchasing goods from the related party | Tianjin Jiema Electric Technology Co., Ltd. | 5,000.00 | 2,221.29 |
| subsidiaries | Selling goods to the related party | 200.00 | ||
| Providing services to the related party | 150.00 | 40.06 | ||
| Leasing a house to the related party | 1,500.00 | 990.33 | ||
| Renting equipment from the related party | 100.00 | |||
| Other daily related transactions | 300.00 | 200.00 | ||
| Subtotal | 7,250.00 | 3,451.68 | ||
| Company | Renting a house from the related party | Duan Hua | 500.00 | 476.19 |
| Accepting the services and goods provided by the related party | Shangqiu Yichong Trading Co., Ltd. | 5,000.00 | 1,897.47 | |
| Total | 12,750.00 | 5,825.34 | ||
3. Matters not disclosed in the interim announcement
□ Applicable √ Not applicable
(II) Related transactions concerning acquisition and sales of assets or equity
1. Matters already disclosed in the interim announcement but with no progress or change insubsequent implementation
□ Applicable √ Not applicable
2. Matters already disclosed in the interim announcement but with no progress or change insubsequent implementation
□ Applicable √ Not applicable
3. Matters not disclosed in the interim announcement
□ Applicable √ Not applicable
4. If a performance agreement is involved, the achievement of performance during the reportingperiod should be disclosed
□ Applicable √ Not applicable
(III) Significant related transactions concerning joint investment in foreign countries
1. Matters already disclosed in the interim announcement but with no progress or change insubsequent implementation
□ Applicable √ Not applicable
2. Matters already disclosed in the interim announcement but with no progress or change insubsequent implementation
□ Applicable √ Not applicable
3. Matters not disclosed in the interim announcement
□ Applicable √ Not applicable
(IV) Associated Rights of Credit and Liabilities
1. Matters already disclosed in the interim announcement but with no progress or change insubsequent implementation
□ Applicable √ Not applicable
2. Matters already disclosed in the interim announcement but with no progress or change insubsequent implementation
□ Applicable √ Not applicable
3. Matters not disclosed in the interim announcement
□ Applicable √ Not applicable
(V) Financial business between the Company and the financial company with an associatedrelationship, the Company's holding financial company and the related party
□ Applicable √ Not applicable
(VI) Others
□ Applicable √ Not applicable
XIII. Important Contracts and Implementation(I) Custody, contacting and leases
1. Custody
□ Applicable √ Not applicable
2. Contracting
□ Applicable √ Not applicable
3. Leases
□ Applicable √ Not applicable
(II) Guarantees
√ Applicable □ Not applicable
In: Yuan Currency: RMB
| Outward guarantees by the Company (excluding guarantee to the subsidiaries) | |||||||||||||||
| Guarantors | Relationship between the guarantor and the Company | Guarantees | Amount guaranteed | Guarantee occurrence date (date of signing the agreement) | Guarantee starting date | Guarantee due date | Type of guarantee | Collateral (if any) | Is the guarantee finished | Has the guarantee been overdue | Overdue amount | About counter guarantee | Guarantee to related party? | Associated relations hip | |
| Total amount of guarantees incurred during the reporting period (excluding guarantees to subsidiaries) | 0 | ||||||||||||||
| Total amount of guarantees incurred at the end of the reporting period (A) (excluding guarantees to subsidiaries) | 0 | ||||||||||||||
| Guarantee to the subsidiaries provided by the Company and its subsidiaries | |||||||||||||||
| Total amount of guarantee to the subsidiaries incurred in the reporting period | 844,138,346.08 | ||||||||||||||
| Total balance of guarantees to the subsidiaries at the end of the reporting period (B) | 454,170,625.88 | ||||||||||||||
| About total amount of guarantees provided by the Company (including guarantees to subsidiaries) | |||||||||||||||
| Total amount of guarantees (A+B) | 454,170,625.88 | ||||||||||||||
| Proportion of the total amount of guarantees in the Company’s net assets (%) | 6.76 | ||||||||||||||
| Including: | |||||||||||||||
| Amount of guarantees offered to the shareholders, actual controller and its related parties (C) | 0 | ||||||||||||||
| Amount of guarantee for liabilities directly or indirectly offered to the guarantees with the asset-liability ratio exceeding 70% (D) | 394,184,340.52 | ||||||||||||||
| Amount of total guarantees exceeding 50% of the net assets (E) | 0 | ||||||||||||||
| Total amount of the aforesaid three guarantees (C+D+E) | 394,184,340.52 |
| Note to the immature guarantees which may bear joint liability for repayment | N/A |
| Note to the guarantees | The 2021 Annual General Meeting held on May 7, 2022 reviewed and approved the "Proposal on the Company's Guarantee Plan for Year 2022", and the above-mentioned guarantees have been reviewed and approved by the Company's General Meeting. |
(III) Entrusting others to manage the cash assets
1. Entrusted wealth management
(1) Overall of entrusted wealth management
√ Applicable □ Not applicable
In: Yuan’0000 Currency: RMB
| Type | Capital source | Amount incurred | Immature balance | Overdue amount unrecovered |
| Bank financial product | Self-owned funds | 58,680.00 | 6,870.00 | 0 |
Note: The amount of entrusted wealth management in the above table is the highestsingle-day purchase balance of this type of wealth management product.Other Information
□ Applicable √ Not applicable
(2) Single entrusted wealth management
√ Applicable □ Not applicable
In: Yuan’0000 Currency: RMB
| Trustee | Type of entrusted wealth management | Amount of entrusted wealth management | Commencement date of entrusted wealth management | Expiration date of entrusted wealth management | Sources of funds | Annual Yield | Actual Income or loss | Actual recovery | Has it gone through statutory procedure | Is there any entrusted wealth management plan in the future |
| ICBC | Structured deposit | 30,000 | 2022.1.12 | 2022.7.18 | Self-owned funds | 2.36% | 362.11 | Recovered | Yes | Yes |
| Bohai Bank | Structured deposit | 20,000 | 2022.1.26 | 2022.5.5 | Self-owned funds | 2.76% | 149.96 | Recovered | Yes | Yes |
Note: The above table shows the wealth management products of the Company's singlesignificant amount of structured deposits during the reporting period, and other open-end wealthmanagement products are Not applicable.Other Information
□ Applicable √ Not applicable
(3) Provisions for impairment of entrusted wealth management
□ Applicable √ Not applicable
2. Entrusted loans
(1) Overall entrusted loans
□ Applicable √ Not applicable
Other Information
□ Applicable √ Not applicable
(2) Single entrusted loans
□ Applicable √ Not applicable
Other Information
□ Applicable √ Not applicable
(3) Provisions for impairment of entrusted loans
□ Applicable √ Not applicable
3. Other Information
□ Applicable √ Not applicable
(IV) Other important contracts
□ Applicable √ Not applicable
XIV. Note to Other Major Events that Have Significant Impact on Investors' ValueJudgments and Investment Decisions
√ Applicable □ Not applicable
During the reporting period, subsidiaries Henan Vehicle and Aima Share acquired thequalifications of high-tech enterprises, and may enjoy income tax preference policy for high-techenterprises for three consecutive years (i.e. 2022, 2023 and 2024); that means they paycorporate income tax at a rate of 15%.
Section 7 Changes in Common Shares and Information about
Shareholders
I. Changes in Shares Capital(I) Table of changes in shares
1. Table of changes in shares
In: Share
| Before the change | Increase or decrease of the change (+, -) | After the change | |||||||
| Quantity | Percentage (%) | New shares issued | Bonus shares | Shares converted from capital reserves | Others | Subtotal | Quantity | Percentage (%) | |
| I. Restricted shares | 338,660,003 | 83.90 | 6,960,000 | 122,436,000 | -39,530,003 | 89,865,997 | 428,526,000 | 74.57 | |
| 1. Shares held by the state | |||||||||
| 2. Shares held by the | |||||||||
| state-owned legal entities | |||||||||
| 3. Other domestic shares | 338,660,003 | 83.90 | 6,960,000 | 122,436,000 | -39,530,003 | 89,865,997 | 428,526,000 | 74.57 | |
| Including: shares held by Domestic non-state-owned legal entities | 40,593,003 | 10.06 | 6,773,200 | -23,660,003 | -16,886,803 | 23,706,200 | 4.13 | ||
| Shares held by domestic individuals | 298,067,000 | 73.84 | 6,960,000 | 115,662,800 | -15,870,000 | 106,752,800 | 404,819,800 | 70.44 | |
| 4. Shares held by foreign investors | |||||||||
| Including: shares held by foreign legal entities | |||||||||
| Shares held by foreign individuals | |||||||||
| II. Tradable shares without selling restrictions | 65,000,000 | 16.10 | 41,764,001 | 39,410,003 | 81,174,004 | 146,174,004 | 25.43 | ||
| 1. RMB commo | 65,000,000 | 16.10 | 41,764,001 | 39,410,003 | 81,174,004 | 146,174,004 | 25.43 |
| n shares | |||||||||
| 2. Domestic listed foreign shares | |||||||||
| 3. Overseas listed foreign shares | |||||||||
| 4. Others | |||||||||
| III. Total shares | 403,660,003 | 100 | 6,960,000 | 164,200,001 | -120,000 | 171,040,001 | 574,700,004 | 100 |
2. Statement on the change in shares
√ Applicable □ Not applicable
(1) On January 24, 2022, the Company completed the registration of the first granting underthe Restricted Stock Incentive Plan 2021, and granted 6,780,000 restricted shares to 105incentive objects for the first time. As a result, the Company’s share capital increased from403,660,003 shares to 410,440,003 shares.
(2) On May 19, 2022, the Company completed the registration of the reserved sharegranting under the Restricted Stock Incentive Plan 2021, and granted 180,000 reservedrestricted shares to 14 incentive objects. As a result, the Company’s share capital increasedfrom 410,440,003 shares to 410,620,003 shares.
(3) On June 9, 2022, the Company repurchased and cancelled 120,000 restricted shares,which were granted under the Restricted Stock Incentive Plan 2021 for the first time, from fourincentive objects who were no longer eligible for incentives. As a result, the Company’s sharecapital changed from 410,620,003 shares to 410,500,003 shares.
(4) On June 28, 2022, the Company completed the annual equity distribution for 2021. Thisprofit distribution and capitalization were based on the Company’s total capital of 410,500,003shares, and 0.4 share converted from capital reserves was issued for every share, totaling164,200,001 shares issued. As a result, the Company’s share capital changed from 410,500,003shares to 574,700,004 shares.
3. Effect of changes in shares on financial indicators such as earnings per share and netasset per share (if any) over the last year and the last reporting period
√ Applicable □ Not applicable
During the reporting period, the Company completed the capitalization of capital reservesand implemented the restricted stock incentive plan. As a result, the Company’s share capitalchanged from 403,660,003 shares to 574,700,004 shares. The above-mentioned change inshares has resulted in the dilution of the Company's basic earnings per share and net assets pershare in 2022 and other financial indicators.
4. Other contents that the Company deems necessary or the securities regulatoryauthorities require disclosing
□ Applicable √ Not applicable
(II) Changes in restricted shares
√ Applicable □ Not applicable
In: Share
| Name of shareholders | Number of restricted shares at the beginning of the year | Number of shares released from restriction on sales in the year | Increase in the number of restricted shares in the year | Number of restricted shares at the end of the year | Reason for restriction on sales | Date of release from restriction on sales |
| Zhang Jian | 282,317,000 | 112,926,800 | 395,243,800 | Non-tradable for 36 months from IPO | June 15, 2024 | |
| Changxing Dingai Investment Management Partnership (Limited Partnership) | 16,933,000 | 6,773,200 | 23,706,200 | Non-tradable for 36 months from IPO | June 15, 2024 | |
| CITIC Securities Investment Co., Ltd. | 8,400,000 | -8,400,000 | Non-tradable for 12 months from IPO | June 15, 2022 | ||
| Goldstone Zhiyu Equity Investment (Hangzhou) Partnership (LLP) | 8,260,001 | -8,260,001 | Non-tradable for 12 months from IPO | June 15, 2022 | ||
| Changxia GoldStone (Wuhan) Equity Investment Fund Partnership (Limited Partnership) | 3,500,001 | -3,500,001 | Non-tradable for 12 months from IPO | June 15, 2022 | ||
| Goldstone Haofeng Equity Investment (Hangzhou) Partnership (LLP) | 3,500,001 | -3,500,001 | Non-tradable for 12 months from IPO | June 15, 2022 | ||
| Peng Wei | 3,150,000 | -3,150,000 | Non-tradable | June 15, 2022 |
| for 12 months from IPO | ||||||
| Han Jianhua | 3,150,000 | -3,150,000 | Non-tradable for 12 months from IPO | June 15, 2022 | ||
| Li Shishuang | 3,150,000 | -3,150,000 | Non-tradable for 12 months from IPO | June 15, 2022 | ||
| Liu Jianxin | 3,150,000 | -3,150,000 | Non-tradable for 12 months from IPO | June 15, 2022 | ||
| Qiao Baogang | 3,150,000 | -3,150,000 | Non-tradable for 12 months from IPO | June 15, 2022 | ||
| Incentive objects of restricted stock granted in 2021 | 9,576,000 | 9,576,000 | Restricted stock granted in 2021 | — | ||
| Total | 338,660,003 | -39,410,003 | 129,276,000 | 428,526,000 | / | / |
II. Securities Issuance and Listing(I) Issuance of securities during the reporting period
√ Applicable □ Not applicable
In: Share Currency: RMB
| Type of shares and its derivative securities | Date of issuance | Issuing price (or interest rate) | Shares issued | Date of listing | Quantity approved for being listed and traded | Expiry date of trading |
| Type of common stock | ||||||
| Restricted stock | January 24, 2022 | RMB 20.23/share | 6,780,000 | |||
| Restricted stock | May 19, 2022 | RMB 20.23/share | 180,000 | |||
| Convertible bonds and convertible bonds with warrants | ||||||
Note to issuance of securities during the reporting period (for the bonds with different interestrates during the period, please explain separately):
√ Applicable □ Not applicable
1. According to the Restricted Stock Incentive Plan 2021, the Company granted 6,780,000restricted shares to 105 incentive objects for the first time. On January 24, 2022, the Companycompleted the registration of the first granting under the Restricted Stock Incentive Plan 2021.
2. According to the Restricted Stock Incentive Plan 2021, the Company granted 180,000reserved restricted shares to 14 incentive objects. On May 19, 2022, the Company completedthe registration of the reserved share granting under the Restricted Stock Incentive Plan 2021.(II) Changes in total common shares and shareholders structure, as well as in assets andliabilities structure
√ Applicable □ Not applicable
During the reporting period, the Company completed the capitalization of capital reservesand implemented the restricted stock incentive plan. As a result, the Company’s share capitalchanged from 403,660,003 shares to 574,700,004 shares. At the end of last year, the Companyhad total assets of RMB 13,396,944,911.18, and total liabilities of RMB 8,417,177,181.15, withan asset-liability ratio of 62.83%. At the end of the reporting period, the Company had total assetsof RMB 18,471,355,153.82, and total liabilities of RMB 11,737,033,435.82, with an asset-liabilityratio of 63.54%.(III) Existing staff-held shares
□ Applicable √ Not applicable
III. Shareholders and Actual Controller(I) Total number of shareholders
| Total number of common shareholders up to the end of the reporting period | 25,994 |
| Total number of common shareholders as at the end of the last month prior to the disclosure day of the annual report | 13,948 |
| Total number of preferred shareholders whose voting rights have been restored as at the end of the reporting period | 0 |
| Total number of preferred shareholders whose voting rights have been restored as at the end of the month prior to the date of the annual report | 0 |
(II) Table of top 10 shareholders, top 10 common shares (or tradable shares withoutselling restrictions) by the end of reporting period
In: Share
| Shareholdings by top 10 shareholders | |||||||
| Names of the Shareholders (Full name) | Increase/Decrease during the reporting period | Number of shares held at the end of the reporting period | Percentage (%) | Number of restricted shares | Status of shares pledged, marked or frozen | Nature of the shareholder | |
| Status of the shares | Quantity | ||||||
| Zhang Jian | 112,926,800 | 395,243,800 | 68.77 | 395,243,800 | Nil | Domestic natural person | |
| Changxing Dingai Investment Management Partnership (LLP) | 6,773,200 | 23,706,200 | 4.12 | 23,706,200 | Nil | Others | ||
| Hong Kong Securities Clearing Company Ltd. | 12,017,351 | 12,017,351 | 2.09 | Nil | Domestic non-state-owned legal entity | |||
| Han Jianhua | 1,260,000 | 4,410,000 | 0.77 | Nil | Domestic natural person | |||
| Peng Wei | 997,840 | 4,147,840 | 0.72 | Nil | Domestic natural person | |||
| CITIC Securities Investment Co., Ltd. | -4,416,747 | 3,983,253 | 0.69 | Nil | Domestic natural person | |||
| Goldstone Zhiyu Equity Investment (Hangzhou) Partnership (Limited Partnership) | 310,679 | 3,810,680 | 0.66 | Nil | Others | |||
| Li Shishuang | 657,121 | 3,807,121 | 0.66 | Nil | Others | |||
| Qiao Baogang | 627,000 | 3,777,000 | 0.66 | Nil | Domestic natural person | |||
| Liu Jianxin | 461,080 | 3,611,080 | 0.63 | Nil | Domestic natural person | |||
| Shareholdings of top 10 shareholders of tradable shares without selling restrictions | ||||||||
| Names of the Shareholders | Number of tradable shares without selling restrictions | Type and quantity of shares | ||||||
| Type | Quantity | |||||||
| Hong Kong Securities Clearing Company Ltd. | 12,017,351 | RMB common shares | 12,017,351 | |||||
| Han Jianhua | 4,410,000 | RMB common shares | 4,410,000 | |||||
| Peng Wei | 4,147,840 | RMB common shares | 4,147,840 | |||||
| CITIC Securities Investment Co., Ltd. | 3,983,253 | RMB common shares | 3,983,253 |
| Goldstone Zhiyu Equity Investment (Hangzhou) Partnership (Limited Partnership) | 3,810,680 | RMB common shares | 3,810,680 |
| Li Shishuang | 3,807,121 | RMB common shares | 3,807,121 |
| Qiao Baogang | 3,777,000 | RMB common shares | 3,777,000 |
| Liu Jianxin | 3,611,080 | RMB common shares | 3,611,080 |
| Beijing Lexue Private Fund Management Partnership (Limited Partnership)—Lexue Private Securities Investment Fund | 3,460,886 | RMB common shares | 3,460,886 |
| Invesco Great Wall Fund Management Co., Ltd.—China Life Insurance Co., Ltd.—Dividend Insurance — Invesco Great Wall-China Life Balanced Stock Portfolio-Single Asset Management Plan (available for sale) | 2,567,620 | RMB common shares | 2,567,620 |
| Explanation on repurchase account of top 10 shareholders | Nil | ||
| Explanation on delegated voting rights, entrusted voting rights, abstained voting rights of the aforesaid shareholders | Nil | ||
| Notes to the related relation or consistent actions of the above-mentioned shareholders | CITIC Investment and Goldstone Zhiyu are enterprises under the same control of CITIC Securities Co., Ltd. and are concerted actors. Apart from the above circumstance, it is not known whether there is an associated relationship among the other shareholders mentioned above, and it is also unknown whether the other shareholders are concerted actors as stipulated in the Measures for the Administration of the Acquisition of Listed Companies. | ||
| Explanation on preference stockholders with recovered voting rights and the number of stocks held by them | Nil | ||
Number of shares held by top ten shareholders with selling restrictions and the sellingrestrictions
√ Applicable □ Not applicable
In: Share
| No. | Names of shareholders with selling restrictions | Number of restricted shares | Restricted shares allowed for public trading | Selling restrictions | |
| Date when public trading is allowed | Increase in restricted shares allowed for public trading | ||||
| 1 | Zhang Jian | 395,243,800 | June 15, 2024 | 395,243,800 | Non-tradable for 36 months from IPO |
| 2 | Changxing Dingai Investment Management Partnership (LLP) | 23,706,200 | June 15, 2024 | 23,706,200 | Non-tradable for 36 months from IPO |
| 3 | Ren Yong | 1,680,000 | Non-tradable due to stock incentive | ||
| 4 | Gao Hui | 1,680,000 | Non-tradable due to stock incentive | ||
| 5 | Luo Qingyi | 840,000 | Non-tradable due to stock incentive | ||
| 6 | Zhou Sixiu | 560,000 | Non-tradable due to stock incentive | ||
| 7 | Yang Wanli | 560,000 | Non-tradable due to stock incentive | ||
| 8 | Zheng Hui | 560,000 | Non-tradable due to stock incentive | ||
| 9 | Hu Yupeng | 280,000 | Non-tradable due to stock incentive | ||
| 10 | Yang Junwei | 280,000 | Non-tradable due to stock incentive | ||
| Notes to the related relation or consistent actions of the above-mentioned shareholders | Nil | ||||
Note: The Company issued the Restricted Stock Incentive Plan on November 17, 2021, andthe incentive objects could not apply for public trading until and unless the performance appraisalindicators of the incentive plan were achieved.(III) Strategic investors or general legal entity who became the top 10 shareholders dueto placing of new shares
□ Applicable √ Not applicable
IV. Controlling Shareholders and Actual Controllers(I) Controlling shareholder
1. Legal entity
□ Applicable √ Not applicable
2. Natural person
√ Applicable □ Not applicable
| Name | Zhang Jian |
| Nationality | China |
| Residency in other countries or regions (yes/no) | No |
| Main occupations and positions | Chairman of the Board & General Manager |
3. Special statement about no controlling shareholder in the Company
□ Applicable √ Not applicable
4. Explanation on changes in controlling shareholders during the reporting period
□ Applicable √ Not applicable
5. Framework of the ownership and controlling relationship between the Company and itscontrolling shareholder
√ Applicable □ Not applicable
(II) Actual controller
1. Legal entity
□ Applicable √ Not applicable
2. Natural person
√ Applicable □ Not applicable
| Name | Zhang Jian, Zhang Gege |
| Nationality | China |
| Residency in other countries or regions (yes/no) | No |
| Main occupations and positions | Zhang Jian is the Chairman of the Board and the General Manager of the Company; Zhang Gege is a director of the Company, the executive director and general manager of Suiwanwan, and the executive partner of Changxing Dingai. |
| Controlling interests in other domestically and overseas listed companies in the past | Not applicable |
10 years
3. Special statement about no actual controller in the Company
□ Applicable √ Not applicable
4. Explanation on changes in the Company’s Control during the reporting period
□ Applicable √ Not applicable
5. Framework of ownership and controlling relationship between the Company and theactual controllers
√ Applicable □ Not applicable
6. The actual controller controls the Company by way of Trust or other AssetsManagement
□ Applicable √ Not applicable
(III) Other information about Controlling shareholders and actual controllers
□ Applicable √ Not applicable
V. The Proportion of the Accumulated Number of Shares Pledged by The ControllingShareholders or the Largest Shareholder of the Company, together with The PartiesActing in Concert with Them to the Number of Shares of the Company Held by ThemAmounts to More Than 80%
□ Applicable √ Not applicable
VI. Other Legal Entity Shareholder Holding More Than 10%
□ Applicable √ Not applicable
VII. Restrictions on Shareholding Reduction
□ Applicable √ Not applicable
VIII. Specific Implementation of Share Repurchase During the Reporting Period
□ Applicable √ Not applicable
Section 8 Preferred Shares
□ Applicable √ Not applicable
Section 9 Corporate Bonds
I. Enterprise Bonds, Corporate Bonds and Debt Financing Instruments for Non-financialEnterprises
□ Applicable √ Not applicable
II. Convertible Corporate Bonds
√ Applicable □ Not applicable
(I) Issuance of convertible bonds
√ Applicable □ Not applicable
With the approval of CSRC (Z.J.X.K. [2022] No.3038 Document), the Company publiclyissued 20 million convertible corporate bonds on February 23, 2023, with a face value of RMB100 each, totaling RMB 2 billion. According to the Credit Rating Report on the Public Issuanceof Convertible Bonds by AIMA Technology Group Co., Ltd. in 2022 issued by CSCI Pengyuan,the corporate credit rating of the Company is AA, and the credit rating of the convertible bondsissued is AA. With the approval of the Self-Regulatory Decision (No. 41 [2023] Document) ofShanghai Stock Exchange, the Company’s RMB 2 billion convertible corporate bonds have beenlisted for trading on Shanghai Stock Exchange since March 20, 2023, under the short name of“AIMA Convertible Bonds” and the bond code of “113666”.(II) Convertible bond holders and guarantors during the reporting period
□ Applicable √ Not applicable
(III) Changes in convertible bonds during the reporting period
□ Applicable √ Not applicable
Accumulated convertible bonds converted into shares during the reporting period
□ Applicable √ Not applicable
(IV) Adjustments in the price of conversion into shares
□ Applicable √ Not applicable
(V) The Company’s liabilities, credit changes and cash arrangements for debt repaymentin future years
□ Applicable √ Not applicable
(VI) Other information about convertible bonds
□ Applicable √ Not applicable
Section 10 Financial report
I. Auditor’s Report"√ Applicable" "□ Inapplicable"
Ernst & Young Hua Ming (2023) Shen Zi NO.60968971_L01
AIMA Technology Group Co,. LTD.
To all shareholders of AIMA Technology Group Co,. LTD.,
I. Opinion
We have audited the financial statements of AIMA Technology Group Co,. LTD. (the“Company”), which comprise the consolidated and company balance sheets as at 31 December2022, and the consolidated and company income statements, the consolidated and companystatement of changes in equity and the consolidated and company statement of cash flows forthe year then ended, and notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all materialrespects, the financial position of the consolidated and company as at 31 December 2022, andof its financial performance and cash flows for the year then ended in accordance withAccounting Standards for Business Enterprises (“ASBEs”).
II. Basis for opinion
We conducted our audit in accordance with China Standards on Auditing (“CSAs”). Ourresponsibilities under those standards are further described in the Auditor’s responsibilities forthe audit of the financial statements section of our report. We are independent of the Companyin accordance with China Code of Ethics for Certified Public Accountants (the “Code”), and wehave fulfilled our other ethical responsibilities in accordance with the Code. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
III. Key audit matters
Key audit matters are those matters that, in our professional judgement, were of mostsignificance in our audit of the financial statements of the current period. These matters wereaddressed in the context of our audit of the financial statements as a whole, and in forming ouropinion thereon, and we do not provide a separate opinion on these matters. For each matterbelow, our description of how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the auditof the financial statements section of our report, including in relation to these matters.Accordingly, our audit included the performance of procedures designed to respond to ourassessment of the risks of material misstatement of the financial statements. The results of ouraudit procedures, including the procedures performed to address the matters below, provide thebasis for our audit opinion on the accompanying financial statements.
| Key audit matters: | How our audit addressed the key audit matter： |
| Sales rebates and incentives | |
| The book value of sales rebates and incentives payable in the consolidated financial statements on December 31, 2022 was RMB 437,665,926.26, and the book value of sales rebates and incentives payable in the Company's financial statements was RMB 154,468,061.13. It is stipulated in the distribution agreement signed with the dealers that sales rebates and other specific incentives should be given based on the purchase volume to offset against revenue. On the balance sheet date, sales rebates and incentives are estimated based on the dealers’ purchase volume and other rebates and promotion policies. Due to the large number of dealers and the various forms of sales rebates and incentives, the purchase volume of each dealer and the achievement of other performances needs to be considered in order to determine the period of sales rebates and incentives. The calculation of sales rebates and incentives depends on the judgment and estimate of the management. The accounting policies, accounting estimates and disclosures for the sales rebates and | Our audit procedures performed on sales rebates and incentives mainly include: 1) understand the internal control of sales rebate and incentives management, perform walkthrough and control test on identified controls; 2) check the distribution agreements signed with several dealers in 2022, and examine the provisions in the distribution agreements on sales rebates and incentives; 3) select a number of dealers to check whether the sales rebates and incentives obtained by them comply with the relevant sales policies, and check the application of these dealers' sales rebates and incentives; 4) review the year-end rebate provision process prepared by management and select samples to review the relevant supporting documents; 5) execute the subsequent review procedure to check the sales rebate payable by the Company at the end of the year and the actual payment status thereafter. |
| incentives are set out in “V. 38.”, “V. 43.” and “VII. 38. ”. | |
| Bad debt provision of accounts receivable | |
| The book value of accounts receivable in the consolidated financial statements on December 31, 2022 was RMB 290,365,547.11, and the book value of the accounts receivable in the Company's financial statements was RMB 132,291,280.96. The management considers the credit risk characteristics of different customers and evaluates the expected credit losses (“ECLs”) of accounts receivable based on the aging portfolio. Then, on the basis of ECLs, the bad debt provision is measured according to the ECLs amount equivalent to the entire lifetime. The management considers reasonable and supportable information about past events, current conditions and forecasts of future economic conditions when assessing ECLs. The dealers’ customers are scattered and numerous, and the estimation of bad-debt provision for accounts receivable depends on the judgment and estimation of the management. The accounting policies and disclosures for bad-debt provision for accounts receivable are set out in “V. 10.”, “V. 43.”, “VII. 5.” in the financial report of this section, “XVII. 1.". | Our audit procedures performed on bad debt provision for accounts receivable mainly include: 1) for the accounts receivable that have been individually assessed for impairment, interview the managers of the sales department and the legal department, and review the basis for the management to estimate the bad debt provision, including the communication correspondences between the management and the relevant customers, the management’s assessment on credit risks of the customers in consideration of their operating conditions and historical payment record, etc.; 2) for the accounts receivable assessed by combination, review the management's setting of the combination of credit risk characteristics, key information such as the aging and credit quality records of each combination by sampling; and with the combination of credit risk characteristics (i.e. aging combination) as the base, review the management’s basis to assess the credit risk and ECLs amount, including testing historical default data, evaluating adjustments to historical loss rates based on current economic conditions, and evaluating forward-looking information by examining publicly available macroeconomic factors, and check the actual credit losses incurred during the year; 3) check the subsequent collection of accounts receivable, and consider the impact of subsequent events on the estimation of bad debt provision; 4) retest the calculation process of bad debt provision for accounts receivable, and review the amount of bad debt provision; 5) review the disclosure of bad debt provision for accounts receivable in the financial statements. |
IV. Other informationThe management of AIMA Technology Group Co,. LTD. is responsible for the otherinformation. The other information comprises the information included in the Annual Report,other than the financial statements and our auditor’s report thereon.Our opinion on the financial statements does not cover the other information and we do notexpress any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistentwith the financial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated.If, based on the work we have performed, we conclude that there is a material misstatementof this other information, we are required to report that fact. We have nothing to report in thisregard.V. Responsibilities of the management and those charged with governance for thefinancial statements
The management of the Company is responsible for the preparation and fair presentationof the financial statements in accordance with ASBEs, and for designing, implementing andmaintaining such internal control as the management determines is necessary to enable thepreparation of financial statements that are free from material misstatement, whether due tofraud or error.
In preparing the financial statements, the management is responsible for assessing AIMATechnology Group Co,. LTD.’s ability to continue as a going concern, disclosing, as applicable,matters related to going concern and using the going concern basis of accounting unless eitherintend to liquidate AIMA Technology Group Co,. LTD. or to cease operations or have no realisticalternative but to do so.
Those charged with governance is responsible for overseeing AIMA Technology Group Co,.LTD.’s financial reporting process.
VI. Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statementsas a whole are free from material misstatement, whether due to fraud or error, and to issue anauditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,but is not a guarantee that an audit conducted in accordance with CSAs will always detect amaterial misstatement when it exists. Misstatements can arise from fraud or error and aregenerally considered material if, individually or in the aggregate, they could reasonably beexpected to influence the economic decisions of users taken on the basis of these financialstatements.
As part of an audit in accordance with CSAs, we exercise professional judgement andmaintain professional scepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements,whether due to fraud or error, design and perform audit procedures responsive to those risks,and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.The risk of not detecting a material misstatement resulting from fraud is higher than for oneresulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances, but not for the purpose of expressing anopinion on the effectiveness of internal control.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern basisof accounting and, based on the audit evidence obtained, whether a material uncertainty existsrelated to events or conditions that may cast significant doubt on the Company’s ability tocontinue as a going concern. If we conclude that a material uncertainty exists, we are requiredto draw attention in our auditor’s report to the related disclosures in the financial statements or,if such disclosures are inadequate, to modify our opinion. Our conclusions are based on theaudit evidence obtained up to the date of our auditor’s report. However, future events orconditions may cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements,including the disclosures, and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of theentities or business activities within the Company to express an opinion on the financial
statements. We are responsible for the direction, supervision and performance of the groupaudit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, theplanned scope and timing of the audit and significant audit findings, including any significantdeficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with thosecharged with governance all relationships and other matters that may reasonably be thought tobear on our independence, and where applicable, related safeguards.From the matters communicated with those charged with governance, we determine thosematters that were of most significance in the audit of the financial statements of the current periodand are therefore the key audit matters. We describe these matters in our auditor’s report unlesslaw or regulation precludes public disclosure about the matter or when, in extremely rarecircumstances, we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits of such communication.
Ernst & Young Hua Ming LLP Chinese Certified Public Accountant :Guo Jing
Chinese Certified Public Accountant :Zhang Bin
Beijing, the People’s Republic of China 14 April 2023
II. Financial Statements
Consolidated Balance SheetDecember 31, 2022Prepared by AIMA Technology Group Co,. LTD.
