LUTHAITEXTILECO.,LTD.
ANNUALREPORT2023
April2024
ANNUALREPORT2023
PartIImportantNotes,TableofContentsandDefinitions
TheBoardofDirectors(orthe“Board”),theSupervisoryCommitteeaswellasthedirectors,supervisorsandseniormanagementofLuThaiTextileCo.,Ltd.(hereinafterreferredtoasthe“Company”)herebyguaranteethefactuality,accuracyandcompletenessofthecontentsofthisReportanditssummary,andshallbejointlyandseverallyliableforanymisrepresentations,misleadingstatementsormaterialomissionstherein.LiuZibin,theCompany’slegalrepresentative,andZhangKeming,headofaccountingaffairsandheadoftheaccountingdepartment(equivalenttoaccountingmanager)herebyguaranteethattheFinancialStatementscarriedinthisReportarefactual,accurateandcomplete.AlltheCompany’sdirectorshaveattendedtheBoardmeetingforthereviewofthisReportanditssummary.TheCompanyhasdescribedindetailinthisReportthepossiblerisks.Pleaserefertothecontentsaboutthemajorrisksandcountermeasuresin“Prospects”in“PartIIIManagementDiscussionandAnalysis”ofthisReport.SecuritiesTimes,ShanghaiSecuritiesNews,ChinaSecuritiesJournal,TaKungPao(HK)andwww.cninfo.com.cnhavebeendesignatedbytheCompanyforitsinformationdisclosurein2024.AndallinformationabouttheCompanyshallbesubjecttowhat’sdisclosedbytheCompanyontheaforesaidmedia.Investorsarekindlyremindedtoexercisecautionwhenmakinginvestmentdecisions.TheCompanyissubjecttothedisclosurerequirementsforlistedcompaniesengagingintextileandapparelasstatedinGuidelineNo.3oftheShenzhenStockExchangeforSelf-regulationofListedCompanies—Industry-specificInformationDisclosure.In2023,globalgeopoliticaltensionsintensified,withfrequentlocalconflictsanddisturbances.Theworldeconomystruggledtogainmomentumandsufferedfromslowrecovery,withmajordevelopedeconomiesexperiencinghighinflationanddecliningdemand.Theexacerbatingfragmentationoftheglobaleconomyinturnhinderedthedevelopmentofglobaltrade.Facingacomplexandsevereinternationalenvironmentandslowrecoveryinconsumermarketdemand,centralandlocalgovernmentsatalllevelscontinuouslyintroducedandimplementedpoliciesto"stabiliseforeigntrade",leadingtoareboundinthenationaleconomyandanannualeconomicgrowthof5.2%.Thetextileandapparelforeigntradeindustryandenterprises,buildingontheirindustrialadvantages,activelyexpandedintoemergingmarkets,withtheirexportbusinessoverallshowingatrendofstabilisingandimprovingquarterbyquarter.Lookingforwardto2024,theexternalenvironmentremainssevereandcomplex,withtheglobalgeopoliticallandscapecontinuingtobeimpacted.WiththeongoingstabilisationandimprovementofChina'seconomy,thetextileindustrystandstobenefitfromleveragingtheadvantagesinherentinChina'scomprehensivetextileandapparelindustrialchain,aswellasitsstablesupplychain.Domestically,theindustrycanenhanceitsqualityandefficiencythroughadvancementsindigitalandintelligenttransformation,whilesimultaneouslyundertakingagreenandlow-carbontransition.Internationally,strategic
globalindustriallayoutandseamlesssupplychainintegrationwillenabletheindustrytoactivelyaddressthediversificationoftheglobalconsumermarket,therebyachievinghigh-qualitydevelopment.Fordetails,pleaserefertoPartIIIManagementDiscussionandAnalysis.TheBoardhasapprovedafinaldividendplanasfollows:basedonthesharecapitalof817,431,206shares(exclusiveofrepurchasedandretiredB-shares),acashdividendofRMB1.30(taxinclusive)per10sharesistobedistributedtotheshareholders,withnobonusissuefromeitherprofitorcapitalreserves.ThisReportanditssummaryhavebeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionsshallprevail.
TableofContents
PartIImportantNotes,TableofContentsandDefinitions ...... 2
PartIICorporateInformationandKeyFinancialInformation ...... 7
PartIIIManagementDiscussionandAnalysis ...... 11
PartIVCorporateGovernance ...... 36
PartVEnvironmentalandSocialResponsibility ...... 64
PartVISignificantEvents ...... 68
PartVIIShareChangesandShareholderInformation ...... 77
PartVIIIPreferredShares ...... 87
PartIXBonds ...... 88
PartXFinancialStatements ...... 92
DocumentsAvailableforReference
1.ThefinancialstatementssignedandstampedbytheCompany’slegalrepresentative,ChiefAccountantandFinancialManager;
2.TheoriginalIndependentAuditor’sReportstampedbytheCPAfirm,aswellassignedandstampedbytherelevantcertifiedpublicaccountants;and
3.TheoriginalsofalltheCompany’sannouncementsanddocumentsdisclosedtothepublicduringtheReportingPeriodonSecuritiesTimes,ShanghaiSecuritiesNews,ChinaSecuritiesJournalandTaKungPao.
Definitions
| Term | Definition |
| The“Company”,“LTTC”,“Issuer”or“we” | LuThaiTextileCo.,Ltd.anditsconsolidatedsubsidiaries,exceptwherethecontextotherwiserequires |
| TheBoardofDirectors | TheBoardofDirectorsofLuThaiTextileCo.,Ltd. |
| TheSupervisoryCommittee | TheSupervisoryCommitteeofLuThaiTextileCo.,Ltd. |
| CSRC | TheChinaSecuritiesRegulatoryCommission |
| RMB,RMB’0,000 | ExpressedintheChinesecurrencyofRenminbi,expressedintenthousandRenminbi |
| The“CompanyLaw” | The“CompanyLawofthePeople‘sRepublicofChina” |
| The“SecuritiesLaw” | The“SecuritiesLawofthePeople‘sRepublicofChina” |
| The“ReportingPeriod”or“CurrentPeriod” | Theperiodfrom1January2023to31December2023 |
PartIICorporateInformationandKeyFinancialInformation
ICorporateInformation
| Stockname | LTTC,LTTC-B | Stockcode | 000726,200726 |
| Previousstockname(ifany) | N/A | ||
| Stockexchangeforstocklisting | ShenzhenStockExchange | ||
| CompanynameinChinese | 鲁泰纺织股份有限公司 | ||
| Abbr. | 鲁泰纺织 | ||
| CompanynameinEnglish(ifany) | LUTHAITEXTILECO.，LTD | ||
| Abbr.(ifany) | LTTC | ||
| Legalrepresentative | LiuZibin | ||
| Registeredaddress | 61LuthaiBoulevard,High-techDevelopmentZone,ZiboCity,ShandongProvince,P.R.China | ||
| Zipcode | 255086 | ||
| Pastchangesofregisteredaddress | 11MingboRoad,ZiboHigh-techDevelopmentZone,ShandongProvince | ||
| Officeaddress | 81SonglingEastRoad,ZichuanDistrict,ZiboCity,ShandongProvince,P.R.China | ||
| Zipcode | 255100 | ||
| Companywebsite | www.lttc.com.cn | ||
| Emailaddress | lttc@lttc.com.cn | ||
IIContactInformation
| BoardSecretary | SecuritiesRepresentative | |
| Name | ZhangKeming | ZhengWeiyinandLiKun |
| Address | 81SonglingEastRoad,ZichuanDistrict,ZiboCity,ShandongProvince,P.R.China | 81SonglingEastRoad,ZichuanDistrict,ZiboCity,ShandongProvince,P.R.China |
| Tel. | 0533-5277008 | 0533-5285166 |
| Fax | 0533-5418805 | 0533-5418805 |
| Emailaddress | zhangkeming@lttc.com.cn | wyzheng@lttc.com.cn，likun@lttc.com.cn |
IIIMediaforInformationDisclosureandPlacewherethisReportIsLodged
| StockexchangewebsitewherethisReportisdisclosed | TheShenzhenStockExchange:http://www.szse.cn |
| MediaandwebsitewherethisReportisdisclosed | SecuritiesTimes,ShanghaiSecuritiesNews,ChinaSecuritiesJournal,TaKungPao(HK),andwww.cninfo.com.cn |
| PlacewherethisReportislodged | TheSecuritiesDepartmentoftheCompany |
IVChangetoCompanyRegisteredInformation
| Unifiedsocialcreditcode | 91370300613281175K |
| ChangetoprincipalactivityoftheCompanysincegoingpublic(ifany) | Nochange |
| Everychangeofcontrollingshareholdersince | Nochange |
VOtherInformation
TheindependentauditfirmhiredbytheCompany:
incorporation(ifany)Name
| Name | GrantThorntonChina |
| Officeaddress | 5thFloor,ScitechPalace22JianguomenWaiAvenue,ChaoyangDistrict,Beijing |
| Accountantswritingsignatures | HeFengandCuiXiaoli |
TheindependentsponsorhiredbytheCompanytoexerciseconstantsupervisionovertheCompanyintheReportingPeriod:
□Applicable?NotapplicableTheindependentfinancialadvisorhiredbytheCompanytoexerciseconstantsupervisionovertheCompanyintheReportingPeriod:
□Applicable?NotapplicableVIKeyFinancialInformation
Indicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow.
□Yes?No
| 2023 | 2022 | 2023-over-2022change(%) | 2021 | |
| Operatingrevenue(RMB) | 5,961,477,252.98 | 6,938,342,135.90 | -14.08% | 5,238,262,348.85 |
| Netprofitattributabletothelistedcompany’sshareholders(RMB) | 403,444,254.42 | 963,864,819.43 | -58.14% | 347,609,693.30 |
| Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalgainsandlosses(RMB) | 386,135,437.00 | 795,473,953.21 | -51.46% | 190,492,580.40 |
| Netcashgeneratedfrom/usedinoperatingactivities(RMB) | 854,864,537.42 | 1,422,310,774.26 | -39.90% | 348,137,005.48 |
| Basicearningspershare(RMB/share) | 0.47 | 1.10 | -57.27% | 0.39 |
| Dilutedearningspershare(RMB/share) | 0.42 | 0.95 | -55.79% | 0.36 |
| Weightedaveragereturnonequity(%) | 4.40% | 11.31% | -6.91% | 4.44% |
| 31December2023 | 31December2022 | Changeof31December2023over31December2022(%) | 31December2021 | |
| Totalassets(RMB) | 13,430,286,222.94 | 13,351,097,602.03 | 0.59% | 12,987,221,271.63 |
| Equityattributabletothelistedcompany’sshareholders(RMB) | 9,230,806,905.80 | 9,014,156,872.71 | 2.40% | 7,983,307,400.03 |
Indicatebytickmarkwhetherthelowerofthenetprofitattributabletothelistedcompany’sshareholdersbeforeandafterexceptionalgainsandlosseswasnegativeforthelastthreeaccountingyears,andthelatestindependentauditor’sreportindicatedthattherewasuncertaintyabouttheCompany’sabilitytocontinueasagoingconcern.
□Yes?NoIndicatebytickmarkwhetherthelowerofthenetprofitattributabletothelistedcompany’sshareholdersbeforeandafterexceptionalgainsandlosseswasnegative.
□Yes?No
VIIAccountingDataDifferencesunderChina’sAccountingStandardsforBusinessEnterprises(CAS)andInternationalFinancialReportingStandards(IFRS)andForeignAccountingStandards
1.NetProfitandEquityunderCASandIFRS
□Applicable?NotapplicableNodifferencefortheReportingPeriod.
2.NetProfitandEquityunderCASandForeignAccountingStandards
□Applicable?NotapplicableNodifferencefortheReportingPeriod.
VIIIKeyFinancialInformationbyQuarter
Unit:RMB
| Q1 | Q2 | Q3 | Q4 | |
| Operatingrevenue | 1,378,301,160.57 | 1,462,190,101.90 | 1,502,888,352.91 | 1,618,097,637.60 |
| Netprofitattributabletothelistedcompany’sshareholders | 95,759,162.05 | 125,888,836.10 | 113,464,972.86 | 68,331,283.41 |
| Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalgainsandlosses | 51,332,367.74 | 140,477,494.20 | 110,981,395.05 | 83,344,180.01 |
| Netcashgeneratedfrom/usedinoperatingactivities | -36,789,172.94 | 185,399,389.92 | 12,047,210.33 | 694,207,110.11 |
IndicatebytickmarkwhetheranyofthequarterlyfinancialdatainthetableaboveortheirsummationsdiffersmateriallyfromwhathavebeendisclosedintheCompany’squarterlyorinterimreports.
□Yes?No
IXExceptionalGainsandLosses
?Applicable□Notapplicable
Unit:RMB
| Item | 2023 | 2022 | 2021 | Note |
| Gainorlossondisposalofnon-currentassets(inclusiveofimpairmentallowancewrite-offs) | -9,741,769.37 | -228,367.44 | 50,868,019.96 | |
| Governmentgrantsrecognisedinprofitorloss(exclusiveofthosethatarecloselyrelatedtotheCompany'snormalbusinessoperationsandgiveninaccordancewithdefinedcriteriaandincompliancewithgovernmentpolicies,andhaveacontinuingimpactontheCompany'sprofitorloss) | 45,294,185.95 | 50,298,092.20 | 58,686,874.90 | |
| Gainorlossonfair-valuechangesinfinancialassetsandliabilitiesheldbyanon-financialenterprise,aswellasondisposaloffinancialassetsandliabilities(exclusiveoftheeffectiveportionofhedgesthatisrelatedtothe | -18,190,072.86 | 154,877,757.70 | 77,620,424.02 |
| Company'snormalbusinessoperations) | ||||
| Reversedportionsofimpairmentallowancesforreceivableswhicharetestedindividuallyforimpairment | 163,992.17 | 6,198,745.44 | ||
| Non-operatingincomeandexpenseotherthantheabove | 4,819,447.10 | -1,810,393.39 | -1,700,653.34 | |
| Less:Incometaxeffects | 4,629,001.56 | 33,015,346.77 | 28,885,946.87 | |
| Non-controllinginterestseffects(netoftax) | 407,964.01 | 1,730,876.08 | 5,670,351.21 | |
| Total | 17,308,817.42 | 168,390,866.22 | 157,117,112.90 | -- |
Particularsaboutotheritemsthatmeetthedefinitionofexceptionalgain/loss:
□Applicable?NotapplicableNosuchcasesfortheReportingPeriod.ExplanationofwhytheCompanyreclassifiesasrecurrentanexceptionalgain/lossitemlistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—ExceptionalGain/LossItems:
□Applicable?NotapplicableNosuchcasesfortheReportingPeriod.
PartIIIManagementDiscussionandAnalysis
IIndustryOverviewfortheReportingPeriod
TheCompanyissubjecttothedisclosurerequirementsforlistedcompaniesengagingintextileandapparelasstatedinGuidelineNo.3oftheShenzhenStockExchangeforSelf-regulationofListedCompanies—Industry-specificInformationDisclosure.In2023,Chinesetextileandapparelexportenterprisesfacedthedualpressuresoforderreductionandordertransfer.Ononehand,thedeclineindemandfromkeymarkets,changesintheinternationaltradelandscape,andexchangefluctuationputcontinuouspressureonthetextileandappareltrade,leadingtoanoveralldeclineinChina'stextileandapparelexportvaluefortheyear.AccordingtodatareleasedbytheChinaCustomsExpress,thetotalexportvolumeofthedomestictextilesandapparelreachedUSD293.64billionin2023,representingayear-on-yeardecreaseof8.1%.Ontheotherhand,lookingatthetrendforthewholeyear,influencedbypositivefactorssuchasthecontinuousdigestionofinventoryinoverseasmarketsandsomerecoveryindemandinthesecondhalfoftheyear,theproductionandtradeoftextilesandapparelinChinashowedsignsofrecoveryinthelatterhalfof2023,withtheexportsituationstabilisingandimproving.Thecurrentinternationalpoliticalandeconomicenvironmentisintricatelycomplex.Undertheeffectsoftightenedmonetarypoliciesinmajordevelopedeconomies,globaleconomicandtradeactivitiesfacechallenges,andthepressuretoimprovemarketdemandremainssignificant.Nevertheless,thedomesticeconomyexhibitsremarkableresilience.WithintheframeworkofChina'songoingenhancementofthedomesticmarketenvironment,thetextileindustrycontinuestofindopportunitiesintheconstructionofamodernisedindustrialsystemcharacterisedbyhigh-endcapabilities,intelligence,environmentalsustainability,andintegration.Thisundertakingwillserveasapivotaldrivingforcepropellingthetextileindustrytowardshigh-qualitydevelopment.Atthesametime,Chinacontinuestopromotethejointconstructionofthe"BeltandRoad"initiativeandthedevelopmentofhigh-standardfreetradezones,providingfavourableconditionsforthetextileindustrytofurtherexplorediversifiedinternationalmarketsandbuildaninternationalisedsupplychainsystem.Thisisalsobeneficialforpreventingandmitigatingexternalriskimpacts.
IIPrincipalActivityoftheCompanyintheReportingPeriodTheCompanyissubjecttothedisclosurerequirementsforlistedcompaniesengagingintextileandapparelasstatedinGuidelineNo.3oftheShenzhenStockExchangeforSelf-regulationofListedCompanies—Industry-specificInformationDisclosure.In2023,globalgeopoliticaltensionsintensified,withfrequentlocalconflictsanddisturbances.Theworldeconomystruggledtogainmomentum,withmajordevelopedeconomiesexperiencinghighinflationanddecliningdemand.Textileindustryenterprisesfacedmultiplechallenges,includingchangesintheinternationaltradelandscape,regionalconflicts,andexchangefluctuation.TheCompanysteadfastlyadheredtoa"customer-focused"philosophy,consolidatingitspositioninthedomesticmarketwhileconcurrentlyexpandingintooverseasmarkets.Continuouslyexecutingthestrategiesof"ImprovingQualityandEfficiency"and"OverallInternationalization",theCompanyintensifieditseffortsin"expandingmarket,adjustingstructureandbuildingcapabilities".Fromtheprogressofprojectstothesteadyoperationsofoverseasproductionbases,andfromtheresearchanddevelopmentofnewproductstotheexplorationofnewmarkets,theCompanyremaineddedicatedtohigh-qualitydevelopmentanddisciplinedmanagementpractices.ThisunwaveringcommitmentenabledtheCompanytodeliverexceptionalproductsandservicestobothdomesticandinternationalcustomers.FortheReportingPeriod,theCompanyachievedoperatingrevenueofRMB5,961million,operatingprofitofRMB433million,anetprofitattributabletotheCompanyastheparentofRMB403million,andanetprofitattributabletotheCompanyastheparentbeforeexceptionalgainsandlossesofRMB386million,respectivelydown14.08%,59.99%,58.14%and51.46%whencomparedtolastyear.NochangesoccurredtotheCompany’sprincipaloperations,primaryproducts,businessmodels,ortheprimaryfactorsdriving
theCompany’sgrowthintheReportingPeriod.DuringtheReportingPeriod,theCompanywassuccessivelyselectedasthe"ChineseTextileandApparelBrandof2023withCompetitiveEdge"bytheChinaNationalTextileandApparelCouncil,namedasan"EnterprisewithOutstandingContributiontoTechnologicalAdvancement"bytheChinaCottonTextileIndustryAssociation,andawardedbytheShandongTextileandApparelAssociationthe"SocialResponsibilityContributionAward",amongotherhonours.TheCompanymainlyfocusedonthefollowingaspects:
(I)Enhancecustomerrelationsinanall-aroundwaytoimprovethebusinessqualityandoperationalperformance.DuringtheReportingPeriod,theCompanystrengthenedcommunicationwithcustomers,enhancedcustomerrelationshipmanagement,activelyexpandedintonewmarketsandnewcustomers,graduallyestablishedanintegratedsalesmodel,andcontinuouslyimprovedintegratedservicecapabilities.Itdeepenedtheexecutionofthebigcustomerstrategyandfocusedintensivelyonthebusinessapparelmarket;accuratelygraspedcustomerneeds,optimisedmarketingstrategies,madefulluseofdigitalproductplatforms,andprovidedcustomerswith"one-stop"solutions;leveragedtheoffice'sroleattheforefrontofthemarket,strengthenedtheconstructionofoverseasmarketingteams;setfootonresearchandinnovation,enhancedkeytechnologyandprocessresearch,addedfemaleapparel,printedproducts,andnewmaterialscategories,offeringcustomersproductsandserviceswithgreatercommercialvalue.(II)Deepentheimplementationoftwomajorstrategiestoenhancedeliverycapabilityandoperationalefficiency.DuringtheReportingPeriod,centredonproductionlines,theCompanyprofoundlyadvancedtwomajorstrategies,andcontinuouslyenhanceddeliverycapabilityandoperationalefficiency.TheCompanyestablishedanoverseasoperationmanagementcentre,continuouslyenhancingtheoperationalmanagementofoverseasproductionbases.Theproductioncapacityofdomesticfunctionalfabric,multi-categoryapparelmanufacturing,andotherprojectscontinuedtobereleased.Eachproductionlinecontinuouslystrengtheneditsoperatingawareness,focusedonbusinessstrategicgoals,bolsteredoverallplanningability,andconstantlymetcustomers'differentiatedneeds.Eachproductionlineplayedasignificantroleinresponsibility,continuouslyenhancedthemanagementoftheproductrealisationprocess,ensuringmarket,researchanddevelopment,marketing,manufacturing,procurement,anddeliveryweresynchronised,supportingtheCompany'shigh-qualitydevelopment.(III)Fullyenhancesystematicmanagementtoimprovebusinesssupportandoperationalcapability.DuringtheReportingPeriod,theCompanyfocusedonitscoreoperations,fullyenhanceditssystematicmanagementcapability,strengthenedprofessionalsupport,andprovidedmanagementsupportandserviceguarantees.Centredontheintegrationofbusinessandfinance,itdeepenedcomprehensivebudgetmanagement,continuouslyadvancedorganisationaloptimisation,processoptimisation,andITsupport,andstrengthenedperformancemanagement.Itensuredresourceallocation,acceleratedthebuildingofaninternationaltalentteam,improvedthetrainingandmanagementmechanismsforkeypositions,optimisedincentivemechanisms,andinvigoratedtheorganisation.TheCompanyinitiatedaprojecttoenhancecorporateculture,systematicallyorganising,refining,andupgrading.(IV)ContinuetoenhanceinnovationcapabilitytoconsolidateandexpandcompetitiveadvantagesDuringtheReportingPeriod,theCompanysuccessfullypassedthere-certificationofaNationalHigh-techEnterpriseandpassedtheannualassessmentandperformanceevaluationofinnovativeplatformssuchasthenationalenterprisetechnicalcentre,ShandongProvinceBigDataIndustryInnovationCentre,ShandongProvincialEngineeringTechnologyResearchCentre,andShandongProvinceKeyLaboratoryofEnterprises.ItwononefirstprizeforScientificandTechnologicalProgressfromtheChinaNationalTextileandApparelCouncil,three"TopTenInnovativeProducts"awards,receivedauthorisationfor69patents,including53inventionpatents,participatedintheformulationorrevisionoffiveindustrystandards,obtainedonesoftwarecopyright,andundertookonekeyR&DprojectofShandongProvincein2023.IIICoreCompetitivenessAnalysis
1.TheCompanyhasacomprehensiveverticalindustrialchainandinternationalizedlayout.Itpossessesthewholeindustrialchain
integratingspinning,bleachinganddyeing,neatening,testing,andgarmentmaking,aswellasexcellentqualitycontrolcapabilitiesthroughvariouslinksoftheproductionofhigh-endyarn-dyedfabrics.Inordertoleverageinternationalresources,giveplaytotheadvantageofinternationalizedindustrialdistributionandreinforcetheleadinginternationalstatusinmanufacturingtheyarn-dyedfabricsforshirts,theCompanyhasputinplaceproductionbases,designagency,andmarketserviceofficesoverseas.
2.TheCompanyhasbetterintegratedmanagementcapabilityandhigh-levelmanagementsystemarchitecture.Since1995,theCompanyhassuccessivelypassedthecertificationofISO9001qualitymanagementsystem,ISO14001environmentalmanagementsystem,ISO45001OccupationHealthSafetyManagementSystem,SA8000SocialResponsibilityManagementSystem,TheWorldwideResponsibleApparelProductionStandard(WRAP),SustainableTextileProduction(STeP),GlobalOrganicTextileStandard(GOTS),GlobalRecycleStandard(GRS),HIGG(FEMandFSLM)andChinaNationalAccreditationServiceforConformityAssessment(CNAS),andrealizedtheinternationalization,standardizationandnormalizationofthecorporatemanagement.Inordertomakeoutstandingachievementinitsoperatingmanagement,betterimprovetheCompany’sbusinessperformanceandcapabilities,theCompanyhasintroducedtheGB/T19580CriteriaforPerformanceExcellencestepbystep,setupthe“bigquality”system,promotedthemanagementinnovationandguaranteedthemanagementquality.
3.TheCompanyestablishesitshigh-leveltechnicalcooperationplatformbyvirtueofstrongR&Dcapability.Infact,theCompanyalwaysinsistsontheindependentinnovation,enhancesitstechnicalcooperationandjointproductdevelopmentwithvariousresearchinstitutes,collegesanduniversities,strategicclientsandimportantsuppliersbyrelyingonvarioustechnicalplatformsincludingthenationalenterprisetechnicalcentre,thenationalindustrialdesigncentre,thenationaldemonstrationbaseforintroducingtalents,thenationalpost-doctoralscientificresearchstationandShandongProvincialEngineeringTechnologyResearchCentre.Emphasisingbothcutting-edgetechnologicalreservesandtheinnovationofappliedtechnologies,theCompanycontinuouslystrengthensthedevelopmentofnewproductsorientedtowardsrealizingcommercialvalue.Graduallyenhancingitscapabilityintechnologicalresearchandintegratedproductdevelopment,theCompanycontinuallycontributesmoregreen,low-carbon,andsustainablenewtechnologiesandhigh-qualityproductstotheindustry,creatingmorevalueforcustomersandmaterialisinglow-carbon,green,andsustainabledevelopment.IVCoreBusinessAnalysis
1.Overview
FortheReportingPeriod,theCompanyrecordedoperatingrevenueofRMB5,961million(a14.08%year-on-yeardecrease);costofsalesofRMB4,591million(a10.92%year-on-yeardecrease),sellingexpenseofRMB148million(an8.42%year-on-yearincrease)andadministrativeexpenseofRMB382million(a3.53%year-on-yeardecrease);researchanddevelopmentexpenseofRMB240million(a13.26%year-on-yeardecrease);andnetcashgeneratedfromoperatingactivitiesofRMB855million(a39.90%year-on-yeardecrease).
2.RevenueandCostAnalysis
(1)BreakdownofOperatingRevenue
Unit:RMB
| 2023 | 2022 | Change(%) | |||
| Operatingrevenue | As%oftotaloperatingrevenue(%) | Operatingrevenue | As%oftotaloperatingrevenue(%) | ||
| Total | 5,961,477,252.98 | 100% | 6,938,342,135.90 | 100% | -14.08% |
| Byoperatingdivision | |||||
| Textileandapparel | 5,554,873,179.03 | 93.18% | 6,500,959,077.16 | 93.70% | -14.55% |
| Electricityandsteam | 214,716,930.11 | 3.60% | 219,789,458.76 | 3.16% | -2.31% |
| Others | 191,887,143.84 | 3.22% | 217,593,599.98 | 3.14% | -11.81% |
| Byproductcategory | |||||
| Fabricproducts | 4,224,792,352.66 | 70.87% | 5,141,344,925.82 | 74.10% | -17.83% |
| Apparel | 1,330,080,826.37 | 22.31% | 1,359,614,151.34 | 19.60% | -2.17% |
| Electricityandsteam | 214,716,930.11 | 3.60% | 219,789,458.76 | 3.16% | -2.31% |
| Others | 191,887,143.84 | 3.22% | 217,593,599.98 | 3.14% | -11.81% |
| Byoperatingsegment | |||||
| JapanAndSouthKorea | 363,082,297.41 | 6.09% | 334,445,869.70 | 4.82% | 8.56% |
| SoutheastAsia | 1,691,776,529.18 | 28.38% | 2,356,718,298.83 | 33.96% | -28.21% |
| EuropeandAmerica | 933,632,800.12 | 15.66% | 1,199,472,122.97 | 17.29% | -22.16% |
| Others | 639,996,479.08 | 10.74% | 729,808,402.63 | 10.52% | -12.31% |
| MainlandChina | 2,332,989,147.19 | 39.13% | 2,317,897,441.77 | 33.41% | 0.65% |
| Bysalesmodel | |||||
| Directsales | 5,961,477,252.98 | 100.00% | 6,938,342,135.90 | 100.00% | -14.08% |
(2)OperatingDivision,ProductCategory,OperatingSegmentorSalesModelContributingover10%ofOperatingRevenueorOperatingProfit
□Applicable?Notapplicable
(3)WhetherRevenuefromPhysicalSalesIsHigherthanServiceRevenue
?Yes□No
| Operatingdivision | Item | Unit | 2023 | 2022 | Change(%) |
| Fabric | Unitsales | 0,000meters | 18,092.94 | 22,580.48 | -19.87% |
| Output | 0,000meters | 20,230.04 | 23,634.84 | -14.41% | |
| Inventory | 0,000meters | 4,036.91 | 3,763.43 | 7.27% | |
| Apparel | Unitsales | 0,000pieces | 1,960.07 | 1,889.22 | 3.75% |
| Output | 0,000pieces | 2,006.98 | 1,872.64 | 7.17% | |
| Inventory | 0,000pieces | 201.98 | 138.76 | 45.56% | |
| Electricity | Unitsales | 000KWH | 173,716.42 | 153,637.52 | 13.07% |
| Output | 000KWH | 406,726.09 | 414,202.18 | -1.80% | |
| Inventory | 000KWH | ||||
| Steam | Unitsales | Ton | 268,048.41 | 310,410.00 | -13.65% |
| Output | Ton | 1,041,382.00 | 1,198,469.45 | -13.11% | |
| Inventory | Ton |
Anyover30%YoYmovementsinthedataaboveandwhy:
?Applicable□NotapplicableApparelinventoryincreased45.56%year-on-year,mainlyduetotheincreaseinordersfromnewcustomersattheendof2023,whichhavenotyetbeenshipped.
(4)ExecutionProgressofMajorSignedSalesandPurchaseContractsintheReportingPeriod
□Applicable?Notapplicable
(5)BreakdownofCostofSales
Byoperatingdivisionandproductcategory
Unit:RMB
| Operatingdivision | Item | 2023 | 2022 | Change(%) | ||
| Costofsales | As%oftotalcostofsales(%) | Costofsales | As%oftotalcostofsales(%) | |||
| Textileandapparel | Costofsales | 4,208,891,944.15 | 91.67% | 4,689,861,379.28 | 90.99% | -10.26% |
| Electricityandsteam | Costofsales | 228,107,386.45 | 4.97% | 290,205,024.76 | 5.63% | -21.40% |
| Other | Costofsales | 154,389,584.80 | 3.36% | 174,301,192.86 | 3.38% | -11.42% |
Unit:RMB
| Productcategory | Item | 2023 | 2022 | Change(%) | ||
| Costofsales | As%oftotalcostofsales(%) | Costofsales | As%oftotalcostofsales(%) | |||
| Fabricproducts | Costofsales | 3,219,884,044.35 | 70.13% | 3,698,671,468.56 | 71.76% | -12.94% |
| Apparel | Costofsales | 989,007,899.80 | 21.54% | 991,189,910.72 | 19.23% | -0.22% |
| Electricityandsteam | Costofsales | 228,107,386.45 | 4.97% | 290,205,024.76 | 5.63% | -21.40% |
| Other | Costofsales | 154,389,584.80 | 3.36% | 174,301,192.86 | 3.38% | -11.42% |
Note:
| Product | Period | Rawmaterial | Laborcost | Depreciation | Energy | Manufactureexpenses | Total |
| Fabric | 2023 | 48.13% | 17.66% | 7.10% | 17.59% | 9.52% | 100.00% |
| 2022 | 49.52% | 17.01% | 6.50% | 17.44% | 9.53% | 100.00% | |
| Apparel | 2023 | 59.65% | 26.22% | 2.42% | 1.13% | 10.58% | 100.00% |
| 2022 | 62.67% | 26.46% | 1.90% | 1.08% | 7.89% | 100.00% |
(6)ChangesintheScopeofConsolidatedFinancialStatementsfortheReportingPeriod
□Yes?No
(7)MajorChangestotheBusinessScopeorProductorServiceRangeintheReportingPeriod
□Applicable?Notapplicable
(8)MajorCustomersandSuppliers
Majorcustomers:
| Totalsalestotopfivecustomers(RMB) | 1,054,114,678.79 |
| Totalsalestotopfivecustomersas%oftotalsalesoftheReportingPeriod(%) | 17.68% |
| Totalsalestorelatedpartiesamongtopfivecustomersas%oftotalsalesoftheReportingPeriod(%) | 0.00% |
Informationabouttopfivecustomers:
| No. | Customer | SalesrevenuecontributedfortheReportingPeriod(RMB) | As%oftotalsalesrevenue(%) |
| Total | -- | 1,054,114,678.79 | 17.68% |
Otherinformationaboutmajorcustomers:
□Applicable?NotapplicableMajorsuppliers:
| Totalpurchasesfromtopfivesuppliers(RMB) | 688,378,062.07 |
| Totalpurchasesfromtopfivesuppliersas%oftotalpurchasesoftheReportingPeriod(%) | 15.79% |
| Totalpurchasesfromrelatedpartiesamongtopfivesuppliersas%oftotalpurchasesoftheReportingPeriod(%) | 0.00% |
Informationabouttopfivesuppliers:
| No. | Supplier | PurchaseintheReportingPeriod(RMB) | As%oftotalpurchases(%) |
| Total | -- | 688,378,062.07 | 15.79% |
Otherinformationaboutmajorsuppliers:
□Applicable?Notapplicable
3.Expense
Unit:RMB
| 2023 | 2022 | Change(%) | Reasonforanysignificantchange | |
| Sellingexpense | 148,454,814.21 | 136,929,096.72 | 8.42% | |
| Administrativeexpense | 382,327,532.79 | 396,309,634.39 | -3.53% | |
| Financecosts | 5,448,844.47 | -148,951,129.67 | 103.66% | Decreasednetexchangegain |
| R&Dexpense | 239,775,343.18 | 276,424,812.26 | -13.26% |
4.OtherInformationRequiredbyInformationDisclosureGuideforCompaniesEngagedinTextileandGarmentServices
TheCompanyissubjecttothedisclosurerequirementsforlistedcompaniesengagingintextileandapparelasstatedinGuidelineNo.3oftheShenzhenStockExchangeforSelf-regulationofListedCompanies—Industry-specificInformationDisclosure.
(1)CapacityTheCompany'sowncapacity
| IndustryClassification | Item | 2023 | 2022 |
| Fabric | Totalcapacity(fabric)(10,000meters) | 29,745.00 | 29,430.00 |
| Rateofcapacityutilization | 74% | 80% |
| Plantsunderconstruction | TheCompany'sconvertiblebondfundraisingprojects:The"FunctionalFabricIntelligentEco-parkProject(PhaseI)"withanannualcapacityof35millionmetersofhigh-gradefunctionalfabricsandthe"OverseasProductLineProjectofHigh-gradeFabrics(PhaseI)"wereinprogress. | TheCompany'sconvertiblebondfundraisingprojects:The"FunctionalFabricIntelligentEco-parkProject(PhaseI)"withanannualcapacityof35millionmetersofhigh-gradefunctionalfabricsandthe"OverseasProductLineProjectofHigh-gradeFabrics(PhaseI)"wereinprogress. | |
| Apparel | Totalcapacity(apparel)(10,000pieces) | 2,230.00 | 2,030.00 |
| Rateofcapacityutilization | 84% | 88% | |
| Plantsunderconstruction |
Year-on-yearchangeintherateofcapacityutilizationabove10%
□Yes?NoOverseascapacity?Yes□No
| IndustryClassification | Item | Domestic | Overseas |
| Fabric | Percentageofcapacity | 80% | 20% |
| Capacitylayout | MainlyinShandongProvince | MainlyinVietnam | |
| Rateofcapacityutilization | 73% | 81% | |
| Apparel | Percentageofcapacity | 40% | 60% |
| Capacitylayout | MainlyinShandongProvince | MainlyinVietnam,Cambodia,andMyanmar | |
| Rateofcapacityutilization | 81% | 86% |
TheCompany’sexpansionplanondevelopingoverseasproductioncapacityTheCompanyisinvestingintheconstructionofoverseasproductionbases,whicharenowintrialproduction.
(2)SalesmodelandchannelsProductsaleschannelsandoperationmethodsa.SalesmodelTheCompanyadoptedtheorder-basedsalesmodel.Withtheself-ownedtrademark"Luthai"foritsfabricsales,itprovidedcustomerswithdevelopmentanddesignplansbasedoncustomerneeds,fabricsandpatternsleadingthemarket,fashionandtechnology,functionsandenvironmentalprotection.Inaddition,itengagedinbrandoperationofspotfabriconthenewretaile-commerceplatform.Shirtsweremainlymadeaccordingtotheordersofcustomersathomeandabroad,andsoldbybrandowners.TheCompany'sself-ownedbrandwasoperatedthroughself-ownedexclusiveshopssuchasLuThaiExhibitionandSalesPavilion,countersofaffiliatedstoresinmallsande-networkingmarketing.Meanwhile,theCompanycouldprovidecustomerswithhigh-endcustomizedshirtsandcustomizedbusinessweartomeetthemarketdemandofthehigh-endserviceindustry.b.Saleschannels
Directsales:TheheadquartersoftheCompanycarriedoutdirectinvestmentsandoperation,andoperatedandmanagedabrandattheheadquartersorbysettingupabranchcompanyinotherregionstoconcludetransactionswithcustomersoffline.Onlinesales:Throughself-developedplatformsandlargethird-partyonlineshoppingplatforms,theCompanyconcludedtransactionswithcustomersontheInternetanddeliveredgoodstocustomersbyexpressdeliveryservices.
Unit:RMB
| Saleschannels | Operatingrevenue | Costofsales | Grossprofitmargin | YoYchangeinoperatingrevenue | YoYchangeincostofsales | YoYchangeingrossprofitmargin |
| Onlinesales | 3,326,275.46 | 1,490,476.55 | 55.19% | 2.49% | 20.81% | -6.79% |
| Directsales | 4,235,586,777.85 | 3,222,625,639.20 | 23.92% | -17.73% | -12.91% | -4.20% |
| OEM/ODM | 1,315,960,125.72 | 984,775,828.40 | 25.17% | -2.47% | -0.35% | -1.60% |
| Total | 5,554,873,179.03 | 4,208,891,944.15 | 24.23% | -14.55% | -10.26% | -3.63% |
(3)Franchiseanddistribution
Franchiseesanddistributorsrecordedmorethan30%ofsalesrevenue
□Yes?No
(4)Onlinesales
Onlinesalesrecordedmorethan30%ofsalesrevenue
□Yes?NoSelf-developedsalesplatforms?Yes□No
| Startofoperation | 30March2009 |
| Numberofregisteredusers | 150,000 |
| Averagenumberofactivemonthlyusers(AMU) | 3,000 |
| Returnrateofmainbrands | 2.20% |
| Returnrateofmaintypes | 2.20% |
Cooperationwiththird-partysalesplatforms?Yes□NoOnlinesaleschannelsopenedorclosedbytheCompany
□Applicable?NotapplicableImpactontheCompanyinthecurrentperiodandsubsequentperiods:
Notapplicable.
(5)Agencyoperationmodel
Agencyoperationmodelinvolved
□Yes?No
(6)Inventory
Inventory
| Mainproducts | Daysofturnoverofinventories | Quantityofinventory | Inventoryage | Year-on-yearchangeininventorybalance | Reason |
| Fabric(10,000meters) | 85 | 3,385.123 | Within1year | 10.18% | |
| Fabric(10,000meters) | 651.784 | Over1year | -5.69% | ||
| Shirts(10,000pieces) | 27 | 118.039 | Within1year | 21.43% | |
| Shirts(10,000pieces) | 17.649 | Over1year | -3.19% |
Inventoryvaluationallowances:
| Item | 2023.12.31 | ||
| Grossamount | Valuationallowanceorprovisionforimpairmentoncontractperformancecost | Carryingamount | |
| Rawmaterials | 961,742,257.63 | 48,846,493.37 | 912,895,764.26 |
| Goodsinprocess | 504,407,562.92 | 11,183,192.80 | 493,224,370.12 |
| Productsonhand | 886,717,966.10 | 181,209,030.54 | 705,508,935.56 |
| Commissionedmaterials | 12,510,504.76 | 12,510,504.76 | |
| Total | 2,365,378,291.41 | 241,238,716.71 | 2,124,139,574.70 |
(7)Brandbuilding
Productionandsalesofbrandclothing,apparelandhometextileproducts?Yes□NoSelf-ownedbrands:
| Brandname | Trademarkname | Mainproducttypes | Characterist | Targetconsumer | Pricezoneofmainproducts | Mainsalesareas | Citylevels |
| ics | group | ||||||
| LTGRFF | LTGRFF | Shirtsandsuits | Classicbusinessattire | Businesspeople | RMB500-3000 | EastChina,SouthChinaandSouthwestChina | Provincialcapitalcitiesandotherprefecture-levelcities |
Trademarkownershipdisputes
□Applicable?Notapplicable
(8)Otherinformation
Engagedinbusinessrelatedtoappareldesign
□Yes?NoWhethertheCompanyheldmeetingsfortheplacementoforders
□Yes?No
5.R&DInvestments
?Applicable□Notapplicable
| NamesofmainR&Dprojects | Goalsofprojects | Progressesofprojects | Intendedgoals | EstimatedimpactonfuturedevelopmentoftheCompany |
| Researchanddevelopmentofkeytechnologyforfunctionaldyedfabricswithwetcross-linkingironing-freefinishing. | Thisprojectisaimedtoconductiterativeupgradingofexistingironing-freefabricprocessingtechnology,enhancefabricqualityandmeetcustomerneeds. | Cotton/lyocellblendsuperironing-freefabricandhighironing-freepost-bakingfabrichavecompletedtrialweavingattestation;Highthreadcounthighironing-freefabric,ecoironing-freefabric,functionalfinishingironing-freefabric,andhighwhitenessironing-freefabrichavereceivedbuckorders. | TheCompanyaimstoachievehighironing-freestabilityofgrade3.8withitscotton/lyocellsuperironing-freefabricandall-cotton,polyester-cottonseries;andtargetsattainingironing-freestabilityofgrade3.5orhigherwithitsECO-F!t,formaldehyde-free,andotherecoironing-freefabrics,aswellasfunctionalironing-freefabrics. | ThisprojectisexpectedtoenhancetheperformancequalityoftheCompany'sflagshipproductsandstrengthencorecompetitiveness. |
| Researchanddevelopmentofmulti-componentcool-feel,moisture-absorbing,low-carbonecologicaldyeingandfinishingtechnologyfortextiles. | Thisprojectisaimedtoactivelyexplorenewtechnologiesforgreendyeingandfinishingprocessingandreduceenvironmentalpollution. | Ultrasonicandspraytechnologieshavesuccessfullyundergoneexperimentalattestationandarenowadvancingintotheequipmentmodificationandprocurementphase,supportedbythegenerationoffeasibilitystudyreports.Concurrently,attestationprocessesareunderwayforozonetreatmentandothertechnologies. | TheCompanyaimstoresearchmorethanfivegreenecologicalfinishingtechnologies. | ThisprojectisexpectedtomaintaintheCompany'sleadingtechnologicallevelintheindustry,andleadtheindustrydevelopment. |
| Researchanddevelopmentofefficient, | Thisprojectisaimedtousespecialprocessesandenvironmentally | Recycledfibrehascompletedpreparationandprocessoptimisation,outputted | TheCompanyaimstodevelopfour-waystretchfabrics,wherethefabric'swarpelasticity | Thisprojectisexpectedtomeetcustomerneeds |
| energy-saving,stretchcore-spunyarn,usingrecycledfibrepreparationtechnology. | friendlymaterialstoproduceefficient,energy-saving,environmentallyfriendlyproductsthatalignwithmarketconsumptionconceptsandleadmarkettrends. | differentvarietieswithdifferentsettingtemperaturestoimproveelasticitystability. | reaches12.5%andabove,andreducewarpdirectioncolourdifferenceandbubblingtoimprovethereproducibilityoftrialweavingforbulkgoods. | andexpandmarketshare. |
| Researchonkeytechnologiesandcompleteequipmentsystemsforpolyesterfabricspotdyeingwithoutwaterwashing. | Thisprojectisaimedtosaveenergyandreduceconsumption,reducecarbonemissions,andgivetheproductauniquestylewithhugemarketpotentialandbroadprospects. | Thetransformationofnewlypurchasedrelatedmachineryandequipmenthasbeencompleted,andthepolyester-relateddyeingtechnologyhasbeenoptimised,enablingmassproduction. | Thistypeofordercontinuestogrowintoanewcoreproduct. | ThisprojectisexpectedtoenhancetheCompany'sdyeingtechnologylevel,enrichtheCompany'svarietyofcasualwearfabrics,andstrengthentheCompany'scompetitiveness. |
DetailsaboutR&Dpersonnel:
| 2023 | 2022 | Change(%) | |
| NumberofR&Dpersonnel | 1,396 | 1,474 | -5.29% |
| R&Dpersonnelas%oftotalemployees | 13.26% | 13.17% | 0.09% |
| EducationalbackgroundofR&Dpersonnel | |||
| Bachelor’sdegree | 196 | 200 | -2.00% |
| Master’sdegree | 28 | 29 | -3.45% |
| AgestructureofR&Dpersonnel | |||
| Below30 | 166 | 184 | -9.78% |
| 30~40 | 847 | 964 | -12.14% |
| Above40 | 383 | 326 | 17.48% |
DetailsaboutR&Dinvestments:
| 2023 | 2022 | Change(%) | |
| R&Dinvestments(RMB) | 239,775,343.18 | 276,424,812.26 | -13.26% |
| R&Dinvestmentsas%ofoperatingrevenue | 4.02% | 3.98% | 0.04% |
| CapitalizedR&Dinvestments(RMB) | 0.00 | 0.00 | 0.00% |
| CapitalizedR&Dinvestmentsas%oftotalR&Dinvestments | 0.00% | 0.00% | 0.00% |
ReasonsforanysignificantchangetothecompositionofR&Dpersonnelandtheimpact:
□Applicable?NotapplicableReasonsforanysignificantYoYchangeinthepercentageofR&Dexpenseinoperatingrevenue:
□Applicable?NotapplicableReasonforanysharpvariationinthepercentageofcapitalizedR&Dexpenseandrationale:
□Applicable?Notapplicable
6.CashFlows
Unit:RMB
| Item | 2023 | 2022 | Change(%) |
| Subtotalofcashgeneratedfrom | 5,733,287,497.87 | 7,218,619,463.98 | -20.58% |
| operatingactivities | |||
| Subtotalofcashusedinoperatingactivities | 4,878,422,960.45 | 5,796,308,689.72 | -15.84% |
| Netcashgeneratedfrom/usedinoperatingactivities | 854,864,537.42 | 1,422,310,774.26 | -39.90% |
| Subtotalofcashgeneratedfrominvestingactivities | 9,682,671,841.39 | 264,146,692.28 | 3,565.64% |
| Subtotalofcashusedininvestingactivities | 10,635,911,372.48 | 981,802,690.70 | 983.30% |
| Netcashgeneratedfrom/usedininvestingactivities | -953,239,531.09 | -717,655,998.42 | -32.83% |
| Subtotalofcashgeneratedfromfinancingactivities | 1,289,724,006.83 | 1,345,521,524.75 | -4.15% |
| Subtotalofcashusedinfinancingactivities | 1,677,384,015.94 | 2,340,048,516.23 | -28.32% |
| Netcashgeneratedfrom/usedinfinancingactivities | -387,660,009.11 | -994,526,991.48 | 61.02% |
| Netincreaseincashandcashequivalents | -469,281,964.23 | -147,109,614.73 | -219.00% |
Explanationofwhyanyofthedataabovevariessignificantly:
?Applicable□NotapplicableDuringtheReportingPeriod,netcashgeneratedfromoperatingactivitiesdecreased39.90%yearonyear,primarilydrivenbythedecreasedcashreceivedfromsaleofgoods;subtotalofcashgeneratedfrominvestingactivitiesincreased3565.64%yearonyear,primarilydrivenbytheincreaseinwithdrawnwealthmanagementinvestments;subtotalofcashusedininvestingactivitiesincreased983.30%yearonyear,primarilydrivenbytheincreasedpaymentstoacquirewealthmanagementinvestments;netcashgeneratedfrominvestingactivitiesdecreased32.83%yearonyear,primarilydrivenbytheincreasedinvestmentintheoverseashigh-endfabricproductionlineproject;netcashgeneratedfromfinancingactivitiesincreased61.02%yearonyear,primarilydrivenbythedecreaseddebtrepayments;andnetincreaseincashandcashequivalentsdecreased219.00%yearonyear,primarilydrivenbythedecreasednetcashgeneratedfromoperatingactivities.ReasonforanybigdifferencebetweenthenetoperatingcashflowandthenetprofitforthisReportingPeriod
□Applicable?NotapplicableVAnalysisofNon-CoreBusinesses?Applicable□Notapplicable
Unit:RMB
| Amount | As%oftotalprofit | Source/Reason | Recurrentornot | |
| Returnoninvestment | 39,364,608.46 | 9.00% | Returnonheld-for-tradingfinancialassets | Not |
| Gain/lossonchangesinfairvalue | -65,020,725.14 | -14.87% | Lossonchangesinfairvalueofheld-for-tradingfinancialassetsandliabilities | Not |
| Assetimpairments | -105,876,786.52 | -24.22% | Inventoryvaluationallowances | Not |
| Non-operatingincome | 9,347,696.19 | 2.14% | Incomeofnon-operatingcompensation,etc | Not |
| Non-operatingexpense | 5,146,681.99 | 1.18% | Lossondestructionandretirementofnon-operatingnon-currentassets,etc. | Not |
VIAnalysisofAssetsandLiabilities
1.SignificantChangesinAssetComposition
Unit:RMB
| 31December2023 | 1January2023 | Changeinpercentage(%) | Reasonforanysignificantchange | |||
| Amount | As%oftotalassets | Amount | As%oftotalassets | |||
| Monetaryassets | 1,558,252,048.03 | 11.60% | 2,067,768,253.97 | 15.49% | -3.89% | |
| Accountsreceivable | 826,467,684.78 | 6.15% | 660,427,526.19 | 4.95% | 1.20% | |
| Inventories | 2,124,139,574.70 | 15.82% | 2,107,849,708.33 | 15.79% | 0.03% | |
| Investmentproperty | 19,578,175.93 | 0.15% | 20,460,935.21 | 0.15% | 0.00% | |
| Long-termequityinvestments | 143,537,479.77 | 1.07% | 184,168,625.69 | 1.38% | -0.31% | |
| Fixedassets | 5,597,692,505.07 | 41.68% | 5,807,847,850.67 | 43.50% | -1.82% | |
| Constructioninprogress | 868,496,878.41 | 6.47% | 199,943,501.73 | 1.50% | 4.97% | |
| Right-of-useassets | 463,226,419.21 | 3.45% | 481,420,505.31 | 3.61% | -0.16% | |
| Short-termborrowings | 580,704,772.27 | 4.32% | 518,946,415.96 | 3.89% | 0.43% | |
| Contractliabilities | 188,073,335.89 | 1.40% | 206,879,672.53 | 1.55% | -0.15% | |
| Long-termborrowings | 259,992,974.40 | 1.94% | 186,431,096.24 | 1.40% | 0.54% | |
| Leaseliabilities | 86,580,224.41 | 0.64% | 98,501,303.83 | 0.74% | -0.10% | |
Indicatewhetheroverseasassetsaccountforalargeproportionofthetotalassets.?Applicable□Notapplicable
| Asset | Source | Assetvalue(RMB) | Location | Managementmodel | Controlmeasurestoprotectassetsafety | Returngenerated(RMB) | As%oftheCompany’sequity | Materialimpairmentrisk(yes/no) |
| HongKongcompany | Incorporated | 226,227,839.34 | HongKong | Marketing | MainmanagementpersonnelsentbytheCompanyastheparent | 14,786,998.49 | 2.35% | No |
| Americancompany | Incorporated | 1,048,422.90 | NewYork | Marketing | MainmanagementpersonnelsentbytheCompanyastheparent | -607,861.01 | 0.01% | No |
| Overseasproductionbases | Incorporated | 4,395,349,636.55 | SoutheastAsia | Manufacturing | MainmanagementpersonnelsentbytheCompanyastheparent | 129,414,556.53 | 45.70% | No |
2.AssetsandLiabilitiesatFairValue
?Applicable□Notapplicable
Unit:RMB
| Item | Beginningamount | Gain/lossonfair-valuechangesintheReportingPeriod | Cumulativefair-valuechangesrecordedinequity | ImpairmentallowancefortheReportingPeriod | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Otherchange | Endingamount |
| Financialassets | ||||||||
| 1.Held-for-tradingfinancialassets(excludingderivativefinancialassets) | 239,522,650.65 | -1,222,946.07 | 9,871,689,747.48 | 9,644,480,208.20 | 248,030,000.00 | 713,539,243.86 | ||
| 2.Derivativefinancialassets | 28,172,508.83 | -20,958,877.30 | 7,521,532.36 | 4,565,888.86 | 10,261,031.53 | |||
| 5.Othernon-currentfinancialassets | 337,110,000.00 | -330,000.00 | -248,030,000.00 | 88,750,000.00 | ||||
| Subtotaloffinancialassets | 604,805,159.48 | -22,511,823.37 | 9,879,211,279.84 | 9,649,046,097.06 | 812,550,275.39 | |||
| Others | 11,208,304.78 | -88,118.79 | 7,128,019.77 | 18,248,205.76 | ||||
| Totaloftheabove | 616,013,464.26 | -22,511,823.37 | -88,118.79 | 9,879,211,279.84 | 9,649,046,097.06 | 7,128,019.77 | 830,798,481.15 | |
| Financialliabilities | 4,276,929.70 | -42,508,901.77 | 4,645,000.00 | 4,645,000.00 | 46,785,831.47 | |||
Contentofotherchange:
Changesinaccountsreceivablefinancing.SignificantchangestothemeasurementattributesofthemajorassetsintheReportingPeriod:
□Yes?No
3.RestrictedAssetRightsasatthePeriod-End
Fordetails,seePartX.VII.22.AssetswithrestrictedownershipandusingrightinthisReport.VIIInvestmentsMade
1.TotalInvestmentAmount
□Applicable?Notapplicable
2.MajorEquityInvestmentsMadeintheReportingPeriod
□Applicable?Notapplicable
3.MajorNon-EquityInvestmentsOngoingintheReportingPeriod
□Applicable?Notapplicable
4.FinancialInvestments
(1)SecuritiesInvestments
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
(2)InvestmentsinDerivativeFinancialInstruments
?Applicable□Notapplicable
1)DerivativeInvestmentsforHedgingPurposesduringtheReportingPeriod
?Applicable□Notapplicable
Unit:RMB'0,000
| Typeofderivative | Initialinvestmentamount | Beginningamount | Gain/lossonfair-valuechangesintheReportingPeriod | Cumulativefair-valuechangesrecordedinequity | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Endingamount | ProportionofclosinginvestmentamountintheCompany’sendingnetassets |
| Foreignexchangeoption | 256,788.86 | 148,156.5 | -2,398.55 | 0 | 108,632.36 | 200,388.86 | 56,400 | 6.11% |
| Total | 256,788.86 | 148,156.5 | -2,398.55 | 0 | 108,632.36 | 200,388.86 | 56,400 | 6.11% |
| WhethersignificantchangesoccurredtotheCompany’saccountingpolicyandspecificaccountingprinciplesofderivativesintheReportingPeriodcomparedtothepreviousReportingPeriod | Nosignificantchanges | |||||||
| Actualgain/lossintheReportingPeriod | 1.Asof31December2023,theCompanyheld11unduefinancialderivativescontracts,totalingUSD94million,allofwhichwereforexoptioncontracts.2.FromJanuarytoDecember2023,thetotalamountofallduefinancialderivativesoftheCompanywasequivalenttoUSD298millionwhichwereallimplementedbasedoncontracts.Allthesefinancialderivativeswereforexoptioncontracts,ofwhichUSD166millionwassettledwhileUSD132milliondidnotmeetsettlementconditions,generatinggainsofRMB10.9815million. | |||||||
| Effectivenes | TheCompanyconductsforeignexchange(FX)derivativetransactionswiththeintentionofhedging.Specifically,the | |||||||
| sofhedges | businessiscarriedouttofixcosts,avoidexchangeraterisksandimproveresistanceagainstFXratefluctuations.Asaresult,theCompanyhasgainedbettercapabilitiesofavoidingandpreventingtherisksofFXratefluctuations,andthefinancialrobustnessoftheCompanyhasbeenenhanced. |
| Capitalsourceforderivativeinvestment | TheCompany’sownmoney |
| AnalysisonrisksandcontrolmeasuresofderivativeproductsheldintheReportingPeriod(includingbutnotlimitedtomarketrisk,liquidityrisk,creditrisk,operationrisk,lawrisk,etc.) | TheCompanyconductedderivativesproductstransactioninorderforhedging.Andtheforwardsettlementhedgingwasoperatedbyinstallments,withtherelevantamountnotmorethantheplannedderivativesproductstransactions.Andallderivativesproductstransactionwaszero-deposit.Meanwhile,theCompanyhadacompleteriskcontrolsystemforsufficientanalysisandpreventionofpossibleriskssuchasmarketrisk,liquidityriskandcreditrisk,operationriskandriskoflawsandregulation.1.Marketrisk:Whentheinternationalanddomesticeconomicsituationschange,thecorrespondingchangesinexchangeratesandinterestratesmayhaveanadverseimpactonthefinancialderivativetransactionsoftheCompany.Precautions:TheCompanychoosesfinancialinstrumentswithsimplestructures,highliquidityandcontrollableriskandstrictlycontrolsthescaleofderivativetransactions,performingthembystagesandinbatches.Meanssuchasextensionandbalancesettlementcanbeadoptedtoensurecontractperformanceafterthecontractexpires.2.Liquidityriskandcreditrisk:CreditriskariseswhentheCompanyorcounterpartiesintransactionscouldn’tperformcontractsduenow,toliquidityorotherfactorsthatresultinfurthereconomicloss.Precautions:Thederivativetransactionscanonlybedonewithfinancialinstitutionsqualifiedforderivativetransactions,asauthorizedbyrelevantnationalauthoritiesorfinancialorforeignexchangeauthoritiesinthecountryorregionwheretheCompanyoperates.Derivativetransactionswithotherinstitutionsorindividualsarenotallowedsoastocontrolrelatedriskconcerningcounterparties.3.Internalriskcontrol:Derivativetransactionsarehighlyspecializedandcomplex.Therefore,thereisariskoflossinderivativetransactionsduetotheimperfectinternalcontrolsystemwhenbusinessisperformed.Precautions:TheCompanyshouldstrictlyimplementManagementPolicyforInvestmentsinSecuritiesandDerivativeTransactionsofLuThaiTextileCo.,Ltd.,continuouslyoptimizethebusinessoperationprocessandauthorizationmanagementsystem,strengthenprofessionalethicseducationandbusinesstrainingforrelevantpersonnel,clarifyjobresponsibilities,engageinderivativetransactionbusinessstrictlywithinthescopeofauthorization,andestablishatimelyreportingsystemforabnormalconditionstoavoidoperationalrisks.4.Riskoflawsandregulation:DerivativetransactionsoftheCompanymustbestrictlyincompliancewithrelevantnationallawsandregulations.Otherwise,signedcontracts,commitmentsandotherlegaldocumentsmayentailcomplianceriskandregulatoryriskintermsofeffectivenessandenforceability.Precautions:TheCompanyshouldstrengthenthesupervisionandinspectionofthestandardizationofderivativetransactions,theeffectivenessofinternalcontrolmechanism,andtheauthenticityofinformationdisclosuretoavoidpossiblelegalrisks.TheCompanyhasfulfilledrelevantapprovalproceduresforitsderivativetransactionsbusiness,whichisinlinewiththerelevantnationallaws,regulations,theArticlesofAssociation,theManagementRulesforSecuritiesInvestmentsandDerivativeTradingofLuThaiTextileCo.,Ltd.,theProposalontheCompany'sDerivativeTransactionPlandeliberatedandadoptedatthe33rdmeetingofthe9thsessionoftheBoardofDirectorsheldon24May2022,andtheProposalontheCompany'sDerivativeTransactionPlandeliberatedandadoptedattheninthmeetingofthe10thsessionoftheBoardofDirectorsheldon26May2023,andfulfilledtherelevantinformationdisclosureobligations. |
| ChangesofmarketpricesorfairvaluesintheReportingPeriodoftheinvestedderivatives.Andtheanalysisonthefairvalueofthederivativesshouldincludethespecificusemethodsandtherelevantassumptionsandparameters. | InaccordancewiththerelevantprovisionsandguidelinesoftheAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstrumentsandtheAccountingStandardsforBusinessEnterprisesNo.37-PresentationofFinancialInstrumentsissuedbytheMinistryofFinance,theCompanytooktherelevantaccountingmeasuresforitsbusinessofFXderivativetransactionstoreflecttherelevantitemsinthebalancesheetandtheincomestatement.DuringtheReportingPeriod,theCompanydeterminedthefairvalueofFXoptionsbasedonthebank’sforwardoptionquotationsattheendoftheperiod. |
| Lawsuit(ifapplicable) | N/A |
| Disclosuredateofboardofdirectorsannouncementonapprovalofderivativeinvestment(ifany) | 25May2022 |
| 27May2023 | |
| SpecificopinionfromindependentdirectorsontheCompany’sderivativesinvestmentandriskcontrol | TheCompany’sindependentdirectorshaveissuedthefollowingprofessionaladviceontheCompany'sderivativetransactionbusiness:WebelievethattheCompany'sforeignexchangederivativetransactionbusinessisperformedontheconditionofensuringnormaloperations.Transactionsusingitsownfundsarebeneficialtoavoidingtheriskofexchangeratefluctuations,andareaneffectivetooltohedgeexchangeraterisk.Bystrengtheninginternalcontrol,implementingstop-lossandriskpreventionmeasures,theCompanycanimproveitsabilitytoresistexchangeratefluctuationsandimproveitsmanagementlevel.ThederivativetransactionplanproposedbytheBoardofDirectorsisfeasible,necessary,andtherisksaremanageable.ThereisnodamagetotheinterestsoftheCompanyandalltheshareholders. |
2)DerivativeInvestmentsforSpeculativePurposesduringtheReportingPeriod
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
5.UseofFundsRaised?Applicable□Notapplicable
(1)OverallUseofFundsRaised?Applicable□Notapplicable
Unit:RMB’0,000
| Raisingyear | Raisingmanner | Totalofraisedcapital | Netproceeds | Totalofraisedcapitalusedinthisperiod | Cumulativeamountofraisedcapitalused | Totalofraisedcapitalwhichpurposeischangedinthereportperiod | Cumulativeamountofraisedcapitalwhichpurposeischanged | Ratioofcumulativeamountwhichpurposeischanged | Totalofraisedcapitalunused | Purposeanddirectionofraisedcapitalunused | Amountofraisedcapitalunusedfortwoyears |
| 2020 | Convertiblebonds | 140,000 | 138,546 | 42,543.78 | 134,497.84 | 26,371.58 | 51,371.58 | 36.69% | 9,656.22 | By31December2023,RMB46.5622millionintheunusedraisedcapitalwasdepositedintheraisedcapitalaccount,and | 0 |
| RMB50millionwasusedforcashmanagement. | |||||||||||
| Total | -- | 140,000 | 138,546 | 42,543.78 | 134,497.84 | 26,371.58 | 51,371.58 | 36.69% | 9,656.22 | -- | 0 |
| Generalusesituationofraisedcapital | |||||||||||
| (I)AmountofactualraisedcapitalandarrivaldateUponapprovalbyChinaSecuritiesRegulatoryCommissioninthedocument“ZJXK[2020]299”,theCompanypublicallyissued14,000,000convertiblebondson9April2020atparvalueRMB100,theissuedamountwasRMB1.4billion,andtheCompanyactuallyreceivedtheamountofraisedcapitalRMB1.388billionafterdeductedtheunderwritingfeeRMB12million.TheaboveamountwasremittedincashinRMB.Afterdeductedlegalfee,accountantfee,creditratingfee,informationdisclosurefee,issuingcommissionandothercostsRMB2.54millionintotalfromtheaboveactuallyraisedcapital,thenetamountofraisedcapitalwasRMB1385.46million,whichenteredtheaccounton15April2020,andGrantThorntonInternationalLtd(SpecialGeneralPartnership)issuedthecapitalverificationreportwithreferenceNo.GrantThorntonVerification[2020]371ZC0090foritafterverification.(II)UsesituationandbalanceofraisedcapitalAsat31December2023,theCompanydirectlyinvestedRMB1,344.9784millionintotalfromtheraisedcapitalforitsraisedcapitalinvestmentprojects.TheunusedamountwasRMB96.5622million. | |||||||||||
(2)CommitmentsonProjectswithFundsRaised?Applicable□Notapplicable
Unit:RMB’0,000
| Committedinvestmentprojectsandusedirectionofoverraisedcapital | Whethertheprojectsarechanged(includingpartiallychangedprojects) | Totalofcommittedinvestmentofraisedcapital | Totalinvestmentaftermodification(1) | Amountinvestedinthisreportperiod | Cumulativeinvestmentamountbytheendofperiod(2) | Investmentprogressbytheendofperiod(3)＝(2)/(1) | Datewhentheprojectreachedtheintendedavailablestatus | Benefitrealizedinthisreportperiod | Whetherreachedtheexpectedbenefit | Whetherprojectfeasibilitychangedsignificantly |
| Committedinvestmentprojects | ||||||||||
| Functionalfabricsmarteco-parkproject(Phase1) | Yes | 85,000 | 58,628.42 | 1,188.48 | 58,628.42 | 100.00% | 31December2024 | 0 | N/A | No |
| Overseashigh-endfabricproductlineproject(PhaseI) | Yes | 25,000 | 34,000 | 25,272.9 | 30,981.43 | 91.12% | 31December2024 | 0 | N/A | No |
| Supplementworkingcapital | Yes | 28,800 | 46,171.58 | 16,082.4 | 44,887.99 | 97.22% | 0 | N/A | No | |
| Subtotalofcommittedinvestmentprojects | -- | 138,800 | 138,800 | 42,543.78 | 134,497.84 | -- | -- | 0 | -- | -- |
| Usedirectionofoverraisedcapital | ||||||||||
| N/A | ||||||||||
| Repaymentofbankloans | -- | 0 | 0 | 0 | 0 | 0.00% | -- | -- | -- | -- |
| (ifany) | ||||||||||
| Supplementworkingcapital(ifany) | -- | 0 | 0 | 0 | 0 | 0.00% | -- | -- | -- | -- |
| Subtotalofusedirectorofoverraisedcapital | -- | 0 | 0 | 0 | 0 | -- | -- | -- | -- | |
| Total | -- | 138,800 | 138,800 | 42,543.78 | 134,497.84 | -- | -- | 0 | -- | -- |
| Explainprojectbyprojectsituationandreasonsthatitdidnotreachtheplannedprogressorexpectedreturn(includingreasonforinputting“N/A”for“Whetherreachedtheexpectedbenefit”) | Thefunctionalfabricsmarteco-parkproject(Phase1)iscurrentlyinthetechnologyramp-upstage,andhasnotyetformedalarge-scaleproductionorachievedtheexpectedrevenue. | |||||||||
| Noteforsignificantchangeofprojectfeasibility | N/A | |||||||||
| Amount,purposeanduseprogressofoverraisedcapital | N/A | |||||||||
| Changeofimplementationsiteofcapitalraisingproject | N/A | |||||||||
| Adjustmentofimplementationmodeofcapitalraisingproject | N/A | |||||||||
| Advanceinvestmentanddisplacementofcapitalraisingproject | Applicable | |||||||||
| By30April2020,thetotalamountofdisplacedcapitalwasRMB191.4288million,includingtheamountRMB189.8388millioninvestedintheprojectwiththeself-raisedcapitaloftheCompanyinadvance,andpaymentofissuingcostRMB1.59millionwithitsself-raisedcapital. | ||||||||||
| Temporarysupplementtoworkingcapitalwithunusedraisedcapital | N/A |
| Balanceofraisedcapitalafterimplementofprojectandrelevantreasons | N/A |
| Purposeandusedirectionofunusedraisedcapital | By31December2023,RMB46.5622millionintheunusedraisedcapitalwasdepositedintheraisedcapitalaccount,andRMB50millionwasusedforcashmanagement. |
| Problemsexistinginuseandinformationdisclosureofraisedcapitalorothersituation | None |
(3)ChangesinProjectswithFundsRaised?Applicable□Notapplicable
Unit:RMB’0,000
| Itemsafterchanges | Correspondingoriginalcommitteditems | Amountofplannedfundsinvestedafterchanges(1) | ActualinvestmentamountintheReportingPeriod | Accumulativeinvestmentamountastheperiod-end(2) | Investmentscheduleastheperiod-end(3)=(2)/(1) | Dateofreachingintendeduseoftheproject | RealizedincomeintheReportingPeriod | Whetherreachedanticipatedincome | Whetheroccurredsignificantchangesinprojectfeasibility |
| Overseashigh-endfabricproductionlineproject(PhaseI) | High-endprintinganddyeingfabricproductionlineproject,functionalfabricsmarteco-parkproject | 34,000 | 25,272.9 | 30,981.43 | 91.12% | 31December2024 | 0 | N/A | No |
| Total | -- | 34,000 | 25,272.9 | 30,981.43 | -- | -- | 0 | -- | -- |
| Notesofreasonsforchanges,decision-makingproceduresandinformationdisclosure(byspecificitems) | InaccordancewiththeCompany'sglobalstrategiclayoutandmarketdemand,theCompanyplannedtoadjustitscapacitystructure.1.On9June2022,thesecondextraordinarygeneralmeetingandthefirstbondholders'meetingof2022deliberatedandadoptedtheProposalonChangingthePurposeofPartialRaisedCapitalUnused.Theaimwastoterminatethe"High-endprintinganddyeingfabricproductionlineproject"andleveragetheraisedcapitalofthisprojectofRMB250millionforconstructionofoverseashigh-endfabricproductionlineproject(PhaseI),disclosedon10June2022onthecninfowebsite("www.cninfo.com.cn").2.On25September2023,thesecondextraordinarygeneralmeetingandthefirstbondholders' | ||||||||
| meetingof2023deliberatedandadoptedtheProposalonChangingthePurposeofPartialRaisedCapitalUnused.TheCompanydecidedtorepurposedtheremainingraisedfundsofthe“functionalfabricsmarteco-parkproject(PhaseI)implementedbyitsmajority-ownedsubsidiaryShandongLulianNewMaterialsCo.,Ltd.,usingRMB90millionoftheremainingraisedfundsforthe“overseashigh-endfabricproductionlineproject(PhaseI)”,whichhavebeendisclosedonthecninfowebsite("www.cninfo.com.cn")dated26September2023and27September2023,respectively. | |
| Conditionandreasonfornotreachingthescheduleandanticipatedincome(byspecificitems) | N/A |
| Notesofconditionofsignificantchangesoccurredinprojectfeasibilityafterchanges | N/A |
VIIISaleofMajorAssetsandEquityInterests
1.SaleofMajorAssets
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
2.SaleofMajorEquityInterests
□Applicable?NotapplicableIXMajorSubsidiaries
?Applicable□NotapplicableMajorfully/majority-ownedsubsidiariesandthoseminority-ownedsubsidiarieswithanover10%effectontheCompany’snetprofit:
Unit:RMB
| Name | RelationshipwiththeCompany | Principalactivity | Registeredcapital | Totalassets | Netassets | Operatingrevenue | Operatingprofit | Netprofit |
| LufengWeaving&DyeingCo.,Ltd. | Subsidiary | Fabric | 706160000 | 1,591,521,376.13 | 1,448,604,322.83 | 1,375,045,198.83 | 59,043,978.09 | 57,390,726.91 |
| ShandongLulianNewMaterialsCo.,Ltd. | Subsidiary | Fabric | 400000000 | 651,626,373.52 | 102,902,356.55 | 165,702,046.24 | -91,041,783.42 | -90,776,733.25 |
SubsidiariesobtainedordisposedintheReportingPeriod:
□Applicable?NotapplicableInformationaboutmajormajority-andminority-ownedsubsidiaries:
LuFengCompanyLimited(hereinafterreferredtoas“LuFeng”)istheholdingsubsidiaryoftheCompany.Registrationplace:Zibo,Shandong;registeredcapital:RMB706.160million.Themainlymanufacturingandsellingtextileprintinganddyeingproductsandtheproductsofclothingandgarments,anditwereauthenticatedtobehigh-techenterpriseinOctober2014.DuringtheReportingPeriod,withtheweakconsumerdemandacrosstheglobe,LuFengsawdecreasedexportandhigh-added-valueorders,leadingtoa
declineinbothoperatingrevenueandnetprofit.ShandongLulianNewMaterialsCo.,Ltd.(hereinafterreferredtoas"LulianNewMaterials")istheholdingsubsidiaryoftheCompany.Registrationplace:Zibo,Shandong;registeredcapital:RMB400million.ItwasestablishedinApril2019andmainlymanufacturingandsellingfunctionalfabrics.DuringtheReportingPeriod,itwasrampinguptechnologyandproduction.XStructuredBodiesControlledbytheCompany
?Applicable□NotapplicableSee“XInterestsinOtherEntities”ofPartX.XIProspects
1.IndustrycompetitionanddevelopmenttrendThetextileindustryofChinahascertainstrengthintheglobaltextileindustry,mainlyshowinginindustrychain,technology,laborefficiencyandotheraspects.Theglobaleconomicdownturnhasimpactedtheeconomyandtradeofvariouscountriessince2020,butthecompetitiveedgeofthetextileindustryofChinaintheinternationalmarketstillremains.Inrecentyears,whenthedomesticenvironmentalprotectionrequirementsarebecomingmorestringent,productioncostsaregoingupandthetransformationandupgradepolicyisimplementedinChina,thetextileindustrymayfacestructuraladjustment,andfabricdemandwillchangetowardssmallbatch,multiplecategories,diversification,functionalityandleisure.