In: Yuan Currency: RMB
| Items | Notes | December 31, 2022 | December 31, 2021 |
| Current assets: | |||
| Currency funds | VII.1 | 6,633,455,070.29 | 2,846,143,310.70 |
| Settlement reserve | |||
| Inter-bank lending | |||
| Financial assets held for trading | VII.2 | 142,668,675.59 | 1,265,981,818.24 |
| Derivative financial assets | |||
| Notes receivable | |||
| Accounts receivable | VII.5 | 290,365,547.11 | 207,629,801.65 |
| Receivables financing | VII.6 | 8,332,754.00 | 49,295,422.59 |
| Prepayments | VII.7 | 17,554,574.37 | 21,538,098.38 |
| Receivable premium | |||
| Reinsurance accounts receivable | |||
| Reserve for reinsurance contract receivable | |||
| Other receivables | VII.8 | 28,051,920.26 | 150,069,854.58 |
| Including: Interest receivable | 1,160,941.82 | 642,997.45 | |
| Dividend receivable | |||
| Redemptory monetary capital for sale | |||
| Inventories | VII.9 | 810,511,287.32 | 795,689,208.89 |
| Contract assets | |||
| Assets classified as held for sale | |||
| Current portion of non-current assets | VII.12 | 3,524,708,328.77 | |
| Other current assets | VII.13 | 77,023,491.16 | 170,807,953.30 |
| Total current assets | 11,532,671,648.87 | 5,507,155,468.33 | |
| Non-current assets: | |||
| Loan issuing and advance in cash | |||
| Debt investments | |||
| Other debt investments | |||
| Long-term receivables | |||
| Long-term equity investments | VII.17 | 128,152,070.40 | 105,073,280.23 |
| Other equity investments | |||
| Other non-current financial assets | |||
| Investment properties | VII.20 | 254,380,733.64 | 270,188,544.27 |
| Fixed assets | VII.21 | 2,032,623,909.57 | 1,966,085,704.31 |
| Construction in progress | VII.22 | 86,011,318.10 | 114,131,095.16 |
| Productive biological asset | |||
| Oil and Gas Assets | |||
| Right-of-use assets | VII.25 | 42,520,495.80 | 41,226,833.58 |
| Intangible assets | VII.26 | 457,986,772.95 | 332,074,064.23 |
| Development expenditures | |||
| Goodwill | |||
| Long-term prepaid expenses | VII.29 | 43,895,107.41 | 29,394,318.63 |
| Deferred tax assets | VII.30 | 84,023,263.65 | 88,843,633.31 |
| Other non-current assets | VII.31 | 3,809,089,833.43 | 4,942,771,969.13 |
| Total non-current assets | 6,938,683,504.95 | 7,889,789,442.85 | |
| Total assets | 18,471,355,153.82 | 13,396,944,911.18 | |
| Current liabilities: | |||
| Short-term borrowings | VII.32 | 511,250,000.00 | |
| Borrowings from the central bank | |||
| Loans from other banks | |||
| Financial liabilities held for trading | |||
| Derivative financial liabilities | |||
| Notes payable | VII.35 | 6,853,338,997.32 | 4,926,337,711.40 |
| Accounts payable | VII.36 | 2,535,832,081.83 | 2,132,113,371.54 |
| Receipts in advance | VII.37 | 20,619,060.26 | 13,125,994.89 |
| Contract liabilities | VII.38 | 638,429,605.04 | 483,535,624.57 |
| Money from sale of the repurchased financial assets | |||
| Deposits taking and interbank placement | |||
| Acting trading securities | |||
| Income from securities underwriting on commission | |||
| Employee benefits payable | VII.39 | 162,900,880.50 | 113,584,622.70 |
| Taxes and surcharges payable | VII.40 | 154,033,696.44 | 58,301,487.57 |
| Other payables | VII.41 | 564,648,489.37 | 478,360,431.77 |
| Including: interest payable | |||
| Dividends payable | |||
| Service charge and commission payable | |||
| Payable reinsurance | |||
| Liabilities classified as held for sale | |||
| Current portion of non-current liabilities | VII.43 | 5,682,224.67 | 5,923,801.00 |
| Other current liabilities | VII.44 | 24,329,644.32 | 39,990,259.74 |
| Total current liabilities | 11,471,064,679.75 | 8,251,273,305.18 | |
| Non-current liabilities: | |||
| Reserve for insurance contract | |||
| Long-term borrowings | |||
| Bonds payable | |||
| Including: preferred shares | |||
| Perpetual bond | |||
| Lease liabilities | VII.47 | 53,522,636.81 | 46,589,311.07 |
| Long-term payables | |||
| Long-term employee benefits payable | |||
| Provisions | |||
| Deferred income | VII.51 | 198,066,664.29 | 118,883,340.46 |
| Deferred tax liabilities | VII.30 | 14,379,454.97 | 431,224.44 |
| Other non-current liabilities | |||
| Total non-current liabilities | 265,968,756.07 | 165,903,875.97 | |
| Total liabilities | 11,737,033,435.82 | 8,417,177,181.15 | |
| Shareholders’ equity： | |||
| Share capital | VII.53 | 574,700,004.00 | 403,660,003.00 |
| Other equity instruments | |||
| Including: preferred shares | |||
| Perpetual bond | |||
| Capital reserves | VII.55 | 1,977,765,415.63 | 1,935,686,839.31 |
| Less: Treasury shares | 134,953,200.00 | ||
| Other comprehensive income | |||
| Special reserves | |||
| Surplus reserves | VII.59 | 290,784,296.91 | 201,830,001.50 |
| General risks reserves | |||
| Retained earnings | VII.60 | 4,012,879,593.44 | 2,433,650,547.11 |
| Total shareholders’ equity attributable to the parent company | 6,721,176,109.98 | 4,974,827,390.92 | |
| Non-controlling interests | 13,145,608.02 | 4,940,339.11 | |
| Total shareholder’s equity | 6,734,321,718.00 | 4,979,767,730.03 | |
| Total Liabilities and Shareholder’s equity | 18,471,355,153.82 | 13,396,944,911.18 | |
Legal representative: Zhang Jian Financial controller: Zheng Hui Accountingsupervisor: Zheng Hui
Balance Sheet, Parent Company
December 31, 2022Prepared by: AIMA Technology Group Co,. LTD.
In: Yuan Currency: RMB
| Items | Notes | December 31, 2022 | December 31, 2021 |
| Current assets: | |||
| Currency funds | 4,266,016,159.86 | 1,381,189,954.73 | |
| Financial assets held for trading | 73,480,000.00 | 487,120,547.95 | |
| Derivative financial assets | |||
| Notes receivable | |||
| Accounts receivable | XVII.1 | 132,291,280.96 | 90,196,112.09 |
| Receivables financing | |||
| Prepayments | 17,235,274.40 | 8,325,601.78 | |
| Other receivables | XVII.2 | 68,706,590.46 | 226,834,333.25 |
| Including: Interest receivable | 350,530.03 | 255,452.31 | |
| Dividend receivable | |||
| Inventories | 4,103,773.21 | 11,327,860.00 | |
| Contract assets | |||
| Assets classified as held for sale | |||
| Current portion of non-current assets | 3,306,865,479.45 | ||
| Other current assets | 1,908,746.07 | ||
| Total current assets | 7,868,698,558.34 | 2,206,903,155.87 | |
| Non-current assets: | |||
| Debt investments | |||
| Other debt investments | |||
| Long-term receivables | |||
| Long-term equity investments | XVII.3 | 1,141,022,337.98 | 874,946,715.49 |
| Other equity investments | |||
| Other non-current financial assets | |||
| Investment properties | 396,853,576.99 | 426,912,592.10 | |
| Fixed assets | 53,213,577.74 | 62,254,198.18 | |
| Construction in progress | 21,015,488.53 | 49,538,123.48 | |
| Productive biological asset | |||
| Oil and Gas Assets | |||
| Right-of-use assets | 6,601,760.89 | 11,005,806.85 | |
| Intangible assets | 101,097,036.78 | 59,929,778.27 | |
| Development expenditures | |||
| Goodwill | |||
| Long-term prepaid expenses | 21,412,482.96 | 14,285,240.24 | |
| Deferred tax assets | 43,885,593.62 | ||
| Other non-current assets | 1,402,486,388.12 | 4,108,653,262.00 | |
| Total non-current assets | 3,143,702,649.99 | 5,651,411,310.23 | |
| Total assets | 11,012,401,208.33 | 7,858,314,466.10 | |
| Current liabilities: | |||
| Short-term borrowings | |||
| Financial liabilities held for trading | |||
| Derivative financial liabilities | |||
| Notes payable | 4,513,457,663.63 | 1,200,158,631.00 | |
| Accounts payable | 662,254,935.86 | 1,856,691,257.42 | |
| Receipts in advance | 21,964,709.66 | 18,776,664.32 | |
| Contract liabilities | 224,829,884.12 | 259,774,265.64 | |
| Employee benefits payable | 39,866,027.04 | 32,754,658.59 | |
| Taxes and surcharges payable | 29,001,097.89 | 1,220,779.78 | |
| Other payables | 396,088,908.57 | 356,709,196.67 | |
| Including: interest payable | |||
| Dividends payable | |||
| Liabilities classified as held for sale | |||
| Current portion of non-current liabilities | 4,555,680.46 | 4,349,098.29 | |
| Other current liabilities | 8,375,154.72 | 22,063,245.17 | |
| Total current liabilities | 5,900,394,061.95 | 3,752,497,796.88 | |
| Non-current liabilities: | |||
| Long-term borrowings | |||
| Bonds payable | |||
| Including: preferred shares | |||
| Perpetual bond | |||
| Lease liabilities | 2,353,501.71 | 6,909,182.17 | |
| Long-term payables | |||
| Long-term employee benefits payable | |||
| Provisions | |||
| Deferred income | 52,366,165.75 | 35,407,977.88 | |
| Deferred tax liabilities | 10,790,576.99 | ||
| Other non-current liabilities | |||
| Total non-current liabilities | 65,510,244.45 | 42,317,160.05 | |
| Total liabilities | 5,965,904,306.40 | 3,794,814,956.93 | |
| Shareholders’ equity： | |||
| Share capital | 574,700,004.00 | 403,660,003.00 | |
| Other equity instruments | |||
| Including: preferred shares | |||
| Perpetual bond | |||
| Capital reserves | 2,173,462,800.28 | 1,910,845,161.11 | |
| Less: Treasury shares | 134,953,200.00 | ||
| Other comprehensive income | |||
| Special reserves | |||
| Surplus reserves | 290,784,296.91 | 201,830,001.50 | |
| Retained earnings | 2,142,503,000.74 | 1,547,164,343.56 | |
| Total shareholder’s equity | 5,046,496,901.93 | 4,063,499,509.17 | |
| Total Liabilities and Shareholder’s equity | 11,012,401,208.33 | 7,858,314,466.10 |
Legal representative: Zhang Jian Financial controller: Zheng Hui Accountingsupervisor: Zheng Hui
Consolidated Income Statement
2022
In: Yuan Currency: RMB
| Items | Notes | 2022 | 2021 |
| I. Revenue | 20,802,212,994.46 | 15,398,710,870.72 | |
| Including: operating revenue | VII.61 | 20,802,212,994.46 | 15,398,710,870.72 |
| Interest income | |||
| Earned insurance premium | |||
| Service charge and commission income | |||
| II. Total operating costs | 18,647,645,240.06 | 14,659,904,964.29 | |
| Including: cost of sales | VII.61 | 17,398,502,632.36 | 13,593,606,029.56 |
| Interest payment | |||
| Service charge and commission payment | |||
| Surrender Value | |||
| Compensation expenses, net | |||
| Provision of reserve for insurance liabilities, net | |||
| Payment of policy dividend | |||
| Reinsurance expenses | |||
| Taxes and surcharges | VII.62 | 105,061,796.17 | 56,148,586.05 |
| Selling expenses | VII.63 | 587,315,848.35 | 550,605,290.98 |
| Administrative expenses | VII.64 | 432,777,222.67 | 316,594,598.36 |
| Research and development expenses | VII.65 | 506,685,038.01 | 404,084,127.91 |
| Financial expenses | VII.66 | -382,697,297.50 | -261,133,668.57 |
| Including: Interest expenses | 8,693,658.65 | 1,869,959.31 | |
| Interest income | 394,300,036.06 | 264,701,993.37 | |
| Add: Other income | VII.67 | 78,130,046.97 | 22,672,276.61 |
| Investment income (loss is stated with “-”) | VII.68 | -3,687,987.74 | -16,374,983.63 |
| Including: Income from investments in associates and joint ventures | -21,624,009.83 | -39,867,033.98 | |
| Income from the derecognition of financial assets measured at amortised cost | |||
| Exchange income (loss stated with “-“) | |||
| Net position hedging gains (loss stated with “-“) | |||
| Fair value gains (loss is stated with “-”) | VII.70 | -12,120,000.00 | 9,978,187.68 |
| Credit impairment losses (loss is stated with “-”) | VII.71 | 18,855,144.03 | 5,960,856.26 |
| Impairment losses of assets (loss is stated with “-”) | VII.72 | -3,399,468.47 | -11,557,401.98 |
| Gains on disposal of non-current assets (loss is stated with “-”) | VII.73 | 1,286,052.98 | -10,592,015.11 |
| III. Operating profit (loss is stated with “-“) | 2,233,631,542.17 | 738,892,826.26 | |
| Add: Non-operating income | VII.74 | 34,198,940.47 | 30,687,494.40 |
| Less: Non-operating expenses | VII.75 | 40,844,163.45 | 11,326,697.86 |
| IV. Total profit (total loss is stated with “-”) | 2,226,986,319.19 | 758,253,622.80 | |
| Less: Income tax expense | VII.76 | 354,443,490.41 | 90,532,343.61 |
| V. Net Profit (net loss is stated with “-“) | 1,872,542,828.78 | 667,721,279.19 | |
| (I) Classified by continuity of operations | |||
| 1. Profit from continuing operations(loss is stated with “-”) | 1,872,542,828.78 | 667,721,279.19 | |
| 2. Profit from discontinued operations(loss is stated with “-”) | |||
| (II) Classified by ownership | |||
| 1. Profit attributable to owners of the parent(loss is stated with “-”) | 1,873,433,343.24 | 663,998,092.90 | |
| 2. Profit attributable to non-controlling interests(loss is stated with “-”) | -890,514.46 | 3,723,186.29 | |
| VI. Other comprehensive income, net of tax | |||
| (I) Other comprehensive income, net of tax, attributable to owners of the parent | |||
| 1 Other comprehensive income that will not be reclassified to profit or loss | |||
| (1) Remeasurement of a defined benefit plan | |||
| (2) Other comprehensive income using the equity method that will not be reclassified to profit or loss | |||
| (3) Change in the fair value of other equity investments | |||
| (4) Change in the fair value of the entity’s own credit risks | |||
| 2. Other comprehensive income that may be reclassified to profit or loss | |||
| (1) Other comprehensive income using the equity method that may be reclassified to profit or loss | |||
| (2) Change in the fair value of other debt investments | |||
| (3) Amount 109ecognized in other comprehensive income resulting from the reclassification of financial assets | |||
| (4) Provision for credit impairment of receivables financing | |||
| (5) Cash flow hedge reserve (Effective portion of cash flow hedges) | |||
| (6) Exchange differences on translation of foreign currency financial statements | |||
| (7) Others | |||
| (II) Other comprehensive income, net of tax, attributable to non-controlling interests | |||
| VII. Total comprehensive income | 1,872,542,828.78 | 667,721,279.19 | |
| (I) Total comprehensive income attributable to owners of the parent | 1,873,433,343.24 | 663,998,092.90 | |
| (II) Total comprehensive income attributable to non-controlling interests | -890,514.46 | 3,723,186.29 |
| VIII. Earnings per share: | |||
| (I)Basic earning per share (RMB/share) | 3.31 | 1.79 | |
| (II) Diluted earning per share (RMB/share) | 3.31 | 1.79 | |
Where business combinations involving entities under common control occurred in the currentperiod, the net profit achieved by the acquirees before the combinations was RMB0.00, withthe amount for last year being RMB0.00.
Legal representative: Zhang Jian Financial controller: Zheng Hui Accountingsupervisor: Zheng Hui
Income Statement, Parent Company
2022
In: Yuan Currency: RMB
| Items | Notes | 2022 | 2021 |
| I. Operating revenue | XVII.4 | 8,263,777,075.64 | 10,943,228,159.23 |
| Less: cost of sales | XVII.4 | 7,659,354,139.02 | 10,678,372,712.23 |
| Taxes and surcharges | 20,983,232.85 | 10,355,046.08 | |
| Selling expenses | 229,438,863.69 | 365,753,276.19 | |
| Administrative expenses | 237,029,411.46 | 179,546,823.66 | |
| Research and development expenses | 8,732,594.46 | 8,486,096.33 | |
| Financial expenses | -252,311,999.65 | -210,284,084.80 | |
| Including: Interest expenses | 426,973.01 | 646,375.99 | |
| Interest income | 255,146,331.63 | 211,239,319.46 | |
| Add: Other income | 3,541,812.97 | 3,645,613.87 | |
| Investment income (loss is stated with “-”) | XVII.5 | 647,705,392.11 | 511,195,864.47 |
| Including: Income from investments in associates and joint ventures | -30,086,884.58 | -39,589,711.80 | |
| Income from the derecognition of financial assets measured at amortised cost | |||
| Net position hedging gains (loss stated with “-“) | |||
| Fair value gains (loss is stated with “-”) | -12,120,000.00 | 3,122,647.95 | |
| Credit impairment losses (loss is stated with “-”) | -5,964,963.11 | 7,853,598.98 | |
| Impairment losses (loss is stated with “-”) | |||
| Gains on disposal of non-current assets (loss is stated with “-”) | 149,760.98 | 1,101,007.69 |
| II. Operating Profit (loss is stated with “-”) | 993,862,836.76 | 437,917,022.50 | |
| Add: Non-operating income | 5,728,258.49 | 11,846,519.04 | |
| Less: Non-operating expenses | 30,327,413.42 | 5,497,070.24 | |
| III. Total profit (total loss is stated with “-“) | 969,263,681.83 | 444,266,471.30 | |
| Less: Income tax expense | 79,720,727.74 | -23,009,306.85 | |
| IV. Net Profit (net loss is stated with “-“) | 889,542,954.09 | 467,275,778.15 | |
| (I) Profit from continuing operations (net loss is stated with “-”) | 889,542,954.09 | 467,275,778.15 | |
| (II) Profit from a discontinued operation (net loss is stated with “-”) | |||
| V. Other comprehensive income, net of tax | |||
| (I) Other comprehensive income which cannot be re-classified into the gain and loss | |||
| 1. Remeasurement of a defined benefit plan | |||
| 2. Other comprehensive income using the equity method that will not be reclassified to profit or loss | |||
| 3. Change in the fair value of other equity investments | |||
| 4. Change in the fair value of the entity’s own credit risks | |||
| (II) Other comprehensive income that may be reclassified to profit or loss | |||
| 1. Other comprehensive income using the equity method that may be reclassified to profit or loss | |||
| 2. Change in the fair value of other debt investments | |||
| 3. Amount recognised in other comprehensive income resulting from the reclassification of financial assets | |||
| 4. Provision for credit impairment of receivables financing | |||
| 5. Cash flow hedge reserve (Effective portion of cash flow hedges) |
| 6. Exchange differences on translation of foreign currency financial statements | |||
| 7. Others | |||
| VI. Total comprehensive income | 889,542,954.09 | 467,275,778.15 | |
| VII. Earnings per share: | |||
| (I)Basic earning per share (RMB/share) | |||
| (II) Diluted earning per share (RMB/share) | |||
Legal representative: Zhang Jian Financial controller :Zheng Hui Accountingsupervisor: Zheng Hui
Consolidated Statement of Cash Flows
2022
In: Yuan Currency: RMB
| Items | Notes | 2022 | 2021 |
| I. Cash flows from operating activities | |||
| Cash receipts from the sale of goods and the rendering of services | 23,380,468,973.47 | 17,756,512,273.66 | |
| Net increase of customers’ deposit and due from banks | |||
| Net increase of borrowings from the central bank | |||
| Net increase of borrowings from other financial institutions | |||
| Cash received from the premium of the original insurance contract | |||
| Net cash received from the reinsurance business | |||
| Net increase of the reserve from policy holders and investment | |||
| Cash received from interest, service charge and commission | |||
| Net increase of loan from other banks | |||
| Net increase of fund from repurchase business | |||
| Net cash received from securities trading on commission | |||
| Receipts of taxes and surcharges refunds | 116,364,189.79 | 52,669,169.36 | |
| Other cash receipts relating to operating activities | VII.78 | 404,578,051.90 | 151,715,468.87 |
| Total cash inflows from operating activities | 23,901,411,215.16 | 17,960,896,911.89 | |
| Cash payments for goods and services | 16,219,896,063.13 | 13,901,355,060.72 | |
| Net increase of loans and advances to customers | |||
| Net increase of due from central bank and due from other banks | |||
| Cash from payment for settlement of the original insurance contract | |||
| Net increase of the lending capital | |||
| Cash paid for interest, service charge and commission | |||
| Cash for payment of policy dividend | |||
| Cash payments to and on behalf of employees | 1,225,598,702.09 | 993,967,512.50 | |
| Payments of all types of taxes and surcharges | 837,473,429.98 | 427,444,370.30 | |
| Other cash payments relating to operating activities | VII.78 | 566,988,903.02 | 543,942,594.40 |
| Total cash outflows from operating activities | 18,849,957,098.22 | 15,866,709,537.92 | |
| Net cash flows from operating activities | 5,051,454,116.94 | 2,094,187,373.97 | |
| II. Cash flows from investing activities: | |||
| Cash receipts from returns of investments | 1,148,910,000.00 | 119,800,000.00 | |
| Cash receipts from returns on investments | 20,575,165.50 | 141,528,971.25 | |
| Net cash receipts from disposal of fixed assets, intangible assets and other long-term assets | 15,787,319.61 | 17,849,229.40 | |
| Net cash receipts from disposal of subsidiaries and other business units | |||
| Other cash receipts relating to investing activities | VII.78 | 16,002,100.00 | |
| Total cash inflows from investing activities | 1,185,272,485.11 | 295,180,300.65 | |
| Cash payments to acquire fixed assets, intangible assets and other long-term assets | 842,288,846.59 | 659,592,055.18 | |
| Cash payments for investments | 2,521,302,800.00 | 1,659,730,000.04 | |
| Net increase of the pledged loan | |||
| Net cash payments for acquisition of subsidiaries and other business units | |||
| Other cash payments relating to investing activities | |||
| Total cash outflows from investing activities | 3,363,591,646.59 | 2,319,322,055.22 | |
| Net cash flows from investing activities | -2,178,319,161.48 | -2,024,141,754.57 | |
| III. Cash flows from financing activities: | |||
| Cash proceeds from investments by others | 29,989,800.00 | 1,828,453,699.40 | |
| Including: Cash receipts from capital contributions from non-controlling interests of subsidiaries | 4,500,000.00 | ||
| Cash receipts from borrowing | 511,250,000.00 | ||
| Other cash receipts relating to financing activities | VII.78 | ||
| Total cash inflows from financing activities | 541,239,800.00 | 1,828,453,699.40 | |
| Cash repayments for debts | |||
| Cash payments for distribution of dividends or profit and interest expenses | 206,028,719.13 | 13,230,000.00 | |
| Including: Dividends or profit paid to non-controlling shareholders of subsidiaries | 778,717.63 | 13,230,000.00 | |
| Other cash payments relating to financing activities | VII.78 | 517,454,858.42 | 17,292,740.74 |
| Total cash outflows from financing activities | 723,483,577.55 | 30,522,740.74 | |
| Net cash flows from financing activities | -182,243,777.55 | 1,797,930,958.66 | |
| IV. Effect of foreign exchange rate changes on cash and cash equivalents | -967,800.79 | -534,069.84 | |
| V. Net increase in cash and cash equivalents | 2,689,923,377.12 | 1,867,442,508.22 | |
| Add: Cash and cash equivalents at the beginning of the year | 2,846,143,310.70 | 978,700,802.48 | |
| VI. Cash and cash equivalents at the end of the year | 5,536,066,687.82 | 2,846,143,310.70 |
Legal representative: Zhang Jian Financial controller: Zheng Hui Accountingsupervisor: Zheng Hui
Statement of Cash Flows, Parent Company
2022
In: Yuan Currency: RMB
| Items | Notes | 2022 | 2021 |
| I. Cash flows from operating activities | |||
| Cash receipts from the sale of goods and the rendering of services | 9,269,088,699.76 | 12,479,010,351.93 | |
| Receipts of tax and surcharges refunds | 6,047,760.47 | 31,843,942.86 | |
| Other cash receipts relating to operating activities | 123,287,403.34 | 58,877,297.11 | |
| Total cash inflows from operating activities | 9,398,423,863.57 | 12,569,731,591.90 | |
| Cash payments for goods and services | 6,519,217,665.28 | 13,036,232,276.18 | |
| Cash payments to and on behalf of employees | 240,801,779.74 | 254,458,245.22 | |
| Payments of all types of taxes and surcharges | 97,132,482.41 | 25,016,277.14 | |
| Other cash payments relating to operating activities | 673,977,904.75 | 353,843,037.93 | |
| Total cash outflows from operating activities | 7,531,129,832.18 | 13,669,549,836.47 | |
| Net cash flows from operating activities | 1,867,294,031.39 | -1,099,818,244.57 | |
| II. Cash flows from investing activities: | |||
| Cash receipts from returns of investments | 407,856,433.66 | 5,724,000.00 | |
| Cash receipts from returns on investments | 685,878,871.32 | 661,081,902.78 | |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 2,116,717.78 | 1,516,772.14 | |
| Net cash receipts from disposal of subsidiaries and other business units | |||
| Other cash receipts relating to investing activities | 170,000,000.00 | 26,002,100.00 | |
| Total cash inflows from investing activities | 1,265,852,022.76 | 694,324,774.92 | |
| Cash payments to acquire fixed assets, intangible assets and other long-term assets | 113,428,354.80 | 135,643,702.12 | |
| Cash payments for investments | 924,392,160.00 | 673,914,101.00 | |
| Net cash payments for acquisition of subsidiaries and other business units | |||
| Other cash payments relating to other investing activities | 15,400,000.00 | 185,000,000.00 | |
| Total cash outflows from investing activities | 1,053,220,514.80 | 994,557,803.12 | |
| Net cash flows from investing activities | 212,631,507.96 | -300,233,028.20 | |
| III. Cash flows from financing activities: | |||
| Cash proceeds from investments by others | 28,909,800.00 | 1,828,453,699.40 | |
| Cash receipts from borrowings | |||
| Other cash receipts relating to financing activities | |||
| Total cash inflows from financing activities | 28,909,800.00 | 1,828,453,699.40 | |
| Cash repayments for debts | |||
| Cash payments for distribution of dividends or profit and interest expenses | 205,250,001.50 | 646,375.99 | |
| Other cash payments relating to financing activities | 4,761,904.76 | 8,327,413.70 | |
| Total cash outflows from financing activities | 210,011,906.26 | 8,973,789.69 | |
| Net cash flows from financing activities | -181,102,106.26 | 1,819,479,909.71 | |
| IV. Effect of foreign exchange rate changes on cash and cash equivalents | -713,369.57 | -308,858.66 | |
| V. Net increase in cash and cash equivalents | 1,898,110,063.52 | 419,119,778.28 | |
| Add: Cash and cash equivalents at the beginning of the year | 1,381,189,954.73 | 962,070,176.45 | |
| VI. Cash and cash equivalents at the end of the year | 3,279,300,018.25 | 1,381,189,954.73 |
Legal representative: Zhang Jian Financial controller: Zheng Hui Accountingsupervisor: Zheng Hui
Consolidated Statement of Changes in Owner’s Equity
2022
In: Yuan Currency: RMB
| Items | 2022 | ||||||||||||||
| Owners’ equity attributable to the parent company | Non- controlling interests | Total shareholders’ equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Special reserves | Surplus Reserves | Reserves for general risks | Retained earnings | Others | Sub-total | |||||
| Preferred shares | Perpetual bond | Others | |||||||||||||
| I. Balance at end of prior year | 403,660,003.00 | 1,935,686,839.31 | 201,830,001.50 | 2,433,650,547.11 | 4,974,827,390.92 | 4,940,339.11 | 4,979,767,730.03 | ||||||||
| Add: Changes in accounting policy | |||||||||||||||
| Correction of prior period errors | |||||||||||||||
| Business combination involving entities under common control | |||||||||||||||
| Others | |||||||||||||||
| II. Balance at the beginning of the year | 403,660,003.00 | 1,935,686,839.31 | 201,830,001.50 | 2,433,650,547.11 | 4,974,827,390.92 | 4,940,339.11 | 4,979,767,730.03 | ||||||||
| III. Changes for the year (decrease is stated with “-“) | 171,040,001.00 | 42,078,576.32 | 134,953,200.00 | 88,954,295.41 | 1,579,229,046.33 | 1,746,348,719.06 | 8,205,268.91 | 1,754,553,987.97 | |||||||
| (I) Total comprehensive income | 1,873,433,343.24 | 1,873,433,343.24 | -890,514.46 | 1,872,542,828.78 | |||||||||||
| (II) Shareholders’ contributions and reduction in capital | 6,840,000.00 | 212,194,107.94 | 134,953,200.00 | 84,080,907.94 | 3,958,970.38 | 88,039,878.32 | |||||||||
| 1. Capital contributions by shareholders | 6,960,000.00 | 131,533,200.00 | 134,953,200.00 | 3,540,000.00 | 4,500,000.00 | 8,040,000.00 |
| 2. Capital contributed by other equity instruments holders | |||||||||||||||
| 3. Amount of share-based payments recognised in equity | 80,660,907.94 | 80,660,907.94 | 80,660,907.94 | ||||||||||||
| 4. Others | -120,000.00 | -120,000.00 | -541,029.62 | -661,029.62 | |||||||||||
| (III) Profit Distribution | 88,954,295.41 | -294,204,296.91 | -205,250,001.50 | -778,717.63 | -206,028,719.13 | ||||||||||
| 1. Transfer to surplus reserves | 88,954,295.41 | -88,954,295.41 | |||||||||||||
| 2. Transfer to general risks reserves |
| 3. Distribution to shareholders | -205,250,001.50 | -205,250,001.50 | -778,717.63 | -206,028,719.13 | |||||||||||
| 4. Others | |||||||||||||||
| (IV) Internal carry-over of owners’ equity | 164,200,001.00 | -170,115,531.62 | -5,915,530.62 | 5,915,530.62 | |||||||||||
| 1. Capitalisation of capital reserves | 164,200,001.00 | -164,200,001.00 | |||||||||||||
| 2. Capitalisation of surplus reserves | |||||||||||||||
| 3. Loss made up by surplus reserves | |||||||||||||||
| 4. Transfer of changes in the defined benefit plan to retained earnings |
| 5. Transfer of other comprehensive income to retained earnings | |||||||||||||||
| 6. Others | -5,915,530.62 | -5,915,530.62 | 5,915,530.62 | ||||||||||||
| (V) Special reserves | |||||||||||||||
| 1. Appropriation for the year | |||||||||||||||
| 2. Utilisation for the year | |||||||||||||||
| (VI) Others | |||||||||||||||
| IV. Balance at end of year | 574,700,004.00 | 1,977,765,415.63 | 134,953,200.00 | 290,784,296.91 | 4,012,879,593.44 | 6,721,176,109.98 | 13,145,608.02 | 6,734,321,718.00 |
| Items | 2021 | ||
| Owners’ equity attributable to the parent company | Non- | Total | |
| Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Special reserves | Surplus Reserves | Reserves for general risks | Retained earnings | Others | Sub-total | controlling interests | shareholders’ equity | |||
| Preferred shares | Perpetual bond | Others | |||||||||||||
| I. Balance at end of prior year | 338,660,003.00 | 319,618,893.64 | 189,936,412.55 | 1,781,546,043.16 | 2,629,761,352.35 | 18,081,486.56 | 2,647,842,838.91 | ||||||||
| Add: Changes in accounting policy | |||||||||||||||
| Correction of prior period errors | |||||||||||||||
| Business combination involving entities under common control | |||||||||||||||
| Others | |||||||||||||||
| II. Balance at the beginning of the year | 338,660,003.00 | 319,618,893.64 | 189,936,412.55 | 1,781,546,043.16 | 2,629,761,352.35 | 18,081,486.56 | 2,647,842,838.91 | ||||||||
| III. Changes for the year (decrease is stated with “-“) | 65,000,000.00 | 1,616,067,945.67 | 11,893,588.95 | 652,104,503.95 | 2,345,066,038.57 | -13,141,147.45 | 2,331,924,891.12 | ||||||||
| (I) Total comprehensive income | 663,998,092.90 | 663,998,092.90 | 3,723,186.29 | 667,721,279.19 | |||||||||||
| (II) Shareholders’ contributions and reduction in capital | 65,000,000.00 | 1,616,067,945.67 | 1,681,067,945.67 | -3,634,333.74 | 1,677,433,611.93 | ||||||||||
| 1. Capital contributions by shareholders | 65,000,000.00 | 1,615,863,800.00 | 1,680,863,800.00 | 1,680,863,800.00 | |||||||||||
| 2. Capital contributed by other equity instruments holders | |||||||||||||||
| 3. Amount of share-based payments recognised in equity |
| 4. Others | |||||||||||||||
| 5. Purchase of the non-controlling interests | 204,145.67 | 204,145.67 | -3,898,246.67 | -3,694,101.00 | |||||||||||
| 6. Disposal of subsidiaries | 263,912.93 | 263,912.93 | |||||||||||||
| (III) Profit Distribution | 11,893,588.95 | -11,893,588.95 | -13,230,000.00 | -13,230,000.00 | |||||||||||
| 1. Transfer to surplus reserves | 11,893,588.95 | -11,893,588.95 | |||||||||||||
| 2. Transfer to general risk reserves | |||||||||||||||
| 3. Distribution to shareholders | -13,230,000.00 | -13,230,000.00 | |||||||||||||
| 4. Others |
| (IV) Internal carry-over of owners’ equity | |||||||||||||||
| 1. Capitalisation of capital reserves | |||||||||||||||
| 2. Capitalisation of surplus reserves | |||||||||||||||
| 3. Loss made up by surplus reserves | |||||||||||||||
| 4. Transfer of changes in the defined benefit plan to retained earnings | |||||||||||||||
| 5. Transfer of other comprehensive income to retained earnings | |||||||||||||||
| 6. Others | |||||||||||||||
| (V) Special reserves |
| 1. Appropriation for the year | |||||||||||||||
| 2. Utilisation for the year | |||||||||||||||
| (VI) Others | |||||||||||||||
| IV. Balance at end of year | 403,660,003.00 | 1,935,686,839.31 | 201,830,001.50 | 2,433,650,547.11 | 4,974,827,390.92 | 4,940,339.11 | 4,979,767,730.03 |
Legal representative: Zhang Jian Financial controller: Zheng Hui Accounting supervisor: Zheng Hui
Statement of Changes in Owner’s Equity, Parent Company
2022
In: Yuan Currency: RMB
| Items | 2021 | ||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive | Special reserves | Surplus Reserves | Retained earnings | Total shareholders’ equity | |||
| Preferred shares | Perpetual | Others | |||||||||
| bond | income | ||||||||||
| I. Balance at end of prior year | 403,660,003.00 | 1,910,845,161.11 | 201,830,001.50 | 1,547,164,343.56 | 4,063,499,509.17 | ||||||
| Add: Changes in accounting policy | |||||||||||
| Correction of prior period errors | |||||||||||
| Others | |||||||||||
| II. Balance at the beginning of the year | 403,660,003.00 | 1,910,845,161.11 | 201,830,001.50 | 1,547,164,343.56 | 4,063,499,509.17 | ||||||
| III. Decrease/increase of the report year (decrease is stated with “-“) | 171,040,001.00 | 262,617,639.17 | 134,953,200.00 | 88,954,295.41 | 595,338,657.18 | 982,997,392.76 | |||||
| (I) Total comprehensive income | 889,542,954.09 | 889,542,954.09 | |||||||||
| (II) Shareholders’contributions and reduction in capital | 6,840,000.00 | 426,817,640.17 | 134,953,200.00 | 298,704,440.17 |
| 1. Capital contributions by shareholders | 6,960,000.00 | 131,533,200.00 | 134,953,200.00 | 3,540,000.00 | |||||||
| 2. Capital contributed by other equity instruments holders | |||||||||||
| 3. Amount of payment for shares counted to shareholders’ equity | 80,660,907.94 | 80,660,907.94 | |||||||||
| 4. Others | -120,000.00 | 214,623,532.23 | 214,503,532.23 | ||||||||
| (III) Profit Distribution | 88,954,295.41 | -294,204,296.91 | -205,250,001.50 | ||||||||
| 1. Transfer to surplus reserves | 88,954,295.41 | -88,954,295.41 | |||||||||
| 2. Distributions to shareholders | -205,250,001.50 | -205,250,001.50 | |||||||||
| 3. Others | |||||||||||
| (IV) Internal carry-over of owners’ equity | 164,200,001.00 | -164,200,001.00 | |||||||||
| 1. Capitalisation of capital reserves | 164,200,001.00 | -164,200,001.00 |
| 2. Capitalisation of surplus reserves | |||||||||||
| 3. Loss made up by surplus reserves | |||||||||||
| 4. Transfer of changes in the defined benefit plan to retained earnings | |||||||||||
| 5. Transfer of other comprehensive income to retained earnings | |||||||||||
| 6. Others | |||||||||||
| (V) Special reserves | |||||||||||
| 1. Appropriation for the year | |||||||||||
| 2. Utilisation for the year | |||||||||||
| (VI) Others | |||||||||||
| IV. Balance at end of year | 574,700,004.00 | 2,173,462,800.28 | 134,953,200.00 | 290,784,296.91 | 2,142,503,000.74 | 5,046,496,901.93 |
| Items | Year 2021 | ||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Special reserves | Surplus Reserves | Retained earnings | Total shareholders’ equity | |||
| Preferred shares | Perpetual bond | Others | |||||||||
| I. Balance at end of prior year | 338,660,003.00 | 294,981,361.11 | 189,936,412.55 | 1,091,782,154.36 | 1,915,359,931.02 | ||||||
| Add: Changes in accounting policy | |||||||||||
| Correction of prior period errors | |||||||||||
| Others | |||||||||||
| II. Balance at the beginning of the year | 338,660,003.00 | 294,981,361.11 | 189,936,412.55 | 1,091,782,154.36 | 1,915,359,931.02 | ||||||
| III. Decrease/increase of the report year (decrease is stated with “-“) | 65,000,000.00 | 1,615,863,800.00 | 11,893,588.95 | 455,382,189.20 | 2,148,139,578.15 | ||||||
| (I) Total comprehensive income | 467,275,778.15 | 467,275,778.15 | |||||||||
| (II) Shareholders’ contributions and reduction in capital | 65,000,000.00 | 1,615,863,800.00 | 1,680,863,800.00 | ||||||||
| 1. Capital contributions by shareholders | 65,000,000.00 | 1,615,863,800.00 | 1,680,863,800.00 | ||||||||
| 2. Capital contributed by other equity instruments holders | - | ||||||||||
| 3. Amount of payment for shares counted to shareholders’ equity | |||||||||||
| 4. Others | |||||||||||
| (III) Profit Distribution | 11,893,588.95 | -11,893,588.95 |
| 1. Transfer to surplus reserves | 11,893,588.95 | -11,893,588.95 | |||||||||
| 2. Distributions to shareholders | |||||||||||
| 3. Others | |||||||||||
| (IV) Internal carry-over of owners’ equity | |||||||||||
| 1. Capitalisation of capital reserves | |||||||||||
| 2. Capitalisation of surplus reserves | |||||||||||
| 3. Loss made up by surplus reserves | |||||||||||
| 4. Transfer of changes in the defined benefit plan to retained earnings |
| 5. Transfer of other comprehensive income to retained earnings | |||||||||||
| 6. Others | |||||||||||
| (V) Special reserves | |||||||||||
| 1. Appropriation for the year | |||||||||||
| 2. Utilisation for the year | |||||||||||
| (VI) Others | |||||||||||
| IV. Balance at end of year | 403,660,003.00 | 1,910,845,161.11 | 201,830,001.50 | 1,547,164,343.56 | 4,063,499,509.17 |
Legal representative: Zhang Jian Financial controller: Zheng Hui Accounting supervisor: Zheng Hui
III. Company Profile
1. About the Company
"√ Applicable" "□ Inapplicable"AIMA Technology Group Co,. LTD. is a joint stock limited company registered inTianjin, People's Republic of China. It was established on September 27, 1999. TheCompany is headquartered at 5 Aima Road, Jinghai Economic Development Zone, Tianjin.The Company's principal business includes development, production and sales ofbicycles, electric bicycles, electric motorcycles and electric tricycles.The Company's controlling shareholder is Mr. Zhang Jian, a natural person.
2. Scope of Consolidated Financial Statements
"√ Applicable" "□ Inapplicable"The consolidation scope of consolidated financial statements is determined on thebasis of control. Details of changes during the year are shown in “Section 10: Changes inthe Scope of Consolidation” and “Section 10: IX. Interests in Other Entities”.IV. Basis for preparation of financial statements
1. Preparation Basis
These financial statements have been prepared in accordance with AccountingStandards for Business Enterprises - Basic Standard and specific accounting standards,implementation guidance, interpretations and other relevant provisions issuedsubsequently by the Ministry of Finance (the “MOF”) (collectively referred to as “ASBEs”).
2. Operation on Going Concern Basis
"√ Applicable" "□ Inapplicable"
The financial statements of the Company have been prepared on going concern basis.The financial statements have been prepared under the historical cost convention, exceptfor certain financial instruments. If the assets are impaired, corresponding provisions forimpairment shall be made according to relevant requirements.V. Significant accounting policies and estimatesPresentation on specific accounting policies and accounting estimates"√ Applicable" "□ Inapplicable"
The Company has formulated specific accounting policies and accounting estimatesbased on the practical production and operation characteristics, which are mainly reflectedin the provision for bad debts of receivables, inventory valuation methods, depreciationand amortization of investment properties, depreciation of fixed assets, amortization ofintangible assets, amortization of long-term prepaid expenses, etc.
1. Statement on complying with the accounting standard for business enterprises
The Company declares that the financial statements prepared by the Companycomply with requirements of the enterprise accounting standards, truly and completelyreflect the concerned information, including the Company’s financial position as atDecember 31, 2022 and results of their operations, cash flow, etc. of the year then ended.
2. Accounting period
The accounting year of the Group is a calendar year, i.e., from 1 January to 31December of each year.
3. Business Cycle
"√ Applicable" "□ Inapplicable"
The Company takes 12 months as a business cycle.
4. Functional currency for bookkeeping
The Company’s functional and presentation currency is Renminbi (“RMB”). Thecurrency unit is RMB Yuan unless otherwise stated.
5.The accounting treatment on business consolidation under the common control
and not under the common control"√ Applicable" "□ Inapplicable"
Business combinations are classified into business combinations involving entitiesunder common control and business combinations not involving entities under commoncontrol.
Business combinations involving entities under common control
The assets and liabilities (including goodwill arising from the ultimate controllingparty’s acquisition of the entity being absorbed) that are obtained by the absorbing entityin a business combination involving entities under common control shall be measured onthe basis of their carrying amounts in the financial statements of the ultimate controllingparty at the combination date. The difference between the carrying amount of the netassets obtained and the carrying amount of the consideration paid for the combination (orthe aggregate face value of shares issued as consideration) shall be adjusted to capitalpremium under capital reserves. If the capital premium is not sufficient to absorb thedifference, any excess shall be adjusted against retained earnings.
Business combinations not involving entities under common control
A business combination not involving entities under common control is a businesscombination in which all of the combining entities are not ultimately controlled by the sameparty or parties both before and after the combination.
The acquirer shall measure the acquiree’s identifiable assets, liabilities and contingentliabilities acquired in the business combination at their fair values on the acquisition date.
Goodwill is initially recognised and measured at cost, being the excess of theaggregate of the fair value of the consideration transferred (or the fair value of the equitysecurities issued) and any fair value of the Group’s previously held equity interest in theacquiree over the Group’s interest in the fair value of the acquiree’s net identifiable assets.After initial recognition, goodwill is measured at cost less any accumulated impairmentlosses. Where the aggregate of the fair value of the consideration transferred (or the fairvalue of the equity securities issued) and any fair value of the Group’s previously heldequity interest in the acquiree is lower than the Group’s interest in the fair value of theacquiree’s net identifiable assets, the Group reassesses the measurement of the fair valueof the acquiree’s identifiable assets, liabilities and contingent liabilities and the fair value ofthe consideration transferred (or the fair value of the equity securities issued), together withthe fair value of the Group’s previously held equity interest in the acquiree. If after that
reassessment, the aggregate of the fair value of the consideration transferred (or the fairvalue of the equity securities issued) and the Group’s previously held equity interest in theacquiree is still lower than the Group’s interest in the fair value of the acquiree’s netidentifiable assets, the Group recognises the remaining difference in profit or loss.
6. Consolidated financial statements
"√ Applicable" "□ Inapplicable"
The scope of the consolidated financial statements, which include the financialstatements of the Company and all of its subsidiaries, is determined on the basis of control.A subsidiary is an entity that is controlled by the Company (such as an enterprise, adeemed separate entity, or a structured entity controlled by the Company).In the preparation of the consolidated financial statements, the financial statements ofsubsidiaries are prepared for the same accounting year as the Company, using consistentaccounting policies. All intra-group assets and liabilities, equity, income, expenses andcash flows relating to transactions between members of the Group are eliminated in full onconsolidation.Where the loss for the current period attributable to non-controlling interests of asubsidiary exceeds the non-controlling interests of the opening balance of equity of thesubsidiary, the excess shall still be allocated against the non-controlling interests.For subsidiaries acquired through business combinations not involving entities undercommon control, the financial performance and cash flows of the acquiree shall beconsolidated from the date on which the Group obtains control, and continue to beconsolidated until the date such control ceases. While preparing the consolidatedfinancial statements, the Group shall adjust the subsidiary’s financial statements, on thebasis of the fair values of the identifiable assets, liabilities and contingent liabilitiesrecognised on the acquisition date.For subsidiaries acquired through business combinations involving entities undercommon control, the financial performance and cash flows of the entity being absorbedshall be consolidated from the beginning of the period in which the combination occurs.While preparing the comparative financial statements, adjustments are made to relateditems in the financial statements for the prior period as if the reporting entity after thecombination has been in existence since the date the ultimate controlling party firstobtained the control.The Group reassesses whether or not it controls an investee if any change in factsand circumstances indicates that there are changes to one or more of the three elementsof control.
A change in the non-controlling interests, without a loss of control, is accounted for asan equity transaction.
7.Classification of joint arrangement and joint operation
"√ Applicable" "□ Inapplicable"
A joint arrangement is classified as either a joint operation or a joint venture. A jointoperation is a joint arrangement whereby the joint operators have rights to the assets, andobligations for the liabilities, relating to the arrangement. A joint venture is a jointarrangement whereby the joint operators have rights to the net assets of the arrangement.
A joint operator recognises the following items in relation to its interest in a jointoperation: its solely-held assets, and its share of any assets held jointly; its solely-assumedliabilities, and its share of any liabilities incurred jointly; its revenue from the sale of its shareof the output arising from the joint operation; its share of the revenue from the sale of theoutput by the joint operation; its solely-incurred expenses, and its share of any expensesincurred jointly.
8.Cash and cash equivalents
Cash comprises the Group’s cash on hand and bank deposits that can be readilywithdrawn on demand. Cash equivalents are short-term, highly liquid investments thatare readily convertible into known amounts of cash, and are subject to an insignificant riskof changes in value.
9. Foreign currency transactions and foreign currency translation"√ Applicable" "□ Inapplicable"
The Group translates foreign currency transactions into its functional currency.
Foreign currency transactions are initially recorded, on initial recognition in thefunctional currency using average exchange rates for the period in which the transactionsoccur. Monetary items denominated in foreign currencies are translated at the spotexchange rates ruling at the balance sheet date. Differences arising on settlement ortranslation of monetary items are recognised in profit or loss, with the exception of thoserelating to foreign currency borrowings specifically for the construction and acquisition ofqualifying assets, which are capitalised in accordance with the guidance for capitalisationof borrowing costs. Non-monetary items that are measured in terms of historical cost in aforeign currency are translated using the exchange rates at the dates of the initialtransactions, and the amount denominated in the functional currency is not changed.Non-monetary items measured at fair value in a foreign currency are translated using theexchange rates at the date when the fair value was measured. The resulting exchangedifferences are recognised in profit or loss or other comprehensive income depending onthe nature of the non-monetary items.For foreign operations, the Group translates their functional currency amounts intoRMB when preparing the financial statements as follows: as at the balance sheet date, theassets and liabilities are translated using the spot exchange rate at the balance sheet date,and equity items other than “unappropriated profit” are translated at the spot exchangerates at the dates of transactions; revenue and expense items in profit or loss are translatedusing the average exchange rates for the period during which the transactions occur(unless this is inappropriate due to exchange rate fluctuations, in which case the spotexchange rates prevailing on the dates of the transactions are used). The resultingexchange differences are recognised in other comprehensive income. On disposal of aforeign operation, the component of other comprehensive income relating to that particularforeign operation is recognised in profit or loss. If the disposal only involves a portion ofa particular foreign operation, the component of other comprehensive income relating tothat particular foreign operation is recognised in profit or loss on a pro-rata basis.
Foreign currency cash flows and the cash flows of foreign subsidiaries are translatedusing the average exchange rates for the period during which the cash flows occur (unlessthis is inappropriate due to exchange rate fluctuations, in which case the spot exchange
rates prevailing on the dates of cash flows are used). The effect of exchange ratechanges on cash is separately presented as an adjustment item in the statement of cashflows.
10. Financial instruments
"√ Applicable" "□ Inapplicable"
A financial instrument is any contract that gives rise to a financial asset of one entityand a financial liability or equity instrument of another entity.
(1) Recognition and derecognition
The Group recognises a financial asset or a financial liability when it becomes a partyto the contractual provisions of a financial instrument.
A financial asset (or, where applicable, a part of a financial asset or part of a group ofsimilar financial assets) is primarily derecognised (i.e., removed from the Group’sconsolidated balance sheet) when:
① the rights to receive cash flows from the financial asset have expired;
or
② the Group has transferred its rights to receive cash flows from the financial asset,or has assumed an obligation to pay the received cash flows in full without material delayto a third party under a “pass-through” arrangement; and either (i) has transferredsubstantially all the risks and rewards of the financial asset, or (ii) has neither transferrednor retained substantially all the risks and rewards of the asset, but has transferred controlof the financial asset.
A financial liability is derecognised when the obligation under the liability is dischargedor cancelled, or expires. When an existing financial liability is replaced by another fromthe same lender on substantially different terms, or the terms of an existing liability aresubstantially modified, such an exchange or modification is treated as a derecognition ofthe original liability and a recognition of a new liability, and the difference between therespective carrying amounts is recognised in profit or loss.
Regular way purchases and sales of financial assets are recognised andderecognised using trade date accounting. Regular way purchases or sales arepurchases or sales of financial assets that require delivery within the period generallyestablished by regulation or convention in the marketplace. The trade date is the datethat the Group committed to purchase or sell a financial asset.
(2) Classification and measurement of financial assets
The classification of financial assets at initial recognition depends on the financialasset’s contractual cash flow characteristics and the Group’s business model for managingthem: financial assets at fair value through profit or loss, financial assets at amortised costand financial assets at fair value through other comprehensive income.
Financial assets are measured at fair value on initial recognition, but accountsreceivable or notes receivable arising from the sale of goods or rendering of services thatdo not contain significant financing components or for which the Group has applied thepractical expedient of not adjusting the effect of a significant financing component duewithin one year, are initially measured at the transaction price.
For financial assets at fair value through profit or loss, relevant transaction costs aredirectly recognised in profit or loss, and transaction costs relating to other financial assetsare included in the initial recognition amounts.
The subsequent measurement of financial assets depends on their classification asfollows:
① Debt investments measured at amortised cost
The Group measures financial assets at amortised cost if both of the followingconditions are met: the financial asset is held within a business model with the objective tohold financial assets in order to collect contractual cash flows; the contractual terms of thefinancial asset give rise on specified dates to cash flows that are solely payments ofprincipal and interest on the principal amount outstanding. Financial assets at amortisedcost are subsequently measured using the effective interest method and are subject toimpairment. Gains and losses are recognised in profit or loss when the asset is
derecognised, modified or impaired. Such financial assets mainly include currency funds,notes receivable, accounts receivable and other receivables.
② Debt investments at fair value through other comprehensive income
The Group measures debt investments at fair value through other comprehensiveincome if both of the following conditions are met: the financial asset is held within abusiness model with the objective of both holding to collect contractual cash flows andselling; the contractual terms of the financial asset give rise on specified dates to cashflows that are solely payments of principal and interest on the principal amount outstanding.Interest income is recognised using the effective interest method. The interest income,impairment losses and foreign exchange revaluation are recognised in profit or loss. Theremaining fair value changes are recognised in other comprehensive income. Uponderecognition, the cumulative fair value change recognised in other comprehensive incomeis recycled to profit or loss. Such financial assets are reported as other creditor's rightsinvestments, other creditor's rights investments that mature within one year as of thebalance sheet date are reported as non-current assets that mature within one year, andother creditor's rights investments whose original maturity is within one year are reportedas other current assets.
③ Financial assets at fair value through profit or loss
The financial assets other than the above financial assets measured at amortised costand financial assets at fair value through other comprehensive income are classified asfinancial assets at fair value through profit or loss. Such financial assets are subsequentlymeasured at fair value with net changes in fair value recognised in profit or loss. Suchfinancial assets are presented as held-for-trading financial assets, and those with maturitymore than one year from the balance sheet date and expected to be held for more thanone year are presented as other non-current financial assets.
(3) Classification and measurement of financial liabilities
The financial liabilities of the Company are, on initial recognition, classified as:
financial liabilities measured at amortised cost. Transaction costs relating to financialliabilities measured at amortised cost are included in the initial recognition amounts.
The subsequent measurement of financial liabilities depends on their classification:
Financial liabilities measured at amortised cost: such financial liabilities are measuredat amortised cost using the effective interest method.
(4) Impairment of financial instruments
Based on the expected credit losses (“ECLs”), the Group recognises an allowance forECLs for the financial assets measured at amortised cost, debt investments at fair valuethrough other comprehensive income.
For accounts receivable and contract assets that do not contain a significant financingcomponent, the Group applies the simplified approach to recognise a loss allowance basedon lifetime ECLs.
Except for financial assets which apply the simplified approach as mentioned above,other financial assets, the Group assesses whether the credit risk has increasedsignificantly since initial recognition at each balance sheet date. If the credit risk has notincreased significantly since initial recognition (stage 1), the loss allowance is measured atan amount equal to 12-month ECLs by the Group and the interest income is calculatedaccording to the carrying amount and the effective interest rate; if the credit risk hasincreased significantly since initial recognition but are not credit-impaired (stage 2), theloss allowance is measured at an amount equal to lifetime ECLs by the Group and theinterest income is calculated according to the carrying amount and the effective interestrate; if such financial assets are credit-impaired after initial recognition (stage 3), the lossallowance is measured at an amount equal to lifetime ECLs by the Group and the interestincome is calculated according to the amortised cost and the effective interest rate. Forfinancial instruments with lower credit risk on the balance sheet date, the Companyassumes that its credit risk has not increased significantly since the initial recognition.
The Group assesses the expected credit losses of financial instruments based onindividual items and portfolios. The Group has considered the credit risk characteristics ofdifferent customers and assessed the expected credit losses of receivables based on theage combination.
The Group considers reasonable and supportable information about past events,current conditions and forecasts of future economic conditions when assessing expectedcredit losses.For the Group's judgment criteria for significant increase in credit risk, the definition ofcredit-impaired assets, and the assumption for the measurement of expected credit losses,please refer to “Section 10 X. Risks Related to Financial Instruments”.The Group measures expected credit losses on a financial instrument in a way thatreflects: (a) an unbiased and probability-weighted amount that is determined by evaluatinga range of possible outcomes; (b) the time value of money; and (c) reasonable andsupportable information that is available without undue cost or effort at the balance sheetdate about past events, current conditions and forecasts of future economic conditions.When the Group no longer reasonably expects to collect all or part of the contractualcash flows of the financial asset, the Group directly writes down the carrying amount of thefinancial asset.
(5) Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported inthe balance sheet if there is a currently enforceable legal right to offset the recognisedamounts; and there is an intention to settle on a net basis, or to realise the assets andsettle the liabilities simultaneously.
(6) Financial guarantee contract
Financial guarantee contracts are those contracts that require a payment to be madeby the issuer to reimburse the holder for a loss it incurs because the specified debtor failsto make a payment when due in accordance with the terms of a debt instrument. Financialguarantee contracts are measured, on initial recognition, at fair value. For financialguarantee contracts that are not designated as financial liabilities at fair value through profitor loss, they are, after initial recognition, subsequently measured at the higher of: (i) theamount of provisions for ECLs at the balance sheet date, and (ii) the amount initiallyrecognised less the cumulative amortisation recognised in accordance with the guidancefor revenue recognition.
(7) Transfer of Financial Assets
A financial asset is derecognised when the Group has transferred substantially all therisks and rewards of the asset to the transferee. A financial asset is not derecognisedwhen the Group retains substantially all the risks and rewards of the financial asset.
When the Group has neither transferred nor retained substantially all the risks andrewards of the financial asset, it either (i) derecognises the financial asset and recognisesthe assets and liabilities created in the transfer when it has not retained control of the asset;or (ii) continues to recognise the transferred asset to the extent of the Group's continuinginvolvement, in which case, the Group also recognises an associated liability.
Continuing involvement that takes the form of a guarantee over the transferredfinancial asset is measured at the lower of the original carrying amount of the financialasset and the guarantee amount. The guarantee amount is the maximum amount ofconsideration that the Group could be required to repay.
11. Notes receivable
Method for determination and accounting treatment of the expected credit loss of otherreceivables"□ Applicable " "√ Inapplicable"
12. Accounts receivable
Method for determination and accounting treatment of the expected credit loss ofother receivables"√ Applicable" "□ Inapplicable"
For details, please refer to “10. Financial Instruments" and "V. 43. Other ImportantAccounting Policies and Accounting Estimates" of "V. Significant Accounting Policies andAccounting Estimates" in "Section X. Financial Report".
13.Receivables financing
"√ Applicable" "□ Inapplicable"
For details, please refer to “10. Financial Instruments" and "V. 43. Other ImportantAccounting Policies and Accounting Estimates" of "V. Significant Accounting Policies andAccounting Estimates" in "Section X. Financial Report".
14. Other receivables
Method for determination and accounting treatment of the expected credit loss ofother receivables"√ Applicable" "□ Inapplicable"
For details, please refer to “10. Financial Instruments" and "V. 43. Other ImportantAccounting Policies and Accounting Estimates" of "V. Significant Accounting Policies andAccounting Estimates" in "Section X. Financial Report".
15. Inventories
"√ Applicable" "□ Inapplicable"
The Company’s inventories consist of raw materials, work-in-process and finishedgoods.
Inventories are initially carried at cost. Cost of inventories comprises all costs ofpurchase, costs of conversion and other costs. For inventories delivered, the actual costsare determined on the weighted average basis. Turnover materials include low valueconsumables and packing materials, which are on the immediate write-off basis.
The Company adopts the perpetual inventory system.
At the balance sheet date, inventories are stated at the lower of cost and net realisablevalue. The inventories are written down below cost to net realisable value and the write-down is recognised in profit or loss if the cost is higher than the net realisable value. Netrealisable value is the estimated selling price in the ordinary course of business less theestimated costs of completion and the estimated costs necessary to make the sale andrelevant taxes.
16. Contract assets
(1). Recognition method and impairment test method of contract assets"□ Applicable" "√ Inapplicable"
(2) Methods for determination and accounting treatment of the expected credit loss
of contract assets"□ Applicable" "√ Inapplicable"
17. Held-for-sale assets
"□ Applicable" "√ Inapplicable"
18. Debt investment
(1). Methods for determination and accounting treatment of the expected credit loss
of debt investment"□ Applicable" "√ Inapplicable"
19. Other debt investment
(1). Methods for determination and accounting treatment of the expected credit loss
of other debt investment"□ Applicable" "√ Inapplicable"
20. Long-term receivables
(1). Method for determination and accounting treatment of the expected credit loss
of long-term receivables"□ Applicable" "√ Inapplicable"
21. Long-term equity investments
"√ Applicable" "□ Inapplicable"
Long-term equity investments include equity investments in subsidiaries, jointventures and associates.
A long-term equity investment is initially measured at its initial investment cost onacquisition. The initial cost of a long-term equity investment acquired through a businesscombination involving enterprises under common control is the Company’s share of thecarrying amount of the subsidiary’s equity in the consolidated financial statements of theultimate controlling party at the combination date. The difference between the initialinvestment cost and the carrying amounts of the consideration given is adjusted to thecapital premium in the capital reserve, with any excess adjusted to retained earnings. ForOCI before the combination date, when disposing of the investment, the same basis as theinvestee's direct disposal of relevant assets or liabilities shall be adopted. Shareholders'equity recognised due to changes in shareholders' equity other than net profit or loss, OCIand profit distribution of the investee shall be transferred to the profit or loss upon thedisposal of the investment. Those that are still long-term equity investments after disposalare carried forward on a pro-rata basis, and those that are converted into financialinstruments after disposal are carried forward in full.
For a long-term equity investment obtained through a business combination notinvolving enterprises under common control, the initial cost comprises the aggregate of thefair value of assets transferred, liabilities incurred or assumed, and equity securities issuedby the Company, in exchange for control of the acquiree. For a long-term equity investmentobtained through a business combination not involving enterprises under common controland achieved in stages, the initial cost comprises the carrying value of the previously-heldequity investment in the acquiree immediately before the acquisition date, and theadditional investment cost at the acquisition date. OCI held before the acquisition date andrecognised by the use of the equity method shall be accounted for when the investment isdisposed of on the same basis as the investee directly disposes of the relevant assets orliabilities. Shareholders' equity recognised as a result of changes in shareholders' equityother than net profit or loss, OCI and profit distribution of the investee is transferred to profitor loss upon the disposal of the investment. Those that remain long-term equityinvestments after disposal are carried forward on a pro-rata basis, while those that areconverted into financial instruments after disposal are carried forward in full. For long-termequity investments obtained by means other than business combination, the initialinvestment cost is determined according to the following method: for those obtained by
paying cash, the actual purchase price paid and the expenses, taxes and other necessarycosts directly related to the acquisition of long-term equity investments shall be used.Expenses are taken as the initial investment cost. For those obtained by issuing equitysecurities, the fair value of the issued equity securities is taken as the initial investmentcost.For a long-term equity investment where the Company can exercise control over theinvestee, the long-term investment is accounted for using the cost method in theCompany’s individual financial statements. Control is achieved when the Group isexposed, or has rights, to variable returns from its involvement with the investee and hasthe ability to affect those returns through its power over the investee.Under the cost method, the long-term equity investment is measured at its initialinvestment cost. When additional investment is made or the investment is recouped, thecost of long-term equity investment is adjusted accordingly. Cash dividends or profitdistributions declared by the investee are recognised as investment income in profit or loss.
The equity method is adopted when the Group has joint control, or exercisessignificant influence over the investee. Joint control is the contractually agreed sharing ofcontrol of an arrangement, which exists only when decisions about the relevant activitiesrequire the unanimous consent of the parties sharing control. Significant influence is thepower to participate in the financial and operating policy decisions of the investee, but isnot control or joint control with other parties over those policies.
Under the equity method, where the initial investment cost of a long-term equityinvestment exceeds the Group’s interest in the fair value of the investee’s identifiable netassets at the acquisition date, no adjustment is made to the initial investment cost. Wherethe initial investment cost is less than the Group’s interest in the fair values of the investee’sidentifiable net assets at the acquisition date, the difference is charged to profit or loss, andthe cost of the long-term equity investment is adjusted accordingly.
Under the equity method, after it has acquired a long-term equity investment, theGroup recognises its share of the investee’s profit or loss, as well as its share of theinvestee’s other comprehensive income, as investment income or loss and othercomprehensive income, and adjusts the carrying amount of the investment accordingly.The Group recognises its share of the investee’s profit or loss after making appropriateadjustments to the investee’s profit or loss based on the fair value of the investee’sidentifiable assets at the acquisition date, using the Group’s accounting policies andperiods. Unrealised profits and losses from transactions with its joint ventures andassociates are eliminated to the extent of the Group’s investments in the associates or jointventures (except for assets that constitute a business) (However, any loss arising fromsuch transactions which are attributable to an impairment loss shall be recognised at itsentirety). For any long-term equity investment differences (debit side) arising frominvestments in joint ventures and associates held before the first-time adoption of ASBEs,the investment income or loss is recognised after deducting the debit balance to beamortised over the remaining period on a straight-line basis. The carrying amount of theinvestment is reduced based on the Group’s share of any profit distributions or cashdividends declared by the investee. The Group’s share of losses of the investee isrecognised to the extent that the carrying amount of the investment together with any long-
term interests that in substance form part of its net investment in the investee is reducedto zero, except that the Group has the obligations to assume further losses. The Group’sshare of the investee’s equity changes, other than those arising from the investee’s profitor loss, other comprehensive income or profit distribution, is recognised in the Group’sequity, and the carrying amount of the long-term equity investment is adjusted accordingly.Upon disposal of a long-term equity investment, the difference between the proceedsactually received and the carrying amount is recognised in profit or loss. For a long-termequity investment accounted for using the equity method, when the Group discontinuesusing the equity method due to disposal, all amounts previously recognised in othercomprehensive income are accounted for on the same basis as would have been requiredif the investee had directly disposed of the related assets or liabilities. Equity previouslyrecognised resulting from the investee’s equity changes other than profit or loss, othercomprehensive income and profit distribution is reclassified to profit or loss in its entirety.When the Group continues to use the equity method, the amounts previouslyrecognised in other comprehensive income are accounted for on the same basis as wouldhave been required if the investee had directly disposed of the related assets or liabilitiesand reclassified to profit or loss on a pro-rata basis. Equity previously recognisedresulting from the investee’s equity changes other than profit or loss, other comprehensiveincome and profit distribution is reclassified to profit or loss on a pro-rata basis.
22. Investment properties
(1) If the cost measurement model is used,
Depreciation or amortization methodInvestment properties are properties held to earn rental income and/or for capitalappreciation. Investment properties include land use rights leased out, land use rightsheld for transfer upon capital appreciation, and buildings leased out.An investment property is measured initially at cost. If the economic benefits relatingto an investment property will probably flow in and the cost can be reliably measured,subsequent costs incurred for the property are included in the cost of the investmentproperty. Otherwise, subsequent costs are recognised in profit or loss as incurred.The Group uses the cost model for the subsequent measurement of its investmentproperties. For the depreciation method of houses and buildings in investment real estate,please refer to the relevant content of “Section 10 V. 23 Fixed Assets”, and for theamortization method of land use rights in investment real estate, please refer to “Section10 V. 29 Intangible Assets".
23. Fixed asset
(1) Recognition of fixed assets
"√ Applicable" "□ Inapplicable"A fixed asset is recognised only when the economic benefits associated with the assetwill probably flow into the Group and the cost of the asset can be measured reliably.Subsequent expenditures incurred for a fixed asset that meets the recognition criteria shallbe included in the cost of the fixed asset, and the carrying amount of the component of the
fixed asset that is replaced shall be derecognised. Otherwise, such expenditures arerecognised in profit or loss as incurred.
The fixed assets are initially measured at the cost. The cost of a purchased fixed assetcomprises the purchase price, relevant taxes and any directly attributable expenditure forbringing the asset to working condition for its intended use.
(2) Depreciation methods
"√ Applicable" "□ Inapplicable"
| Categories | Depreciation method | Useful life (year) | Residual rate | Annual depreciation rate |
| Buildings | Straight-line method | 20 | 5% | 4.75% |
| Machinery and equipment | Straight-line method | 10 | 5% | 9.50% |
| Office equipment | Straight-line method | 5 | 5% | 19.00% |
| Vehicles | Straight-line method | 4 | 5% | 23.75% |
| Electronic equipment | Straight-line method | 3 | 5% | 31.67% |
| Production tools | Straight-line method | 3 | 5% | 31.67% |
The Group reviews the useful life and estimated net residual value of a fixed assetand the depreciation method applied at least at each year end, and make adjustments ifnecessary.
(3) Basis for recognizing the fixed assets under financing lease, pricing and
depreciation methods"□ Applicable" "√ Inapplicable"
24. Construction in progress
"√ Applicable" "□ Inapplicable"
The cost of construction in progress is determined according to the actualexpenditures incurred for the construction, including all necessary constructionexpenditures incurred during the construction period and other relevant expenditures.
An item of construction in progress is transferred to fixed assets, when the asset isready for its intended use.
25. Borrowing costs
"√ Applicable" "□ Inapplicable"
The borrowing costs that are directly attributable to the acquisition, construction orproduction of a qualifying asset are capitalised. The amounts of other borrowing costsincurred are recognised as an expense in the period in which they are incurred.Qualifying assets are assets (fixed assets, investment properties, inventories, etc.) that
necessarily take a substantial period of time of acquisition, construction or production toget ready for their intended use or sale.The capitalisation of borrowing costs commences only when all of the followingconditions are satisfied:
(1) expenditures for the asset have been incurred;
(2) borrowing costs have been incurred; and
(3) activities that are necessary to acquire, construct or produce the asset for itsintended use or sale have been undertaken.Capitalisation of borrowing costs ceases when the qualifying asset being acquired,constructed or produced gets ready for its intended use or sale. Any borrowing costssubsequently incurred are recognised in profit or loss.During the capitalisation period, the amount of interest eligible for capitalisation foreach accounting period shall be determined as follows:
(1) where funds are borrowed specifically for the purpose of obtaining a qualifyingasset, the amount of interest eligible for capitalisation is the actual interest costs incurredon that borrowing for the period less any bank interest earned from depositing the borrowedfunds before being used on the asset or any investment income on the temporaryinvestment of those funds; or
(2) where funds are borrowed generally for the purpose of obtaining a qualifyingasset, the amount of interest eligible for capitalisation is determined by applying a weightedaverage interest rate on the general borrowings to the weighted average of the excess ofthe cumulative expenditures on the asset over the expenditures on the asset funded bythe specific borrowings.