2.DevelopmentstrategyoftheCompanyTheCompanyisalarge-scaletextileenterprisewithacompleteindustrialchainintegratingspinning,dyeing,weaving,post-treatmentandgarmentmanufacturing.Itistheworld'slargestproductionbaseforyarn-dyedfabricsforshirts,providingblendingofthreemajorseriesoffabricsofpurecottonandnaturalfiber,cottonandnaturalfiberaswellascottonandfunctionalfiber.Andthenewlydevelopedknittedfabricandfunctionalfabricarealsopopularinmarkets.InordertomaintaintheoutstandingadvantagesoftheCompanyinglobalyarn-dyedfabrics,theCompanyispushingintelligentmanufacturingupgradesandintegratingdomesticandforeignadvantageousresourcestodeepeninternationalizationoftheCompanywithregionaladvantages.TheCompanycombinesqualityinnovationandcustomerneeds,andinnovatesthemarketingmodelwithadvantagesofresourcesineachchanneltomeetvariousneedsofcustomers.Furthermore,theCompanyincreasesinvestmentininnovationtoimproveR&Danddesignanddevelopnewfabrics.TheCompanyholdstheconceptoflow-carbonenvironmentalprotectionforsustainabledevelopment.
3.Businessplan(thefollowingdescriptiondoesnotconstituteanycommitmentoftheCompany)
(1)Intermsofcorporategovernance,inordertoensurethehealthy,stableandsustainabledevelopmentoftheCompanyattheinstitutionallevel,theCompanywillestablishaninternalcontrolsystemtoimproveorganizationalstructure,corporategovernancestructureandriskpreventionmechanism.
(2)Intheaspectofmarketdevelopment,theCompanyactivelydevelopsemergingmarketsonthebasisofmaintainingtheexistingmarket,accuratelyunderstandsmarkettrendandcustomers’demand,andfullyimprovesservicecapacity,sothattheCompanycouldbeaglobaldresssolutionsupplierbasedonleadingfabric.
(3)Intheaspectofbusinessadministration,theCompanycontinuallyimplementsthestrategyof“qualityandefficiencyimprovement”and“comprehensiveinternationalization”,makesmoreeffortsindevelopingmarket,adjustingstructureandimprovingcapacity,promotesinnovationwhilemeetingmarketdemand,integratesinternalandexternalresources,deepenstheapplicationofinformationtechnologyandbigdata,buildsupaflexible,rapidresponse,efficientandtraceablesupplysystemchain,andeffectivelyimprovesoperationalcapabilities.
(4)Intermsofindustrialoverallarrangement,inordertomaintaintheleadingpositionoftheCompanyintheglobalyarn-dyedindustry,theCompanyrationallyallocatesdomesticandforeignresourcesandimprovesproductionefficiencywhilekeepingproductqualityrelyingontheadvantagesofU.S.companies,MilanandJapanOfficeinmarketdevelopment,designandR&D,customer
serviceandtalentdevelopment,andthecostadvantagesoftheoverseasproductionbases.
4.Capitalneeds,sourcesandplanningBytheendoftheReportingPeriod,theoverseashigh-endfabricproductionlineproject(phaseI)wasintrialproduction,andtheprojectfundismainlyfromtheCompany’sownfundsandtheraisedfundoftheAShareconvertiblebondsissuedbytheCompany.
5.RisksthatbringadverseimpacttocompanydevelopmentstrategyandbusinessobjectivesandcountermeasuresoftheCompany
(1)Impactofeconomicenvironment:undertheenormousuncertaintyriskoftheinternationaltrade,thegeopoliticalriskandtheweakglobaleconomicgrowth,theCompanywillfacechallengesintermsofinternationaltradepoliciesandmarketchanges.Inresponse,theCompanywillgraspnewopportunitiesarisinginChina’stransformationanddouble-cycledevelopmentathomeandabroad,furtherutilizevariousresourcesathomeandabroad,andkeepdevelopingdomesticandoverseasmarkets.
(2)Pricefluctuationofrawmaterials:cottonisthemajorproductionmaterialoftheCompany,andthepriceofcottonisimpactedbymarketsupplyanddemand,climate,policy,exchangerateandotherfactors.Therefore,theCompanycoordinatesorderarrangementsfordomesticandoverseasproductionbasesinarationalway,deeplystudiestheinformationofglobalcottonmarket,properlyworksoutprocurementstrategyandgivesfullplaytotheconvenientadvantagesofglobalprocurementofhigh-qualityrawcottonthroughoverseasproductionbases.
(3)Changeofexchangerate:theCompanyhasalargeratioinimportandexportbusiness,whichismostlysettledinUSD.Inrecentyears,thebi-directionalfluctuationsinRMBexchangeratehavebecomeincreasinglynormalandflexible.Theexchangeratefluctuationwillplacearemarkableimpactonitsperformance.Tolowertheimpactofexchangeratefluctuations,theCompanystucktotherisk-neutralphilosophy.Basedonactualneedsarisingfromproductionandoperations,itincorporatedexchangeraterisksintoroutineoperationsmanagement,andtookmeasuresatpropertimingtominimizetheinfluenceofexchangeraterisksontheoperations.Firstly,theCompanyappropriatelyconductedforeignexchangehedging,usingfinancialderivativessuchasforwards,swaps,andoptionportfoliostoavoidcurrencyrisks.Secondly,theCompanymadereasonablearrangementonsettlementdayandcurrencyandvigorouslypromotedcross-bordersettlementwithRMBtoavoidexchangerate-relatedrisks.Thirdly,theCompanyadjustedtheRenminbiandforeign-currencyliabilitiesstructuretoactivelypreventcurrencyfluctuationrisks.
XIICommunicationswiththeInvestmentCommunitysuchasResearches,InquiriesandInterviewsduringtheReportingPeriod?Applicable□Notapplicable
| Dateofvisit | Placeofvisit | Wayofvisit | Typeofvisitor | Visitor | Contentsandmaterialsprovided | Indextomaininquiryinformation |
| 6January2023 | TheCompany’sconferenceroom | Byphone | Institution | Institutionalinvestor | AboutbasicinformationoftheCompany | InvestorRelationsManagementArchive20230110disclosedonCninfobytheCompanyon10January2023 |
| 3February2023 | TheCompany’sconferenceroom | Byphone | Institution | Institutionalinvestor | AboutbasicinformationoftheCompany | InvestorRelationsManagementArchive20230207disclosedonCninfobytheCompanyon7February2023 |
| 8February2023 | TheCompany’sconferenceroom | Byphone | Institution | Institutionalinvestor | AboutbasicinformationoftheCompany | InvestorRelationsManagementArchive20230210disclosedonCninfobytheCompanyon10February2023 |
| 22February2023 | TheCompan | One-on-one | Institution | Institutionalinvestor | Aboutbasicinformationofthe | InvestorRelationsManagementArchive20230223disclosedon |
| y’sconferenceroom | meeting | Company | CninfobytheCompanyon23February2023 | |||
| 12April2023 | TheCompany’sconferenceroom | Byphone | Institution | Institutionalinvestor | AboutbasicinformationoftheCompany | InvestorRelationsManagementArchive20230413disclosedonCninfobytheCompanyon13April2023 |
| 28April2023 | TheCompany’sconferenceroom | Byphone | Institution | Institutionalinvestor | AboutbasicinformationoftheCompany | InvestorRelationsManagementArchive20230504disclosedonCninfobytheCompanyon4May2023 |
| 15May2023 | TheCompany’sconferenceroom | Onlineexchange | Other | Investor | AboutbasicinformationoftheCompany | InvestorRelationsManagementArchive20230515disclosedonCninfobytheCompanyon15May2023 |
| 18May2023 | TheCompany’sconferenceroom | One-on-onemeeting | Institution | Institutionalinvestor | AboutbasicinformationoftheCompany | InvestorRelationsManagementArchive20230523disclosedonCninfobytheCompanyon23May2023 |
| 9June2023 | TheCompany’sconferenceroom | One-on-onemeeting | Institution | Institutionalinvestor | AboutbasicinformationoftheCompany | InvestorRelationsManagementArchive20230613disclosedonCninfobytheCompanyon13June2023 |
| 21August2023 | TheCompany’sconferenceroom | Byphone | Institution | Institutionalinvestor | AboutbasicinformationoftheCompany | InvestorRelationsManagementArchive20230822(1)disclosedonCninfobytheCompanyon22August2023 |
| 21August2023 | TheCompany’sconferenceroom | Byphone | Institution | Institutionalinvestor | AboutbasicinformationoftheCompany | InvestorRelationsManagementArchive20230822(2)disclosedonCninfobytheCompanyon22August2023 |
| 22August2023 | TheCompany’sconferenceroom | Byphone | Institution | Institutionalinvestor | AboutbasicinformationoftheCompany | InvestorRelationsManagementArchive20230822disclosedonCninfobytheCompanyon22August2023 |
| 30October2023 | TheCompany’sconferenceroom | Byphone | Institution | Institutionalinvestor | AboutbasicinformationoftheCompany | InvestorRelationsManagementArchive20231031(1)disclosedonCninfobytheCompanyon31October2023 |
| 30October2023 | TheCompany’sconferenceroom | Byphone | Institution | Institutionalinvestor | AboutbasicinformationoftheCompany | InvestorRelationsManagementArchive20231031(2)disclosedonCninfobytheCompanyon31October2023 |
XIIIImplementationofthe“QualityandEarningsDualImprovement”ActionPlan
IndicatewhethertheCompanyhasdisclosedthe“QualityandEarningsDualImprovement”ActionPlan.
□Yes?No
PartIVCorporateGovernance
IGeneralInformationofCorporateGovernance
DuringtheReportingPeriod,theCompanystrictlyconformstoCompanyLaw,SecuritiesLaw(Revisedin2019),GoverningRulesforListedCompany,GuidelineNo.1oftheShenzhenStockExchangefortheSelf-regulationofListedCompanies—OperationComplianceofMainBoardListedCompanies(revisedinDecember2023)andAdministrativeMeasuresforIndependentDirectorsofListedCompaniesaswellasrelevantstipulationsandrequirementsfromnormativedocuments,continuouslyimprovesthecorporategovernancestructure,safeguardsthestandardizedandefficientoperationofthreeCommitteesandoneManagement,formsasoundandeffectiveinternalcontrolsystemsoastosafeguardlegitimateinterestsoftheCompanyandinvestors.WithintheReportingPeriod,theCompanyamended24systemsincludingArticlesofAssociationofLuThaiTextileCo.,Ltd.,RulesofProcedureoftheGeneralMeetingofLutaiTextileCo.,Ltd.,andRulesofProcedureoftheBoardofDirectorsofLutaiTextileCo.,Ltd.,andformulatedSpecialMeetingSystemforIndependentDirectorsofLuTaiTextileCo.,Ltd.
1.ShareholdersandShareholders’GeneralMeetingTheCompanyshallconveneandholdtheshareholdersmeetinginstrictaccordancewiththeShareholdersMeetingProceduralRules,andguaranteethatallshareholders,especiallytheminorityshareholders,couldhaveequalstatusandfullyexecutetheirrights.
2.TherelationshipbetweenthemajorityshareholdersandtheCompanyTheCompany’smajorityshareholdersactedaccordingtorelevantstandardswithoutdirectlyorindirectlyinterveningtheCompany’sdecision-makingandoperatingactivities;theCompanywasindependentwithitsmajorityshareholdersinbusiness,personnel,assets,organization,finance,andtheCompany’sBoardofDirectors,SupervisoryCommitteeandInternalOrganscouldcompletelyindependenttooperate.TherewasnosituationaboutannexingtheassetsoroccupationoffundsoftheCompanybyprincipalshareholdersorothereventsoninfringingtheinterestoftheCompanyandothershareholders.
3.ThedirectorsandBoardofDirectorsTheCompany’sBoardofDirectorsshallperformtheirdutiesinstrictaccordancewithArticlesofAssociationandtheBoardofDirectorsProceduralRules.UndertheBoardofDirectors,theCompanyestablishedtheStrategyCommittee,theAuditCommittee,theNominationCommitteeandtheRemunerationCommittee.Variousspecializedcommitteeswouldfullyperformtheirfunctionsandfurtherguaranteethehigh-efficientoperationandthescientificdecision-makingoftheBoardofDirectors.
4.SupervisorsandSupervisoryCommitteeTheCompany’sSupervisoryCommitteewillperformtheirdutiesinstrictaccordancewithArticlesofAssociationandtheSupervisoryCommitteeProceduralRules.ThenumberofmembersandthecompositionoftheCompany’sSupervisoryCommitteeshallcomplywithapplicablelawsandregulations;theCompany’ssupervisorsshallstrictlyabidebyrelevantprovisions,seriouslyexecutetheirdutiesandsupervisetheCompany’sfinancialstatusandthelegalexecutionofdutiesofthedirectors,presidentandotherseniormanagersbyadheringtotheprincipleofbeingresponsiblefortheshareholdersandthelistedcompany.
5.InformationdisclosureTheCompanystrictly,inaccordancewiththelaws,regulationsandtheArticlesofAssociation,disclosedrelevantinformationinatrue,accurate,completeandtimelymanner.TheCompanyhasformulatedtheInformationDisclosureManagementSystem,InformationInsiderRegistrationManagementSystemandInvestorRelationsManagementSystem,etc.,toensurethefairness,opennessandfairnessofinformationdisclosure.
6.InvestorrelationsmanagementDuringtheReportingPeriod,asrequiredbyInvestorRelationsManagementSystem,tomaintaingoodcommunicationwithinvestors,theCompanyacceptedon-siteinvestigationsandconsultationsofinvestorsthroughon-siteinvestigationsandtelephoneconsultations,andpromptlyansweredquestionsaskedbyinvestorsontheSZSEEasy-IR.
Indicatebytickmarketwhetherthereisanymaterialincompliancewiththeapplicablelaws,administrativeregulationsandtheCSRCrulesforthegovernanceoflistedcompanies.
□Yes?NoNosuchcasesintheReportingPeriod.
IITheCompany’sIndependencefromItsControllingShareholderandActualControllerinAssets,Personnel,FinancialAffairs,OrganizationandBusiness
1.Asforthebusiness:theCompanyshallestablishitsindependentandcompletebusinesssystemwiththemarket-orientedindependentmanagementability.Intherespectofbusinessoperation,theCompanyiscompletelyseparatedfromthecontrollingshareholders.
2.Asforthepersonnel:theCompany’slabor,personnelandremunerationmanagementdepartmentsshallbeindependentwiththeirownsoundsystems,andseparatedfromthatofthesubstantialshareholder.TheCompany’sseniormanagersarenotallowedtosimultaneouslyholdanyofficeinanyshareholder’sunit.
3.Asfortheassets:theCompanypossessestheentireandindependentlegalpersonpropertyrightwithindependentandperfecttheproductionsystem,auxiliaryproductionsystemsandsupportingfacilities;andpossessestheindependentownershipoftheintangibleassetssuchastheindustrialproperty,trademarks,non-patentedtechnology.
4.Asfortheinstitution:theCompany’sBoardofDirectors,SupervisoryCommitteeandotherinternalorganizationshallbesoundandinvolvedinindependentoperation.Thesubstantialshareholdershalllegallyexecuteitsrights,fulfillcorrespondingobligationsandnotsurpasstheshareholdersmeetingtodirectlyorindirectlyinterferetheCompany’sbusinessactivities.
5.Asforthefinance:theCompanypossessesindependentfinancialdepartmentswithnormativefinancialaccountingsystemandfinancialmanagementsystemaswellasinternalcontrolsystemwithindependentbankaccount.
IIIHorizontalCompetition
□Applicable?NotapplicableIVAnnualandSpecialGeneralMeetingsConvenedduringtheReportingPeriod
1.GeneralMeetingConvenedduringtheReportingPeriod
| Meeting | Type | Investorparticipationratio | Dateofthemeeting | Disclosuredate | Resolutions |
| The2022AnnualGeneralMeeting | AnnualGeneralMeeting | 32.95% | 12May2023 | 13May2023 | 19proposals,includingtheProposalon2022AnnualWorkReportoftheBoardofDirectors,weredeliberatedandapproved. |
| The1stExtraordinaryGeneralMeetingof2023 | ExtraordinaryGeneralMeeting | 33.33% | 6July2023 | 7July2023 | ProposalonRepurchaseoftheCompany’sDomesticallyListedForeignShares(BShare),wasdeliberatedandapproved. |
| The2ndExtraordinaryGeneralMeetingof2023 | ExtraordinaryGeneralMeeting | 32.99% | 25September2023 | 26September2023 | ProposalonChangingtheUsageofSomeRaisedFundswasdeliberatedandapproved. |
2.SpecialGeneralMeetingsConvenedattheRequestofPreferredShareholderswithResumedVotingRights
□Applicable?Notapplicable
VDirectors,SupervisorsandSeniorManagement
1.BasicInformation
| Name | Gender | Age | Officetitle | Incumbent/Former | Startoftenure | Endoftenure | Beginningshareholding(share) | IncreaseintheReportingPeriod(share) | DecreaseintheReportingPeriod(share) | Otherincrease/decrease(share) | Endingshareholding(share) | Reasonforchange |
| LiuZibin | Male | 59 | Chairman | Incumbent | 6June2016 | 8June2025 | 148,290 | 148,290 | ||||
| Male | 59 | President | Incumbent | 6June2007 | 8June2025 | 148,290 | 148,290 | |||||
| XuZhinan | Male | 94 | ViceChairman | Incumbent | 6May2004 | 8June2025 | ||||||
| XuJianlyu | Female | 49 | Director | Incumbent | 9June2022 | 8June2025 | ||||||
| ZhengHuisheng | Male | 36 | Director | Incumbent | 9June2022 | 8June2025 | ||||||
| LiuDeming | Male | 34 | Director,ViceControllerofGlobalMarketingDepartment | Incumbent | 12May2017 | 8June2025 | ||||||
| ZhangZhanqi | Male | 52 | Director | Incumbent | 9June2022 | 8June2025 | 580,300 | 580,300 | ||||
| Male | 52 | Vicepresident,HeadofGlobalMarketingDepartment | Incumbent | 6June2016 | 8June2025 | 580,300 | 580,300 | |||||
| ZhangKeming | Male | 56 | Director | Incumbent | 9June2022 | 8June2025 | 377,700 | 377,700 | ||||
| Male | 56 | BoardSecretary,ChiefAccountant,HeadofFinancialManagementDepartment | Incumbent | 6June2019 | 8June2025 | 377,700 | 377,700 | |||||
| DuLixin | Male | 49 | Director,ChiefEngineer,ExecutiveDeanofLu | Incumbent | 9June2022 | 8June2025 | 250,000 | 250,000 |
| ThaiEngineeringTechnologyResearchInstitute | |||||||||
| ZhouZhiji | Male | 61 | IndependentDirector | Incumbent | 10March2019 | 8June2025 | |||
| QuDongmei | Female | 55 | IndependentDirector | Incumbent | 10June2019 | 8June2025 | |||
| PengYanli | Female | 63 | IndependentDirector | Incumbent | 9June2022 | 8June2025 | |||
| QuanYuhua | Female | 68 | IndependentDirector | Incumbent | 9June2022 | 8June2025 | |||
| ZhangShougang | Male | 54 | ChairmanoftheSupervisoryCommittee | Incumbent | 8February2018 | 8June2025 | 73,100 | 73,100 | |
| LiuZilong | Male | 56 | Supervisor | Incumbent | 6June2007 | 8June2025 | 10,000 | 10,000 | |
| DongShibing | Male | 55 | Supervisor,ChairmanoftheLaborUnion,ManagerofLogisticsManagementDepartment | Incumbent | 6June2007 | 8June2025 | 5,000 | 5,000 | |
| ShangChenggang | Male | 51 | PresidentAssistant,HeadofGarmentProductLine | Incumbent | 6June2013 | 8June2025 | 330,000 | 330,000 | |
| YuShouzheng | Male | 56 | PresidentAssistant,HeadofEnergyandEnvironmentProtectionDepartment | Incumbent | 6June2007 | 8June2025 | 383,100 | 383,100 | |
| FujiwaraMatsuzaka | Male | 51 | GMofJapanOffice | Incumbent | 9December2014 | 8June2025 | |||
| LiWenji | Male | 57 | DeanofLuThaiEngineeringTechnologyResearchInstitute | Incumbent | 8June2016 | 8June2025 | 260,000 | 260,000 | |
| GuoHeng | Male | 52 | HeadofFunctionalFabricProductLine | Incumbent | 18January2018 | 8June2025 | 300,000 | 300,000 | |
| LyuWenquan | Male | 51 | DeputyHeadofYarnDyedFabricProductLine,Managerof | Incumbent | 9June2022 | 8June2025 | 200,000 | 200,000 |
| YarnDyedFabricProductionandManagementDepartment | ||||||||||||
| XuFeng | Male | 47 | DeputyHeadofYarnDyedFabricProductLine,HeadofOverseasOperationandManagementCenter | Incumbent | 9June2022 | 8June2025 | 190,000 | 190,000 | ||||
| WangJiabin | Male | 61 | HeadofSafety,ChairmanoftheLaborUnion | Former | 6June2007 | 15July2023 | 313,700 | 313,700 | ||||
| Total | -- | -- | -- | -- | -- | -- | 3,421,190 | 0 | 0 | 0 | 3,421,190 | -- |
Indicatebytickmarkwhetheranydirector,supervisororseniormanagementdepartedtheCompanybeforetheexpiryoftheirtenuresduringtheReportingPeriod.?Yes□NoWangJiabin,theCompany’sformerHeadofSafetyandChairmanoftheLaborUnion,resignedfromhispositionasanexecutiveofficeroftheCompanyon15July2023duetohisretirementandcontinuestoremainasaconsultantoftheCompany.ChangeofDirectors,SupervisorsandSeniorManagement?Applicable□Notapplicable
| Name | Officetitle | Typeofchange | Dateofchange | Reasonforchange |
| WangJiabin | HeadofSafety,ChairmanoftheLaborUnion | Contracttermination | 15July2023 | Retirement |
2.BiographicalInformation
Professionalbackgrounds,majorworkexperienceandcurrentdutiesintheCompanyoftheincumbentdirectors,supervisorsandseniormanagement:
1.Mr.LiuZibin:ChairmanandPresidentoftheCompany,bornin1965,withamasterdegree.HeservedastheGMandchairmanofZiboLuchengTextileCo.,Ltd.AndhecurrentlyservesasthechairmanandpresidentofLuthaiTextileCo.,Ltd.,thechairmanofLufengTextileDyeingCo.,Ltd.,thechairmanofZiboXinshengThermoelectricCo.,Ltd.,thechairmanofZiboLuQunTextileCo.,Ltd.,thechairmanofLuthai(HongKong)Co.,Ltd.,thechairmanofShandongLulianNewMaterialsCo.,Ltd.,thechairmanofShandongLujiaImportandExportCo.,Ltd.andthechairmanofHainanHuilinInternationalHoldingsCo.,Ltd.
2.Mr.XuZhinan:VicechairmanoftheCompany,bornin1930,Thainationality.HeusedtobedirectorandGMofThaiFibreClothFactoryCo.,Ltd.,directorofThaiFibreCo.,Ltd.,directorofThaiFibrePrintingandDyeingCo.,Ltd.,directoranddeputyGMofLuThaiTextileCo.,Ltd.AndhecurrentlyservesasthedirectoranddeputychairmanoftheCompanyandGMofThailandFiberCo.,Ltd.
3.Ms.XuJianlyu:DirectoroftheCompany,bornin1975,Thainationality.ShecurrentlyservesaspresidentofCassardiInternationalCo.,Ltd.
4.Mr.ZhengHuisheng:DirectoroftheCompany,bornin1988,Thainationality.HecurrentlyservesasdirectorofCassardi
InternationalCo.,Ltd.
5.Mr.LiuDeming:DirectoroftheCompany,deputyheadofglobalmarketingdepartment,bornin1990,withamasterdegree.Currently,heservesaschairmanandGMofZiboLuchengTextileInvestmentCo.,Ltd.,directorofLuThaiTextileCo.,Ltd.anddeputyheadofglobalmarketingdepartmentofLuThaiTextileCo.,Ltd.
6.Mr.ZhangZhanqi:Director,vicepresident,andheadofglobalmarketingdepartmentoftheCompanyandGMofLuFengCompanyLimited,bornin1972,withamasterdegreeofbusinessadministration.Also,heservesasaseniorengineer,oncewasthefactorydirectoroffabricfinishingfactoryandmanagerofqualitymanagementdepartmentoftheCompany.
7.Mr.ZhangKeming:Director,BoardSecretary,ChiefAccountant,andheadofFinancialManagementDepartmentoftheCompany.Bornin1968,withamasterdegreeofbusinessadministration,heisasenioraccountant.OncehewasdeputymanagerandmanagerofthefinancialdepartmentoftheCompany.
8.Mr.DuLixin:Director,chiefengineer,andexecutivedeanofLuthaiInstituteofEngineeringandTechnologyoftheCompany.Bornin1975,heservedasspinningoperator,aweaver'splanner,adeputydirectoroftheproductiondepartment'sdispatchingroom,aweaver'sfactorydirector,amanageroftheweavingdepartment,andadeputymanageroftheproductiondepartmentofLuThai.
9.Mr.ZhouZhiji:IndependentdirectoroftheCompany,bornin1963,withabachelordegree.HeisinpossessionofthecertificatesofCPAandsenioraccountant.HeservedasacadreofShandongProvincialDepartmentofFinance,directorofdepartmentofShandongaccountingfirm,chiefaccountantofShandongZhengyuanAccountingFirm,directorandmanagerofShandongYingshidaEnterpriseManagementConsultingCo.,Ltd.,chairmanofShandongJinhengConsultingCo.,Ltd.Now,heservesasasupervisorofShandongJinhengConsultingCo.,Ltd.,directorofShandongMenglvInformationTechnologyCo.,Ltd.,anddirectorofShandongFabricButtonNetworkTechnologyCo.,Ltd.
10.Ms.QuDongmei:IndependentdirectoroftheCompany,bornin1969,withadoctordegreeofeconomiclaw.ShecurrentlyservesasaprofessorattheSchoolofLawofShandongNormalUniversity,amaster'ssupervisorinCivilandCommercialLaw,memberofWesternReturnedScholarsAssociation,alawyerofGrandallLawFirm(Jinan)andanarbitratorofJinanArbitrationCommission.
11.Ms.PengYanli:IndependentdirectoroftheCompany,bornin1961,withamasterdegreeofbusinessadministration.Sheisaseniorengineer.AsaformerofficialintheformerMinistryoftheTextileIndustryandtheformerChinaTextileFederation,sheservedaspresidentofChinaWoolTextileAssociation,deputysecretarygeneralofChinaNationalTextileandApparelCouncil,vicechairmanofChinaTextileEngineeringSociety,anddeputydirectorofChinaTextileInformationCenter.
12.Ms.QuanYuhua:IndependentdirectoroftheCompany,bornin1956,withabachelordegree.Sheisasenioraccountant.Moreover,sheservedasmanagerofthefinancingdepartmentoftheCCBShandongBranchTrustandInvestmentCompany,thedirectorassistantintheinformationandresearchoffice,theentrustedloanoffice,andthefee-basedbusinessdepartmentoftheCCBShandongBranch,andthelevel-5customermanagerintheZhenzhuquanBranchofCCBinJinanCity.
13.Mr.ZhangShougang:ChairmanoftheBoardofSupervisors,bornin1970,withamasterdegreeofbusinessadministration.Heisinpossessionofacertificateofseniorengineer.Andheservedasdirectoroftheweavingfactory,manageroftheweavingdepartment,managerofthequalitymanagementdepartment,managerofthegarmentproductiondepartment,manageroftheenterprisemanagementdepartmentandDirectorofHumanResourcesDepartmentoftheCompany.
14.Mr.LiuZilong:SupervisoroftheCompany,bornin1968,withamasterdegreeofbusinessadministration.Inaddition,hehasservedastheGMofLuthai(HongKong)since2002.
15.Mr.DongShibing:SupervisoroftheCompany,bornin1969,withadiplomaoftechnicalsecondaryschool.HeonceservedasdeputydirectoroftheGM'sofficeoftheCompany.Currently,heservedasthechairmanoftheLaborUnionoftheCompany,manageroftheCompany'slogisticsmanagementdepartmentandGMofZiboBanyangVillaHotelCo.,Ltd.
16.Mr.ShangChenggang:PresidentAssistantandheadofapparelproductlineoftheCompany.Bornin1973,heservedasdeputydirector,director,managerofGMdepartment,managementrepresentativeandmanagerofgarmentproductiondepartment,headofgarmentmanufacturingcenter&managerofgarmentproductionmanagementdepartmentoftheCompany.
17.Mr.YuShouzheng:PresidentAssistant,HeadoftheenergyandenvironmentalprotectiondepartmentoftheCompany,GMofZiboXinshengThermalPowerCo.,Ltd.,bornin1968,withamasterdegreeofbusinessadministration.Asanengineer,heonceworkedasthedirectorofthepowerdepartmentandmanageroftheenergydivisionoftheCompany.
18.Mr.FujiwaraMatsuzaka:GMofbranchofficeinJapan,Japanesewithabachelordegree.HeisaspecialforeignexpertoftheCompany,andheoncewontheQiluFriendshipAward.Inaddition,heservedasdeputymanagerofinternationalbusinessdepartment,managerofNo.1internationalbusinessdepartment,managerofNo.2internationalbusinessdepartmentandmanagerofclothingmarketingdepartmentofLuthaiTextileCo.,Ltd.
19.Mr.LiWenji:DeanofLuThaiEngineeringTechnologyResearchInstitute,bornin1967.OncehewasateacherofShandongUniversityofFinance.HeonceservedasthemanageroftheCompany'sinformationdepartment,CIOandControlleroftheenterprisemanagementdepartment.
20.Mr.GuoHeng:HeadofFunctionalFabricProductLine.Bornin1972,heservedasthedeputydirectorofthespinningfactoryofLuThai,thedeputymanageroftheyarnbusinessdepartment,andthemanageroftheyarnbusinessdepartmentandheadofenterprisemanagementdepartmentofLuThai.
21.Mr.LyuWenquan:DeputyHeadoftheyarn-dyedfabricproductline,manageroftheyarn-dyedproductionmanagementdepartment,bornin1973.Heservesasaseniorengineer.Moreover,heisoneofthemiddle-agedandyoungexpertsinZiboCityandoneofthe“TorchTalents”forZiboHigh-techZone.Inaddition,heservedasafactorydirectorandthemanagerofthefabricfinishingbusinessdepartmentofLuThai.
22.Mr.XuFeng:Deputyheadoftheyarn-dyedfabricproductline,HeadofOverseasOperationandManagementCenter,bornin1977.Heisanengineerandservedasassistantmanagerofthebleachinganddyeingbusinessdepartment.Officesheldconcurrentlyinshareholdingentities:
?Applicable□Notapplicable
| Name | Shareholdingentity | Officeheldintheshareholdingentity | Startoftenure | Endoftenure | Remunerationorallowancefromtheshareholdingentity |
| LiuZibin | ZiboLuchengTextileInvestmentCo.,Ltd. | Director | 26February1999 | No | |
| XuZhinan | Tailun(Thailand)TextileCo.,Ltd. | GM | 29January1985 | No | |
| LiuDeming | ZiboLuchengTextileInvestmentCo.,Ltd. | ChairmanandGM | 1February2017 | No | |
| Explanationsaboutholdingpostsinshareholders’companies | Mr.LiuZibinistheDirectorofZiboLuchengTextileInvestmentCo.,Ltd.,holding4%equitiesofZiboLuchengTextileInvestmentCo.,Ltd.BasicinformationofMr.LiuZibin:Chinese,norightofresidenceinothercountriesorregions.Mr.LiuDemingholdsthepostofChairmanandGMofZiboLuchengTextileInvestmentCo.,Ltd.,holding21%equitiesofZiboLuchengTextileInvestmentCo.,Ltd.BasicinformationofMr.LiuDeming:Chinese,norightofresidenceinothercountriesorregions.Mr.XuZhinanisthesponsorofforeigncapitaloftheCompany,shareholderofTailun(Thailand)TextileCo.,Ltd.andTailun(Thailand)TextileCo.,Ltd.isthesecondlargestshareholderoftheCompany.BasicinformationaboutMr.XuZhinan:Thai. | ||||
Officesheldconcurrentlyinotherentities:
?Applicable□Notapplicable
| Name | Otherentity | Officeheldintheentity | Startoftenure | Endoftenure | Remunerationorallowancefromtheentity |
| LiuZibin | LuFengCompanyLimited,ZiboLuqunTextileCo.,Ltd.,ZiboXinshengThermalPowerCo.,Ltd.,LuThai(HK)TextileCo.,Ltd,ShandongLulianNewMaterialsCo., | ChairmanoftheBoard,Director,GM | 7December2015 | No |
| Ltd.,ShandongLujiaImportandExportCo.,Ltd.,HainanHuilinInternationalHoldingsCo.,Ltd. | |||||
| LiuDeming | LuFengCompanyLimited,ZiboXinshengThermalPowerCo.,Ltd.,ZiboLuqunTextileCo.,Ltd.,ShandongLulianNewMaterialsCo.,Ltd.,ShanghaiZhinuoTextileNewMaterialsCo.,Ltd.,BeijingZhishuManagementConsultingCo.,Ltd. | Director | 21August2017 | No | |
| ZhangZhanqi | LuFengCompanyLimited | DirectorandGM | 5July2014 | No | |
| ZhangKeming | ZiboLuqunTextileCo.,Ltd.,ShandongLulianNewMaterialsCo.,Ltd.,LuFengCompanyLimited,ShanghaiLuthaiTextileandApparelCo.,Ltd.,ShanghaiZhinuoTextileNewMaterialsCo.,Ltd. | Director,Supervisor | 3March2022 | No | |
| ZhouZhiji | ShandongJinhengConsultingCo.,Ltd | Supervisor | 1October2015 | Yes | |
| QuDongmei | LawSchoolofShandongNormalUniversity | Professor | 1July2003 | Yes | |
| QuanYuhua | ShandongHighEndBlueberryBiotechnologyCo.,Ltd.,ShandongSparkInternationalEducationGroupCo.,Ltd. | Director | 1April2008 | Yes | |
| LiuZilong | LuThai(HongKong)TextileCo.,Ltd. | GM | 9May2005 | No | |
| DongShibing | ZiboBanyangVillaHotelCo.,Ltd. | DirectorandGM | 2April2021 | No | |
| YuShouzheng | ZiboXinshengThermalPowerCo.,Ltd. | DirectorandGM | 13April2021 | No | |
| GuoHeng | ShandongLulianNewMaterialsCo.,Ltd. | DirectorandGM | 28August2021 | No | |
| Explanationsaboutholdingpostsinotherentities | Exceptforindependentdirectors,allotherentitiestheCompany’sdirectors,supervisorsandseniormanagementholdpostsaremajority-ownedsubsidiariesoftheCompany. | ||||
Punishmentsimposedintherecentthreeyearsbythesecuritiesregulatorontheincumbentdirectors,supervisorsandseniormanagementaswellasthosewholeftintheReportingPeriod:
□Applicable?Notapplicable
3.RemunerationofDirectors,SupervisorsandSeniorManagement
Decision-makingprocedure,determinationbasisandactualpaymentsofremunerationfordirectors,supervisorsandseniormanagement:
TheRemunerationandAppraisalCommitteeundertheBoardofDirectorsoftheCompanyisliabletonotonlypreparingappraisalcriteriafordirectorsandseniormanagementoftheCompanyandappraisingthem,butalsopreparingandreviewingremunerationpoliciesandplansfordirectorsandseniormanagementoftheCompany,whoisliabletotheBoardofDirectors.TheRemunerationandAppraisalCommitteeshallproposetheremunerationamountofdirectorsandseniormanagementaccordingtotheCompany'smanagementconditionandpostperformanceresults,andshallreporttotheBoardofDirectorsforratificationaftertheapprovalbyvoting.TheControllerofFinancialManagementDepartment,theCorporateManagementDepartmentandtheHRDepartmentoftheCompanyshallbeliabletothepreliminarypreparationforthedecisionoftheRemunerationandAppraisalCommittee,includingbutnotlimitedtoprovidinginformationsuchastheCompany'smainfinancialindicatorsandthecompletionofmanagement
objectives.TheRemunerationandAppraisalCommitteeshallconfirmtheannualappraisalresultsofdirectorsandofficersinaccordancewiththecompletionoftheCompany'sperformanceandtheremunerationcriteriaforofficers,andshallreporttotheBoardofDirectorsforratificationaftertheapprovalbyvoting.Thenumberofincumbentdirectors,supervisorsandseniorexecutivesis22,amongwhichthereare19personsactuallyreceivingremunerationfromtheCompanyduringtheReportingPeriod.By31December2023,thetotalamountofannualpaymentdrawnfromtheCompanybydirectors,supervisorsandseniorexecutivesisRMB12,214,100(beforetax).Remunerationofdirectors,supervisorsandseniormanagementfortheReportingPeriod
Unit:RMB'0,000
| Name | Gender | Age | Officetitle | Incumbent/Former | Totalbefore-taxremunerationfromtheCompany | Anyremunerationfromrelatedparty |
| LiuZibin | Male | 59 | ChairmanandPresident | Incumbent | 146.75 | No |
| XuZhinan | Male | 94 | ViceChairman | Incumbent | 0 | No |
| XuJianlyu | Female | 49 | Director | Incumbent | 0 | No |
| ZhengHuisheng | Male | 36 | Director | Incumbent | 0 | No |
| LiuDeming | Male | 34 | Director,ViceControllerofGlobalMarketingDepartment | Incumbent | 74.53 | No |
| ZhangZhanqi | Male | 52 | Director,Vicepresident,HeadofGlobalMarketingDepartment | Incumbent | 76.97 | No |
| ZhangKeming | Male | 56 | Director,BoardSecretary,ChiefAccountant,HeadofFinancialManagementDepartment | Incumbent | 75.51 | No |
| DuLixin | Male | 49 | Director,ChiefEngineer,ExecutiveDeanofLuThaiEngineeringTechnologyResearchInstitute | Incumbent | 75.04 | No |
| ZhouZhiji | Male | 61 | IndependentDirector | Incumbent | 7 | No |
| QuDongmei | Female | 55 | IndependentDirector | Incumbent | 7 | No |
| PengYanli | Female | 63 | IndependentDirector | Incumbent | 0 | No |
| QuanYuhua | Female | 68 | IndependentDirector | Incumbent | 7 | No |
| ZhangShougang | Male | 54 | ChairmanoftheSupervisoryCommittee | Incumbent | 60.15 | No |
| LiuZilong | Male | 56 | Supervisor | Incumbent | 76.44 | No |
| DongShibing | Male | 55 | Supervisor,ManagerofLogisticsManagementDepartment | Incumbent | 76.94 | No |
| ShangChenggang | Male | 51 | PresidentAssistant,HeadofGarmentProductLine | Incumbent | 73.57 | No |
| YuShouzheng | Male | 56 | PresidentAssistant,HeadofEnergyandEnvironmentProtectionDepartment | Incumbent | 75.09 | No |
| FujiwaraMatsuzaka | Male | 51 | GMofJapanOffice | Incumbent | 48.55 | No |
| LiWenji | Male | 57 | DeanofLuThaiEngineeringTechnologyResearchInstitute | Incumbent | 78.24 | No |
| GuoHeng | Male | 52 | HeadofFunctionalFabricProductLine | Incumbent | 74.83 | No |
| Lyu | Male | 51 | DeputyHeadofYarnDyedFabricProductLine, | Incu | 73.39 | No |
| Wenquan | ManagerofYarnDyedFabricProductionandManagementDepartment | mbent | ||||
| XuFeng | Male | 47 | DeputyHeadofYarnDyedFabricProductLine.HeadofOverseasOperationandManagementCenter | Incumbent | 83.52 | No |
| WangJiabin | Male | 61 | HeadofSafety,ChairmanoftheLaborUnion | Former | 30.89 | No |
| Total | -- | -- | -- | -- | 1,221.41 | -- |
Othernotes:
□Applicable?NotapplicableVIPerformanceofDutybyDirectorsintheReportingPeriod
1.BoardMeetingConvenedduringtheReportingPeriod
| Meeting | Dateofthemeeting | Disclosuredate | Meetingresolutions |
| 5thMeetingofthe10thBoardofDirectors | 13February2023 | 14February2023 | Threeproposals,includingtheProposalonRoutineRelatedTransactions,weredeliberatedandapproved |
| 6thMeetingofthe10thBoardofDirectors | 20March2023 | 21March2023 | Twenty-fourproposals,includingProposalonAmendingCertainClausesoftheArticlesofAssociationofLuThaiTextileCo.,Ltd.weredeliberatedandapproved |
| 7thMeetingofthe10thBoardofDirectors | 10April2023 | 12April2023 | Nineteenproposals,includingtheProposalon2022AnnualWorkReportoftheBoardofDirectorsweredeliberatedandapproved |
| 8thMeetingofthe10thBoardofDirectors | 26April2023 | 28April2023 | ItdeliberatedandapprovedProposalontheCompany’s2023Q1Report |
| 9thMeetingofthe10thBoardofDirectors | 26May2023 | 27May2023 | Threeproposals,includingProposalontheDelayoftheFunctionalFabricSmartEco-Park(PhaseI)Projectweredeliberatedandapproved |
| 10thMeetingofthe10thBoardofDirectors | 19June2023 | 20June2023 | Threeproposals,includingtheProposalonRepurchaseoftheCompany’sDomesticallyListedForeignShares(BShare)weredeliberatedandapproved |
| 11thMeetingofthe10thBoardofDirectors | 30June2023 | 1July2023 | Twoproposals,includingProposalonNotLoweringtheConversionPriceofLuThaiConvertibleBondsweredeliberatedandapproved |
| 12thMeetingofthe10thBoardofDirectors | 19July2023 | 20July2023 | Twoproposals,includingProposalonModifyingCertainClausesoftheCompany’sArticlesofAssociationAccordingtotheGeneralMeeting'sAuthorizationweredeliberatedandapproved |
| 13thMeetingofthe10thBoardofDirectors | 17August2023 | 19August2023 | Fiveproposals,includingProposalontheFullTextandSummaryoftheCompany’s2023Semi-annualReportweredeliberatedandapproved |
| 14thMeetingofthe10thBoardofDirectors | 8September2023 | 9September2023 | Threeproposals,includingtheProposalonChangingthePurposeofPartialRaisedCapitalUnusedweredeliberatedandapproved |
| 15thMeetingofthe10thBoardofDirectors | 26October2023 | 28October2023 | ItdeliberatedandapprovedProposalontheCompany’s2023Q3Report |
| 16thMeetingofthe10thBoardofDirectors | 6November2023 | 7November2023 | ItdeliberatedandapprovedProposalonNotLoweringtheConversionPriceofLuThaiConvertibleBonds |
| 17thMeetingofthe10thBoardofDirectors | 26December2023 | 27December2023 | Seventeenproposals,includingProposalonAmendingCertainClausesoftheArticlesofAssociationofLuThaiTextileCo.,Ltd.weredeliberatedandapproved |
2.AttendanceofDirectorsatBoardMeetingsandGeneralMeetings
| Attendanceofdirectorsatboardmeetingsandgeneralmeetings | |||||||
| Director | Totalnumberofboardmeetingsthedirectorwaseligibletoattend | Boardmeetingsattendedonsite | Boardmeetingsattendedbywayoftelecommunication | Boardmeetingsattendedthroughaproxy | Boardmeetingsthedirectorfailedtoattend | Thedirectorfailedtoattendtwoconsecutiveboardmeetings(yes/no) | Generalmeetingsattended |
| LiuZibin | 13 | 13 | 0 | 0 | 0 | No | 3 |
| XuZhinan | 13 | 0 | 13 | 0 | 0 | No | 0 |
| LiuDeming | 13 | 13 | 0 | 0 | 0 | No | 2 |
| XuJianlyu | 13 | 0 | 13 | 0 | 0 | No | 0 |
| ZhengHuisheng | 13 | 0 | 13 | 0 | 0 | No | 0 |
| ZhangZhanqi | 13 | 13 | 0 | 0 | 0 | No | 2 |
| ZhangKeming | 13 | 13 | 0 | 0 | 0 | No | 3 |
| DuLixin | 13 | 13 | 0 | 0 | 0 | No | 2 |
| ZhouZhiji | 13 | 1 | 12 | 0 | 0 | No | 1 |
| QuDongmei | 13 | 1 | 12 | 0 | 0 | No | 0 |
| PengYanli | 13 | 0 | 13 | 0 | 0 | No | 0 |
| QuanYuhua | 13 | 1 | 12 | 0 | 0 | No | 0 |
Whyanydirectorfailedtoattendtwoconsecutiveboardmeetings:
Notapplicable.