Capitalisation of borrowing costs is suspended during periods in which the acquisition,construction or production of a qualifying asset is suspended abnormally by activities otherthan those necessary to get the asset ready for its intended use or sale, when thesuspension is for a continuous period of more than 3 months. Borrowing costs incurredduring these periods are recognised as an expense in profit or loss until the acquisition,construction or production is resumed.
26. Biological assets
"□ Applicable" "√ Inapplicable"
27. Oil and gas assets
"□ Applicable" "√ Inapplicable"
28. Right-of-use assets
"√ Applicable" "□ Inapplicable"
At the commencement date, the Group recognises the right of using leased assetswithin the lease term as right-of-use assets, the amount of which includes: (1) the amountof the initial measurement of the lease liability; (2) any lease payments made at or beforethe commencement date, less any lease incentives received (if applicable); (3) any initialdirect costs incurred; (4) an estimate of costs to be incurred by the lessee in dismantlingand removing the underlying asset, restoring the site on which it is located or restoring theunderlying asset to the condition required by the terms and conditions of the lease. TheGroup depreciates right-of-use assets using the straight-line method. If the lease transfersownership of the underlying assets to the lessee by the end of the lease term or if the cost
of the right-of-use asset reflects that the lessee will exercise a purchase option, the lesseeshall depreciate the right-of-use asset from the commencement date to the end of theuseful life of the underlying asset. Otherwise, the lessee shall depreciate the right-of-useasset from the commencement date to the earlier of the end of the useful life of the right-of-use asset and the end of the lease term.
29. Intangible assets
(1). Pricing method, useful life and impairment test
"√ Applicable" "□ Inapplicable"An intangible asset shall be recognised only when it is probable that the economicbenefits associated with the asset will flow to the Group and the cost of the asset can bemeasured reliably. Intangible assets are measured initially at cost. However, intangibleassets acquired in a business combination not involving entities under common controlwith a fair value that can be measured reliably are recognised separately as intangibleassets and initially measured at the fair value at the date of acquisition.The useful life of an intangible asset is determined according to the period over whichit is expected to generate economic benefits for the Group. An intangible asset isregarded as having an indefinite useful life when there is no foreseeable limit to the periodover which the asset is expected to generate economic benefits for the Group.Land use rights that are purchased by the Group are accounted for as intangibleassets.
An intangible asset with a finite useful life is amortised using the straight-line methodover its useful life. For an intangible asset with a finite useful life, the Group reviews theuseful life and amortisation method at least at each year end and makes adjustment ifnecessary.The useful life of each intangible asset is as follows:
| Items | Useful Life |
| Land use rights | 50 years |
| Software | 5-10 years |
| Trademarks | 5-10 years |
(2). Accounting policy for internal research and development expenditure"√ Applicable" "□ Inapplicable"
The Group classifies the expenditures on an internal research and developmentproject into expenditure on the research phase and expenditure on the development phase.Expenditure on the research phase is recognised in profit or loss as incurred.
Expenditure on the development phase is capitalised only when the Group candemonstrate all of the following: (i) the technical feasibility of completing the intangibleasset so that it will be available for use or sale; (ii) the intention to complete the intangibleasset and use or sell it; (iii) how the intangible asset will generate probable future economicbenefits (among other things, the Group can demonstrate the existence of a market for theoutput of the intangible asset or the intangible asset itself or, if it is to be used internally,the usefulness of the intangible asset); (iv) the availability of adequate technical, financialand other resources to complete the development and the ability to use or sell theintangible asset; and (v) the ability to measure reliably the expenditure attributable to the
intangible asset during the development phase. Expenditure on the development phasewhich does not meet these above criteria is recognised in profit or loss when incurred.
30. Impairment of long-term assets
"√ Applicable" "□ Inapplicable"
The Group determines the impairment of assets other than impairment of inventories,contract assets and assets related to contract costs, deferred income tax and financialassets, using the following methods:
The Group assesses at the balance sheet date whether there is any indication that anasset may be impaired. If any indication exists that an asset may be impaired, the Groupestimates the recoverable amount of the asset and performs impairment testing. Goodwillarising from a business combination and an intangible asset with an indefinite useful lifeare tested for impairment at least at each year end, irrespective of whether there is anyindication that the asset may be impaired. Intangible assets that have not been ready fortheir intended use are tested for impairment each year.
The recoverable amount of an asset is the higher of its fair value less costs to sell andthe present value of the future cash flows expected to be derived from the asset. TheGroup estimates the recoverable amount on an individual basis unless it is not possible toestimate the recoverable amount of the individual asset, in which case the recoverableamount is determined for the asset group to which the asset belongs. Identification of anasset group is based on whether major cash inflows generated by the asset group arelargely independent of the cash inflows from other assets or asset groups.
When the recoverable amount of an asset or asset group is less than its carryingamount, the carrying amount is reduced to the recoverable amount by the Group. Thereduction in the carrying amount is treated as an impairment loss and recognised in profitor loss. A provision for impairment loss of the asset is recognised accordingly.
For the purpose of impairment testing, the carrying amount of goodwill acquired in abusiness combination is allocated from the acquisition date on a reasonable basis, to eachof the related asset groups unless it is impossible to allocate to the related asset groups,in which case it is allocated to each of the related sets of asset groups. Each of the relatedasset groups or sets of asset groups is an asset group or a set of asset groups that isexpected to benefit from the synergies of the business combination and shall not be largerthan a reportable segment determined by the Group.
When testing an asset group (a set of asset groups) to which goodwill has beenallocated for impairment, if there is any indication of impairment, the Group firstly tests theasset group (set of asset groups), excluding the amount of goodwill allocated, forimpairment, i.e., the Group determines and compares the recoverable amount with therelated carrying amount and recognises any impairment loss. After that, the Group teststhe asset group (set of asset groups), including goodwill, for impairment, the carryingamount of the related asset group (set of asset groups) is compared to its recoverableamount. If the carrying amount of the asset group (set of asset groups) is higher than itsrecoverable amount, the amount of the impairment loss is firstly used to reduce the carryingamount of the goodwill allocated to the asset group (set of asset groups), and then usedto reduce the carrying amount of other assets (other than the goodwill) within the assetgroup (set of asset groups), on a pro-rata basis of the carrying amount of each asset.
Once the above impairment loss is recognised, it cannot be reversed in subsequentaccounting periods.
31. Long-term prepaid expenses
"√ Applicable" "□ Inapplicable"Long-term expenses to be apportioned are amortized using the straight-line method, andthe amortization period is as follows:
| Items | Amortization term |
| Building decoration | 36 months |
| Leasehold Improvement | 36 months |
| Others | 24 to 60 months |
32. Contract liabilities
(1). Recognition of contract liabilities
"√ Applicable" "□ Inapplicable"
The Company presents contract liabilities in the balance sheet based on therelationship between the performance of the contract obligations and the payment by thecustomer.
A contractual liability is an obligation to transfer goods or service to a customer forconsideration received or receivable from the customer, such as money that a businesshas received before transferring the promised goods or service.
33. Employee benefits
Employee benefits refer to all forms of consideration or compensation other thanshare-based payments given by the Group in exchange for services rendered byemployees or for termination of employment. Employee benefits include short-termemployee benefits, post-employment benefits, termination benefits and other long-termemployee benefits. Benefits given by the Group to an employee’s spouse, children anddependents, family members of deceased employees and other beneficiaries are alsoemployee benefits.
(1). Accounting treatment of short term salaries
"√ Applicable" "□ Inapplicable"
The Company recognizes the actual short-term remuneration as a liability during theaccounting period when employees provide services to the Group, and stated in the profitor loss or the cost of related assets.
(2). Accounting treatment of post-employment benefits
"√ Applicable" "□ Inapplicable"
The employees of the Group participate in a pension scheme and unemploymentinsurance managed by the local government, the corresponding expenses shall beincluded in the cost of related assets or profit or loss..
(3). Dismission benefits
"□ Applicable" "√ Inapplicable"
(4). Other long term employees' benefits
"□ Applicable" "√ Inapplicable"
34. Lease liabilities
"√ Applicable" "□ Inapplicable"At the commencement date of the lease, the Group measures the lease liability at thepresent value of the lease payments that are not paid at that date, except for short-termleases and leases of low-value assets. The lease payments include fixed payments(including in-substance fixed payments) less any lease incentives receivable, variablelease payments that depend on an index or a rate, and amounts expected to be paid underresidual value guarantees. The lease payments also include the exercise price of apurchase option reasonably certain to be exercised by the Group and payments ofpenalties for termination of a lease, if the lease term reflects the Group exercising theoption to terminate the lease.In calculating the present value of the lease payments, the Group uses the interestrate implicit in the lease as the discount rate. If that rate cannot be readily determined, theGroup uses the lessee’s incremental borrowing rate. The Group calculates the interestexpenses of the lease liability in each period during the lease term using the constantperiodic rate of interest, and recognises such interest expenses in profit or loss, exceptthose in the costs of the related asset as required. Variable lease payments that are notincluded in the measurement of the lease liabilities are recognised in profit or loss asincurred, except those in the costs of the related asset as required.
After the commencement date of the lease, the amount of lease liabilities is increasedto reflect the accretion of interest and reduced for the lease payments made. In addition,the Group remeasures the lease liability at the present value of revised lease paymentsupon a change in any of the following: in-substance fixed payments, the amounts expectedto be payable under residual value guarantees, the index or rate used to determine leasepayments, or the assessment or exercise of the purchase option, the renewal option or theoption to terminate the lease.
35. Provisions
"√ Applicable" "□ Inapplicable"
An obligation related to a contingency shall be recognised by the Group as a provisionwhen all of the following conditions are satisfied, except for contingent considerations andcontingent liabilities assumed in a business combination not involving entities undercommon control:
(1) the obligation is a present obligation of the Group;
(2) it is probable that an outflow of economic benefits from the Group will be requiredto settle the obligation; and
(3) a reliable estimate can be made of the amount of the obligation.
A provision is initially measured at the best estimate of the expenditure required tosettle the related present obligation, taking into account factors pertaining to a contingencysuch as the risks, uncertainties and time value of money as a whole. Provisions arereviewed at each balance sheet date. Where there is clear evidence that the carryingamount of a provision does not reflect the current best estimate, the carrying amount isadjusted to the current best estimate.
36. Share-based payment
"√ Applicable" "□ Inapplicable"
A share-based payment is classified as either an equity-settled share-based paymentor a cash-settled share-based payment. An equity-settled share-based payment is atransaction in which the Group receives services and uses shares or other equityinstruments as consideration for settlement.An equity-settled share-based payment in exchange for services received fromemployees is measured at the fair value of the equity instruments granted to the employees.If such equity-settled share-based payment could vest immediately, related costs orexpenses at an amount equal to the fair value on the grant date are recognised, with acorresponding increase in capital reserves; if such equity-settled share-based paymentcould not vest until the completion of services for a vesting period, or until the achievementof a specified performance condition, the Group at each balance sheet date during thevesting period recognises the services received for the current period as related costs andexpenses, with a corresponding increase in capital reserves, at an amount equal to the fairvalue of the equity instruments at the grant date, based on the best estimate of the numberof equity instruments expected to vest. The fair value is determined using the market price.
For awards that do not ultimately vest because non-market performance and/orservice conditions have not been met, no expense is recognised. Where awards includea market or non-vesting condition, the transactions are treated as vesting irrespective ofwhether the market or non-vesting condition is satisfied, provided that all otherperformance and/or service conditions are satisfied.
Where the terms of an equity-settled share-based award are modified, as a minimuman expense is recognised as if the terms had not been modified. In addition, an expenseis recognised for any modification that increases the total fair value of the share-basedpayments, or is otherwise beneficial to the employee as measured at the date ofmodification.
Where an equity-settled share-based award is cancelled, it is treated as if it had vestedon the date of cancellation, and any expense not yet recognised for the award is recognisedimmediately. This includes any award where non-vesting conditions within the control ofeither the Group or the employee are not met. However, if a new award is substituted forthe cancelled award, and is designated as a replacement on the date that it is granted, thecancelled and new awards are treated as if they were a modification of the original award.
37. Other financial instruments, such as preferred shares, perpetual bonds, etc."□ Applicable" "√ Inapplicable"
38. Revenue
(1). Accounting policies used in revenue recognition and measurement"√ Applicable" "□ Inapplicable"
Revenue from contracts with customers is recognised when the Group has fulfilled itsperformance obligations in the contracts, that is, when the customer obtains control ofrelevant goods or services. Control of relevant goods or services refers to the ability todirect the use of the goods, or the provision of the services, and obtain substantially all ofthe remaining benefits from the goods or services.
① Contracts for the sale of goods
A contract for the sale of goods between the Group and the customer usually onlyincludes the performance obligation to transfer the xx goods. The revenue is recognisedat xx point in time based on the following indicators, which include: a present right topayment for goods, the transfer of significant risks and rewards of ownership of goods, thetransfer of legal title to goods, the transfer of physical possession of goods, the customer'sacceptance of goods.
② Contracts for the rendering of services
A contract for the rendering of services between the Company and the customerusually includes the performance obligation of after-sales service guarantee. Because thecustomer simultaneously receives and consumes the benefits provided by the Group'sperformance as the Group performs, the revenue is recognised over time only if the Groupcan reasonably measure its progress towards the complete satisfaction of the performanceobligation. The Company uses the straight-line method and determines the progress of theservices rendered on the basis of the time elapsed. If the progress towards the completesatisfaction of the performance obligation cannot be reasonably measured, but the Groupexpects to recover the costs incurred in satisfying the performance obligation, the revenueis recognised only to the extent of the costs incurred until such time that the Group canreasonably measure the progress towards the complete satisfaction of the performanceobligation.
③ Variable consideration
Some of the Group's contracts with customers including arrangements of salesrebates result in variable consideration. The Group determines the best estimate ofvariable consideration by using the expected value method or the most likely amountmethod. However, the transaction price including variable consideration is only to theextent that it is highly probable that a significant reversal in the amount of cumulativerevenue recognised will not occur when the uncertainty associated with the variableconsideration is subsequently resolved.
④ Consideration payable to a customer
The Group accounts for the consideration payable to a customer as a reduction of thetransaction price, and recognises the reduction of revenue when (or as) the later of therecognition of relevant revenue and the payment (or promised payment) of theconsideration to a customer, unless the payment to the customer is in exchange for adistinct good or service that the customer transfers to the Group.
⑤ Sales with a right of return
For sales with a right of return, the Group recognises the revenue in the amount ofconsideration to which the Group expects to be entitled in exchange for transferring controlof the goods to the customer, and recognises the amount expected to be refunded as aresult of the sales return as a refund liability. At the same time, an asset recognised foran entity’s right to recover goods from a customer on settling a refund liability is measuredby reference to the carrying amount of the goods less any expected costs to recover thegoods (including potential decreases in the value of the returned goods), that is, right-of-return assets, and recognised cost of sales based on the carrying amount of the transferredgoods at the time of transfer of the goods less the net amount of the asset cost above. At
each balance sheet date, the Group re-estimates the future sales return and remeasuresthe assets and liabilities above.
⑥ Warranties
The Group provides a warranty in connection with the sale of a good in accordancewith the contract and the relevant laws and regulations, etc. For an assurance-typewarranty that provides the customer the assurance that the good complies with agreed-upon specifications. When assessing whether a service-type warranty provides a customerwith a separate service in addition to the assurance that the good complies with agreed-upon specifications, the Group considers whether the warranty is required by law, thelength of the warranty coverage period and the nature of the tasks that the Group promisesto perform, etc.
(2) Differences in accounting policies for revenue recognition caused by the
adoption of different business models for similar businesses"□ Applicable" "√ Inapplicable"
39. Contract cost assets
"√ Applicable" "□ Inapplicable"
The Group’s contract cost assets include the costs to obtain and fulfil a contract andare classified as inventories, other current assets and other non-current assets by liquidity.
The Group recognises as an asset the incremental costs of obtaining a contract witha customer if the Group expects to recover those costs, unless the amortisation period ofthe asset is one year or less.
Other than the costs which are capitalised as inventories, fixed assets and intangibleassets, etc., costs incurred to fulfil a contract with a customer are capitalised as an assetif all of the following criteria are met:
(1) the costs relate directly to a contract or to an anticipated contract, including directlabour, direct materials, overheads (or similar expenses), costs that are explicitlychargeable to the customer and other costs that are incurred only because an entityentered into the contract;
(2) the costs generate or enhance resources of the Group that will be used insatisfying performance obligations in the future; and
(3) the costs are expected to be recovered.
The contract cost asset is amortised and charged to profit or loss on a systematicbasis that is consistent with the pattern of the revenue to which the asset related isrecognised.
The Group accrues provisions for impairment and recognises impairment losses tothe extent that the carrying amount of a contract cost asset exceeds:
(1) the remaining amount of consideration that the entity expects to receive inexchange for the goods or services to which the asset relates; less
(2) the costs that are expected to be incurred to transfer those related goods orservices.
40. Government grants
"√ Applicable" "□ Inapplicable"
Government grants are recognised when all attaching conditions will be complied withand the grants will be received. If a government grant is in the form of a transfer of amonetary asset, it is measured at the amount received or receivable.Asset-related government grants are recognised when the government documentdesignates that the government grants are used for constructing or forming long-termassets. If the government document is inexplicit, the Company should make a judgementbased on the basic conditions to obtain the government grants, and recognises them asasset-related government grants if the conditions are to form long-term assets throughconstruction or other method. Otherwise, the government grants should be income-related.The Company's government grants are subject to the gross method.A government subsidy related to income, which is used to compensate the relatedcosts or losses in the future period, is recognised as deferred income, and is recorded intothe profit or loss or to offset the relevant costs during the period when the related costsand expenses or losses are recognised; costs or losses incurred in compensation isdirectly recorded into the profit or loss or offset the relevant costs.A government grant relating to an asset shall be offset against the carrying amountsof relevant assets, or recognised as deferred income and amortised in profit or loss overthe useful life of the related asset by annual instalments in a systematic and rational way(however, a government grant measured at a nominal amount is recognised directly inprofit or loss). Where the assets are sold, transferred, retired or damaged before the endof their useful lives, the rest of the remaining deferred income is released to profit or lossfor the period in which the relevant assets are disposed of.
41. Deferred income tax asset/deferred income tax liability
"√ Applicable" "□ Inapplicable"
For temporary differences at the balance sheet date between the tax bases of assetsand liabilities and their carrying amounts, and temporary differences between the carryingamounts and the tax bases of items, the tax bases of which can be determined accordingto related tax laws for tax purposes but which have not been recognised as assets andliabilities, deferred taxes are provided using the balance sheet liability method.
Deferred tax liabilities are recognised for all taxable temporary differences, except:
(1) when the taxable temporary difference arises from the initial recognition of goodwill,or an asset or liability in a transaction that is not a business combination and, at the timeof transaction, affects neither accounting profit nor taxable profit or loss; and
(2) in respect of taxable temporary differences associated with investments insubsidiaries, associates and joint ventures, when the timing of the reversal of thetemporary differences can be controlled and it is probable that the temporary differenceswill not be reversed in the foreseeable future.
Deferred tax assets are recognised for all deductible temporary differences, and thecarryforward of unused tax losses and any unused tax credits. Deferred tax assets arerecognised to the extent that it is probable that taxable profit will be available against whichthe deductible temporary differences, the carryforward of unused tax losses and unusedtax credits can be utilised, except:
(1) when the deductible temporary difference arises from the initial recognition of anasset or liability in a transaction that is not a business combination and, at the time of thetransaction, affects neither the accounting profit nor taxable profit or loss; and
(2) in respect of the deductible temporary differences associated with investments insubsidiaries, associates and joint ventures, deferred tax assets are only recognised to theextent that it is probable that the temporary differences will be reversed in the foreseeablefuture and taxable profit will be available against which the temporary differences can beutilised in the future.
At the balance sheet date, deferred tax assets and liabilities are measured at the taxrates that are expected to apply to the period when the asset is realised or the liability issettled, in accordance with the requirements of tax laws. The measurement of deferredtax assets and deferred tax liabilities reflects the tax consequences that would follow fromthe manner in which the Group expects, at the balance sheet date, to recover the assetsor settle the liabilities.
The carrying amount of deferred tax assets is reviewed at the balance sheet date andreduced to the extent that it is no longer probable that sufficient taxable profit will beavailable in future periods to allow the deferred tax assets to be utilised. Unrecogniseddeferred tax assets are reassessed at the balance sheet date and are recognised to theextent that it has become probable that sufficient taxable profit will be available to allow allor part of the deferred tax asset to be recovered.
Deferred tax assets and deferred tax liabilities are offset if and only if the Group has alegally enforceable right to set off current tax assets and current tax liabilities, and thedeferred tax assets and deferred tax liabilities relate to income taxes levied by the sametaxation authority on either the same taxable entity or different taxable entities which intendeither to settle current tax liabilities and assets on a net basis, or to realise the assets andsettle the liabilities simultaneously, in each future period in which significant amounts ofdeferred tax liabilities or assets are expected to be settled or recovered.
42. Leases
(1) Accounting process for operating lease
"□ Applicable" "√ Inapplicable"
(2) Accounting treatment method for finance lease
"□ Applicable" "√ Inapplicable"
(3) Determination method and accounting treatment method for lease under the new
lease standard"√ Applicable" "□ Inapplicable"
At inception of a contract, the Group assesses whether the contract is, or contains, alease. A contract is, or contains, a lease if the contract conveys the right to control theuse of an identified asset for a period of time in exchange for consideration.
① As lessee
(a) The Group recognises lease liabilities and right-of-use assets, except for short-term leases and leases of low-value assets, as described in “V. 28” and “V. 34”
(b) Short-term leases and leases of low-value assets
The Group considers a lease that, at the commencement date of the lease, has alease term of 12 months or less, and does not contains any purchase option as a short-term lease; and a lease for which the value of the individual underlying asset is not morethan RMB 40,000 when it is new as a lease of low-value assets. If the Group subleases anasset, or expects to sublease an asset, the head lease does not qualify as a lease of alow-value asset. The Group does not recognize right-of-use assets and lease liabilities forshort-term leases and low-value asset leases. The Group recognises lease payments onshort-term leases and leases of low-value assets in the costs of the related asset or profitor loss on a straight-line basis
② As the lessor
A lease is classified as a finance lease if it transfers substantially all the risks andrewards incidental to ownership of an underlying asset, except that a lease is classified asan operating lease at the inception date.
③ As the lessor of operating lease
Rental income under an operating lease is recognised on a straight-line basisover the lease term, through profit or loss. Variable lease payments that are not includedin the measurement of lease receivables are charged to profit or loss as incurred. Initialdirect costs are capitalised and recognised over the lease term on the same basis as rentalincome, through profit or loss.
43. Other Important Accounting Policy and Accounting Estimates
?Applicable □inapplicable
The preparation of the financial statements requires management to make judgements,estimates and assumptions that affect the reported amounts of revenue, expenses, assetsand liabilities, and their accompanying disclosures, and the disclosure of contingentliabilities at the balance sheet date. Uncertainty about these assumptions and estimatescould result in outcomes that could require a material adjustment to the carrying amountsof the assets or liabilities affected in the future.
(1) Judgments
① Business models
The classification of financial assets at initial recognition depends on the Group'sbusiness model for managing financial assets. When determining the business model,the Group considers the methods to include evaluation and report financial assetperformance to key management, the risks affecting the performance of financial assetsand the risk management, and the manner in which the relevant management receivesremuneration. When assessing whether the objective is to collect contractual cash flows,the Group needs to analyse and judge the reason, timing, frequency and value of the salebefore the maturity date of the financial assets.
② Contractual cash flow characteristics
The classification of financial assets at initial recognition depends on the financialasset’s contractual cash flow characteristics, and the judgements on whether thecontractual cash flows are solely payments of principal and interest on the principal amountoutstanding, including when assessing the modification of the time value of money, thejudgement on whether there is any significant difference from the benchmark cash flow
and whether the fair value of the prepayment features is insignificant for financial assetswith prepayment features, etc.
（2）Estimation uncertainty
The key assumptions concerning the future and other key sources of estimationuncertainty at the balance sheet date, that have a significant risk of causing a materialadjustment to the carrying amounts of assets and liabilities within the future accountingperiods, are described below.
① Impairment of financial instruments
Commencing from January 1, 2019, the Company has adopted the expected creditloss model to assess the impairment of financial instruments. The Group is required toperform significant judgement and estimation and take into account all reasonable andsupportable information, including forward-looking information. When making suchjudgements and estimates, the Group infers the expected changes in the debtor's creditrisk based on historical repayment data combined with economic policies, macroeconomicindicators, industry risks and other factors. The different estimates may impact theimpairment assessment, and the provision for impairment may also not be representativeof the actual impairment loss in the future.
② Impairment of non-current assets other than financial assets (other than goodwill)
The Group assesses whether there are any indications of impairment for all non-current assets other than financial assets at the balance sheet date. Intangible assetswith indefinite useful lives are tested for impairment annually and at other times when suchan indication exists. Other non-current assets other than financial assets are tested forimpairment when there are indications that the carrying amounts may not be recoverable.An impairment exists when the carrying amount of an asset or asset group exceeds itsrecoverable amount, which is the higher of its fair value less costs of disposal and thepresent value of the future cash flows expected to be derived from it. The calculation ofthe fair value less costs of disposal based on available data from binding sales transactionsin an arm’s length transaction of similar assets or observable market prices lessincremental costs for disposing of the assets. When the calculations of the present valueof the future cash flows expected to be derived from an asset or asset group areundertaken, management must estimate the expected future cash flows from the asset orasset group and choose a suitable discount rate in order to calculate the present value ofthose cash flows.
③ Service life and estimated net residual value of fixed assets
During the use of fixed assets, the economic environment, technology environmentand other environments in which they are may have a greater impact on the service lifeand estimated net residual value of fixed assets. At the end of each year, the managementreviews the service life and estimated net residual value of fixed assets. If there isconclusive evidence that: the estimated service life of the fixed asset is different from theoriginal estimate, the service life of the fixed asset shall be adjusted; the estimated netresidual value of the fixed asset is different from the original estimate, and the estimatednet residual value shall be adjusted.
④ Provision of sales rebates and rewards
The Group applies the sales rebate and incentive policy to the dealers. According tothe relevant stipulations in the distribution agreement, with reference to the completion ofthe agreed assessment indicators by the dealers, sales rebates and incentives areestimated and accrued at the end of each year.
44. Changes in significant accounting policies and accounting estimates
(1). Change in accounting policies
"□ Applicable" "√ Inapplicable"
(2). Change of Significant Accounting Estimates
"□ Applicable" "√ Inapplicable"
(3) First-time implementation of new accounting standards or interpretations of
standards, etc. from 2022 involves adjustments to the financial statements as
of the beginning of the year of first-time implementation."□ Applicable" "√ Inapplicable"
45. Others
"□ Applicable" "√ Inapplicable"VI. Taxes
1. Types of major taxes and tax rates
Types of major taxes and tax rates"√ Applicable" "□ Inapplicable"
| Types of taxes | Tax basis | Tax rates |
| Value-added tax | The output VAT is calculated based on the sales of goods and taxable labor income according to the tax law. After deducting the offsetable input VAT in the reporting period, the difference is the value-added tax payable. | 13%, 9%, 6% |
| Urban maintenance and construction tax | It is paid based on the turnover tax actually paid | 7% |
| Corporate income tax | Based on the amount of income taxable | 25%, 20%, 15% |
| Education Surcharge | It is paid based on the turnover tax actually paid | 3% |
| Local education Surcharge | It is paid based on the turnover tax actually paid | 2% |
In case there exist taxpayers subject to different corporate income tax rates, disclose theinformation.
"√ Applicable" "□ Inapplicable"
| Taxpayers | Income tax rate (%) |
| Tianjin Suiwanwan Culture Communication Co., Ltd. | 20 |
| Tianjin Tianli E-bike Co., Ltd. | 20 |
| Aima Growth Venture Capital (Ningbo) Co., Ltd. | 20 |
| Xiaopa Electric Technology （Shanghai） Co., Ltd. | 20 |
| Chongqing Xiaoma Network Technology Co., Ltd. | 20 |
| Chongqing Aima Zhilian Logistics Co., Ltd. | 20 |
| Aima Technology (Chongqing) Co., Ltd. | 15 |
| Chongqing Xiaoma Intelligent Technology Co., Ltd. | 15 |
| Chongqing Aima Vehicle Technology Co., Ltd. | 15 |
| Chongqing Aima Vehicle Service Technology Co., Ltd. | 15 |
| Chongqing Aima Mechanical and Electrical Technology Co., Ltd. | 15 |
| Super Universe (Chongqing) Vehicle Industry Technology Co., Ltd. | 15 |
| Tianjin Aima Vehicle Technology Co., Ltd. | 15 |
| Guangdong Aima Vehicle Technology Co., Ltd. | 15 |
| Guangxi Aima Vehicle Technology Co., Ltd. | 15 |
| Henan Aima Vehicle Co., Ltd. | 15 |
| Tianjin Aima Share Technology Services Co., Ltd. | 15 |
2. Tax Preferences
"√ Applicable" "□ Inapplicable"In 2022, Tianjin Suiwanwan Cultural Communication Co., Ltd., Xiaopa ElectricTechnology (Shanghai) Co., Ltd., Aima Growth Venture Capital (Ningbo) Co., Ltd.,Chongqing Aima Zhilian Logistics Co., Ltd., Tianjin Tianli E-Bike Co., Ltd. and ChongqingXiaoma Network Technology Co., Ltd. enjoyed preferential taxes for small low-profitenterprises. In accordance with the Enterprise Income Tax Law of the People’s Republicof China and the regulations for the implementation, and the Ministry of Finance and theState Administration of Taxation on Implementing the Inclusive Tax Deduction andExemption Policies for Micro and Small Enterprises (CAISHUI [2019] No. 13), from January1, 2019 to December 31, 2022, the annual taxable income of a small low-profit enterprisethat is not more than RMB 1 million shall be included in its taxable income at the reducedrate of 25%, with the applicable enterprise income tax rate of 20%;and the annual taxableincome that is not less than RMB 1 million nor more than RMB 3 million shall beincluded in its taxable income at the reduced rate of 50%, with the applicable enterpriseincome tax rate of 20%. In accordance with the Announcement of the State Administrationof Taxation on the Implementation of Preferential Income Tax Policies Supporting theDevelopment of Small and Low-profit Enterprises and Individual Industrial and CommercialHouseholds (State Administration of Taxation Announcement No. 8 [2021]),from January1, 2022 to December 31, 2022, the annual taxable income of small and low-profitenterprises does not exceed RMB 1 million, a reduction of 12.5% shall be included in thetaxable income, and the corporate income tax shall be paid at the rate of 20%.
Aima Technology (Chongqing) Co., Ltd., Chongqing Aima Vehicle Technology Co.,Ltd., Chongqing Xiaoma Intelligent Technology Co., Ltd., Chongqing Aima Vehicle ServiceTechnology Co., Ltd., Chongqing Aima Mechanical and Electrical Technology Co., Ltd.and Super Universe (Chongqing) Vehicle Industry Technology Co., Ltd. belong to theencouraged industrial companies of the Western Development, and can enjoy the taxpreference of 15% corporate income tax from 2021 to 2030.Tianjin Aima Vehicle Technology Co., Ltd., Guangdong Aima Vehicle Technology Co.,Ltd. and Guangxi Aima Vehicle Technology Co., Ltd. were qualified for hi-tech enterprisein 2021, and may enjoy the tax preference of 15% corporate income tax from 2021 to 2023.Henan Aima Vehicle Co., Ltd. and Tianjin Aima Share Technology Services Co., Ltd.were qualified for hi-tech enterprise in 2022, and may enjoy the tax preference of 15%corporate income tax from 2022 to 2024.
3. Others
"□ Applicable" "√ Inapplicable"VII. Notes to items of consolidated financial statements
1. Currency funds
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Ending balance | Opening balance |
| Cash | ||
| Cash at banks | 6,030,234,206.13 | 2,844,921,448.22 |
| Others | 603,220,864.16 | 1,221,862.48 |
| Total | 6,633,455,070.29 | 2,846,143,310.70 |
| Where: Total amount with restricted ownership due to mortgage, pledge or freezing, etc. | 1,096,591,549.00 |
Other notes
For the bank demand deposits, the interest income is received at the interest rate ofbank demand deposits. As at December 31, 2022, the Group holds one-year time depositswith the amount of RMB 470,000,000.00. The deposit periods for time deposits were 12months depending on the Group's cash requirements. Interest income earned on currentdeposits is calculated by using the current deposit interest rate.
Details of the amounts restricted for use due to mortgage, pledge or freezing areshown in X. VII.81.
2. Financial assets held for trading
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Ending balance | Opening balance |
| Financial assets at fair value through profit or loss | 142,668,675.59 | 1,265,981,818.24 |
| Where: | ||
| Equity investments | 73,480,000.00 | 85,600,000.00 |
| Financial products | 69,188,675.59 | 1,180,381,818.24 |
| Financial assets designated at fair value through profit or loss | ||
| Where: | ||
| Total | 142,668,675.59 | 1,265,981,818.24 |
Other notes:
"√ Applicable" "□ Inapplicable"As at December 31, 2022, the Company had no financial products with restrictedownership (December 31, 2021: RMB 390,000,000.00).
3. Derivative financial assets
"□ Applicable" "√ Inapplicable"
4.Notes receivable
(1) Classification of notes receivable
"□ Applicable" "√ Inapplicable"
(2) Notes receivable already pledged by the Company at the end of the reportingperiod"□ Applicable" "√ Inapplicable"
(3) Endorsed or discounted notes receivable at the end of the reporting period, butnot yet due on the balance sheet date"□ Applicable" "√ Inapplicable"
(4) Notes transferred to receivables due to issuer’s default at the end of the reportingperiod"□ Applicable" "√ Inapplicable"
(5) Classified disclosure based on the method of provision for bad debt"□ Applicable" "√ Inapplicable"Individual provision for bad debts:
"□ Applicable" "√ Inapplicable"Provision for bad and doubtful debts based on portfolio:
"□ Applicable" "√ Inapplicable"If the provision for bad debt is accrued in accordance with the general model of expectedcredit loss, please refer to the disclosure of other receivables"□ Applicable" "√ Inapplicable"
(6) Provision for bad debts
"□ Applicable" "√ Inapplicable"
(7) Notes receivable actually written off in the reporting period
"□ Applicable" "√ Inapplicable"Other notes"□ Applicable" "√ Inapplicable"
5. Accounts receivable
(1) Disclosed based on aging
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Aging | Ending book balance |
| Within 1 year | |
| Where: Itemized within 1 year | |
| Within 1 year | 291,745,445.04 |
| Sub-total within 1 year | 291,745,445.04 |
| 1 to 2 years | 5,622,082.11 |
| 2 to 3 years | 138,725.00 |
| Over 3 years | |
| Total | 297,506,252.15 |
(2) Classified disclosure based on the method of provision for bad debt"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Categories | Ending balance | Opening balance | ||||||||
| Book balance | Bad debt reserve | Book value | Book balance | Bad debt reserve | Book value | |||||
| Amount | Proportion (%) | Amount | Provision proportion (%) | Amount | Proportion (%) | Amount | Provision proportion (%) | |||
| Assessed bad debt provision individually | 3,176,317.65 | 1.07 | 3,176,317.65 | 100.00 | ||||||
| Where: | ||||||||||
| Individually significant amount and separate provision for bad debts | 3,176,317.65 | 1.07 | 3,176,317.65 | 100.00 | ||||||
| Assessed bad debt provision in portfolio | 294,329,934.50 | 98.93 | 3,964,387.39 | 1.35 | 290,365,547.11 | 209,966,445.36 | 100.00 | 2,336,643.71 | 1.11 | 207,629,801.65 |
| Where: | ||||||||||
| Portfolios based on credit risk characteristics | 294,329,934.50 | 98.93 | 3,964,387.39 | 1.35 | 290,365,547.11 | 209,966,445.36 | 100.00 | 2,336,643.71 | 1.11 | 207,629,801.65 |
| Total | 297,506,252.15 | 100.00 | 7,140,705.04 | 2.40 | 290,365,547.11 | 209,966,445.36 | 100.00 | 2,336,643.71 | 1.11 | 207,629,801.65 |
Individual provision for bad debts:
?Applicable □ Inapplicable
In: Yuan Currency: RMB
| Name | Ending balance | |||
| Book balance | Bad debt provision | Provision proportion (%) | Provision reason | |
| Suning Procurement Center of Suning Tesco Group Co., Ltd. | 3,176,317.65 | 3,176,317.65 | 100.00 | Unlikely to be recovered |
| Total | 3,176,317.65 | 3,176,317.65 | 100.00 | / |
Notes for Individual provision for bad debts:
"□ Applicable" "√ Inapplicable"Provision for bad and doubtful debts based on portfolio:
?Applicable □ InapplicableProvision items on portfolio
In: Yuan Currency: RMB
| Name | Ending balance | ||
| Accounts receivable | Bad debt provision | Provision proportion (%) | |
| Within 1 year (with 1 year inclusive) | 291,742,766.04 | 3,296,693.25 | 1.13 |
| 1 to 2 years (with 2 years inclusive) | 2,448,443.46 | 596,930.52 | 24.38 |
| 2 to 3 years (with 3 years inclusive) | 138,725.00 | 70,763.62 | 51.01 |
| Total | 294,329,934.50 | 3,964,387.39 | 1.35 |
Criteria of and note to recognition of provision for bad debts based on portfolio:
"□ Applicable" "√ Inapplicable"If the provision for bad debt is accrued in accordance with the general model of expectedcredit loss, please refer to the disclosure of other receivables"□ Applicable" "√ Inapplicable"
(3) Provision for bad debts
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Categories | Opening balance | Amount of movement during the reporting period | Ending balance | |||
| Provision | Recovery or reversal | Charge-off or write-off | Other changes | |||
| Assessed bad debt provision in portfolio | 2,336,643.71 | 9,474,851.97 | 2,336,643.71 | 2,334,146.93 | 7,140,705.04 | |
| Total | 2,336,643.71 | 9,474,851.97 | 2,336,643.71 | 2,334,146.93 | 7,140,705.04 | |
Where the significant amount of the reserve for bad debt recovered or reversed:
"□ Applicable" "√ Inapplicable"
(4) Accounts receivable actually written off in the reporting period
"□ Applicable" "√ Inapplicable"
(5) Accounts receivable owed by the top five debtors based on the ending balance"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Organization name | Ending balance | Proportion in total ending balance of accounts receivable (%) | Ending balance of the provision for bad debts |
| Company 1 | 15,998,598.60 | 5.38 | 180,784.16 |
| Company 2 | 10,927,560.62 | 3.67 | 123,481.44 |
| Company 3 | 8,753,822.48 | 2.94 | 98,918.19 |
| Company 4 | 8,521,841.71 | 2.86 | 304,685.07 |
| Company 5 | 8,140,000.00 | 2.74 | 91,982.00 |
| Total | 52,341,823.41 | 17.59 | 799,850.86 |
(6) Account receivable with recognition terminated due to transfer of financialassets"□ Applicable" "√ Inapplicable"
(7) Amount of assets and liabilities formed through transfer of account receivableand continuing to be involved"□ Applicable" "√ Inapplicable"
Other notes:
"□ Applicable" "√ Inapplicable"
6. Receivables financing
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Ending balance | Opening balance |
| Bank acceptance notes | 8,332,754.00 | 49,295,422.59 |
| Total | 8,332,754.00 | 49,295,422.59 |
Change of increase/decrease and fair value of accounts receivable financing financing inthe reporting period:
"□ Applicable" "√ Inapplicable"If the provision for bad debt is accrued in accordance with the general model of expectedcredit loss, please refer to the disclosure of other receivables"□ Applicable" "√ Inapplicable"Other notes:
"□ Applicable" "√ Inapplicable"
7. Prepayments
(1) Prepayments are presented based on aging
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Aging | Ending balance | Opening balance | ||
| Amount | Proportion (%) | Amount | Proportion (%) | |
| Within 1 year | 16,958,698.72 | 96.61 | 20,878,129.11 | 96.94 |
| 1 to 2 years | 342,330.47 | 1.95 | 559,969.27 | 2.60 |
| 2 to 3 years | 185,675.17 | 1.06 | ||
| Over 3 years | 67,870.01 | 0.38 | 100,000.00 | 0.46 |
| Total | 17,554,574.37 | 100.00 | 21,538,098.38 | 100.00 |
Description of the reasons for the untimely settlement of prepayments with an age ofmore than 1 year and significant amounts:
None
(2) Prepayments to the top five debtors of the ending balance collected based on
the debtors of the prepayments"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Organization name | Ending balance | Proportion in total ending balance of prepayments (%) |
| Supplier 1 | 720,886.95 | 4.11 |
| Supplier 2 | 694,622.39 | 3.96 |
| Supplier 3 | 563,244.77 | 3.21 |
| Supplier 4 | 538,200.00 | 3.07 |
| Supplier 5 | 537,566.43 | 3.06 |
| Total | 3,054,520.54 | 17.41 |
Other notes"□ Applicable" "√ Inapplicable"
8.Other receivables
Items Presentation"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Ending balance | Opening balance |
| Interest receivables | 1,160,941.82 | 642,997.45 |
| Other receivables | 26,890,978.44 | 149,426,857.13 |
| Total | 28,051,920.26 | 150,069,854.58 |
Other notes:
"□ Applicable" "√ Inapplicable"Interest receivables
(1) Classification of interest receivable
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Ending balance | Opening balance |
| Interest of accounts receivable | 1,160,941.82 | 642,997.45 |
| Total | 1,160,941.82 | 642,997.45 |
(2) Significant overdue interest
"□ Applicable" "√ Inapplicable"
(3) Provision for bad debts
"□ Applicable" "√ Inapplicable"Other notes:
"□ Applicable" "√ Inapplicable"Dividend receivable
(1) Dividend receivable
"□ Applicable" "√ Inapplicable"
(2) Significant dividends receivable with age exceeding 1 year
"□ Applicable" "√ Inapplicable"
(3) Provision for bad debts
"□ Applicable" "√ Inapplicable"Other notes:
"□ Applicable" "√ Inapplicable"Other receivables
(1) Disclosed based on aging
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Aging | Ending book balance |
| Within 1 year | |
| Where: Itemized within 1 year | |
| Within 1 year | 25,350,872.34 |
| Sub-total within 1 year | 25,350,872.34 |
| 1 to 2 years | 205,256.89 |
| 2 to 3 years | 82,649.15 |
| Over 3 years | 1,265,939.69 |
| Total | 26,904,718.07 |
(2) Classification based on the nature of fund
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Nature of the fund | Ending book balance | Opening book balance |
| Three guarantees | 11,527,981.67 | 5,447,697.83 |
| Receivable from disposal of fixed assets | 4,928,340.21 | 5,248,574.23 |
| Deposits | 1,766,722.22 | 138,555,562.94 |
| Advance to employees | 242,296.80 | 406,934.00 |
| Construction cost | 24,164,117.84 | |
| Others | 8,439,377.17 | 1,611,062.21 |
| Total | 26,904,718.07 | 175,433,949.05 |
(3) Provision for bad debts
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Bad debt provision | Stage 1 | Stage 2 | Stage 3 | Total |
| 12-month expected credit losses | Lifetime ECLs (no credit impairment incurred) | Lifetime ECLs (credit impairment already incurred) | ||
| Balance as at January 1, 2022 | 21,647.20 | 1,821,326.88 | 24,164,117.84 | 26,007,091.92 |
| Balance as at January 1, 2022 in the reporting period | ||||
| -- transferred into Stage 2 | ||||
| -- transferred into Stage 3 | ||||
| -- revered to Stage 2 | ||||
| -- reversed to Stage 1 | ||||
| Accrual | 10,300.00 | 3,439.63 | 13,739.63 | |
| Reversal | 21,647.20 | 1,821,326.88 | 24,164,117.84 | 26,007,091.92 |
| Transfer out | ||||
| Write-off | ||||
| Other changes | ||||
| Balance as at December 31, 2022 | 10,300.00 | 3,439.63 | 13,739.63 |
Note to the significant changes in the book balance of other receivables with changes inprovision for loss in the reporting period:
"□ Applicable" "√ Inapplicable"The amount of provision for bad debts in the reporting period and the basis for assessingwhether the credit risk of financial instruments has increased significantly"□ Applicable" "√ Inapplicable"
(4) Provision for bad debts
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Categories | Opening balance | Amount of movement during the reporting period | Ending balance | |||
| Provision | Recovery or reversal | Charge-off or write-off | Other changes | |||
| Bad debt provision | 26,007,091.92 | 13,739.63 | 26,007,091.92 | 13,739.63 | ||
| Total | 26,007,091.92 | 13,739.63 | 26,007,091.92 | 13,739.63 | ||
Where a significant amount of the reserve for bad debt recovered or reversed during thereporting period:
"□ Applicable" "√ Inapplicable"
(5) Other receivables actually written off in the reporting period
"□ Applicable" "√ Inapplicable"
(6) Other receivables owed by the top five debtors based on the ending balance"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Organization name | Nature of Payment | Ending balance | Aging | Proportion in total ending balance of other receivables | Bad debt reserve Ending balance |
| Company 1 | Receivables of fixed assets disposals | 4,821,488.81 | Within 1 year | 17.92 | |
| Company 2 | Deposits | 500,000.00 | Over 3 years | 1.86 | |
| Company 3 | Deposits | 450,000.00 | Over 3 years | 1.67 | |
| Company 4 | Receivables of fixed assets disposals | 359,238.69 | Within 1 year | 1.34 |
| Company 5 | Others | 291,482.80 | Within 1 year | 1.08 | |
| Total | / | 6,422,210.30 | / | 23.87 |
(7) Accounts receivable involving government subsidy
"□ Applicable" "√ Inapplicable"
(8) Other receivables with recognition terminated due to transfer of financial assets"□ Applicable" "√ Inapplicable"
(9) Amount of assets and liabilities formed through transfer of other receivables
and continuing to be involved"□ Applicable" "√ Inapplicable"Other notes:
"□ Applicable" "√ Inapplicable"
9. Inventories
(1) Classification of inventories
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Ending balance | Opening balance | ||||
| Book balance | Provision for write-down of inventories / impairment of costs to fulfil a contract | Book value | Book balance | Provision for write-down of inventories / impairment of costs to fulfil a contract | Book value | |
| Raw materials | 343,462,948.77 | 63,577.07 | 343,399,371.70 | 359,993,370.61 | 4,730,148.62 | 355,263,221.99 |
| Finished goods | 467,111,915.62 | 467,111,915.62 | 440,425,986.90 | 440,425,986.90 | ||
| Total | 810,574,864.39 | 63,577.07 | 810,511,287.32 | 800,419,357.51 | 4,730,148.62 | 795,689,208.89 |
(2) Provision for write-down of inventories / impairment of costs to fulfil a contract"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Opening balance | Amount increased in the reporting period | Decrease in the reporting period | Ending balance | ||
| Provision | Others | Reversal or write-off | Others | |||
| Raw materials | 4,730,148.62 | 63,577.07 | 4,730,148.62 | 63,577.07 | ||
| Total | 4,730,148.62 | 63,577.07 | 4,730,148.62 | 63,577.07 | ||
(3) Note to the amount of capitalized borrowing costs involved in the ending balanceof inventories"□ Applicable" "√ Inapplicable"
(4) Note to the current amortization amount of contract performance costs"□ Applicable" "√ Inapplicable"Other notes"□ Applicable" "√ Inapplicable"
10. Contract assets
(1) About contract assets
"□ Applicable" "√ Inapplicable"
(2) The amount involved in the significant change of the book value and the cause
during the reporting period"□ Applicable" "√ Inapplicable"
(3) Provision for impairment of contract assets in the reporting period"□ Applicable" "√ Inapplicable"If the provision for bad debt is accrued in accordance with the general model of expectedcredit loss, please refer to the disclosure of other receivables"□ Applicable" "√ Inapplicable"Other notes:
"□ Applicable" "√ Inapplicable"
11. Held-for-sale assets
"□ Applicable" "√ Inapplicable"
12. Non-current assets due within a year
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Ending balance | Opening balance |
| Non-current assets due within one year | 3,524,708,328.77 | |
| Total | 3,524,708,328.77 |
Significant debt investment and other debt investments at the end of the reporting period:
"□ Applicable" "√ Inapplicable"Other notes：
As at December 31, 2022, the Company issued bank acceptance bills pledged withRMB 3,200,000,000.00 of three-year time certificates of deposit due within 1 year(December 31, 2021: None)
13. Other current assets
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Ending balance | Opening balance |
| Input VAT to be credited | 61,570,447.87 | 91,878,628.00 |
| CIT paid in advance | 15,453,043.29 | 78,929,325.30 |
| Total | 77,023,491.16 | 170,807,953.30 |
14. Debt investment
(1) About debt investment
"□ Applicable" "√ Inapplicable"
(2) Significant debt investment at the end of the reporting period
"□ Applicable" "√ Inapplicable"
(3) Provision for impairment
"□ Applicable" "√ Inapplicable"The amount of provision for impairment in the reporting period and the basis for assessingwhether the credit risk of financial instruments has increased significantly"□ Applicable" "√ Inapplicable"Other notes"□ Applicable" "√ Inapplicable"
15. Other debt investment
(1) About other debt investment
"□ Applicable" "√ Inapplicable"
(2) Significant other debt investment at the end of the reporting period"□ Applicable" "√ Inapplicable"
(3) Provision for impairment
"□ Applicable" "√ Inapplicable"The amount of provision for impairment in the reporting period and the basis for assessingwhether the credit risk of financial instruments has increased significantly"□ Applicable" "√ Inapplicable"Other notes:
"□ Applicable" "√ Inapplicable"
16. Long-term receivables
(1) About long-term receivables
"□ Applicable" "√ Inapplicable"
(2) Provision for bad debts
"□ Applicable" "√ Inapplicable"The amount of provision for bad debts in the reporting period and the basis for assessingwhether the credit risk of financial instruments has increased significantly"□ Applicable" "√ Inapplicable"
(3) Long term receivables with recognition terminated due to transfer of financialassets"□ Applicable" "√ Inapplicable"
(4) Amount of assets and liabilities formed through transfer of long-term receivablesand continuing to be involved"□ Applicable" "√ Inapplicable"Other notes"□ Applicable" "√ Inapplicable"
17. Long-term equity investments
?Applicable □ Inapplicable
In: Yuan Currency: RMB
| Investees | Opening balance | Increase/ Decrease (+ / -) in the reporting period | Ending balance | Impairment at the end of the year | |||||||
| Increase | Decrease | Investment income under the equity method | Other comprehensive income | Other equity movement | Cash dividend declared | Provision for impairment | Others | ||||
| I. Joint Venture | |||||||||||
| Sub-total | |||||||||||
| II. Associates | |||||||||||
| Today Sunshine | 11,569,394.32 | -1,665,571.43 | 9,903,822.89 | ||||||||
| Tianjin Jiema | 14,575,599.85 | 1,835,264.92 | -2,800,000.00 | 13,610,864.77 | |||||||
| Geling New Energy | 19,255,284.44 | 24,502,800.00 | -4,428,681.67 | 39,329,402.77 | |||||||
| Taizhou Jinfu | 54,950,323.80 | -16,133,028.28 | 38,817,295.52 | ||||||||
| Beijing Zhongzhong | 4,722,677.82 | 23,000,000.00 | -1,231,993.37 | 26,490,684.45 | |||||||
| Sub-total | 105,073,280.23 | 47,502,800.00 | -21,624,009.83 | -2,800,000.00 | 128,152,070.40 | ||||||
| Total | 105,073,280.23 | 47,502,800.00 | -21,624,009.83 | -2,800,000.00 | 128,152,070.40 | ||||||
18. Other equity instrument investment
(1) Other equity instrument investment
"□ Applicable" "√ Inapplicable"
(2) Investment in non-transactional equity instruments
"□ Applicable" "√ Inapplicable"Other notes:
"□ Applicable" "√ Inapplicable"
19. Other non-current financial assets
"□ Applicable" "√ Inapplicable"Other notes:
"□ Applicable" "√ Inapplicable"
20. Investment properties
Measurement model for investment-oriented real estate
(1) Investment properties measured based on the cost method
In: Yuan Currency: RMB
| Items | Buildings | Land use rights | Total |
| I. Original book value | |||
| 1. Opening balance | 246,029,096.71 | 79,009,461.34 | 325,038,558.05 |
| 2. Amount increased in the reporting period | 121,652.01 | 32,841.04 | 154,493.05 |
| (1) Purchased | |||
| (2) Inventories\fixed assets/construction in process transferred in | 121,652.01 | 32,841.04 | 154,493.05 |
| (3) Increase of enterprise consolidation | |||
| 3. Amount decreased in the reporting period | |||
| (1) Disposals | |||
| (2) Other transfer out | |||
| 4. Ending balance | 246,150,748.72 | 79,042,302.38 | 325,193,051.10 |
| II. Accumulative depreciation and accumulative amortization | |||
| 1. Opening balance | 47,801,869.77 | 7,048,144.01 | 54,850,013.78 |
| 2. Amount increased in the reporting period | 14,129,348.86 | 1,832,954.82 | 15,962,303.68 |
| (1) Depreciation and amortisation provided during the year | 14,113,825.29 | 1,827,809.72 | 15,941,635.01 |
| (2)Transfer-in of the fixed asset or intangible assets | 15,523.57 | 5,145.10 | 20,668.67 |
| 3. Amount decreased in the reporting period | |||
| (1) Disposal | |||
| (2) Other transfer out | |||
| 4. Ending balance | 61,931,218.63 | 8,881,098.83 | 70,812,317.46 |
| III. Provision for impairment | |||
| 1. Opening balance | |||
| 2. Amount increased in the reporting period | |||
| (1) Provision | |||
| 3. Amount decreased in the reporting period | |||
| (1) Disposal | |||
| (2) Other transfer out | |||
| 4. Ending balance | |||
| IV. Book value | |||
| 1.Book value at the end of the reporting period | 184,219,530.09 | 70,161,203.55 | 254,380,733.64 |
| 2.Book value at the beginning of the reporting period | 198,227,226.94 | 71,961,317.33 | 270,188,544.27 |
(2) Investment property with no title certificate
"□ Applicable" "√ Inapplicable"Other notes"□ Applicable" "√ Inapplicable"
21. Fixed asset
Items Presentation"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Ending balance | Opening balance |
| Fixed asset | 2,032,571,583.72 | 1,964,000,630.29 |
| Disposal of fixed assets | 52,325.85 | 2,085,074.02 |
| Total | 2,032,623,909.57 | 1,966,085,704.31 |
Fixed asset
(1) About fixed assets
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Buildings | Machinery and equipment | Vehicles | Office equipment | Electronic equipment | Production tools | Total |
| I. Original book value: | |||||||
| 1. Opening balance | 1,908,363,871.86 | 514,978,381.70 | 37,869,667.39 | 36,399,405.37 | 43,231,672.84 | 244,091,091.18 | 2,784,934,090.34 |
| 2. Amount increased in the reporting period | 44,019,733.95 | 84,760,593.86 | 1,629,341.47 | 5,744,487.22 | 22,002,354.70 | 147,559,953.46 | 305,716,464.66 |
| (1) Purchase | 3,720,260.90 | 39,225,963.63 | 1,406,102.53 | 4,246,254.35 | 14,855,665.50 | 23,420,712.65 | 86,874,959.56 |
| (2) Transfers from construction in progress | 40,299,473.05 | 45,534,630.23 | 223,238.94 | 1,498,232.87 | 7,146,689.20 | 124,139,240.81 | 218,841,505.10 |
| (3) Increase of enterprise consolidation | |||||||
| 3. Amount decreased in the reporting period | 237,802.28 | 16,804,383.23 | 118,571.74 | 877,742.03 | 2,359,652.21 | 42,464,270.21 | 62,862,421.70 |
| (1) Disposals or retirements | 116,150.27 | 16,804,383.23 | 118,571.74 | 877,742.03 | 2,359,652.21 | 42,464,270.21 | 62,740,769.69 |
| (2) Transferred into investment properties | 121,652.01 | 121,652.01 | |||||
| 4. Ending balance | 1,952,145,803.53 | 582,934,592.33 | 39,380,437.12 | 41,266,150.56 | 62,874,375.33 | 349,186,774.43 | 3,027,788,133.30 |
| II. Accumulative depreciation | |||||||
| 1. Opening balance | 452,772,632.21 | 187,186,767.20 | 23,631,127.71 | 17,671,357.06 | 28,327,255.86 | 108,124,306.51 | 817,713,446.55 |
| 2. Amount increased in the reporting period | 82,130,045.54 | 44,826,252.61 | 4,709,880.55 | 6,108,250.54 | 8,572,096.12 | 67,085,473.64 | 213,431,999.00 |
| (1) Depreciation provided during the year | 82,130,045.54 | 44,826,252.61 | 4,709,880.55 | 6,108,250.54 | 8,572,096.12 | 67,085,473.64 | 213,431,999.00 |
| 3. Amount decreased in the reporting period | 24,286.00 | 10,074,440.33 | 101,961.60 | 393,166.94 | 1,910,861.68 | 26,158,334.06 | 38,663,050.61 |
| (1) Disposals or retirements | 8,762.43 | 10,074,440.33 | 101,961.60 | 393,166.94 | 1,910,861.68 | 26,158,334.06 | 38,647,527.04 |
| (2) Transferred into investment properties | 15,523.57 | 15,523.57 | |||||
| 4. Ending balance | 534,878,391.75 | 221,938,579.48 | 28,239,046.66 | 23,386,440.66 | 34,988,490.30 | 149,051,446.09 | 992,482,394.94 |
| III. Provision for impairment | |||||||
| 1. Opening balance | 3,219,879.02 | 134.48 | 3,220,013.50 | ||||
| 2. Amount increased in the reporting period | 1,720,019.68 | 1,615,871.72 | 3,335,891.40 | ||||
| (1) Provision | 1,720,019.68 | 1,615,871.72 | 3,335,891.40 | ||||
| 3. Amount decreased in the reporting period | 2,988,624.01 | 134.48 | 832,991.77 | 3,821,750.26 | |||
| (1) Disposals or retirements | 2,988,624.01 | 134.48 | 832,991.77 | 3,821,750.26 | |||
| 4. Ending balance | 1,951,274.69 | 782,879.95 | 2,734,154.64 | ||||
| IV. Book value | |||||||
| 1.Book value at the end of the reporting period | 1,417,267,411.78 | 359,044,738.16 | 11,141,390.46 | 17,879,709.90 | 27,885,885.03 | 199,352,448.39 | 2,032,571,583.72 |
| 2.Book value at the beginning of the reporting period | 1,455,591,239.65 | 324,571,735.48 | 14,238,539.68 | 18,728,048.31 | 14,904,282.50 | 135,966,784.67 | 1,964,000,630.29 |
(2) About temporarily idle fixed assets
"□ Applicable" "√ Inapplicable"
(3) Fixed assets rented through finance lease
"□ Applicable" "√ Inapplicable"
(4) Fixed assets leased through operating lease
"□ Applicable" "√ Inapplicable"
(5) About fixed assets without title certificate
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Book value | The reason why the title certificate has not been granted |
| Buildings | 5,629,363.91 | For self-built auxiliary function houses, it is unnecessary to apply for title certificate. |
Other notes:
"√ Applicable" "□ Inapplicable"
On December 31, 2022, the Group has no fixed assets of buildings and buildingssubject to ownership restrictions (December 31, 2020: RMB 51,854,177.47).
Disposal of fixed assets"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Ending balance | Opening balance |
| Disposal of fixed assets | 52,325.85 | 2,085,074.02 |
| Total | 52,325.85 | 2,085,074.02 |
22. Construction in progress
Items Presentation"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Ending balance | Opening balance |
| Engineering supplies | 63,522,676.76 | 96,123,598.65 |
| Construction in progress | 22,488,641.34 | 18,007,496.51 |
| Total | 86,011,318.10 | 114,131,095.16 |
Other notes:
"□ Applicable" "√ Inapplicable"Construction in progress
(1) About construction in progress
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Ending balance | Opening balance | ||||
| Book balance | Impairment reserve | Book value | Book balance | Impairment reserve | Book value | |
| Taizhou Manufacture’s factory plant | 17,716,240.10 | 17,716,240.10 | ||||
| Aima Group’s Software | 10,749,759.11 | 10,749,759.11 | 35,596,259.61 | 35,596,259.61 | ||
| Tianjin Vehicle’s moulds | 8,403,362.82 | 8,403,362.82 | ||||
| Zhejiang Vehicle’s buildings | 8,269,289.96 | 8,269,289.96 | ||||
| Jiangsu Vehicle’s moulds | 3,272,592.74 | 3,272,592.74 | ||||
| Henan Vehicle’s machinery equipment | 2,352,654.94 | 2,352,654.94 | ||||
| Guangdong Vehicle’s moulds | 2,137,168.19 | 2,137,168.19 | ||||
| Chongqing Vehicle’s factory plant | 23,791,124.92 | 23,791,124.92 | ||||
| Guangdong Vehicle’s machinery equipment | 10,564,885.68 | 10,564,885.68 | ||||
| Tianjin Vehicle’s machinery equipment | 5,289,305.01 | 5,289,305.01 | ||||
| Jiangsu Vehicle’s moulds | 5,026,548.70 | 5,026,548.70 | ||||
| Chongqing Vehicle’s machinery equipment | 2,682,300.92 | 2,682,300.92 | ||||
| Tianjin Vehicle’s constructions | 2,655,991.45 | 2,655,991.45 | ||||
| Others | 10,621,608.90 | 10,621,608.90 | 10,517,182.36 | 10,517,182.36 | ||
| Total | 63,522,676.76 | 63,522,676.76 | 96,123,598.65 | 96,123,598.65 |
(2) Movements of important construction in progress projects in the reportingperiod"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Project name | Budget | Opening balance | Addition | Transferred to the fixed assets | Other decreases | Ending balance | The proportion of projects investment accounted for budget (%) | Project Progress |
| Chongqing Vehicle factory building | 201,880,000.00 | 23,791,124.92 | 13,050,211.92 | -36,841,336.84 | 102 | 102 | ||
| Tianjin Vehicle equipment | 193,410,800.00 | 5,289,305.01 | 50,517,068.23 | -55,035,576.79 | 770,796.45 | 85 | 85 | |
| Aima Group software system | 80,720,000.00 | 35,596,259.61 | 14,212,065.44 | -49,710,693.91 | 97,631.14 | 108 | 108 | |
| Total | 476,010,800.00 | 64,676,689.54 | 77,779,345.59 | -141,587,607.54 | 868,427.59 | / | / |
(3) Provision for impairment of construction in progress in the reporting period"□ Applicable" "√ Inapplicable"
Other notes"□ Applicable" "√ Inapplicable"Engineering supplies
(4). About engineering supplies
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Ending balance | Opening balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Engineering supplies | 22,488,641.34 | 22,488,641.34 | 18,007,496.51 | 18,007,496.51 | ||
| Total | 22,488,641.34 | 22,488,641.34 | 18,007,496.51 | 18,007,496.51 | ||
23. Productive biological asset
(1) Productive biological asset by using the cost measurement model"□ Applicable" "√ Inapplicable"
(2) Productive biological asset by using the fair value measurement model"□ Applicable" "√ Inapplicable"Other notes"□ Applicable" "√ Inapplicable"
24. Oil and Gas Assets
"□ Applicable" "√ Inapplicable"
25. Right-of-use assets
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Buildings | Total |
| I. Original book value: | ||
| 1. Opening balance | 49,567,842.94 | 49,567,842.94 |
| 2. Amount increased in the reporting period | 16,840,537.52 | 16,840,537.52 |
| Newly leased | 16,840,537.52 | 16,840,537.52 |
| 3. Amount decreased in the reporting period | 9,319,172.28 | 9,319,172.28 |
| Expiration of lease contract | 9,319,172.28 | 9,319,172.28 |
| 4. Ending balance | 57,089,208.18 | 57,089,208.18 |
| II. Accumulative depreciation | ||
| 1. Opening balance | 8,341,009.36 | 8,341,009.36 |
| 2. Amount increased in the reporting period | 9,032,240.71 | 9,032,240.71 |
| (1) Depreciation provided during the year | 9,032,240.71 | 9,032,240.71 |
| 3. Amount decreased in the reporting period | 2,804,537.69 | 2,804,537.69 |
| (1) Disposals | 2,804,537.69 | 2,804,537.69 |
| 4. Ending balance | 14,568,712.38 | 14,568,712.38 |
| III. Provision for impairment | ||
| 1. Opening balance | ||
| 2. Amount increased in the reporting period | ||
| (1) Provision | ||
| 3. Amount decreased in the reporting period | ||
| (1) Disposal | ||
| 4. Ending balance | ||
| IV. Book value | ||
| 1.Book value at the end of the reporting period | 42,520,495.80 | 42,520,495.80 |
| 2.Book value at the beginning of the reporting period | 41,226,833.58 | 41,226,833.58 |
26. Intangible assets
(1) About the intangible assets
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Land use rights | Software | Trademarks | Total |
| I. Original book value: | ||||
| 1. Opening balance | 328,987,007.60 | 123,910,550.77 | 1,011,803.97 | 453,909,362.34 |
| 2. Amount increased in the reporting period | 95,735,523.09 | 59,979,589.88 | 1,124,245.28 | 156,839,358.25 |
| (1) Purchase | 2,625,615.96 | 1,011,037.73 | 3,636,653.69 | |
| (2) Internal R&D | ||||
| (3) Increase due to business combinations | ||||
| (4) Transfers from | 95,735,523.09 | 57,353,973.92 | 113,207.55 | 153,202,704.56 |
| construction-in-process | ||||
| 3. Amount decreased in the reporting period | 32,841.04 | 1,447,334.67 | 1,480,175.71 | |
| (1) Disposal | 1,447,334.67 | 1,447,334.67 | ||
| (2) Transferred into investment properties | 32,841.04 | 32,841.04 | ||
| 4. Ending balance | 424,689,689.65 | 182,442,805.98 | 2,136,049.25 | 609,268,544.88 |
| II. Accumulative amortization | ||||
| 1. Opening balance | 56,359,375.93 | 64,645,040.09 | 830,882.09 | 121,835,298.11 |
| 2. Amount increased in the reporting period | 7,676,228.44 | 22,558,905.09 | 148,298.61 | 30,383,432.14 |
| (1) Amortisation provided during the year | 7,676,228.44 | 22,558,905.09 | 148,298.61 | 30,383,432.14 |
| 3.Amount decreased in the reporting period | 5,145.10 | 931,813.22 | 936,958.32 | |
| (1) Disposal | 931,813.22 | 931,813.22 | ||
| (2) Transferred into investment properties | 5,145.10 | 5,145.10 | ||
| 4. Ending balance | 64,030,459.27 | 86,272,131.96 | 979,180.70 | 151,281,771.93 |
| III. Provision for impairment | ||||
| 1. Opening balance | ||||
| 2. Amount increased in the reporting period | ||||
| (1) Provision | ||||
| 3.Amount decreased in the reporting period | ||||
| (1) Disposal | ||||
| 4. Ending balance | ||||
| IV. Book value | ||||
| 1.Book value at the end of the reporting period | 360,659,230.38 | 96,170,674.02 | 1,156,868.55 | 457,986,772.95 |
| 2.Book value at the beginning of the reporting period | 272,627,631.67 | 59,265,510.68 | 180,921.88 | 332,074,064.23 |
The proportion of intangible assets formed through internal R&D to the balance of intangibleassets at the end of the period was nil.
(2) About the land use rights without title certificate
"□ Applicable" "√ Inapplicable"Other notes:
As at December 31, 2022, the net book value of the land use rights with restrictedownership was 0 (December 31, 2021: RMB 30,632,651.23).