3.ObjectionsRaisedbyDirectorsonMattersoftheCompanyIndicatebytickmarkwhetheranydirectorsraisedanyobjectionsonanymatteroftheCompany.
□Yes?NoNosuchcasesintheReportingPeriod.
4.OtherInformationaboutthePerformanceofDutybyDirectors
IndicatebytickmarkwhetheranysuggestionsfromdirectorswereadoptedbytheCompany.?Yes□NoSuggestionsfromdirectorsadoptedornotadoptedbytheCompanyDuringtheReportingPeriod,directorsoftheCompanycarriedouttheirworkconscientiouslyandresponsiblyinstrictaccordancewiththeCompanyLaw,SecuritiesLaw,ListedCompanyGovernanceStandards,Self-RegulatoryGuidelinesNo.1forCompaniesListedonShenzhenStockExchange-StandardOperationofListedCompaniesontheMainBoard,ArticlesofAssociationandRulesofProcedureoftheBoardofDirectors.BasedontheCompany'sreality,theymadescientificallysoundandcarefuldecisionsontheCompany'svariousreviewedmatters,andformedopinionsthroughfullcommunicationanddiscussion.TheyresolutelysupervisedandpromotedtheimplementationoftheresolutionsoftheBoardofDirectorstoensurescientific,timelyandefficientdecision-makingandfullysafeguardthelegitimaterightsandinterestsoftheCompanyandallshareholders.
VIIPerformanceofDutybySpecializedCommitteesundertheBoardintheReportingPeriod
| Committee | Members | Numberofmeetings | Conveneddate | Content | Importantopinionsandsuggestionsraised | Otherinformationabouttheperformance | Detailsaboutissueswithobjections(ifany) |
| convened | ofduty | |||||
| AuditCommittee | ZhouZhiji,QuDongmei,andZhangKeming | 6 | 17January2023 | Mainly,theCompany'sfinancialstatementssubmittedtoGrantThorntonCertifiedPublicAccountantsLLPforpreliminaryauditwerereviewed,writtenopinionswereexpressed,andcommunicationwithLeaderofannualauditaccountantprojectwasconducted. | Theopinionswereasfollows:(1)PreparingtheCompany'sfinancialaccountingstatementsinaccordancewiththeCompany'saccountingpoliciesandapplyingaccountingpoliciesproperly,itcarriedoutaccountingestimatefullyandreasonably,whichconformedtotheNewAccountingStandardforBusinessEnterprises,accountingsystemforenterprisesandtherequirementsofrelevantprovisionsissuedbytheMinistryofFinance;(2)UnitstatementsoftheCompany'sfinancialstatementsthatwereincludedinthescopeofconsolidationwerecomplete,whilethestatementconsolidationbasiswasaccurate;(3)ThefinancialstatementsoftheCompanywereobjective,trueandaccurate,withoutanymajor | - |
| misstatementoromission;(4)Andduetothefactthattherestillisaperiodoftimefromthedayforreviewofthefinancialstatementstothedayforauditreportandfinancialstatementrelease,theFinancialManagementDepartmentoftheCompanywassubmittedtofocusonandcopewithpostbalancesheetevents,soastoensurethefairness,authenticityandintegrityofthefinancialstatements.TheAuditCommitteethoughtthatthefinancialaccountingstatementscouldbesubmittedtoAnnualCertifiedPublicAccountantforauditaccordingtoannualauditplan. | |||
| 10April2023 | Thefollowingmattersweremainlyaudited:(1)TheCompany's2022AnnualFinancialReportauditedbytheaccountingfirm.(2)ConclusionReportontheCompany'sAuditWorkforthe2022AnnualFinancialReport | (1)Regardingthewrittenopinionissuedaftertheaccountingfirm'spreliminaryauditopinionontheCompany'sfinancialstatements:The | - |
| conductedbyGrantThorntonCertifiedPublicAccountantsLLP.(3)ProposalontherenewalofGrantThorntonCertifiedPublicAccountantsLLPAstheCompany's2023AnnualFinancialAuditandInternalControlAuditInstitution.(4)2022InternalControlAssessmentReportandissuanceofwrittenassessmentopinions(5)Reportofthe2022AnnualDepositandUseoftheRaisedFunds.(6)ReportontheImplementationofthe2022AnnualInternalAuditPlan.(7)2023AnnualInternalAuditPlan. | procedureoffinancialstatementpreparationwasreasonableandnormativeastheCompanyconformedtotheNewAccountingStandardforBusinessEnterprisesandrelevantprovisionsoftheCompany'sfinancialsystem,whichfairlyreflectedtheCompany'sassets,liabilities,shareholders'equityandoperatingresultsby31December2022,whichweretrue,accurateandcomplete.TheAuditCommitteethoughtthattheCompany's2022AnnualFinancialAccountingReportthatwaspreliminarilyapprovedbyGrantThorntonCertifiedPublicAccountantsLLPcouldbesubmittedtothe7thMeetingofthe10thBoardofDirectorsforreview.(2)RegardingthewrittenopinionissuedontheCompany's2022internalcontrolself- |
| Company'sinternalcontrolsystemissound,andinternalcontrolsareeffective.TheAuditCommitteethoughtthatthe2022InternalControlSelf-evaluationReportcouldbesubmittedatthe7thMeetingofthe10thBoardofDirectorsforreview. | |||
| 25April2023 | Thefollowingmattersweremainlyaudited:(1)2023Q1Report;(2)ReportoftheDepositandUseoftheRaisedFundsinQ12023;(3)ReportontheImplementationofInternalAuditPlanof2023Q1. | Thefollowingproposalswereadoptedbyvotingatthemeeting:2023Q1Report,SpecialReportoftheDepositandUseoftheRaisedFundsinQ12023,ReportontheImplementationofInternalAuditPlanofQ12023. | - |
| 7August2023 | Mainly,thefollowingmattersweredeliberated:(1)SpecialInterimReport2023oftheDepositandUseoftheRaisedFunds.(2)InterimReport2023ontheImplementationofInternalAuditPlan(3)InterimFinancialStatementsReportof2023. | Thefollowingproposalswereadoptedbyvotingatthemeeting:SpecialInterimReport2023oftheDepositandUseoftheRaisedFunds,InterimReport2023ontheImplementationofInternalAuditPlan,InterimFinancialStatements | - |
| Reportof2023. | ||||||
| 19October2023 | Mainly,thefollowingmattersweredeliberated:(1)SpecialReportontheDepositandUseoftheRaisedFundsof2023ThirdQuarter.(2)ReportontheImplementationofInternalAuditPlanof2023ThirdQuarter.(3)FinancialStatementsof2023Q3. | Thefollowingproposalswereadoptedbyvotingatthemeeting:SpecialReportontheDepositandUseoftheRaisedFundsof2023ThirdQuarter,ReportontheImplementationofInternalAuditPlanof2023ThirdQuarter,FinancialStatementsof2023Q3. | - | |||
| 10November2023 | ThetimearrangementfortheCompany's2023annualfinancialauditworkwasnegotiated. | Thetimearrangementplanfor2023annualfinancialauditworkwasunanimouslydeterminedatthemeetingthroughthenegotiationwiththe2023annualauditinstitution,GrantThorntonCertifiedPublicAccountantsLLP,oftheCompany. | - | |||
| RemunerationCommittee | PengYanli,LiuZibin,ZhouZhiji,andQuDongmei | 2 | 10April2023 |
Themaintopicofthemeetingwas:(1)TheProposalofLuThaiTextileCo.,Ltd.ontheAppraisalResultsofDirectorsandSeniorManagementPersonnelin2022.(2)TheAppraisalReportonthePerformanceofthe2022RestrictedShareIncentive
| Thefollowingproposalswereadoptedbyvotingatthemeeting:TheProposalofLuThaiTextileCo.,Ltd.ontheAppraisalResultsofDirectorsandSeniorManagementPersonnelin2022,TheAppraisal | - |
| Scheme(reservedportion).(3)TheProposalontheAchievementofLiftingtheRestrictionConditionsintheFirstRestrictionPeriodfortheReservedGrantofthe2021RestrictedShareIncentiveScheme. | ReportonthePerformanceofthe2022RestrictedShareIncentiveScheme(reservedportion),TheProposalontheAchievementofLiftingtheRestrictionConditionsintheFirstRestrictionPeriodfortheReservedGrantofthe2021RestrictedShareIncentiveScheme.Meanwhile,thesubmissionofthefirstandthirdproposaltothe7thMeetingofthe10thBoardofDirectorsfordeliberationwasapproved. | ||
| 22May2023 | Themaintopicsofthemeetingwere:(1)TheAppraisalReportonthePerformanceofthe2022RestrictedShareIncentiveScheme.(2)TheProposalontheAchievementofLiftingtheRestrictionConditionsintheSecondRestrictionPeriodfortheFirstGrantofthe2021RestrictedShareIncentiveScheme. | Thefollowingproposalswereadoptedbyvotingatthemeeting:TheAppraisalReportonthePerformanceofthe2022RestrictedShareIncentiveSchemeandTheProposalontheAchievementofLiftingtheRestrictionConditionsintheSecondRestrictionPeriodfortheFirstGrantofthe2021Restricted | - |
| ShareIncentiveScheme.Meanwhile,thesubmissionofthesecondproposaltothe9thMeetingofthe10thBoardofDirectorsfordeliberationwasapproved. | ||||||
| StrategyCommittee | LiuZibin,XuZhinan,LiuDeming,XuJianlyu,ZhengHuisheng,ZhangZhanqi,ZhangKeming,DuLixin,ZhouZhiji,QuDongmei,PengYanli,QuanYuhua | 1 | 10April2023 | TheStrategicPlanningofLuThaiTextileof2023to2026(2023RevisedVersion)wasdeliberated. | Thefollowingproposalwasapprovedbyvotingatthemeeting:TheStrategicPlanningofLuThaiTextileof2023to2026(2023RevisedVersion). | - |
| NominationCommittee | QuDongmei,LiuZibin,XuZhinan,ZhouZhiji,PengYanli | 0 | - | - | - |
VIIIPerformanceofDutybytheSupervisoryCommittee
IndicatebytickmarkwhethertheSupervisoryCommitteefoundanyrisktotheCompanyduringitssupervisionintheReportingPeriod.
□Yes?NoTheSupervisoryCommitteeraisednoobjectionsintheReportingPeriod.IXEmployees
1.Number,FunctionsandEducationalBackgroundsofEmployees
| Numberofin-serviceemployeesoftheCompanyastheparentattheperiod-end | 8,168 |
| Numberofin-serviceemployeesofmajorsubsidiariesattheperiod-end | 15,354 |
| Totalnumberofin-serviceemployees | 23,522 |
| TotalnumberofpaidemployeesintheReportingPeriod | 23,522 |
| NumberofretireestowhomtheCompanyastheparentoritsmajorsubsidiariesneedtopayretirementpensions | 0 |
| Functions | |
| Function | Employees |
| Production | 17,655 |
| Sales | 430 |
| Technical | 4,728 |
| Financial | 110 |
| Administrative | 599 |
| Total | 23,522 |
| Educationalbackgrounds | |
| Educationalbackground | Employees |
| Doctor | 3 |
| Master | 88 |
| Bachelor | 1,456 |
| College | 4,362 |
| Highschoolandbelow | 17,613 |
| Total | 23,522 |
2.EmployeeRemunerationPolicy
TheCompanyhasformulatedaremunerationmanagementsystemwithitsprinciplebeing“paymentaccordingtoone’sworkandmorepayformorework”.ThroughpostevaluationandthroughresearchesofSocialsalarylevelscarriedoutasmulti-faceted,aswellastheformulationofthereasonablesalarymanagementsystem,fullydemonstratestheinternalfairness,self-fairnessandexternalfairness.Ithasgreatlymotivatedtheemployeesandenhancedthecorporatemanagement.
3.EmployeeTrainingPlans
TrainingswillbecarriedoutaccordingtorequirementsoftheCompany’sstrategicdevelopmentplanning,improvementofemployees’capability,performancemanagement,employees’careerplanning,etc.Theannualtrainingplanisdeterminedbycarryingoutresearchesontrainingneeds.Andthetrainingcoursesfallintothreemajorcategories,i.e.management,technicalskillsandgeneralknowledge.Throughthesetrainings,theCompanywillimprovetheknowledgestructureofitsemployees,improvetheirjobskillsandincreasetheircomprehensivequalitytoprovideexcellenthumanresourcesforthelong-term,sustainedandstabledevelopmentoftheCompany.
4.LaborOutsourcing?Applicable□Notapplicable
| Totalman-hours(hour) | 286,649 |
| Totalrewardspaid(RMB) | 3,475,624.50 |
XProfitDistributions(intheFormofCashand/orStock)
Howtheprofitdistributionpolicy,especiallythecashdividendpolicy,wasformulated,executedorrevisedintheReportingPeriod:
□Applicable?NotapplicableIndicatebytickmarkwhethertheCompanyfailstoputforwardacashdividendproposalforshareholdersdespitethefactsthattheCompanyhasmadeprofitsintheReportingPeriodandtheprofitsoftheCompanyastheparentdistributabletoshareholdersarepositive.
□Applicable?NotapplicableFinaldividendplanfortheReportingPeriod
?Applicable□Notapplicable
| Bonussharesforevery10shares(share) | 0 |
| Dividendforevery10shares(RMB)(taxinclusive) | 1.30 |
| Bonusissuefromcapitalreserves(share/10shares) | 0 |
| Totalsharesasthebasisfortheprofitdistributionproposal(share) | 817,431,206 |
| Cashdividends(RMB)(taxinclusive) | 106,266,056.78 |
| Cashdividendsinotherforms(suchassharerepurchase)(RMB) | 172,571,885.18 |
| Totalcashdividends(includingthoseinotherforms)(RMB) | 278,837,941.96 |
| Distributableprofit(RMB) | 5,923,889,542.37 |
| Totalcashdividends(includingthoseinotherforms)as%oftotalprofitdistribution | 100% |
| Cashdividendpolicy | |
| IftheCompanyisinamaturedevelopmentstageandhasplansforanysignificantexpenditure,inprofitallocation,theratioofcashdividendsintheprofitallocationshallbe40%orabove. | |
| Detailsabouttheproposalforprofitdistributionandconvertingcapitalreserveintosharecapital | |
| TheCompanyplanstodistributeacashdividendofRMB1.30(inclusiveoftax)forevery10shares,basedonacapitalbaseof817,431,206sharesfollowingthecompletionoftherepurchaseandcancellationofBshares.ThetotalamountofdividendscalculatedonthisbasisisRMB106,266,056.78.TheindividualincometaxforAShareshallbesubjecttorelatedregulationsunderCS[2015]No.101NoticeonCertainQuestionabouttheDifferentiatedIndividualIncomeTaxPolicyforCashDividendofListedCompaniesjointlyissuedbyMinistryofFinance,SAT,andCSRC;andthatforBShareshallbeconversedtoHKDbasedonthecentralparityrateoninterbankexchangemarketreleasedbythePeople’sBankofChinaonthefollowingdayaftershareholder’smeeting(fordomesticindividualshareholders,taxispaidpursuanttoCS[2015]No.101;forforeignshareholders,taxisfreepursuanttoCSZ(1994)No.020regulations;andnon-residentialcorporateshareholdersisentitledtoa10%reductionofenterpriseincometaxaccordingtorelatedregulationsunderEnterpriseIncomeTaxLawofthePeople’sRepublicofChina).SincetheCompanyisintheperiodoftransferringconvertiblebondsintoshares,theprofitdistributionwillbeconductedbasedonthetotalsharecapitalontheequityregistrationdateforimplementingthisprofitdistributionplanwithnochangeintheamountpershare. | |
XIEquityIncentivePlans,EmployeeStockOwnershipPlansorOtherIncentiveMeasuresforEmployees
?Applicable□Notapplicable
1.EquityIncentive
| No. | Deliberationtime | Relevantmeeting | Overviewofexecution | Disclosureindex |
| 1 | 10April2023 | 7thMeetingofthe10thBoardofDirectorsand6thMeetingofthe10thSupervisoryCommittee | TheBoardofDirectorsreviewedandapprovedtheProposalontheAchievementofLiftingtheRestrictionConditionsintheFirstRestrictionPeriodfortheReservedSharesforGrantunderthe2021RestrictedShareIncentiveSchemeandtheProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveCondition.Theindependentdirectorsconsentedindependentlytorelevantmatters.TheSupervisoryCommitteereviewedandapprovedtheforegoingtwoproposalsandissuedthewrittenreviewopinions.BeijingDHHLawFirmQingdaoOfficeissuedalegalopinion.Thenumberofthesubjectsofincentiveparticipatingintheassessmentinthefirstrestrictionperiodforthereservedgrantofthe2021restrictedshareincentiveschemeoftheCompanywereupto343,allofthemmeettheconditionstobereleased,andthetotalamountofrestrictedsharesthatcanbereleasedwas2,919,000.Therestrictedsharesreleasedthistimewerelistedandtradedon9May2023. | Fordetails,seetherelevantannouncementsdisclosedon12April2023onwww.cninfo.com.cn. |
| 2 | 5May2023 | - | ItissuedtheIndicativeAnnouncementontheTradingontheMarketofLiftingtheRestrictionintheFirstRestrictionPeriodfortheReservedShares | Fordetails,seetherelevantannouncement(No.:2023-027)disclosedon5May |
| forGrantofthe2021RestrictedShareIncentiveScheme. | 2023onwww.cninfo.com.cn. | |||
| 3 | 12May2023 | 2022AnnualGeneralMeeting | ItdeliberatedonandapprovedtheProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveConditionanddisclosedtheAnnouncementofCapitalReductiononRepurchaseandCancelPartialRestrictedShareson13May2023. | Fordetails,seetherelevantannouncementsdisclosedon13May2023onwww.cninfo.com.cn. |
| 4 | 26May2023 | 9thMeetingofthe10thBoardofDirectorsandthe8thMeetingofthe10thSupervisoryCommittee | TheBoardofDirectorsreviewedandapprovedtheProposalontheAchievementofLiftingtheRestrictionConditionsintheSecondRestrictionPeriodfortheFirstGrantofthe2021RestrictedShareIncentiveScheme.TheCompany'sindependentdirectorsexpressedtheirindependentopinionsonrelevantmatters.TheBoardofSupervisorsreviewedandapprovedtheProposalontheAchievementofLiftingtheRestrictionConditionsintheSecondRestrictionPeriodfortheFirstGrantofthe2021RestrictedShareIncentiveSchemeandexpresseditswrittenreviewopinion.Thenumberofsubjectsofincentivemeetingtherestrictionliftingconditionsinthesecondrestrictionperiodforthefirstgrantunderthe2021RestrictedShareIncentiveSchemeoftheCompanywasupto717,andatotalof6,979,500restrictedshareswereliftedoutofrestrictions.Theforegoingshareswerelistedandtradedon8June2023. | Fordetails,seetherelevantannouncementsdisclosedon27May2023onwww.cninfo.com.cn. |
| 5 | 1June2023 | - | ItissuedtheIndicativeAnnouncementontheTradingontheMarketofLiftingtheRestrictionintheSecondRestrictionPeriodfortheFirstGrantofthe2021RestrictedShareIncentiveScheme. | Fordetails,seetherelevantannouncement(No.:2023-040)disclosedon1June2023onwww.cninfo.com.cn. |
| 6 | 13July2023 | - | AsauditedandconfirmedbyShenzhenStockExchangeandtheShenzhenBranchofChinaClear,theproceduresofrepurchasingandcanceling90,000sharesofauthorizedandunlockedrestrictedshareoftheincentivepersonnelnotconformingtotheincentiveconditionwerecompleted. | Fordetails,seetherelevantannouncement(No.:2023-056)disclosedon13July2023onwww.cninfo.com.cn. |
Equityincentivesfordirectors,supervisorsandseniormanagementintheReportingPeriod:
?Applicable□Notapplicable
Unit:share
| Name | Officetitle | Shareoptionsheldattheperiod-begin | ShareoptionsgrantedintheReportingPeriod | SharesfeasibletoexerciseduringtheReportingPeriod | SharesexercisedduringtheReportingPeriod | ExercisepriceofexercisedsharesduringtheReportingPeriod(RMB/share) | Shareoptionsheldattheperiod-end | Marketpriceattheperiod-end(RMB/share) | Numberofrestrictedsharesheldattheperiod-begin | NumberofreleasedsharesfortheReportingPeriod | NumberofrestrictedsharesnewlygrantedduringtheReportingPeriod | Thegrantpriceofrestrictedshares(RMB/share) | Numberofrestrictedsharesheldattheperiod-end |
| ZhangZhanqi | Director,VicePresident,ControllerofGlobalMarketi | 380,000 | 190,000 | 190,000 |
| ngDepartment | |||||||||||||
| ZhangKeming | Director,BoardSecretary,ChiefAccountant,ControllerofFinancialManagementDepartment | 220,000 | 110,000 | 110,000 | |||||||||
| DuLixin | Director,ChiefEngineer,ExecutiveDeanofLuThaiEngineeringTechnologyResearchInstitute | 220,000 | 110,000 | 110,000 | |||||||||
| ShangChenggang | Seniormanagement | 220,000 | 110,000 | 110,000 | |||||||||
| YuShouzheng | Seniormanagement | 220,000 | 110,000 | 110,000 | |||||||||
| LiWenji | Seniormanagement | 220,000 | 110,000 | 110,000 | |||||||||
| GuoHeng | Seniormanagement | 220,000 | 110,000 | 110,000 | |||||||||
| LyuWenquan | Seniormanagement | 140,000 | 70,000 | 70,000 | |||||||||
| XuFeng | Seniormanagement | 190,000 | 95,000 | 95,000 | |||||||||
| Total | -- | 0 | 0 | 0 | 0 | -- | 0 | -- | 2,030,000 | 1,015,000 | 0 | -- | 1,015,000 |
AppraisalofandincentiveforseniormanagementDuringtheReportingPeriod,theCompanyconstantlyimprovedtheperformanceevaluationmechanismandmadetheevaluationandincentiveoftheSeniorExecutivesconcernedwiththeCompany’sperformancesandtheindividualworkingresults.AccordingtotheoveralldevelopmentstrategyandtheannualoperatingtargetoftheCompanyattheperiod-begin,theCompanyconfirmstheannualperformancecomprehensiveindicationandthemanagementdutyofeachSeniorExecutives,andexecutestheperformance
examinationandtheredemptionoftherewardsandpunishmentfortheSeniorExecutivesbytheRemunerationandExaminationCommitteeaffiliatedtotheBoardofDirectorsattheyear-end.TheCompanywillconstantlyimprovetheevaluationandincentivemechanismthattotightlyconcernthesalaryoftheSeniorExecutiveswiththemanagementlevelandtheoperatingperformancesothattofullymobilizeandinspiretheinitiativeandcreativityofthem.
2.ImplementationofEmployeeStockOwnershipPlans
□Applicable?Notapplicable
3.OtherIncentiveMeasuresforEmployees
?Applicable□NotapplicableForthefirstrestrictedperiodofthereservedgrantofsharesofthe2021restrictedshareincentivescheme,therestrictedshareswerereleasedfortradingon9May2023.Excludingdirectorsandseniorexecutives,theCompanyliftedtherestrictionson2,519,000restrictedsharesfor336mid-levelmanagersandcorepersonnel.Forthesecondrestrictedperiodoftheinitialgrantofsharesofthe2021restrictedshareincentivescheme,therestrictedshareswerereleasedfortradingon8June2023.Excludingdirectorsandseniorexecutives,theCompanyliftedtherestrictionson6,349,500restrictedsharesfor707mid-levelmanagersandcorepersonnel.
XIIEstablishmentandExecutionoftheInternalControlSystemfortheReportingPeriod
1.EstablishmentandExecutionoftheInternalControlSystemAccordingtoFundamentalNormsforInternalControlofEnterprises,SupportingGuidelinesforInternalControlofEnterprisesandrelevantprovisionsprescribedbysecuritiesregulatorsfortheinternalcontrolestablishmentoflistedcompanies,combiningtheactualstatusoftheCompany'sbusiness,theCompanyestablishedtheinternalcontrolsystemthatcoversallstagesincludingproductionandmanagement,aswellasadaptstotheCompany'smanagementrequirementsanddevelopmentneeds.Itisrelativelynormativeandcomplete,forwhichitsorganizationiscompleteandreasonablydesigned,itsimplementationisbasicallyeffective,andthereisnosubstantialomission,soastoensurethattheCompany'soperationandmanagementislegalandcompliant,theassetsaresafe,andthefinancialreportsandrelatedinformationaretrueandcomplete,andmaintainthefundamentalinterestsofallshareholdersoftheCompany.WithinReportingPeriod,relevantsystemsandproceduresweretimelystreamlinedandoptimizedandthesoundoperationofriskmanagementandinternalcontrolsystemwasensuredbytheCompanyinlinewiththechangeofallbusinessproceduresandauditresults,withoutanyviolationoflaws,regulationsorArticlesofIncorporation.
2.MaterialInternalControlWeaknessesIdentifiedfortheReportingPeriod
□Yes?No
XIIIManagementandControloverSubsidiariesbytheCompanyfortheReportingPeriod
| Subsidiary | Integrationplan | Integrationprogress | Problem | Countermeasurestaken | Settlementprogress | Follow-upsettlementplan |
| - | - | - | - | - | - | - |
XIVInternalControlEvaluationReportorIndependentAuditor’sReportonInternalControl
1.InternalControlEvaluationReport
| Disclosuredateoftheinternalcontrolself-evaluationreport | 12April2024 | |
| Indextothedisclosedinternalcontrolself-evaluationreport | Fordetails,pleaserefertotheSelf-appraisalReportonInternalControlofLuThaiTextileCo.,Ltd.simultaneouslydisclosedonwww.cninfo.com.cnwiththe2023AnnualReportoftheCompany. | |
| Evaluatedentities’combinedassetsas%ofconsolidatedtotalassets | 82.15% | |
| Evaluatedentities’combinedoperatingrevenueas%ofconsolidatedoperatingrevenue | 88.12% | |
| Identificationstandardsforinternalcontrolweaknesses | ||
| Type | Weaknessesininternalcontroloverfinancialreporting | Weaknessesininternalcontrolnotrelatedtofinancialreporting |
| Naturestandard | Greatdefect:(1)malpracticesoftheDirectors,SupervisorsandSeniorExecutives;(2)theCPAfoundedthecurrentfinancialreportoccurredsignificantmisstatementwhileduringtheimplementationprocessoftheinternalcontrolcouldnotfoundedthemisstatement;(3)thesupervisionoftheAuditCommitteeandtheinternalauditinstitutionoftheCompanyontheinternalcontrolwasinvalid.(4)otherdefectsthatmaycausetheCompanytodeviatesignificantlyfromitscontrolobjectives.Significantdefeat:(1)hadnotabidebythegenerallyacceptedaccountingprinciplestochooseandapplytheaccountingpolicies;hadnotbuiltuptheanti-fraudandsignificantcounterbalancemechanismandcontrolmeasures;(2)duringthefinancialreportprocess,thereoccurredsingleormultipledefectswhichnotreachedtherecognitionstandardofthesignificantdefeatbutinfluencedthetrueandaccuratetargetofthefinancialreport.Generaldefect:otherinternalcontroldefectwhichhadnotconstructedasthegreatdefeat,significantdefect. | Greatdefect:(1)seriouslyviolatedthenationallawsandregulations;(2)thedecision-makingoftheenterprisewasnotscientificthatledtotheseriousmistakesofitself;(3)outflowofthemanagementpersonnelorthetechnicianpersonnelwasserious;(4)frequentlyappearedthenegativenewsfromtheMedia;(5)thesignificantbusinesslackedofsystematiccontrolorthesystematiccontrolwasinvalid;(6)theresultoftheinternalcontrolassessmentwhichwasthegreatdefecteventhadnotbeenrevised.Significantdefeat:(1)violatedtheenterpriseinternalregulationsthatcausedratherseriouslosses;(2)significantbusinesslackedofsystematiccontrol;(3)outflowoftheratherimportantpersonnelwasserious;(4)theMediareportedthenegativenewsthatcausedratherseriousnegativeinfluence;(5)ratherimportantbusinesslackedofsystematiccontrolorthesystematiccontrolwasinvalid;(6)theresultsoftheinternalcontrolassessmentwhichasthesignificantdefecthadnotbeenrevised.Generaldefect:otherinternalcontroldefectwhichhadnotconstructedasthegreatdefeat,significantdefect. |
| Quantitativestandard | Greatdefect:misstatement≥0.4%ofthetotaloperatingincome;misstatement≥0.4%ofthetotalowners’equitiesamount;misstatement≥0.3%ofthetotalassetsamount.Notinsignificant:0.2%ofthetotaloperatingincome;≤misstatement＜0.4%ofthetotaloperatingincome;0.2%ofthetotalowners’equitiesamount≤misstatement＜0.4%ofthetotalowners’equitiesamount;0.15%ofthetotalassetsamount≤misstatement＜0.3%ofthetotalassetsamount.Insignificant:misstatement<0.2%ofthetotaloperating | Greatdefect:losses≥0.4%ofthetotaloperatingincome;losses≥0.4%ofthetotalowners’equitiesamount;losses≥0.3%ofthetotalassetsamount.Greatdefect:0.2%ofthetotaloperatingincome≤losses＜0.4%ofthetotaloperatingincome;0.2%ofthetotalowners’equitiesamount≤losses＜0.4%ofthetotalowners’equitiesamount;0.15%ofthetotalassetsamount≤losses＜0.3%ofthetotalassetsamount.Generaldefect:losses<0.2%ofthetotaloperatingincome;losses<0.2%ofthe |
| income;misstatement<0.2%ofthetotalowners’equitiesamount;misstatement<0.15%ofthetotalassetsamount. | totalowners’equitiesamount;losses<0.15%ofthetotalassetsamount. | |
| Numberofmaterialweaknessesininternalcontroloverfinancialreporting | 0 | |
| Numberofmaterialweaknessesininternalcontrolnotrelatedtofinancialreporting | 0 | |
| Numberofseriousweaknessesininternalcontroloverfinancialreporting | 0 | |
| Numberofseriousweaknessesininternalcontrolnotrelatedtofinancialreporting | 0 | |
2.IndependentAuditor’sReportonInternalControl
?Applicable□Notapplicable
| Opinionparagraphintheindependentauditor’sreportoninternalcontrol | |
| AllshareholdersofLuThaiTextileCo.,Ltd.:AccordingtoAuditGuidelinesforEnterpriseInternalControlandtherelevantrequirementsofAuditingStandardsforChineseCertifiedPublicAccountants,wehaveauditedtheeffectivenessofinternalcontrolinthefinancialreportofLuThaiTextileCo.,Ltd.(Hereinafterreferredtoas"LuThaiTextile”)by31December2023.I.ResponsibilitiesofLuThaiTextileforinternalcontrolTheBoardofDirectorsofLuThaiTextileisresponsibleforestablishing,improvingandimplementationtheinternalcontrolsandevaluatingitseffectivenessinaccordancewithStandardforEnterpriseInternalControl,ApplicationGuidelinesforEnterpriseInternalControl,EnterpriseInternalControlAuditGuidelines.II.ResponsibilitiesofcertifiedpublicaccountantsItisourresponsibilitytoissueanauditopinionontheeffectivenessofinternalcontrolsinfinancialreportonthebasisoftheimplementationoftheaudit,andtodisclosesignificantdeficienciesintheinternalcontrolsofnon-financialreportsthathavebeennoted.III.InherentlimitationsofinternalcontrolInternalcontrolhasinherentlimitations,andthereisapossibilitythatmisreportingcannotbeprevented.Inaddition,becausethechangeofcircumstancesmaycausetheinternalcontroltobecomeinappropriateorthedegreeofcompliancewiththecontrolpoliciesandproceduresisreduced,itisriskytoinfertheeffectivenessofthefutureinternalcontrolbasedontheauditresultsoftheinternalcontrol.IV.AuditOpiniononInternalControlinFinancialReportWebelievethatLuThaiTextileCo.,Ltd.kepteffectivelyinternalcontrolonfinancialreportinginallrespectsaccordingtoEnterpriseInternalControlBasicSpecificationandtherelevantprovisionson31December2023. | |
| Independentauditor’sreportoninternalcontroldisclosedornot | Disclosed |
| Disclosuredate | 12April2024 |
| Indextosuchreportdisclosed | Fordetails,pleaserefertotheAuditor’sReportonInternalControlonwww.cninfo.com.cnatthesametimeofdisclosingtheCompany’s2023AnnualReport. |
| Typeoftheauditor’sopinion | Unmodifiedunqualifiedopinion |
| Materialweaknessesininternalcontrolnotrelatedtofinancialreporting | None |
Indicatebytickmarkwhetheranymodifiedopinionisexpressedintheindependentauditor’sreportontheCompany’sinternalcontrol.
□Yes?NoIndicatebytickmarkwhethertheindependentauditor’sreportontheCompany’sinternalcontrolisconsistentwiththeinternalcontrolself-evaluationreportissuedbytheCompany’sBoard.?Yes□No
XVRectificationsofProblemsIdentifiedbySelf-inspectionintheSpecialActionforListedCompanyGovernanceNotapplicable.
PartVEnvironmentalandSocialResponsibilityIMajorEnvironmentalIssuesIndicatebytickmarkwhethertheCompanyoranyofitssubsidiariesisaheavilypollutingbusinessidentifiedbytheenvironmentalprotectionauthoritiesofChina.?Yes□NoPoliciesandindustrystandardspertainingtoenvironmentalprotectionDuringproductionandoperation,LuThaiTextileCo.,Ltd.anditsholdingsubsidiaries,LuFengCompanyLimitedandShandongLulianNewMaterialsCo.,Ltd.,itswhollyownedsubsidiary,ZiboXinshengThermalPowerCo.,Ltd.,aresubjecttothefollowinglawsandregulationsandindustrystandardsrelatedtoenvironmentalprotection:TheEnvironmentalProtectionLawofthePeople’sRepublicofChina,theLawofthePeople’sRepublicofChinaonPreventionandControlofWaterPollution,theLawofthePeople’sRepublicofChinaonthePreventionandControlofAtmosphericPollution,theLawofthePeople’sRepublicofChinaonthePreventionandControlofSolidWastePollution,theContingencyManagementMeasuresforEnvironmentalEmergencies,theEmissionStandardsofWaterPollutantsinTextileDyeingandFinishingIndustry(GB4287-2012),theStandardforPollutionControlontheMunicipalSolidWasteIncineration(GB18485-2014),andtheEmissionStandardofAirPollutantsofThermalPowerPlants(DB37/664-2019).StatusofenvironmentalprotectionadministrativelicenseLuThaiTextileCo.,Ltd.anditsholdingsubsidiaries,includingLuFengCompanyLimited,ShandongLulianNewMaterialsCo.,Ltd.,andZiboXinshengThermalPowerCo.,Ltd.carriedoutpollutantdischargepermitmanagementandweregrantedthepollutantdischargepermitbytheEcologyandEnvironmentBureauofZibo.ThecurrentpollutantdischargepermitofLuThaiTextileCo.,Ltd.isvaliduntil9June2026;thatofLuFengCompanyLimitedisvaliduntil22November2026;thatofShandongLulianNewMaterialsCo.,Ltd.isvaliduntil25October2026;thatofZiboXinshengThermalPowerCo.,Ltd.isvaliduntil22June2025.Theregulationsforindustrialemissionsandtheparticularrequirementsforcontrollingpollutantemissionsthoseareassociatedwithproductionandoperationalactivities.
| Nameofpolluter | Typeofmajorpollutants | Nameofmajorpollutants | Wayofdischarge | Numberofdischargeoutlets | Distributionofdischargeoutlets | Dischargeconcentration/intensity | Dischargestandardsimplemented | Totaldischarge | Approvedtotaldischarge | Excessivedischarge |
| LuThaiTextileCo.,Ltd | Sewage | CODandammonianitrogen | Continuousdischarge | 2 | ChiefdischargeoutletofHuangjiapuIndustrialPark;chiefdischargeoutletofEastZone | COD≤200mg/L;ammonianitrogen≤20mg/L | EmissionstandardofwaterpollutantsintextiledyeingandfinishingindustryGB4287-2012 | COD：282.53t;ammonianitrogen:3.15t | COD:1495.08t;ammonianitrogen:149.51t | No |
| LuFengCompanyLimited | Sewage | CODandammonianitrogen | Continuousdischarge | 1 | ChiefdischargeoutletofLuFeng | COD≤200mg/L;ammonianitrogen≤20mg/ | Emissionstandardofwaterpollutant | COD：153t;ammonia | CODis653.53t;ammonianitrogen | No |
| CompanyLimited | L | sintextiledyeingandfinishingindustryGB4287-2012 | nitrogen:2.44t | is65.3t | ||||||
| ShandongLulianNewMaterialsCo.,Ltd. | Sewage | CODandammonianitrogen | Continuousdischarge | 1 | ChiefdischargeoutletofLulianNewMaterials | COD≤200mg/L;ammonianitrogen≤20mg/L | EmissionstandardofwaterpollutantsintextiledyeingandfinishingindustryGB4287-2012 | COD：28.42t;ammonianitrogen:0.44t | CODis175.30t;ammonianitrogenis17.5t | No |
| ZiboXinshengThermalPowerCo.,Ltd. | Wastegas | SO2,NQx,andPM | Organizedcontinuousdischarge | 4 | Productionplant | SO2：≤35mg/m3、NQx：≤50mg/m3,PM：≤5mg/m3 | EmissionstandardofairpollutantsofThermalPowerPlantinShandongProvinceDB37/664-2019 | SO2:34.92t、NQx:122.4t,PM:4.99t | SO2is236.13t/a,NQx:674.63t/a,PM:67.47t/a. | No |
TreatmentofpollutantsLuThaiTextileCo.,Ltd.(hereinafterreferredtoas“theCompany”)anditsmajority-ownedsubsidiaryLufengWeaving&DyeingCo.,Ltd.(hereinafterreferredtoas“LufengWeaving&Dyeing”)andShandongLulianNewMaterialsCo.,Ltd.(hereinafterreferredtoas“LulianNewMaterials”)strictlyimplementthe“ThreeSimultaneous”managementsystemforenvironmentalprotectioninprojectconstructions.Thecompaniesareequippedwithcompletefacilitiesforwastegasandwastewatertreatment.LuThaiTextileCo.,Ltd.anditsmajority-ownedsubsidiaryLufengWeaving&DyeingCo.,Ltd.andShandongLulianNewMaterialsCo.,Ltd.continuouslyoptimizethedyeingwastewatertreatmentprogress,improvethetreatedwaterquality,ensurethatthepollutantemissionconcentrationisbetterthanthenationalstandard,furtherimprovetheriverwaterqualityandlocalecologicalenvironment.TheCompanyandLufengWeaving&Dyeingcentralizedlycollectedandcopedwiththedyeingandfinishingwastegas,soastogreatlyreducethepollutantemissionconcentration.Onlinesupportingmonitoringfacilitieswerebuilt,whosedatawasuploadedtothegovernmentenvironmentalmonitoringsystem,tocomprehensivelymonitortheCompany'semissionpollutantssuchaswastewaterandwastegas.Supportteamsweresetuptoberesponsiblefordailyoperationmaintenanceandinspectiontoguaranteethenormaloperationoffacilities.Boththeexhaustemissionandwastewaterdischargemeettheemissionstandards.Thewholly-ownedsubsidiaryZiboXinshengThermalPowerCo.,Ltd.(hereinafterreferredtoas“XinshengThermalPower”)enforcesthe“ThreeSimultaneous”managementsystemforenvironmentalprotectioninextensionprojectconstructioninaccordancewiththegovernmentrequirements,andadoptsthe“limestone-gypsummethod”toreduceemissionconcentrationofsulfurdioxide,the“Low-nitrogencombustion+SNCR”and“SNCR+SCRmethod”toreduceemissionconcentrationofnitrogenoxides,andthe“electric-bagelectrostaticprecipitator+wetelectrostaticprecipitator”toreducesootemissionconcentration.Theoverallsystemworkswell.
EmergencyplanforenvironmentalincidentsInordertopreventenvironmentalpollutionaccidents,theCompanyandtheholdingsubsidiaryLufengWeaving&DyeingandLulianNewMaterialsrespectivelypreparedtheEmergencyPlanforEnvironmentalIncidents,whichwerefiledwithZiboEnvironmentalProtectionBureauZichuanBranch.ThePlanincludescontentssuchasenvironmentalrisksourcesidentificationandriskassessment,preventionandearlywarningmechanism,emergencysecurity,andsupervisionandmanagement.Thewholly-ownedsubsidiaryZiboXinshengThermalPowerCo.,Ltd.hasformulatedthe“EmergencyPlanforEnvironmentalIncidents”andfileditwiththeecologicalandenvironmentalmanagementdepartment.Theidentificationandriskassessmentofenvironmentalrisksources,preventionandearlywarningmechanisms,emergencyprotectionandsupervisionandmanagementwereincludedintheplan.Environmentalself-monitoringprogramInaccordancewiththerequirementsofthecompetentenvironmentauthorities,theCompanyandtheholdingsubsidiaryLufengWeaving&DyeingandLulianNewMaterialsobservedtherequirementsofthesuperiorenvironmentalprotectiondepartmenttoinstallautomaticwastewatermonitoringfacilitiesandachievereal-timemonitoringofwastewaterdischarge.Besides,theautomaticenvironmentmonitoringplanwaspreparedasrequiredbyemissionpermit.Inaddition,theyinvitedaqualifiedtestinginstitutiontoconducttestsonsewageandwastegasbasedonthefrequencyofmonitoring,disclosedthemonitoringdataintime,andsubmittedthetestreportstothecompetentenvironmentauthoritiesensuringthemonitoringdataistrueandvalid.Thewholly-ownedsubsidiaryZiboXinshengThermalPowerCo.,Ltd.hasimplementedonlinereal-timemonitoringofenvironmentaldatainaccordancewiththerequirementsofthesuperiorenvironmentalprotectiondepartment,andhasachievedemissionstandards.InputinenvironmentgovernanceandprotectionandpaymentofenvironmentalprotectiontaxDuringtheReportingPeriod,theinputinenvironmentgovernanceandprotectionandpaymentofenvironmentalprotectiontaxfortheCompanyandtheholdingsubsidiaryLufengWeaving&DyeingandLulianNewMaterialsareRMB49,367,700intotal,amongwhich,RMB48,367,000forinputinenvironmentgovernanceandprotectionandRMB1,000,700forpaymentofenvironmentalprotectiontax.MeasurestakentodecreasecarbonemissionintheReportingPeriodandcorrespondingeffects?Applicable□NotapplicableNone.AdministrativepenaltiesimposedforenvironmentalissuesduringtheReportingPeriod
| Name | Reason | Case | Result | Influenceonproductionandoperation | Rectificationmeasures |
| N/A | N/A | N/A | N/A | N/A | N/A |
OtherenvironmentinformationthatshouldbedisclosedNoOtherrelatedenvironmentprotectioninformationNoTheCompanyshallabidebyrelevantdisclosurerequirementsoftheSelf-RegulatoryGuidelinesofShenzhenStockExchangeforListedCompaniesNo.3-IndustryInformationDisclosureontextileandgarmentindustry.RelatedenvironmentalaccidentsinformationNo
IISocialResponsibility
TheCompanyhaspreparedtheSustainabilityReport2022,andformoredetails,pleaserefertotheSustainabilityReport2023simultaneouslydisclosedwiththeAnnualReport2023.IIIConsolidationandExpansionofPovertyAlleviationOutcomes,andRuralRevitalization
Notapplicable
PartVISignificantEvents
IFulfillmentofCommitments
1.CommitmentsoftheCompany’sDeFactoController,Shareholders,RelatedPartiesandAcquirers,aswellastheCompanyItselfandOtherEntitiesFulfilledintheReportingPeriodorOngoingatthePeriod-End
?Applicable□Notapplicable
| Commitment | Promisor | Typeofcommitment | Detailsofcommitment | Dateofcommitmentmaking | Termofcommitment | Fulfillment |
| CommitmentsmadeintimeofIPOorrefinancing | Controllingshareholder,actualcontroller | DilutionofatsightreturnsonpublicofferingA-shareconvertiblecorporatebonds | 1.NotintervenetheCompany’soperationandmanagementbeyondtheauthorityandnotoccupytheCompany’sinterests.2.FromtheissuancedateofthiscommitmenttothecompletionoftheimplementationoftheCompany'spublicofferingofA-shareconvertiblecorporatebonds,iftheCSRCmakesothernewregulatoryprovisionsonremedialmeasuresforreturnsandthecommitment,andtheabovecommitmentfailstomeettherequirementsoftheCSRC,thecompany/IpromisetoissuesupplementarycommitmenttheninaccordancewiththelatestregulationsofCSRC.3.CommitmentismadetofulfilltheCompany'srelevantremedialmeasuresforreturnsandanycommitmentmadehereinbythecompany/me.Ifthecompany/Iviolate(s)suchcommitmentandcause(s)lossestotheCompanyorinvestors,thecompany/IwillbearthecompensationresponsibilitytotheCompanyorinvestorsinaccordancewiththelaw. | 23May2019 | From23May2019to8April2026 | On-going |
| Directorsandseniormanagementofthe | Dilutionofatsightreturnsonpublicoffering | 1.Commitmentismadenottotransferbenefitstootherunitsorindividualsfreeofchargeorunderunfairconditions,andnootherwaysdamagingtheinterestsoftheCompanywillbetaken.2.IwillstrictlyabidebythebudgetmanagementoftheCompany,andacceptthestrictsupervisionand | 23May2019 | From23May2019to8April2026 | On-going |
| Company | A-shareconvertiblecorporatebonds | managementoftheCompanytoavoidwasteorexcessiveconsumption.Anyposition-relatedconsumptionbehaviorsofmewilloccurwithinthescopenecessaryfortheperformanceofmyduties.3.CommitmentismadenottousetheCompany'sassetstoengageininvestmentandconsumptionactivitiesunrelatedtotheperformanceofduties.4.CommitmentismadethattheremunerationsystemdevelopedbytheBoardofDirectorsortheRemunerationCommitteeislinkedtotheimplementationoftheCompany'sremedialmeasuresforreturns.5.CommitmentismadethattheconditionsforexercisingtheEquityIncentivePlantobeissuedinthefuturewillbelinkedtotheimplementationoftheCompany'sremedialmeasuresforreturns.6.FromtheissuancedateofthiscommitmenttothecompletionoftheimplementationoftheCompany'spublicofferingofA-shareconvertiblecorporatebonds,iftheCSRCmakesothernewregulatoryprovisionsonremedialmeasuresforreturnsandthecommitment,andtheabovecommitmentfailstomeettherequirementsoftheCSRC,IpromisetoissuesupplementarycommitmenttheninaccordancewiththelatestregulationsofCSRC.7.CommitmentismadetofulfilltheCompany'srelevantremedialmeasuresforreturnsandanycommitmentmadehereinbyme.IfIviolatesuchcommitmentandcauseslossestotheCompanyorinvestors,IwillbearthecompensationresponsibilitytotheCompanyorinvestorsinaccordancewiththelaw. | ||||
| Othercommitments | Controllingshareholder | Commitmenttonotreducecompanyshare | BasedonconfidenceintheCompany'sfuturedevelopmentandvaluejudgment,tomaintainstabilityinthecapitalmarket,andtopromotetheCompany'scontinuous,stable,andhealthydevelopment,aswellastoprotecttheinterestsofthevastnumberofinvestors,theCompany's | 23August2023 | 23August2023to22August2024 | On-going |
| holdingswithinthenextyear | controllingshareholderscommit:Fromthedateofsigningthiscommitment,nottoreducetheirholdingsoftheCompany'ssharesforaperiodofoneyear,includinganyadditionalsharesarisingduringthecommitmentperiodduetocapitalreservecapitalisation,distributionofstockdividends,rightsissues,oradditionalissues,etc. | |||
| Executedontimeornot | Yes | |||
2.WheretherehadbeenanearningsforecastforanassetorprojectandtheReportingPeriodwasstillwithintheforecastperiod,explainwhytheforecasthasbeenreachedfortheReportingPeriod.
□Applicable?NotapplicableIIOccupationoftheCompany’sCapitalbytheControllingShareholderoranyofItsRelatedPartiesforNon-OperatingPurposes
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
IIIIrregularitiesintheProvisionofGuarantees
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
IVExplanationsGivenbytheBoardofDirectorsRegardingtheLatest“ModifiedOpinion”ontheFinancialStatements
□Applicable?Notapplicable
VExplanationsGivenbytheBoardofDirectors,theSupervisoryBoardandtheIndependentDirectors(ifany)RegardingtheIndependentAuditor's“ModifiedOpinion”ontheFinancialStatementsoftheReportingPeriod
□Applicable?Notapplicable
VIYoYChangestoAccountingPolicies,EstimatesorCorrectionofMaterialAccountingErrors?Applicable□NotapplicableInNovember2022,MOFissuedtheInterpretationNo.16oftheAccountingStandardsforBusinessEnterprises(C.K.[2022]No.
31)(hereinafterreferredtoasthe"InterpretationNo.16").InterpretationNo.16stipulatesthatforsingletransactionsthatarenotbusinesscombinations,thataffectneitheraccountingprofit
nortaxableincome(ordeductiblelosses)atthetimethetransactionoccurs,andwheretheinitialrecognitionofassetsandliabilitiesresultsintaxabletemporarydifferencesanddeductibletemporarydifferencesofequalamountsshould,inaccordancewiththeNo.18oftheAccountingStandardsforBusinessEnterprises-IncomeTaxesandotherrelevantregulations,berecognizedasdeferredincometaxliabilitiesanddeferredincometaxassets,respectively,atthetimeofthetransaction.Fortransactionsthatoccurredbetweenthebeginningoftheearliestperiodpresentedinthefinancialstatementsandthedateofimplementationoftheaforementionedregulations,enterprisesshould,inaccordancewiththesaidregulations,adjustthecumulativeeffectontheopeningretainedearningsoftheearliestperiodpresentedinthefinancialstatementsandotherrelatedfinancialstatementitems.Theaforementionedaccountingtreatmentregulationsshallcomeintoforcefrom1January2023.Fortheleaseliabilitiesandright-of-useassetsrecognisedbytheCompanyinitsleasingoperations,aswellastherecognisedprovisionsforobligationstodismantleandthecorrespondingassets,whichgeneratetaxabletemporarydifferencesanddeductibletemporarydifferences,adjustmentsaremadeinaccordancewiththeprovisionsofInterpretationNo.16.Theimpactofimplementingtheaforementionedaccountingpoliciesontheconsolidatedbalancesheetasat31December2023,andtheconsolidatedincomestatementfortheyear2023isasfollows:
| Itemofconsolidatedbalancesheet(31December2023) | Amountaffected |
| Deferredincometaxassets | 14,380,843.22 |
| Deferredincometaxliabilities | 14,380,843.22 |
Theimpactofimplementingtheaforementionedaccountingpoliciesontheconsolidatedbalancesheetasat31December2022,andtheconsolidatedincomestatementfortheyear2022isasfollows:
| Itemofconsolidatedbalancesheet(31December2022) | Before | Amountadjusted | After |
| Deferredincometaxassets | 155,774,523.25 | 16,366,350.08 | 172,140,873.33 |
| Deferredincometaxliabilities | 151,243,432.80 | 16,366,350.08 | 167,609,782.88 |
VIIYoYChangestotheScopeoftheConsolidatedFinancialStatements
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.VIIIEngagementandDisengagementofIndependentAuditorCurrentindependentauditor:
| Nameofthedomesticindependentauditor | GrantThorntonChina(SpecialGeneralPartnership) |
| TheCompany’spaymenttothedomesticindependentauditor(RMB’0,000) | 173.5 |
| HowmanyconsecutiveyearsthedomesticindependentauditorhasprovidedauditservicefortheCompany | 5 |
| Namesofthecertifiedpublicaccountantsfromthedomesticindependentauditorwritingsignaturesontheauditor’sreport | CuiXiaoli,HeFeng |
| HowmanyconsecutiveyearsthecertifiedpublicaccountantshaveprovidedauditservicefortheCompany | 4 |
IndicatebytickmarkwhethertheindependentauditorwaschangedfortheReportingPeriod.
□Yes?NoIndependentauditor,financialadvisororsponsorengagedfortheauditofinternalcontrols:
?Applicable□Notapplicable
TheCompanyheldthe2022AnnualGeneralMeetingon12May2023andapprovedtheProposalonRenewalEngagementofthe2023FinancialAuditandInternalControlAuditoranddecidedtorenewthecontractwithGrantThorntonChina(SpecialGeneralPartnership)for2023financialauditandinternalcontrolaffairsandpaidRMB1.735millionintotalfor2022financialreportauditandtheinternalcontrolaudit.
IXPossibilityofDelistingafterDisclosureofthisReport
□Applicable?Notapplicable
XInsolvencyandReorganization
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
XIMajorLegalMatters
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
XIIPunishmentsandRectifications
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
XIIICreditQualityoftheCompanyaswellasItsControllingShareholderandActualController
□Applicable?Notapplicable
XIVMajorRelated-PartyTransactions
1.ContinuingRelated-PartyTransactions
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
2.Related-PartyTransactionsRegardingPurchaseorSalesofAssetsorEquityInterests
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
3.Related-PartyTransactionsRegardingJointInvestmentsinThirdParties
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
4.CreditsandLiabilitieswithRelatedParties
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
5.TransactionswithRelatedFinanceCompanies
□Applicable?NotapplicableTheCompanydidnotmakedepositsin,receiveloansorcreditfromandwasnotinvolvedinanyotherfinancebusinesswithanyrelatedfinancecompanyoranyotherrelatedparties.
6.TransactionswithRelatedPartiesbyFinanceCompaniesControlledbytheCompany
□Applicable?NotapplicableThefinancecompanycontrolledbytheCompanydidnotmakedeposits,receiveloansorcreditfromandwasnotinvolvedinanyotherfinancebusinesswithanyrelatedparties.