27. Development expenses
"□ Applicable" "√ Inapplicable"
28. Goodwill
(1). Original book value of the goodwill
"□ Applicable" "√ Inapplicable"
(2). Provision for impairment of the goodwill
"□ Applicable" "√ Inapplicable"
(3). Relevant information of the assets group or portfolio of the assets groups where
the goodwill is located"□ Applicable" "√ Inapplicable"
(4). Explain the confirmation method of goodwill impairment test process, key
parameters (such as predicted period growth rate, stable period growth rate,
profit margin, discount rate, predicted period, etc., if applicable) and goodwill
impairment loss."□ Applicable" "√ Inapplicable"
(5). Influence of goodwill impairment test
"□ Applicable" "√ Inapplicable"Other notes"□ Applicable" "√ Inapplicable"
29. Long-term prepaid expenses
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Opening balance | Amount increased in the reporting period | Amount amortized in the reporting period | Other decrease | Ending balance |
| Refurbishment payment | 13,252,168.01 | 4,437,653.98 | 6,753,010.79 | 10,936,811.20 | |
| Payment for the improvement of the rented fixed assets | 6,712,870.09 | 1,521,411.01 | 3,566,970.56 | 4,667,310.54 | |
| Others | 9,429,280.53 | 27,274,703.48 | 8,033,346.80 | 379,651.54 | 28,290,985.67 |
| Total | 29,394,318.63 | 33,233,768.47 | 18,353,328.15 | 379,651.54 | 43,895,107.41 |
Other notes:
None
30. Deferred tax assets/liabilities
(1) Deferred tax asset before being offset
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Ending balance | Opening balance | ||
| Deductible temporary differences | Deferred tax assets | Deductible temporary differences | Deferred tax Assets | |
| Deductible loss | 198,066,664.29 | 40,218,297.85 | 118,883,340.46 | 23,421,534.15 |
| Deferred income | 7,154,444.67 | 1,598,398.96 | 28,343,735.63 | 4,322,808.35 |
| Bad debt provision | 63,577.07 | 15,894.27 | 4,730,148.62 | 810,887.28 |
| Provision of inventories | 15,391,982.03 | 3,846,248.38 | 23,503,828.28 | 5,875,957.07 |
| Depreciation book-tax difference of fixed assets | 37,414,598.87 | 6,262,650.43 | 251,596,721.32 | 62,899,180.33 |
| Provision for impairment of fixed assets | 2,734,154.64 | 582,125.16 | 3,220,013.50 | 483,002.03 |
| Investment losses of associates | 51,544,467.53 | 12,804,720.20 | 29,920,457.76 | 7,480,114.44 |
| Sales rebates and rewards | 437,665,926.26 | 84,566,172.38 | 186,926,832.16 | 39,381,257.94 |
| Book-tax difference based on the new leases standard | 16,113,185.19 | 2,397,321.32 | 2,275,394.88 | 568,848.72 |
| Share-based payment | 80,660,907.94 | 19,156,587.56 | ||
| Accrued expenses | 11,182,837.33 | 3,983,843.20 | 7,155,963.27 | 1,073,394.49 |
| Total | 857,992,745.82 | 175,432,259.71 | 656,556,435.88 | 146,316,984.80 |
(2) Deferred tax liabilities before being offset
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Ending balance | Opening balance | ||
| Taxable temporary differences | Deferred tax Liabilities | Taxable temporary differences | Deferred tax Liabilities | |
| Investment income of financial products | 416,695,525.12 | 100,558,415.87 | 234,362,931.94 | 57,782,106.18 |
| Depreciation of fixed assets | 33,398,236.17 | 5,009,735.43 | ||
| Deferred interest payments on occupancy fees | 1,158,116.42 | 219,920.55 | 642,997.45 | 122,469.75 |
| Leasing | 15,167.35 | 379.18 | ||
| Total | 451,267,045.06 | 105,788,451.03 | 235,005,929.39 | 57,904,575.93 |
(3) Net amount of deferred tax assets/liabilities after being offset"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Offset amount at the end of the reporting period | Net amount at the end of the reporting period | Offset amount at the beginning of the reporting period | Net amount at the beginning of the reporting period |
| Deferred tax assets | 91,408,996.06 | 84,023,263.65 | 57,473,351.49 | 88,843,633.31 |
| Deferred tax liability | 91,408,996.06 | 14,379,454.97 | 57,473,351.49 | 431,224.44 |
Deductible temporary differences and deductible losses on unrecognised deferredincome tax assets are as follows"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Ending balance | Opening balance |
| Deductible temporary differences | 387,174.84 | 12,860.00 |
| Deductible tax losses | 20,898,005.44 | 16,775,342.31 |
| Total | 21,285,180.28 | 16,788,202.31 |
(4) Unrecognised deferred tax assets arising from deductible tax losses will expirein the following years"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Year | Amount at the end of the reporting period | Amount at the year beginning | Remarks |
| To expire in 2023 | 975,536.59 | ||
| To expire in 2024 | |||
| To expire in 2025 | |||
| To expire in 2026 | 10,066,688.21 | 16,788,202.31 | |
| To expire in 2027 | 10,242,955.48 | ||
| Total | 21,285,180.28 | 16,788,202.31 | / |
Other notes:
"□ Applicable" "√ Inapplicable"
31. Other non-current assets
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Ending balance | Opening balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| 3-year fixed deposit | 3,524,838,013.71 | 3,524,838,013.71 | 4,919,789,013.47 | 4,919,789,013.47 | ||
| Store Decoration | 150,975,384.28 | 150,975,384.28 | ||||
| Prepayment for land use right and equipment | 133,276,435.44 | 133,276,435.44 | 22,982,955.66 | 22,982,955.66 | ||
| Total | 3,809,089,833.43 | 3,809,089,833.43 | 4,942,771,969.13 | 4,942,771,969.13 | ||
Other notes:
On December 31, 2022, the Group issued bank acceptance notes with three-yearfixed deposit certificates of RMB 3,230,000,000.00 as the pledge (December 31, 2021:
RMB 4,700,000,000.00)，VII.81 for details.
32. Short-term borrowings
(1) Classification of short-term borrowings
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Ending balance | Opening balance |
| Pledged loans | 511,250,000.00 | |
| Total | 511,250,000.00 |
Notes to the classification of short-term borrowings:
None
(2) Short-term borrowings overdue but still remaining outstanding
"□ Applicable" "√ Inapplicable"Short-term borrowings overdue but still remaining outstanding"□ Applicable" "√ Inapplicable"Other notes"□ Applicable" "√ Inapplicable"
33. Transactional financial liabilities
"□ Applicable" "√ Inapplicable"
34. Derivative financial liabilities
"□ Applicable" "√ Inapplicable"
35. Notes payable
(1) Presentation of notes payable
?Applicable □Inapplicable
In: Yuan Currency: RMB
| Categories | Ending balance | Opening balance |
| Bank acceptance notes | 6,853,338,997.32 | 4,926,337,711.40 |
| Total | 6,853,338,997.32 | 4,926,337,711.40 |
Notes payable that due and unpaid at the end of the period were nil.
36. Accounts payable
(1) Presentation of accounts payable
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Ending balance | Opening balance |
| Accounts payable | 2,535,832,081.83 | 2,132,113,371.54 |
| Total | 2,535,832,081.83 | 2,132,113,371.54 |
(2) Significant accounts payable with age exceeding 1 year
"□ Applicable" "√ Inapplicable"Other notes"√ Applicable" "□ Inapplicable"
① Accounts payable are non-interest-bearing and are usually settled within threemonths.
② As of December 31, 2022 and 2021, the Company had no significant accountspayable aged over one year.
37. Receipts in advance
(1) Presentation of receipts in advance
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Ending balance | Opening balance |
| Factory building rent | 20,619,060.26 | 13,125,994.89 |
| Total | 20,619,060.26 | 13,125,994.89 |
(2) Significant receipts in advance with age exceeding 1 year
"□ Applicable" "√ Inapplicable"Other notes"√ Applicable" "□ Inapplicable"
As of December 31, 2022, the Company had no significant advance receipts agedover one year.
38. Contract liabilities
(1) About contract liabilities
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Ending balance | Opening balance |
| Sales rebates | 437,665,926.26 | 186,926,832.16 |
| Advances from sales of goods | 198,486,523.06 | 286,324,441.22 |
| Advances from service | 2,277,155.72 | 10,284,351.19 |
| Total | 638,429,605.04 | 483,535,624.57 |
(2) The amount involved in the significant change of the book value and the cause
during the reporting period"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Fluctuation | Reasons for the fluctuation |
| Sales rebates | 250,739,094.10 | Increase rebates to expand channels and boost sales |
| Advances from sales of goods | -87,837,918.16 | Decrease in customer prepayments |
| Total | 162,901,175.94 | / |
Other notes:
"□ Applicable" "√ Inapplicable"
39. Employee benefits payable
(1) Employee benefits payable
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Opening balance | Increase in the reporting period | Decrease in the reporting period | Ending balance |
| I. Short-term employee benefits | 113,222,680.79 | 1,198,711,851.56 | 1,149,462,577.79 | 162,471,954.56 |
| II. Post-employment benefits-defined contribution plans | 361,941.91 | 76,203,108.33 | 76,136,124.30 | 428,925.94 |
| III. Dismissal compensation | ||||
| IV. Other benefit due within a year | ||||
| Total | 113,584,622.70 | 1,274,914,959.89 | 1,225,598,702.09 | 162,900,880.50 |
(2) Presentation of short term remuneration
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Opening balance | Increase in the reporting period | Decrease in the reporting period | Ending balance |
| I. Wages or salaries, bonuses, allowances and subsidies | 108,967,463.73 | 1,044,540,989.78 | 995,624,251.75 | 157,884,201.76 |
| II. Staff welfare | 3,570,473.19 | 80,223,348.63 | 80,131,976.62 | 3,661,845.20 |
| III. Social security contributions | 182,111.55 | 43,595,035.28 | 43,458,419.97 | 318,726.86 |
| Including: Medical insurance | 158,156.84 | 38,105,798.32 | 37,973,532.24 | 290,422.92 |
| Work injury insurance | 22,355.11 | 3,242,598.08 | 3,243,768.85 | 21,184.34 |
| Maternity insurance | 1,599.60 | 2,246,638.88 | 2,241,118.88 | 7,119.60 |
| IV. Housing fund | 381,340.00 | 26,777,536.60 | 26,668,006.60 | 490,870.00 |
| V. Union running costs and employee education costs | 121,292.32 | 457,683.80 | 462,665.38 | 116,310.74 |
| VI. Short-term paid absence from work | ||||
| VII. Short-term profit sharing plan | ||||
| VIII. Other insurance for employees | 3,117,257.47 | 3,117,257.47 | ||
| Total | 113,222,680.79 | 1,198,711,851.56 | 1,149,462,577.79 | 162,471,954.56 |
(3) Presentation of the defined contribution plan
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Opening balance | Increase in the reporting period | Decrease in the reporting period | Ending balance |
| 1. Pension insurance | 349,822.28 | 73,871,739.29 | 73,806,992.53 | 414,569.04 |
| 2. Unemployment insurance | 12,119.63 | 2,331,369.04 | 2,329,131.77 | 14,356.90 |
| 3. Corporate Annuity Contributions | ||||
| Total | 361,941.91 | 76,203,108.33 | 76,136,124.30 | 428,925.94 |
Other notes:
"□ Applicable" "√ Inapplicable"
40. Payable taxes
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Ending balance | Opening balance |
| Value-added tax | 7,961,223.12 | 3,743,717.32 |
| Corporate income tax | 134,652,186.50 | 47,385,304.15 |
| Personal income tax | 2,867,285.91 | 2,287,395.24 |
| Urban maintenance and construction tax | 586,791.60 | 512,943.01 |
| Land appreciation tax | 4,566,646.41 | 1,114,037.62 |
| Stamp duty | 589,381.87 | 631,354.38 |
| Education Surcharge | 419,518.73 | 389,398.48 |
| Others | 2,390,662.30 | 2,237,337.37 |
| Total | 154,033,696.44 | 58,301,487.57 |
Other notes:
None
41. Other payables
Items Presentation"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Ending balance | Opening balance |
| Other payables | 564,648,489.37 | 478,360,431.77 |
| Total | 564,648,489.37 | 478,360,431.77 |
Other notes:
"□ Applicable" "√ Inapplicable"
Interest payable
(1) Presentation of classification
"□ Applicable" "√ Inapplicable"Dividends payable
(2) Presentation of classification
"□ Applicable" "√ Inapplicable"Other payables
(1) Other payables stated based on nature of fund
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Ending balance | Opening balance |
| Deposits | 304,954,079.97 | 290,556,463.25 |
| Money for subscription of restricted shares | 134,953,200.00 | 112,883,400.00 |
| Expenses accrued | 72,492,382.44 | 45,047,280.28 |
| Payable of equipment & engineering projects | 30,572,005.48 | 12,069,100.76 |
| Others | 21,676,821.48 | 17,804,187.48 |
| Total | 564,648,489.37 | 478,360,431.77 |
(2) Significant other payables with age exceeding 1 year
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Ending balance | Cause of failure in repayment or carry-over |
| Security deposit of suppliers | 172,620,136.30 | The cash pledge has not been refunded as the cooperation is going on |
| Security deposit of distributors | 70,826,510.45 | The cash pledge has not been refunded as the cooperation is going on |
| Total | 243,446,646.75 | / |
Other notes:
"□ Applicable" "√ Inapplicable"
42. Held-for-sale liabilities
"□ Applicable" "√ Inapplicable"
43. Non-current liabilities due within a year
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Ending balance | Opening balance |
| Lease liabilities due within one year | 5,682,224.67 | 5,923,801.00 |
| Total | 5,682,224.67 | 5,923,801.00 |
44. Other current liabilities
About other current liabilities"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Ending balance | Opening balance |
| Pending output VAT | 24,329,644.32 | 39,990,259.74 |
| Total | 24,329,644.32 | 39,990,259.74 |
Increase/decrease of the short term bonds payable:
"□ Applicable" "√ Inapplicable"Other notes:
"□ Applicable" "√ Inapplicable"
45. Long-term borrowings
(1) Classification of long-term borrowings
"□ Applicable" "√ Inapplicable"Other notes, including the interest rate interval:
"□ Applicable" "√ Inapplicable"
46. Bonds payable
(1) Bonds payable
"□ Applicable" "√ Inapplicable"
(2) Increase/Decrease of bonds payable (excluding other financial instrumentsclassified as financial liabilities, such as preferred shares, perpetual bonds, etc.)"□ Applicable" "√ Inapplicable"
(3) Note to the conditions and time of share conversion of convertible companybonds"□ Applicable" "√ Inapplicable"
(4) Note to other financial instruments classified as financial liabilitiesBasic information on the outstanding other financial instruments, including preferred shares,perpetual bonds, etc. at the end of the reporting period"□ Applicable" "√ Inapplicable"Statement of movement of the outstanding other financial instruments, including preferredshares, perpetual bonds, etc. at the end of the reporting period"□ Applicable" "√ Inapplicable"Note to the basis of other financial instruments classified as financial liabilities"□ Applicable" "√ Inapplicable"Other notes:
"□ Applicable" "√ Inapplicable"
47. Lease liabilities
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Ending balance | Opening balance |
| Lease payments | 69,772,565.55 | 59,855,125.79 |
| Unrecognised financing costs | -16,249,928.74 | -13,265,814.72 |
| Total | 53,522,636.81 | 46,589,311.07 |
48. Long-term accounts payable
Items Presentation"□ Applicable" "√ Inapplicable"Other notes:
"□ Applicable" "√ Inapplicable"Long-term accounts payable
(1) Long term accounts payable stated based on the nature
"□ Applicable" "√ Inapplicable"Special accounts payable
(2) Special accounts payable stated based on the nature
"□ Applicable" "√ Inapplicable"
49. Long term payroll payable to the employees
"□ Applicable" "√ Inapplicable"
50.Predicted liabilities
"□ Applicable" "√ Inapplicable"
51. Deferred income
About deferred income"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Opening balance | Increase in the reporting period | Decrease in the reporting period | Ending balance | Cause of formation |
| Government subsidies | 118,883,340.46 | 89,121,100.00 | 9,937,776.17 | 198,066,664.29 | Related with assets |
| Total | 118,883,340.46 | 89,121,100.00 | 9,937,776.17 | 198,066,664.29 | / |
Items involving government subsidies:
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Liabilities | Opening balance | Amount of newly added subsidy in the | Amount counted to the non-operating income in | Amount counted to the other income in the | Other changes | Ending balance | Related with assets/related with income |
| reporting period | the reporting period | reporting period | |||||
| Subsidy of infrastructure construction to Henan Vehicle | 17,078,028.14 | 410,542.44 | 16,667,485.70 | Related with assets | |||
| Subsidy for asset purchase by Jiangsu Vehicle | 1,222,222.20 | 111,111.12 | 1,111,111.08 | Related with assets | |||
| Subsidy for technology improvement to Jiangsu Vehicle | 985,262.93 | 261,700.00 | 313,608.57 | 933,354.36 | Related with assets | ||
| Subsidy for construction of high standard factory buildings to Jiangsu Vehicle | 368,421.15 | 26,315.76 | 342,105.39 | Related with assets | |||
| Jiangsu vehicle’s project of IT application with industrialization | 189,400.00 | 89,006.66 | 100,393.34 | Related with assets | |||
| Subsidy of equipment and production line to Aima Technology | 333,333.46 | 333,333.46 | Related with assets | ||||
| Subsidy for technology improvement to Aima Technology | 1,474,303.08 | 500,000.00 | 885,554.89 | 1,088,748.19 | Related with assets | ||
| Subsidy of environmental protection equipment for treatment of baking varnish waste gas to Aima Technology | 5,133,333.55 | 1,119,999.96 | 4,013,333.59 | Related with assets | |||
| Subsidy of infrastructure construction to Aima Technology | 28,467,007.63 | 743,568.12 | 27,723,439.51 | Related with assets | |||
| Funds of Infrastructure | 20,000,000.00 | 459,355.86 | 19,540,644.14 | Related with assets |
| Construction Support to Aima Technology | |||||||
| Subsidy of infrastructure construction to Tianjin Vehicle | 12,876,071.13 | 288,270.24 | 12,587,800.89 | Related with assets | |||
| Subsidy of transformer substation cables to Tianjin Vehicle | 793,778.76 | 96,215.64 | 697,563.12 | Related with assets | |||
| Special subsidy for intelligent manufacturing to Tianjin Vehicle | 2,481,264.12 | 328,472.52 | 2,152,791.60 | Related with assets | |||
| Subsidy for technology improvement to Henan Vehicle | 545,242.24 | 170,000.00 | 148,167.75 | 567,074.49 | Related with assets | ||
| Subsidy for technology improvement to Zhejiang Vehicle | 283,176.79 | 53,325.00 | 229,851.79 | Related with assets | |||
| Subsidy of equipment and production line to Guangxi Vehicle | 20,657,237.44 | 2,685,525.12 | 17,971,712.32 | Related with assets | |||
| Subsidy of infrastructure to Lishui Vehicle (land) | 50,000,000.00 | 50,000,000.00 | Related with assets | ||||
| Subsidy of infrastructure construction to Chongqing Vehicle | 21,000,000.00 | 18,000,000.00 | 1,845,403.06 | 37,154,596.94 | Related with assets | ||
| Financial preference policy fund to Chongqing Vehicle | 5,184,657.84 | 5,184,657.84 | Related with assets | ||||
| Total | 118,883,340.46 | 89,121,100.00 | 9,937,776.17 | 198,066,664.29 |
Other notes:
"□ Applicable" "√ Inapplicable"
52. Other non-current liabilities
"□ Applicable" "√ Inapplicable"
53. Share capital
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Opening balance | Increase/Decrease (+/ -) | Ending balance | |||||
| Shares issued | Bonus shares | Capital reserves\ surplus reserves turned to shares | Others | Sub-total | |||
| Total Shares | 403,660,003.00 | 6,960,000.00 | 164,200,001.00 | -120,000.00 | 171,040,001.00 | 574,700,004.00 | |
Other notes:
On January 24, 2022, the Company completed the registration of the first grantingunder the Restricted Stock Incentive Plan 2021, and granted 6,780,000 restricted sharesto 105 incentive objects. As a result, the Company’s share capital increased from403,660,003 shares to 410,440,003 shares.
On May 19, 2022, the Company completed the registration of the reserved sharegranting under the Restricted Stock Incentive Plan 2021, and granted 180,000 reservedrestricted shares to 14 incentive objects. As a result, the Company’s share capitalincreased from 410,440,003 shares to 410,620,003 shares.
On June 9, 2022, the Company repurchased and cancelled 120,000 restricted shares,which were granted under the Restricted Stock Incentive Plan 2021 for the first time, fromfour incentive objects who were no longer eligible for incentives. As a result, the Company’sshare capital decreased from 410,620,003 shares to 410,500,003 shares.
On June 28, 2022, the Company completed the annual equity distribution for 2021.This profit distribution and capitalization were based on the Company’s total capital of410,500,003 shares, and 0.4 share converted from capital reserves was issued for everyshare, totaling 164,200,001 shares issued. As a result, the Company’s share capitalincreased from 410,500,003 shares to 574,700,004 shares.
54. Other equity instruments
(1) Basic information on the outstanding other financial instruments, includingpreferred shares, perpetual bonds, etc. at the end of the reporting period"□ Applicable" "√ Inapplicable"
(2) Statement of movement of the outstanding other financial instruments,including preferred shares, perpetual bonds, etc. at the end of the reporting period"□ Applicable" "√ Inapplicable"Note to their increase/decrease and the cause(s) of their movement of other equityinstruments in the reporting period and the basis for the corresponding accountingtreatment:
"□ Applicable" "√ Inapplicable"Other notes:
"□ Applicable" "√ Inapplicable"
55.Capital reserves
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Opening balance | Increase in current year | Decrease in current year | Ending balance |
| Capital premium (capital stock premium) | 1,798,924,284.43 | 131,533,200.00 | 1,930,457,484.43 | |
| Change of the shareholders’ equity shares | -880,906.06 | 5,915,530.62 | -6,796,436.68 | |
| Capital reserve transferred to share capital | 164,200,001.00 | -164,200,001.00 | ||
| Share-based payment | 137,643,460.94 | 80,660,907.94 | 218,304,368.88 | |
| Total | 1,935,686,839.31 | 212,194,107.94 | 170,115,531.62 | 1,977,765,415.63 |
Other notes, including the changes in the current period and the reasons for the changes:
The change in capital reserves of current year came: (a) the stock premium of RMB131,533,200.00 arising from the new shares issued for stock incentive, (b) a reduction ofRMB 5,915,530.62 caused by the acquisition of 38% minority interest of Xiaopa ElectricTechnology （Shanghai） Co., Ltd., (c) transferred to share capital of RMB 164,200,001.00,and, (d) related cost and expenses of stock incentive of RMB 80,660,907.94.
56.Treasury shares
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Opening balance | Increase in the reporting period | Decrease in the reporting period | Ending balance |
| Share-based Payment | 134,953,200.00 | 134,953,200.00 | ||
| Total | 134,953,200.00 | 134,953,200.00 |
57.Other comprehensive income
"□ Applicable" "√ Inapplicable"
58.Special reserves
"□ Applicable" "√ Inapplicable"
59.Surplus reserves
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Opening balance | Increase in the reporting period | Decrease in the reporting period | Ending balance |
| Statutory surplus reserve | 201,830,001.50 | 88,954,295.41 | 290,784,296.91 | |
| Total | 201,830,001.50 | 88,954,295.41 | 290,784,296.91 |
Notes for surplus reserves, including the change in the current period, the reasons for thechange:
In accordance with the Company Law and the Company's Articles of Association, theCompany appropriates 10% of the profit to the statutory surplus reserves. Where theaccumulated amount of the surplus reserves reaches 50% or more of the Company’sregistered capital, further appropriation is not required.
After the appropriation to the statutory surplus reserves, the Company mayappropriate the discretionary surplus reserves. When approved, the discretionary surplusreserves can be used to make up for accumulated losses or converted to the paid-in capital.
60. Retained earnings
?Applicable □Inapplicable
In: Yuan Currency: RMB
| Items | Reporting period | Previous period |
| Retained earnings at the end of the previous period before the adjustment | 2,433,650,547.11 | 1,781,546,043.16 |
| Total retained earnings under adjustment at the beginning of the reporting year (adjustment up +, adjustment down -) | ||
| After adjustment: Retained earnings at the beginning of the reporting period | 2,433,650,547.11 | 1,781,546,043.16 |
| Plus: net profit attributable to owners of the parent | 1,873,433,343.24 | 663,998,092.90 |
| Less: Appropriation to statutory surplus reserves | 88,954,295.41 | 11,893,588.95 |
| Appropriation to discretionary surplus reserves | ||
| Appropriation to general risks reserves | ||
| Cash dividends declared | 205,250,001.50 | |
| Dividends converted to capital | ||
| Retained earnings at the end of the reporting period | 4,012,879,593.44 | 2,433,650,547.11 |
Statement of adjustment of retained earnings at the beginning of the reporting period:
1. The amount involved in the retroactive adjustment according to the ASBEs and therelevant new provisions influencing the retained earnings at the beginning of the reportingperiod was RMB 0.00.
2. The amount involved in change of the accounting policy influencing the retainedearnings at the beginning of the reporting period was RMB 0.00.
3. The amount involved in correction of the significant accounting errors influencing theretained earnings at the beginning of the reporting period was RMB0.00.
4. The amount involved in change of the consolidation scope caused by the commoncontrol influencing the retained earnings at the beginning of the reporting period wasRMB0.00.
5. The total amount involved in other adjustments influencing the retained earnings at thebeginning of the reporting period was RMB0.00 .
61.Operating revenue and cost of sales
(1) Operating revenue and costs of sales
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Amount incurred in the reporting period | Amount incurred in the previous period | ||
| Income | Cost | Income | Cost | |
| Primary business | 20,665,424,894.78 | 17,312,624,672.57 | 15,264,913,767.38 | 13,491,387,679.85 |
| Other businesses | 136,788,099.68 | 85,877,959.79 | 133,797,103.34 | 102,218,349.71 |
| Total | 20,802,212,994.46 | 17,398,502,632.36 | 15,398,710,870.72 | 13,593,606,029.56 |
(2)Revenue arising from contracts
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Classification of Contracts | Total |
| Types of commodities | |
| Revenue from electric bicycles, electric Tricycle, bicycles and accessories | 20,665,424,894.78 |
| Other revenue | 87,518,398.95 |
| Classification based on the operation regions | |
| Domestic | 20,531,756,831.08 |
| Overseas | 221,186,462.65 |
| Time classification based on transfer of commodities | |
| Revenue recognition at a point in time | |
| Sales of goods | 20,665,424,894.78 |
| Revenue from materials | 55,464,959.86 |
| Others | 8,191,173.48 |
| Revenue recognition over time | |
| After-sale service revenue | 23,862,265.61 |
| Total | 20,752,943,293.73 |
Description of revenue arising from contracts"□ Applicable" "√ Inapplicable"
(3) Information about the Group’s performance obligations
"√ Applicable" "□ Inapplicable"
1) Sales of goods
The performance obligation is satisfied upon delivery of the products to customers. Forsales by distributors, most customers need to prepay the price, and the contract price forsome customers usually expires within 1 year after delivery of the product.
2) After-sale service
The performance obligation is satisfied over time as services are rendered. The durationof the after-sales service contract is 1 year, and the settlement is based on the time ofoccurrence, and customers usually need to pay in advance before the after-sales serviceis provided.