7.OtherMajorRelated-PartyTransactions
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
XVMajorContractsandExecutionthereof
1.Entrustment,ContractingandLeases
(1)Entrustment
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
(2)Contracting
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
(3)Leases
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
2.MajorGuarantees
?Applicable□Notapplicable
Unit:RMB'0,000
| Obligor | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate | Actualguaranteeamount | Typeofguarantee | Collateral(ifany) | Counter-guarantee(ifany) | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
| GuaranteesprovidedbytheCompanyforitssubsidiaries | ||||||||||
| Obligor | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate | Actualguaranteeamount | Typeofguarantee | Collateral(ifany) | Counter-guarantee(ifany) | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
| Wholly-ownedsubsidiary | 26August2022 | 23,372.91 | 24August2022 | 280.12 | Joint-liability | N/A | N/A | ThreeyearssincetheapprovaloftheboardoftheCompany | No | Yes |
| Wholly-ownedsubsidiary | 1July2023 | 7,082.7 | 30June2023 | 6,798.72 | Joint-liability | N/A | N/A | ThreeyearssincetheapprovaloftheboardoftheCompany | No | Yes |
| TotalapprovedlineforsuchguaranteesintheReportingPeriod(B1) | 7,082.7 | TotalactualamountofsuchguaranteesintheReportingPeriod(B2) | 6,872.88 | |||||||
| TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(B3) | 30,455.61 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(B4) | 7,078.84 | |||||||
| Guaranteesprovidedbetweensubsidiaries | ||||||||||
| Obligor | Disclosuredateoftheguaranteeline | Lineofguarantee | Actualoccurrencedate | Actualguaranteeamount | Typeofguarantee | Collateral(ifany) | Counter-guarantee(ifany) | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
| announcement | ||||
| Totalguaranteeamount(totalofthethreekindsofguaranteesabove) | ||||
| TotalguaranteelineapprovedintheReportingPeriod(A1+B1+C1) | 7,082.7 | TotalactualguaranteeamountintheReportingPeriod(A2+B2+C2) | 6,872.88 | |
| TotalapprovedguaranteelineattheendoftheReportingPeriod(A3+B3+C3) | 30,455.61 | TotalactualguaranteebalanceattheendoftheReportingPeriod(A4+B4+C4) | 7,078.84 | |
| Totalactualguaranteeamount(A4+B4+C4)as%oftheCompany’snetassets | 0.77% | |||
| Ofwhich: | ||||
| Balanceofguaranteesprovidedforshareholders,actualcontrollerandtheirrelatedparties(D) | 0 | |||
| Balanceofdebtguaranteesprovideddirectlyorindirectlyforobligorswithanover70%debt/assetratio(E) | 0 | |||
| Amountbywhichthetotalguaranteeamountexceeds50%oftheCompany’snetassets(F) | 0 | |||
| Totalofthethreeamountsabove(D+E+F) | 0 | |||
| JointresponsibilitiespossiblyborneoralreadyborneintheReportingPeriodforundueguarantees(ifany) | N/A | |||
| Explanationaboutexternalguaranteeviolatingestablishedprocedure(ifany) | N/A | |||
Compoundguarantees:
N/ATheCompanyshallabidebyrelevantdisclosurerequirementsoftheSelf-RegulatoryGuidelinesofShenzhenStockExchangeforListedCompaniesNo.3-IndustryInformationDisclosureontextileandgarmentindustry.WhethertheCompanyprovidesguaranteesorfinancialassistancefordealers
□Yes?No
3.CashEntrustedforWealthManagement
(1)CashEntrustedforWealthManagement?Applicable□NotapplicableOverviewsofcashentrustedforwealthmanagementduringtheReportingPeriod
RMB’0,000
| Specifictype | Capitalresources | Amountincurred | UndueBalance | Overdueamount | Overdueamountwithprovisionforimpairment |
| Bankfinancialproducts | Self-ownedfunds | 18,150 | 10,000 | 0 | 0 |
| Bankfinancialproducts | Raisedfunds | 21,700 | 5,000 | 0 | 0 |
| Brokeragefinancialproducts | Self-ownedfunds | 38,050 | 5,096.1 | 0 | 0 |
| Brokeragefinancial | Raisedfunds | 12,010.7 | 0 | 0 | 0 |
| products | |||||
| Others | Self-ownedfunds | 40,000 | 40,000 | 0 | 0 |
| Total | 129,910.7 | 60,096.1 | 0 | 0 | |
Particularsofentrustedcashmanagementwithsinglesignificantamountorlowsecurity,badliquidity,andnocapitalpreservation
□Applicable?NotapplicableWhetherthereisthecasewheretheprincipalcannotberecoveredatmaturityorothercasewhichmaycauseimpairmentforentrustedassetmanagement
□Applicable?Notapplicable
(2)EntrustedLoans
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
4.OtherMajorContracts
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
XVIOtherSignificantEvents?Applicable□NotapplicableTheProposalonRepurchaseofDomesticallyListedForeignShares(B-Stock)wasapprovedatthe10
thMeetingofthe10
th
BoardofDirectorsandtheFirstExtraordinaryGeneralMeetingof2023.Assuch,anamountofnomorethanRMB200millionwouldbeusedtorepurchaseshares,withapricelimitofHKD4.80pershare,within12monthsfromthedatewhenthesharerepurchaseplanwasapprovedatthegeneralmeeting.Fordetails,seetherelevantannouncements(No.:2023-043,2023-044,2023-053,2023-054and2023-055)anddocumentsdisclosedon20June2023and7July2023onwww.cninfo.com.cn.XVIISignificantEventsofSubsidiaries
□Applicable?Notapplicable
PartVIIShareChangesandShareholderInformation
IShareChanges
1.ShareChanges
Unit:share
| Before | Increase/decreaseintheReportingPeriod(+/-) | After | |||||||
| Shares | Percentage(%) | Newissues | Sharesasdividendconvertedfromprofit | Sharesasdividendconvertedfromcapitalreserves | Other | Subtotal | Shares | Percentage(%) | |
| I.Restrictedshares | 20,647,892 | 2.33% | -9,180,075 | -9,180,075 | 11,467,817 | 1.33% | |||
| 1.SharesheldbyState | |||||||||
| 2.Sharesheldbystate-ownedlegalperson | |||||||||
| 3.Sharesheldbyotherdomesticinvestors | 20,647,892 | 2.33% | -9,180,075 | -9,180,075 | 11,467,817 | 1.33% | |||
| Amongwhich:Sharesheldbydomesticlegalperson | |||||||||
| Sharesheldbydomesticnaturalperson | 20,647,892 | 2.33% | -9,180,075 | -9,180,075 | 11,467,817 | 1.33% | |||
| 4.Sharesheldbyotherforeigninvestors | 0 | ||||||||
| Amongwhich:Sharesheldbyforeigncorporations | 0 | ||||||||
| Sharesheldbyforeignnaturalperson | 0 | ||||||||
| II.Unrestrictedshares | 866,985,259 | 97.67% | -14,845,442 | -14,845,442 | 852,139,817 | 98.67% | |||
| 1.RMBordinaryshares | 570,804,568 | 64.31% | 9,090,306 | 9,090,306 | 579,894,874 | 67.15% | |||
| 2.Domesticallylistedforeignshares | 296,180,691 | 33.37% | -23,935,748 | -23,935,748 | 272,244,943 | 31.52% | |||
| 3.Overseaslistedforeignshares | 0 | ||||||||
| 4.Other | 0 | ||||||||
| III.Totalshares | 887,633,151 | 100.00% | -24,025,517 | -24,025,517 | 863,607,634 | 100.00% |
Reasonsforsharechanges:
?Applicable□Notapplicable①DuetothefactthattheCompanyhadissuedconvertibleA-sharebondson9April2020,convertiblebondswereconvertedto231sharesintheperiodfromthebeginningof2023to31December2023.②On9Mayand8June2023,2,919,000and6,979,500sharesofequityincentiverestrictedshareswereliftedfromrestriction,respectively.③On25May2023,23,935,748domesticallylistedforeignshares(Bshares)wererepurchasedandcanceled.④90,000sharesofequityincentiverestrictedshareswererepurchasedandcancelled.⑤Thesharesheldbythedirectors,supervisorsandseniormanagementshallbeunlockedandadjustedinaccordancewithrelevantregulationsonexecutivesharemanagement.Approvalofsharechanges:
?Applicable□Notapplicable①On10April2023,theCompanyheldthe7thMeetingofthe10thBoardofDirectorsandthe6thMeetingofthe10thSupervisoryCommittee,andreviewedandapprovedtheProposalontheAchievementofLiftingtheRestrictionConditionsintheFirstRestrictionPeriodfortheReservedSharesforGrantunderthe2021RestrictedShareIncentiveScheme.Also,theCompanyagreedtoprocesstherestrictionliftingmattersfor2,919,000restrictedsharesheldby343incentivepersonnelwhomettherestrictionliftingconditionsinthefirstrestrictionperiodforthereservedsharesforgrantunderthe2021RestrictedShareIncentiveScheme.②On26May2023,theCompanyheldthe9thMeetingofthe10thBoardofDirectorsandthe8thMeetingofthe10thSupervisoryCommittee,andreviewedandapprovedtheProposalontheAchievementoftheLiftingRestrictionConditionsintheSecondRestrictionPeriodfortheFirstGrantofthe2021RestrictedShareIncentiveScheme.Also,theCompanyagreedtoprocesstherestrictionliftingmattersfor6,979,500restrictedsharesheldby717incentivepersonnelwhomettherestrictionliftingconditionsinthesecondrestrictionperiodforthefirstgrantofthe2021RestrictedShareIncentiveScheme.③TheCompanyheldthe2ndMeetingofthe10thBoardofDirectorson29June2022andthe3rdExtraordinaryGeneralMeetingof2022on15July2022,reviewingandapprovingtheProposalonRepurchaseoftheCompany’sDomesticallyListedForeignShares(BShare).TheCompanyrepurchased23,935,748BsharesintotalthroughcallauctionviaitssecuritiesaccountforrepurchaseandcompletedtheformalitiesforcancellationoftheforegoingrepurchasedsharesattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimitedon25May2023.④On10April2023,theProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveConditionwasdeliberatedandapprovedatthe7thMeetingofthe10thBoardofDirectorsoftheCompany,assevenoftheincentivepersonnelofthe2021restrictedshareincentiveschemenolongermettheconditionofbeingincentivepersonnelduetoresignation,retirement,orpositionchanges.Therestrictedsharesheldbythesevenpersonnelwithavolumeof90,000shares,whichwereauthorizedbutnotliftedfromrestrictedsales,shallberepurchasedandcancelledbytheCompanyinaccordancewiththe2021RestrictedShareIncentiveScheme(hereinafterreferredtoasthe"IncentiveScheme")oftheCompanyandrelevantprovisionsoflawsandregulation.TheaforesaidmattersweredeliberatedandapprovedattheGeneralMeetingoftheCompanyin2022thatwasheldon12May2023.Transferofshareownership:
?Applicable□NotapplicableTheCompanycompletedtheformalitiesforcancellationofthe23,935,748repurchasedB-sharesand90,000sharesofequityincentiverestrictedsharesattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimitedrespectivelyon25May2023and12July2023.Effectsofsharechangesonthebasicanddilutedearningspershare,equitypershareattributabletotheCompany’sordinaryshareholdersandotherfinancialindicatorsoftheprioryearandtheprioraccountingperiod,respectively:
?Applicable□NotapplicableSeerelevantcontentsof"VIKeyFinancialInformation"under"PartIICorporateInformationandKeyFinancialInformation".OtherinformationthattheCompanyconsidersnecessaryorisrequiredbythesecuritiesregulatortobedisclosed:
□Applicable?Notapplicable
2.ChangesinRestrictedShares
?Applicable□Notapplicable
Unit:share
| Nameoftheshareholders | Restrictedsharesamountattheperiod-begin | Restrictedsharesincreasedoftheperiod | Restrictedsharesrelievedoftheperiod | Restrictedsharesamountattheperiod-end | Restrictedreasons | Restrictedsharesrelieveddate |
| ZhangZhanqi | 485,225 | 140,000 | 190,000 | 435,225 | LockedpublicsharesheldbyseniormanagementandRestrictedsharesfromequityincentive | 100000shareson9May2023and90000shareson8June2023 |
| WangJiabin | 287,775 | 115,925 | 90,000 | 313,700 | LockedpublicsharesheldbyseniormanagementandRestrictedsharesfromequityincentive | 90000shareson8June2023 |
| YuShouzheng | 312,325 | 85,000 | 110,000 | 287,325 | LockedpublicsharesheldbyseniormanagementandRestrictedsharesfromequityincentive | 50000shareson9May2023and60000shareson8June2023 |
| ZhangKeming | 308,275 | 85,000 | 110,000 | 283,275 | LockedpublicsharesheldbyseniormanagementandRestrictedsharesfromequityincentive | 50000shareson9May2023and60000shareson8June2023 |
| ShangChenggang | 272,500 | 85,000 | 110,000 | 247,500 | LockedpublicsharesheldbyseniormanagementandRestrictedsharesfromequityincentive | 50000shareson9May2023and60000shareson8June2023 |
| GuoHeng | 250,000 | 85,000 | 110,000 | 225,000 | LockedpublicsharesheldbyseniormanagementandRestrictedshares | 50000shareson9May2023and60000shareson8June2023 |
| fromequityincentive | ||||||
| LiWenji | 257,500 | 47,500 | 110,000 | 195,000 | LockedpublicsharesheldbyseniormanagementandRestrictedsharesfromequityincentive | 50000shareson9May2023and60000shareson8June2023 |
| DuLixin | 250,000 | 47,500 | 110,000 | 187,500 | LockedpublicsharesheldbyseniormanagementandRestrictedsharesfromequityincentive | 50000shareson9May2023and60000shareson8June2023 |
| LyuWenquan | 150,000 | 70,000 | 70,000 | 150,000 | LockedpublicsharesheldbyseniormanagementandRestrictedsharesfromequityincentive | 25000shareson9May2023and45000shareson8June2023 |
| XuFeng | 190,000 | 47,500 | 95,000 | 142,500 | LockedpublicsharesheldbyseniormanagementandRestrictedsharesfromequityincentive | 50000shareson9May2023and45000shareson8June2023 |
| Otherrestrictedshareholders | 17,884,292 | 8,793,500 | 9,000,792 | LockedpublicsharesheldbyseniormanagementandRestrictedsharesfromequityincentive | 2444000shareson9May2023and6349500shareson8June2023;while90000shareswerecancelledon12July2023 | |
| Total | 20,647,892 | 808,425 | 9,898,500 | 11,467,817 | -- | -- |
II.IssuanceandListingofSecurities
1.Securities(ExclusiveofPreferredShares)IssuedintheReportingPeriod
□Applicable?Notapplicable
2.ChangestoTotalShares,ShareholderStructureandAssetandLiabilityStructures
?Applicable□NotapplicableAtthebeginningof2023,theCompanypossessed887,633,151sharesintotal(591,395,010Asharesand296,238,141Bsharesinclusive).23,935,748domesticallylistedforeignshares(Bshares)wererepurchasedandcancelledOn25May2023.Therepurchasingandcancelling90,000sharesofequityincentiverestrictedstockwascompletedon12July2023.BecauseofLuThaiconvertiblebondswerecumulativelyconvertedinto231A-sharesfrom1January2023to31December2023.By31December
2023,theCompanypossessed863,607,634sharesintotal(591,305,241Asharesand272,302,393Bsharesinclusive),whichhadnosignificantimpactontheCompany'sassetsandliabilitystructure.
3.ExistingStaff-HeldShares
□Applicable?NotapplicableIIIShareholdersandActualController
1.TotalNumberofShareholdersandTheirShareholdings
Unit:share
| Numberofordinaryshareholders | 49,725 | Numberofordinaryshareholdersatthemonth-endpriortothedisclosureofthisReport | 48,031 | Numberofpreferredshareholderswithresumedvotingrights(ifany)(seenote8) | 0 | Numberofpreferredshareholderswithresumedvotingrightsatthemonth-endpriortothedisclosureofthisReport(ifany)(seenote8) | 0 | |
| 5%orgreatershareholdersortop10shareholders(exclusiveofshareslentinrefinancing) | ||||||||
| Nameofshareholder | Natureofshareholder | Shareholdingpercentage | Totalsharesheldattheperiod-end | Increase/decreaseintheReportingPeriod | Restrictedsharesheld | Unrestrictedsharesheld | Sharesinpledge,markedorfrozen | |
| Status | Shares | |||||||
| ZiboLuchengTextileInvestmentCo.,Ltd. | Domesticnon-state-ownedlegalperson | 16.25% | 140,353,583 | 0 | 0 | 140,353,583 | N/A | 0 |
| Tailun(Thailand)TextileCo.,Ltd. | Foreignlegalperson | 13.69% | 118,232,400 | 0 | 0 | 118,232,400 | N/A | 0 |
| CentralHuijinAssetsManagementCo.,Ltd. | State-ownedlegalperson | 2.30% | 19,884,100 | 0 | 0 | 19,884,100 | N/A | 0 |
| NationalSocialSecurityFundPortfolio413 | Other | 1.64% | 14,190,051 | 930,000 | 0 | 14,190,051 | N/A | 0 |
| ICBCCreditSuisseInnovationPowerStockTypeSecuritiesInvestmentFund | Other | 1.38% | 11,910,000 | 6,810,000 | 0 | 11,910,000 | N/A | 0 |
| ICBCCreditSuisseSelectedBalancedMixedSecuritiesInvestmentFund | Other | 0.84% | 7,230,000 | 7,230,000 | 0 | 7,230,000 | N/A | 0 |
| DongfanghongZhihuaThree-YearHoldingMixedSecuritiesInvestmentFund | Other | 0.75% | 6,451,750 | 6,451,750 | 0 | 6,451,750 | N/A | 0 |
| FEDERATEDHERMESGLOBALINVESTMENTFD(CAYMAN)MASTER,SPCOBOAFTAOFEDERATEDHERMESEMGASIAEQUITYFDMASTERS.P. | Foreignlegalperson | 0.72% | 6,200,183 | 1,576,809 | 0 | 4,623,374 | N/A | 0 |
| DongfanghongDingyuan3-MonthFixedTermOpenMixedInitiatingSecuritiesInvestmentFund | Other | 0.61% | 5,276,400 | 5,276,400 | 0 | 5,276,400 | N/A | 0 |
| DachengChinaSecuritiesAssetManagementPlan | Other | 0.60% | 5,144,200 | -91,700 | 0 | 5,144,200 | N/A | 0 |
| Strategicinvestorsorgeneralcorporationsbecomingtop-tenshareholdersduetoplacingofnewshares(ifany)(seeNote3) | Naught | |||||||
| Relatedoracting-in-concertpartiesamongtheshareholdersabove | ZiboLuchengTextileInvestmentCo.,Ltd.isthelargestshareholderoftheCompanyandtheactualcontroller.Tailun(Thailand)TextileCo.,Ltd.isthesecondlargestshareholderaswellassponsorofforeigncapitaloftheCompany.AllofothershareholdersarepeopleholdingpublicAshareorpublicBshareandtheCompanyisnotabletoconfirmwhetherthereisassociatedrelationshiporconcertedactionamongothershareholders. | |||||||
| Explainifanyoftheshareholdersabovewasinvolvedinentrusting/beingentrustedwithvotingrightsorwaivingvotingrights | Naught | |||||||
| Specialaccountforsharerepurchases(ifany)amongthetop10shareholders(seenote10) | Asof31December2023,thereare37,723,945sharesinthespecialrepurchaseaccountoftheCompany | |||||||
| Top10unrestrictedshareholders | ||||||||
| Nameofshareholder | Unrestrictedsharesheldattheperiod-end | Sharesbytype | ||||||
| Type | Shares | |||||||
| ZiboLuchengTextileInvestmentCo.,Ltd. | 140,353,583 | RMBordinaryshare | 140,353,583 | |||||
| Tailun(Thailand)TextileCo.,Ltd. | 118,232,400 | Domesticallylisted | 118,232,400 | |||||
| foreignshares | |||
| CentralHuijinAssetsManagementCo.,Ltd. | 19,884,100 | RMBordinaryshare | 19,884,100 |
| NationalSocialSecurityFundPortfolio413 | 14,190,051 | RMBordinaryshare | 14,190,051 |
| ICBCCreditSuisseInnovationPowerStockTypeSecuritiesInvestmentFund | 11,910,000 | RMBordinaryshare | 11,910,000 |
| ICBCCreditSuisseSelectedBalancedMixedSecuritiesInvestmentFund | 7,230,000 | RMBordinaryshare | 7,230,000 |
| DongfanghongZhihuaThree-YearHoldingMixedSecuritiesInvestmentFund | 6,451,750 | RMBordinaryshare | 6,451,750 |
| FEDERATEDHERMESGLOBALINVESTMENTFD(CAYMAN)MASTER,SPCOBOAFTAOFEDERATEDHERMESEMGASIAEQUITYFDMASTERS.P. | 6,200,183 | Domesticallylistedforeignshares | 6,200,183 |
| DongfanghongDingyuan3-MonthFixedTermOpenMixedInitiatingSecuritiesInvestmentFund | 5,276,400 | RMBordinaryshare | 5,276,400 |
| DachengChinaSecuritiesAssetManagementPlan | 5,144,200 | RMBordinaryshare | 5,144,200 |
| Relatedoracting-in-concertpartiesamongtop10unrestrictedpublicshareholders,aswellasbetweentop10unrestrictedpublicshareholdersandtop10shareholders | ZiboLuchengTextileInvestmentCo.,Ltd.isthelargestshareholderandtheactualcontrolleroftheCompany.Tailun(Thailand)TextileCo.,Ltd.isthesecondlargestshareholderandtheforeignsponsoroftheCompany.AlltheothershareholdersareholdingtradableA-sharesorB-shares.Anditisunknownwhetherthereisanyrelatedpartyoracting-in-concertpartyamongthem. | ||
| Top10ordinaryshareholdersinvolvedinsecuritiesmargintrading(ifany)(seenote4) | Naught | ||
Top10shareholdersinvolvedinrefinancingshareslending
□Applicable?NotapplicableChangesinsharesthatthetop10shareholderslendinrefinancingcomparedwiththepriorperiod?Applicable□Notapplicable
Unit:share
| Changesinsharesthatthetop10shareholderslendinrefinancingcomparedwiththeendofthepriorperiod | |||||
| Fullnameofshareholder | Increase/decreaseintheReportingPeriod | Shareslentinrefinancingandnotyetreturnedattheperiod-end | Sharesinthecommonaccountandcreditaccountplusshareslentinrefinancingandnotyetreturnedattheperiod-end | ||
| Totalshares | As%oftotalsharecapital | Totalshares | As%oftotalsharecapital | ||
| GFFund-ABC-GFChinaSecuritiesAssetManagementPlan | Decrease | 0 | 0.00% | 4,833,300 | 0.56% |
| HarvestFund-ABC- | Decrease | 0 | 0.00% | 3,674,700 | 0.43% |
| HarvestChinaSecuritiesAssetManagementPlan | |||||
| YinhuaFund-ABC-YinhuaChinaSecuritiesAssetManagementPlan | Decrease | 0 | 0.00% | 4,320,212 | 0.50% |
| CCB-ICBCCreditSuisseSelectedBalancedMixedSecuritiesInvestmentFund | Increase | 0 | 0.00% | 7,230,000 | 0.84% |
| CCB-DongfanghongZhihuaThree-YearHoldingMixedSecuritiesInvestmentFund | Increase | 0 | 0.00% | 6,451,750 | 0.75% |
| ShanghaiPudongDevelopmentBankCo.,Ltd.-DongfanghongDingyuan3-MonthFixedTermOpenMixedInitiatingSecuritiesInvestmentFund | Increase | 0 | 0.00% | 5,276,400 | 0.61% |
Indicatebytickmarkwhetheranyofthetop10ordinaryshareholdersorthetop10unrestrictedordinaryshareholdersoftheCompanyconductedanypromissoryrepoduringtheReportingPeriod.
□Yes?NoNosuchcasesintheReportingPeriod.
2.ControllingShareholderNatureofthecontrollingshareholder:ControlledbyanaturalpersonTypeofthecontrollingshareholder:legalperson
| Nameofcontrollingshareholder | Legalrepresentative/personincharge | Dateofestablishment | Unifiedsocialcreditcode | Principalactivity |
| ZiboLuchengTextileInvestmentCo.,Ltd. | LiuDeming | 25September1998 | 91370303164200391J | Investmentontextile,electricityandchemical;purchase,processandsaleofcotton;retailserviceetc. |
| ParticularsaboutshareholdingofcontrollingshareholderscontrollingandholdingsharesofotherlistedcompaniesduringtheReportingPeriod | N/A | |||
ChangeofthecontrollingshareholderintheReportingPeriod:
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
3.ActualControllerandItsActing-in-ConcertParties
Natureoftheactualcontroller:DomesticnaturalpersonTypeoftheactualcontroller:naturalperson
| Nameoftheactualcontroller | Relationswiththeactualcontroller | Nationality | Whethergaintherightofresidenceinothercountriesorregionsornot |
| LiuZibin | Inperson | China | No |
| LiuDeming | Concertedaction(includingagreement,relatives,andsamecontrol) | China | No |
| Professionsandtitles |
LiuZibinistheChairmanoftheBoardandPresidentofLuThaiTextileCo.,Ltd.,LiuDemingistheChairmanoftheBoardandGMofZiboLuchengTextileInvestmentCo.,Ltd.
| Particularsaboutlistedcompanieswithshareseverheldbytheactualcontrolleroverthepast10years | N/A |
ChangeoftheactualcontrollerduringtheReportingPeriod:
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.OwnershipandcontrolrelationsbetweentheactualcontrollerandtheCompany:
IndicatebytickmarkwhethertheactualcontrollercontrolstheCompanyviatrustorotherwaysofassetmanagement.
□Applicable?Notapplicable
4.NumberofAccumulativePledgedSharesheldbytheCompany’sControllingShareholderortheLargestShareholderaswellasItsActing-in-ConcertPartiesAccountsfor80%ofallsharesoftheCompanyheldbyThem
□Applicable?Notapplicable
5.Other10%orGreaterCorporateShareholders
□Applicable?Notapplicable
6.LimitationsonShareholdingDecreasebytheCompany’sControllingShareholder,ActualController,ReorganizerandOtherCommitmentMakers
□Applicable?Notapplicable
IVSpecificImplementationofShareRepurchaseduringtheReportingPeriod
Progressonanysharerepurchase?Applicable□Notapplicable
| Disclosure | Shares | As%oftotal | Amount | Period | Usage | Shares | Numberof |
| timeoftheplan | intendedtoberepurchased(share) | sharecapital | repurchased(share) | repurchasedsharesasapercentageoftheunderlyingsharescoveredbytheequityincentiveplan(ifany) | |||
| 7July2023 | 27000000-54000000 | 3.13%-6.25% | NotexceedingRMB20,000 | 6July2023to5July2024 | Cancelled | 37,723,945 | 0.00% |
Progressonreducingtherepurchasedsharesbymeansofcentralizedbidding
□Applicable?Notapplicable
PartVIIIPreferenceShares
□Applicable?NotapplicableNopreferencesharesintheReportingPeriod.
PartIXBonds
?Applicable□NotapplicableIEnterpriseBonds
□Applicable?NotapplicableNoenterprisebondsintheReportingPeriod.
IICorporateBonds
□Applicable?NotapplicableNocorporatebondsintheReportingPeriod.
IIIDebtFinancingInstrumentsofNon-financialEnterprises
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.IVConvertibleCorporateBonds?Applicable□Notapplicable
1.PreviousAdjustmentsofConversionPriceOn9April2020,theCompanypubliclyissued14millionA-shareconvertiblecorporatebonds(shortname:LuThaiConvertibleBonds,bondcode:127016)onShenzhenStockExchangewithanissuepriceofRMB100pershareandashareconversionpriceofRMB9.01pershare.ThebondswerelistedonShenzhenStockExchangeon13May2020.Inaccordancewithrelatedtermsofthe“ProspectusforthePublicOfferingofA-ShareConvertibleCorporateBondsofLuThaiTextileCo.,Ltd.”,aswellastheregulationsofChinaSecuritiesRegulatoryCommissiononthepublicofferingofconvertiblecorporatebonds,iftheCompanyhasanydistributionofsharedividends,conversionintosharecapital,additionalissueofnewshares(excludingsharecapitalincreaseduetoconversionintosharesfromtheconvertiblecorporatebondsissuedthistime),shareallotmentanddistributionofcashdividendsaftertheissueof“LuThaiConvertibleBonds”,adjustmentshallbemadetotheshareconversionprice.On21May2020,theCompanyheldtheAnnualGeneralMeetingof2019,wherethe“ProposalontheCompany’sProfitDistributionPlanfor2019”wasconsideredandapproved.AccordingtotheProposal,acashamountofRMB1.00(inclusiveoftax)wouldbedistributedtoevery10shares,withthe858,121,541sharesofsharecapitalon31December2019asthebase.TheshareregistrationdatefortheCompany’sequitydistributionof2019was8July2020andtheex-rightsandex-dividenddatewas9July2020.Therefore,theshareconversionpriceof“LuThaiConvertibleBonds”wasadjustedfromRMB9.01persharetoRMB8.91pershare,andthenewpriceaftertheadjustmenttookeffectonandasof9July2020(theex-rightsandex-dividenddate).On3June2021,theCompanycompletedtheregistrationoffirst-grantedrestrictedstocksofrestrictedshareincentiveschemeattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimited(ChinaClear).7June2021isdesignatedasthe
listingdateoffirst-grantedrestrictedstocksoftheCompanyin2021.TheCompanygrants750subjectsofincentive24,285,000restrictedsharesatapriceofRMB3.31pershare,accountingfor2.83%oftotalsharecapitaloftheCompany.ThesourceofthestockisRMBA-shareordinarysharesissuedbytheCompanytosubjectsofincentive.Therefore,theconversionpriceofLuThaiConvertibleBondwillbeadjustedfromRMB8.91persharetoRMB8.76pershare,withtheadjustedconversionpricecomingintoforcefrom7June2021.The2020annualgeneralmeetingconvenedon20April2021deliberatedonandadoptedtheCompany'sProposalonProfitAppropriationPlanin2020,whichdistributescashofRMB0.50per10shares(includingtax)withtotalsharecapitalattherecorddateofthisdistributionschemeasbase.TherecorddateoftheCompany'sinterestdistributionin2020isseton17June2021.Theex-dateisseton18June2021.Therefore,theconversionpriceofLuThaiConvertibleBondwillbeadjustedfromRMB8.76persharetoRMB8.71pershare,withtheadjustedconversionpricecomingintoforcefrom18June2021(theex-date).On22March2022,theCompanycompletedtheregistrationofgrantingreservedsharesunderthe2021restrictedshareincentiveschemeattheShenzhenBranchofChinaClear.22March2022wasdesignatedasthelistingdateforgrantingreservedrestrictedsharesoftheCompany.TheCompanygranted343incentivepersonnel5,838,000restrictedsharesatapriceofRMB3.56pershare,accountingfor0.66%oftotalsharecapitaloftheCompany.ThesourceofthestockisRMBA-shareordinarysharesissuedbytheCompanytoincentivepersonnel.Therefore,theconversionpriceofLuThaiconvertiblebondwillbeadjustedfromRMB8.71persharetoRMB8.68pershare,withtheadjustedconversionpricecomingintoforcefrom22March2022.The2021annualgeneralmeetingconvenedon20May2022deliberatedandadoptedtheCompany'sProposalonProfitAppropriationPlanin2021,whichdistributescashofRMB0.70pertenshares(includingtax)withtotalsharecapitalattherecorddateofthisdistributionschemeasbase.TherecorddateoftheCompany'sinterestdistributionin2021wasseton22June2022.Theex-datewasseton23June2022.Therefore,theconversionpriceofLuThaiconvertiblebondwillbeadjustedfromRMB8.68persharetoRMB8.61pershare,withtheadjustedconversionpricecomingintoforcefrom23June2022.TheCompanycompletedtheformalitiesforcancellationofthe23,935,748repurchasedBsharesattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimitedon25May2023.InaccordancewiththeissuanceclausesintheCompany’sProspectusandrelevantregulationsoftheChinaSecuritiesRegulatoryCommission(CSRC)ontheissuanceofconvertiblebonds,theconversionpriceofLuThaiconvertiblebondshallbeadjustedfromRMB8.61persharetoRMB8.73pershare.Theadjustedconversionpricecameintoforceon26May2023.TheCompanyimplementedthe2022EquityDistributionPlanon16June2023.InaccordancewiththeissuanceclausesintheCompany’sProspectusandrelevantregulationsoftheCSRContheissuanceofconvertiblebonds,theconversionpriceofLuThaiconvertiblebondshallbeadjustedfromRMB8.73persharetoRMB8.63pershare.Theadjustedconversionpricecameintoforceon16June2023.TheCompanycompletedtheformalitiesforcancellationofthe46,176,428repurchasedBsharesattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimitedon1March2024.InaccordancewiththeissuanceclausesintheCompany'sProspectusandrelevantregulationsoftheChinaSecuritiesRegulatoryCommission(CSRC)ontheissuanceofconvertiblebonds,theconversionpriceofLuThaiconvertiblebondshallbeadjustedfromRMB8.63persharetoRMB8.87pershare.Theadjustedconversionpricecameintoforceon4March2024.
2.AccumulativeConversion
?Applicable□Notapplicable
| Abbreviation | Startdate | Totalcirculation(piece) | Totalamount(RMB) | Accumulativeamountconverted(RMB) | Accumulativesharesconverted(share) | Convertedsharesas%oftotalsharesissuedbytheCompanybeforethestartdateofconversion | Unconvertedamount(RMB) | Unconvertedamountas%oftotalamount |
| LuThaiConvertibleBonds | 2020-10-15 | 14,000,000 | 1,400,000,000.00 | 150,600.00 | 16,841 | 0.00% | 1,399,849,400.00 | 99.99% |
3.Top10ConvertibleBondHolders
| No. | Nameofholders | Natureofholders | Numberofconvertiblebondsheldattheperiod-end(share) | Amountofconvertiblebondsheldattheperiod-end(RMB) | As%ofconvertiblebondsheldattheperiod-end |
| 1 | ChinaConstructionBank-EFundEnhancedIncomeBondSecuritiesInvestmentFund | Other | 694,212 | 69,421,200.00 | 4.96% |
| 2 | FuguoFuminFixedIncomePensionProduct-ChinaConstructionBankCorporation | Other | 673,269 | 67,326,900.00 | 4.81% |
| 3 | ShanghaiPudongDevelopmentBankCo.,Ltd.-EFundYuxiangReturnBondSecuritiesInvestmentBond | Other | 485,552 | 48,555,200.00 | 3.47% |
| 4 | ChinaMerchantsBankCo.,Ltd.-DongfanghongJuliBondSecuritiesInvestmentFund | Other | 347,356 | 34,735,600.00 | 2.48% |
| 5 | AgriculturalBankofChina-EssenceTargetIncomeBondSecuritiesInvestmentFund | Other | 255,699 | 25,569,900.00 | 1.83% |
| 6 | IndustrialandCommercialBankofChina-FuguoTianliGrowthBondInvestmentFund | Other | 239,115 | 23,911,500.00 | 1.71% |
| 7 | IndustrialandCommercialBankofChina-HuitianfuDual-ProfitBond-TypeSecuritiesInvestmentFund | Other | 236,709 | 23,670,900.00 | 1.69% |
| 8 | BasicEndowmentInsuranceFund(Portfolio102) | Other | 232,561 | 23,256,100.00 | 1.66% |
| 9 | HuataiYoushengConvertibleBondFixedIncomePensionProduct－ChinaMerchantsBankCo.,Ltd. | Other | 228,990 | 22,899,000.00 | 1.64% |
| 10 | ChinaAssetManagementLivingLongerNo.9FixedIncomePensionProduct-ChinaMerchantsBankCo.,Ltd. | Other | 211,147 | 21,114,700.00 | 1.51% |
4.SignificantChangesinProfitability,AssetsConditionandCreditStatusofGuarantors
□Applicable?Notapplicable
5.TheCompany’sLiabilities,CreditChangesatthePeriod-endandCashArrangementstoRepayDebtsinFutureYears
Fortherelevantindicators,pleaserefertothePartIXBonds-VIIITheMajorAccountingDataandtheFinancialIndicatorsoftheRecent2YearsoftheCompanyupthePeriod-end.
ThecreditratingoftheCompany'sconvertiblebondsfortheReportingPeriodisAA+,whichhasnotchangedcomparedwiththatofthesameperiodoflastyear.VLossesofScopeofConsolidatedFinancialStatementsduringtheReportingPeriodExceeding10%ofNetAssetsupthePeriod-endofLastYear
□Applicable?Notapplicable
VIMaturedInterest-bearingDebtexcludingBondsupthePeriod-end
□Applicable?Notapplicable
VIIWhethertherewasanyViolationofRulesandRegulationsduringtheReportingPeriod
□Yes?NoVIIITheMajorAccountingDataandtheFinancialIndicatorsoftheRecent2YearsoftheCompanyupthePeriod-end
Unit:RMB’0,000
| Item | Period-end | Theendoflastyear | Increase/decrease |
| Currentratio | 3.43 | 2.99 | 14.72% |
| Asset-liabilityratio | 28.39% | 29.53% | -1.14% |
| Quickratio | 2.12 | 1.86 | 13.98% |
| ReportingPeriod | Sameperiodoflastyear | YoYincrease/decrease | |
| Netprofitafterdeductingnon-recurringprofitorloss | 38,613.54 | 79,547.4 | -51.46% |
| Debt/EBITDAratio | 41.97% | 66.20% | -24.23% |
| Interestcover(times) | 5.29 | 11.25 | -52.98% |
| Cash-to-interestcover(times) | 8.82 | 14.43 | -38.88% |
| EBITDAinterestcoverageratio | 10.40 | 15.94 | -34.76% |
| Rateofredemption | 100.00% | 100.00% | 0.00% |
| Interestcoverage | 100.00% | 100.00% | 0.00% |
PartXFinancialStatements
IIndependentAuditor’sReport
| Typeoftheindependentauditor’sopinion | Unmodifiedunqualifiedopinion |
| Dateofsigningthisreport | 10April2024 |
| Nameoftheindependentauditor | GrantThorntonChina(SpecialGeneralPartnership) |
| No.ofindependentauditor’sreport | GrantThorntonSZ(2024)No.371A008683 |
| Nameofthecertifiedpublicaccountants | HeFeng,CuiXiaoli |
TextoftheIndependentAuditor’sReport
TotheshareholdersofLuThaiTextileCo.,Ltd:
IOpinionWehaveauditedthefinancialstatementsofLuThaiTextileCo.,Ltd.(hereinafterreferredtoasthe“Company”),whichcomprisetheconsolidatedandparentcompanybalancesheetsasof31December2023,theconsolidatedandparentcompanystatementsofincome,cashflowsandchangesinowners’equityfortheyearthenended,aswellasthenotestothefinancialstatements.Inouropinion,thefinancialstatementsreferredtoabovepresentfairly,inallmaterialrespects,theconsolidatedandparentcompanyfinancialpositionoftheCompanyat31December2023,andtheconsolidatedandparentcompanyoperatingresultsandcashflowsfortheyearthenended,inconformitywiththeChineseAccountingStandards(CAS).IIBasisforOpinionWeconductedourauditsinaccordancewiththeAuditStandardsforChineseRegisteredAccountants.OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor’sResponsibilitiesforAuditofFinancialStatementssectionofourreport.WeareindependentoftheCompanyinaccordancewiththeChinaCodeofEthicsforCertifiedPublicAccountants,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththesaidCodeofEthics.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.IIIKeyAuditMattersKeyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditofthefinancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.(I)RecognitionofrevenueFordetails,pleaserefertotheNoteIII-27andtheNoteV-46ofthefinancialreport.
1.ItemdescriptionThebusinessesofLuThaiTextileCo.,Ltd.mainlyareproductionandsalesofyarn-dyedfabricsandshirts.TheoperationrevenueoftheCompanyin2023wasRMB5,961,477,300,ofwhichexportincomeaccountedforover50%.Fortheincomefromdomesticsales,theamountofproductsalesincomeisrecognizedwhentheproductsaredeliveredtoandconfirmedbythepurchaseraccordingtothecontract.Theincomeisrecognizedwhenthepurchaserobtainscontroloftheproduct.Fortheincomefromexportsales,theamountofsalesincomeisrecognizedwhenproductsaredeclaredanddepartfromportaccordingtothecontract,andthebillofladingisreceived.Theincomeisrecognizedwhenthepurchaserobtainscontroloftheproduct.SinceincomeisoneofthekeyperformanceindicatorsofLuThaiTextileCo.,Ltd.,thereisaninherentriskthatthemanagementmanipulatesincometoachievespecificgoalsorexpectations,therefore,weidentifyincomerecognitionasakeyaudititem.
2.AuditresponseTheauditproceduresforrevenuerecognitionmainlyinclude:
(1)Understandandevaluatethedesigneffectivenessofinternalcontrolrelatedtorevenuerecognition,andtesttheeffectivenessofoperation;
(2)Throughinterviewingthemanagementandreviewingtherelevantcontractterms,understandandevaluatewhethertheincomeconfirmationaccountingpolicymeetstherequirementsoftheenterpriseaccountingstandards;
(3)Performanalyticalproceduresonrevenueandcoststoanalyzetherationalityoffluctuationsinsalesvolume,unitprice,andgrossprofitineachmonth,currentyear,andpreviousyearofthecurrentperiod;
(4)Checkthesupportingevidencesuchassalescontract,productdeliveryorder,invoice,customsdeclaration,shippingorder,andsigningreceipt;
(5)Selectsamplestoverifythebalanceandtransactionamount;
(6)Itshallverifytheamountsrelatedtoexportsalesrevenue,exporttaxrefunddeclarations,andChinaE-Portexportdata,amongotherrelevantinformation,byselectingsamplesforspot-checkverification.
(7)Performacut-offtestontherevenuerecognizedbeforeandafterthebalancesheetdate,andchecktheproductdeliveryslip,invoice,customsdeclaration,shippingbill,signingreceipt,etc.,toassesswhethertherevenueisrecognizedwithintheappropriateperiod.(II)InventoryfallingpricereservesFordetails,pleaserefertotheNoteIII-13andtheNoteV-8ofthefinancialreport.
1.ItemdescriptionAsof31December2023,theinventorybalanceofLuThaiTextileCo.,Ltd.wasRMB2,365,378,300andtheinventorydepreciationreservewasRMB241,238,700.Themanagementwithdrewtheinventoryfallingpricereserveswithsignificantjudgmentsandestimates,andtherefore,weidentifyinventoryfallingpricereservesasakeyaudititem.
2.AuditresponseTheauditproceduresforinventoryfallingpricereservesmainlyinclude:
(1)Understandandevaluatethedesigneffectivenessoftheinternalcontrolrelatedtotheprovisionofinventorydeclineprice,andtesttheeffectivenessofoperation;
(2)Understandandevaluatetheappropriatenessofthecompany'sinventorydepreciationreserveprovisionpolicy;
(3)Monitortheinventoryandpayattentiontothestatusoftheinventory,checkwhetherthedefectiveandinventorywithlongaginghavebeenidentified;
(4)Obtaintheinventoryagetable,andconductananalyticalreviewofthelong-ageinventorystatusandturnover;
(5)Checkthechangesintheinventorydepreciationreservesaccruedinpreviousyearsandevaluatetherationalityofthechangesininventorydepreciationreserves;
(6)Obtaintheinventoryfallingpricereservescalculationsheet;recheckandevaluatetherationalityofmajorestimationsmadebythemanagementduringthedeterminationofnetrealizablevalue;conducttherecalculation,checkthesellingpriceaftertheperiodandanalyzetherationalityofthepredictedsellingprice.(III)Assessmentoffairvalueoffinancialassetsmeasuredatfairvalueandchangesincludedincurrentprofitorloss
PleaserefertoNotestoFinancialStatements(NoteIII11andNoteV2,11and54)fordetailsaboutrelevantinformationdisclosure.
1.EventDescriptionUpto31December2023,thebalanceoffinancialassetmeasuredbasedonthefairvaluewhosevariationswereincludedthecurrentprofitandlossofLuThaiTextileswasRMB812,550,300,ofwhich,thefairvalueoffinancialassets,whichareclassifiedasLevel1inputvaluesusingquotationsfromactivemarketsforidenticalassets,wasRMB294,181,300,thefairvalueoffinancialassetclassifiedintothetier-2inputvaluebyadoptingtheobservableinputvaluewasRMB429,619,000,andthefairvalueoffinancialassetclassifiedintothetier-3inputvaluebyadoptingthenon-observableinputvaluewasRMB88,750,000.Consideringthatthefinancialasset’sfairvaluevariationshadsignificantimpactontheprofitandlossofLuThaiTextilesin2023,andLuThaiTextilesadoptedthevaluationtechniquetodetermineitsfairvalue(usually,thevaluationtechniqueinvolvesvariousassumptionsandestimationsbasedonsubjectivejudgment,andhugedifferenceintheestimatedfairvalueoffinancialinstrumentmaybecausedbyadoptingdifferentvaluationtechniquesorassumptions),werecognizedtheeventasthekeyauditevent.
2.AuditresponseOurauditproceduresgearedtotheevaluationofthewithdrawaloffinancialinstrument’sfairvaluemainlyinclude:
(1)Studyandevaluatetheeffectivenessofthedesignedinternalcontrolforthevaluationoffinancialinstrumentsandtesttheoperationaleffectiveness;
(2)Assesstheprofessionalquality,competenceandobjectivenessoftheindependentappraiseremployedbytheCompany’smanagement;evaluatetherationalityofvariousassumptionsappliedbytheindependentappraiserintheevaluationreportandtheappropriatenessofthefinancialinstrumentvaluationmodels;
(3)Assesstherationalityandappropriatenessoftheobservablekeyinputvalueappliedduringthevaluationofthetier-2fairvalue;
(4)Rechecktherationality,appropriatenessandcalculationaccuracyofthekeyinputvalueduringthefairvalueassessmentforthetier-3financialinstrumentmeasuredbasedthefairvalueandinvolvingthemanagement’smajorjudgment.IVOtherInformationTheCompany’smanagementisresponsiblefortheotherinformation.TheotherinformationcomprisesalloftheinformationincludedintheCompany’s2023AnnualReportotherthanthefinancialstatementsandourauditor’sreportthereon.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.VResponsibilitiesofManagementandThoseChargedwithGovernanceforFinancialStatementsTheCompany’smanagement(hereinafterreferredtoasthe“Management”)isresponsibleforthepreparationofthefinancialstatementsthatgiveafairviewinaccordancewithCAS,andfordesigning,implementingandmaintainingsuchinternalcontrolasthemanagementdeterminesisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.Inpreparingthefinancialstatements,themanagementisresponsibleforassessingtheCompany’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessthe
managementeitherintendstoliquidatetheCompanyortoceaseoperations,orhavenorealisticalternativebuttodoso.ThosechargedwithgovernanceareresponsibleforoverseeingtheCompany’sfinancialreportingprocess.VIAuditor’sResponsibilitiesforAuditofFinancialStatementsOurobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithCASwillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.AspartofanauditinaccordancewithCAS,weexerciseprofessionaljudgmentandmaintainprofessionalskepticismthroughouttheaudit.Wealso:
(1)Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.
(2)Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances.
(3)Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelateddisclosuresmadebythemanagement.
(4)Concludeontheappropriatenessofthemanagement’suseofthegoingconcernbasisofaccountingand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheCompany’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredbyCAStodrawusers’attentioninourauditor’sreporttotherelateddisclosuresinthefinancialstatementsor,ifsuchdisclosuresareinadequate,weshouldmodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However,futureeventsorconditionsmaycausetheCompanytoceasetocontinueasagoingconcern.
(5)Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.
(6)ObtainsufficientappropriateauditevidenceregardingthefinancialinformationoftheentitiesorbusinessactivitieswithintheCompanytoexpressanopiniononthefinancialstatements.Weareresponsibleforthedirection,supervisionandperformanceoftheCompanyaudit.Weremainsolelyresponsibleforourauditopinion.WecommunicatewiththosechargedwithgovernanceoftheCompanyregardingtheplannedscopeandtimingoftheauditandsignificantauditfindings,includinganynoteworthydeficienciesininternalcontrolthatweidentifyduringouraudit.Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andcommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards(ifapplicable).Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuch
communication.
| GrantThorntonChina(SpecialGeneralPartnership) | ChineseCPA(EngagementPartner):ChineseCPA: | |
| Beijing·China | 10April2024 | |
IIFinancialStatements
Currencyunitforthefinancialstatementsandthenotesthereto:RMB
1.ConsolidatedBalanceSheet
PreparedbyLuThaiTextileCo.,Ltd.
31December2023
Unit:RMB
| Item | 31December2023 | 1January2023 |
| Currentassets: | ||
| Monetaryassets | 1,558,252,048.03 | 2,067,768,253.97 |
| Held-for-tradingfinancialassets | 723,800,275.39 | 267,695,159.48 |
| Notesreceivable | 99,642,708.67 | 168,755,715.84 |
| Accountsreceivable | 826,467,684.78 | 660,427,526.19 |
| Accountsreceivablefinancing | 18,248,205.76 | 11,208,304.78 |
| Prepayments | 51,863,447.56 | 95,021,598.32 |
| Otherreceivables | 22,168,807.43 | 89,855,659.99 |
| Including:Interestreceivable | ||
| Dividendsreceivable | 18,563,298.39 | |
| Inventories | 2,124,139,574.70 | 2,107,849,708.33 |
| Contractassets | ||
| Assetsheldforsale | ||
| Currentportionofnon-currentassets | ||
| Othercurrentassets | 145,112,114.03 | 76,847,903.07 |
| Totalcurrentassets | 5,569,694,866.35 | 5,545,429,829.97 |
| Non-currentassets: | ||
| Long-termreceivables | ||
| Long-termequityinvestments | 143,537,479.77 | 184,168,625.69 |
| Investmentsinotherequityinstruments | ||
| Othernon-currentfinancialassets | 88,750,000.00 | 337,110,000.00 |
| Investmentproperty | 19,578,175.93 | 20,460,935.21 |
| Fixedassets | 5,597,692,505.07 | 5,807,847,850.67 |
| Constructioninprogress | 868,496,878.41 | 199,943,501.73 |
| Right-of-useassets | 463,226,419.21 | 481,420,505.31 |
| Intangibleassets | 343,347,879.42 | 352,889,578.06 |
| Developmentcosts | ||
| Goodwill | 20,563,803.29 | 20,563,803.29 |
| Long-termprepaidexpense | 1,815,838.60 | 2,948,981.97 |
| Deferredincometaxassets | 157,892,110.06 | 155,774,523.25 |
| Othernon-currentassets | 155,690,266.83 | 242,539,466.88 |
| Totalnon-currentassets | 7,860,591,356.59 | 7,805,667,772.06 |
| Totalassets | 13,430,286,222.94 | 13,351,097,602.03 |
| Currentliabilities: | ||
| Short-termborrowings | 580,704,772.27 | 518,946,415.96 |
| Held-for-tradingfinancialliabilities | 46,785,831.47 | 4,276,929.70 |
| Notespayable | 55,450,000.00 | |
| Accountspayable | 275,502,915.05 | 246,588,463.74 |
| Advancesfromcustomers | ||
| Contractliabilities | 188,073,335.89 | 206,879,672.53 |
| Employeebenefitspayable | 284,344,973.72 | 330,027,159.72 |
| Taxespayable | 42,633,232.55 | 31,483,442.06 |
| Otherpayables | 47,549,373.52 | 83,357,296.71 |
| Including:Interestpayable | ||
| Dividendspayable | 441,113.64 | 441,113.64 |
| Currentportionofnon-currentliabilities | 96,207,192.49 | 307,921,837.35 |
| Othercurrentliabilities | 63,646,908.11 | 66,889,025.17 |
| Totalcurrentliabilities | 1,625,448,535.07 | 1,851,820,242.94 |
| Non-currentliabilities: | ||
| Long-termborrowings | 259,992,974.40 | 186,431,096.24 |
| Bondspayable | 1,476,572,070.79 | 1,438,162,231.27 |
| Leaseliabilities | 86,580,224.41 | 98,501,303.83 |
| Long-termpayables | ||
| Long-termemployeebenefitspayable | 57,276,675.61 | 57,417,997.65 |
| Provisions | ||
| Deferredincome | 151,768,947.92 | 159,615,037.36 |
| Deferredincometaxliabilities | 155,178,797.04 | 151,243,432.80 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 2,187,369,690.17 | 2,091,371,099.15 |
| Totalliabilities | 3,812,818,225.24 | 3,943,191,342.09 |
| Owners’equity: | ||
| Sharecapital | 863,607,634.00 | 887,633,151.00 |
| Otherequityinstruments | 71,383,677.78 | 71,383,830.75 |
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Capitalreserves | 334,792,614.76 | 395,872,135.71 |
| Less:Treasurystock | 193,438,720.78 | 154,396,198.73 |
| Othercomprehensiveincome | 131,343,141.63 | 107,628,898.09 |
| Specificreserve | ||
| Surplusreserves | 1,260,661,015.34 | 1,215,124,336.54 |
| Generalreserve | ||
| Retainedearnings | 6,762,457,543.07 | 6,490,910,719.35 |
| TotalequityattributabletoownersoftheCompanyastheparent | 9,230,806,905.80 | 9,014,156,872.71 |
| Non-controllinginterests | 386,661,091.90 | 393,749,387.23 |
| Totalowners’equity | 9,617,467,997.70 | 9,407,906,259.94 |
| Totalliabilitiesandowners’equity | 13,430,286,222.94 | 13,351,097,602.03 |
Legalrepresentative:LiuZibinChiefAccountant:ZhangKemingFinancialManager:ZhangKeming
2.BalanceSheetoftheCompanyastheParent
Unit:RMB
| Item | 31December2023 | 1January2023 |
| Currentassets: | ||
| Monetaryassets | 932,232,103.80 | 1,493,189,218.38 |
| Held-for-tradingfinancialassets | 446,874,251.41 | 14,782,050.00 |
| Derivativefinancialassets | ||
| Notesreceivable | 54,622,178.42 | 99,348,764.36 |
| Accountsreceivable | 356,483,425.59 | 357,917,050.71 |
| Accountsreceivablefinancing | 11,214,873.48 | 4,977,876.31 |
| Prepayments | 21,426,761.45 | 52,932,385.24 |
| Otherreceivables | 2,064,459,414.54 | 1,982,595,534.99 |
| Including:Interestreceivable | ||
| Dividendsreceivable | 18,563,298.39 | |
| Inventories | 955,634,154.13 | 1,032,571,546.29 |
| Contractassets | ||
| Available-for-saleassets | ||
| Currentportionofnon-currentassets | ||
| Othercurrentassets | 2,443,246.51 | 12,117,078.06 |
| Totalcurrentassets | 4,845,390,409.33 | 5,050,431,504.34 |
| Non-currentassets: | ||
| Long-termreceivables | ||
| Long-termequityinvestments | 3,579,497,806.27 | 3,069,423,182.09 |
| Investmentsinotherequityinstruments |
| Othernon-currentfinancialassets | 76,750,000.00 | 325,110,000.00 |
| Investmentproperty | 64,745,052.00 | 68,234,288.24 |
| Fixedassets | 2,048,332,131.98 | 2,239,204,199.53 |
| Constructioninprogress | 3,320,771.05 | 14,457,725.94 |
| Right-of-useassets | 90,043,845.90 | 102,526,417.74 |
| Intangibleassets | 197,852,690.71 | 203,872,938.32 |
| Developmentcosts | ||
| Goodwill | ||
| Long-termdeferredexpenses | 689,403.73 | 1,124,816.52 |
| Deferredincometaxassets | 80,728,077.79 | 70,230,669.83 |
| Othernon-currentassets | 153,767,959.47 | 180,305,870.74 |
| Totalnon-currentassets | 6,295,727,738.90 | 6,274,490,108.95 |
| Totalassets | 11,141,118,148.23 | 11,324,921,613.29 |
| Currentliabilities: | ||
| Short-termborrowings | 3,180,000.00 | 73,701,088.21 |
| Notespayable | 213,094,435.63 | |
| Accountspayable | 108,266,517.50 | 100,586,843.48 |
| Advancesfromcustomers | ||
| Contractliabilities | 106,140,758.76 | 91,983,662.84 |
| Payrollpayable | 188,784,236.01 | 231,917,717.02 |
| Taxespayable | 23,490,180.58 | 9,698,693.68 |
| Otherpayables | 133,819,575.89 | 164,914,178.73 |
| Including:Interestpayable | ||
| Dividendspayable | 441,113.64 | 441,113.64 |
| Held-for-saleliabilities | ||
| Currentportionofnon-currentliabilities | 95,832,728.97 | 307,273,908.99 |
| Othercurrentliabilities | 44,293,993.88 | 42,075,638.45 |
| Totalcurrentliabilities | 703,807,991.59 | 1,235,246,167.03 |
| Non-currentliabilities: | ||
| Long-termborrowings | 259,992,974.40 | 186,431,096.24 |
| Bondspayable | 1,476,572,070.79 | 1,438,162,231.27 |
| Leaseliabilities | 89,388,836.15 | 100,877,929.66 |
| Long-termpayables | ||
| Long-termpayrollpayable | 57,276,675.61 | 57,417,997.65 |
| Provisions | ||
| Deferredincome | 114,149,056.16 | 119,562,568.94 |
| Deferredincometaxliabilities | 120,804,925.25 | 112,945,049.91 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 2,118,184,538.36 | 2,015,396,873.67 |
| Totalliabilities | 2,821,992,529.95 | 3,250,643,040.70 |
| Owners’equity: | ||
| Sharecapital | 863,607,634.00 | 887,633,151.00 |
| Otherequityinstruments | 71,383,677.78 | 71,383,830.75 |
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Capitalreserves | 396,172,649.00 | 457,252,169.95 |
| Less:Treasurystock | 193,438,720.78 | 154,396,198.73 |
| Othercomprehensiveincome | -41,439.79 | -30,162.34 |
| Specificreserve | ||
| Surplusreserves | 1,257,552,275.70 | 1,212,015,596.90 |
| Retainedearnings | 5,923,889,542.37 | 5,600,420,185.06 |
| Totalowners’equity | 8,319,125,618.28 | 8,074,278,572.59 |
| Totalliabilitiesandowners’equity | 11,141,118,148.23 | 11,324,921,613.29 |
3.ConsolidatedIncomeStatement
Unit:RMB
| Item | 2023 | 2022 |
| 1.Revenue | 5,961,477,252.98 | 6,938,342,135.90 |
| Including:Operatingrevenue | 5,961,477,252.98 | 6,938,342,135.90 |
| 2.Costsandexpenses | 5,430,655,421.05 | 5,884,547,175.68 |
| Including:Costofsales | 4,591,388,915.40 | 5,154,367,596.90 |
| Taxesandsurcharges | 63,259,971.00 | 69,467,165.08 |
| Sellingexpense | 148,454,814.21 | 136,929,096.72 |
| Administrativeexpense | 382,327,532.79 | 396,309,634.39 |
| Developmentcost | 239,775,343.18 | 276,424,812.26 |
| Financecosts | 5,448,844.47 | -148,951,129.67 |
| Including:Interestexpense | 86,305,243.50 | 88,644,208.75 |
| Interestincome | 51,052,872.64 | 49,863,731.95 |
| Add:Otherincome | 45,126,894.28 | 49,142,717.20 |
| Returnoninvestment(“-”forloss) | 39,364,608.46 | 13,734,073.31 |
| Including:Shareofprofitorlossofjointventuresandassociates | -9,556,170.35 | 28,049,040.53 |
| Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
| Exchangegain(“-”forloss) | ||
| Netgainonexposurehedges(“-”forloss) | ||
| Gainonchangesinfairvalue(“-”forloss) | -65,020,725.14 | 169,192,724.92 |
| Creditimpairmentloss(“-”forloss) | -2,300,057.75 | -18,134,328.11 |
| Assetimpairmentloss(“-”forloss) | -105,876,786.52 | -186,305,963.36 |
| Assetdisposalincome(“-”forloss) | -9,123,336.47 | 912,625.90 |
| 3.Operatingprofit(“-”forloss) | 432,992,428.79 | 1,082,336,810.08 |
| Add:Non-operatingincome | 9,347,696.19 | 8,056,548.73 |
| Less:Non-operatingexpense | 5,146,681.99 | 11,007,935.46 |
| 4.Profitbeforetax(“-”forloss) | 437,193,442.99 | 1,079,385,423.35 |
| Less:Incometaxexpense | 40,841,005.37 | 105,623,060.81 |
| 5.Netprofit(“-”fornetloss) | 396,352,437.62 | 973,762,362.54 |
| 5.1Byoperatingcontinuity | ||
| 5.1.1Netprofitfromcontinuingoperations(“-”fornetloss) | 396,352,437.62 | 973,762,362.54 |
| 5.1.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
| 5.2Byownership | ||
| 5.2.1NetprofitattributabletoshareholdersoftheCompanyastheparent | 403,444,254.42 | 963,864,819.43 |
| 5.2.2Netprofitattributabletonon-controllinginterests | -7,091,816.80 | 9,897,543.11 |
| 6.Othercomprehensiveincome,netoftax | 23,717,765.01 | 144,092,458.68 |
| AttributabletoownersoftheCompanyastheparent | 23,714,243.54 | 144,052,646.46 |
| 6.1Itemsthatwillnotbereclassifiedtoprofitorloss | ||
| 6.1.1Changescausedbyre-measurementsondefinedbenefitschemes | ||
| 6.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
| 6.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | ||
| 6.1.4Changesinthefairvaluearisingfromchangesinowncreditrisk | ||
| 6.1.5Other | ||
| 6.2Itemsthatwillbereclassifiedtoprofitorloss | 23,714,243.54 | 144,052,646.46 |
| 6.2.1Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod | ||
| 6.2.2Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
| 6.2.3Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 6.2.4Creditimpairmentallowanceforinvestmentsinotherdebtobligations | ||
| 6.2.5Reserveforcashflowhedges | ||
| 6.2.6Differencesarisingfromthetranslationofforeigncurrency-denominatedfinancialstatements | 23,714,956.57 | 143,850,902.02 |
| 6.2.7Other | -713.03 | 201,744.44 |
| Attributabletonon-controllinginterests | 3,521.47 | 39,812.22 |
| 7.Totalcomprehensiveincome | 420,070,202.63 | 1,117,854,821.22 |
| AttributabletoownersoftheCompanyastheparent | 427,158,497.96 | 1,107,917,465.89 |
| Attributabletonon-controllinginterests | -7,088,295.33 | 9,937,355.33 |
| 8.Earningspershare | ||
| 8.1Basicearningspershare | 0.47 | 1.10 |
| 8.2Dilutedearningspershare | 0.42 | 0.95 |
Wherebusinesscombinationsundercommoncontroloccurredinthecurrentperiod,thenetprofitachievedbytheacquireesbeforethecombinationswasRMB0.00,withtheamountforthesameperiodoflastyearbeingRMB0.00.Legalrepresentative:LiuZibinChiefAccountant:ZhangKemingFinancialManager:ZhangKeming
4.IncomeStatementoftheCompanyastheParent
Unit:RMB
| Item | 2023 | 2022 |
| 1.Operatingrevenue | 3,427,661,629.75 | 4,207,250,282.21 |
| Less:Costofsales | 2,657,436,337.48 | 3,167,800,915.91 |
| Taxesandsurcharges | 40,216,738.61 | 48,152,045.75 |
| Sellingexpense | 100,621,317.61 | 98,346,509.45 |
| Administrativeexpense | 201,565,813.64 | 273,742,666.38 |
| R&Dexpense | 157,866,751.74 | 186,084,341.76 |
| Financecosts | -19,059,608.38 | -171,451,099.25 |
| Including:Interestexpense | 44,494,486.25 | 21,891,357.83 |
| Interestincome | 33,971,447.09 | 34,599,913.21 |
| Add:Otherincome | 20,954,801.42 | 22,189,971.41 |
| Returnoninvestment(“-”forloss) | 217,442,278.85 | 149,933,954.32 |
| Including:Shareofprofitorlossofjointventuresandassociates | -9,556,170.35 | 28,049,040.53 |
| Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
| Netgainonexposurehedges(“-”forloss) | ||
| Gainonchangesinfairvalue(“-”forloss) | -17,222,836.45 | 160,554,050.00 |
| Creditimpairmentloss(“-”forloss) | 6,673,149.93 | -2,217,796.79 |
| Assetimpairmentloss(“-”forloss) | -48,963,959.94 | -81,729,018.43 |
| Assetdisposalincome(“-”forloss) | -43,734.52 | 182,029.49 |
| 2.Operatingprofit(“-”forloss) | 467,853,978.34 | 853,488,092.21 |
| Add:Non-operatingincome | 7,022,950.83 | 6,621,289.52 |
| Less:Non-operatingexpense | 1,850,658.24 | 6,748,987.44 |
| 3.Profitbeforetax(“-”forloss) | 473,026,270.93 | 853,360,394.29 |
| Less:Incometaxexpense | 17,659,482.92 | 78,265,437.44 |
| 4.Netprofit(“-”fornetloss) | 455,366,788.01 | 775,094,956.85 |
| 4.1Netprofitfromcontinuingoperations(“-”fornetloss) | 455,366,788.01 | 775,094,956.85 |
| 4.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
| 5.Othercomprehensiveincome,netoftax | -11,277.45 | 263,417.90 |
| 5.1Itemsthatwillnotbereclassifiedtoprofitorloss | ||
| 5.1.1Changescausedbyre-measurementsondefinedbenefitschemes | ||
| 5.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
| 5.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | ||
| 5.1.4Changesinthefairvaluearisingfromchangesinowncreditrisk | ||
| 5.1.5Other | ||
| 5.2Itemsthatwillbereclassifiedtoprofitorloss | -11,277.45 | 263,417.90 |
| 5.2.1Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod |
| 5.2.2Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
| 5.2.3Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 5.2.4Creditimpairmentallowanceforinvestmentsinotherdebtobligations | ||
| 5.2.5Reserveforcashflowhedges | ||
| 5.2.6Differencesarisingfromthetranslationofforeigncurrency-denominatedfinancialstatements | ||
| 5.2.7Other | -11,277.45 | 263,417.90 |
| 6.Totalcomprehensiveincome | 455,355,510.56 | 775,358,374.75 |
| 7.Earningspershare | ||
| 7.1Basicearningspershare | 0.53 | 0.88 |
| 7.2Dilutedearningspershare | 0.49 | 0.79 |
5.ConsolidatedCashFlowStatement
Unit:RMB
| Item | 2023 | 2022 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 5,492,424,305.68 | 7,001,597,756.89 |
| Taxrebates | 125,496,730.53 | 166,814,030.33 |
| Cashgeneratedfromotheroperatingactivities | 115,366,461.66 | 50,207,676.76 |
| Subtotalofcashgeneratedfromoperatingactivities | 5,733,287,497.87 | 7,218,619,463.98 |
| Paymentsforcommoditiesandservices | 3,008,274,838.63 | 3,927,652,179.15 |
| Cashpaidtoandforemployees | 1,565,653,879.04 | 1,548,156,910.96 |
| Taxespaid | 146,230,769.74 | 182,308,141.79 |
| Cashusedinotheroperatingactivities | 158,263,473.04 | 138,191,457.82 |
| Subtotalofcashusedinoperatingactivities | 4,878,422,960.45 | 5,796,308,689.72 |
| Netcashgeneratedfrom/usedinoperatingactivities | 854,864,537.42 | 1,422,310,774.26 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestment | 9,465,141,937.71 | 133,323,521.50 |
| Returnoninvestment | 57,805,732.66 | 34,285,319.99 |
| Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 6,391,414.47 | 7,324,525.46 |
| Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | ||
| Cashgeneratedfromotherinvestingactivities | 153,332,756.55 | 89,213,325.33 |
| Subtotalofcashgeneratedfrominvestingactivities | 9,682,671,841.39 | 264,146,692.28 |
| Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 846,768,782.56 | 503,584,860.31 |
| Paymentsforinvestments | 9,664,068,682.71 | 359,556,504.86 |
| Cashusedinotherinvestingactivities | 125,073,907.21 | 118,661,325.53 |
| Subtotalofcashusedininvestingactivities | 10,635,911,372.48 | 981,802,690.70 |
| Netcashgeneratedfrom/usedininvestingactivities | -953,239,531.09 | -717,655,998.42 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | 19,086,927.80 | |
| Including:Capitalcontributionsbynon-controllingintereststosubsidiaries | ||
| Borrowingsraised | 1,289,625,206.43 | 1,326,434,596.95 |
| Cashgeneratedfromotherfinancingactivities | 98,800.40 | |
| Subtotalofcashgeneratedfromfinancingactivities | 1,289,724,006.83 | 1,345,521,524.75 |
| Repaymentofborrowings | 1,345,902,236.09 | 2,118,703,417.56 |
| Interestanddividendspaid | 140,337,440.33 | 114,018,478.84 |
| Including:Dividendspaidbysubsidiariestonon-controllinginterests | ||
| Cashusedinotherfinancingactivities | 191,144,339.52 | 107,326,619.83 |
| Subtotalofcashusedinfinancingactivities | 1,677,384,015.94 | 2,340,048,516.23 |
| Netcashgeneratedfrom/usedinfinancingactivities | -387,660,009.11 | -994,526,991.48 |
| 4.Effectofforeignexchangerateschangesoncashandcashequivalents | 16,753,038.55 | 142,762,600.91 |
| 5.Netincreaseincashandcashequivalents | -469,281,964.23 | -147,109,614.73 |
| Add:Cashandcashequivalents,beginningoftheperiod | 1,822,897,270.16 | 1,970,006,884.89 |
| 6.Cashandcashequivalents,endoftheperiod | 1,353,615,305.93 | 1,822,897,270.16 |
6.CashFlowStatementoftheCompanyastheParent
Unit:RMB
| Item | 2023 | 2022 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 3,400,282,767.04 | 4,230,164,898.24 |
| Taxrebates | 18,736,021.12 | 35,115,485.51 |
| Cashgeneratedfromotheroperatingactivities | 104,254,111.11 | 46,602,876.06 |
| Subtotalofcashgeneratedfromoperatingactivities | 3,523,272,899.27 | 4,311,883,259.81 |
| Paymentsforcommoditiesandservices | 2,159,792,398.75 | 2,204,442,463.82 |
| Cashpaidtoandforemployees | 800,852,277.47 | 867,417,441.71 |
| Taxespaid | 76,441,020.56 | 124,452,272.83 |
| Cashusedinotheroperatingactivities | 81,704,187.26 | 87,964,680.84 |
| Subtotalofcashusedinoperatingactivities | 3,118,789,884.04 | 3,284,276,859.20 |
| Netcashgeneratedfrom/usedinoperatingactivities | 404,483,015.23 | 1,027,606,400.61 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestment | 9,682,135,302.71 | 473,611,167.77 |
| Returnoninvestment | 224,820,810.27 | 186,817,055.74 |
| Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 27,474,017.14 | 32,427,869.91 |
| Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits |
| Cashgeneratedfromotherinvestingactivities | 2,278,859,489.72 | 2,254,482,395.37 |
| Subtotalofcashgeneratedfrominvestingactivities | 12,213,289,619.84 | 2,947,338,488.79 |
| Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 39,152,926.47 | 143,565,978.32 |
| Paymentsforinvestments | 10,390,555,710.00 | 662,467,290.00 |
| Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits | ||
| Cashusedinotherinvestingactivities | 2,206,901,511.31 | 2,002,472,544.95 |
| Subtotalofcashusedininvestingactivities | 12,636,610,147.78 | 2,808,505,813.27 |
| Netcashgeneratedfrom/usedininvestingactivities | -423,320,527.94 | 138,832,675.52 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | 19,086,927.80 | |
| Borrowingsraised | 287,145,597.90 | 592,777,524.65 |
| Cashgeneratedfromotherfinancingactivities | 90,098,800.40 | 154,870,600.00 |
| Subtotalofcashgeneratedfromfinancingactivities | 377,244,398.30 | 766,735,052.45 |
| Repaymentofborrowings | 485,589,548.34 | 1,357,097,218.44 |
| Interestanddividendspaid | 119,661,804.52 | 100,075,384.31 |
| Cashusedinotherfinancingactivities | 274,154,122.94 | 191,679,488.04 |
| Subtotalofcashusedinfinancingactivities | 879,405,475.80 | 1,648,852,090.79 |
| Netcashgeneratedfrom/usedinfinancingactivities | -502,161,077.50 | -882,117,038.34 |
| 4.Effectofforeignexchangerateschangesoncashandcashequivalents | 2,858,399.67 | 21,810,782.76 |
| 5.Netincreaseincashandcashequivalents | -518,140,190.54 | 306,132,820.55 |
| Add:Cashandcashequivalents,beginningoftheperiod | 1,283,846,116.80 | 977,713,296.25 |
| 6.Cashandcashequivalents,endoftheperiod | 765,705,926.26 | 1,283,846,116.80 |
7.ConsolidatedStatementsofChangesinOwners’Equity
2023
Unit:RMB
| Item | 2023 | ||||||||||||||
| EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | Other | Subtotal | |||||
| Preferredshares | Perpetualbonds | Other | |||||||||||||
| 1.Balancesasattheendoftheprioryear | 887,633,151.00 | 71,383,830.75 | 395,872,135.71 | 154,396,198.73 | 107,628,898.09 | 1,215,124,336.54 | 6,490,910,719.35 | 9,014,156,872.71 | 393,749,387.23 | 9,407,906,259.94 | |||||
| Add:Adjustmentsforchangedaccountingpolicies | |||||||||||||||
| Adjustmentsforcorrectionsofpreviouserrors | |||||||||||||||
| Otheradjustments | |||||||||||||||
| 2.Balancesasatthebeginningoftheyear | 887,633,151.00 | 71,383,830.75 | 395,872,135.71 | 154,396,198.73 | 107,628,898.09 | 1,215,124,336.54 | 6,490,910,719.35 | 9,014,156,872.71 | 393,749,387.23 | 9,407,906,259.94 | |||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | -24,025,517.00 | -152.97 | -61,079,520.95 | 39,042,522.05 | 23,714,243.54 | 45,536,678.80 | 271,546,823.72 | 216,650,033.09 | -7,088,295.33 | 209,561,737.76 | ||||
| 3.1Totalcomprehensiveincome | 23,714,243.54 | 403,444,254.42 | 427,158,497.96 | -7,088,295.33 | 420,070,202.63 | |||||||||
| 3.2Capitalincreasedandreducedbyowners | -24,025,517.00 | -152.97 | -61,079,520.95 | 39,042,522.05 | -124,147,712.97 | -124,147,712.97 | ||||||||
| 3.2.1Ordinarysharesincreasedbyshareholders | -24,025,517.00 | -76,058,492.62 | -100,084,009.62 | -100,084,009.62 | ||||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||||||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | 16,824,114.86 | 16,824,114.86 | 16,824,114.86 | |||||||||||
| 3.2.4 | -152.97 | - | 39,042,52 | -40,887,818.21 | - |
| Other | 1,845,143.19 | 2.05 | 40,887,818.21 | ||||||||
| 3.3Profitdistribution | 45,536,678.80 | -131,897,430.70 | -86,360,751.90 | -86,360,751.90 | |||||||
| 3.3.1Appropriationtosurplusreserves | 45,536,678.80 | -45,536,678.80 | |||||||||
| 3.3.2Appropriationtogeneralreserve | |||||||||||
| 3.3.3Appropriationtoowners(orshareholders) | -86,360,751.90 | -86,360,751.90 | -86,360,751.90 | ||||||||
| 3.3.4Other | |||||||||||
| 3.4Transferswithinowners’equity | |||||||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | |||||||||||
| 3.4.2Increaseincapital(orsharecapital)from |
| surplusreserves | ||||||
| 3.4.3Lossoffsetbysurplusreserves | ||||||
| 3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings | ||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | ||||||
| 3.4.6Other | ||||||
| 3.5Specificreserve | ||||||
| 3.5.1Increaseintheperiod | 6,075,563.41 | 6,075,563.41 | 6,075,563.41 | |||
| 3.5.2Usedintheperiod | -6,075,563.41 | -6,075,563.41 | -6,075,563.41 | |||
| 3.6Other |
| 4.Balancesasattheendoftheperiod | 863,607,634.00 | 71,383,677.78 | 334,792,614.76 | 193,438,720.78 | 131,343,141.63 | 1,260,661,015.34 | 6,762,457,543.07 | 9,230,806,905.80 | 386,661,091.90 | 9,617,467,997.70 |
2022
Unit:RMB
| Item | 2022 | ||||||||||||||
| EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | Other | Subtotal | |||||
| Preferredshares | Perpetualbonds | Other | |||||||||||||
| 1.Balancesasattheendoftheprioryear | 882,341,295.00 | 71,384,656.84 | 340,587,387.65 | 78,908,300.00 | -36,423,748.37 | 1,215,124,336.54 | 5,589,201,772.37 | 7,983,307,400.03 | 383,812,031.90 | 8,367,119,431.93 | |||||
| Add:Adjustmentsforchangedaccountingpolicies | |||||||||||||||
| Adjustmentsforcorrectionsofpreviouserrors | |||||||||||||||
| Otheradjustments | |||||||||||||||
| 2.Balancesasatthebeginningoftheyear | 882,341,295.00 | 71,384,656.84 | 340,587,387.65 | 78,908,300.00 | -36,423,748.37 | 1,215,124,336.54 | 5,589,201,772.37 | 7,983,307,400.03 | 383,812,031.90 | 8,367,119,431.93 | |||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | 5,291,856.00 | -826.09 | 55,284,748.06 | 75,487,898.73 | 144,052,646.46 | 901,708,946.98 | 1,030,849,472.68 | 9,937,355.33 | 1,040,786,828.01 | |||
| 3.1Totalcomprehensiveincome | 144,052,646.46 | 963,864,819.43 | 1,107,917,465.89 | 9,937,355.33 | 1,117,854,821.22 | |||||||
| 3.2Capitalincreasedandreducedbyowners | 5,291,856.00 | -826.09 | 55,284,748.06 | 75,487,898.73 | -14,912,120.76 | -14,912,120.76 | ||||||
| 3.2.1Ordinarysharesincreasedbyshareholders | 5,291,856.00 | 13,743,193.13 | 19,035,049.13 | 19,035,049.13 | ||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||||||||||
| 3.2.3Share-basedpaymentsincludedinowners’ | 39,975,678.06 | 39,975,678.06 | 39,975,678.06 |
| equity | ||||||||||
| 3.2.4Other | -826.09 | 1,565,876.87 | 75,487,898.73 | -73,922,847.95 | -73,922,847.95 | |||||
| 3.3Profitdistribution | -62,155,872.45 | -62,155,872.45 | -62,155,872.45 | |||||||
| 3.3.1Appropriationtosurplusreserves | ||||||||||
| 3.3.2Appropriationtogeneralreserve | ||||||||||
| 3.3.3Appropriationtoowners(orshareholders) | -62,155,872.45 | -62,155,872.45 | -62,155,872.45 | |||||||
| 3.3.4Other | ||||||||||
| 3.4Transferswithinowners’equity | ||||||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapital |
| reserves |
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves |
| 3.4.3Lossoffsetbysurplusreserves |
| 3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings |
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings |
| 3.4.6Other |
| 3.5Specificreserve |
| 3.5.1Increaseintheperiod | 5,414,407.96 | 5,414,407.96 | 5,414,407.96 | |||||||||||
| 3.5.2Usedintheperiod | -5,414,407.96 | -5,414,407.96 | -5,414,407.96 | |||||||||||
| 3.6Other | ||||||||||||||
| 4.Balancesasattheendoftheperiod | 887,633,151.00 | 71,383,830.75 | 395,872,135.71 | 154,396,198.73 | 107,628,898.09 | 1,215,124,336.54 | 6,490,910,719.35 | 9,014,156,872.71 | 393,749,387.23 | 9,407,906,259.94 |
8.StatementsofChangesinOwners’EquityoftheCompanyastheParent
2023
Unit:RMB
| Item | 2023 | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedearnings | Other | Totalowners’equity | |||
| Preferredshares | Perpetualbonds | Other | ||||||||||
| 1.Balancesasattheendoftheprioryear | 887,633,151.00 | 71,383,830.75 | 457,252,169.95 | 154,396,198.73 | -30,162.34 | 1,212,015,596.90 | 5,600,420,185.06 | 8,074,278,572.59 | ||||
| Add:Adjustmentsforchangedaccountingpolicies | ||||||||||||
| Adjustmentsforcorrectionsofprevious | ||||||||||||
| errors | |||||||||||
| Otheradjustments | |||||||||||
| 2.Balancesasatthebeginningoftheyear | 887,633,151.00 | 71,383,830.75 | 457,252,169.95 | 154,396,198.73 | -30,162.34 | 1,212,015,596.90 | 5,600,420,185.06 | 8,074,278,572.59 | |||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | -24,025,517.00 | -152.97 | -61,079,520.95 | 39,042,522.05 | -11,277.45 | 45,536,678.80 | 323,469,357.31 | 244,847,045.69 | |||
| 3.1Totalcomprehensiveincome | -11,277.45 | 455,366,788.01 | 455,355,510.56 | ||||||||
| 3.2Capitalincreasedandreducedbyowners | -24,025,517.00 | -152.97 | -61,079,520.95 | 39,042,522.05 | -124,147,712.97 | ||||||
| 3.2.1Ordinarysharesincreasedbyshareholders | -24,025,517.00 | -76,058,492.62 | -100,084,009.62 | ||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | |||||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | 16,824,114.86 | 16,824,114.86 | |||||||||
| 3.2.4Other | -152.97 | -1,845,143.19 | 39,042,522.05 | -40,887,818.21 | |||||||
| 3.3Profitdistribution | 45,536,678.80 | -131,897,430.70 | -86,360,751.90 |
| 3.3.1Appropriationtosurplusreserves | 45,536,678.80 | -45,536,678.80 | |||
| 3.3.2Appropriationtoowners(orshareholders) | -86,360,751.90 | -86,360,751.90 | |||
| 3.3.3Other | |||||
| 3.4Transferswithinowners’equity | |||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | |||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | |||||
| 3.4.3Lossoffsetbysurplusreserves | |||||
| 3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings |
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | |||||||||||
| 3.4.6Other | |||||||||||
| 3.5Specificreserve | |||||||||||
| 3.5.1Increaseintheperiod | |||||||||||
| 3.5.2Usedintheperiod | |||||||||||
| 3.6Other | |||||||||||
| 4.Balancesasattheendoftheperiod | 863,607,634.00 | 71,383,677.78 | 396,172,649.00 | 193,438,720.78 | -41,439.79 | 1,257,552,275.70 | 5,923,889,542.37 | 8,319,125,618.28 |
2022
Unit:RMB
| Item | 2022 | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedearnings | Other | Totalowners’equity | |||
| Preferredshares | Perpetualbonds | Other | ||||||||||
| 1.Balancesasattheendoftheprioryear | 882,341,295.00 | 71,384,656.84 | 401,967,421.89 | 78,908,300.00 | -293,580.24 | 1,212,015,596.90 | 4,887,481,100.66 | 7,375,988,191.05 | ||||
| Add:Adjustmentsforchangedaccountingpolicies | ||||||||||||
| Adjustmentsforcorrectionsofpreviouserrors | |||||||||||
| Otheradjustments | |||||||||||
| 2.Balancesasatthebeginningoftheyear | 882,341,295.00 | 71,384,656.84 | 401,967,421.89 | 78,908,300.00 | -293,580.24 | 1,212,015,596.90 | 4,887,481,100.66 | 7,375,988,191.05 | |||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | 5,291,856.00 | -826.09 | 55,284,748.06 | 75,487,898.73 | 263,417.90 | 712,939,084.40 | 698,290,381.54 | ||||
| 3.1Totalcomprehensiveincome | 263,417.90 | 775,094,956.85 | 775,358,374.75 | ||||||||
| 3.2Capitalincreasedandreducedbyowners | 5,291,856.00 | -826.09 | 55,284,748.06 | 75,487,898.73 | -14,912,120.76 | ||||||
| 3.2.1Ordinarysharesincreasedbyshareholders | 5,291,856.00 | 13,743,193.13 | 19,035,049.13 | ||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | |||||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | 39,975,678.06 | 39,975,678.06 | |||||||||
| 3.2.4Other | -826.09 | 1,565,876.87 | 75,487,898.73 | -73,922,847.95 | |||||||
| 3.3Profitdistribution | -62,155,872.45 | -62,155,872.45 | |||||||||
| 3.3.1Appropriationtosurplusreserves | |||||||||||
| 3.3.2Appropriationtoowners(orshareholders) | -62,155,872.45 | -62,155,872.45 | |||||||||
| 3.3.3Other | |||||||||||
| 3.4Transferswithinowners’equity |
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | |||||||||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | |||||||||||
| 3.4.3Lossoffsetbysurplusreserves | |||||||||||
| 3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings | |||||||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | |||||||||||
| 3.4.6Other | |||||||||||
| 3.5Specificreserve | |||||||||||
| 3.5.1Increaseintheperiod | |||||||||||
| 3.5.2Usedintheperiod | |||||||||||
| 3.6Other | |||||||||||
| 4.Balancesasattheendoftheperiod | 887,633,151.00 | 71,383,830.75 | 457,252,169.95 | 154,396,198.73 | -30,162.34 | 1,212,015,596.90 | 5,600,420,185.06 | 8,074,278,572.59 |
IIICompanyProfile
LuThaiTextileCo.,Ltd.(hereinafterreferredtoas"theCompany"),originallyLuThaiTextileLtd.,wasaSino-foreignjointventureestablishedbyZiboLuchengTextileInvestmentCo.,Ltd.(formerlyZiboLuchengTextileCo.,Ltd.,hereinafterreferredtoas"LuchengTextile")andTailun(Thailand)TextileCo.,Ltd.InFebruary1993,itwasrestructuredintoajoint-stockcompany.InJuly1997,withtheapprovaloftheSecuritiesCommitteeoftheStateCouncil,80,000,000foreignshares(B-shares)werelisteddomestically.On19August1997,itwaslistedontheShenzhenStockExchange,withtheB-sharestockcodebeing200726.On24November2000,theCSRCapprovedtheissuanceofanadditional50,000,000ordinaryshares(A-shares),whichwerelistedontheShenzhenStockExchangeon25December2000,withtheA-sharestockcodebeing000726.Inconformitywiththeresolutionofthe7thMeetingofthe10thBoardofDirectorson10April2023andtheresolutionoftheGeneralMeetingoftheCompanyon12May2023,theProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveCondition,allthe90,000sharesauthorizedtotheoriginalincentivepersonnelwhodidnotconformtotheincentiveconditionoftheCompanywererepurchasedandcancelled.Afterseveralroundsofcapitalincreaseandrepurchase,asat31December2023,theCompany'sregisteredcapitalstoodatRMB863,607,600.Thisincludes591,362,700A-sharesand272,244,900B-shares.TheCompany’sregisteredaddress:No.61,LuthaiAvenue,Hi-techDevelopmentZone,Zibo,ShandongTheCompany’sunifiedsocialcreditcode:91370300613281175KTheCompany’slegalrepresentative:LiuZibin.ThescopeofbusinessoftheCompanyanditssubsidiariesshallincludegeneralprojects:Fabricprintinganddyeingprocessing;garmentmanufacturing,wholesale;procurementofprimaryagriculturalproducts;powergenerationandtransmissionbusiness.TheCompany’sfinancialstatementsandNotesthereofhavebeenapprovedbythe20thMeetingofthe10thBoardofDirectorsheldon10April2024.IVBasisforPreparationofFinancialStatements
1.PreparationBasis
Thisfinancialstatementispreparedinaccordancewiththeaccountingstandardsforbusinessenterprises,andtheapplicationguide,interpretationandotherrelevantregulations(hereinaftercollectivelyreferredtoas“AccountingStandardsforBusinessEnterprises”)issuedbytheMinistryofFinance.Inaddition,theCompanyalsodisclosedrelevantfinancialinformationinaccordancewiththeRegulationsonInformationDisclosureandCompilationforCompaniesPublicOfferingSecuritiesNo.15-GeneralProvisionsonFinancialReport(revisedin2023)issuedbyChinaSecuritiesRegulatoryCommission.TheCompany'saccountingisbasedontheaccrualbasis.Exceptforcertainfinancialinstruments,thisfinancialstatementismeasuredonthebasisofhistoricalcost.Iftheassetisimpaired,thecorrespondingimpairmentprovisionshallbemadeinaccordancewithrelevantregulations.
2.Going-concern
Thefinancialstatementsarepresentedonthebasisofcontinuingoperations.
VSignificantAccountingPoliciesandEstimatesSpecificaccountingpoliciesandaccountingestimatesindicators:
TheCompanydeterminesincomerecognitionpolicyaccordingtoitsproductionandoperationcharacteristics,andthespecificaccountingpoliciesareshowninNoteV(27).
1.StatementofCompliancewiththeAccountingStandardsforBusinessEnterprisesThefinancialstatementspreparedbytheCompanyareincompliancewithincompliancewiththeAccountingStandardsforBusinessEnterprises,whichfactuallyandcompletelypresenttheconsolidated,andtheCompany’sfinancialpositionsasat31December2023,businessresultsandcashflowsfor2023,andotherrelevantinformation.
2.FiscalYear
TheCompany’sfiscalyearstartson1Januaryandendson31DecemberofeveryyearaccordingtotheGregoriancalendar.
3.OperatingCycleTheCompanyregards12monthsasanoperatingcycle.
4.RecordingCurrencyTheCompanyanditsdomesticsubsidiariesadoptRMBastherecordingcurrency.TheCompany’soverseassubsidiariesconfirmtoadoptHKDollarandUSDollarastherecordingcurrencyaccordingtheirmajoreconomicenvironmentoftheoperating.WhenpreparingthefinancialstatementsfortheReportingPeriod,theCompanyadoptedRMBastherecordingcurrency.
5.MethodsforDeterminingMaterialityStandardsandSelectionCriteria
?Applicable□Notapplicable
| Item | Materialitycriteria |
| Significantreceivableswithdrawalofbaddebtprovisionseparatelyaccrued | Individualreceivablesexceeding0.3%oftotalassets |
| SignificantreceivablesreversedorrecoveredduringtheReportingPeriod | Individualreceivablesexceeding0.3%oftotalassets |
| Significantwritten-offofreceivablesduringtheReportingPeriod | Individualreceivablesexceeding0.3%oftotalassets |
| Significantprepaymentsagingoveroneyear | Individualprepaymentamountsexceeding0.3%oftotalassets |
| Significantconstructioninprogress | Individualinvestmentamountsexceeding1%oftotalassets |
| Significantaccountspayableagingoveroneyear | Individualaccountspayableamountsexceeding0.3%oftotalassets |
| Significantnon-wholly-ownedsubsidiary | Asubsidiarywhosetotalassets,operatingincome,ortotalprofit(orabsolutelossamount)exceeds10%ofthecorrespondingitemintheconsolidatedfinancialstatementsisconsideredasignificantnon-whollyownedsubsidiary |
| Significantinvestmentactivityprojects | Individualinvestmentamountsexceeding5%oftotalassets |
6.AccountingTreatmentforBusinessCombinationsundertheCommonControlandNotundertheCommonControl
(1)BusinesscombinationsunderthesamecontrolForbusinesscombinationsunderthesamecontrol,theassetsandliabilitiesofthemergedpartyacquiredbythemergerpartyinthemerger,shallbemeasuredatthecarryingvalueofthemergedpartyintheconsolidatedfinancialstatementofthefinalcontrolleronthecombinationdate.Asforthedifferencebetweenthecarryingvalueofthemergerconsiderationandcarryingvalueofthenetassetsobtainedinthemerger,thecapitalreserve(capitalstockpremium)shallbeadjusted,andifthecapitalreserve(capitalstockpremium)isinsufficienttooffset,theretainedearningsshallbeadjusted.Realizebusinesscombinationunderthesamecontrolinstepsbytransactionseveraltimes
Theassetsandliabilitiesofthecombinedpartyacquiredbythecombiningpartyinthecombination,shallbemeasuredatthebookvalueofthecombinedpartyintheconsolidatedfinancialstatementofthefinalcontrolleronthecombinationdate;thedifferencebetweenthesumofthebookvalueofinvestmentheldbeforecombinationplusthebookvaluenewlypaidonthecombinationdate,andthebookvalueofthenetassetsacquiredincombination,isusedforadjustingthecapitalreserve(capitalstockpremium),andifthecapitalreserve(capitalstockpremium)isinsufficienttooffset,theretainedearningsshallbeadjusted.Thelong-termequityinvestmentheldbythecombiningpartybeforeacquiringthecontrolrightofthecombinedparty,ifrelevantgainsandlosses,othercomprehensiverevenuesandchangesinotherowner’sequityhavebeenconfirmedfromthedateofacquiringequityandthedatewhenthecombiningpartyandthecombinedpartyunderthefinalcontrolofthesameparty,whicheverislater,tothecombinationdate,shalloffsettheretainedearningsatthebeginningorcurrentprofitsandlossesintheperiodofcomparingstatements.
(2)BusinesscombinationsnotunderthesamecontrolForabusinesscombinationnotunderthesamecontrol,thecostofthecombinationistheassetspaid,liabilitiesincurredorassumed,andthefairvalueoftheequitysecuritiesissuedontheacquisitiondatetoobtaincontroloverthepurchasedparty.Onthepurchasedate,theacquiredassets,liabilitiesandcontingentliabilitiesofthepurchasedpartyarerecognizedatfairvalue.Thedifferencebetweenthemergercostandthefairvalueoftheidentifiablenetassetsoftheacquiredpartyacquiredinthemerger(theformerisgreaterthanthelatter)isrecognizedasgoodwill,andsubsequentmeasurementismadebasedonthecostdeductingtheaccumulatedimpairmentprovision;thedifferencebetweenthemergercostandthefairvalueoftheidentifiablenetassetsoftheacquiredpartyacquiredinthemerger(theformerislessthanthelatter)shallberecordedintothecurrentprofitorlossaftertherecheck.AchievebusinesscombinationnotunderthesamecontrolstepbystepthroughmultipletransactionsThecostofconsolidationisthesumoftheconsiderationpaidatthepurchasedateandthefairvalueatthepurchasedateoftheequityalreadyheldbytheacquiredpartybeforethepurchasedate.Forequityoftheacquiredpartythatisalreadyheldbeforethepurchasedate,itshallbere-measuredaccordingtothefairvalueoftheequityonthepurchasedate,andthedifferencebetweenthefairvalueanditsbookvalueshallbeincludedinthecurrentinvestmentincome.Iftheequityoftheacquiredpartyheldbeforethepurchasedateinvolvesothercomprehensiveincomeandthechangesofotherowner'sequity,itshallbetransferredtocurrentincomeonthepurchasedate,othercomprehensiveincomearisingfromtheremeasurementofthenetliabilityornetassetofadefinedbenefitplanbytheinvestee,aswellasothercomprehensiveincomerelatedtoinvestmentsinnon-tradingequityinstrumentsdesignatedatfairvaluethroughothercomprehensiveincome,areexcluded.
(3)TreatmentoftransactioncostsinbusinesscombinationsIntermediaryexpensessuchasauditing,legalservices,evaluationandconsultingandotherrelatedmanagementexpensesincurredforthebusinesscombinationshallbeincludedinthecurrentprofitandlosswhenincurred.Thetransactioncostsofequitysecuritiesordebtsecuritiesissuedasthemergerconsiderationshallbeincludedintheinitialrecognitionamountofequitysecuritiesordebtsecurities.
7.CriteriaforJudgingControlandMethodsforPreparingConsolidatedFinancialStatements
(1)CriteriaforjudgingcontrolTheconsolidationscopeoftheconsolidatedfinancialstatementsisdeterminedonthebasisofcontrol.ControlmeansthattheCompanyhasthepowerovertheinvestedunit,enjoysvariablereturnsbyparticipatingintherelatedactivitiesoftheinvestedunit,andhastheabilitytousethepowerovertheinvestedunittoinfluencetheamountofitsreturn.Whenchangesinrelevantfactsandcircumstancesleadtochangesintheelementsinvolvedinthedefinitionofcontrol,theCompanywillreassess.Indeterminingwhethertoincludeastructuredentitywithintheconsolidationscope,theCompanyconsidersallfactsandcircumstances,includingassessingthepurposeanddesignofthestructuredentity'sestablishment,identifyingthetypesofvariablereturns,andevaluatingwhethertheCompanycontrolsthestructuredentitybasedonwhetherithasassumedsomeorallofthevariabilityinreturnsbyparticipatinginitsrelevantactivities.
(2)Preparationmethodofconsolidatedfinancialstatements
TheconsolidatedfinancialstatementsarepreparedbytheCompanybasedonthefinancialstatementsoftheCompanyanditssubsidiariesandotherrelevantmaterials.Whenpreparingtheconsolidatedfinancialstatements,theaccountingpoliciesandaccountingfiscaloftheCompanyandthoseofsubsidiariesshallbeconsistentandthelargetransactionsandintercoursebalanceamongcompaniesshallbeoffset.SubsidiariesandbusinessesincreasedduetobusinesscombinationsunderthesamecontrolduringtheReportingPeriodshallbeincludedintotheCompany’scombinationscopesincethedatewhentheyarejointlycontrolledbythefinalcontroller,andtheoperatingresultandcashflowsincethenshallberespectivelyincludedintotheconsolidatedincomestatementandconsolidatedcashflowstatement.AsforsubsidiariesandbusinessesincreaseduetobusinesscombinationsnotunderthesamecontrolduringtheReportingPeriod,therevenue,expensesandprofitorthosesubsidiariesandbusinessesfromthepurchasedatetotheendoftheReportingPeriodshallbeincludedintotheconsolidatedincomestatementandthecashflowthereofshallbeincludedintotheconsolidatedcashflowstatement.Theshareofshareholders’equityinsubsidiariesnotbelongingtotheCompanyshallberegardedastheminorityinterestsandseparatelylistedundertheitemofshareholders’equityintheconsolidatedbalancesheet.Theshareofcurrentportionofnetprofitorlossinsubsidiariesbelongingtominorityinterestsshallpresentedastheitemofminorityinterestsundertheitemofnetprofitintheconsolidatedincomestatement.Thedifferencebetweenthelossesofsubsidiariesbornbynot-controllingshareholdersandtheshareofthecompany’sowners’equityattheperiod-beginningthenot-controllingshareholdersenjoy(theformerislargerthanthelatter)shallbeoffsettheminorityinterests.
8.ClassificationofJointArrangementsandAccountingTreatmentofJointOperations
Jointarrangementreferstoanarrangementunderthejointcontroloftwoormoreparticipants.TheCompany'sjointarrangementsaredividedintojointoperationsandjointventures.
(1)JointoperationsAjointoperationreferstoajointarrangementwherebytheCompanyenjoysrelevantassetsofthearrangement,andassumesobligationsrelevantliabilitiesofthearrangement.TheCompanyrecognizesthefollowingitemsrelatedtotheinterestshareinjointoperation,andconductsaccountingtreatmentinaccordancewithrelevantprovisionsoftheAccountingStandardforBusinessEnterprises:
A.Itrecognizesseparatelyheldassetsandjointlyheldassetsaccordingtotheproportion;B.Itrecognizesseparatelyassumedliabilitiesandjointlyassumedliabilitiesaccordingtotheproportion;C.Incomefromthesaleoftheproportionofjointoperationoutputisrecognized;D.Incomefromthesaleofthejointoperationoutputisrecognizedaccordingtotheproportion.E.Whiletheseparatelyincurredfeeisrecognized,theincurredfeeforjointoperationisrecognizedaccordingtotheproportion.
(2)JointventuresAjointventurereferstoajointarrangementwherebytheCompanyenjoystherightofthenetassetsofthearrangementonly.AccountingtreatmentoftheinvestmentofajointventureisconductedbytheCompanyinlinewiththeprovisionsofrelevantequitymethodofaccountingforlong-termequityinvestment.
9.ConfirmationStandardforCashandCashEquivalent
Theterm“cash”referstocashonhandanddepositsthatareavailableforpaymentatanytime.CashequivalentsrefertoinvestmentsheldbytheCompanythatareshort-term,highlyliquid,easilyconvertibleintoknownamountsofcash,andhavelittleriskofchangeinvalue.
10.ForeignCurrencyBusinessesandTranslationofForeignCurrencyFinancialStatements
(1)Foreigncurrencybusiness
TheCompany'sforeigncurrencybusinessistranslatedintotheamountoftherecordingcurrencyattheapproximateexchangerateofthespotexchangerateonthetransactiondate.Onthebalancesheetdate,foreigncurrencymonetaryitemsaretranslatedatthespotexchangerateonthebalancesheetdate.Theexchangedifferencearisingfromthedifferencebetweenthespotexchangerateonthebalancesheetdateandthespotexchangerateatthetimeofinitialrecognitionorthepreviousbalancesheetdateisincludedinthecurrentprofitandloss;forforeigncurrencynon-monetaryitemsmeasuredathistoricalcost,thetranslationadoptsthespotexchangerateonthedaythetransactionoccurs;forforeigncurrencynon-monetaryitemsmeasuredatfairvalue,thetranslationadoptsthespotexchangerateonthedaywhenthefairvalueisconfirmed,andthedifferencebetweentheamountofrecordingcurrencyandtheamountoforiginalrecordingcurrencyshallbeincludedintothecurrentprofitorlossorothercomprehensiveincomebasedonthenatureofnon-monetaryitems.
(2)ConversionofforeigncurrencyfinancialstatementsWhenconvertingtheforeigncurrencyfinancialstatementsofoverseassubsidiariesonthebalancesheetdate,theassetsandliabilitiesitemsinthebalancesheetshallbeconvertedatthespotexchangerateonthebalancesheetdate.Otheritemsofshareholders'equityexceptfor"undistributedprofits"shallbeconvertedatthespotexchangerateontheoccurrencedate.Incomeandexpenseitemsintheincomestatementshallbeconvertedusingtheapproximatespotexchangerateonthetransactiondate.Allitemsinthecashflowstatementareconvertedaccordingtotheapproximatespotexchangerateontheoccurrencedateofcashflow.Theimpactofexchangeratechangesoncashistakenasareconcilingitem,andtheitem"impactofexchangeratechangesoncashandcashequivalents"isseparatelylistedinthecashflowstatementtoreflect.Thedifferencearisingfromtheconversionoffinancialstatementsisreflectedinthe"othercomprehensiveincome"undertheshareholders'equityinthebalancesheet.Whendisposingoftheoverseasoperationandlosingcontrolrights,theforeigncurrencystatementconversiondifferencerelatedtotheoverseasoperationshownundertheshareholders'equityinthebalancesheetshallbetransferredtocurrentprofitandlossofdisposalinwholeorinproportiontothedisposalofoverseasoperation.
11.FinancialInstruments
Financialinstrumentsrefertocontractsthatformoneparty’sfinancialassetsandformotherparties’financialliabilitiesorequityinstruments.
(1)RecognitionandderecognitionoffinancialinstrumentsTheCompanyrecognizesafinancialassetorliabilitywhenitbecomesapartyoftherelevantfinancialinstrumentcontract.Whereafinancialassetsatisfiesanyofthefollowingrequirements,therecognitionofitisterminated:
①Thecontractualrightsforcollectingthecashflowofthesaidfinancialassetareterminated;
②Thesaidfinancialassethasbeentransferredandmeetthefollowingderecognitionconditionsfortransferoffinancialassets.Onlywhentheprevailingobligationsofafinancialliabilityarerelievedinallorinpartmaytherecognitionofthefinancialliabilitybeterminatedinallorpartly.WheretheCompany(debtor)entersintoanagreementwithacreditorsoastosubstitutetheexistingfinancialliabilitiesbywayofanynewfinancialliability,andifthecontractualstipulationsregardingthenewfinancialliabilityissubstantiallydifferentfromthatregardingtheexistingfinancialliability,itterminatestherecognitionoftheexistingfinancialliability,andatthesametimerecognizesthenewfinancialliability.Thepurchaseandsaleoffinancialassetsunderthenormalwaysshallberecognizedandstoppedtoberecognizedrespectivelyatthepriceoftransactiondate.
(2)ClassificationandmeasurementoffinancialassetsTheCompanyclassifiesfinancialassetsintothefollowingthreecategoriesaccordingtothebusinessmodeofmanagingfinancialassetsandthecontractualcashflowcharacteristicsoffinancialassetsuponinitialrecognition:financialassetsmeasuredatamortizedcost,financialassetsmeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincome,andfinancialassetsmeasuredatfairvalueandwhosechangesareincludedincurrentprofitandloss.
Financialassetsaremeasuredatfairvalueuponinitialrecognition.Forfinancialassetsmeasuredatfairvalueandwhosechangesareincludedincurrentprofitandloss,relevanttransactionexpensesaredirectlyincludedincurrentprofitandloss;forothertypesoffinancialassets,relevanttransactionexpensesareincludedintheinitialrecognitionamount.Foraccountsreceivablearisingfromthesaleofproductsortheprovisionoflaborservices,whichdonotincludeordonotconsidersignificantfinancingcomponents,theamountofconsiderationtheCompanyisexpectedtobeentitledtoreceiveistakenastheinitialrecognitionamount.FinancialassetsmeasuredatamortizedcostTheCompanyclassifiesfinancialassetsthatmeetthefollowingconditionsandarenotdesignatedtobemeasuredatfairvalueandwhosechangesareincludedincurrentprofitandlossasfinancialassetsmeasuredatamortizedcost:
TheCompany'sbusinessmodelformanagingthisfinancialassetisaimedatcollectingcontractualcashflow;Thecontractualtermsofthisfinancialassetstipulatethatthecashflowgeneratedonthespecificdateisonlythepaymentofprincipalandinterestbasedontheprincipalamountoutstanding.Suchfinancialassetsaremeasuredinamortizedcostbytheeffectiveinterestmethodafterinitialrecognition.Gainsorlossesarisingfromfinancialassetsmeasuredinamortizedcostthatarenotpartofanyhedgingrelationshipareincludedincurrentprofitandlosswhenderecognition,amortizationaccordingtotheeffectiveinterestmethod,orimpairmentisrecognized.FinancialassetsmeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincomeTheCompanyclassifiesfinancialassetsthatmeetthefollowingconditionsandarenotdesignatedtobemeasuredatfairvalueandwhosechangesareincludedincurrentprofitandlossasfinancialassetsmeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincome:
TheCompany'sbusinessmodelformanagingthisfinancialassetisaimedatbothcollectingthecontractualcashflowandsellingthisfinancialasset;Thecontractualtermsofthisfinancialassetstipulatethatthecashflowgeneratedonthespecificdateisonlythepaymentofprincipalandinterestbasedontheprincipalamountoutstanding.Suchfinancialassetsaresubsequentlymeasuredatfairvalueafterinitialrecognition.Interest,impairmentlossesorgainsandexchangegainsandlossescalculatedbytheeffectiveinterestmethodareincludedincurrentprofitandloss,whileothergainsorlossesareincludedinothercomprehensiveincome.Whenthefinancialassetisderecognized,theaccumulatedgainsorlossespreviouslyincludedinothercomprehensiveincomearetransferredoutandincludedincurrentprofitandloss.FinancialassetsmeasuredatfairvalueandwhosechangesareincludedincurrentprofitandlossExceptfortheabovefinancialassetsmeasuredatamortizedcostandatfairvaluewithchangesincludedinothercomprehensiveincome,theCompanyclassifiesallotherfinancialassetsasfinancialassetsmeasuredatfairvaluewithchangesincludedincurrentprofitandloss.Uponinitialrecognition,inordertoeliminateorsignificantlyreduceaccountingmismatches,theCompanyirrevocablydesignatessomefinancialassetsthatshouldhavebeenmeasuredatamortizedcostoratfairvalueandwhosechangesareincludedinothercomprehensiveincomeasfinancialassetsmeasuredatfairvalueandwhosechangesareincludedincurrentprofitandloss.Suchfinancialassetsaresubsequentlymeasuredatfairvalueafterinitialrecognition,andtheresultinggainsorlosses(includinginterestanddividendincome)areincludedincurrentprofitandlossunlessthefinancialassetsarepartofthehedgingrelationship.ThebusinessmodelofmanagingfinancialassetsreferstohowtheCompanymanagesfinancialassetstogeneratecashflow.ThebusinessmodeldetermineswhetherthecashflowofthefinancialassetsmanagedbytheCompanycomesfromthecollectionofcontractualcashflow,thesaleoffinancialassetsorboth.TheCompanydeterminesthebusinessmodelformanagingfinancialassetsonthebasisofobjectivefactsandspecificbusinessobjectivesdecidedbykeymanagementpersonneltomanagefinancialassets.TheCompanyevaluatesthecontractualcashflowcharacteristicsoffinancialassetstodeterminewhetherthecontractualcashflowgeneratedbytherelevantfinancialassetsonthespecificdateisonlythepaymentofprincipalandinterestbasedontheprincipalamountoutstanding.Amongthem,theprincipalreferstothefairvalueoffinancialassetsuponinitialrecognition;interestincludes
considerationforthetimevalueofmoney,creditrisksrelatedtotheprincipalamountoutstandinginthespecificperiod,andotherbasiclendingrisks,costsandprofits.Inaddition,theCompanyevaluatesthecontracttermsthatmayleadtochangesinthetimedistributionoramountofcontractualcashflowoffinancialassetstodeterminewhethertheymeettherequirementsoftheabove-mentionedcontractualcashflowcharacteristics.OnlywhentheCompanychangesthebusinessmodeofmanagingfinancialassetswillallaffectedrelatedfinancialassetsbereclassifiedonthefirstdayofthefirstreportingperiodafterbusinessmodelchanges,otherwisefinancialassetscannotbereclassifiedafterinitialrecognition.
(3)ClassificationandmeasurementoffinancialliabilitiesTheCompany'sfinancialliabilitiesareclassifieduponinitialrecognitionas:financialliabilitiesmeasuredatfairvalueandwhosechangesareincludedincurrentprofitandloss,andfinancialliabilitiesmeasuredatamortizedcost.Forfinancialliabilitiesthatarenotclassifiedasmeasuredatfairvalueandwhosechangesareincludedincurrentprofitandloss,relevanttransactioncostsareincludedintheinitialrecognitionamount.FinancialliabilitiesmeasuredatfairvalueandwhosechangesareincludedincurrentprofitandlossFinancialliabilitiesmeasuredatfairvalueandwhosechangesareincludedincurrentprofitandlossincludetransactionalfinancialliabilitiesandfinancialliabilitiesdesignatedasmeasuredatfairvalueuponinitialrecognitionandwhosechangesareincludedincurrentprofitandloss.Subsequentmeasurementshallbecarriedoutaccordingtofairvalueforsuchfinancialliabilities.Gainsorlossesresultingfromchangesinfairvalueanddividendsandinterestexpensesrelatedtosuchfinancialliabilitiesshallbeincludedincurrentprofitandloss.FinancialliabilitiesmeasuredatamortizedcostOtherfinancialliabilitiesaresubsequentlymeasuredatamortizedcostbyusingtheeffectiveinterestmethod.Gainsorlossesresultingfromderecognitionoramortizationareincludedincurrentprofitandloss.DistinctionbetweenfinancialliabilitiesandequityinstrumentsFinancialliabilitiesrefertoliabilitiesthatmeetoneofthefollowingconditions:
①Thecontractualobligationtodelivercashorotherfinancialassetstootherparties.②Thecontractualobligationtoexchangefinancialassetsorfinancialliabilitieswithotherpartiesunderpotentiallyunfavorableconditions.③Non-derivativecontractsthatmustbeorcanbesettledwiththeenterprise'sownequityinstrumentsinthefuture,andtheenterprisewilldeliveravariablenumberofitsownequityinstrumentsaccordingtothecontract.④Derivativecontractsthatmustbeorcanbesettledwiththeenterprise'sownequityinstrumentsinthefuture,exceptderivativescontractsthatexchangeafixedamountofcashorotherfinancialassetswithafixedamountofitsownequityinstruments.Equityinstrumentsrefertocontractsthatcanprovethatanenterprisehastheresidualequityinitsassetsafterdeductingallliabilities.IftheCompanycannotunconditionallyavoidperformingacontractualobligationbydeliveringcashorotherfinancialassets,thecontractualobligationmeetsthedefinitionoffinancialliability.IfafinancialinstrumentmustbeorcanbesettledwiththeCompany'sownequityinstruments,itisnecessarytoconsiderwhethertheCompany'sownequityinstrumentsusedtosettletheinstrumentareusedassubstitutesforcashorotherfinancialassetsortoenabletheholderofthisinstrumenttoenjoytheresidualequityintheassetsafterdeductingallliabilitiesfromtheissuer.Ifitistheformer,thisinstrumentistheCompany'sfinancialliability;ifthelatteristhecase,thisinstrumentistheCompany'sequityinstrument.
(4)DerivativefinancialinstrumentsandembeddedderivativesTheCompany'sderivativefinancialinstrumentsincludeforwardforeignexchangecontractsandexchangeoptioncontracts,etc.Initially,thefairvalueonthedatewhenthederivativetransactioncontractissignedshallbeusedformeasurement,andthefairvalueshallbeusedforsubsequentmeasurement.Derivativefinancialinstrumentswithpositivefairvaluearerecognizedasan
asset,whilethosewithnegativefairvalueareindeedrecognizedasaliability.Anygainsorlossesarisingfromchangesinfairvaluethatdonotconformtotheprovisionsofhedgeaccountingaredirectlyincludedincurrentprofitandloss.Forhybridinstrumentscontainingembeddedderivatives,suchasthemaincontractisafinancialasset,therelevantprovisionsonclassificationoffinancialassetsshallapplytothehybridinstrumentsasawhole.Ifthemaincontractisnotafinancialasset,andthehybridinstrumentisnotmeasuredatfairvalueanditschangesareincludedincurrentprofitandlossforaccountingtreatment,theembeddedderivativeinstrumenthasnocloserelationshipwiththemaincontractintermsofeconomiccharacteristicsandrisks,andhasthesameconditionsastheembeddedderivativeinstrument,andtheseparateexistinginstrumentmeetsthedefinitionofderivativeinstrument,theembeddedderivativeinstrumentshallbeseparatedfromthehybridinstrumentandtreatedasaseparatederivativefinancialinstrument.Ifitisnotpossibletoseparatelymeasureembeddedderivativeinstrumentsatthetimeofacquisitionorthesubsequentbalancesheetdate,thehybridinstrumentsasawholearedesignatedasfinancialassetsorfinancialliabilitiesmeasuredatfairvalueandtheirchangesareincludedincurrentprofitandloss.
(5)FairvalueoffinancialinstrumentsSeeNoteV(12)forthemethodofdeterminingthefairvalueoffinancialassetsandliabilities.
(6)ImpairmentoffinancialassetsTheCompanyconductsimpairmentaccountingtreatmentforthefollowingitemsandconfirmsthelossprovisionbasedontheexpectedcreditlosses:
Financialassetsmeasuredatamortizedcost;Receivablesanddebtinstrumentinvestmentsmeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincome;ContractassetsdefinedintheAccountingStandardsforBusinessEnterprisesNo.14-Revenue;Leasereceivables;Financialguaranteecontracts(exceptthosethataremeasuredatfairvalueandwhosechangesareincludedincurrentprofitandloss,thetransferoffinancialassetsdoesnotmeettheconditionsforderecognitionorcontinuetoinvolveinthetransferredfinancialassets).MeasurementofexpectedcreditlossExpectedcreditlossreferstotheweightedaverageofthecreditlossesoffinancialinstrumentsweightedbytheriskofdefault.CreditlossreferstothedifferencebetweenallcontractualcashflowsdiscountedattheoriginaleffectiveinterestrateandreceivableaccordingtothecontractandallcashflowsexpectedtobecollectedoftheCompany,i.e.thepresentvalueofallcashshortfalls.Consideringthereasonableandreliableinformationaboutpastevents,currentsituationandtheforecastoffutureeconomicsituation,thecompanytakestheriskofdefaultastheweight,calculatestheprobabilityweightedamountofthepresentvalueofthedifferencebetweenthecashflowreceivablefromthecontractandthecashflowexpectedtobereceived,andconfirmstheexpectedcreditloss.TheCompanyseparatelymeasurestheexpectedcreditlossesoffinancialinstrumentsatdifferentstages.Ifthecreditriskoffinancialinstrumentshasnotincreasedsignificantlysincetheinitialrecognition,itisinthefirststage.TheCompanymeasuresthelossreserveaccordingtotheexpectedcreditlossinthenext12months;ifthecreditriskoffinancialinstrumentshasincreasedsignificantlysinceitsinitialrecognitionbutnocreditimpairmenthasoccurred,itisinthesecondstage.TheCompanymeasuresthelossreserveaccordingtotheexpectedcreditlossduringthewholedurationofthisinstrument;ifthefinancialinstrumenthassufferedcreditimpairmentsinceitsinitialrecognition,itisinthethirdstage.TheCompanymeasuresthelossreserveaccordingtotheexpectedcreditlossduringthewholedurationofthisinstrument.Forfinancialinstrumentswithlowcreditriskonthebalancesheetdate,theCompanyassumesthattheircreditriskhasnotincreasedsignificantlysincetheinitialrecognition,andmeasuresthelossreserveaccordingtotheexpectedcreditlossinthenext12months.
Theexpectedcreditlossduringthewholedurationreferstotheexpectedcreditlosscausedbyallpossibledefaulteventsduringthewholeexpecteddurationoffinancialinstruments.Theexpectedcreditlossinthenext12monthsreferstotheexpectedcreditlosscausedbythepossibledefaulteventsoffinancialinstrumentswithin12months(ortheexpecteddurationiftheexpecteddurationoffinancialinstrumentsislessthan12months)afterthebalancesheetdate,whichispartoftheexpectedcreditlossinthewholeduration.Whenmeasuringtheexpectedcreditloss,thelongesttermthattheCompanyneedstoconsideristhelongestcontracttermthattheenterprisefacescreditrisk(includingtheoptiontorenewthecontract).TheCompanycalculatesinterestincomebasedonthebookbalancebeforedeductingimpairmentprovisionsandtheeffectiveinterestrateforfinancialinstrumentsinthefirstandsecondstagesandwithlowcreditrisk.Theinterestincomeshallbecalculatedaccordingtotheirbookbalanceminustheamortizedcostafterimpairmentprovisionandtheeffectiveinterestrateforfinancialinstrumentsinthethirdstage.Forreceivablessuchasnotesreceivable,accountsreceivable,accountsreceivablefinancing,otherreceivables,andcontractassets,ifthecreditriskcharacteristicsofaparticularcustomersignificantlydifferfromthoseofothercustomersintheportfolio,orifthereisasignificantchangeinthecustomer'screditriskcharacteristics,theCompanywillmakereceivableswithdrawalofbaddebtprovisionseparatelyaccrued.Apartfromreceivableswithdrawalofbaddebtprovisionseparatelyaccruedaremade,theCompanyclassifiesreceivablesintoportfoliosbasedoncreditriskcharacteristicsandcalculatestheallowancefordoubtfuldebtsonaportfoliobasis.Notesreceivable,accountsreceivableandcontractassetsTheCompanyalwaysmeasuresitslossreservesatanamountequivalenttotheexpectedcreditlossduringtheentiredurationfornotesreceivable,contractassetsandaccountsreceivable,regardlessofwhetherthereisanysignificantfinancingcomponent.Ifasinglefinancialassetorcontractassetscannotbeusedtoevaluatetheexpectedcreditlossinformationatareasonablecost,theCompanywilldividethenotesreceivable,accountsreceivableandcontractassetsintoportfolioonthebasisofthecreditriskfeatures,andcalculatetheexpectedcreditlossbasedontheportfolio.Thebasisfordeterminingtheportfolioisasfollows:
A.Notesreceivable
Notesreceivableportfolio1:bankacceptancebillswithlowcreditratingNotesreceivableportfolio2:commercialacceptancebillsB.AccountsreceivableAccountsreceivableportfolio1:paymentnotoverdue(withL/C)Accountsreceivableportfolio2:paymentnotoverdue(withcreditinsurance)Accountsreceivableportfolio3:paymentoverdue(withoutcreditinsurance)Accountsreceivableportfolio4:paymentoverdue(withcreditinsurance)Accountsreceivableportfolio5:paymentoverdue(withoutcreditinsurance)Fornotesreceivableandcontractassetsdividedintoportfolios,withreferencetohistoricalcreditlossexperience,combinedwithcurrentconditionsandpredictionsoffutureeconomicconditions,theCompanyhascalculatedexpectedcreditlossesthroughdefaultriskexposureandexpectedcreditlossratefortheentireduration.Foraccountsreceivabledividedintoportfolios,withreferencetohistoricalcreditlossexperience,combinedwithcurrentconditionsandpredictionsoffutureeconomicconditions,theCompanyhaspreparedacomparisontablebetweenthenumberofaging/overduedaysofaccountsreceivableandtheexpectedcreditlossrateovertheentireduration,andhascalculatedtheexpectedcreditloss.Theagingofaccountsreceivableiscalculatedfromthedateofrecognition/thenumberofdaysoverdueiscalculatedfromtheexpirydateofthecreditperiod.OtherreceivablesTheCompanydividesotherreceivablesintoseveralportfoliosbasedonthefeaturesofcreditrisk,andcalculatestheexpectedcreditlossesonthebasisofthecombination.Thebasisfordeterminingtheportfolioisasfollows:
Otherreceivablesportfolio1:Receivablesfromrelatedpartieswithinthescopeofconsolidation
Otherreceivablesportfolio2:TaxrefundreceivableOtherreceivablesportfolio3:DepositreceivableandsecuritydepositOtherreceivablesportfolio4:otherreceivablesForotherreceivablesthataredividedintoportfolios,theCompanycalculatestheexpectedcreditlosswiththedefaultriskexposureandtheexpectedcreditlossratewithinthenext12monthsortheentireduration.Forotherreceivablesclassifiedintoportfoliosbyaging,theagingiscalculatedfromthedateofrecognition.Creditors'investmentandothercreditors'investmentForcreditors'investmentandothercreditors'investment,theCompanycalculatestheexpectedcreditbasedonthenatureoftheinvestment,aswellaskindsoftypesofcounterpartiesandriskexposures,thedefaultriskexposureandtheexpectedcreditlossratewithinthenext12monthsortheentiredurationloss.AssessmentonsignificantincreaseofcreditriskInordertodeterminetherelativechangesinthedefaultriskoffinancialinstrumentsduringtheirexpectedlifeandtoassesswhetherthecreditriskoffinancialinstrumentshasincreasedsignificantlysinceinitialrecognition,theCompanycomparesthedefaultriskoffinancialinstrumentsonthebalancesheetdatewiththedefaultriskontheinitialrecognitiondate.Whendeterminingwhetherthecreditriskhasrisengreatlysincetheinitialrecognition,theCompanyconsidersreasonableandreliableinformation(forward-lookinginformationinclusive)thatcanbeobtainedwithoutunnecessaryextracostsorefforts.TheinformationtheCompanyconsidersshallinclude:
Thedebtorfailstopaytheprincipalandinterestaccordingtothecontractexpirationdate;Theexternalorinternalcreditratings(ifany)offinancialinstruments,whichhaveoccurredorareexpected,deterioratesignificantly;Thedebtor’soperatingresults,whichhaveoccurredorareexpected,deterioratesignificantly;Existingorexpectedchangesintechnology,market,economyorlegalenvironmentwillleadtoagreatadverseeffectonthedebtor'sabilitytorepaytheCompany.Basedonthenatureoffinancialinstruments,theCompanyassesseswhetherthereisgreatriskincreditriskonthebasisofindividualfinancialinstrumentsorfinancialinstrumentportfolios.Duringassessmentbasedonfinancialinstrumentportfolios,theCompanycandividefinancialinstrumentsonthebasisofcommoncreditriskcharacteristics,suchasoverdueinformationandcreditriskratings.Incasethattheperiodoverdueexceeds30days,theCompanydeterminesthatthereisasignificantincreaseinthecreditriskoffinancialinstruments.FinancialassetswithdepreciationofcreditTheCompanyassesses,onthebalancesheetdate,whetherthereisanycreditimpairmenttofinancialassetsmeasuredatamortizedcostandcreditors'investmentmeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincome.Incaseofoneormoreeventsthatadverselyaffecttheexpectedfuturecashflowofafinancialassetoccur,thefinancialassetwillbecomefinancialassetswithdepreciationofcredit.Theobservableinformationbelowcanbetreatedasevidenceforcreditimpairmenttofinancialassets:
Theissuerordebtoriscaughtinaseriousfinancialdifficulty;Thedebtorbreachestheagreementofcontract,suchasdefaultoroverduepaymentofinterestorprincipal,orotherdefault;Duetoeconomicorcontractualconsiderationsrelatedtothedebtor'sfinancialdifficulties,theCompanygivesconcessionstothedebtor;andtheconcessionswillnotbemadeunderanyothercircumstances;Thereliesagreatprobabilityofbankruptcyorotherfinancialrestructuringforthedebtor;Theissuerordebtoriscaughtinfinancialdifficulties,whichleadstothedisappearanceoftheactivemarketofthefinancialasset;PresentationofexpectedcreditlossprovisionTheCompanyremeasuresexpectedcreditlossesoneachbalancesheetdatetoreflectthechangesinthecreditriskoffinancialinstrumentssinceinitialrecognition;theincreaseorreversalamountofthelossreserveformedtherefromshallbeincludedinthe
currentprofitandlossasimpairmentlossesorgains.Forfinancialassetsmeasuredatamortizedcost,thelossallowanceoffsetsthecarryingamountofthefinancialassetlistedinthebalancesheet;forcreditors’investmentthataremeasuredatfairvalueanditschangesareincludedinothercomprehensiveincome,theCompanyrecognizesitslossreserveinothercomprehensiveincomeandwillnotoffsetthecarryingamountofthefinancialasset.Write-offsIncasethattheCompanyfailstoreasonablyexpectthecontractcashflowofthefinancialassettoberecoveredinafullorpartialscale,thebookbalanceofthefinancialassetwillbewrittenoffdirectly.Suchwrite-downsmayconstitutethederecognitionforrelatedfinancialassets.ThissituationoccursfrequentlywhentheCompanydeterminesthatthedebtordoesnothaveanyassetsoranysourceofincometogeneratesufficientcashflowtorepaytheamountthatwillbewrittenoff.However,inaccordancewiththeproceduresforrecoveringduepaymentsoftheCompany,thewritten-offfinancialassetsmaystillbeaffectedbytheexecutionactivities.Incasethatthefinancialassetwrittenoffisrecoveredlater,itshallbeincludedinthecurrentprofitandlossasthereversaloftheimpairmentloss.