(4) Information about apportioning to the residual performance obligations"√ Applicable" "□ Inapplicable"At the end of the reporting period, the aggregate amount of the transaction priceallocated to the performance obligations that are unsatisfied, partially unsatisfied, or withoutcontract signed was RMB 200,763,678.78, which is expected to be recognised as revenuein 2023.Other notes:
The revenue recognised in the current year included in the book value of contractliabilities at the beginning of the year is as follows:
In: Yuan Currency: RMB
| Items | 2022 | 2021 |
| Sales of goods | 296,608,792.41 | 106,355,078.68 |
62.Taxes and surcharges
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Amount incurred in the reporting period | Amount incurred in the previous period |
| Urban maintenance and construction tax | 31,536,406.84 | 13,946,140.59 |
| Education Surcharge | 9,186,588.15 | 6,192,599.61 |
| Local education Surcharge | 20,144,185.11 | 17,876,192.00 |
| Real estate tax | 4,917,111.34 | 3,534,624.49 |
| Land use tax | 57,516.00 | 53,600.04 |
| Tax on using vehicle and boat | 25,217,252.62 | 9,890,360.61 |
| Stamp duty | 218,331.65 | 526,668.97 |
| Others | 13,784,404.46 | 4,128,399.74 |
| Total | 105,061,796.17 | 56,148,586.05 |
63.Selling expenses
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Amount incurred in the reporting period | Amount incurred in the previous period |
| Employee benefits | 340,972,332.90 | 257,554,844.33 |
| Advertisement and propaganda expenses | 100,574,326.15 | 111,889,907.42 |
| Business travel expenses | 37,211,421.89 | 35,916,040.16 |
| Transportation expenses | 32,326,093.02 | 41,223,042.77 |
| Consulting service | 25,139,713.34 | 41,336,729.66 |
| Others | 51,091,961.05 | 62,684,726.64 |
| Total | 587,315,848.35 | 550,605,290.98 |
64. Administrative expenses
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Amount incurred in the reporting period | Amount incurred in the previous period |
| Employee benefits | 244,895,671.09 | 150,147,109.18 |
| Depreciation and amortization | 76,108,989.94 | 58,312,277.30 |
| Consulting services | 33,971,119.44 | 37,096,614.25 |
| Others | 77,801,442.20 | 71,038,597.63 |
| Total | 432,777,222.67 | 316,594,598.36 |
65.Research and development expenses
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Amount incurred in the reporting period | Amount incurred in the previous period |
| Employee benefits | 212,768,918.62 | 154,206,183.20 |
| Depreciation and amortization | 71,713,991.80 | 52,553,979.40 |
| Professional service fees | 185,359,756.90 | 179,006,416.22 |
| Others | 36,842,370.69 | 18,317,549.09 |
| Total | 506,685,038.01 | 404,084,127.91 |
66.Financial expenses
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Amount incurred in the reporting period | Amount incurred in the previous period |
| Interest income | -394,300,036.06 | -264,701,993.37 |
| Interest expenses | 8,693,658.65 | 1,869,959.31 |
| Service charge expenses | 1,941,279.12 | 1,164,295.65 |
| Foreign exchange differences | 967,800.79 | 534,069.84 |
| Total | -382,697,297.50 | -261,133,668.57 |
67.Other income
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Amount incurred in the reporting period | Amount incurred in the previous period |
| Government subsidies related to the ordinary course of business | 78,068,464.81 | 20,852,054.87 |
| Fees refunded for individual income tax withheld | 1,295,995.29 | |
| Value added tax credit | 46,432.16 | 153,226.45 |
| Tax deductions for the poor and the recruitment of veterans | 15,150.00 | 371,000.00 |
| Total | 78,130,046.97 | 22,672,276.61 |
Other notes:
Government subsidies related to daily activities included in other income
| Items | Amount incurred in the reporting period | Amount incurred in the previous period | Related with assets/income |
| Government support fund to Aima Chongqing | 36,064,031.00 | Related with income | |
| Logistics subsidy to Guangxi Vehicle | 25,333,891.00 | 15,000,000.00 | Related with income |
| Government grants to Zhejiang Sales | 5,030,000.00 | Related with income | |
| Investment construction subsidy to Guangxi Vehicle | 2,685,525.12 | 1,342,762.56 | Related with assets |
| Subsidy of infrastructure construction to Chongqing Vehicle | 1,845,403.06 | Related with assets | |
| Rental subsidy to Lishui Vehicle | 1,702,766.64 | Related with income | |
| Subsidy of environmental protection equipment to Aima Technology | 1,119,999.96 | 1,119,999.96 | Related with assets |
| Subsidy for intelligent manufacturing to Aima Technology | 861,413.41 | Related with assets |
| Subsidy of infrastructure construction to Aima Technology | 743,568.96 | 743,568.96 | Related with assets |
| Subsidy of infrastructure construction to Aima Technology | 459,355.86 | Related with assets | |
| Subsidy of infrastructure construction to Henan Vehicle | 410,542.44 | 410,542.44 | Related with assets |
| Equipment production line subsidy to Aima Technology | 333,333.30 | 399,999.96 | Related with assets |
| Intelligent manufacture subsidy to Tianjin Vehicle | 328,472.52 | 318,735.88 | Related with assets |
| Subsidy for technology improvement to Jiangsu Vehicle | 313,608.57 | 724,592.16 | Related with assets |
| Subsidy of infrastructure construction to Tianjin Vehicle | 288,270.24 | 288,270.24 | Related with assets |
| Subsidy for technology improvement to Henan Vehicle | 148,167.60 | 130,565.49 | Related with assets |
| Asset purchase subsidy to Jiangsu Vehicle | 111,111.12 | 111,111.12 | Related with assets |
| Other government grants | 289,004.01 | 261,906.10 | Related with assets |
| Total | 78,068,464.81 | 20,852,054.87 |
68. Investment income
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Amount incurred in the reporting period | Amount incurred in the previous period |
| Return on investment from financial products | 16,736,022.09 | 21,896,185.97 |
| Return on investment during the holding of financial assets held for trading | 1,200,000.00 | 1,200,000 |
| Long-term equity investment income under the equity method | -21,624,009.83 | -39,867,033.98 |
| Gains from disposal of long-term equity investment | 395,864.38 | |
| Total | -3,687,987.74 | -16,374,983.63 |
69.Net exposure hedge income
"□ Applicable" "√ Inapplicable"
70. Fair value gains or losses
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Source of income arising from change in fair value | Amount incurred in the reporting period | Amount incurred in the previous period |
| Financial assets held for trading | -12,120,000.00 | 9,978,187.68 |
| Total | -12,120,000.00 | 9,978,187.68 |
71. Credit impairment losses
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Amount incurred in the reporting period | Amount incurred in the previous period |
| Impairment loss for accounts receivable | -7,138,208.26 | 7,759,504.13 |
| Impairment loss for other receivables | 25,993,352.29 | -1,798,647.87 |
| Total | 18,855,144.03 | 5,960,856.26 |
72. Impairment losses of assets
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Amount incurred in the reporting period | Amount incurred in the previous period |
| I. Loss for write-down of inventories and Impairment loss for contract assets | -63,577.07 | -6,516,185.89 |
| II. Impairment loss for fixed assets | -3,335,891.40 | -5,041,216.09 |
| Total | -3,399,468.47 | -11,557,401.98 |
73. Gains or losses on disposal of non-current assets
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Amount incurred in the reporting period | Amount incurred in the previous period |
| Loss on disposal of fixed assets | 1,286,052.98 | -10,592,015.11 |
| Total | 1,286,052.98 | -10,592,015.11 |
74. Non-operating income
About non-operating income"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Amount incurred in the reporting period | Amount incurred in the previous period | Amount counted to the current non-operating profit or loss |
| Government subsidies | 12,908,508.78 | 11,622,656.94 | 12,908,508.78 |
| Liquidated damage income | 9,495,487.50 | 8,483,131.36 | 9,495,487.50 |
| Others | 11,794,944.19 | 10,581,706.10 | 11,794,944.19 |
| Total | 34,198,940.47 | 30,687,494.40 | 34,198,940.47 |
Government subsidy counted to the profit or loss."√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Subsidy items | Amount incurred in the reporting period | Amount incurred in the previous period | Related with assets/related with income |
| Subsidy for stabilizing employment | 5,346,603.78 | 4,975,484.71 | Related with income |
| Aima Technology’s subsidy of highly skilled personnel training base | 2,000,000.00 | Related with income | |
| Guangdong Vehicle’s incentive on the "Doubling Plan" | 764,400.00 | Related with income | |
| Subsidy for provincial enterprise technology center of Jiangsu Vehicle | 700,000.00 | Related with income | |
| Subsidy for skill training in Jiangsu Vehicle | 605,800.00 | Related with income | |
| Henan Vehicle’s high-quality development incentive grant | 500,000.00 | Related with income | |
| Subsidy for provincial smart manufacturing demonstration workshop in Jiangsu Vehicle in 2021 | 450,000.00 | Related with income | |
| Special subsidy for listing to Aima Group | 3,000,000.00 | Related with income | |
| Special technology improvement fund for economic high quality development to Guangdong Vehicle | 738,000.00 | Related with income | |
| Vocational skill training subsidy | 505,000.00 | Related with income | |
| Subsidy from the Science and Technology Department of Guangxi Zhuang Autonomous Region | 500,000.00 | Related with income | |
| Jiangsu Industry’s fund on industry transformation and upgrading | 500,000.00 | Related with income | |
| Other government subsidies | 2,541,705.00 | 1,404,172.23 | Related with income |
| Total | 12,908,508.78 | 11,622,656.94 |
Other notes:
"□ Applicable" "√ Inapplicable"
75.Non-operating expenses
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Amount incurred in the reporting period | Amount incurred in the previous period | Amount counted to the current non-operating profit or loss |
| Total losses on damage and retirement of non-current assets | 6,491,365.24 | 2,121,076.58 | 6,491,365.24 |
| Where: Loss on disposal of fixed assets | 6,491,365.24 | 2,121,076.58 | 6,491,365.24 |
| Donation expenditures for public interest | 27,511,324.99 | 3,987,935.98 | 27,511,324.99 |
| Others | 6,841,473.22 | 5,217,685.30 | 6,841,473.22 |
| Total | 40,844,163.45 | 11,326,697.86 | 40,844,163.45 |
76.Income tax expenses
(1) Statement of income tax expenses
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Amount incurred in the reporting period | Amount incurred in the previous period |
| Current tax | 335,674,890.22 | 122,717,324.96 |
| Deferred tax | 18,768,600.19 | -32,184,981.35 |
| Total | 354,443,490.41 | 90,532,343.61 |
(2) Process of adjustment of accounting profit and income tax expenses"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Amount incurred in the reporting period |
| Total profit | 2,226,986,319.19 |
| In come tax expense at the statutory or applicable tax rate | 556,746,579.80 |
| Effect of different tax rates for some subsidiaries | -142,904,072.02 |
| Adjustments in respect of current tax of previous periods | 1,812,922.68 |
| Income not subject to tax | -969,882.84 |
| Expenses not deductible for tax | 1,451,877.74 |
| The effect of using deductible losses of deferred income tax assets that have not been recognised in the previous period | -113,471.02 |
| Deductible temporary differences and tax losses not recognised | 600,441.29 |
| Effect on opening deferred tax of change in the tax rate | 3,384,146.49 |
| Tax preferences such as R&D expenses super deduction | -65,565,051.71 |
| Income tax expenses | 354,443,490.41 |
Other notes:
"□ Applicable" "√ Inapplicable"
77.Other comprehensive income
"□ Applicable" "√ Inapplicable"
78. Cash Flow Statement Items
(1) Other cash received relating to operating activities
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Amount incurred in the reporting period | Amount incurred in the previous period |
| Interest income | 176,106,716.62 | 69,232,716.23 |
| Government subsidy | 170,221,879.89 | 57,403,078.76 |
| Recovery of engineering claims | 24,164,117.84 | |
| Liquidated damage income | 9,495,487.50 | 8,483,131.36 |
| Collection of security deposit and advance payment | 5,987,605.72 | 13,500,510.39 |
| Others | 18,602,244.33 | 3,096,032.13 |
| Total | 404,578,051.90 | 151,715,468.87 |
(2) Other cash paid relating to operating activities
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Amount incurred in the reporting period | Amount incurred in the previous period |
| Administrative expenses and R&D expenses paid in cash | 272,474,014.29 | 272,875,287.80 |
| Selling expense paid in cash | 201,212,849.54 | 250,325,799.04 |
| Payment of bill deposit | 79,544,463.13 | |
| Bank service charge paid | 1,941,279.12 | 1,164,295.68 |
| Others | 11,816,296.94 | 19,577,211.88 |
| Total | 566,988,903.02 | 543,942,594.40 |
(3) Other cash received relating to investment activities
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Amount incurred in the reporting period | Amount incurred in the previous period |
| Recovery of the prepayment for strategic equity placement | 16,002,100.00 | |
| Total | 16,002,100.00 |
(4) Other cash paid relating to investment activities
"□ Applicable" "√ Inapplicable"
(5) Other cash received relating to financing activities
"□ Applicable" "√ Inapplicable"
(6) Other cash paid relating to financing activities
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Amount incurred in the reporting period | Amount incurred in the previous period |
| Payment of loan deposits | 511,250,000.00 | |
| Cash outflows relating to long term rented assets | 6,204,858.42 | 9,427,106.51 |
| Listing expenses | 4,171,533.23 | |
| Purchase of the non-controlling interests | 3,694,101.00 | |
| Total | 517,454,858.42 | 17,292,740.74 |
79. Notes to the statement of cash flows
(1) Notes to the statement of cash flows
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Supplementary information | Amount in the reporting period | Amount in the previous period |
| 1. Reconciliation of profit to net cash flows from operating activities: | ||
| Net profit | 1,872,542,828.78 | 667,721,279.19 |
| Plus: Provisions for asset impairment | 3,399,468.47 | 11,557,401.98 |
| Loss from impairment of credit | -18,855,144.03 | -5,960,856.26 |
| Depreciation of fixed assets, depletion of oil and gas asset, depreciation of productive biological asset | 213,431,999.00 | 183,522,689.28 |
| Amortization of right-of-use assets | 9,032,240.71 | 13,543,970.77 |
| Depreciation and amortization of investment property | 15,941,635.01 | 15,837,165.34 |
| Amortization of intangible assets | 30,383,432.14 | 19,289,301.40 |
| Amortization of long-term prepaid expenses | 18,353,328.15 | 8,250,604.81 |
| Loss (income is stated in “-”) from disposal of fixed assets, intangible assets and other long-term assets | 5,584,963.80 | 12,713,091.69 |
| Loss on retirements of fixed assets (profit is stated with “-”) | ||
| Loss from change of fair value (profit is stated with “-”) | 12,120,000.00 | -9,978,187.68 |
| Financial expenses (income is stated with “-”) | -196,253,286.61 | -168,283,587.71 |
| Investment loss (income is stated with “-”) | 3,687,987.74 | 16,374,983.63 |
| Decrease of the deferred tax asset (increase is stated with “_”) | 4,820,369.66 | -32,477,813.43 |
| Increase of deferred tax liability (decrease is stated with “-”) | 13,948,230.53 | 422,484.18 |
| Decrease of inventories (Increase is stated with “-”) | -14,885,655.50 | -307,454,125.14 |
| Decrease in receivables from operating activities (Increase is stated with “-”) | 116,574,148.98 | 241,903,721.53 |
| Increase in payables from operating activities (Decrease is stated with “-”) | 2,846,422,709.33 | 1,427,205,250.39 |
| Share-based payments | 80,660,907.94 | |
| Others | 34,543,952.84 | |
| Net cash flows arising from operating activities | 5,051,454,116.94 | 2,094,187,373.97 |
| 2. Significant investment and financing activities with no cash income and expenses involved: | ||
| Capital converted from liabilities | ||
| Convertible company bonds due within a year | ||
| Fixed assets under finance lease | ||
| 3. Net change in cash and cash equivalents: | ||
| Ending cash balance | 5,536,066,687.82 | 2,846,143,310.70 |
| Less: Opening balance of cash | 2,846,143,310.70 | 978,700,802.48 |
| Plus: Ending balance of cash equivalent | ||
| Less: Opening balance of cash equivalent | ||
| Net increase of cash and cash equivalents | 2,689,923,377.12 | 1,867,442,508.22 |
(2) Net cash paid for acquisition of subsidiary in the reporting period"□ Applicable" "√ Inapplicable"
(3) Net cash received from disposal of subsidiary in the reporting period"□ Applicable" "√ Inapplicable"
(4) Composition of cash and cash equivalents
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Ending balance | Opening balance |
| I. Cash | 5,536,066,687.82 | 2,846,143,310.70 |
| Including: Cash in stock | ||
| Bank deposit available for payment at any time | 5,536,066,687.82 | 2,846,143,310.70 |
| Other monetary fund used for payment at any time | ||
| Due from central bank available for payment | ||
| Due from banks | ||
| Call loan to banks | ||
| II. Cash equivalents | ||
| Including: bond investment due within three months | ||
| III. Ending balance of cash and cash equivalents | 5,536,066,687.82 | 2,846,143,310.70 |
| Including：Use of restricted cash and cash equivalents by the parent company or subsidiaries within the Group |
Other notes:
"□ Applicable" "√ Inapplicable"
80.Notes to items of statement of change in owner’s equity
Note to the description of item “Others” and adjusted amounts for adjusting the closingbalance of the previous year:
"□ Applicable" "√ Inapplicable"
81.Assets restricted in ownership or use right
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Book value at the end of the reporting period | Cause of restriction |
| Currency Funds | 1,096,591,549.00 | Pledge for issuing bank acceptance draft Note 1 |
| Other non-current assets | 3,230,000,000.00 | Pledge for issuing bank acceptance draft Note 2 |
| Non-current assets due within one year | 3,200,000,000.00 | Pledge for issuing bank acceptance draft Note 2 |
| Total | 7,526,591,549.00 | / |
Other notes:
Note 1:
As of December 31, 2022, the Company issued banker's acceptances pledged withRMB 602,044,463.13 of banker's acceptance deposits (December 31, 2021: none).
As of December 31, 2022, the Company had no bank financial products with restrictedownership (December 31, 2021: RMB 390,000,000.00).
As of December 31, 2022, the Company issued bank acceptance bills pledged withone-year time deposit certificates of RMB 470,000,000.00 (December 31, 2021: None).
As of December 31, 2022, the Company subscribed for financial products with RMB23,600,000.00, which had not been completed (December 31, 2021: None).Note 2:
As of December 31, 2022, the Company issued bank acceptance notes with a three-year fixed deposit certificate of RMB 6,430,000,000.00 as the pledge (December 31, 2021:
RMB 4,700,000,000.00).
As of December 31, 2022, RMB 947,085.87 was requested to freeze by therespondent due to labor litigation (December 31, 2021: None).
82.Foreign currency monetary items
(1) Foreign currency monetary items
"□ Applicable" "√ Inapplicable"
(2) Note to overseas operating entities, including important overseas operating
entities, which should be disclosed about its principal business place, function
currency for bookkeeping and basis for the choice. In case of any change in
function currency, the cause should be disclosed."□ Applicable" "√ Inapplicable"
83.Hedging
"□ Applicable" "√ Inapplicable"
84.Government subsidies
(1) Basic information of government subsidies
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Categories | Amount | Items presented | Amount counted to the profit or loss |
| Subsidy for stabilizing employment | 5,346,603.78 | Non-operating income | 5,346,603.78 |
| Aima Technology’s highly skilled personnel training base | 2,000,000.00 | Non-operating income | 2,000,000.00 |
| Guangdong Vehicle’s incentive on the "Doubling Plan" | 764,400.00 | Non-operating income | 764,400.00 |
| Subsidy for provincial enterprise technology center of Jiangsu Vehicle | 700,000.00 | Non-operating income | 700,000.00 |
| Subsidy for skill training in Jiangsu Vehicle | 605,800.00 | Non-operating income | 605,800.00 |
| Henan Vehicle’s high-quality development incentive grant | 500,000.00 | Non-operating income | 500,000.00 |
| Subsidy for provincial smart manufacturing demonstration workshop in Jiangsu Vehicle in 2021 | 450,000.00 | Non-operating income | 450,000.00 |
| Other government grants | 2,541,705.00 | Non-operating income | 2,541,705.00 |
| Government support fund to Aima Chongqing | 36,064,031.00 | Other income | 36,064,031.00 |
| Logistics subsidy to Guangxi Vehicle | 25,333,891.00 | Other income | 25,333,891.00 |
| Government grants to Zhejiang Sales | 5,030,000.00 | Other income | 5,030,000.00 |
| Investment construction subsidy to Guangxi Vehicle | 2,685,525.12 | Other income | 2,685,525.12 |
| Subsidy of infrastructure construction to Chongqing Vehicle | 1,845,403.06 | Other income | 1,845,403.06 |
| Rental subsidy to Lishui Vehicle | 1,702,766.64 | Other income | 1,702,766.64 |
| Subsidy of environmental protection equipment for treatment of baking varnish waste gas to Aima Technology | 1,119,999.96 | Other income | 1,119,999.96 |
| Subsidy for intelligent manufacturing to Aima Technology | 861,413.41 | Other income | 861,413.41 |
| Subsidy of infrastructure construction to Aima Technology | 743,568.96 | Other income | 743,568.96 |
| Subsidy of infrastructure construction to Aima Technology | 459,355.86 | Other income | 459,355.86 |
| Subsidy of infrastructure construction to Henan Vehicle | 410,542.44 | Other income | 410,542.44 |
| Equipment production line subsidy to Aima Technology | 333,333.30 | Other income | 333,333.30 |
| Intelligent manufacture subsidy to Tianjin Vehicle | 328,472.52 | Other income | 328,472.52 |
| Subsidy for technology improvement to Jiangsu Vehicle | 313,608.57 | Other income | 313,608.57 |
| Subsidy of infrastructure construction to Tianjin Vehicle | 288,270.24 | Other income | 288,270.24 |
| Subsidy for technology improvement to Henan Vehicle | 148,167.60 | Other income | 148,167.60 |
| Asset purchase subsidy to Jiangsu Vehicle | 111,111.12 | Other income | 111,111.12 |
| Other government grants | 289,004.01 | Other income | 289,004.01 |
| Total | 90,976,973.59 | 90,976,973.59 |
(2). Refunding of the government subsidies
"□ Applicable" "√ Inapplicable"
85.Others
"□ Applicable" "√ Inapplicable"
VIII. Change in the consolidation scope
1. Applicable or not: Business consolidation not under the same control"□ Applicable" "√ Inapplicable"
2. Business consolidation under the same control
"□ Applicable" "√ Inapplicable"
3.Counter purchase
"□ Applicable" "√ Inapplicable"
4.Disposal of subsidiaries
Does there exist any such situation that a single disposal may cause the control powerover the investment in a subsidiary lost?"□ Applicable" "√ Inapplicable"Other notes:
"□ Applicable" "√ Inapplicable"
5.Change of the consolidation scope due to other reasons
Note to the change in the scope of consolidation caused by other reasons (such as newlyestablished subsidiaries, liquidation subsidiaries, etc.) and related conditions:
"√ Applicable" "□ Inapplicable"
| Names of subsidiaries | Place of registration | Nature of business | Proportion of the total shareholding by the Group (%) | Proportion of the total votes enjoyed by the Group (%) | Cause of increase of new subsidiaries |
| Xiaoma Intelligent | Chongqing | Wholesale and retail | 100.00 | 100.00 | Newly established |
| Chongqing Mechanical and Electrical Technology | Chongqing | Manufacture | 100.00 | 100.00 | Newly established |
| Chongqing Vehicle Service | Chongqing | Wholesale and retail | 100.00 | 100.00 | Newly established |
| Super Universe | Chongqing | Wholesale and retail | 100.00 | 100.00 | Newly established |
| Aima Singapore | Singapore | Wholesale and retail | 100.00 | 100.00 | Newly established |
| Aima Logistics | Chongqing | Logistics | 55.00 | 55.00 | Newly established |
| Tianjin Jinge | Tianjin | Design industry | 76.00 | 76.00 | Cancellation |
| Hainan Aima | Hainan | Sales | 100.00 | 100.00 | Cancellation |
| Sichuan Aima | Sichuan | Sales | 100.00 | 100.00 | Cancellation |
| Shenzhen Zhixing | Guangdong | Software and information technology services | 100.00 | 100.00 | Cancellation |
| Zhejiang Beisite | Zhejiang | Wholesale and retail | 100.00 | 100.00 | Cancellation |
6.Others
"□ Applicable" "√ Inapplicable"IX. Equity in other entities
1.Equity in subsidiaries
(1)Composition of enterprise group
"√ Applicable" "□ Inapplicable"
| Names of subsidiaries | Main business location | Place of registration | Nature of business | Shareholding proportion (%) | Way of acquisition | |
| Direct | Indirect | |||||
| Tianjin Vehicle | Tianjin | Tianjin | Manufacture | 100 | Established | |
| Henan Vehicle | Henan | Henan | Manufacture | 100 | Established | |
| Jiangsu Vehicle | Jiangsu | Jiangsu | Manufacture | 100 | Established | |
| Guangdong Vehicle | Guangdong | Guangdong | Manufacture | 100 | Established | |
| Zhejiang Vehicle | Zhejiang | Zhejiang | Manufacture | 100 | Established | |
| Aima Nanfang | Jiangsu | Jiangsu | Manufacture | 100 | Established | |
| Xiaopa Electric | Shanghai | Shanghai | Service industry | 100 | Established | |
| Tianjin Sports | Tianjin | Tianjin | Manufacture | 100 | Established | |
| Xiaoma Network | Chongqing | Chongqing | Wholesale and retail | 100 | Established | |
| Aima Share | Tianjin | Tianjin | Manufacture | 73 | Established | |
| Guangxi Vehicle | Guangxi | Guangxi | Manufacture | 100 | Established | |
| Tianjin Tianli | Tianjin | Tianjin | Manufacture | 100 | Established | |
| Aima Chongqing | Chongqing | Chongqing | Wholesale and retail | 100 | Established | |
| Chongqing Vehicle | Chongqing | Chongqing | Manufacture | 100 | Established | |
| Zhejiang Sales | Zhejiang | Zhejiang | Wholesale and retail | 100 | Established | |
| Taizhou Manufacture | Zhejiang | Zhejiang | Manufacture | 100 | Established | |
| Aima Venture Capital | Zhejiang | Zhejiang | Investment Platform | 100 | Established | |
| Lishui Vehicle | Zhejiang | Zhejiang | Manufacture | 100 | Established | |
| Suoteng Technology | Hong Kong | Hong Kong | Wholesale and retail | 100 | Established | |
| Xiaoma Intelligent | Chongqing | Chongqing | Wholesale and retail | 100 | Established | |
| Chongqing Mechanical and Electrical Technology | Chongqing | Chongqing | Manufacture | 100 | Established | |
| Chongqing Vehicle Service | Chongqing | Chongqing | Wholesale and retail | 100 | Established | |
| Super Universe | Chongqing | Chongqing | Wholesale and retail | 100 | Established | |
| Aima Singapore | Singapore | Singapore | Wholesale and retail | 100 | Established | |
| Aima Logistics | Chongqing | Chongqing | Logistics | 55 | Established | |
| Suiwanwan | Tianjin | Tianjin | Service industry | 100 | Consolidation under the same control |
Other notes:
Aima Singapore, Chongqing Mechanical and Electrical Technology, Xiaoma Intelligent,Chongqing Vehicle Service, Aima Logistics and Super Universe are newly established for2022.The Company had implemented the group shareholding structure adjustment in thesecond half of 2022, which had no impact on the scope of consolidation of the Company.
(2)Important non-wholly-owned subsidiaries
"□ Applicable" "√ Inapplicable"
(3)Key financial information of important non-wholly-owned subsidiaries"□ Applicable" "√ Inapplicable"
(4)Significant restriction on use of enterprise group’s assets and paying off the
enterprise group’s liabilities"□ Applicable" "√ Inapplicable"
(5) Financial support or other support provided to the structured entities
incorporated in the scope of consolidated financial statements"□ Applicable" "√ Inapplicable"Other notes:
"□ Applicable" "√ Inapplicable"
2.Transaction with a subsidiary with the share of the owner’s equity changed butstill under control"√ Applicable" "□ Inapplicable"
(1)Note to the change in the share of the owner’s equity in subsidies"√ Applicable" "□ Inapplicable"
In March 2022, the Company acquired 38% equity interest in Xiaopa Electric from ShiXiumin, the minority shareholder, with a zero consideration. Upon completion of theacquisition, the Company held 100% equity interest in Xiaopa Electric. The aboveacquisition resulted in an increase of RMB 5,915,530.62 in minority interests and adecrease of RMB 5,915,530.62 in capital reserve in the consolidated financial statements.
(2) Effect of the transaction on the non-controlling interests and owner's equity
attributable to the parent company"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Xiaopa Technology | |
| Purchase cost/Disposal consideration | 0 |
| -- Cash | |
| -- Fair value of non-cash assets | |
| Purchase cost/Total disposal consideration | 0 |
| Less: Subsidiary's net asset share calculated based on the proportion of equity acquired/disposed | -5,915,530.62 |
| Balance | 5,915,530.62 |
| Where: Adjustment of capital reserves | 5,915,530.62 |
| Adjustment of surplus reserves | |
| Adjustment of retained earnings |
Other notes:
"□ Applicable" "√ Inapplicable"
3.Equity in joint ventures or associates
"√ Applicable" "□ Inapplicable"
(1) Important joint ventures or associates
"□ Applicable" "√ Inapplicable"
(2). Key financial information of important joint ventures
"□ Applicable" "√ Inapplicable"
(3) Key financial information of important associates
"□ Applicable" "√ Inapplicable"
(4) Financial information summary of unimportant joint ventures and associates"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Ending balance/amount incurred in the reporting period | Opening balance/amount incurred in the previous period | |
| Associates: | ||
| Total book value of investment | 128,152,070.40 | 129,206,858.54 |
| Total of the following items calculated based on shareholding proportion | ||
| -- Net profit | -21,624,009.83 | -39,867,033.98 |
| -- Other comprehensive income | ||
| -- Total comprehensive income | -21,624,009.83 | -39,867,033.98 |
Other notes:
| Name of joint venture or associate | Main business location | Place of registration | Natureof business | Shareholding proportion (%) | Accounting treatment method for investment in joint ventures or associates | |
| Direct | Indirect | |||||
| Today Sunshine | Zhejiang | Zhejiang | Manufacture | 10.42 | Equity method | |
| Tianjin Jiema | Tianjin | Tianjin | Manufacture | 40.00 | Equity method | |
| Taizhou Jinfu | Zhejiang | Zhejiang | Venture capital investment | 55.90 | Equity method | |
| Geling New Energy | Shandong | Shandong | Manufacture | 49.01 | Equity method | |
| Beijing Zhongzhong | Beijing | Beijing | Service industry | 38.00 | Equity method | |
According to the articles of association of Sunshine Today, the Company is entitled toappoint directors to its board of directors, and accordingly has the right to participate in thedecision-making on its financial and business operations, thereby exert significantinfluence on it.According to the Partnership Agreement with Taizhou Jinfu, the Company, as one ofthe limited partners, does not have the right to unilaterally decide the relevant activities ofthe partnership enterprise, so the Company does not control the partnership enterprise,but has a significant influence on it.
(5) Note to significant restriction on the competence of a joint venture or anassociate in transferring funds to the Company"□ Applicable" "√ Inapplicable"
(6) Excessive loss incurred to a joint venture or an associate
"□ Applicable" "√ Inapplicable"
(7) Unrecognised commitment in connection with investment in a joint venture"□ Applicable" "√ Inapplicable"
(8) Contingent liabilities in connection with investment in joint ventures orassociates"□ Applicable" "√ Inapplicable"
4.Important joint operation
"□ Applicable" "√ Inapplicable"
5.Equity in the structured entities not incorporated in the consolidated financialstatementsRelevant note to the structured entities not incorporated in the consolidated financialstatements"□ Applicable" "√ Inapplicable"
6.Others
"□ Applicable" "√ Inapplicable"x. Risk relating to financial instruments"√ Applicable" "□ Inapplicable"The Company faces various risks of financial instruments in its daily activities, mainlyincluding credit risk, liquidity risk, market risk and exchange rate risk. The Group’s financialinstruments mainly include monetary capital, notes receivable, accounts receivable,accounts receivable financing, notes payable and accounts payable. The risks involved inthese financial instruments and the Group’s risk control tactics aiming at reducing theserisks are stated as follows.
(1) Credit risk
The Company carries out transactions only with accredited and reputable third parties.In accordance with the Group's policy, all customers requiring credit transactions aresubject to credit checks. In addition, the Group continuously monitors the balance ofaccounts receivable to ensure that the Group shall not access to significant bad debt risks.For transactions that are not settled in the functional currency of the relevant operating unit,the Group shall not provide credit transaction conditions unless specifically approved bythe Group's credit control department.Since the counterparties of monetary funds, transactional financial assets and bankacceptance drafts receivable are banks with good reputation and high credit rating, thesefinancial instruments have low credit risk.The Company's other financial assets include accounts receivable and otherreceivables. The credit risk of these financial assets is derived from the default of thecounterparty, and the maximum risk exposure is equal to the book value of theseinstruments.
As the Company carries out transactions only with accredited and reputable thirdparties, no collateral is necessary. The credit risks are managed centrally based oncustomers/counterparties, geographic locations and industries. As the Group's accountsreceivable are widely dispersed among the customers bases, there exists no significantconcentration of credit risks within the Company.
For the quantitative data of the Company's credit risk exposure arising from notesreceivable, accounts receivable and other receivables, please refer to "Section 10 VII. 5Accounts Receivable" and "Section 10 VII. 8 Other Receivables ".
(2) Liquidity risks
The Company's goal is to maintain a balance between continuity and flexibility offinancing by using various financing means such as notes payable and accounts payable.
(3) Exchange rate risk
The Company faces transactional exchange rate risk. Such risks arise from sales orpurchases by operating units in currencies other than their functional currency.Approximately 1.13% (2020: 0.80%) of the Group's sales was denominated in currenciesother than the functional currency of the operating unit in which the sales occurred. As theamount of the Group's foreign currency business is not significant, the Group believes thatchanges in foreign exchange rates will not have a significant impact on the Company'sfinancial statements.
XI. Disclosure of Fair Value
1.Fair value at the end of the reporting period of the assets and liabilities measuredbased on the fair value"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Fair value at the end of the reporting period | |||
| Level 1 fair value measurement | Level 2 fair value measurement | Level 3 fair value measurement | Total | |
| I. Continuous fair value measurement | 142,668,675.59 | 8,332,754.00 | 151,001,429.59 | |
| (I)Financial assets held for trading | 142,668,675.59 | 142,668,675.59 | ||
| 1. Financial assets at fair value through profit or loss | 142,668,675.59 | 142,668,675.59 | ||
| (1) Debt instrument investment | ||||
| (2) Equity instrument investment | ||||
| (3) Derivative financial assets | ||||
| 2. Financial assets designated at fair value through profit or loss | ||||
| (1) Debt instrument investment | ||||
| (2) Equity instrument investment | ||||
| (II)Other debt investment | ||||
| (III)Other equity instrument investment | ||||
| (IV) Investment properties | ||||
| 1. Land use right for lease purpose | ||||
| 2. Leased buildings | ||||
| 3. The land use right held and to be assigned after appreciation. | ||||
| (V)Biological assets | ||||
| 1. Consumable biological asset | ||||
| 2. Productive biological asset | ||||
| (VI)Receivables financing | 8,332,754.00 | 8,332,754.00 | ||
| Total assets measured based on fair value | 142,668,675.59 | 8,332,754.00 | 151,001,429.59 | |
| (VI) Financial liabilities held for trading | ||||
| 1. Financial liabilities at fair value through profit or loss | ||||
| Where: Issued transactional bonds | ||||
| Derivative financial liabilities | ||||
| Others | ||||
| 2. Financial liabilities designated at fair value through profit or loss | ||||
| Total liabilities continuously measured based on fair value | ||||
| II. Non-continuous fair value measurement | ||||
| (I) Held-for-sale assets | ||||
| Total assets non-continuously measured based on fair value | ||||
| Total liabilities non-continuously measured based on fair value |
2. Basis for determining the market price of the items measured based on the
continuous and non-continuous first level fair value"□ Applicable" "√ Inapplicable"
3.Items measured based on the continuous or non-continuous 2nd level fair value,
valuation technique as used, nature of important parameters and quantitative
information"□ Applicable" "√ Inapplicable"
4.Items measured based on the continuous or non-continuous 3rd level fair value,
valuation technique as used, nature of important parameters and quantitative
information"□ Applicable" "√ Inapplicable"
5.Items measured based on the continuous 3rd level fair value, sensitivity analysison adjusted information and unobservable parameters between the book value atbeginning and end of the period"□ Applicable" "√ Inapplicable"
6.In case items measured based on fair value are converted between different levelsincurred in the reporting period, state the cause of conversion and determineconversion time point"□ Applicable" "√ Inapplicable"
7.Change of valuation technique incurred in the reporting period and cause of such
change"□ Applicable" "√ Inapplicable"
8.Fair value of financial assets and financial liabilities not measured at fair value"□ Applicable" "√ Inapplicable"
9.Others
"□ Applicable" "√ Inapplicable"XII. Related parties and transactions
1.About the Parent Company
"□ Applicable" "√ Inapplicable"
2.The Company’s subsidiaries
"√ Applicable" "□ Inapplicable"For details of the Company's subsidiaries, please refer to “Section X IX. 1. Equity inSubsidiaries”.
3.Joint ventures and associates of the Company
Refer to the Notes for details of the Company's major joint ventures or associates"√ Applicable" "□ Inapplicable"Please refer to Section X “VII. 17 Long-term Equity Investments” and “IX. 3 Equity in JointVentures or Associates” for the important joint ventures or associates of the Company.Other joint ventures or associates that had related transactions with the Company in thereporting period, or had related transactions with the Company in the previous period andformed a balance are as follows"√ Applicable" "□ Inapplicable"
| Name of joint venture or associate | Relationship with the Company |
| Tianjin Jiema Electric Technology Co., Ltd. | An associate in which the controlling shareholder acts as a director |
Other notes"□ Applicable" "√ Inapplicable"
4.Other related parties
"√ Applicable" "□ Inapplicable"
| Names of other related parties | Relationship between other related parties and the Company |
| Shandong Aidebang Intelligent Technology Co., Ltd. | A joint stock company of an associate |
| Taizhou Aidebang Intelligent Technology Co., Ltd. | Subsidiary of a joint stock company of an associate |
| Tianjin Magic Square Travel Technology Co., Ltd. | Subsidiary of an associate |
| Shangqiu Yichong Trading Co., Ltd. | Enterprises controlled by close family members of directors |
| Duan Hua | Director, the controlling shareholder’s spouse |
Other notes:
On August 15, 2021, Taizhou Huangyan Technology Innovation Investment Co., Ltd.,Suzhou Jinshajiang United Phase III Equity Investment Partnership (Limited Partnership),Suzhou Zhongxin Botong Jinshi Venture Capital Partnership(L.P.) and Suzhou Jinsha
Lake Venture Capital Management Co., Ltd. jointly funded the establishment of TaizhouJinfu. On September 27, 2021, Taizhou Jinfu signed the "Shareholders Agreement" and"Capital Increase Agreement" with the original shareholder of Aidebon, according to whichthey would invest RMB 160 million in Aidebang, with a shareholding ratio of 21.05%.Aidebang became a related party of the Company on September 27, 2021, and the saidrelated transaction was disclosed as a related transaction. According to the relevantprovisions of the "Listing Rules of Shanghai Stock Exchange", Shandong AidebangIntelligent Technology Co., Ltd. is not a related party based on the Company's informationdisclosure standard.
5.Related transactions
(1) Related transactions of purchase and sale of commodities and supply andacceptance of labor servicesStatement of purchase of commodities and acceptance of labor services"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Related parties | Description of Related Transactions | Amount incurred in the reporting period | Amount of approved transactions (if applicable) | Whether the transaction amount is exceeded (if applicable) | Amount incurred in the previous period |
| Tianjin Jiema | Purchase of raw materials. | 6,917,694.49 | 50,000,000.00 | No | 11,095,671.78 |
| Geling New Energy | Purchase of raw materials | 24,803,224.66 | |||
| Taizhou Aidebang Intelligent Technology Co., Ltd. | Purchase of raw materials | 120,959,079.64 | |||
| Shangqiu Yichong Trading Co., Ltd. | Purchase of raw materials | 18,974,739.23 | 50,000,000.00 | No | |
| Shandong Aidebang Intelligent Technology Co., Ltd. | Purchase of raw materials | 53,999,230.71 | 69,726,294.77 | ||
| Total | 225,653,968.73 | 80,821,966.55 |
Statement of sales of goods/supply of services"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Related party | Description of Related Transactions | Amount incurred in the reporting period | Amount incurred in the previous period |
| Tianjin Jiema | Supply of services | 400,633.54 | 223,442.56 |
| Beijing Zhongzhong | Sales of goods | 3,565,572.70 | 5,860,008.19 |
| Geling New Energy | Sales of goods, accessories | 30,758,228.37 | |
| Tianjin Magic Square Travel Technology Co., Ltd. | Sales of goods | 1,653,539.83 | |
| Total | 36,377,974.44 | 6,083,450.75 |
Note to related transactions of purchase and sale of commodities and supply andacceptance of labor services"√ Applicable" "□ Inapplicable"
① In 2022, the Company purchased parts, semi-finished products and receivedservices from Tianjin Jiema Electric Technology Co., Ltd. for a total amount of RMB6,917,694.49 (accounted for by the net method on behalf of exported products, includingthe purchase default fine paid of RMB 2,000,000.00) (2021: RMB 11,095,671.78).
② In 2022, the Company purchased raw materials totaling RMB 24,803,224.66 (2021: none)from Geling New Energy Technology (Shandong) Co., Ltd.
③ In 2022, the Company purchased raw materials totaling RMB 120,959,079.64 (2021:
None) from Taizhou Aidebang Intelligent Technology Co., Ltd.
④In 2022, the Company purchased raw materials of RMB 18,974,739.23 (2021: none) fromShangqiu Yichong Trading Co., Ltd.
⑤ In 2022, the Company procured accessories, semi-finished products and obtained labourservices from Shandong Aidebang Intelligent Technology Co., Ltd. for a total amount of RMB53,999,230.71 (2021: RMB 69,726,294.77).
⑥In 2022, the Company rendered services to Tianjin Jiema Electric Technology Company
Limited totaling RMB 400,633.54 (2021: RMB 223,442.56).
⑦In 2022, the Company sold products to Beijing Zhongzhong Travel Technology Co., Ltd.
of RMB 3,565,572,70 (2021: RMB 5,860,008.19).
⑧In 2022, the Company sold products and accessories to Geling New Energy Technology(Shandong) Co., Ltd. of RMB 30,758,228.37 (2021: none).
⑨In 2022, the Company sold products to Tianjin Magic Square Travel Technology Co., Ltd.of RMB 1,653,539.83 (2021: none).