(7)TransferoffinancialassetsThetransferoffinancialassetsreferstothetransferordeliveryoffinancialassetstoanotherparty(transferee)otherthantheissuerofthefinancialasset.IftheCompanyhastransferredalmostalltherisksandrewardsoftheownershipoffinancialassetstothetransferee,derecognizethefinancialasset;ifitretainsalmostalltherisksandrewardsoftheownershipoffinancialassets,thefinancialassetwillnotbederecognized.IftheCompanyhasneithertransferrednorretainedalmostalltherisksandrewardsoftheownershipoffinancialassets,itshallbedealtwithinthefollowingsituations:ifthecontrolofthefinancialassetisabandoned,theconfirmationofthefinancialassetshallbeterminatedandthegeneratedassetsandliabilitiesshallbeconfirmed;Ifthefinancialassetsarecontrolled,therelevantfinancialassetsshallberecognizedaccordingtotheextentoftheircontinuedinvolvementinthetransferredfinancialassets,andtherelevantliabilitiesshallberecognizedaccordingly.
(8)OffsettingfinancialassetsandfinancialliabilitiesWhentheCompanyhasalegalrightthatiscurrentlyenforceabletosetofftherecognizedfinancialassetsandfinancialliabilities,andintendseithertosettleonanetbasis,ortorealizethefinancialassetandsettlethefinancialliabilitysimultaneously,afinancialassetandafinancialliabilityshallbeoffsetandthenetamountispresentedinthebalancesheet.Exceptfortheabovecircumstances,financialassetsandfinancialliabilitiesshallbepresentedseparatelyinthebalancesheetandshallnotbeoffset.
12.MeasurementofFairValue
Fairvaluereferstothepricethatmarketparticipantscanreceivefromsalesofaassetorshallpayfortransferofaliabilityintheorderlytransactionthatoccursonthemeasurementdate.TheCompanymeasuresrelatedassetsorliabilitiesatfairvalue,assumingthattheorderlytransactionofsellingassetsortransferringliabilitiesisconductedinthemainmarketofrelatedassetsorliabilities;ifthereisnomainmarket,theCompanyassumesthatthetransactionisconductedinthemostbeneficialmarket.Themainmarket(orthemostfavorablemarket)isthetradingmarketthattheCompanycanenteronthemeasurementdate.TheCompanyusestheassumptionsusedbymarketparticipantstomaximizetheireconomicbenefitswhenpricingtheassetorliability.Forfinancialassetsorfinancialliabilitieswithactivemarkets,theCompanyusesthequotationinactivemarketstodetermineitsfairvalue.Ifthereisnoactivemarketforfinancialinstruments,theCompanyusesvaluationtechniquestodetermineitsfairvalue.Whenmeasuringnon-financialassetsatfairvalue,theabilityofmarketparticipantstobestusetheassetforgeneratingeconomicbenefits,ortheabilitytoselltheassettoothermarketparticipantsthatcanbestusetheassettogenerateeconomicbenefitsshallbeconsidered.
TheCompanyadoptsvaluationtechniquesthatareapplicableinthecurrentsituationandhavesufficientavailabledataandotherinformationtosupportit.Priorityisgiventousingrelevantobservableinputvalues.Onlywhenobservableinputvalues??areunavailableorarenotfeasibletoobtain,theunobservableinputvaluescanbeused.Forassetsandliabilitiesmeasuredordisclosedatfairvalueinthefinancialstatements,thefairvaluehierarchytowhichtheybelongisdeterminedbasedonthelowestlevelinputvaluethatisimportanttothefairvaluemeasurementasawhole:thefirstlevelinputvalueistheunadjustedquotationofthesameassetsorliabilitiesabletobeobtainedinanactivemarketonthemeasurementdate;thesecondlevelinputvalueisthedirectlyorindirectlyobservableinputvalueoftherelevantassetorliabilityexceptthefirstlevelinputvalue;thethirdlevelinputvalueisunobservableinputvalueofrelatedassetsorliabilities.Oneachbalancesheetdate,theCompanyreassessedtheassetsandliabilitiescontinuouslymeasuredatfairvalueconfirmedinthefinancialstatementstodeterminewhetherthereisatransitionamonglevelsoffairvaluemeasurement.
13.Inventory
(1)ClassificationInventoriesmainlyincluderawmaterials,work-in-progress,stockproducts,productsprocessedonentrustmentandetc.
(2)ValuationmethodofinventoriesacquiringandissuingInventoriesshallbemeasuredatactualcostwhenacquired,andthecostoftheinventoriesincludingtheprocurementcost,processingcostandothercosts.Greyyarn,dyedyarn,andplusmaterialshallbemeasuredatfirst-infirst-outmethodwhenacquiredanddelivered;otherinventoriesshallbemeasuredaspertheweightedaveragemethod
(3)BasisfordeterminingnetrealizablevalueofinventoriesandprovisionmethodsfordeclineinvalueofinventoriesOnthebalancesheetdate,theinventoriesshallbemeasuredatthelowerofcostandnetrealizablevalue.Whentheirnetrealizablevaluefallsbelowcost,anallowanceforinventoryimpairmentisprovided.Netrealizablevalueistheestimatedsellingpriceintheordinarycourseofbusinesslesstheestimatedcostsofcompletion,theestimatedcostsnecessarytomakethesaleandrelevanttaxes.Netrealizablevalueisdeterminedonthebasisofclearevidenceobtained,andtakesintoconsiderationthepurposeofholdinginventoriesandeffectofpostbalancesheetevents.TheCompanygenerallyprovidesforinventorydepreciationonaper-itembasis.Forinventoriesthatarenumerousinquantityandlowinunitprice,anallowanceforinventoryimpairmentisprovidedbasedoninventorycategories.Onthebalancesheetdate,ifthefactorsaffectingthevalueofinventoriespreviouslywrittendownhavedisappeared,theprovisionforinventorywrite-downsisreversedtotheextentoftheoriginalamountprovided.
(4)Theperpetualinventorysystemismaintainedforstocksystem.
(5)Amortizationmethodofthelow-valueconsumptiongoodsandpackingarticlesFortheLow-valueconsumptiongoodsandthepackingarticlesshouldbeamortizedbyone-offamortizationmethodwhenconsuming.
14.Long-termEquityInvestmentsLong-termequityinvestmentsincludeequityinvestmentsinsubsidiaries,jointventuresandassociatedenterprises.TheinvesteethattheCompanyisabletoexertsignificantinfluenceisanassociatedenterpriseoftheCompany.
(1)DeterminationofinitialinvestmentcostLong-termequityinvestmentthatformsabusinesscombination:Long-termequityinvestmentobtainedbybusinesscombinationunderthesamecontrol,onthemergerdate,basedonthebookvalueshareofthemergedparty’sowners’equityinthefinalcontroller’sconsolidatedfinancialstatementsasinvestmentcost;Thelong-termequityinvestmentacquiredbyabusinesscombinationshallbetheinvestmentcostofthelong-termequityinvestmentaccordingtothecostofthecombination.
Forlong-termequityinvestmentsobtainedbyothermeans:thelong-termequityinvestmentobtainedbypayingcashshallbetheinitialinvestmentcostaccordingtotheactualpurchaseprice;thelong-termequityinvestmentobtainedbyissuingequitysecuritiesshallbetheinitialinvestmentcostofthefairvalueoftheequitysecuritiesissued.
(2)SubsequentmeasurementandprofitandlossconfirmationmethodInvestmentinsubsidiariesisaccountedforusingthecostmethodunlesstheinvestmentmeetstheconditionsforholdingforsale;investmentinassociatesandjointventuresisaccountedforusingtheequitymethod.Forlong-termequityinvestmentsthatareaccountedforusingthecostmethod,inadditiontothecashdividendsorprofitsthathavebeendeclaredbutnotyetincludedintheactualpaymentorconsiderationincludedintheinvestment,thecashdividendsorprofitsdeclaredbytheinvestedentityarerecognizedasinvestmentincomeandrecordedintothecurrentprofitandloss.Forlong-termequityinvestmentsaccountedforusingtheequitymethod,wheretheinitialinvestmentcostisgreaterthanthefairvalueshareoftheinvestee’sidentifiablenetassetsatthetimeofinvestment,theinvestmentcostofthelong-termequityinvestmentisnotadjusted;whentheinitialinvestmentcostislessthantheinvestment,theinvestee’sIfthefairvalueshareofnetassetsisidentified,thebookvalueofthelong-termequityinvestmentisadjusted,andthedifferenceisincludedinthecurrentprofitandlossoftheinvestment.Whenusingtheequitymethodofaccounting,theinvestmentincomeandothercomprehensiveincomearerecognizedseparatelyaccordingtotheshareofnetprofitandlossandothercomprehensiveincomerealizedbytheinvestedunitthatshouldbeenjoyedorshared,andthebookvalueofthelong-termequityinvestmentisadjustedatthesametime;Thedistributionofprofitsorcashdividendsshouldbecalculatedtoreducethebookvalueoflong-termequityinvestment;theinvestee'sotherchangesinowner'sequityotherthannetprofitandloss,othercomprehensiveincomeandprofitdistribution,adjustthebookvalueoflong-termequityinvestmentandIncludedincapitalreserves(othercapitalreserves).Whenconfirmingtheshareoftheinvestee’snetprofitorloss,basedonthefairvalueoftheinvestee’sidentifiableassetsatthetimeofinvestment,andinaccordancewiththeCompany’saccountingpoliciesandaccountingperiod,thenetprofitoftheinvesteeConfirmaftermakingadjustments.Iftheadditionalinvestmentandotherreasonscanexertsignificantinfluenceontheinvesteeorexercisejointcontrolbutdonotconstitutecontrol,ontheconversiondate,thesumofthefairvalueoftheoriginalequityplustheadditionalinvestmentcostwillbeusedastheinitialaccountingfortheequitymethodcostofinvestment.Iftheoriginalequityisclassifiedasnon-tradingequityinstrumentinvestmentmeasuredatfairvaluewhosechangesareincludedinothercomprehensiveincome,therelevantoriginalandaccumulativechangesinfairvalueincludedinothercomprehensiveincomeshallbetransferredtoretainedearningswhenaccountingbyequitymethod.Ifthejointcontrolorsignificantinfluenceontheinvestedunitislostduetothedisposalofpartoftheequityinvestment,etc.,theremainingequityafterthedisposalshallbechangedtotheAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstrumentsisperformed,andthedifferencebetweenfairvalueandbookvalueisincludedinthecurrentprofitandloss.Othercomprehensiveincomerecognizedbytheoriginalequityinvestmentduetotheequitymethodofaccountingshallbeaccountedforonthesamebasisastheinvestee’sdirectdisposalofrelatedassetsorliabilitieswhentheequitymethodofaccountingisterminated;changesinotherowners’equityrelatedtotheoriginalequityinvestmentTransfertocurrentprofitandloss.Ifthecontroloftheinvestedunitislostduetothedisposalofpartoftheequityinvestment,iftheremainingequityafterthedisposalcanexercisejointcontrolorexertsignificantinfluenceontheinvestedunit,theequitymethodisusedforaccountingandtheremainingequityistreatedasWhenacquiring,theequitymethodisadoptedforadjustment;iftheremainingequityafterdisposalcannotexercisejointcontrolorexertsignificantinfluenceontheinvestee,theaccountingshallbechangedaccordingtotherelevantprovisionsof"AccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstrumentsThedifferencebetweenthefairvalueandthebookvalueonthedateoflossofcontrolisincludedinthecurrentprofitandloss.Iftheshareholdingratioofthecompanydecreasesduetothecapitalincreaseofotherinvestors,therebylosingcontrolbutbeingabletoexercisejointcontrolorexertsignificantinfluenceontheinvestee,thenewshareholdingratioshallbeusedtoconfirmthat
thecompanyshouldenjoythecapitalincreaseoftheinvestee.Thedifferencebetweentheincreaseinshareandtheincreaseintheshareofnetassetsandtheoriginalbookvalueofthelong-termequityinvestmentcorrespondingtothedecreaseintheproportionoftheshareholdingthatshouldbecarriedforwardareincludedinthecurrentprofitandloss;Thatis,adjustmentsaremadeusingtheequitymethodofaccounting.TheunrealizedinternaltransactiongainsandlossesthatoccurbetweentheCompanyandassociatesandjointventuresarecalculatedaccordingtotheshareholdingratioandareattributedtotheCompany,andtheinvestmentgainsandlossesarerecognizedonthebasisofoffset.However,theunrealizedinternaltransactionlossesincurredbytheCompanyandtheinvesteearetheimpairmentlossesofthetransferredassetsandshallnotbeoffset.
(3)DeterminethebasisforjointcontrolandsignificantinfluenceontheinvestedunitJointcontrolreferstothecommoncontrolofanarrangementinaccordancewiththerelevantagreement,andrelatedactivitiesofthearrangementmustbeagreeduponbythepartiessharingcontrolrightsbeforetheycanmakedecisions.Whenjudgingwhetherthereisjointcontrol,firstdeterminewhetherallparticipantsoracombinationofparticipantscollectivelycontrolthearrangement,andsecondlydeterminewhetherthedecision-makingrelatedactivitiesofthearrangementmustbeunanimouslyagreedbytheparticipantswhocollectivelycontrolthearrangement.IfallparticipantsoraCompanyofparticipantsmustactinconcerttodeterminetherelevantactivitiesofanarrangement,itisconsideredthatallparticipantsoraCompanyofparticipantscollectivelycontrolthearrangement;ifthereisacombinationoftwoormoreparticipantscancollectivelyControllinganarrangementdoesnotconstitutejointcontrol.Whenjudgingwhetherthereisjointcontrol,theprotectiverightsenjoyedarenotconsidered.Significantinfluencemeansthattheinvestorhastherighttoparticipateinthedecision-makingofthefinancialandoperatingpoliciesoftheinvestedunit,butcannotcontrolorjointlycontroltheformulationofthesepolicieswithotherparties.Whendeterminingwhetheritcanexertsignificantinfluenceontheinvestedunit,considerthattheinvestordirectlyorindirectlyholdsthevotingsharesoftheinvestedunitandthecurrentexecutablepotentialvotingrightsheldbytheinvestorandotherpartiesareassumedtobeconvertedintotheinvestedunitAftertheequityofthecompany,theimpactincludesthecurrentconvertiblewarrants,stockoptionsandconvertiblecorporatebondsissuedbytheinvestee.WhentheCompanydirectlyorindirectlyownsmorethan20%(including20%)butlessthan50%ofthevotingsharesoftheinvestedunit,itisgenerallyconsideredtohaveasignificantimpactontheinvestedunit,unlessthereisclearevidencethatsuchcircumstancescannotparticipateintheproductionandoperationdecisionsoftheinvestedunit,anddoesnothaveasignificantimpact;whentheCompanyownslessthan20%(excluding)votingrightsoftheinvestedunit,itgenerallydoesnotconsiderittohaveasignificantimpactontheinvestedunitunlessthereisclearevidencethatUnderthesecircumstances,itcanparticipateintheproductionandoperationdecisionsoftheinvestedunitandhaveasignificantimpact.
(4)ImpairmenttestmethodandimpairmentprovisionmethodFortheinvestmentsinsubsidiaries,associatesandjointventures,themethodofaccruingassetimpairmentisshownintheNoteV-22.
15.InvestmentPropertyMeasurementmodelofinvestmentrealestateCostingmethodmeasurementDepreciationoramortizationmethodTheinvestmentrealestatereferstotherealestategainingtherentorcapitalappreciationorboth.Itincludesrentedlanduseright,holdinglanduserighttobetransferredaftertheappreciationandrentedbuilding,etc.Theinvestmentrealestateismeasuredinitiallyaccordingtothecostandwithdrawndepreciationoramortizationasregulationsoffixedassetsorintangibleassets.TheCompanyadoptsthecostmodetoconductthesubsequentmeasurementontheinvestmentrealestate,seetheNoteV-22forthemethodofwithdrawingassetimpairmentprovision.Thedifferencebetweenthedisposalincomeofinvestmentrealestatesales,transfer,scrapordamageafterdeductingitsbook
valueandrelatedtaxesisincludedinthecurrentprofitandloss.
16.FixedAssets
(1)ConditionsforRecognitionTheterm“fixedassets”referstothetangibleassetsthatsimultaneouslypossessthefeaturesasfollows:(a)theyareheldforthesakeofproducingcommodities,renderinglaborservice,rentingorbusinessmanagement;and(b)theirusefullifeisinexcessofonefiscalyear.ThefixedassetsareonlyrecognizedwhentherelevanteconomicbenefitsprobablyflowintheCompanyanditscostcouldbereliablemeasured.ThefixedassetsoftheCompanyareinitiallymeasuredattheactualcostatthetimeofacquisition.ThesubsequentexpendituresrelatedtothefixedassetsshallbeincludedinthecostofthefixedassetswhentheeconomicbenefitsrelatedtothefixedassetsarelikelytoflowintotheCompanyandthecostscanbemeasuredreliably.Thedailyrepairexpensesoffixedassetsthatdonotmeettheconditionsofcapitalizedsubsequentexpendituresoffixedassetsshallbeincludedinthecurrentprofitandlossorthecostofrelevantassetsaccordingtothebeneficiarieswhenincurred.Thebookvalueofthereplacedpartshallbeterminated.
(2)DepreciationMethods
| Categoryoffixedassets | Method | Usefullife | Salvagevalue(%) | Annualdeprecation(%) |
| Housingandbuilding | Averagemethodofusefullife | 5-30 | 0-10 | 20.00-3.00 |
| Machineryequipments | Averagemethodofusefullife | 10-18 | 0-10 | 10.00-5.00 |
| Transportationvehicle | Averagemethodofusefullife | 5 | 0-10 | 20.00-18.00 |
| Electronicequipmentsandothers | Averagemethodofusefullife | 5 | 0-10 | 20.00-18.00 |
(3)RecognitionBasis,PricingandDepreciationMethodofFixedAssetunderFinanceLease
SeetheNoteV-22fordetails.
(4)Attheendofeachyear,reviewiscarriedoutbytheCompanyfortheservicelife,estimatednetresidualvalueanddepreciationmethodoffixedassets.Ifthereisanydifferencebetweentheexpectedservicelifeandtheoriginalestimatedservicelife,theservicelifeoffixedassetswillbeadjusted;ifthereisanydifferencebetweentheexpectednetresidualvalueandtheoriginalestimatednetresidualvalue,theexpectednetresidualvaluewillbeadjusted
(5)DisposalofFixedAssets
Afixedassetshallbederecognizedwhenitisdisposedoforitisexpectedthatnoeconomicbenefitcanbegeneratedbyusingordisposingofit.Theamountofthedisposalincomeofsales,transfer,scrapordamageofthefixedassetafterdeductingitsbookvalueandrelatedtaxesisincludedinthecurrentprofitandloss.
17.ConstructioninProgress
Constructioninprocessismeasuredatactualcost.Actualcostcomprisesconstructioncosts,borrowingcoststhatareeligibleforcapitalizationbeforethefixedassetsbeingreadyfortheirintendedusandotherrelevantcosts.Constructioninprocessistransferredtofixedassetswhentheassetsarereadyfortheirintendeduse.SeethedetailsoftheimpairmentprovisionwithdrawalmethodoftheconstructioninprogresstoNotesV-22.
18.EngineeringMaterialsEngineeringmaterialsoftheCompanyrefertovariousmaterialspreparedforprojectsunderconstruction,includingengineeringmaterials,equipmentnotyetinstalled,toolsandinstrumentspreparedforproduction,etc.Thepurchasedengineeringmaterialswillbemeasuredaccordingtothecost.Thereceivedengineeringmaterialswillbetransferredtotheprojectunderconstruction,andtheremainingengineeringmaterialsafterthecompletionoftheprojectwillbestoredasinventory.PleaserefertoNoteV(22)forthemethodofprovisionforimpairmentofassetsforengineeringmaterials.Inthebalancesheet,theendingbalanceofengineeringmaterialsislistedinthe"projectunderconstruction"item.
19.BorrowingCosts
(1)ConfirmationprincipleofCapitalizedBorrowingExpenseTheborrowingexpensesincurredbytheCompany,ifcandirectlybelongtoacquisition,constructionorproductionofassetsmeetingcapitalizationconditions,arecapitalizedandincludedinrelevantassetcost;otherborrowingexpensesareconfirmedasexpenseaccordingtoitsamountatthetimeofoccurrenceandincludedinthecurrentprofitsandlosses.Iftheborrowingexpensesmeetthefollowingconditions,capitalizationstarts:
①Assetsexpenditurehasoccurred,andassetexpenditureincludestheexpenditureoccurringintheformofpaymentincash,transferringnoncashassetorassuminginterestbearingdebtforacquiring,constructingorproducingtheassetsmeetingcapitalizationconditions;
②Borrowingexpenseshaveoccurred;
③Theacquisition,constructionorproductionactivitiesrequiredformakingassetsusableorsaleableasintendedhavestarted.
(2)CapitalizationperiodofborrowingexpensesWhentheCompanyacquires,constructsorproducesassets,whichmeetcapitalizationconditionsandreachtheintendedusableorsaleablestatus,theborrowingexpensesstopcapitalization.Theborrowingexpensesthatoccuraftertheassetsmeetingcapitalizationconditionsreachtheintendedusableorsaleablestatusareconfirmedasexpensesaccordingtoitsamountatthetimeofoccurrenceandareincludedinthecurrentprofitsandlosses.Iftheassetsmeetingcapitalconditionsgenerateimproperinterruptioninthecourseofacquisition,constructionorproduction,andtheinterruptiontimecontinuouslyexceedsthreemonths,capitalizationofborrowingexpensessuspends;theborrowingexpensesinthenormalinterruptionperiodarecontinuallycapitalized.
(3)CapitalizationrateofborrowingexpensesandcalculationmethodofcapitalizedamountTheinterestexpensesofspecialborrowingactuallyoccurringinthecurrentperiod,minustheinterestincomeoftheunusedborrowed
capitalobtainedfromdepositinginbankorthegainontemporaryinvestment,arecapitalized;forcommonborrowing,theweightedaverageofassetexpenditureofthepartthatthecumulativeassetexpenditureexceedsspecialborrowingismultipliedbythecapitalizationrateoftheoccupiedcommonborrowingtodeterminecapitalizationamount.Capitalizationrateiscalculatedanddeterminedaccordingtotheweightedaveragerateofcommonborrowing.Intheperiodofcapitalization,theexchangedifferenceofspecialborrowinginforeigncurrencyisfullycapitalized;theexchangedifferenceofspecialborrowinginforeigncurrencyisincludedinthecurrentprofitsandlosses.
20.IntangibleAssetsTheintangibleassetsoftheCompanyincludelanduseright,patentright,etc.Intangibleassetsareinitiallymeasuredatcost,andtheirservicelifeisanalyzedanddeterminedwhenintangibleassetsareacquired.Iftheservicelifeofintangibleassetsislimited,theintangibleassetsshallbeamortizedbythemethodthatcanreflecttheexpectedrealizationmethodoftheeconomicbenefitsrelatedtotheassetswithintheexpectedservicelifesincetheyareavailableforuse.Thestraight-linemethodshallbeusedforamortizationifnoexpectedrealizationmethodcanbedeterminedreliably.Intangibleassetswithuncertainservicelifeshallnotbeamortized.Theamortizationmethodofintangibleassetswithlimitedservicelifeisasfollows:
| Category | Servicelife | Amortizationmethod | Note |
| Landuseright | Stipulatedinthelandcertificate | Methodofline | |
| Patentuseright | 10years | Methodofline | |
| Softwareuseright | 1-3years | Methodofline |
Attheendofeachyear,theCompanyreviewstheservicelifeandamortizationmethodofintangibleassetswithlimitedservicelife.Iftheestimateisdifferentfromthepreviousone,theoriginalestimateshallbeadjustedandtreatedasperaccountingestimatechange.Ifitisestimatedthatanintangibleassetcannolongerbringfutureeconomicbenefitstotheenterpriseonthedateofbalancesheet,thiscarryingamountoftheintangibleassetshallbetransferredintothecurrentprofitandloss.ThemethodofwithdrawingimpairmentonintangibleassetswasstatedintheNoteV-22.
21.ResearchandDevelopmentExpendituresTheCompany'sR&DexpenditurerelatesdirectlytoR&Dactivities,includingR&Dpersonnel'semployeeremuneration,directinputexpenses,depreciationexpensesandlong-termamortizationexpenses,designexpenses,equipmentcommissioningexpenses,amortizationexpensesofintangibleassets,commissionedexternalresearchanddevelopmentexpenses,andotherexpenses,etc.ThewagesofR&DpersonnelareallocatedtoR&Dexpenditurebasedonprojecthours.R&Dactivitiesthatshareequipment,productionlines,orsiteswithotherproductionandoperationalactivitiesareallocatedtoR&Dexpenditurebasedontheproportionofhoursorareaused.Theexpendituresforinternalresearchanddevelopmentprojectsofanenterpriseshallbeclassifiedintoresearchexpendituresanddevelopmentexpenditures.Theresearchexpendituresshallberecordedintotheprofitorlossforthecurrentperiod.Thedevelopmentexpenditurescanbecapitalizedonlywhentheysatisfythefollowingconditionssimultaneously:①Itisfeasibletechnicallytofinishintangibleassetsforuseorsale;②Itisintendedtofinishanduseorselltheintangibleassets;③Theusefulnessofmethodsforintangibleassetstogenerateeconomicbenefitsshallbeproved,includingbeingabletoprovethatthereisapotentialmarketfortheproductsmanufacturedbyapplyingtheintangibleassetsorthereisapotentialmarketfortheintangibleassetsitselfortheintangibleassetswillbeusedinternally;④Itisabletofinishthedevelopmentoftheintangibleassets,
andabletouseorselltheintangibleassets,withthesupportofsufficienttechnologies,financialresourcesandotherresources;⑤Thedevelopmentexpendituresoftheintangibleassetscanbereliablymeasured.Thedevelopmentexpendituresshallberecordedintoprofitorlossforthecurrentperiodwhentheydon’tsatisfythefollowingconditions.TheresearchanddevelopmentprojectoftheCompanywillenterthedevelopmentstageaftermeetingtheaboveconditionsandtheprojectisapprovedandinitiatedthroughtechnicalfeasibilityandeconomicfeasibilitystudy.Thecapitalizedexpenditureinthedevelopmentstageislistedasexpenditurefordevelopmentonthebalancesheet,anditwillbetransferredtointangibleassetsfromthedatewhentheprojectreachestheintendedpurpose.
22.ImpairmentofLong-termAssets
Forlongtermequityinvestmentinsubsidiaries,associatedenterprisesandjointventures,investmentrealestatewhichfollow-upmeasurementiscarriedoutbycostpattern,fixedassets,constructioninprogress,right-of-useassets,intangibleassets,businessreputation,etc.(excludinginventory,investmentpropertymeasuredatfairvaluepattern,deferredincometaxassets,financialassets),theimpairmentofassetsshallbedeterminedaccordingtothefollowingmethods:
Onthedateofthebalancesheet,determinationshallbemadetoseewhetherthereisanysignofpossibleimpairmentofassets.Ifthereis,theCompanywillestimateitsrecoverableamountandconductimpairmenttest.Forgoodwill,intangibleassetswithuncertainservicelifeandintangibleassetsthathavenotreachedtheserviceablestateduetobusinessmerger,impairmenttestshallbecarriedouteveryyearregardlessofwhetherthereisanysignofimpairment.Therecoverableamountisdeterminedaccordingtothenetamountofthefairvalueoftheassetminusthedisposalexpensesandthepresentvalueoftheexpectedfuturecashflowoftheasset,thehigheramountshallbeprevail.TheCompanyestimatestherecoverableamountonthebasisofasingleasset.Ifitisdifficulttoestimatetherecoverableamountofasingleasset,therecoverableamountoftheassetgroupshallbedeterminedbasedontheassetgrouptowhichtheassetbelongs.Theassetgroupisdeterminedonthebasisofwhetherthemaincashinflowgeneratedbytheassetgroupisindependentofthecashinflowofotherassetsorassetgroups.Whentherecoverableamountofanassetorassetgroupislowerthanitscarryingamount,thegroupwillwritedownitscarryingamounttotherecoverableamount,andthewrittendownamountwillbeincludedinthecurrentprofitandloss,andthecorrespondingassetimpairmentreservewillbeaccrued.Regardingtheimpairmenttestofbusinessreputation,thecarryingamountofbusinessreputationformedbybusinessmergershallbeapportionedtotherelevantassetgroupinareasonablewayfromthedateofpurchase.Ifitisdifficulttoapportiontotherelevantassetgroup,itshallbeapportionedtotherelevantcombinationofassetgroup.Therelevantassetgrouporcombinationofassetgroupsistheonethatcanbenefitfromthesynergyeffectofbusinessmerger,andistheonesmallerthanthereportablesegmentdeterminedbytheCompany.Intheimpairmenttest,ifthereisanysignofimpairmentintheassetgrouporcombinationofassetgroupsrelatedtobusinessreputation,first,impairmenttestshallbecarriedoutontheassetgrouporcombinationofassetgroupsnotcontainingbusinessreputation,tocalculatetherecoverableamountandrecognizethecorrespondingimpairmentloss.Thenimpairmenttestshallbecarriedoutontheassetgrouporcombinationofassetgroupcontainingbusinessreputationtocomparethecarryingamountwiththerecoverableamount.Iftherecoverableamountislowerthanthecarryingamount,theimpairmentlossofbusinessreputationshallberecognized.Oncetheimpairmentlossofassetsisrecognized,itwillnotbereversedinthefutureaccountingperiod.
23.Long-termDeferredExpenses
Thelong-termexpensestobeamortizedincurredbytheCompanyarevaluedattheactualcostandamortizedaveragelyaccordingtotheexpectedbenefitperiod.Forlong-termexpensestobeamortized,theamortizedvaluethatcannotbenefitthefutureaccountingperiodshallbeincludedinthecurrentprofitandloss.
24.Payroll
(1)ScopeofEmployeeRemunerationPayrollreferstothevariousformsofremunerationorcompensationgivenbyanenterpriseforservicesprovidedbyemployeesorfortheterminationofemploymentrelations.Payrollmainlyincludesshort-termsalary,welfareafterdeparture,demissionwelfare,andotherlong-termstaffwelfare.Benefitsprovidedtoemployees'spouses,children,dependents,survivorsofdeceasedemployees,andotherbeneficiariesalsobelongtothepayroll.Basedonliquidity,payrollispresentedinthebalancesheetundertheitems"payrollpayable"and"long-termpayrollpayable".
(2)AccountingTreatmentofShort-termCompensationDuringtheaccountingperiodinwhichemployeesprovideservices,theCompanyrecognizestheactualemployeewages,bonuses,socialinsurancepremiumssuchasmedicalinsurancepremiums,industrialinjuryinsurancepremiums,andmaternityinsurancepremiumsandhousingprovidentfundspaidtoemployeesaccordingtotheprescribedstandardsandproportionsasliabilitiesandincludedtheminthecurrentprofitandlossorrelatedassetcosts.
(3)AccountingTreatmentoftheWelfareafterDeparture
Thepost-employmentbenefitplanincludesadefinedcontributionplanandadefinedbenefitplan.Amongthem,thedefinedcontributionplanreferstothepost-employmentbenefitplanthattheenterprisenolongerassumesfurtherpaymentobligationsafterthefixedfundhaspaidafixedfee;thedefinedbenefitplanreferstothepost-employmentbenefitplanotherthantheestablishedcontributionplan.SetwithdrawalplanThesetcontributionplanincludesbasicpensioninsuranceandunemploymentinsurance.Duringtheaccountingperiodinwhichemployeesprovideservices,theamountofdepositpayablecalculatedaccordingtothesetwithdrawalplanisrecognizedasaliabilityandincludedinthecurrentprofitandlossorrelatedassetcosts.
(4)AccountingTreatmentoftheDemissionWelfareTheCompanyrelievesthelaborrelationwiththeemployeesbeforetheduedateofthelaborcontactsorputsforwardtheadviceofprovidingthecompensationforurgingtheemployeesvolunteeredtoreceivethedownsizingandwhentheCompanycouldnotunilaterallywithdrawthedemissionwelfareowningtotherelievingplanofthelaborrelationorthedownsizingadvice,shouldconfirmtheliabilitiesoftheemployees’salaryfromthedemissionwelfareontheearlierdaybetweenthecostconfirmedbytheCompanyandthecostrelatedtothereorganizationofthepaymentofthedemissionwelfareandincludeswhichinthecurrentgainsandlosses.
(5)AccountingTreatmentoftheWelfareofOtherLong-termStaffs
Otherlong-termemployeebenefitsprovidedbytheCompanytoemployeesthatmeettheconditionsofdefinedcontributionplansshallbehandledinaccordancewiththeabove-mentionedrelevantprovisionsondefinedcontributionplans.Thoseinlinewiththedefinedbenefitplanshallbehandledinaccordancewiththeabove-mentionedrelevantprovisionsonthedefinedbenefitplan.However,thepartof"changescausedbyremeasuringthenetliabilitiesornetassetsofthedefinedbenefitplan"inthesalarycostofrelevantemployeesshallbeincludedinthecurrentprofitandlossortherelevantassetcost.
25.ProvisionsIftheobligationrelatedtocontingencymeetsthefollowingconditionsatthesametime,theCompanywillrecognizeitasaprovision.
(1)TheobligationisthecurrentobligationassumedbytheCompany;
(2)TheperformanceoftheobligationislikelytocauseanoutflowofeconomicbenefitsoftheCompany;
(3)Theamountoftheobligationcanbemeasuredreliably.Theprovisionsareinitiallymeasuredinaccordancewiththeoptimalestimateofthenecessaryexpendituresforthefulfillmentofthecurrentobligation,withfactorssuchasrisks,uncertaintyandthetimevalueofmoneyrelatedtocontingenciestakenintoconsiderationcomprehensively.Wherethetimevalueofmoneyhasasignificantimpact,thebestestimateisdeterminedbydiscountingtherelevantfuturecashoutflow.TheCompanyre-checksthebookvalueoftheprovisionsonthebalancesheetdateandadjuststhebookvaluetoreflectthecurrentbestestimate.Ifallorpartoftheexpenditurerequiredtosettlerecognizedprovisionsisexpectedtobecompensatedbyathirdpartyorotherparties,theamountofcompensationshallberecognizedseparatelyasanassetonlywhenitissubstantiallycertainthatitwillbereceived.Therecognizedamountofcompensationshallnotexceedthebookvalueoftherecognizedliabilities.
26.Share-basedPaymentsandEquityInstruments
(1)Categoryofshare-basedpaymentTheshare-basedpaymentsoftheCompanyaredividedintoequity-settledsharepaymentsandcash-settledsharepayments.
(2)MethodofdeterminingthefairvalueofequityinstrumentsTheCompanyshalldeterminethefairvalueofequityinstrumentssuchasoptionsgrantedinactivemarketsaccordingtothequotationsinactivemarkets.Forgrantedequityinstrumentssuchasoptionswithoutactivemarkets,thefairvalueisdeterminedbyoptionpricingmodel.Thefollowingfactorsshallbeconsideredfortheselectedoptionpricingmodel:A.Exercisepriceoftheoption;B.Expirationdateoftheoption;C.Currentpriceoftheobjectshares;D.Expectedfluctuationrateofstockprice;E.Estimateddividendsofshares;F.Risk-freeinterestratewithintheoptionterm.
(3)GroundforrecognizingtheoptimalestimationoffeasiblerightequityinstrumentsOneachbalancesheetdateduringthewaitingperiod,theCompanyshallmaketheoptimalestimatebasedonsubsequentinformationsuchasthelatestchangeinthenumberofemployeeswithfeasiblerights,andrevisethenumberofequityinstrumentsfortheestimatedfeasiblerights.Onthefeasiblerightdate,thefinalestimatednumberoffeasiblerightequityinstrumentsshallbethesameastheactualnumberoffeasiblerights.
(4)Relevantaccountingtreatmentforimplementing,modifyingandterminatingshare-basedpaymentplanEquity-settledshare-basedpaymentsshallbemeasuredatthefairvalueoftheequityinstrumentsgrantedtoemployees.Wheretherightisexercisedimmediatelyafterthegrant,relevantcostsorfeesshallbeincludedinaccordancewiththefairvalueoftheequityinstrumentsonthegrantdatetoaccordinglyincreasethecapitalreserve.Wheretherightisexerciseduponthecompletionoftheservicesduringthewaitingperiodortheachievementofthespecifiedresultconditions,theservicesobtainedinthecurrentperiodshallbeincludedintherelevantcostsorfeesandthecapitalreserveaccordingtothefairvalueoftheequityinstrumentson
thegrantdatebasedontheoptimalestimateofthenumberoffeasiblerightequityinstrumentsoneachbalancesheetdateduringthewaitingperiod.Therecognizedrelatedcostsorfeesandtotalowner'sequityafterthefeasiblerightdateshallnotbeadjustedanymore.WhentheCompanymodifiesashare-basedpaymentplan,ifthemodificationincreasesthefairvalueoftheequityinstrumentsgranted,theincreaseintheservicesacquiredshallberecognizedaccordinglyaccordingtotheincreaseinthefairvalueoftheequityinstruments;ifthemodificationincreasesthenumberofequityinstrumentsgranted,thefairvalueoftheincreasedequityinstrumentsshallberecognizedaccordinglyastheincreaseintheservicesacquired.Theincreaseinthefairvalueoftheequityinstrumentsreferstothedifferencebetweenthefairvaluesoftheequityinstrumentsbeforeandafterthemodificationonthemodificationdate.Ifthemodificationreducesthetotalfairvalueoftheshare-basedpaymentoranyothermethodnotconducivetotheemployeesisadoptedtomodifythetermsandconditionsoftheshare-basedpaymentplan,theaccountingtreatmentoftheservicesacquiredwouldcontinue,asifsuchchangehadneveroccurred,unlesstheCompanycancelssomeorallofthegrantedequityinstruments.Duringthewaitingperiod,ifthegrantedequityinstrumentiscanceled(Excludingthosecancelledduetofailuretomeetnon-market-basedvestingconditions,suchasserviceconditionsornon-market-basedperformanceconditions.),theCompanyshalltreatthecanceledequityinstrumentasanacceleratedexercise,immediatelyincludetheleftamounttoberecognizedduringthewaitingperiodinthecurrentprofitandloss,andrecognizethecapitalreserveatthesametime.Wheretheemployeeorotherpartycanchoosetomeetthenon-feasiblerightconditionbutfailsduringthewaitingperiod,itshallbetreatedasthecancellationofthegrantedequityinstrument.
(5)RestrictedSharesIntheequityincentiveplan,theCompanygrantsrestrictedstockstotheincentivepersonnel,whofirstlysubscribethestocks.Iftheunlockingconditionsspecifiedintheequityincentiveplanarenotmet,theCompanywillrepurchasethestocksatthepreviouslyagreedprice.Wheretherestrictedstocksissuedtotheemployeeshasgonethroughcapitalincreaseproceduressuchasregistrationinaccordancewithrelevantprovisions,theCompanyshall,onthegrantdate,recognizethesharecapitalandthecapitalreserveinconformitywiththesubscriptionpaymentreceivedfromtheemployees.Meanwhile,itshallrecognizethetreasurystocksandotherpayableswithrespecttorepurchaseobligations.
27.RevenueAccountingpoliciesadoptedfortherecognitionandmeasurementofrevenuedisclosedbytypeofbusiness
(1)GeneralprincipleTheCompanyrecognizesrevenuewhenithasfulfilleditscontractperformanceobligationinacontract,namely,whenthecustomerobtainsthecontrolovertherelatedcommodityorservice.Ifacontractcontainstwoormoreperformanceobligations,theCompanyallocatestransactionpricetosingleperformanceobligationsonthecontractcommencementdateaccordingtotherelativeratioofseparatepriceofgoodsorservicescommittedbysingleperformanceobligation,andincomeismeasuredaccordingtothetransactionpriceallocatedtosingleperformanceobligation.Whenmeetingoneofthefollowingconditions,theCompanybelongstoperformanceofcontractperformingobligationsinaperiod,orotherwise,theCompanybelongstoperformanceofcontractperformingobligationsatapointoftime:
①WhiletheCompanyisperformingthecontract,thecustomeracquiresandconsumestheeconomicbenefitarisingfromperformancebytheCompany.
②ThecustomercancontrolthegoodsinconstructioninthecourseofperformancebytheCompany.
③ThegoodsoutputtedinthecourseofperformancebytheCompanyhaveirreplaceablepurpose,andtheCompanyhastherighttocollectionofmoneyforthecompletedperformancepartcumulativeuptonowinthewholetermofcontract.Fortheperformanceobligationperformedinaperiod,theCompanyconfirmsincomeaccordingtotheperformanceprogressinsuchperiod.Whentheperformanceprogresscannotbereasonablydetermined,ifthecostthattheCompanyhasincurredisexpectedtobecompensated,incomeisconfirmedaccordingtothecostamountthathasoccurred,untiltheperformanceprogresscanbereasonably
determined.Fortheperformanceobligationperformedatapointoftime,incomeisconfirmedatthepointoftimewhenthecustomeracquiresthecontrolrighttorelevantgoodsorservices.Whenitjudgeswhetherthecustomerhasacquiredthecontrolrighttothegoodsorservices,theCompanywillconsiderthefollowingindications:
①TheCompanyenjoysthecurrentcollectionrighttothegoodsorservices,i.e.thecustomerundertakescurrentpaymentobligationtothegoods.②TheCompanyhastransferredthelegalownershipofthegoodstothecustomer,thatis,thecustomerhasownedthelegalownershipofthegoods.③TheCompanyhastransferredthekindofthegoodstothecustomer,namely,thecustomerhaspossessedthegoodinkind.④TheCompanyhastransferredthemajorrisksandremunerationontheownershipofthegoods,i.e.thecustomerhasacquiredthemajorrisksandremunerationontheownershipofthegoods.⑤Thecustomerhasacceptedthegoodsorservices.⑥Otherindicationsshowingthatthecustomerhasacquiredthecontrolrighttothegoods.TheCompanyhastransferredgoodsorservicesandhastherighttocollectconsideration(andtherightdependsonfactorsotherthantimeelapse)ascontractassets,andcontractassetisaccruedimpairmentonthebasisofexpectedcreditloss(refertoNoteV-11.TherightoftheCompany,unconditionally(onlydependingontimeelapse)chargingconsiderationfromthecustomer,islistedasreceivable.TheobligationoftheCompanythatshalltransfergoodsorservicestothecustomerfortheconsiderationthathasbeenorshallbecollectedisliabilitytothecontract.Thecontractassetsandcontractliabilitiesunderthesamecontractarelistedinnetamount.Ifnetamountisdebitbalance,itislistedintheitems“contractasset”or“othernon-currentasset”accordingtoitsfluidity;ifnetamountiscreditbalance,itislistedintheitems“contractliability”or“othernon-currentliability”accordingtoitsfluidity.
(2)SpecificmethodsThespecificincomeconfirmingmethodsoftheCompanyarefollowing:
Forincomeofdomesticproducts,aftertheCompanydeliversproductstothepurchaseraccordingtotheprovisionsofthecontractandthepurchaserconfirmsreceipt,thepurchaseracquiresthecontrolrightofproducts,andtheCompanyconfirmsincome.Forincomeofexportableproducts,aftertheCompanycompletescustomsdeclarationofproducts,departureandobtainsbillofladingaccordingtotheprovisionsofthecontract,thepurchaseracquiresthecontrolrightofproducts,andtheCompanyconfirmsincome.Differencesinmethodsfortherecognitionandmeasurementofrevenuecausedbydifferentbusinessmodelsforthesametypeofbusiness
28.ContractCostsContractcostincludestheincrementalcostincurredforacquiringcontractandcontractperformancecost.TheincrementalcostincurredforacquiringcontractreferstothecostthatwillnotoccuriftheCompanyhasnotacquiredcontract(forexample,salescommission).Ifthecostisexpectedtoberecovered,theCompanyregardsitascontractacquiringcostandconfirmsitasanasset.TheexpensesincurredbytheCompanyforacquiringcontract,otherthantheincrementalcostexpectedtoberecovered,areincludedinthecurrentprofitsandlossesatthetimeofoccurrence.Ifthecostincurredforperformanceofcontractdoesnotbelongtoinventoryandotherscopeofothercorporateaccountingstandardsandmeetsthefollowingconditions,theCompanywillregarditascontractperformancecostandconfirmitasanasset:
①Thecostisdirectlyrelatedtoacopyofcontractcurrentlyacquiredorexpectedtobeacquired,includingdirectlabor,directmaterials,manufactureexpenses(orsimilarexpenses),costdeterminedtobeundertakenbythecustomerandothercostincurredduetothecontract;
②ThecostincreasestheresourcesoftheCompanythatwillbeusedforperformanceofcontractobligationsinthefuture;
③Thecostisexpectedtoberecovered.
Theassetsconfirmedbythecontractacquiringcostandtheassetsconfirmedbythecontractperformancecost(“assetsrelatedtocontractcost”)areamortizedaccordingtothesamebasisasconfirmationofgoodsorserviceincomerelatedtotheassetandareincludedinthecurrentprofitsandlosses.Iftheamortizationtermdoesnotexceedoneyear,itwillbeincludedinthecurrentprofitsandlossesatthetimeofoccurrence.Whenthebookvalueofanassetrelatedtocontractcostishigherthanthedifferencebetweenthefollowingtwoitems,theCompanyaccruesprovisionforimpairmenttotheexcessivepartandconfirmsitasimpairmentloss:
①TheremainingconsiderationthattheCompanyexpectstoacquirefromtransferofgoodsorservicesrelatedtotheasset;②Thecostthatwilloccurfortransferofsuchrelatedgoodsorservicesasestimated.
29.GovernmentGrants
Governmentgrantsarerecognizedwhentheymeettheconditionsattachedtogovernmentgrantsandwhentheycanbereceived.Governmentgrantsformonetaryassetsshallbemeasuredaccordingtotheamountreceivedorreceivable.Governmentgrantsfornon-monetaryassetsshallbemeasuredbyfairvalue.AssetrelatedgovernmentgrantsrefertothegovernmentgrantsobtainedbytheCompanyforacquisitionandconstructionorotherformsoflong-termassets.Inaddition,theyaregovernmentgrantsrelatedtoincome.Regardingthegovernmentgrantsthatthegovernmentdocumentdoesnotspecifytheobjectofsubsidyandcanformlong-termassets,thepartofgovernmentsubsidycorrespondingtotheassetvalueshallberegardedastheasset-relatedgovernmentsubsidyandtherestshallberegardedasincome-relatedgovernmentsubsidy.Ifitisdifficulttodistinguish,thegovernmentsubsidyshallberegardedastheincome-relatedgovernmentsubsidy.Thegovernmentgrantsrelatedtoassetsshallberecognizedasthedeferredincome,whichshallbeincludedintheprofitandlossininstallmentinareasonableandsystematicwaywithintheservicelifeoftherelevantassets.Income-relatedgovernmentgrantswhichareusedtocompensatetherelevantcostsorlossesincurredshallbeincludedinthecurrentprofitandloss.Thoseusedtocompensatetherelevantcostsorlossesinthelaterperiodshallbeincludedinthedeferredincome,andshallbeincludedinthecurrentprofitandlossduringtherecognitionperiodoftherelevantcostsorlosses.Thegovernmentgrantsmeasuredaccordingtothenominalamountshallbedirectlyincludedinthecurrentprofitandloss.ThesamemethodisadoptedforthesameorsimilargovernmentsubsidybusinessesoftheCompany.Governmentgrantsrelatedtodailyactivitiesshallbeincludedinotherincomesaccordingtotheessenceofbusinesstransactions.Governmentgrantsirrelevanttodailyactivitiesareincludedinnon-businessincome.Whentherecognizedgovernmentgrantsneedtobereturned,andareusedtooffsetthecarryingvalueofrelatedassetswheninitiallyrecognized,thecarryingvalueoftheassetsshallbeadjusted;thebookbalanceofrelevantdeferredincomeshallbeoffsetifthereisabalanceofrelevantdeferredincome,andtheexcesspartshallbeincludedinthecurrentprofitandloss.Otherwise,itshallbedirectlyincludedinthecurrentprofitandloss.Regardingtheinterestsubsidyofthepolicypreferentialloanobtained,iftheMinistryofFinanceallocatestheinterestsubsidytotheloanbank,theactualreceivedloanamountshallbetakenastheentryvalueoftheloan,andtheloancostshallbecalculatedaccordingtotheloanprincipalandthepolicypreferentialinterestrate.IftheMinistryofFinanceallocatestheinterestsubsidydirectlytotheCompany,theinterestsubsidywilloffsettheborrowingcosts.
30.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilitiesIncometaxincludescurrentincometaxanddeferredincometax.Allshallbeincludedinthecurrentprofitandlossasincometaxexpenseexcepttheadjustmentbusinessreputationarisingfrombusinessmerger,orthedeferredincometaxrelatedtothetransactionsoreventsdirectlyincludedintheowner'sequityisincludedintheowner'sequity.Pursuanttothetemporarydifferencebetweenthecarryingamountofassetsandliabilitiesonthedateofbalancesheetandthetaxbasis,theCompanyrecognizesthedeferredincometaxbybalancesheetliabilitymethod.
Foralltaxabletemporarydifferences,relateddeferredincometaxliabilitiesarerecognized,unlessthetaxabletemporarydifferencesaregeneratedinthefollowingtransactions:
(1)Theinitialrecognitionofbusinessreputationortheinitialrecognitionofassetsorliabilitiesarisingfromtransactionswiththefollowingcharacteristics:Thetransactionisnotabusinessmerger,anddoesnotaffecttheaccountingprofitortaxableincomewhenitoccurs(Excludingtransactionsthatinitiallyrecognisedassetsandliabilitiesresultinginequaltaxabletemporarydifferencesanddeductibletemporarydifferences.);
(2)Regardingthetaxabletemporarydifferencerelatedtotheinvestmentofsubsidiaries,jointventuresandassociatedenterprises,thetimeofreversalofthetemporarydifferencecanbecontrolledandthetemporarydifferenceisunlikelytobereversedintheforeseeablefuture.Fordeductibletemporarydifferences,deductiblelossesandtaxcreditsthatcanbecarriedforwardinsubsequentyears,theCompanyislikelytoobtainthefuturetaxableincomeasthelimittooffsetthedeductibletemporarydifferences,deductiblelossesandtaxcredits,inwhichwaytorecognizethedeferredincometaxassetsarisingfromthedeductibletemporarydifferences,deductiblelossesandtaxcredits,unlessthedeductibletemporarydifferencesaregeneratedinthefollowingtransactions:
(1)Thetransactionisnotabusinessmerger,anddoesnotaffecttheaccountingprofitnortaxableincomewhenitoccurs(Excludingtransactionsthatinitiallyrecognisedassetsandliabilitiesresultinginequaltaxabletemporarydifferencesanddeductibletemporarydifferences.);
(2)Thecorrespondingdeferredincometaxassetsshallberecognizedifthedeductibletemporarydifferencesrelatedtotheinvestmentofsubsidiaries,jointventuresandassociatedenterprisesmeetthefollowingconditionssimultaneously:Thetemporarydifferencesarelikelytobereversedintheforeseeablefuture,andthetaxableincomeusedtodeductthedeductibletemporarydifferencesislikelytobeobtainedinthefuture.Onthedateofthebalancesheet,theincometaxassetsanddeferredincometaxliabilitiesshallbemeasuredbytheCompanyonthebasisoftheapplicabletaxrateduringtheperiodwhentheassetsareexpectedtoberecoveredortheliabilitiesareexpectedtobepaidoff,andtheincometaximpactontheexpectedrecoveryofassetsonthedateofthebalancesheetoronthemethodtopayofftheliabilitiesshallbereflected.Thebookvalueofdeferredincometaxassetsshallbereviewedateachbalancesheetdate.Ifitisunlikelytoobtainsufficienttaxableincometooffsetagainstthebenefitofthedeferredincometaxasset,thebookvalueofthedeferredincometaxassetsshallbewrittendown.Anysuchwrite-downshouldbesubsequentlyreversedwhereitbecomesprobablethatsufficienttaxableincomewillbeavailable.Asatthebalancesheetdate,deferredincometaxassetsanddeferredincometaxliabilitiesarepresentedasanetamountwhenthefollowingconditionsaresimultaneouslymet:
(1)ThetaxentitywithintheCompanyhasalegallyenforceablerighttosetoffcurrentincometaxassetsagainstcurrentincometaxliabilities;
(2)ThedeferredincometaxassetsanddeferredincometaxliabilitiesarerelatedtoincometaxesleviedbythesametaxationauthorityonthesametaxableentitywithintheCompany.
31.Lease
(1)Identificationoflease
Onthestartdateofthecontract,theCompanyassessedasthelesseeorthelessorwhetherthecustomersinthecontractareentitledtoobtainalmostalltheeconomicbenefitsarisingfromtheuseoftheidentifiedassetsduringtheuseperiod,andhavetherighttodominatetheuseoftheidentifiedassetsduringtheuseperiod.Ifapartytothecontracttransferredtherightallowingthecontrolovertheuseofoneormoreassetsthathavebeenidentifiedwithinacertainperiod,inexchangeforaconsideration,suchcontractisdeterminedbytheCompanytobealeaseorincludesalease.
(2)Asthelessee
Onthecommencementdateoftheleaseterm,theCompanyrecognizestheright-of-useassetsandleaseliabilitiesforallleases,exceptforshort-termleasesandlow-valueassetleaseswithsimplifiedtreatment.Foraccountingpoliciesfortheright-of-useassets,seeNoteV-32.Leaseliabilitiesareinitiallymeasuredinlinewiththeleasepaymentsnotyetpaidonthecommencementdateoftheleasetermusingthepresentvaluecalculatedbytheinterestrateimplicitinlease.Iftheinterestrateimplicitinleasecannotbedetermined,theincrementalborrowingrateshallbeusedasthediscountrate.Leasepaymentsinclude:Fixedpaymentandsubstantialfixedpayment,andtherelevantamountafterdeductingtheleaseincentiveifany;variableleasepaymentsdependingonindexorratio;exercisepriceofthepurchasedoption,providedthatthelesseereasonablydeterminesthattheoptionwillbeexercised;theamounttobepaidfortheexerciseoftheleaseterminationoptions,providedthattheleasetermreflectsthatthelesseewillexercisetheoptionstoterminatethelease;andestimatedpaymentsduetotheguaranteedresidualvalueprovidedbythelessee.Subsequently,itcalculatestheinterestexpensesoftheleaseliabilitiesduringeachperiodoftheleasetermatafixedperiodicinterestrate,andincludesthemincurrentprofitandloss.Variableleasepaymentsthatarenotcoveredinthemeasurementoftheleaseliabilitiesareincludedincurrentprofitorlosswhenactuallyincurred.Short-termleaseAshort-termleasereferstoaleaseforaperiodnotexceeding12monthsonthecommencementdateofthelease,exceptforleaseswithapurchaseoption.TheCompanyincludestheshort-termleasepaymentinthecostofrelevantassetsorthecurrentprofitandlossineachperiodoftheleasetermbythestraight-linemethod.Low-valueassetleaseAlow-valueassetleasereferstoaleasewherethevalueislowerthanRMB40,000andasingleleasedassetisanewasset.TheCompanyincludestheleasepaymentofthelow-valueassetleaseinthecostofrelevantassetsorthecurrentprofitandlossineachperiodoftheleasetermbythestraight-linemethod.Forlow-valueassetlease,itchoosestoadopttheaforesaidsimplifiedtreatmentmethodinlinewiththespecificstatusofeachlease.LeasechangeIfaleasechangesandmeetsthefollowingconditionssimultaneously,theleasechangeshallberegardedasaseparateleaseforaccountingtreatment:a)Theleasechangeexpandsitsleasecopebyincreasingoneormultipleuserightsofleaseassets;andb)Theincreasedconsiderationisequivalenttotheamountoftheseparatepricefortheexpandedpartofthelease,whichisadjustedaccordingtothecontract.Wheretheleasechangeisnotregardedasaseparateleaseforaccountingtreatment,ontheeffectivedateoftheleasechange,bytheCompany,theconsiderationofthecontractisamortizedagainuponchange,theleasetermisredetermined,andtheleaseliabilitiesareremeasuredaccordingtothepresentvaluethatiscalculatedbytheleasepaymentsandthereviseddiscountrateuponchange.TheCompanyshallcorrespondinglyreducethebookvalueoftheright-of-useassetsandincludetheprofitorlossoftheleaseterminatedinpartorwholeinthecurrentprofitorloss,iftheleasechangenarrowsthescopeofleaseorshortenstheleaseterm.TheCompanyshallcorrespondinglyadjustthebookvalueoftheright-of-useassets,ifotherleasechangesresultinthere-calculationoftheleaseliability.
(3)Asthelessor
WhentheCompanyisalessor,itshallrecognizeleasesthatsubstantiallytransferallrisksandremunerationrelatedtotheownershipofassetsasfinanceleases,andleasesotherthanfinanceleasesasoperatingleases.FinancialleaseInafinancelease,theCompanyrecognizesthenetleaseinvestmentasthebookvalueoffinanceleasereceivablesonthecommencementdateoftheleaseterm.Thenetleaseinvestmentisthesumoftheunguaranteedresidualvalueandthepresentvalue
ofleasereceivablesnotyetreceivedonthecommencementdateoftheleasetermattheinterestrateimplicitinlease.TheCompanycalculatesandconfirmstheinterestincomeatafixedperiodicinterestrateineachperiodintheleaseterm.Variableleasepaymentsobtainedthatarenotincludedinthenetleaseinvestmentformeasurement,wheretheCompanyisthelessor,areincludedintheprofitorlossofthecurrentperiodwhenactuallyincurred.AccountingtreatmentshallbeconductedforthederecognitionandimpairmentoffinanceleasereceivablesinaccordancewiththeprovisionsoftheAccountingStandardforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstrumentsandtheAccountingStandardforBusinessEnterprisesNo.23-TransferofFinancialAssets.OperatingleasesTheCompanyshallrecognizethecurrentprofitandlossoftherentoftheoperatingleaseineachperiodoftheleasetermbythestraight-linemethod.Theinitialdirectcostsrelatedtotheoperatingleaseshallbecapitalized,amortizedwithintheleasetermonthesamebasisastherecognitionofrentalearning,andincludedinprofitorlossforthecurrentperiod.Thereceivedvariableleasepaymentsrelatedtotheoperatingleasethatarenotincludedintheleasepaymentsreceivableareincludedinprofitorlossforthecurrentperiodwhentheyareactuallyincurred.LeasechangeWhereanoperatingleasechanges,theaccountingtreatmentisconductedforitwhichisregardedasanewleasefromtheeffectivedateofthechange,andreceivablesinadvanceorleasereceivablesrelatedtoleasebeforechangearedeemedasthereceivablesinthenewlease.Whereafinanceleasechangesandmeetsthefollowingconditionssimultaneously,thechangeisregardedasaseparateleasebytheCompanyforaccountingtreatment:a)Thechangeexpandsitsleasecopebyincreasingoneormultipleuserightsofleaseassets;andb)Theincreasedconsiderationisequivalenttotheamountoftheseparatepricefortheexpandedpartofthelease,whichisadjustedaccordingtothecontract.Whereafinanceleasechangesandisnotregardedasaseparateleaseforaccountingtreatment,theCompanytreatsthechangedleaseunderthefollowingcircumstances:a)Ifthechangecomesintoforceonthecommencementdateoftheleaseterm,theleasewillbeclarifiedasanoperatinglease,whileitwillberegardedasanewleaseforaccountingtreatmentbytheCompanyontheeffectivedateoftheleasechange,andthenetleaseinvestmentbeforetheeffectivedateofleasechangewillberegardedasthebookvalueofleaseassets;andb)Ifthechangecomesintoforceonthecommencementdateoftheleaseterm,theleasewillbeclarifiedasafinancelease,theCompanywillcarryoutaccountingtreatmentinaccordancewiththeprovisionsonmodificationorrenegotiationofacontractoftheAccountingStandardforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstruments.
32.Right-of-UseAssets
(1)Recognitionconditionsforright-of-useassetsTheterm“right-of-useassets”referstotherightofthelesseetousetheleasedassetsduringtheleaseterm.Atthestartdateoftheleaseterm,theCompanyinitiallymeasurestheright-of-useassetsatcost.Thecostincludes:theinitialmeasurementamountofleaseobligations;theleasepaymentamountpaidonorpriortotheinceptionofthelease(lesstherelatedamountofleaseincentivesalreadyenjoyedifany);theinitialdirectcostincurredbythelessee;andtheanticipatedcostofdismantlingandremovingtheleaseholdproperty,restoringthesitewheretheleaseholdpropertyislocated,orbringingtheleaseholdpropertybacktothestateagreeduponintheleaseterms.Asthelessee,theCompanyshallrecognizeandmeasurethecostofdemolitionandrestorationinaccordancewiththeAccountingStandardsforBusinessEnterprisesNo.13-Contingencies.Subsequentadjustmentsaremadeforanyre-measurementoftheleaseliabilities.
(2)Depreciationmethodofright-of-useassetsTheCompanyusesthestraight-linemethodfordepreciation.WhereitcanbereasonablycertainthattheCompany,thelessee,canobtainownershipoftheleasedassetsattheexpiryoftheleaseterm,theleasedassetsaredepreciatedovertheresidualservicelife.WhereitcannotbereasonablycertainthattheCompanycanobtainownershipoftheleasedassetsattheendoftheleaseterm,the
leasedassetsaredepreciatedattheshorteroftheleasetermandtheresidualservicelifeoftheleasedassets.
(3)Impairmenttestmethodandimpairmentprovisionmethodofright-of-useassetsSeeNoteV-22.
33.CostofSafetyProductionandMaintenanceInaccordancewiththeregulationsoftheNoticeonIssuingtheManagementMeasuresfortheProvisionandUseofEnterpriseProductionSafetyCosts(C.Z.[2022]No.136)issuedbytheMinistryofFinanceandtheMinistryofEmergency,andbasedontheaboveactualannualoperatingrevenueofpowergenerationandsupplyenterprises,theCompanyadoptsthemethodwherethedeductionratedeclineswhentheoperatingrevenueincreasestodeductsafetyproductioncostsaccordingtothefollowingstandards:
| Annualactualsalesrevenuestandard | Proportionofsafetyproductioncost(%) |
| NotexceedingRMB10million | 3 |
| RMB10milliontoRMB100million | 1.5 |
| RMB100milliontoRMB1billion | 1 |
| RMB1billiontoRMB5billion | 0.8 |
Safetyproductioncostsandcostsforsustainingsimplereproductionareincludedinthecostofrelevantproductionorcurrentlossandprofitwhendeducted,andaresimultaneouslyincludedinthe“specificreserve”.Whenusingthedeductedsafetyproductioncostsandthecostsforsustainingsimplereproductioninconformitywithregulations,theoutgoingexpendituresshalldirectlybeusedtooffsetthespecificreserve;thecostsbecomingfixedassetsshallbeaggregatedunder“constructioninprogress”andthenberecognizedasfixedassetswhenthesafetyprojectiscompletedandreachestheintendedavailablestatus;Theaforesaidfixedassetswillnotbedepreciatedasaccruedinthefutureperiod.
34.RepurchaseofShares
BeforethesharesrepurchasedbytheCompanyarecancelledortransferred,theyaremanagedastreasuryshares,andallexpendituresfortherepurchaseofsharesaretransferredtothecostoftreasuryshares.Considerationandtransactioncostspaidinsharerepurchasereduceshareholders'equity.Whenbuyingback,transferringorcancellingsharesintheCompany,noprofitsorlossesarerecognized.Thetransferofinventorysharesshallbecreditedtothecapitalreserveonthebasisofthedifferencebetweentheamountactuallyreceivedandthecarryingamountofthetreasurystock.Writeoffsurplusreservesandundistributedprofitsifcapitalreservesareinsufficienttooffset.Write-offoftreasurystockscanreducesharesinparwithparvalueandnumberofwrite-outstocks.Thecapitalreserveisoffsetbasedonthedifferencebetweenbookbalanceandfacevalueofcancelledtreasurystocks.Writeoffsurplusreservesandundistributedprofitsifcapitalreservesareinsufficienttooffset.
35.MaterialAccountingJudgmentsandEstimates
TheCompanyevaluatestheimportantaccountingestimatesandkeyassumptionsadoptedonanongoingbasis,basedonhistoricalexperienceandotherfactors,includingreasonableexpectationsoffutureevents.Importantaccountingestimatesandcriticalassumptionsthathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfiscalyeararelistedasfollows:
ClassificationoffinancialassetsThesignificantjudgmentsinvolvedwhentheCompanydeterminestheclassificationoffinancialassetsincludeanalysisofbusinessmodelsandcontractualcashflowcharacteristics.TheCompanydeterminesthebusinessmodelformanagingfinancialassetsatthelevelofthefinancialassetportfolio,takingintoaccountfactorssuchastheapproachofevaluatingandreportingthe
performanceoffinancialassetstokeymanagementpersonnel,therisksaffectingtheperformanceoffinancialassetsandthemannerinwhichtheyaremanaged,andwayinwhichtherelevantbusinessmanagementpersonnelarecompensated.Thefollowingmainjudgmentsexistinassessingwhetherthecontractualcashflowsoffinancialassetsareconsistentwiththebasiclendingarrangements:
Whetherthetimedistributionoramountoftheprincipalamountduringthedurationmaychangeduetoearlyrepaymentorforotherreasons;whethertheinterestincludesonlythetimevalueofmoney,creditrisk,otherbasiclendingrisksandconsiderationagainstcostsandprofits.Forexample,whethertheamountofearlyrepaymentreflectsonlytheoutstandingprincipalandinterestbasedontheoutstandingprincipal,aswellasreasonablecompensationpaidforearlyterminationofthecontract.MeasurementofexpectedcreditlossesofaccountsreceivableTheCompanycalculatestheexpectedcreditlossofaccountsreceivableusingtheexposuretodefaultriskofaccountsreceivableandtheexpectedcreditlossratio,anddeterminestheexpectedcreditlossratiobasedontheprobabilityofdefaultandthedefaultlossratio.Whendeterminingtheexpectedcreditlossratio,theCompanyusesdatasuchasinternalhistoricalcreditlossexperienceandadjustshistoricaldatatotakeintoaccountcurrentconditionsandforward-lookinginformation.Whenconsideringforward-lookinginformation,theCompanyusesindicatorssuchastheriskofeconomicdownturnandchangesintheexternalmarketenvironment,technologicalenvironmentandcustomerprofile.TheCompanyregularlymonitorsandreviewstheassumptionsrelatedtothecalculationofexpectedcreditlosses.GoodwillimpairmentWeshallassesswhetherthereisimpairmentofgoodwillatleastannually.Thisrequiresestimatingtheusevalueoftheassetgrouptowhichgoodwillhasbeenassigned.Whenestimatingtheusevalue,theCompanyshallestimatethefuturecashflowsfromtheassetgroupandselecttheappropriatediscountratetocalculatethepresentvalueoffuturecashflowsatthesametime.DeferredincometaxassetsTotheextentthatitisprobablethatsufficienttaxableprofitwillbeavailabletooffsetthelosses,theCompanyrecognizesdeferredincometaxassetsforallunusedtaxlosses.ThisrequirestheCompany'smanagementtousemanyjudgmentstoestimatethetimingandamountoffuturetaxableprofits,takingintoaccounttaxplanningstrategies,soastodeterminetheamountofdeferredincometaxassetstoberecognized.DeterminationoffairvalueofunlistedequityinvestmentThefairvalueofunlistedequityinvestmentistheexpectedfuturecashflowsdiscountedatthecurrentdiscountrateforitemswithsimilartermsandriskcharacteristics.SuchvaluationrequirestheCompanytoestimateexpectedfuturecashflowsanddiscountratesandisthereforesubjecttouncertainty.Underlimitedcircumstances,iftheinformationusedtodeterminefairvalueisinsufficient,oriftherangeofpossibleestimatesoffairvalueiswideandthecostrepresentsthebestestimateoffairvaluewithinthatrange,thecostmayrepresentitsappropriateestimateoffairvaluewithinthatrangeofdistribution.
36.ChangesinMainAccountingPoliciesandEstimates
(1)SignificantChangesinAccountingPoliciesInNovember2022,MOFissuedtheInterpretationNo.16oftheAccountingStandardsforBusinessEnterprises(C.K.[2022]No.
31)(hereinafterreferredtoasthe"InterpretationNo.16").InterpretationNo.16stipulatesthatforsingletransactionsthatarenotbusinesscombinations,thataffectneitheraccountingprofitnortaxableincome(ordeductiblelosses)atthetimethetransactionoccurs,andwheretheinitialrecognitionofassetsandliabilitiesresultsintaxabletemporarydifferencesanddeductibletemporarydifferencesofequalamountsshould,inaccordancewiththeNo.18oftheAccountingStandardsforBusinessEnterprises-IncomeTaxesandotherrelevantregulations,berecognizedasdeferredincometaxliabilitiesanddeferredincometaxassets,respectively,atthetimeofthetransaction.Fortransactionsthatoccurredbetweenthebeginningoftheearliestperiodpresentedinthefinancialstatementsandthedateofimplementationoftheaforementionedregulations,enterprisesshould,inaccordancewiththesaidregulations,adjustthecumulativeeffectonthe
openingretainedearningsoftheearliestperiodpresentedinthefinancialstatementsandotherrelatedfinancialstatementitems.Theaforementionedaccountingtreatmentregulationsshallcomeintoforcefrom1January2023.Fortheleaseliabilitiesandright-of-useassetsrecognisedbytheCompanyinitsleasingoperations,aswellastherecognisedprovisionsforobligationstodismantleandthecorrespondingassets,whichgeneratetaxabletemporarydifferencesanddeductibletemporarydifferences,adjustmentsaremadeinaccordancewiththeprovisionsofInterpretationNo.16.Theimpactofimplementingtheaforementionedaccountingpoliciesontheconsolidatedbalancesheetasat31December2023,andtheconsolidatedincomestatementfortheyear2023isasfollows:
| Itemofconsolidatedbalancesheet(31December2023) | Amountaffected |
| Deferredincometaxassets | 14,380,843.22 |
| Deferredincometaxliabilities | 14,380,843.22 |
Theimpactofimplementingtheaforementionedaccountingpoliciesontheconsolidatedbalancesheetasat31December2022,andtheconsolidatedincomestatementfortheyear2022isasfollows:
| Itemofconsolidatedbalancesheet(31December2022) | Before | Amountadjusted | After |
| Deferredincometaxassets | 155,774,523.25 | 16,366,350.08 | 172,140,873.33 |
| Deferredincometaxliabilities | 151,243,432.80 | 16,366,350.08 | 167,609,782.88 |
(2)SignificantChangesinAccountingEstimates
□Applicable?Notapplicable
(3)AdjustmentstoFinancialStatementItemsattheBeginningoftheYearoftheFirstImplementationoftheNewAccountingStandardsImplementedsince2023
□Applicable?Notapplicable
VITaxation
1.MainTaxesandTaxRate
| Categoryoftaxes | Taxbasis | Taxrate |
| VAT | Taxablevalue-addedamount(thetaxableamountiscalculatedbymultiplyingthetaxablesalesbytheapplicabletaxrateanddeductingtheinputtaxallowedtobedeductedinthecurrentperiod) | 13%,9%,6%,5%,3%,0 |
| Urbanmaintenanceandconstructiontax | Turnovertaxactuallypaid | 7%,5% |
| Enterpriseincometax | Incometaxpayable | 0,11%,15%,16.5%,20%,25% |
Notesofthedisclosuresituationofthetaxpayingbodieswithdifferententerprisesincometaxrate
| Taxpayer | Incometaxrate |
| TheCompany | 15% |
| LufengWeaving&Dyeing | 15% |
| LulianNewMaterials | 15% |
| LuThaiHongKong | 16.50% |
| LuqunTextile | 25% |
| XinshengPower | 25% |
| ShanghaiLuThai | 20% |
| ShanghaiZhinuo | 20% |
| LujiaImport&Export | 25% |
| ZhishuConsulting | 20% |
| LuThaiVocationalTrainingSchool | 0% |
| BanyangVilla | 20% |
| HuilinInternational | 15% |
| VACL | 11% |
2.TaxPreference
InaccordancewiththeNoticeforAnnouncingtheFirstBatchofHi-techEnterpriseIdentificationListofShandongProvincein2023withreferenceNo.LuKeZi[2024]4,theCompanywasidentifiedasahi-techenterprise,andthecertificateissuingdatewas29November2023;themajority-ownedsubsidiaryLuFengCompanyLimitedwasidentifiedasahi-techenterprise,andthecertificateissuingdatewas29November2023.InaccordancewiththeNoticeforAnnouncingHi-techEnterpriseListofShandongProvincein2022,themajority-ownedsubsidiaryLulianNewMaterialswasidentifiedasahi-techenterprise,andthecertificateissuingdatewas12December2022.Therefore,inaccordancewithArticle28oftheEnterpriseIncomeTaxLawofthePeople’sRepublicofChinaandtheAnnouncementoftheStateAdministrationofTaxationonIssuesConcerningtheImplementationofPreferentialIncomeTaxPoliciesforHigh-techEnterprises(AnnouncementNo.24[2017]oftheStateAdministrationofTaxation),theapplicableenterpriseincometaxrateshallbe15%.Thewholly-ownedsubsidiaries,includingShanghaiLuthai,ShanghaiZhinuo,ZhishuConsulting,andBanyangVilla,havebeenrecognizedassmall,low-profitenterprises.AccordingtotheAnnouncementoftheMinistryofFinanceandtheStateTaxationAdministrationonPreferentialIncomeTaxPoliciesforSmall,Low-profitEnterprisesandPrivatelyorIndividually-ownedBusinesses(AnnouncementNo.6[2023]oftheMinistryofFinanceandtheStateTaxationAdministration)andAnnouncementoftheMinistryofFinanceandtheStateTaxationAdministrationonFurtherImplementingthePreferentialIncomeTaxPoliciesforMicroandSmallEnterprises(AnnouncementNo.13[2022]oftheMinistryofFinanceandtheStateTaxationAdministration),theportionoftheannualtaxableincomeofsmall,low-profitenterprisesnotexceedingRMB3millionshallbeincludedinthetaxableincomeatareducedrateof25%,andtheenterpriseincometaxshallbepaidatthetaxrateof20%.Thewholly-ownedsubsidiary,LuThaiVocationalTrainingSchool,hasbeenrecognizedasanon-profitmakingorganizationexemptfromtaxbetween2021and2025.AccordingtoArticle26,Item4oftheEnterpriseIncomeTaxLawofthePeople’sRepublicofChina,thepolicywherebyeligiblenon-profitmakingorganizationsareexemptfromenterpriseincometaxshallapplytotheforegoingsubsidiary.LuThai(HongKong)TextileCo.,Ltd.(hereinafterrefersasLuThai(HongKong)Textile),thewholly-ownedsubsidiaryoftheCompany,wasincorporatedinHongKongSAR,whoseprofittaxshallbepaidattaxrateof16.5%.ThewhollyownsubsidiaryVACL,accordingtotheBurma’sSpecialEconomicZoneLawissuedbyPyidaungsuHluttaw,VACLenjoystaxpreferenceoncorporateincometaxof7(7yearstaxholiday)+5(5yearstaxrevenuesdropbyhalf)+5(re-investtheprofitswithin1yearandcontinuestoenjoythehalftaxrevenues5yearsafterwards).Aftergraceperiod,enterpriseincometaxratewasof22%.Year2023isthefirstyearoftaxhalvingperiodwiththeenterpriseincometaxrateat11%.Thewholly-ownedsubsidiary,HuilinInternational,whichwasregisteredintheHainanFreeTradePortandoperatesinthe
encouragedindustry,shallpayenterpriseincometaxatareducedtaxrateof15%between1January2020and31December2024,accordingtotheAnnouncementoftheMinistryofFinanceandtheStateTaxationAdministrationonthePreferentialIncomeTaxPoliciesforEnterprisesRegisteredintheHainanFreeTradePort(AnnouncementNo.31[2020]oftheMinistryofFinanceandtheStateTaxationAdministration).
VII.NotestoMainItemsofConsolidatedFinancialStatements
1.MonetaryAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Cashonhand | 2,633,018.72 | 2,360,089.79 |
| Bankdeposits | 1,280,487,534.58 | 2,054,133,036.04 |
| Othermonetaryfunds | 275,131,494.73 | 11,275,128.14 |
| Total | 1,558,252,048.03 | 2,067,768,253.97 |
| Ofwhich:totalamountdepositedoverseas | 271,126,295.17 | 246,365,368.50 |
Othernotes:
(1)On31December2023,themonetaryassetswithrestrictedownershipwereofRMB4,024,123.14,whichwerethedepositforforeignguaranteebusinessofDONG9,890,410,485.00(equivalenttoRMB2,967,123.14),andlitigationfreezesofRMB1,057,000.00.
(2)TheinterestreceivableinbankdepositswasRMB16,142,334.69.
2.TradingFinancialAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Financialassetsatfairvaluethroughprofitorloss | 723,800,275.39 | 267,695,159.48 |
| Ofwhich: | ||
| Ofwhich:Debtinstrumentinvestment | 203,706,725.51 | 90,644,869.48 |
| Equityinstrumentinvestment | 509,832,518.35 | 148,877,781.17 |
| Derivativefinancialassets | 10,261,031.53 | 28,172,508.83 |
| Ofwhich: | ||
| Total | 723,800,275.39 | 267,695,159.48 |
Othernotes:
AsattheendoftheReportingPeriod,theCompanylent1,425,000sharesofRemegenCo.,Ltd.heldbytheCompanybywayoftransferfacility.
3.NotesReceivable
(1)NotesReceivableListedbyCategory
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Bankacceptancebill | 99,642,708.67 | 95,123,874.32 |
| L/C | 73,631,841.52 | |
| Total | 99,642,708.67 | 168,755,715.84 |
(2)DisclosurebyWithdrawalMethodsforBadDebts
Unit:RMB
| Category | Endingbalance | Beginningbalance | ||||||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
| Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
| Ofwhich: | ||||||||||
| Notesreceivableofbaddebtprovisionwithdrawnbygroups | 99,642,708.67 | 100.00% | 99,642,708.67 | 168,755,715.84 | 100.00% | 168,755,715.84 | ||||
| Ofwhich: | ||||||||||
| Tradeacceptance | ||||||||||
| Bankacceptancebillswithlowcreditratings | 99,642,708.67 | 100.00% | 99,642,708.67 | 99,642,708.67 | 100.00% | 168,755,715.84 | ||||
| Total | 99,642,708.67 | 100.00% | 99,642,708.67 | 99,642,708.67 | 100.00% | 168,755,715.84 | ||||
Ifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofnotesreceivable:
□Applicable?Notapplicable
4.AccountsReceivable
(1)DisclosurebyAging
Unit:RMB
| Aging | Endingcarryingamount | Beginningcarryingamount |
| Withinoneyear(including1year) | 878,555,822.01 | 710,248,142.12 |
| Onetotwoyears | 3,129,451.20 | 1,413,758.76 |
| Twotothreeyears | 143,033.80 | 3,516,929.18 |
| Morethanthreeyears | 7,777,701.22 | 6,724,339.34 |
| Threetofouryears | 3,717,366.06 | 6,330,795.56 |
| Fourtofiveyears | 4,037,499.15 | 391,883.77 |
| Over5years | 22,836.01 | 1,660.01 |
| Total | 889,606,008.23 | 721,903,169.40 |
(2)DisclosurebyWithdrawalMethodsforBadDebts
Unit:RMB
| Category | Endingbalance | Beginningbalance | ||||||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
| amount | Proportion | amount | Withdrawalproportion | amount | Proportion | amount | Withdrawalproportion | |||
| AccountsreceivablewithdrawalofBaddebtprovisionseparatelyaccrued | 5,481,360.70 | 0.62% | 5,481,360.70 | 100.00% | 5,137,500.44 | 0.71% | 5,137,500.44 | 100.00% | ||
| Ofwhich: | ||||||||||
| Accountsreceivablewithdrawalofbaddebtprovisionofbygroup | 884,124,647.53 | 99.38% | 57,656,962.75 | 6.52% | 826,467,684.78 | 716,765,668.96 | 99.29% | 56,338,142.77 | 7.86% | 660,427,526.19 |
| Ofwhich: | ||||||||||
| Group1:Undueaccounts(L/C) | 158,223,236.80 | 17.79% | 158,223,236.80 | |||||||
| Group2:Undueaccounts(creditinsuranceinsured) | 137,080,593.18 | 15.41% | 1,439,346.21 | 1.05% | 135,641,246.97 | 166,814,345.91 | 23.11% | 1,751,550.62 | 1.05% | 165,062,795.29 |
| Group3:Undueaccounts(nocreditinsurance) | 447,692,502.26 | 50.32% | 22,384,625.09 | 5.00% | 425,307,877.17 | 395,429,681.72 | 54.78% | 19,771,484.04 | 5.00% | 375,658,197.68 |
| Group4:Overdueaccounts(creditinsuranceinsured) | 47,975,300.48 | 5.39% | 7,532,122.16 | 15.70% | 40,443,178.32 | 73,996,751.59 | 10.25% | 11,617,489.99 | 15.70% | 62,379,261.60 |
| Group5:Overdueaccounts(nocreditinsurance) | 93,153,014.81 | 10.47% | 26,300,869.29 | 28.23% | 66,852,145.52 | 80,524,889.74 | 11.15% | 23,197,618.12 | 28.81% | 57,327,271.62 |
| Total | 889,606,008.23 | 100.00% | 63,138,323.45 | 7.10% | 826,467,684.78 | 721,903,169.40 | 100.00% | 61,475,643.21 | 8.52% | 660,427,526.19 |
Baddebtprovisionseparatelyaccrued:2023
Unit:RMB
| Name | Beginningbalance | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | Withdrawalproportion | Reasonforwithdraw | |
| Customer1 | 2,705,609.83 | 2,705,609.83 | 2,751,489.34 | 2,751,489.34 | 100.00% | Customerinfinancialdifficulty |
| Customer2 | 1,986,544.97 | 1,986,544.97 | 2,729,871.36 | 2,729,871.36 | 100.00% | Customerinfinancialdifficulty |
| Customer3 | 281,353.47 | 281,353.47 | ||||
| Customer4 | 90,959.35 | 90,959.35 | ||||
| Customer5 | 73,032.82 | 73,032.82 | ||||
| Total | 5,137,500.44 | 5,137,500.44 | 5,481,360.70 | 5,481,360.70 | ||
Ifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivable:
□Applicable?Notapplicable
(3)BadDebtProvisionWithdrawal,ReversedorRecoveredintheReportingPeriod
Withdrawalofbaddebtprovision:
Unit:RMB
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |||
| Withdrawal | Reversedorrecovered | Verification | Others | |||
| Baddebtprovision | 61,475,643.21 | 1,998,736.62 | 336,056.38 | 63,138,323.45 | ||
| Total | 61,475,643.21 | 1,998,736.62 | 336,056.38 | 63,138,323.45 | ||
(4)AccountsReceivableWritten-offinCurrentPeriod
Unit:RMB
| Item | Written-offamount |
| Written-offaccountsreceivable | 336,056.38 |
Notestoverificationofaccountsreceivable:
Therewerenowrite-offsofsignificantaccountsreceivable.
(5)Top5oftheEndingBalanceoftheAccountsReceivableandtheContractAssetsCollectedaccordingtoArrearsParty
Unit:RMB
| Nameoftheentity | EndingbalanceoftheAccountsReceivable | Endingbalanceofcontractassets | Endingbalanceofaccountsreceivableandcontractassets | Proportiontototalendingbalanceofaccountsreceivableandcontractassets | Endingbalanceofbaddebtprovisionofaccountsreceivableandimpairmentprovisionforcontractassets |
| Customer1 | 82,707,168.69 | 82,707,168.69 | 9.30% | 10,761.24 | |
| Customer2 | 39,769,934.18 | 39,769,934.18 | 4.47% | 1,988,496.71 | |
| Customer3 | 36,927,681.40 | 36,927,681.40 | 4.15% | 5,151,015.88 | |
| Customer4 | 34,601,434.87 | 34,601,434.87 | 3.89% | 2,129,403.80 | |
| Customer5 | 26,638,626.82 | 26,638,626.82 | 2.99% | 1,859,490.69 | |
| Total | 220,644,845.96 | 220,644,845.96 | 24.80% | 11,139,168.32 |
5.AccountsReceivableFinancing
(1)AccountsReceivableFinancingListedbyCategory
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| NotesReceivable | 18,336,324.55 | 11,300,942.26 |
| Less:Othercomprehensiveincome-fairvaluechange | -88,118.79 | -92,637.48 |
| Total | 18,248,205.76 | 11,208,304.78 |
(2)OtherNotes
TherewasnobankacceptancebillforwhichbaddebtprovisionaccruedseparatelyintheCompany.OnDecember31,2021,theCompanybelievedthattherewasnosignificantcreditriskinthebankacceptancebillheldbytheCompany,andnosignificantlosscausedbybankdefaults.
(1)TheCompanyhadnopledgednotesreceivableattheendoftheperiod.
(2)TheCompanyhadnotesreceivableendorsedordiscountedbutnotyetdueattheendoftheperiod.
| Category_110075 | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
| Bankacceptancebills | 151,938,439.51 |
| Tradeacceptancenotes | |
| Total | 151,938,439.51 |
Thebankacceptancebillusedfordiscountisacceptedbyabankwithhighcreditgrade,thecreditriskanddeferredpaymentriskarelow,andtheinterestrateriskrelatedtothebillhasbeentransferredtothebank.Itcanbejudgedthatthemainriskandrewardontheownershipofthebillhavebeentransferred,sothebankacceptancebillwasderecognizedattheperiod-end.
6.OtherReceivables
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Dividendreceivable | 18,563,298.39 | |
| Otherreceivables | 22,168,807.43 | 71,292,361.60 |
| Total | 22,168,807.43 | 89,855,659.99 |
(1)DividendReceivable
1)DividendReceivableClassification
Unit:RMB
| Project(orinvestee) | Endingbalance | Beginningbalance |
| SanchangFengshouCottonIndustryCo.,Ltd.(hereinafterreferredtoas"FengshouCotton") | 19,540,314.10 | |
| Less:Baddebtprovision | -977,015.71 | |
| Total | 18,563,298.39 |
2)DisclosurebyWithdrawalMethodsforBadDebts
?Applicable□NotapplicableWithdrawalofbaddebtprovisionbyadoptingthegeneralmodeofexpectedcreditloss:
Unit:RMB
| Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
| Expectedcreditlossinthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
| Balanceof1January2023 | 977,015.71 | 977,015.71 | ||
| Balanceof1January2023intheCurrentPeriod | ||||
| WithdrawaloftheCurrentPeriod | -977,015.71 | -977,015.71 | ||
| Balanceof31December2023 | 0.00 | 0.00 |
ThebasisforthedivisionofeachstageandthewithdrawalproportionofbaddebtprovisionChangesofcarryingamountwithsignificantamountchangedoflossprovisioninthecurrentperiod
□Applicable?Notapplicable
(2)OtherReceivables
1)OtherReceivablesClassifiedbyNature
Unit:RMB
| Nature | Endingcarryingamount | Beginningcarryingamount |
| Exportrebates | 3,798,857.69 | 14,027,493.50 |
| VATtobereturned | 7,283,733.09 | 8,307,493.84 |
| Paymentonbehalf | 8,669,608.81 | 11,897,474.75 |
| Guaranteedepositandcashdeposit | 1,613,961.78 | 4,220,014.58 |
| Borrowingsandpettycash | 1,962,604.48 | 1,543,080.24 |
| Others | 5,078,173.43 | 36,256,599.70 |
| Total | 28,406,939.28 | 76,252,156.61 |
2)DisclosurebyAging
Unit:RMB
| Aging | Endingbalance | Beginningcarryingamount |
| Withinoneyear(including1year) | 17,090,150.86 | 70,961,586.97 |
| Onetotwoyears | 7,685,279.13 | 1,080,590.18 |
| Twotothreeyears | 177,000.00 | 678,244.85 |
| Morethanthreeyears | 3,454,509.29 | 3,531,734.61 |
| Threetofouryears | 35,020.00 | 131,544.46 |
| Fourtofiveyears | 78,300.00 | 101,101.14 |
| Over5years | 3,341,189.29 | 3,299,089.01 |
| Total | 28,406,939.28 | 76,252,156.61 |
(3)DisclosurebyWithdrawalMethodsforBadDebts
√Applicable□NotApplicableWithdrawalofbaddebtprovisionbyadoptingthegeneralmodeofexpectedcreditloss:
Unit:RMB
| Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
| Expectedcreditlossinthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
| Balanceof1 | 3,681,740.03 | 1,278,054.98 | 0.00 | 4,959,795.01 |
| January2023 | ||||
| Balanceof1January2023intheCurrentPeriod | ||||
| WithdrawaloftheCurrentPeriod | -2,801,476.59 | 3,916,801.38 | 163,012.05 | 1,278,336.84 |
| Balanceof31December2023 | 880,263.44 | 5,194,856.36 | 163,012.05 | 6,238,131.85 |
ThebasisforthedivisionofeachstageandthewithdrawalproportionofbaddebtprovisionBaddebtprovisioninthefirststageattheperiod-end:
| Category | Carryingamount | Expectedrateofcreditlossesinthenext12months(%) | Baddebtprovision | Carryingvalue | Reason |
| Baddebtprovisionseparatelyaccrued | |||||
| Withdrawalofbaddebtprovisionbygroup | 17,605,269.82 | 880,263.44 | 16,725,006.38 | ||
| Taxreceivable | 3,798,857.69 | 5 | 189,942.89 | 3,608,914.80 | Notpastdue |
| Securitydepositandmarginreceivable | 1,613,961.78 | 5 | 80,698.09 | 1,533,263.69 | Notpastdue |
| VATtobereturned | 303,857.45 | 5 | 15,192.87 | 288,664.58 | Notpastdue |
| Otherreceivables | 11,888,592.90 | 5 | 594,429.59 | 11,294,163.31 | Notpastdue |
| Total | 17,605,269.82 | 5 | 880,263.44 | 16,725,006.38 |
Baddebtprovisioninthesecondstageattheperiod-end:
| Category | Carryingamount | Expectedcreditlossratefortheentireduration(%) | Baddebtprovision | Carryingvalue | Reason |
| Baddebtprovisionseparatelyaccrued | |||||
| Withdrawalofbaddebtprovisionbygroup | 10,638,657.41 | 5,194,856.36 | 5,443,801.05 | ||
| VATtobereturned | 6,979,875.64 | 48.83 | 3,408,273.28 | 3,571,602.36 | overdue |
| Otherreceivables | 3,658,781.77 | 48.83 | 1,786,583.08 | 1,872,198.69 | overdue |
| Total | 10,638,657.41 | 48.83 | 5,194,856.36 | 5,443,801.05 |
Otherreceivablesinthethirdstageattheperiod-end:
| Category | Carryingamount | Expectedcreditlossratefortheentireduration(%) | Baddebtprovision | Carryingvalue | Reason |
| Baddebtprovisionseparatelyaccrued | 163,012.05 | 163,012.05 | |||
| Customer1 | 163,012.05 | 100 | 163,012.05 | Customerinfinancialdifficulty | |
| Total | 163,012.05 | 100 | 163,012.05 |
Baddebtprovisioninthefirststageattheendofthepreviousyear:
| Category_110104 | Carryingamount | Expectedrateofcreditlossesinthenext12months(%) | Baddebtprovision | Carryingvalue | Divisionbasis |
| Withdrawalofbaddebtprovisionbygroup | 73,634,800.53 | 3,681,740.03 | 69,953,060.50 | ||
| Taxreceivable | 22,334,987.34 | 5 | 1,116,749.36 | 21,218,237.98 | Notpastdue |
| Securitydepositandmarginreceivable | 4,220,014.58 | 5 | 211,000.75 | 4,009,013.83 | Notpastdue |
| Otherreceivables | 47,079,798.61 | 5 | 2,353,989.92 | 44,725,808.69 | Notpastdue |
| Total | 73,634,800.53 | 5 | 3,681,740.03 | 69,953,060.50 |
Baddebtprovisioninthesecondstageattheendofthepreviousyear:
| Category_110106 | Carryingamount | Expectedcreditlossratefortheentireduration(%) | Baddebtprovision | Carryingvalue | Divisionbasis |
| Withdrawalofbaddebtprovisionbygroup | 2,617,356.08 | 1,278,054.98 | 1,339,301.10 | ||
| Otherreceivables | 2,617,356.08 | 48.83 | 1,278,054.98 | 1,339,301.10 | Overdue |
| Total | 2,617,356.08 | 48.83 | 1,278,054.98 | 1,339,301.10 |
Baddebtprovisioninthethirdstageattheendofthepreviousyear:
Attheendofthepreviousyear,theCompanyhadnootherreceivablesinthethirdstage.Changesofcarryingamountwithsignificantamountchangedoflossprovisioninthecurrentperiod
□Applicable?Notapplicable
Unit:RMB
4)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriod
Withdrawalofbaddebtprovision:
Unit:RMB
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |||
| Withdrawal | Reversedorrecovered | Charged-off/Verification | Others | |||
| Expectedcreditlossofthenext12monthsatthefirststage | 3,681,740.03 | -2,801,476.59 | 880,263.44 | |||
| Expectedlossintheduration(creditimpairmentnotoccurred)atthesecondstage | 1,278,054.98 | 3,916,801.38 | 5,194,856.36 | |||
| Expectedlossintheduration(creditimpairmentoccurred)atthethirdstage | 163,012.05 | 163,012.05 | ||||
| Total | 4,959,795.01 | 1,278,336.84 | 6,238,131.85 |
5)Top5OtherAccountsReceivableinEndingBalanceCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameoftheentity | Nature | Endingbalance | Aging | Proportiontototalendingbalanceofotherreceivables% | Endingbalanceofbaddebtprovision |
| Customer1 | RebateofVAT | 7,283,733.09 | Within1yearand1to2years | 25.64% | 3,423,466.15 |
| Customer2 | Advancepayments | 5,982,874.78 | Within1year | 21.06% | 299,143.74 |
| Customer3 | Exportrebates | 3,798,857.69 | Within1year | 13.37% | 189,942.88 |
| Customer4 | Advancepayments | 1,446,209.23 | Within1year | 5.09% | 72,310.46 |
| Customer5 | Advancepayments | 1,197,960.40 | Within1year | 4.22% | 59,898.02 |
| Total | 19,709,635.19 | 69.38% | 4,044,761.25 |
7.Prepayment
(1)PrepaymentListedbyAgingAnalysis
| Aging | Endingbalance | Beginningbalance | ||
| amount | Proportion | amount | Proportion | |
| Within1year | 51,843,880.46 | 99.96% | 94,608,438.10 | 99.57% |
| Onetotwoyears | 17,437.82 | 0.04% | 411,030.94 | 0.43% |
| Twotothreeyears | 2,129.28 | |||
| Morethanthreeyears | 2,129.28 | |||
| Total | 51,863,447.56 | 95,021,598.32 | ||
Notesofthereasonsoftheprepaymentagingover1yearwithsignificantamountbutfailedsettledintime:
Therewerenosignificantprepaymentsagedoveroneyearduringtheyear.
(2)Top5PrepaymentinEndingBalanceCollectedaccordingtothePrepaymentTarget
| Nameoftheentity | Closingbalanceofprepayments | Percentageoftotaladvancestosuppliers(%) |
| Supplier1 | 7,859,205.06 | 15.15 |
| Supplier2 | 7,845,351.21 | 15.13 |
| Supplier3 | 7,084,533.57 | 13.66 |
| Supplier4 | 6,647,230.33 | 12.82 |
| Supplier5 | 4,722,637.93 | 9.11 |
| Total | 34,158,958.10 | 65.87 |
Othernotes:TheadvancestosuppliersfromthetopfiveofprepaidpartiesclassifiedbasedontheendingbalancetotalsRMB34,158,958.10inthecurrentperiod,accountingfor65.87%ofthetotalendingbalanceoftheadvancestosuppliers.
8.InventoryWhethertheCompanyneedstocomplywiththedisclosurerequirementsfortherealestateindustryNo
(1)CategoryofInventory
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreservesofinventoriesorimpairmentprovisionforcontractperformancecosts | Carryingvalue | Carryingamount | Depreciationreservesofinventoriesorimpairmentprovisionforcontractperformancecosts | Carryingvalue | |
| Rawmaterials | 961,742,257.63 | 48,846,493.37 | 912,895,764.26 | 964,638,749.13 | 47,996,904.87 | 916,641,844.26 |
| Goodsinprocess | 504,407,562.92 | 11,183,192.80 | 493,224,370.12 | 502,282,021.10 | 12,926,711.64 | 489,355,309.46 |
| Inventorygoods | 886,717,966.10 | 181,209,030.54 | 705,508,935.56 | 869,338,282.54 | 181,010,948.47 | 688,327,334.07 |
| Commissionedproducts | 12,510,504.76 | 12,510,504.76 | 13,525,220.54 | 13,525,220.54 | ||
| Total | 2,365,378,291.41 | 241,238,716.71 | 2,124,139,574.70 | 2,349,784,273.31 | 241,934,564.98 | 2,107,849,708.33 |
(2)FallingPriceReservesofInventoryandImpairmentReservesforContractPerformanceCosts
Unit:RMB
| Item | Beginningbalance | Increasedamountofthecurrentperiod | Decreasedamountforthecurrentperiod | Endingbalance | ||
| Withdrawal | Others | Transferred-backorcharged-off | Others | |||
| Rawmaterials | 47,996,904.87 | 4,495,359.90 | 3,645,771.40 | 48,846,493.37 | ||
| Goodsinprocess | 12,926,711.64 | 7,398,390.95 | 9,141,909.79 | 11,183,192.80 | ||
| Inventorygoods | 181,010,948.47 | 76,851,579.36 | 76,653,497.29 | 181,209,030.54 | ||
| Total | 241,934,564.98 | 88,745,330.21 | 89,441,178.48 | 241,238,716.71 | ||
Items
| Items | Thespecificbasisfordeterminingthenetrealizablevalue | Reasonsforcharge-off/write-offofinventoryfallingpricereservesinthecurrentperiod |
| Rawmaterials | Estimatedsellingpricedeductstheestimatedsellingexpenseandtherelevanttaxes | Sales |
| Inventorygoods | Estimatedsellingpricedeductstheestimatedsellingexpenseandtherelevanttaxes | Sales |
| Work-in-progress | Estimatedsellingpriceoffinishedgoodsdeductsthecostestimateduntilcompletion,estimatedsalestaxesandrelevanttaxes | Sales |
9.OtherCurrentAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Othertax | 801,750.09 | 9,813,869.63 |
| Prepaidincometax | 2,774,815.63 | 14,983,737.42 |
| Prepaidothertaxes | 3,453,982.70 | 432,344.55 |
| Convertiblebrokenlotfund | 199,680.79 | 199,689.59 |
| Refundabledeposits | 137,881,884.82 | 51,418,261.88 |
| Total | 145,112,114.03 | 76,847,903.07 |
10.Long-termEquityInvestment
Unit:RMB
| Investee | Beginningbalance(carryingvalue) | Beginningbalanceofdepreciationreserve | Increase/decreaseforthecurrentperiod | EndingBalance(CarryingValue) | Endingbalanceofdepreciationreserve | |||||||
| Additionalinvestment | Reducedinvestment | Gainsandlossesrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Changesofotherequity | Cashbonusorprofitsannouncedtoissue | Withdrawalofimpairmentprovision | Others | |||||
| I.Jointventures | ||||||||||||
| II.Associatedenterprises | ||||||||||||
| NingboMeishanBondedPortAreaHaohongEquityInvestmentPartnership(L.P)(hereinafterreferredtoas“Haohong | 60,547,749.28 | 20,156,313.56 | 7,866,263.99 | 48,257,699.71 | ||||||||
| Investment”) | ||||||
| NingboHaoyingEquityInvestmentPartnership(L.P)(hereinafterreferredtoas“HaoyingInvestment”) | 123,620,876.41 | 10,918,662.01 | -17,422,434.34 | 95,279,780.06 | ||
| Subtotal | 184,168,625.69 | 31,074,975.57 | -9,556,170.35 | 143,537,479.77 | ||
| Total | 184,168,625.69 | 31,074,975.57 | -9,556,170.35 | 143,537,479.77 |
Therecoverableamountisdeterminedbasedonthenetamountofthefairvalueminusdisposalcosts
□Applicable?NotapplicableTherecoverableamountisdeterminedbythepresentvalueoftheforecastedfuturecashflow.
□Applicable?Notapplicable
11.OtherNon-currentFinancialAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Equityinstrumentinvestment | 76,750,000.00 | 325,110,000.00 |
| Financialassetsassignedmeasuredbyfairvalueandthechangesbeincludedinthecurrentgainsandlosses | 12,000,000.00 | 12,000,000.00 |
| Total | 88,750,000.00 | 337,110,000.00 |
12.InvestmentProperty
(1)InvestmentPropertyAdoptingtheCostMeasurementMode?Applicable□Notapplicable
Unit:RMB
| Item | Housesandbuildings | Landuseright | Constructioninprogress | Total |
| I.Originalcarryingvalue | ||||
| 1.Beginningbalance | 33,577,852.12 | 33,577,852.12 | ||
| 2.Increasedamountforthecurrentperiod | 130,806.00 | 130,806.00 |
| (1)Outsourcing | |||
| (2)Transferfrominventory/fixedassets/constructioninprogress | 130,806.00 | 130,806.00 | |
| (3)Businesscombinationincrease | |||
| 3.Decreasedamountforthecurrentperiod | |||
| (1)Disposal | |||
| (2)Othertransfer | |||
| 4.Endingbalance | 33,708,658.12 | 33,708,658.12 | |
| II.Accumulativedepreciationandaccumulativeamortization | |||
| 1.Beginningbalance | 13,116,916.91 | 13,116,916.91 | |
| 2.Increasedamountforthecurrentperiod | 1,013,565.28 | 1,013,565.28 | |
| (1)Withdrawaloramortization | 901,791.98 | 901,791.98 | |
| (2)Transferfrominventory/fixedassets/constructioninprogress | 111,773.30 | 111,773.30 | |
| 3.Decreasedamountforthecurrentperiod | |||
| (1)Disposal | |||
| (2)Othertransfer | |||
| 4.Endingbalance | 14,130,482.19 | 14,130,482.19 | |
| III.Depreciationreserves | |||
| 1.Beginningbalance | |||
| 2.Increasedamountforthecurrentperiod | |||
| (1)Withdrawal | |||
| 3.Decreasedamountforthecurrentperiod | |||
| (1)Disposal | |||
| (2)Othertransfer | |||
| 4.Endingbalance | |||
| IV.Carryingvalue | |||
| 1.Endingcarryingvalue | 19,578,175.93 | 19,578,175.93 | |
| 2.Beginningcarryingvalue | 20,460,935.21 | 20,460,935.21 |
Therecoverableamountisdeterminedbasedonthenetamountofthefairvalueminusdisposalcosts
□Applicable?NotapplicableTherecoverableamountisdeterminedbythepresentvalueoftheforecastedfuturecashflow.
□Applicable?Notapplicable
(2)InvestmentPropertyAdoptingtheFairValueMeasurementMode
□Applicable?Notapplicable
13.FixedAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Fixedassets | 5,597,692,505.07 | 5,807,847,850.67 |
| Liquidationoffixedassets | ||
| Total | 5,597,692,505.07 | 5,807,847,850.67 |
(1)ListofFixedAssets
Unit:RMB
| Item | Housesandbuildings | Machineryequipment | Transportationequipment | Electronicequipmentandothers | Total |
| I.Originalcarryingvalue: | |||||
| 1.Beginningbalance | 3,652,101,893.21 | 7,427,223,782.49 | 53,341,156.82 | 133,738,892.88 | 11,266,405,725.40 |
| 2.Increasedamountforthecurrentperiod | 124,150,251.95 | 201,949,303.23 | 2,444,622.95 | 2,152,130.10 | 330,696,308.23 |
| (1)Purchase | 143,472,298.75 | 2,256,680.85 | 2,040,376.59 | 147,769,356.19 | |
| (2)Transferfromconstructioninprogress | 107,969,731.75 | 35,029,695.21 | 142,999,426.96 | ||
| (3)Businesscombinationincrease | |||||
| (4)Otherincrease | 16,180,520.20 | 23,447,309.27 | 187,942.10 | 111,753.51 | 39,927,525.08 |
| 3.Decreasedamountforthecurrentperiod | 4,842,788.55 | 130,822,767.06 | 308,974.36 | 5,062,921.21 | 141,037,451.18 |
| (1)Disposalorscrap | 4,711,982.55 | 94,472,487.96 | 308,974.36 | 5,062,921.21 | 104,556,366.08 |
| (2)Transferfromconstructioninprogress | 36,350,279.10 | 36,350,279.10 | |||
| (3)Transferfrominvestmentproperties | 130,806.00 | 130,806.00 | |||
| 4.Endingbalance | 3,771,409,356.61 | 7,498,350,318.66 | 55,476,805.41 | 130,828,101.77 | 11,456,064,582.45 |
| II.Accumulativedepreciation | |||||
| 1.Beginning | 1,217,812,756.74 | 4,048,548,925.66 | 39,994,380.21 | 114,073,387.92 | 5,420,429,450.53 |
| balance | |||||
| 2.Increasedamountforthecurrentperiod | 129,838,753.47 | 332,896,533.06 | 3,663,533.53 | 7,348,030.47 | 473,746,850.53 |
| (1)Withdrawal | 127,206,159.07 | 325,659,023.01 | 3,527,105.19 | 7,253,684.90 | 463,645,972.17 |
| (2)OtherIncreases | 2,632,594.40 | 7,237,510.05 | 136,428.34 | 94,345.57 | 10,100,878.36 |
| 3.Decreasedamountforthecurrentperiod | 4,136,059.87 | 69,927,446.83 | 278,076.92 | 4,624,151.85 | 78,965,735.47 |
| (1)Disposalorscrap | 4,024,286.57 | 66,823,047.25 | 278,076.92 | 4,624,151.85 | 75,749,562.59 |
| (2)Transferfromconstructioninprogress | 3,104,399.58 | 3,104,399.58 | |||
| (3)Transferfrominvestmentproperties | 111,773.30 | 111,773.30 | |||
| 4.Endingbalance | 1,343,515,450.34 | 4,311,518,011.89 | 43,379,836.82 | 116,797,266.54 | 5,815,210,565.59 |
| III.Depreciationreserves | |||||
| 1.Beginningbalance | 429,416.16 | 37,631,204.93 | 5,671.30 | 62,131.81 | 38,128,424.20 |
| 2.Increasedamountforthecurrentperiod | 17,131,456.31 | 17,131,456.31 | |||
| (1)Withdrawal | 17,131,456.31 | 17,131,456.31 |
3.Decreasedamountforthecurrentperiod
| 3.Decreasedamountforthecurrentperiod | 12,070,957.69 | 27,411.03 | 12,098,368.72 | ||
| (1)Disposalorscrap | 12,070,957.69 | 27,411.03 | 12,098,368.72 |
4.Endingbalance
| 4.Endingbalance | 429,416.16 | 42,691,703.55 | 5,671.30 | 34,720.78 | 43,161,511.79 |
| IV.Carryingvalue | |||||
| 1.Endingcarryingvalue | 2,427,464,490.11 | 3,144,140,603.22 | 12,091,297.29 | 13,996,114.45 | 5,597,692,505.07 |
| 2.Beginningcarryingvalue | 2,433,859,720.31 | 3,341,043,651.90 | 13,341,105.31 | 19,603,373.15 | 5,807,847,850.67 |
(2)FixedAssetsLeasedoutbyOperationLease
Unit:RMB
| Item | Endingcarryingamount |
| Housesandbuildings | 4,704,074.57 |
(3)FixedAssetsFailedtoAccomplishCertificationofProperty
Unit:RMB
| Item | Carryingvalue | Reason |
| Lufengweavingdyegrayyarnwarehouse | 11,917,191.06 | Undertherelevantcertificateproceduresofacceptance,measurement,examinationbytherealestatetradingcenterandotherdepartments |
| LuThaiTextileWarehouse01,02 | 6,144,662.12 | Thesameasabove |
| LulianNewMaterialsYarnWarehouse | 7,806,406.97 | Thesameasabove |
| FabricInspectionWorkshopofLulianNewMaterials | 82,360,714.56 | Thesameasabove |
14.ConstructioninProgress
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Constructioninprogress | 383,113,337.09 | 162,197,188.04 |
| Engineeringmaterials | 485,383,541.32 | 37,746,313.69 |
| Total | 868,496,878.41 | 199,943,501.73 |
(1)ListofConstructioninProgress
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Productionlineprojectofhigh-gradefabrics(PhaseI) | 375,973,427.49 | 375,973,427.49 | 110,653,801.45 | 110,653,801.45 | ||
| ReformprojectofXinshengThermalPower | 4,783,916.38 | 4,783,916.38 | 18,548,362.41 | 18,548,362.41 | ||
| Othersporadicprojects | 2,355,993.22 | 2,355,993.22 | 32,995,024.18 | 32,995,024.18 | ||
| Total | 383,113,337.09 | 383,113,337.09 | 162,197,188.04 | 162,197,188.04 | ||
(2)ChangesinSignificantConstructioninProgressduringtheReportingPeriod
Unit:RMB
| ProjectName | Budget | Beginningbalance | Increasedamountofthe | Transferredinfixed | Otherdecreased | Endingbalance | Proportionofaccumul | Jobschedule | Accumulatedamount | Ofwhich:amount | Capitalizationrateof | Capitalresour |
| currentperiod | assets | amountforthecurrentperiod | atedinvestmentinconstructionstobudget | ofinterestcapitalization | ofcapitalizedinterestsfortheReportingPeriod | interestsfortheReportingPeriod | ces | |||||
| Productionlineprojectofhigh-gradefabrics(PhaseI) | 464,800,000.00 | 110,653,801.45 | 334,696,065.24 | 69,376,439.20 | 375,973,427.49 | 95.00% | 87.00% | 11,598,184.16 | 11,598,184.16 | 3.68% | Publicofferingfundandself-raisedfund | |
| ReformprojectofXinshengThermalPower | 8,000,000.00 | 18,548,362.41 | 6,543,754.69 | 20,308,200.72 | 4,783,916.38 | 60.00% | 80.00% | Other | ||||
| Othersporadicprojects | 32,995,024.18 | 22,675,756.08 | 53,314,787.04 | 2,355,993.22 | Other | |||||||
| Total | 472,800,000.00 | 162,197,188.04 | 363,915,576.01 | 142,999,426.96 | 383,113,337.09 | 11,598,184.16 | 11,598,184.16 |
(3)ImpairmentTestofConstructioninProgress
□Applicable?Notapplicable
(4)EngineeringMaterials
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Specialmaterials | 871,768.43 | 871,768.43 | ||||
| Specialequipmenttobeinstalled | 484,511,772.89 | 484,511,772.89 | 37,746,313.69 | 37,746,313.69 | ||
| Total | 485,383,541.32 | 485,383,541.32 | 37,746,313.69 | 37,746,313.69 | ||
15.Right-of-useAssets
(1)ListofRight-of-useAssets
| Item | Housesandbuildings | Landuseright | Total |
| I.Originalcarryingvalue | |||
| 1.Beginningbalance | 74,496,696.93 | 445,512,889.01 | 520,009,585.94 |
| 2.Increasedamountforthecurrentperiod | 2,478,079.64 | 6,983,277.64 | 9,461,357.28 |
| (1)Rent | 2,447,032.05 | 23,890.12 | 2,470,922.17 |
| (2)LeaseLiabilitiesAdjustment | |||
| (3)OtherIncrease | 31,047.59 | 6,959,387.52 | 6,990,435.11 |
| 3.Decreasedamountforthecurrentperiod | 19,123,073.88 | 19,123,073.88 | |
| (1)Subleaseisafinanciallease | |||
| (2)Transferorholdforsale | |||
| (3)Maturity | 19,123,073.88 | 19,123,073.88 | |
| (4)Otherdecrease | |||
| 4.Endingbalance | 57,851,702.69 | 452,496,166.65 | 510,347,869.34 |
| II.Accumulativedepreciation | |||
| 1.Beginningbalance | 22,293,617.24 | 16,295,463.39 | 38,589,080.63 |
| 2.Increasedamountforthecurrentperiod | 11,453,148.15 | 16,202,295.23 | 27,655,443.38 |
| (1)Withdrawal | 11,431,910.42 | 15,585,545.10 | 27,017,455.52 |
| (2)OtherIncreases | 21,237.73 | 616,750.13 | 637,987.86 |
| 3.Decreasedamountforthecurrentperiod | 19,123,073.88 | 19,123,073.88 | |
| (1)Disposal | |||
| (2)Maturity | 19,123,073.88 | 19,123,073.88 | |
| 4.Endingbalance | 14,623,691.51 | 32,497,758.62 | 47,121,450.13 |
| III.Depreciationreserves | |||
| 1.Beginningbalance | |||
| 2.Increasedamountforthecurrentperiod | |||
| (1)Withdrawal |
| 3.Decreasedamountforthecurrentperiod | |||
| (1)Disposal | |||
| 4.Endingbalance | |||
| IV.Carryingvalue | |||
| 1.Endingcarryingvalue | 43,228,011.18 | 419,998,408.03 | 463,226,419.21 |
| 2.Beginningcarryingvalue | 52,203,079.69 | 429,217,425.62 | 481,420,505.31 |
16.Intangibleassets
(1)Listofintangibleassets
Unit:RMB
| Item | Landuseright | Patentright | Non-patenttechnologies | Softwareuserights | Total |
| I.Originalcarryingvalue | |||||
| 1.Beginningbalance | 470,338,494.00 | 409,550.00 | 1,372,816.75 | 472,120,860.75 | |
| 2.Increasedamountforthecurrentperiod | 1,036,665.83 | 1,036,665.83 | |||
| (1)Purchase | 1,034,057.53 | 1,034,057.53 | |||
| (2)InternalR&D | |||||
| (3)Businesscombinationincrease | |||||
| (4)Otherincrease | 2,608.30 | 2,608.30 | |||
| 3.Decreasedamountforthecurrentperiod | 272,359.86 | 272,359.86 | |||
| (1)Disposal | 272,359.86 | 272,359.86 | |||
| 4.Endingbalance | 470,338,494.00 | 409,550.00 | 2,137,122.72 | 472,885,166.72 | |
| II.Accumulatedamortization | |||||
| 1.Beginningbalance | 118,321,920.63 | 71,671.98 | 837,690.08 | 119,231,282.69 | |
| 2.Increasedamountforthecurrentperiod | 10,096,399.24 | 40,954.38 | 441,010.85 | 10,578,364.47 | |
| (1)Withdrawal | 10,096,399.24 | 40,954.38 | 440,001.32 | 10,577,354.94 |
| (2)OtherIncreases | 1,009.53 | 1,009.53 | |||
| 3.Decreasedamountforthecurrentperiod | 272,359.86 | 272,359.86 | |||
| (1)Disposal | 272,359.86 | 272,359.86 | |||
| 4.Endingbalance | 128,418,319.87 | 112,626.36 | 1,006,341.07 | 129,537,287.30 | |
| III.Depreciationreserves | |||||
| 1.Beginningbalance | |||||
| 2.Increasedamountforthecurrentperiod | |||||
| (1)Withdrawal | |||||
| 3.Decreasedamountforthecurrentperiod | |||||
| (1)Disposal | |||||
| 4.Endingbalance | |||||
| IV.Carryingvalue | |||||
| 1.Endingcarryingvalue | 341,920,174.13 | 296,923.64 | 1,130,781.65 | 343,347,879.42 | |
| 2.Beginningcarryingvalue | 352,016,573.37 | 337,878.02 | 535,126.67 | 352,889,578.06 |
TheproportionofintangibleassetsformedfromtheinternalR&DoftheCompanyatthePeriod-endtotheendingbalanceofintangibleassetswas0.00%.