(2) Related entrusted management/contracted and mandatorymanagement/contractingStatement of the Company's entrusted management/contracting:
"□ Applicable" "√ Inapplicable"Related entrusted management/contracting"□ Applicable" "√ Inapplicable"Statement of the Company's entrusted management/outsourcing"□ Applicable" "√ Inapplicable"
Related management/outsourcing"□ Applicable" "√ Inapplicable"
(3) Related lease
The Company as lessor:
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Names of lessee | Categories of leasehold properties | Rental income recognised in the reporting period | Rental income recognised in the previous period |
| Tianjin Jiema Electric Technology Co., Ltd. | Property lease | 5,795,080.18 | 6,333,512.82 |
| Total | 5,795,080.18 | 6,333,512.82 |
The Company as lessee:
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Names of lessor | Categories of leasehold properties | Rental charges for streamlined short-term leases and leases of low-value assets (if applicable) | Variable lease payments not included in the measurement of the lease liability (if applicable) | Rent paid | Interest expense on lease liabilities assumed | Increased right-to-use assets | |||||
| Amount incurred in the reporting period | Amount incurred in the previous period | Amount incurred in the reporting period | Amount incurred in the previous period | Amount incurred in the reporting period | Amount incurred in the previous period | Amount incurred in the reporting period | Amount incurred in the previous period | Amount incurred in the reporting period | Amount incurred in the previous period | ||
| Tianjin Jiema | Equipment lease | 26,548.68 | 26,548.68 | 26,548.68 | |||||||
| Duan Hua | Property lease | 4,761,904.76 | 4,761,904.76 | 412,806.47 | 606,024.29 | ||||||
Related lease"√ Applicable" "□ Inapplicable"
① In 2022, the Company leased premises to Tianjin Jiema Electric Technology Company Limitedand received rental income with the amount of RMB 5,795,080.18 (excluding collection of utility charges)(2021: RMB 6,333,512.82).
② In July 2019, the Company leased the office in Tianjin World Financial Center (“Jin Tower”)from Duan Hua for daily operation for a term from July 10, 2019 to July 9, 2024 at an annual rent of RMB4,761,904.76, with rent payable quarterly. In 2022, the total lease payment was RMB 4,761,904.76 (2021:
RMB 4,761. 904.76). The Company adopted the new leasing standard from January 1, 2021, thereforethe leasing transactions were accounted for under the right-of-use asset and lease liability accounts.
③ In 2022, the Company did not lease in equipment from Tianjin Jiema Electric Technology Co.,Ltd.
(4) Related guarantee
The Company as a guarantor"□ Applicable" "√ Inapplicable"The Company as a guarantee"□ Applicable" "√ Inapplicable"Note to related guarantee"□ Applicable" "√ Inapplicable"
(5) Borrowings and lendings among related parties
"□ Applicable" "√ Inapplicable"
(6) Assets assignment and liabilities reorganization of related parties"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Related party | Description of Related Transactions | Amount incurred in the reporting period | Amount incurred in the previous period |
| Geling New Energy | Fixed assets disposal | 11,277,349.19 | |
| Total | 11,277,349.19 |
(7) Remuneration to senior executives
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Amount incurred in the reporting period | Amount incurred in the previous period |
| Remuneration to senior executives | 54,784,735.46 | 13,086,510.11 |
(8) Other related transactions
"√ Applicable" "□ Inapplicable"
1. In 2022, the total amount of key management personnel remuneration incurred by the Group(including the use of monetary, in-kind and other forms) was RMB 54,784,735.46 (2021: RMB13,086,510.11). Of which, the related expenses charged for share-based payments for the year wereRMB 28,497,920.00 (2021: none).
2.In 2022, the Group received a total dividend distribution of RMB 2,800,000.00 (2021: RMB5,724,000.00) from Tianjin Jiema Electric Technology Co., Ltd. (2021: RMB 5,724,000.00).
6.Accounts receivable from and payable to related parties
(1) Receivables
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Description | Related party | Ending balance | Opening balance | ||
| Book balance | Bad debt reserve | Book balance | Bad debt reserve | ||
| Accounts receivable | Tianjin Jiema Electric Technology Co., Ltd. | 87,750.00 | 938.93 | ||
| Prepayment | Tianjin Jiema Electric Technology Co., Ltd. | 9,469.19 | 2,593,313.53 | ||
| Other receivables | Tianjin Jiema Electric Technology Co., Ltd. | 291,482.00 | 2,685,921.37 | 1,125,000.00 | |
| Other receivables | Shandong Aidebang Intelligent Technology Co., Ltd. | 107,506,442.86 | |||
| Other receivables | Geling New Energy | 4,821,488.81 | |||
| Other receivables | Duan Hua | 450,000.00 | 450,000.00 |
(2)Payables
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Description | Related party | Ending book balance | Opening book balance |
| Accounts payable | Tianjin Jiema Electric Technology Co., Ltd. | 1,162,195.26 | 2,232,360.55 |
| Accounts payable | Geling New Energy | 1,606,049.08 | |
| Accounts payable | Taizhou Aidebang Intelligent Technology Co., Ltd. | 1,103,656.70 | |
| Accounts payable | Shangqiqu Yichong | 14,031,638.68 | |
| Accounts payable | Shandong Aidebang Intelligent Technology Co., Ltd. | 22,567.50 | 445,120.13 |
| Notes payable | Shandong Aidebang Intelligent Technology Co., Ltd. | 24,796,814.74 | |
| Contract liabilities | Beijing Zhongzhong | 8,167.96 | |
| Contract liabilities | Tianjin Magic Square | 3,729,203.54 | |
| Other current liabilities | Beijing Zhongzhong | 1,061.83 | |
| Other current liabilities | Tianjin Magic Square | 484,796.46 | |
| Receipts in advance | Tianjin Jiema Electric Technology Co., Ltd. | 2,439,875.78 | 2,910,301.01 |
| Other payables | Geling New Energy | 200,000.00 | |
| Other payables | Shangqiu Yichong | 50,000.00 | |
| Other payables | Tianjin Jiema | 1,297,834.33 | 228,242.60 |
| Other payables | Taizhou Aidebang | 1,000,000.00 | |
| Other payables | Shandong Aidebang Intelligent Technology Co., Ltd. | 1,007,368.00 | |
| Lease liabilities | Duan Hua | 2,353,501.71 | 6,909,182.17 |
7.Related parties’ commitments
"□ Applicable" "√ Inapplicable"
8.Others
"□ Applicable" "√ Inapplicable"XIII. Share-based payment
1.General of share-based payment
"√ Applicable" "□ Inapplicable"
In: share Currency: RMB
| Total amount of various equity instruments granted by the Company during the reporting period | 80,660,907.94 |
Other notes
On December 27, 2021, 2021 3rd extraordinary general meeting of Aima Group reviewed andapproved the proposal on the 2021 Restricted Stock Incentive Plan of AIMA Technology Group Co,.LTD. (Draft) and its summary. A total of 7.06 million restricted shares were granted, accounting forabout 1.75% of the total share capital of 403,660,003 shares, of which 6,860,000 shares weregranted for the first time and 200,000 shares were reserved; the number of incentive objects grantedfor the first time by this plan was 112 persons, including senior executives, medium and seniormanagement personnel, and core technical (business) personnel; the grant price of the restrictedshares granted for the first time in this plan is RMB 20.23 per share.On December 27, 2021, the 24th session of the fourth board of directors of Aima Group reviewedand approved the “Proposal on Adjusting the List of Incentive Objects and the Number of Equity
Granted for the First Time in 2021 Restricted Stock Incentive Plan”. After the adjustment, the numberof incentive objects granted for the first time by this plan was changed from 112 to 106, and the totalamount of restricted shares granted for the first time was adjusted from 6.86 million shares to 6.79million shares. Later, because some incentive objects voluntarily gave up the subscription of 10,000restricted shares granted in part, a total of 6,780,000 restricted shares were actually granted to 105incentive objects. As of January 5, 2022, the Company had received the total amount of RMB137,159,400.00 from 105 stock incentive objects for 6,780,000 restricted shares.On April 14, 2022, the 25th meeting of the fourth board of directors and the 13th meeting of thefourth board of supervisors of the Company considered and approved the Proposal on Repurchaseand Cancellation of Restricted Stock Granted at the First Time under the Restricted Stock IncentivePlan 2021 and the Proposal on Granting Reserved Restricted Stock to Incentive Objects. After thecompletion of this repurchase and cancellation, the total number of restricted shares granted for thefirst time changed from 6,780,000 shares to 6,660,000 shares, and the number of incentive objectsgranted for the first time changed from 105 to 101. The repurchase price paid by the Company forthe repurchase of restricted shares was RMB 2,427,600.00 (plus interest on bank deposits). Also, itwas determined to grant 200,000 reserved restricted shares to 15 incentive objects on April 18, 2022at a grant price of RMB 20.23 per share. Finally, as one incentive object voluntarily gave up thesubscription of 20,000 restricted shares due to personal reasons, the actual number of reservedgrant of the Company's 2021 Restricted Share Incentive Plan was adjusted from 200,000 shares to180,000 shares, and the number of incentive objects with the reserved grant adjusted from 15 to 14.As of May 5, 2022, the Company had received the total amount of RMB3,641,400.00 from the 14incentive objects for the proceeds of 180,000 restricted shares.The lock-up periods for restricted shares granted based on this incentive plan are 15 months,27 months and 39 months from the date when the registration of the grant of restricted sharesgranted to the incentive objects is completed.
2.About the equity-settled share-based payment
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Method of determining the fair value of equity instruments at the date of grant | Closing price on the grant date |
| Basis for determining the number of exercisable equity instruments | The financial performance indexes and individual performance indexes of the Company are evaluated each year, and the number held by the incentive objects who satisfy the evaluation target is used as the basis |
| Reasons for significant differences between current period and prior period estimates | |
| Aggregate amount of equity-settled share-based payments charged to capital surplus | 80,660,907.94 |
| Total expense recognised for equity-settled share-based payments during the period | 80,660,907.94 |
3.Cash-settled share-based payment
"□ Applicable" "√ Inapplicable"
4.Correction and termination of share-based payment
"□ Applicable" "√ Inapplicable"
5.Others
"□ Applicable" "√ Inapplicable"XIV. Commitments and contingencies
1. Important commitments
"√ Applicable" "□ Inapplicable"Important external commitments, the nature and the amount existing as at the balance sheet date
| Items | December 31, 2022 | December 31, 2021 |
| Capital commitments with contract signed but not yet provided | 68,081,624.42 | 50,470,332.66 |
2. Contingencies
(1) Significant contingencies existing as at the balance sheet date
"□ Applicable" "√ Inapplicable"
(2) The Company had no important contingencies unnecessary to be disclosed but necessary tobe explained"□ Applicable" "√ Inapplicable"
3.Others
"□ Applicable" "√ Inapplicable"XV. Events after the balance sheet date
1.Module: Significant non-adjustment events
"□ Applicable" "√ Inapplicable"
2.Profit distribution
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Profit or dividend to be distributed | 749,408,805.22 |
| Profit or dividend announced to be distributed after review and approval | 749,408,805.22 |
On April 14, 2023, the Company held 6th session of the Fifth Board of Directors at which a preplanfor profit distribution and capital reserves capitalization in 2022 was proposed. According to the preplan,the Company was to distribute cash dividend amounting to RMB 749,408,805.22 (or at the rate of RMB
1.304 per share). At the same time, the Company was to capitalize its capital reserves to wholeshareholders at the rate of 5 shares for every 10 shares. Calculated based on the Company's total capitalstock of 574,700,004 shares as of April 14, 2023, after the capitalization, the Company's total capitalstock would increase to 862,050,006 shares.
3.Sales return
"□ Applicable" "√ Inapplicable"
4.Note other post balance sheet events
"√ Applicable" "□ Inapplicable"
(1) Issuance of convertible bonds
On August 5, 2022, the Company held the second extraordinary general meeting of 2022 to considerand approve the Proposal on the Plan for Public Issuance of Convertible Bonds. Pursuant to theresolution of the Company's shareholders' meeting and the approval of the China Securities RegulatoryCommission (Z.J.X.K. [2022] No.3038 Document), the convertible bonds issued by the Company will beplaced on a preferential basis to the original shareholders registered in China Securities Depository andClearing Corporation Limited Shanghai Branch after the close of business on the share registration date(February 22, 2023), and the remaining part after the preferential placement of the original shareholders(including the portion of the original shareholders who have waived) will be issued to public investorsthrough the trading system of the Shanghai Stock Exchange. According to the capital verification report(Ernst & Young Hua Ming (2023) Yanzi No. 60968971_L01), as of March 1, 2023, the Company receivednet proceeds of RMB 1,996,200,000.00, excluding the underwriting and sponsorship fees paid (includingtax) of RMB 3,800,000.00. With the approval of the Self-Regulatory Decision (No. 41 [2023] Document)of Shanghai Stock Exchange, the Company’s RMB 2 billion convertible corporate bonds have been listedfor trading on Shanghai Stock Exchange since March 20, 2023, under the short name of “AIMAConvertible Bonds” and the bond code of “113666”.
(2) Stock option incentive plan
On April 14, 2023, the Company held the first extraordinary general meeting of 2023 to consider andapprove the proposal on the Stock Option Incentive Plan for 2023 (Draft) and its summary, and theproposal on the Management Measures for the Implementation Evaluation of the Stock Option IncentivePlan for 2023. According to the resolution of the general meeting of the Company, the total number ofincentive objects granted by the Company was 328, the number of stock options granted was 4.812million with the exercise price of RMB 48.07 per share. The incentive plan is valid for a maximum of 48months from the date of stock option grant to the date of exercise or cancellation of all the stock optionsgranted to the incentive objects.
(3) Establishment of subsidiaries
On January 12, 2023, Chongqing Xiaoma Intelligent Technology Co., Ltd. and Guangxi GuigangFushuai Electric Vehicle Co., Ltd. jointly founded Guangxi Xiaoma Intelligent Technology Co., Ltd. The
registered capital of Guangxi Xiaoma Intelligent Technology Co., Ltd. is RMB 50,000,000.00, with thecapital contribution received from the shareholders of RMB 20,000,000.00 so far.
On February 16, 2023, Chongqing Aima Mechanical and Electrical Technology Co., Ltd. establisheda wholly-owned subsidiary, Tianjin Aima Mechanical and Electrical Technology Co., Ltd. ("TianjinMechanical and Electrical Technology"). The registered capital of Tianjin Mechanical and ElectricalTechnology is RMB 50,000,000.00, with the capital contribution received by RMB 18,619,000.00 so far.
(4) Other investments
On January 5, 2023, the Company invested in Guangxi Ningfu New Energy Technology Co., Ltd. byacquiring 4.9261% shares with the cost of RMB50,000,000.00.
On February 6, 2023, the Company subscribed 10% shares of Kunming Mi Riding TransportationTechnology Co., Ltd., with no capital injected yet.XVI. Other significant events
1. Correction of the accounting errors in the previous period
(1) Retroactive restatement
"□ Applicable" "√ Inapplicable"
(2) Prospective application method
"□ Applicable" "√ Inapplicable"
2.Liabilities restructuring
"□ Applicable" "√ Inapplicable"
3. Replacement of assets
(1) Non-monetary assets exchange
"□ Applicable" "√ Inapplicable"
(2) Other assets exchange
"□ Applicable" "√ Inapplicable"
4.Annuity plan
"□ Applicable" "√ Inapplicable"
5.Operation termination
"□ Applicable" "√ Inapplicable"
6.Segment information
(1) Basis for determining the reporting segments and accounting policy"□ Applicable" "√ Inapplicable"
(2) Financial information of the reporting segments
"□ Applicable" "√ Inapplicable"
(3) In case there is no reporting segment or the total assets and liabilities of the reporting
segments cannot be disclosed, explain the reason"√ Applicable" "□ Inapplicable"
The Company is mainly engaged in the electric two-wheeled vehicle business, and the assets relatedto the services supply are located in China. In terms of internal organizational structure and managementrequirements, the Company takes the Company's businesses as a whole to review internal reports,allocate resources and performance assessment. Therefore, except the information already presented inthe financial statements, there is no other segment information necessary to be presented.
(4) Other notes
"√ Applicable" "□ Inapplicable"
Geographical information: The vast majority of the Company's foreign transaction revenue comesfrom domestic sources. The Company's non-current assets (excluding financial assets and deferredincome tax assets) are all located in China.
In 2022, the Company did not generate more than 10% of its operating revenues from a singlecustomer.
7.Other significant transactions and matters that may affect investors' decision making"□ Applicable" "√ Inapplicable"
8.Others
"□ Applicable" "√ Inapplicable"XVII. Notes to the parent company’s financial statements
1. Accounts receivable
(1) Disclosed based on aging
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Aging | Ending book balance |
| Within 1 year | |
| Where: Itemized within 1 year | |
| Within 1 year | 132,394,484.26 |
| Sub-total within 1 year | 132,394,484.26 |
| 1 to 2 years | 4,491,535.52 |
| 2 to 3 years | 138,725.00 |
| Over 3 years | |
| Total | 137,024,744.78 |
(2) Classified disclosure based on the method of provision for bad debt"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Categories | Ending balance | Opening balance | ||||||||
| Book balance | Bad debt reserve | Book value | Book balance | Bad debt reserve | Book value | |||||
| Amount | Proportion (%) | Amount | Provision proportion (%) | Amount | Proportion (%) | Amount | Provision proportion (%) | |||
| Assessed bad debt provision individually | 32,471,486.51 | 23.7 | 3,176,317.65 | 9.78 | 29,295,168.86 | 10,964,633.94 | 12.03 | 10,964,633.94 | ||
| Where: | ||||||||||
| Individual provision for bad debts | 32,471,486.51 | 23.7 | 3,176,317.65 | 9.78 | 29,295,168.86 | 10,964,633.94 | 12.03 | 10,964,633.94 | ||
| Assessed bad debt provision in portfolio | 104,553,258.27 | 76.3 | 1,557,146.17 | 1.49 | 102,996,112.10 | 80,170,079.09 | 87.97 | 938,600.94 | 1.18 | 79,231,478.15 |
| Where: | ||||||||||
| Portfolios based on credit risk characteristics | 104,553,258.27 | 76.3 | 1,557,146.17 | 1.49 | 102,996,112.10 | 80,170,079.09 | 87.97 | 938,600.94 | 1.18 | 79,231,478.15 |
| Total | 137,024,744.78 | 100 | 4,733,463.82 | / | 132,291,280.96 | 91,134,713.03 | 100 | 938,600.94 | / | 90,196,112.09 |
Individual provision for bad debts:
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Name | Ending balance | |||
| Book balance | Bad debt provision | Provision proportion (%) | Provision reason | |
| Suning Procurement Center of Suning Tesco Group Co., Ltd. | 3,176,317.65 | 3,176,317.65 | 100.00 | Less likely to be recovered |
| Accounts receivable from subsidiaries in the scope of consolidation | 29,295,168.86 | |||
| Total | 32,471,486.51 | 3,176,317.65 | 9.78 | / |
Notes to the provision for bad debts by individual items:
"□ Applicable" "√ Inapplicable"
Provision for bad and doubtful debts based on portfolio:
"√ Applicable" "□ Inapplicable"Provision items on portfolio: Provision for bad debts recognised based on the portfolio of credit riskcharacteristics
In: Yuan Currency: RMB
| Name | Ending balance | ||
| Accounts receivable | Bad debt provision | Provision proportion (%) | |
| Within 1 year(including 1 year) | 103,096,636.40 | 1,164,992.00 | 1.13 |
| 1 to 2 years(including 2 year) | 1,317,569.07 | 321,223.34 | 24.38 |
| 2 to 3 years(including 3 year) | 139,052.80 | 70,930.83 | 51.01 |
| Total | 104,553,258.27 | 1,557,146.17 | 1.49 |
Criteria of and note to recognition of provision for bad debts based on portfolio:
"□ Applicable" "√ Inapplicable"If the provision for bad debt is accrued in accordance with the general model of expected credit loss,please refer to the disclosure of other receivables"□ Applicable" "√ Inapplicable"
(3) Provision for bad debts
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Categories | Opening balance | Amount of movement during the reporting period | Ending balance | |||
| Provision | Recovery or reversal | Charge-off or write-off | Other changes | |||
| Provision for bad debts | 938,600.94 | 6,907,610.75 | 938,600.94 | 2,174,146.93 | 4,733,463.82 | |
| Total | 938,600.94 | 6,907,610.75 | 938,600.94 | 2,174,146.93 | 4,733,463.82 | |
Where the significant amount of the reserve for bad debt recovered or reversed:
"□ Applicable" "√ Inapplicable"
(4)Accounts receivable actually written off in the reporting period
"□ Applicable" "√ Inapplicable"Where, the important accounts receivable written-off"□ Applicable" "√ Inapplicable"
(5)Accounts receivable owed by the top five debtors based on the ending balance"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Organization name | Ending balance | Proportion in total ending balance of accounts receivable (%) | Ending balance of the provision for bad debts |
| Customer 1 | 8,478,929.97 | 6.19 | 304,210.17 |
| Customer 2 | 8,140,000.00 | 5.94 | 91,982.00 |
| Customer 3 | 6,289,132.53 | 4.59 | 71,067.20 |
| Customer 4 | 6,228,065.34 | 4.55 | 70,377.14 |
| Customer 5 | 5,906,898.47 | 4.31 | 66,747.95 |
| Total | 35,043,026.31 | 25.58 | 604,384.46 |
Other Notes:
The top five companies in accounts receivable are disclosed according to a single entity.
(6) Account receivable with recognition terminated due to transfer of financial assets"□ Applicable" "√ Inapplicable"
(7) Amount of assets and liabilities formed through transfer of account receivable andcontinuing to be involved"□ Applicable" "√ Inapplicable"Other notes:
"□ Applicable" "√ Inapplicable"
2. Other receivables
Items Presentation"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Ending balance | Opening balance |
| Interest receivables | 350,530.03 | 255,452.31 |
| Dividends receivable | ||
| Other receivables | 68,356,060.43 | 226,578,880.94 |
| Total | 68,706,590.46 | 226,834,333.25 |
Other notes:
"□ Applicable" "√ Inapplicable"Interest receivables
(1) Classification of interest receivable
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Ending balance | Opening balance |
| Interest of accounts receivable | 350,530.03 | 255,452.31 |
| Total | 350,530.03 | 255,452.31 |
(2) Significant overdue interest
"□ Applicable" "√ Inapplicable"
(3) Provision for bad debts
"□ Applicable" "√ Inapplicable"Other notes:
"□ Applicable" "√ Inapplicable"Dividend receivable
(1) Dividend receivable
"□ Applicable" "√ Inapplicable"
(2）Significant dividends receivable with age exceeding 1 year
"□ Applicable" "√ Inapplicable"
(3) Provision for bad debts
"□ Applicable" "√ Inapplicable"Other notes:
"□ Applicable" "√ Inapplicable"
Other receivables
(1) Disclosed based on aging
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Aging | Ending book balance |
| Within 1 year | |
| Where: Itemized within 1 year | |
| Within 1 year | 67,617,489.04 |
| Sub-total within 1 year | 67,617,489.04 |
| 1 to 2 years | 137,476.89 |
| 2 to 3 years | 32,000.00 |
| Over 3 years | 579,394.50 |
| Total | 68,366,360.43 |
(2) Classification based on the nature of fund
"□ Applicable" "√ Inapplicable"
(3) Provision for bad debts
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Bad debt provision | Stage 1 | Stage 2 | Stage 3 | Total |
| 12-month expected credit losses | Lifetime expected credit losses (no credit impairment incurred) | Lifetime expected credit losses (credit impairment already incurred) | ||
| Balance as at January 1, 2022 | 14,346.70 | 14,346.70 | ||
| Balance as at January 1, 2022 in the reporting period | 14,346.70 | 14,346.70 | ||
| -- transferred into Stage 2 | ||||
| -- transferred into Stage 3 | ||||
| -- revered to Stage 2 | ||||
| -- reversed to Stage 1 | ||||
| Accrual | 10,300.00 | 10,300.00 | ||
| Reversal | 14,346.70 | 14,346.70 | ||
| Transfer out | ||||
| Write-off | ||||
| Other changes | ||||
| Balance as at December 31, 2022 | 10,300.00 | 10,300.00 |
Note to the significant changes in the book balance of other receivables with changes in provision for lossin the reporting period:
"□ Applicable" "√ Inapplicable"The amount of provision for bad debts in the reporting period and the basis for assessing whether thecredit risk of financial instruments has increased significantly"□ Applicable" "√ Inapplicable"
(4) Provision for bad debts
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Categories | Opening balance | Amount of movement during the reporting period | Ending balance | |||
| Provision | Recovery or reversal | Charge-off or write-off | Other changes | |||
| Bad debt provision | 14,346.70 | 10,300.00 | 14,346.70 | 10,300.00 | ||
| Total | 14,346.70 | 10,300.00 | 14,346.70 | 10,300.00 |
Where a significant amount of the reserve for bad debt recovered or reversed during the reporting period:
"□ Applicable" "√ Inapplicable"
(5) Other receivables actually written off in the reporting period
"□ Applicable" "√ Inapplicable"
(6) Other receivables owed by the top five debtors based on the ending balance"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Organization name | Nature of Payment | Ending balance | Aging | Proportion in total ending balance of other receivables | Closing balance of Provision for bad debts |
| Company 1 | Intercompany accounts | 15,400,000.00 | Within 1 year | 22.53 | |
| Company 2 | Intercompany accounts | 15,000,000.00 | Within 1 year | 21.83 | |
| Company 3 | Intercompany accounts | 13,019,590.39 | Within 1 year | 18.95 | |
| Company 4 | Intercompany accounts | 4,851,369.54 | Within 1 year | 7.06 | |
| Company 5 | Intercompany accounts | 3,434,871.24 | Within 1 year | 5.00 | |
| Total | / | 51,705,831.17 | / | 75.37 |
(7) Accounts receivable involving government subsidy
"□ Applicable" "√ Inapplicable"
(8) Other receivables with recognition terminated due to transfer of financial assets"□ Applicable" "√ Inapplicable"
(9) Amount of assets and liabilities formed through transfer of other receivables and continuingto be involved"□ Applicable" "√ Inapplicable"Other notes:
"□ Applicable" "√ Inapplicable"
3. Long-term equity investments
?Applicable □Inapplicable
In: Yuan Currency: RMB
| Items | Ending balance | Opening balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Investment in subsidiaries | 1,102,205,042.46 | 1,102,205,042.46 | 774,596,113.08 | 774,596,113.08 | ||
| Investment in associates and joint ventures | 38,817,295.52 | 38,817,295.52 | 100,350,602.41 | 100,350,602.41 | ||
| Total | 1,141,022,337.98 | 1,141,022,337.98 | 874,946,715.49 | 874,946,715.49 | ||
(1) Investment in subsidiaries
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Investees | Opening balance | Increase in the reporting period | Decrease in the reporting period | Ending balance | Provision for impairment in the reporting period | Ending balance of the provision for impairment |
| Aima Nanfang | 100,000,000.00 | 100,000,000.00 | ||||
| Aima Chongqing | 866,070,335.76 | 866,070,335.76 | ||||
| Henan Vehicle | 5,676,019.01 | 5,676,019.01 | ||||
| Guangdong Vehicle | 2,838,009.50 | 2,838,009.50 | ||||
| Jiangsu Vehicle | 495,706,179.13 | 495,706,179.13 | ||||
| Zhejiang Vehicle | 2,838,009.50 | 2,838,009.50 | ||||
| Tianjin Vehicle | 9,933,033.27 | 9,933,033.27 | ||||
| Sichuan Aima | 10,211,400.00 | 10,211,400.00 | ||||
| Xiaopa Electric | 1,240,000.00 | 1,240,000.00 | ||||
| Tianjin Jinge | 1,411,080.50 | 1,411,080.50 | ||||
| Aima Venture Capital | 10,000,000.00 | 82,329,028.97 | 92,329,028.97 | |||
| Zhejiang Sales | 1,000,000.00 | 1,000,000.00 | ||||
| Chongqing Vehicle | 50,000,000.00 | 50,000,000.00 | ||||
| Tianjin Sports | 10,000,000.00 | 356,223.96 | 10,356,223.96 | |||
| Xiaoma Network | 8,500,000.00 | 8,500,000.00 | ||||
| Aima Share | 8,586,100.00 | 8,586,100.00 | ||||
| Suiwanwan | 2,156,281.17 | 118,741.32 | 2,275,022.49 | |||
| Taizhou Manufacture | 50,000,000.00 | 50,000,000.00 | ||||
| Super Universe | 9,888,260.00 | 9,888,260.00 | ||||
| Suoteng Technology | 1,100.00 | 1,100.00 | ||||
| Tianjin Tianli | 4,500,001.00 | 4,500,001.00 | ||||
| Total | 774,596,113.08 | 958,763,690.01 | 631,154,760.63 | 1,102,205,042.46 |
(2) Investment in associates and joint ventures
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Investment In: | Opening Balance | Increase/ Decrease (+ / -) in the reporting period | Ending Balance | Ending balance of the provision for impairment | |||||||
| Increase | Decrease | Investment income under the equity method | other comprehensive income | Other equity movement | Cash dividend declared | Provision for impairment | Others | ||||
| I. Joint Venture | |||||||||||
| Sub-total | |||||||||||
| II. Associates | |||||||||||
| Today Sunshine | 11,569,394.32 | -1,231,629.61 | -10,337,764.71 | ||||||||
| Tianjin Jiema | 14,575,599.85 | -664,754.28 | 2,800,000.00 | -11,110,845.57 | |||||||
| Geling New Energy | 19,255,284.44 | 24,502,800.00 | -12,057,472.41 | -31,700,612.03 | |||||||
| Taizhou Jinfu | 54,950,323.80 | -16,133,028.28 | 38,817,295.52 | ||||||||
| Sub-total | 100,350,602.41 | 24,502,800.00 | -30,086,884.58 | 2,800,000.00 | -53,149,222.31 | 38,817,295.52 | |||||
| Total | 100,350,602.41 | 24,502,800.00 | -30,086,884.58 | 2,800,000.00 | -53,149,222.31 | 38,817,295.52 | |||||
4.Operating revenue and costs
(1). Operating revenue and costs
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Amount incurred in the reporting period | Amount incurred in the previous period | ||
| Income | Cost | Income | Cost | |
| Primary business | 8,032,042,197.59 | 7,464,933,212.00 | 10,790,139,364.31 | 10,568,578,183.78 |
| Other businesses | 231,734,878.05 | 194,420,927.02 | 153,088,794.92 | 109,794,528.45 |
| Total | 8,263,777,075.64 | 7,659,354,139.02 | 10,943,228,159.23 | 10,678,372,712.23 |
(2) Revenue arising from contracts
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Classification of Contracts | Total |
| Types of commodities | |
| Revenue from electric two-wheelers, electric Tricycle, bicycles and accessories | 8,032,042,197.59 |
| Other revenue | 185,489,980.80 |
| Classification based on the operation regions | |
| China Mainland | 8,196,154,830.70 |
| Other countries or regions | 21,377,347.69 |
| Timing of revenue recognition | - |
| Sales of goods | 8,032,042,197.59 |
| Revenue from materials | 157,356,118.73 |
| Others | 13,785,022.89 |
| After-sale service revenue | 14,348,839.18 |
| Total | 8,217,532,178.39 |
Description of revenue arising from contracts"□ Applicable" "√ Inapplicable"
(3) Note to performance obligations
"√ Applicable" "□ Inapplicable"
1) Sales of goods
The performance obligation is satisfied upon delivery of the products to customers. For sales bydistributors, most customers need to prepay the price, and the contract price for some customersusually expires within 1 year after delivery of the product.
(4) Note to apportioning to the residual performance obligations
"√ Applicable" "□ Inapplicable"At the end of the reporting period, the amount of revenue corresponding to the performance obligationsof the contracts which have been signed, but not yet performed or not yet completed is RMB70,361,822.99, of which: RMB 70,361,822.99 is expected to be recognised as revenue in 2023.Other notes:
The revenue recognised in the current year included in the book value of contract liabilities at thebeginning of the year is as follows:
In: Yuan Currency: RMB
| Items | 2022 | 2021 |
| Sales of goods | 158,708,940.97 | 87,057,363.44 |
5.Investment income
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Amount incurred in the reporting period | Amount incurred in the previous period |
| Long-term equity investment income under the cost method | 666,500,000.00 | 536,570,000.00 |
| Long-term equity investment income under the equity method | -30,086,884.58 | -39,589,711.80 |
| Gains from disposal of long-term equity investment | -54,407.60 | -600,000.00 |
| Return on investment from financial products | 11,346,684.29 | 14,815,576.27 |
| Total | 647,705,392.11 | 511,195,864.47 |
Other notes:
None
6.Others
"□ Applicable" "√ Inapplicable"
XVIII. Supplementary information
1.Statement of non-recurring gain or losses in the reporting period
"√ Applicable" "□ Inapplicable"
In: Yuan Currency: RMB
| Items | Amount |
| Profit or loss from disposal of non-current assets | -5,205,312.26 |
| Government grants recognised in during profit or loss (excluding those having close relationship with the Company’s normal business, conforming to the national policies and regulations and enjoying ongoing fixed amount or quantity according to certain standard) | 91,038,555.75 |
| The investment costs for acquiring subsidiaries, associates and joint ventures were less than the income generated by the fair value of the identifiable net assets of the investee at the time of acquiring the investment. | -12,120,000.00 |
| Except for the effective hedging business related to the ordinary business of the Company, changes in fair value of financial assets and financial liabilities held for trading, as well as the return on investment generated from the disposal of financial assets and financial liabilities held for trading and financial assets at fair value through other comprehensive income | 24,164,117.84 |
| Net non-operating income or expenses other than the above items | -13,062,366.52 |
| Other gain or loss in compliance with the definition of non-recurring gain or loss. | 16,736,022.09 |
| Less: Amount affected by the income tax | 25,387,754.23 |
| Amount of minority interest impact | 87,628.85 |
| Total | 76,075,633.82 |
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No. 1 onInformation Disclosure for Companies Offering their Securities to the Public – Non-recurring gain/lossand its non-recurring gain/loss items as illustrated in the Explanatory Announcement No. 1 onInformation Disclosure for Companies Offering their Securities to the Public – Non-recurring gain/losswhich have been defined as recurring gain/loss , it is necessary to explain the reason."□ Applicable" "√ Inapplicable"
2.ROE and EPS
"√ Applicable" "□ Inapplicable"
| Profit in the reporting period | Net return on equity, weighted average (%) | Earnings per share | |
| Basic earnings per share | Diluted earnings per share | ||
| Net profit attributable to owners of the parent | 31.15 | 3.31 | 3.31 |
| Net profit attributable to owners of the parent excluding non-recurring gains or losses | 30.08 | 3.17 | 3.17 |
3. Difference in the Accounting Data based respectively on the Chinese AccountingStandards (CAS) and International Accounting Standards (IAS)"□ Applicable" "√ Inapplicable"
4.Others
"□ Applicable" "√ Inapplicable"
Chairman of the Board: Zhang JianThe Report was approved by the Board of Directors. Date of the submission 4/14/2023
Revision information"□ Applicable" "√ Inapplicable"