(2)ImpairmentTestofIntangibleAssets
□Applicable?Notapplicable
17.Developmentcosts
Unit:RMB
| Item | Beginningbalance | Increasedamountofthecurrentperiod | Decreasedamountforthecurrentperiod | Endingbalance |
| R&Dofproducts | 239,775,343.18 | 239,775,343.18 | ||
| Total | 239,775,343.18 | 239,775,343.18 |
Fordetails,refertoNoteVIII.ResearchandDevelopmentExpenditurewithrestrictedownershiporuseright.
18.Goodwill
(1)OriginalCarryingValueofGoodwill
Unit:RMB
| Nameoftheinvestedunitsoreventsgeneratinggoodwill | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance | ||
| Formedbybusinesscombination | Disposal | |||||
| XinshengPower | 20,563,803.29 | 20,563,803.29 | ||||
| Total | 20,563,803.29 | 20,563,803.29 | ||||
19.Long-termPrepaidExpense
Unit:RMB
| Item | Beginningbalance | Increasedamountofthecurrentperiod | Amortizationamountofthecurrentperiod | Otherdecreasedamount | Endingbalance |
| Decorationfee | 2,869,384.57 | 2,593,178.84 | 3,768,137.83 | 1,694,425.58 | |
| Technicalservicecharges | 79,597.40 | 35,376.60 | 44,220.80 | ||
| Otherprepaidexpense | 264,659.22 | 187,467.00 | 77,192.22 | ||
| Total | 2,948,981.97 | 2,857,838.06 | 3,990,981.43 | 1,815,838.60 |
20.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities
(1)DeferredIncomeTaxAssetsHadNotBeenOff-set
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||
| Deductibletemporarydifferences | Deferredincometaxassets | Deductibletemporarydifferences | Deferredincometaxassets | |
| Provisionforimpairmentofassets | 230,431,449.02 | 36,029,044.63 | 255,841,124.12 | 38,889,866.26 |
| Internalunrealizedprofit | 107,060,058.13 | 14,691,107.03 | 131,224,111.61 | 17,495,580.49 |
| Deductiblelosses | 109,351,504.69 | 19,934,589.31 | 152,699,543.87 | 28,176,066.84 |
| Payrollpayable | 67,324,258.61 | 10,109,806.74 | 73,899,001.83 | 11,096,607.07 |
| Deferredincome | 151,500,472.11 | 23,556,894.11 | 159,284,848.68 | 24,863,045.77 |
| Contract | 89,450,421.20 | 22,157,141.99 | 81,088,515.08 | 20,272,128.77 |
| liabilities | ||||
| Changesinfairvalueofothernon-currentfinancialassets | 0.00 | 330,000.00 | 49,500.00 | |
| Thechangesofaccountsreceivablefinancinginfairvalue | 81,235.81 | 12,185.37 | 92,637.48 | 13,895.62 |
| Leaseliabilities | 93,523,870.95 | 14,028,580.65 | 6,274,343.07 | 1,002,949.03 |
| Restrictedstockincentivefees | 27,488,845.13 | 4,123,326.77 | 53,367,269.88 | 8,005,090.48 |
| Convertiblecorporatebonds | 46,083,362.71 | 6,912,504.41 | 17,827,648.45 | 2,674,147.27 |
| Associate | 13,704,707.03 | 2,055,706.05 | 21,570,971.02 | 3,235,645.65 |
| Fundlosses | 28,541,486.65 | 4,281,223.00 | ||
| Total | 964,541,672.04 | 157,892,110.06 | 953,500,015.09 | 155,774,523.25 |
(2)DeferredIncomeTaxLiabilitiesHadNotBeenOff-set
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||
| Taxabletemporarydifference | Deferredincometaxliabilities | Taxabletemporarydifference | Deferredincometaxliabilities | |
| Depreciationoffixedassets | 632,363,989.77 | 99,342,402.95 | 643,426,505.04 | 101,589,274.02 |
| Changesinfairvalueoftradingfinancialassets | 245,835,380.61 | 36,875,307.09 | 23,985,450.00 | 3,597,817.50 |
| Changesinthefairvalueofothernon-currentfinancialassets | 19,467,400.00 | 2,920,110.00 | 268,073,567.06 | 40,211,035.06 |
| Associatedenterprises | 19,521,963.57 | 2,928,294.54 | 36,944,397.91 | 5,541,659.69 |
| Right-of-useassets | 87,417,883.01 | 13,112,682.46 | 2,024,310.22 | 303,646.53 |
| Total | 1,004,606,616.96 | 155,178,797.04 | 974,454,230.23 | 151,243,432.80 |
(3)Deferredincometaxassetsorliabilitieshadbeenoff-setlistedinnetamount
Unit:RMB
| Item | Endingoff-setamountofdeferredincometaxassetsandliabilities | Endingbalanceofdeferredincometaxassetsandliabilities | Beginningoff-setamountofdeferredincometaxassetsandliabilities | Beginningbalanceofdeferredincometaxassetsandliabilities |
| Deferredincometaxassets | 157,892,110.06 | 155,774,523.25 | ||
| Deferredincometaxliabilities | 155,178,797.04 | 151,243,432.80 |
(4)Listofunrecognizeddeferredincometaxassets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Deductibletemporarydifference | 65,448,810.95 | 49,938,675.28 |
| Deductiblelosses | 257,150,469.99 | 170,560,094.42 |
| Total | 322,599,280.94 | 220,498,769.70 |
(5)Deductiblelossesofunrecognizeddeferredincometaxassetswilldueinthefollowingyears
Unit:RMB
| Years | Endingamount | Beginningamount | Note |
| Y2024 | 646.08 | ||
| Y2025 | 299.83 | 52,127.16 | |
| Y2026 | 71,235,558.18 | 71,952,021.26 | |
| Y2027 | 96,904,257.37 | 98,555,299.92 | |
| Y2028 | 89,010,354.61 | ||
| Total | 257,150,469.99 | 170,560,094.42 |
21.OtherNon-currentAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Projectprepayment | 672,659.25 | 672,659.25 | ||||
| Prepaymentforequipment | 2,008,677.98 | 2,008,677.98 | 80,902,453.33 | 80,902,453.33 | ||
| Termdepositsover1year | 150,000,000.00 | 150,000,000.00 | 151,000,000.00 | 151,000,000.00 | ||
| Interestreceivablefromtermdepositsover1year | 3,008,929.60 | 3,008,929.60 | 10,637,013.55 | 10,637,013.55 | ||
| Total | 155,690,266.83 | 155,690,266.83 | 242,539,466.88 | 242,539,466.88 | ||
22.AssetswithRestrictedOwnershiporRighttoUse
Unit:RMB
| Item | Period-end | Period-beginning | ||||||
| Carryingamount | Carryingvalue | Typeofrestriction | Statusofrestriction | Carryingamount | Carryingvalue | Typeofrestriction | Statusofrestriction | |
| Monetarycapital | 4,024,123.14 | 4,024,123.14 | Deposit,frozen | 1,328,577.85 | 1,328,577.85 | Deposit | |
| Notesreceivable | 51,979,653.25 | 51,979,653.25 | Endorsedordiscountedbutnotyetdueforderecognization | ||||
| Othercurrentassets | 137,881,884.82 | 137,881,884.82 | Refundabledeposits | 51,418,261.88 | 51,418,261.88 | Refundabledeposits | |
| Total | 193,885,661.21 | 193,885,661.21 | 52,746,839.73 | 52,746,839.73 |
23.Short-termBorrowings
(1)CategoryofShort-termBorrowings
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Borrowingssecuredbyguarantee | 68,275,604.36 | |
| Creditloan | 512,429,167.91 | 518,946,415.96 |
| Total | 580,704,772.27 | 518,946,415.96 |
Notesofthecategoryforshort-termloans:
Theshort-termborrowingincludesinterestpayableofRMB1,116,261.00.
24.Tradingfinancialliabilities
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Tradingfinancialliabilities | 46,785,831.47 | 4,276,929.70 |
| Ofwhich: | ||
| Derivativefinancialliabilities | 46,785,831.47 | 4,276,929.70 |
| Ofwhich: | ||
| Total | 46,785,831.47 | 4,276,929.70 |
25.Notespayable
Unit:RMB
| Category | Endingbalance | Beginningbalance |
| Bankacceptancebill | 55,450,000.00 | |
| Total | 55,450,000.00 |
ThetotalamountofnotespayableduebutunpaidwasRMB0.00withoutthereasonfornon-payment.
26.AccountsPayable
(1)Listofaccountspayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Paymentforgoods | 127,198,717.36 | 112,354,158.59 |
| Engineeringequipment | 106,150,377.55 | 91,747,417.03 |
| Others | 42,153,820.14 | 42,486,888.12 |
| Total | 275,502,915.05 | 246,588,463.74 |
(2)SignificantAccountsPayableAgingoverOneYearorOverdueOthernotes:
NosignificantaccountspayableoveroneyearoldattheendoftheCurrentPeriod.
27.OtherPayables
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Dividendspayable | 441,113.64 | 441,113.64 |
| Otherpayables | 47,108,259.88 | 82,916,183.07 |
| Total | 47,549,373.52 | 83,357,296.71 |
(1)Dividendspayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Dividendspayabletoindividualshareholders | 441,113.64 | 441,113.64 |
| Total | 441,113.64 | 441,113.64 |
(2)OtherPayables
1)Otherpayableslistedbynature
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Depositsandcashdepositsetc. | 5,026,687.70 | 4,246,108.66 |
| Collectingpaymentonbehalfofothers | 213,812.12 | |
| Restrictedstockrepurchaseobligations | 31,556,265.00 | 65,286,630.00 |
| Others | 10,311,495.06 | 13,383,444.41 |
| Total | 47,108,259.88 | 82,916,183.07 |
28.ContractLiabilities
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Advancefromsales | 203,270,689.03 | 221,918,730.24 |
| Less:contractliabilityrecordedinothercurrentliabilities | -15,197,353.14 | -15,039,057.71 |
| Total | 188,073,335.89 | 206,879,672.53 |
Significantcontractliabilitiesagingoveroneyear
| Item | Endingbalance | Unpaid/Un-carry-overreason |
| Customer1 | 19,560,409.21 | Heatingfacilitiessupportingfeesnotyetcarriedforward |
| Customer2 | 18,808,502.64 | Heatingfacilitiessupportingfeesnotyetcarriedforward |
| Total | 38,368,911.85 |
29.PayrollPayable
(1)Listofpayrollpayable
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance |
| I.Short-termsalary | 329,320,005.76 | 1,380,521,850.73 | 1,425,512,351.86 | 284,329,504.63 |
| II.Post-employmentbenefit-definedcontributionplans | 707,153.96 | 167,306,350.87 | 167,998,035.74 | 15,469.09 |
| III.Terminationbenefits | 1,370,190.45 | 1,370,190.45 | ||
| Total | 330,027,159.72 | 1,549,198,392.05 | 1,594,880,578.05 | 284,344,973.72 |
(2)ListofShort-termSalary
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance |
| 1.Salary,bonus,allowance,subsidy | 264,765,901.82 | 1,232,900,966.76 | 1,284,241,350.60 | 213,425,517.98 |
| 2.Employeewelfare | 40,393,339.27 | 40,181,656.19 | 211,683.08 | |
| 3.Socialinsurance | 35,064.83 | 76,075,327.71 | 76,077,856.04 | 32,536.50 |
| Ofwhich:Medicalinsurancepremiums | 17,115.51 | 68,938,742.30 | 68,924,446.33 | 31,411.48 |
| Work-relatedinjuryinsurance | 6,185.58 | 7,128,808.57 | 7,134,619.14 | 375.01 |
| premiums | ||||
| Maternityinsurance | 11,763.74 | 7,776.84 | 18,790.57 | 750.01 |
| 4.Housingfund | 10,218,812.40 | 10,218,812.40 | ||
| 5.Laborunionbudgetandemployeeeducationbudget | 64,519,039.11 | 20,933,404.59 | 14,792,676.63 | 70,659,767.07 |
| Total | 329,320,005.76 | 1,380,521,850.73 | 1,425,512,351.86 | 284,329,504.63 |
(3)Listofdefinedcontributionplans
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance |
| 1.Basicpensioninsurance | 444,238.10 | 159,190,927.09 | 159,620,164.87 | 15,000.32 |
| 2.Unemploymentinsurancepremiums | 262,915.86 | 8,115,423.78 | 8,377,870.87 | 468.77 |
| Total | 707,153.96 | 167,306,350.87 | 167,998,035.74 | 15,469.09 |
Othernotes:
TheCompany,inlinewiththerequirement,participatesinendowmentinsurance,unemploymentinsuranceplans,andsoon.Undertheseplans,theCompanymakesmonthlycontributionstotheseplansat16%and0.7%ofthesocialsecuritycontributionbase,respectively.NofurtherpaymentobligationswillbeincurredbytheCompanybeyondtheabovemonthlycontributionfees.Therelevantexpenseoccurredwasrecordedintocurrentprofitsandlossesorrelatedassetcosts.
30.TaxesPayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| VAT | 15,261,850.74 | 8,191,703.94 |
| Enterpriseincometax | 14,347,230.63 | 7,853,201.82 |
| Personalincometax | 1,266,426.62 | 1,070,729.43 |
| Urbanmaintenanceandconstructiontax | 2,753,492.14 | 3,625,674.57 |
| Stampduty | 848,769.75 | 760,689.83 |
| Realestatetax | 5,059,177.21 | 5,023,343.97 |
| Landusetax | 668,899.85 | 1,980,295.59 |
| Educationalfee | 1,253,814.31 | 1,602,333.55 |
| Localeducationsurcharge | 843,626.22 | 1,068,222.36 |
| Taxonnaturalresources | 31,938.00 | 99,406.00 |
| Environmentalprotectiontax | 298,007.08 | 207,841.00 |
| Total | 42,633,232.55 | 31,483,442.06 |
31.CurrentPortionofNon-currentLiabilities
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Long-termborrowingsmaturedwithin1year | 88,930,000.00 | 300,800,000.00 |
| Leaseobligationmaturedwithin1year | 7,277,192.49 | 7,121,837.35 |
| Total | 96,207,192.49 | 307,921,837.35 |
32.Othercurrentliabilities
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Taxtobechargedoff | 15,197,353.14 | 15,039,057.71 |
| Endorsedunduebillundernon-derecognition | 48,449,554.97 | 51,849,967.46 |
| Total | 63,646,908.11 | 66,889,025.17 |
33.Long-termBorrowings
(1)Categoryoflong-termborrowings
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Creditloan | 348,922,974.40 | 487,231,096.24 |
| Less:currentportionoflong-termborrowings | -88,930,000.00 | -300,800,000.00 |
| Total | 259,992,974.40 | 186,431,096.24 |
34.BondsPayable
(1)Bondspayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Convertiblecorporatebonds | 1,476,572,070.79 | 1,438,162,231.27 |
| Total | 1,476,572,070.79 | 1,438,162,231.27 |
(2)Changesofbondspayable(excludingotherfinancialinstrumentsdividedasfinancialliabilitiessuchaspreferredsharesandperpetualbonds)
Unit:RMB
| Name | Parvalue | Couponrate | Issuedate | Bondduration | Issueamount | Beginningbalance | IssuedintheReportingPeriod | Interestaccruedatparvalue | Amortizationofpremiumanddepreciation | RepaidintheReportingPeriod | Currentsharesconverted | Endingbalance | Defaultornot |
| LuThaiConvertibleBond(127016) | 1,400,000,000.00 | 9April2020 | 6years | 1,400,000,000.00 | 1,438,162,231.27 | 19,077,097.64 | 33,334,276.89 | 13,998,535.01 | 3,000.00 | 1,476,572,070.79 | No | ||
| Total | -- | 1,400,000,000.00 | 1,438,162,231.27 | 19,077,097.64 | 33,334,276.89 | 13,998,535.01 | 3,000.00 | 1,476,572,070.79 | -- | ||||
(3)Notestotheconvertiblecorporatebonds
AccordingtotheApprovalofthePublicIssueofConvertibleCorporateBondsofLuThaiTextileCo.,Ltd.(ZH.J.X.K[2020]No.
299)oftheChinaSecuritiesRegulatoryCommission,theCompanyissued14millionconvertiblebondswithafacevalueofRMB100eachforatotalissueamountofRMB1.4billionwithamaturityof6years,i.e.from9April2020to8April2026.ThecouponratesoftheconvertiblebondsissuedbytheCompanyare0.3%,0.6%,1%,1.5%,1.8%and2%inthefollowingorderfromthefirststagetothesixthstage,withinterestpayableannually.Theconversionperiodshallcommencefrom(andinclude)thefirsttradingdayon15October2020,sixmonthsafterthedateofissue,andshallendon(andinclude)thetradingdaypriortothematuritydateoftheconvertiblebonds(8April2026).Holdersmayapplyforconversionduringtheconversionperiod.TheinitialconversionpriceofconvertiblecorporatebondswasRMB9.01persharewhenitwasissuedbutwasadjustedtoRMB8.91persharesinceJuly9,2020,aftertheCompanyimplementedthe2019profitsharingagreementonJuly8,2020.AftertheCompanyimplementedtherestrictedstockincentiveplanin2021,thepricewasadjustedtoRMB8.76pershareaccordinglysinceJune7,2021.Upontheimplementationofthe2020profitsharingagreementbytheCompanyonJune18,2021,itwasadjustedtoRMB8.71pershareaccordinglyagainsinceJune18,2021.Upontheimplementationofthe2021profitsharingagreementbytheCompanyonJune23,2022,itwasadjustedtoRMB8.61pershareaccordinglyagainsinceJune23,2022.TheCompanycompletedtheformalitiesforcancellationoftherepurchasedshareson25May2023,andtheconversionpriceoftheconvertiblebondwasadjustedaccordinglytoRMB8.73pershareon26May2023.Upontheimplementationofthe2021ProfitDistributionPlanbytheCompanyon16June2023,theconversionpriceoftheconvertiblebondwasadjustedtoRMB8.63pershareaccordinglyon16June2023.
35.Leaseobligation
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Leasepayments | 123,608,615.06 | 139,634,635.96 |
| Unrecognizedfinancingcosts | -29,751,198.16 | -34,011,494.78 |
| Less:Currentportionofleaseliabilities | -7,277,192.49 | -7,121,837.35 |
| Total | 86,580,224.41 | 98,501,303.83 |
OthernotesTheamountofinterestexpenseonleaseliabilitiesaccruedin2023wasRMB4,548,154.54,whichwasincludedinfinancialcosts-interestexpense.
36.Long-termPayrollPayable
(1)Listoflong-termpayrollpayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| III.Otherlong-termwelfare | 57,276,675.61 | 57,417,997.65 |
| Total | 57,276,675.61 | 57,417,997.65 |
37.DeferredIncome
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance | Reasonforformation |
| Governmentgrants | 159,615,037.36 | 16,710,000.00 | 24,556,089.44 | 151,768,947.92 | Governmentgrants |
| Total | 159,615,037.36 | 16,710,000.00 | 24,556,089.44 | 151,768,947.92 | -- |
38.ShareCapital
Unit:RMB
| Beginningbalance | Increase/decrease(+/-) | Endingbalance | |||||
| Newsharesissued | Bonusshares | Sharesconvertedfromcapitalreserve | Others | Subtotal | |||
| Totalshares | 887,633,151.00 | -24,025,517.00 | -24,025,517.00 | 863,607,634.00 | |||
Othernotes:
(1)InaccordancewiththeProposalonRepurchaseoftheCompany’sDomesticallyListedForeignShares(BShare).reviewedandapprovedbytheCompanyatthe2ndMeetingofthe10thBoardofDirectorson29June2022andthe3rdExtraordinaryGeneralMeetingof2022on15July2022,theCompanyrepurchased23,935,748BsharesandcompletedtheformalitiesforcancellationoftheforegoingrepurchasedsharesattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimitedon25May2023.ThischangeinsharecapitalhasbeenauditedbyZhitongAccountingFirm(SpecialGeneralPartnership)andthecapitalverificationreportZTYZ(2023)No.371C000235wasissuedon25May2023.
(2)Inconformitywiththeresolutionofthe7thMeetingoftheTenthBoardofDirectorson10April2023andtheresolutionoftheGeneralMeetingoftheCompanyon12May2023,theProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveCondition,allthe90,000sharesauthorizedtotheoriginalincentivepersonnelwhodidnotconformtotheincentiveconditionoftheCompanywererepurchasedandcancelled.
(3)Atotalof231.00sharesofconvertiblebondsoftheCompanycanbeconvertedintheReportingPeriod.
39.OtherEquityInstruments
(1)Changesofoutstandingfinancialinstrumentssuchaspreferredsharesandperpetualbondsattheperiod-end
Unit:RMB
| Outstandingfinancialinstruments | Period-beginning | Increase | Decrease | Period-end | ||||
| Number | Carryingvalue | Number | Carryingvalue | Number | Carryingvalue | Number | Carryingvalue | |
| Convertibledebttoequity | 71,383,830.75 | 152.97 | 71,383,677.78 | |||||
| Total | 71,383,830.75 | 152.97 | 71,383,677.78 | |||||
40.CapitalReserves
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance |
| Capitalpremium(premiumonstock) | 294,877,268.02 | 30,337,092.51 | 76,060,350.13 | 249,154,010.40 |
| Othercapitalreserves | 100,994,867.69 | 14,978,971.67 | 30,335,235.00 | 85,638,604.36 |
| Total | 395,872,135.71 | 45,316,064.18 | 106,395,585.13 | 334,792,614.76 |
Othernotes,includingadescriptionoftheincreaseordecreaseforthecurrentperiodandthereasonsforthechange:
(1)AccordingtotheProposalonRepurchaseoftheCompany'sDomesticallyListedForeignShares(BShare)reviewedandapprovedbythe2ndMeetingofthe10thBoardofDirectorsheldon29June2022andthe3rdExtraordinaryGeneralMeetingof2022heldon15July2022,theCompanyrepurchased23,935,748BShares,reducingthecapitalreserve-capitalpremiumbyRMB75,863,250.13.
(2)Inconformitywiththeresolutionofthe7thsessionoftheTenthBoardofDirectorson10April2023andtheresolutionoftheGeneralMeetingoftheCompanyon12May2023,theProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveCondition,allthe90,000sharesauthorizedtotheoriginalincentivepersonnelwhodidnotconformtotheincentiveconditionoftheCompanywererepurchasedandcancelled,reducingthecapitalreserve-capitalpremiumbyRMB197,100.00.
(3)IntermsoftherestrictedstockincentivefeesintheReportingPeriod,thecapitalreserve-othercapitalreserveincreasedbyRMB16,824,114.86.Asfordeferredincometaxassetsarisingfromtherestrictedstockincentivefees,thecapitalreserve-othercapitalreservesincreasedbyRMB1,845,188.04.TheportionofrestrictedsharesofRMB30,335,235.00duetobeunlockedwastransferredfromthecapitalreserve-othercapitalreservetothecapitalreserve-capitalpremium.
(4)Thecapitalreserves—capitalpremiumarisingfromtheconversionofconvertiblebondsincreasedbyRMB1,857.51intheReportingPeriod.
41.Treasurystocks
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance |
| Restrictedstockrepurchase | 65,286,630.00 | 33,730,365.00 | 31,556,265.00 | |
| Bsharesrepurchase | 89,109,568.73 | 172,571,885.18 | 99,798,998.13 | 161,882,455.78 |
| Total | 154,396,198.73 | 172,571,885.18 | 133,529,363.13 | 193,438,720.78 |
Othernotes,includingadescriptionoftheincreaseordecreaseforthecurrentperiodandthereasonsforthechange:
(1)RMB33,730,365.00wasreducedduetotherestrictedstockexpirationunlockandrepurchaseduringtheReportingPeriod.
(2)AccordingtotheProposalonRepurchaseoftheCompany'sDomesticallyListedForeignShares(BShare)reviewedandapprovedbythe2ndMeetingofthe10thBoardofDirectorsheldon29June2022andthe3rdExtraordinaryGeneralMeetingof
2022heldon15July2022,theCompanyrepurchased23,935,748BSharesandcompletedtheformalitiesforcancellationoftheforegoingrepurchasedsharesattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimitedon25May2023,withanincreaseoftreasuryBsharesrepurchasedbyRMB10,689,429.40andadecreaseoftreasuryBsharesrepurchasedbyRMB99,798,998.13fortheCurrentPeriod.
(3)TheCompanyheldthefirstextraordinarygeneralmeetingof2023on6July2023,anddeliberatedandapprovedtheCompany'sDomesticallyListedForeignShares(BShare),whichresultedintherepurchaseof37,490,645BSharesandtheincreaseofTreasuryBSharesbyRMB161,882,455.78.
42.Othercomprehensiveincome
Unit:RMB
| Item | Beginningbalance | Amountofthecurrentperiod | Endingbalance | |||||
| Amountbeforedeductingincometaxforthecurrentperiod | Less:recordedinothercomprehensiveincomeinpriorperiodandtransferredinprofitorlossintheCurrentPeriod | Less:recordedinothercomprehensiveincomeinpriorperiodandtransferredinretainedearningsintheCurrentPeriod | Less:Incometaxexpense | AttributabletotheCompanyastheparentaftertax | Attributableminorityshareholdersaftertax | |||
| II.Othercomprehensiveincomethatmaysubsequentlybereclassifiedtoprofitorloss | 107,628,898.09 | 23,715,953.79 | 1,710.25 | 23,714,243.54 | 3,521.47 | 131,343,141.63 | ||
| Differencesarisingfromtranslationofforeigncurrency-denominatedfinancialstatements | 107,695,495.07 | 23,714,956.57 | 23,714,956.57 | 131,410,451.64 | ||||
| Thechangesofaccountsreceivablefinancinginfairvalue | -66,596.98 | 997.22 | 1,710.25 | -713.03 | 3,521.47 | -67,310.01 | ||
| Totalofothercomprehensiveincome | 107,628,898.09 | 23,715,953.79 | 1,710.25 | 23,714,243.54 | 3,521.47 | 131,343,141.63 | ||
43.SpecialReserve
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrent | Decreaseforthecurrent | Endingbalance |
| period | period | ||
| Safetyproductioncosts | 6,075,563.41 | 6,075,563.41 | |
| Total | 6,075,563.41 | 6,075,563.41 |
44.Surplusreserves
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance |
| Statutorysurplusreserves | 1,211,782,763.96 | 45,536,678.80 | 1,257,319,442.76 | |
| Discretionalsurplusreserves | 3,341,572.58 | 3,341,572.58 | ||
| Total | 1,215,124,336.54 | 45,536,678.80 | 1,260,661,015.34 |
45.RetainedEarnings
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Beginningbalanceofretainedprofitsbeforeadjustments | 6,490,910,719.35 | 5,589,201,772.37 |
| Beginningbalanceoftotalretainedearningsofadjustments(“+”forincrease,“-“fordecrease) | ||
| Beginningbalanceofretainedprofitsafteradjustments | 6,490,910,719.35 | 5,589,201,772.37 |
| Add:NetprofitattributabletoownersoftheCompanyastheparent | 403,444,254.42 | 963,864,819.43 |
| Less:Withdrawalofstatutorysurplusreserves | 45,536,678.80 | |
| Withdrawalofdiscretionarysurplusreserves | ||
| Withdrawalofgeneralriskreserve | ||
| Dividendsofcommonsharespayable | 86,360,751.90 | 62,155,872.45 |
| Dividendsofcommonsharestransferredtosharecapital | ||
| Endingretainedprofits | 6,762,457,543.07 | 6,490,910,719.35 |
Listofadjustmentofbeginningretainedprofits:
1)RMB0.00beginningretainedprofitswasaffectedbyretrospectiveadjustmentconductedaccordingtotheAccountingStandardsforBusinessEnterprisesandrelevantnewregulations.
2)RMB0.00beginningretainedprofitswasaffectedbychangesinaccountingpolicies.
3)RMB0.00beginningretainedprofitswasaffectedbycorrectionofsignificantaccountingerrors.
4)RMB0.00beginningretainedprofitswasaffectedbychangesincombinationscopearisingfromsamecontrol.
5)RMB0.00beginningretainedprofitswasaffectedtotallybyotheradjustments.
46.Operatingrevenueandcostofsales
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear | ||
| OperatingRevenue | CostofSales | OperatingRevenue | CostofSales | |
| Mainoperations | 5,769,590,109.14 | 4,436,999,330.60 | 6,720,748,535.92 | 4,980,066,404.04 |
| Otheroperations | 191,887,143.84 | 154,389,584.80 | 217,593,599.98 | 174,301,192.86 |
| Total | 5,961,477,252.98 | 4,591,388,915.40 | 6,938,342,135.90 | 5,154,367,596.90 |
Whetherthelowerofthenetprofitbeforeandafterdeductionofnon-recurringgainsandlossesthroughauditisnegative
□Yes√No
47.Taxesandsurtaxes
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Urbanmaintenanceandconstructiontax | 16,393,990.50 | 21,551,569.33 |
| Educationalfee | 7,007,721.81 | 9,360,764.03 |
| Taxonnaturalresources | 554,816.00 | 617,924.00 |
| Realestatetax | 21,199,515.92 | 19,206,856.99 |
| Landusetax | 9,265,984.60 | 8,259,276.46 |
| Vehicleandvesselusagetax | 76,087.36 | 75,267.28 |
| Stampduty | 2,878,128.65 | 3,318,063.77 |
| Localeducationsurcharge | 4,883,047.87 | 6,240,509.35 |
| Environmentalprotectiontax | 1,000,678.29 | 836,933.87 |
| Total | 63,259,971.00 | 69,467,165.08 |
Othernotes:
PleaserefertoNoteVI.Taxesfordetailsofvarioustaxesandadditionalstandardsforcalculationandpayment.
48.Administrativeexpense
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Salary | 150,508,460.24 | 152,944,880.74 |
| Warehousefunding | 37,027,435.82 | 39,954,757.25 |
| Depreciationcharge | 43,284,146.75 | 39,274,834.40 |
| Officeoperatingfee | 22,400,178.37 | 23,920,159.03 |
| Start-upcosts | 20,703,414.66 | |
| Restrictedstockincentivefees | 16,758,063.86 | 39,975,678.06 |
| Amortizationofintangibleassets | 10,016,272.55 | 10,319,191.27 |
| Labor-unionexpenditure | 11,144,934.24 | 12,128,110.20 |
| Travelexpense | 10,821,318.60 | 24,305,825.05 |
| Securityservicecharges | 8,977,477.55 | 8,697,194.36 |
| Decoration&repairexpenses | 8,198,163.75 | 9,477,943.54 |
| Employeeeducationbudget | 7,863,725.72 | 8,416,818.94 |
| Energycost | 5,724,113.91 | 5,940,431.82 |
| Insurance | 3,383,248.24 | 3,211,971.72 |
| Auditandassessmentfees | 3,307,933.56 | 3,330,698.66 |
| Others | 22,208,644.97 | 14,411,139.35 |
| Total | 382,327,532.79 | 396,309,634.39 |
49.Sellingexpense
| Item | Amountforthecurrentperiod | Amountforthepreviousperiod |
| Salary | 67,286,568.27 | 73,759,174.53 |
| Salesserviceexpenses | 20,406,411.01 | 18,327,334.31 |
| Advertisingexpense | 19,238,310.32 | 15,425,043.50 |
| Depreciationcharge | 7,009,619.02 | 6,866,294.03 |
| Expenseforrepairmenandloss | 8,413,985.12 | 4,276,970.89 |
| Businessentertainmentexpenses | 3,958,206.27 | 3,128,859.41 |
| Travelexpenses | 8,462,597.19 | 2,886,260.00 |
| Insurance | 3,063,096.84 | 2,658,882.85 |
| Officecost | 1,842,252.81 | 1,628,158.22 |
| Expressfees | 2,458,673.29 | 1,557,023.97 |
| Inspectionfees | 1,826,450.84 | 1,109,761.81 |
| Others | 4,488,643.23 | 5,305,333.20 |
| Total | 148,454,814.21 | 136,929,096.72 |
50.R&Dexpense
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Laborcost | 127,993,607.00 | 148,381,734.76 |
| Materialexpense | 79,121,927.42 | 94,170,080.52 |
| Depreciationcharge | 17,240,537.12 | 18,475,905.83 |
| Other | 15,419,271.64 | 15,397,091.15 |
| Total | 239,775,343.18 | 276,424,812.26 |
50.Financialcosts
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Interestexpense | 99,033,706.35 | 103,785,745.79 |
| Less:Capitalizedinterest | -12,728,462.85 | -15,141,537.04 |
| Interestincome | -52,183,151.33 | -56,856,571.04 |
| Add:Capitalizedinterestincome | 1,130,278.69 | 6,992,839.09 |
| Foreignexchangegainsorlosses | -37,916,375.66 | -197,850,382.46 |
| Less:Capitalizedforeignexchangegainsorlosses | ||
| Commissionchargeandother | 8,112,849.27 | 10,118,775.99 |
| Total | 5,448,844.47 | -148,951,129.67 |
52.Otherincome
Unit:RMB
| Sources | Reportingperiod | Sameperiodoflastyear |
| Subsidiesforthepriceofheatingcoal | 12,000,000.00 | 22,000,000.00 |
| Subsidiesforequipment | 5,871,101.54 | 5,865,271.93 |
| Subsidyforenvironmentalprotection | 5,283,018.87 | 36,800.00 |
| Humanresourcessubsidy | 4,382,702.42 | 1,856,682.75 |
| Taxrelief | 4,209,600.05 | 385,950.34 |
| R&Dsubsidy | 3,565,104.58 | 2,783,850.60 |
| Specialfundsfortheconversionofnewandoldindustrialkineticenergy | 3,500,000.00 | |
| Specialfundforforeigntradeandcommerceandcirculation | 2,753,789.50 | 162,000.00 |
| Landsubsidy | 1,354,251.84 | 1,354,251.84 |
| Financingsubsidy | 952,000.00 | 1,554,100.00 |
| Strengthentheenterprisegovernmentsubsidy | 768,900.00 | 136,600.00 |
| Rebateofsurchargesforwithholdingtaxes | 268,194.00 | 228,778.26 |
| Rewardforscienceandtechnology | 150,000.00 | 500,000.00 |
| Subsidyforpublicrentalhousing | 48,231.48 | 48,231.48 |
| Rewardorfundingforsupportinghigh-qualitydevelopment | 10,000.00 | 12,000,000.00 |
| Designreward | 10,000.00 | 127,000.00 |
| Exportcreditinsurancesubsidies | 53,200.00 | |
| Subsidyforintellectualpropertyrights | 50,000.00 | |
| Total | 45,126,894.28 | 49,142,717.20 |
53.Gainonchangesinfairvalue
Unit:RMB
| Sources | Reportingperiod | Sameperiodoflastyear |
| Tradingfinancialassets | -22,511,823.37 | 170,253,095.79 |
| Ofwhich:Incomefromchangesinfairvaluegeneratedbyderivativefinancialinstruments | -20,958,877.30 | 22,258,450.00 |
| Tradingfinancialliabilities | -42,508,901.77 | -1,060,370.87 |
| Total | -65,020,725.14 | 169,192,724.92 |
54.Investmentincome
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Long-termequityinvestmentincomeaccountedbyequitymethod | -9,556,170.35 | 28,049,040.53 |
| Investmentincomefromholdingofheld-for-tradingfinancialasset | 10,537,021.78 | 2,869,023.84 |
| Investmentincomefromdisposalofheld-for-tradingfinancialasset | 38,383,757.03 | -17,183,991.06 |
| Total | 39,364,608.46 | 13,734,073.31 |
55.Creditimpairmentloss
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Lossonuncollectiblenotesreceivable | 6,394.34 | |
| Lossonuncollectibleaccountsreceivable | -1,998,736.62 | -17,054,611.68 |
| Lossonuncollectibleotherreceivables | -1,278,336.84 | -2,584,146.40 |
| Impairmentlossesondividendreceivable | 977,015.71 | 1,498,035.63 |
| Total | -2,300,057.75 | -18,134,328.11 |
56.Assetimpairmentloss
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| I.Inventoryfallingpricelossandimpairmentprovisionforcontractperformancecosts | -88,745,330.21 | -176,034,078.18 |
| IV.Impairmentlossonfixedassets | -17,131,456.31 | -10,271,885.18 |
| Total | -105,876,786.52 | -186,305,963.36 |
57.Assetdisposalincome
Unit:RMB
| Sources | Reportingperiod | Sameperiodoflastyear |
| Fixedassetdisposalincome("-"forloss) | -9,123,336.47 | 912,625.90 |
58.Non-operatingincome
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
| Claimincome | 4,451,354.70 | 5,768,083.06 | 4,451,354.70 |
| Gainsondamageandscrapofnon-currentassets | |||
| Other | 1,250,000.00 | 1,250,000.00 | |
| Total | 3,646,341.49 | 2,288,465.67 | 3,646,341.49 |
59.Non-operatingexpense
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
| Donations | 1,054,579.52 | 3,002,742.26 | 1,054,579.52 |
| Lossesfromdamageandscrapofnon-currentassets | 1,868,432.90 | 1,140,993.34 | 1,868,432.90 |
| Other | 2,223,669.57 | 6,864,199.86 | 2,223,669.57 |
| Total | 5,146,681.99 | 11,007,935.46 | 5,146,681.99 |
60.Incometaxexpense
(1)Listofincometaxexpense
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Currentincometaxexpense | 40,870,126.23 | 62,770,917.90 |
| Deferredincometaxexpense | -29,120.86 | 42,852,142.91 |
| Total | 40,841,005.37 | 105,623,060.81 |
(2)Adjustmentprocessofaccountingprofitandincometaxexpense
Unit:RMB
| Item | Reportingperiod |
| Profitbeforetaxation | 437,193,442.99 |
| Currentincometaxexpenseaccountedatstatutory/applicabletaxrate | 65,579,016.45 |
| Influenceofapplyingdifferenttaxratesbysubsidiaries | 23,428,347.10 |
| Influenceofincometaxbeforeadjustment | -3,002,523.22 |
| Influenceofnon-taxableincome | -40,122,700.94 |
| Influenceofnotdeductablecosts,expensesandlosses | 4,778,853.66 |
| Influenceofutilizingdeductablelossesofunrecognizeddeferredincometaxassetsfromprioryears | -911,104.31 |
| Effectofdeductibletemporarydifferencesordeductiblelossesondeferredincometaxassetsnotrecognizedintheperiod | 15,964,538.16 |
| Effectofchangesintaxratesonthebalanceofdeferredincometaxesatthebeginningoftheperiod | -6,749.94 |
| InfluenceofadditionaldeductionofR&Dexpenses(filledinwith"-") | -24,790,004.66 |
| Influenceofotherexpensededuction(filledinwith"-") | -76,666.93 |
| Incometaxexpense | 40,841,005.37 |
61.Cashflowstatement
(1)CashrelatedtooperatingactivitiesCashgeneratedfromotheroperatingactivities
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Governmentsubsidy | 37,448,096.51 | 20,954,995.78 |
| Claimincome | 40,162,446.43 | 4,139,336.63 |
| Refundofprepaidincometax | 18,522,628.85 | |
| Recoveryofemployeeborrowings,pettycashanddeposit | 11,200,463.32 | 17,611,761.21 |
| Collectionforemployees | 7,302,950.37 | 6,075,612.73 |
| Others | 729,876.18 | 1,425,970.41 |
| Total | 115,366,461.66 | 50,207,676.76 |
Cashusedinotheroperatingactivities
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Businesstravelcharges | 43,118,560.30 | 35,421,625.76 |
| Insurance | 4,041,804.87 | 5,836,194.04 |
| Auditadvisoryannouncementfee | 5,707,687.46 | 5,987,087.33 |
| Decoration&repairexpenses | 4,645,997.08 | 4,600,193.71 |
| Donation | 1,054,579.52 | 2,669,896.97 |
| Paymentofemployeeborrowings,pettycashanddeposit | 10,900,343.11 | 6,835,985.20 |
| Agencyservicefee | 21,262,143.20 | 17,283,324.08 |
| Others | 67,532,357.50 | 59,557,150.73 |
| Total | 158,263,473.04 | 138,191,457.82 |
(2)CashrelatedtoinvestingactivitiesCashgeneratedfromotherinvestingactivities
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Interestincome | 52,875,557.97 | 46,470,970.15 |
| Incomefromforwardforeignexchange | 16,121,450.00 | 13,555,720.28 |
| CashdepositofL/Cforpurchasingequipment | 593,035.98 | |
| Resumptionofforwardsettlementdeposit | 1,100,000.00 | |
| Timedepositmaturity | 84,335,748.58 | 27,493,598.92 |
| Total | 153,332,756.55 | 89,213,325.33 |
Cashgeneratedfromimportantinvestingactivities
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Governmentbondreverserepo | 8,566,561,000.00 | |
| Structuraldeposits | 777,500,000.00 | |
| Wealthmanagementproducts | 90,000,000.00 | 120,000,000.00 |
| Total | 9,434,061,000.00 | 120,000,000.00 |
Cashusedinotherinvestingactivities
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepreviousperiod |
| Forwardsettlementexchangeloss | 5,140,000.00 | 31,709,481.57 |
| Termdeposits | 33,470,284.27 | 34,335,748.58 |
| PaymentofdepositfortheL/Cofequipmentpurchase | 813,117.05 | |
| Depositforrecognisance | 86,463,622.94 | 51,418,261.88 |
| Fundmanagementandcustodianfees | 384,716.45 | |
| Total | 125,073,907.21 | 118,661,325.53 |
Significantcashpaidrelatedtoinvestingactivities
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepreviousperiod |
| Governmentbondreverserepo | 8,617,522,000.00 | |
| Structuraldeposits | 927,500,000.00 | |
| Wealthmanagementproducts | 210,000,000.00 | |
| Total | 9,545,022,000.00 | 210,000,000.00 |
(3)CashRelatedtoFinancingActivities
CashGeneratedfromOtherFinancingActivities
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepreviousperiod |
| Others | 98,800.40 | |
| Total | 98,800.40 |
Cashusedinotherfinancingactivities
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Repaymentofleaseliabilitiesandprepaidrent | 18,746,507.86 | 18,808,301.14 |
| Timedepositcertificatespledged | ||
| RepurchaseofB-shares | 172,397,831.66 | 88,518,318.69 |
| Total | 191,144,339.52 | 107,326,619.83 |
Changesinliabilitiesarisingfromfinancingactivities?Applicable□Notapplicable
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance | ||
| Cashfluctuations | Non-cashfluctuations | Cashfluctuations | Non-cashfluctuations | |||
| Short-termloan | 518,946,415.96 | 1,025,659,608.53 | 26,306,004.60 | 969,094,904.70 | -21,112,352.12 | 580,704,772.27 |
| Long-termloans | 487,231,096.24 | 263,965,597.90 | 14,511,765.07 | 416,785,484.81 | 348,922,974.40 | |
| Bondspayable | 1,438,162,231.27 | 52,411,374.53 | 13,998,535.01 | -3,000.00 | 1,476,572,070.79 | |
| Leaseliabilities | 105,623,141.18 | 6,980,783.58 | 18,746,507.86 | 93,857,416.90 | ||
| Total | 2,549,962,884.65 | 1,289,625,206.43 | 100,209,927.78 | 1,418,625,432.38 | -21,115,352.12 | 2,500,057,234.36 |
62.Supplementalinformationforcashflowstatement
(1)Supplementalinformationforcashflowstatement
Unit:RMB
| Supplementalinformation | Amountduringthecurrentperiod | Sameperiodoflastyear |
| 1.Reconciliationofnetprofittonetcashflowsgeneratedfromoperatingactivities | ||
| NetProfit | 396,352,437.62 | 973,762,362.54 |
| Add:Provisionforimpairmentofassets | 108,176,844.27 | 204,440,291.47 |
| Depreciationoffixedassets,oil-gasassets,andproductivebiologicalassets | 464,547,764.15 | 452,490,037.00 |
| Depreciationofright-of-useassets | 27,017,455.52 | 20,019,266.79 |
| Amortizationofintangibleassets | 10,577,354.94 | 10,743,417.28 |
| Amortizationoflong-termprepaidexpenses | 3,990,981.43 | 3,477,274.40 |
| Lossesfromdisposaloffixedassets,intangibleassetsandotherlong-livedassets(gains:negative) | 9,123,336.47 | -912,625.90 |
| Lossesfromscrapoffixedassets(gains:negative) | 618,432.90 | 1,140,993.34 |
| Lossesfromchangesinfairvalue(gainsrepresentedby"-") | 65,020,725.14 | -169,192,724.92 |
| Financecosts(gains:negative) | -3,920,412.41 | -164,912,714.11 |
| Investmentloss(gainsrepresentedby"-") | -39,364,608.46 | -13,734,073.31 |
| Decreaseindeferredincometaxassets(gains:negative) | -3,964,485.10 | -15,819,979.75 |
| Increaseindeferredincometaxliabilities("-"meansdecrease) | 3,935,364.24 | 58,672,122.66 |
| Decreaseininventory(gains:negative) | -15,594,018.10 | 159,794,066.40 |
| Decreaseinaccountsreceivablegeneratedfromoperatingactivities(gainsrepresentedby"-") | -38,266,103.45 | -31,919,160.89 |
| Increaseinaccountspayableusedinoperatingactivities(decreaserepresentedby"-") | -133,386,531.74 | -65,737,778.74 |
| Others | ||
| Netcashflowfromoperatingactivities | 854,864,537.42 | 1,422,310,774.26 |
| 2.Significantinvestingandfinancingactivitieswithoutinvolvementofcashreceiptsandpayments | ||
| Conversionofdebttocapital | ||
| Convertiblecorporatebondsmaturedwithinoneyear | ||
| Fixedassetunderfinancelease | ||
| 3.Netincrease/decreaseofcashandcashequivalent: | ||
| Closingbalanceofcash | 1,353,615,305.93 | 1,822,897,270.16 |
| Less:Openingbalanceofcash | 1,822,897,270.16 | 1,970,006,884.89 |
| Plus:Closingbalanceofcashequivalents | ||
| Less:Openingbalanceofcashequivalents | ||
| Netincreaseincashandcashequivalents | -469,281,964.23 | -147,109,614.73 |
(2)Cashandcashequivalents
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| I.Cash | 1,353,615,305.93 | 1,822,897,270.16 |
| Including:Cashonhand | 2,633,018.72 | 2,360,089.79 |
| Bankdepositsondemand | 1,079,820,776.67 | 1,810,590,630.08 |
| Othermonetaryassetsondemand | 271,161,510.54 | 9,946,550.29 |
| III.Endingbalanceofcashandcashequivalents | 1,353,615,305.93 | 1,822,897,270.16 |
(3)Monetaryassetsnotclassifiedascashandcashequivalents
Unit:RMB
| Item | Amountduringthecurrentperiod | Previousperiod | Reasonfornotclassifyingtheitemascashandcashequivalents |
| Bankdeposits--timedepositsofmorethanthreemonthsandlessthanoneyear | 184,470,284.27 | 234,335,748.58 | TheCompanywillholdtimedepositstomaturity,notforthepurposeofmeetingshort-termcashneedsforexternalpayments. |
| Othermonetaryfunds–deposits,etc. | 4,024,123.14 | 1,328,577.85 | Restrictiononuse |
| Bankdeposits--interestreceivable | 16,142,334.69 | 9,206,657.38 | Interestsreceivable |
| Total | 204,636,742.10 | 244,870,983.81 |
63.Foreigncurrencymonetaryitems
(1)Foreigncurrencymonetaryitems
Unit:RMB
| Item | Closingforeigncurrencybalance | Exchangerate | EndingbalanceconvertedtoRMB |
| Monetarycapital | |||
| Ofwhich:USD | 85,065,029.96 | 7.0827 | 602,490,087.69 |
| EUR | 439,918.26 | 7.8592 | 3,457,405.59 |
| HKD | 23,446,306.08 | 0.9062 | 21,247,042.57 |
| JPY | 22,373,205.00 | 0.0502 | 1,123,134.89 |
| GBP | 57.18 | 9.0411 | 516.97 |
| CHF | 16.44 | 8.4184 | 138.40 |
| Dong | 207,595,636,181.40 | 0.0003 | 60,636,723.13 |
| MMK | 780,934,830.92 | 0.0037 | 2,922,738.65 |
| Riel | 606,878,911.00 | 0.0002 | 132,664.45 |
| Accountsreceivable |
| Ofwhich:USD | 85,886,215.38 | 7.0827 | 608,306,297.66 |
| EUR | 39,766.01 | 7.8592 | 312,529.03 |
| HKD | |||
| Dong | 8,763,599,481.00 | 0.0003 | 2,559,764.57 |
| Otherreceivables: | |||
| Ofwhich:USD | 1,205,390.66 | 7.0827 | 8,537,420.41 |
| EUR | 12,500.00 | 7.8592 | 98,240.00 |
| JPY | 2,295,040.00 | 0.0502 | 115,211.01 |
| Dong | 1,091,424,231.08 | 0.0003 | 318,794.70 |
| MMK | 2,000,000.00 | 0.0037 | 7,485.23 |
| Accountspayable: | |||
| Ofwhich:USD | 12,437,691.67 | 7.0827 | 88,092,438.77 |
| JPY | 49,447,531.90 | 0.0502 | 2,482,266.10 |
| EUR | 196,402.00 | 7.8592 | 1,543,562.60 |
| Dong | 28,486,049,981.61 | 0.0003 | 8,320,505.95 |
| MMK | 60,335,790.00 | 0.0037 | 225,813.65 |
| Otherpayables: | |||
| Ofwhich:USD | 4,048.80 | 7.0827 | 28,676.43 |
| Dong | 1,038,335,423.00 | 0.0003 | 303,287.96 |
| MMK | 1,030,000.00 | 0.0037 | 3,854.89 |
| Short-termborrowings: | |||
| Ofwhich:USD | 75,028,363.07 | 7.0827 | 531,403,387.12 |
| Dong | 156,702,389,907.00 | 0.0003 | 45,771,286.94 |
| Long-termborrowings | |||
| Ofwhich:USD | |||
| EUR | |||
| HKD |
(2)Notestooverseasentitiesincluding:forsignificantoverseaentities,mainoperatingplace,recordingcurrencyandselectionbasisshallbedisclosed;iftherearechangesinrecordingcurrency,relevantreasonsshallbedisclosed.
?Applicable□NotapplicableTheoperatingplacesoftheCompany'ssubsidiarieswereHongKong,Burma,America,Vietnam,SingaporeandCambodia,andtherecordingcurrencywasHKDforHongKongandUSDforotheroverseascompanies.
64.Leases
(1)TheCompanyWasLessee:
?Applicable□NotapplicableVariableleasepaymentsthatarenotcoveredinthemeasurementoftheleaseliabilities
□Applicable?NotapplicableSimplifiedshort-termleaseorleaseexpenseforlow-valueassets?Applicable□Notapplicable
| Item | Amountforthecurrentperiod |
| Expenserelatingtoshort-termleases | 316,024.16 |
| Low-valueleaseexpenses | |
| Variableleasepaymentsthatarenotcoveredinthemeasurementoftheleaseliabilities | |
| Total | 316,024.16 |
(2)TheCompanyWasLessor:
OperatingleaseswiththeCompanyaslessor?Applicable□Notapplicable
Unit:RMB
| Item | Rentalincome | Ofwhich:Incomerelatedtovariableleasepaymentsnotincludedinleasereceipts |
| Rentalincome | 3,696,885.97 | 0.00 |
| Total | 3,696,885.97 | 0.00 |
FinanceleaseswiththeCompanyaslessor
□Applicable?NotapplicableUndiscountedleasereceiptsforeachofthenextfiveyears?Applicable□Notapplicable
Unit:RMB
| Item | Undiscountedleasereceiptsperyear | |
| Investmentsattheendoftheperiod | Investmentsatthebeginningoftheperiod | |
| Thefirstyear | 1,215,336.80 | 1,814,118.30 |
| Thesecondyear | 310,390.00 | 1,215,336.80 |
| Thethirdyear | 310,390.00 | |
(3)RecognitionofGainorLossonSalesunderFinanceLeaseswiththeCompanyasaManufacturerorDistributor
□Applicable?Notapplicable
VIII.ResearchandDevelopmentExpenditure
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepreviousperiod |
| Laborcost | 127,993,607.00 | 148,381,734.76 |
| Materialexpense | 79,121,927.42 | 94,170,080.52 |
| Depreciationcharge | 17,240,537.12 | 18,475,905.83 |
| Others | 15,419,271.64 | 15,397,091.15 |
| Total | 239,775,343.18 | 276,424,812.26 |
| Ofwhich:Expensedresearchanddevelopmentexpenditure | 239,775,343.18 | 276,424,812.26 |
| Capitalizedresearchanddevelopmentexpenditure |
IX.ChangeofConsolidationScope
1.OtherreasonsforchangesofconsolidationscopeNotesofotherchangesinthecombinationscope(e.g.,newsubsidiaries,liquidationofsubsidiaries,etc.)andrelevantsituations:
TherewerenochangesintheconsolidationscopeoftheCompanyduringtheyear.
X.EquityinOtherEntities
1.EquityinSubsidiary
(1)CompositionsoftheGroup
Unit:RMB
| Name | Registeredcapital | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | ||||||
| LuThai(HongKong)TextileCo.,Ltd.(hereinafterreferredtoas"LuThai(HK)") | 128,771,800.00 | HongKong | HongKong | Wholesaleandretailindustry | 100.00% | Set-up | |
| ShanghaiLuThaiTextileGarmentCo.,Ltd.(hereinafterreferredtoas"ShanghaiLuThai") | 20,000,000.00 | Shanghai | Shanghai | Wholesaleandretailindustry | 100.00% | Set-up | |
| LuFengCompanyLimited(hereinafterreferredtoas"LuFengCompany") | 706,160,000.00 | Zibo | Zibo | Manufacturingindustry | 75.00% | Set-up | |
| ZiboLuqunTextileCo.,Ltd.(hereinafterreferredtoas"LuqunTextile") | 168,220,000.00 | Zibo | Zibo | Manufacturingindustry | 100.00% | Set-up | |
| ZiboXinshengThermalPowerCo.,Ltd.(hereinafterreferredtoas"XinshengThermalPower") | 162,435,600.00 | Zibo | Zibo | Manufacturingindustry | 100.00% | Businesscombinationnotunderthesamecontrol | |
| ShanghaiZhinuoTextileNewMaterialsCo.,Ltd.(hereinafterreferredtoas"ShanghaiZhinuo") | 100,000,000.00 | Shanghai | Shanghai | Technologydevelopment,technicalconsultancyandtransferoftechnologies | 100.00% | Set-up | |
| ShandongLulianNewMaterialsCo.,Ltd.(hereinafterreferredtoas"LulianNewMaterials") | 400,000,000.00 | Zibo | Zibo | Manufacturingindustry | 75.00% | Set-up | |
| ShandongLujiaIMP.&EXP.Co.,Ltd.(hereinafterreferredtoas"LujiaIMP.&EXP.") | 10,000,000.00 | Zibo | Zibo | Importandexporttrade | 100.00% | Set-up | |
| BeijingZhishuManagementConsultingCo.,Ltd.(hereinafterreferredtoas"ZhishuConsulting") | 3,000,000.00 | Beijing | Beijing | Wholesaleandretailindustry | 100.00% | Set-up | |
| LuThaiOccupationalTrainingSchool | 100,000.00 | Zibo | Zibo | Skilltraining | 100.00% | Set-up | |
| ZiboBanyangVillaHotelCo.,Ltd.(hereinafterreferredtoas"BanyangVilla") | 5,000,000.00 | Zibo | Zibo | Cateringservices | 100.00% | Set-up | |
| HainanHuilinInternationalHoldingsCo.,Ltd.("HuilinInternational") | 880,000,000.00 | Wenchang | Wenchang | Modernserviceindustry | 100.00% | Set-up | |
| TPCompany | 398,203,876.00 | Singapore | Singapore | Wholesaletextilesandleather,holdingcompany | 100.00% | Set-up | |
| VanguardApparelCo.,Ltd.(hereinafterreferredtoas"VanguardApparel") | 62,337,887.93 | Burma | Burma | Manufacturingindustry | 100.00% | Set-up | |
| LuThai(USA)TextileCo.,Ltd.(hereinafterreferredtoas | 6,139,710.00 | America | America | Wholesaleandretailindustry | 100.00% | Set-up |
| "LuThai(USA)") | ||||
| YuanhuiDividendNo.2PrivateSecuritiesInvestmentFund("YuanhuiFund") | 100.00% | Subscribe |
Basisofcontrollingsignificantstructuralentitiesincorporatedinthescopeofcombination:
ThestructuralentityincorporatedinthescopeofconsolidationoftheGroupisYuanhuiDividendNo.2PrivateSecuritiesInvestmentFund.TheGroupassessesitsshareofinvestmentholdings,thepoweritenjoysandvariablereturnscomprehensivelyandincludesthestructuralentitythattheCompanyhascontrolpowerintotheconsolidationscope.
(2)Significantnon-wholly-ownedsubsidiary
Unit:RMB
| Name | Shareholdingproportionofnon-controllinginterests | Theprofitorlossattributabletothenon-controllinginterests | Declaringdividendsdistributedtonon-controllinginterests | Balanceofnon-controllinginterestsattheperiod-end |
| LufengCompanyLimited | 15,654,746.93 | 360,911,320.33 | 15,654,746.93 | |
| LulianNewMaterials | -22,746,563.73 | 25,749,771.57 | -22,746,563.73 |
(3)Themainfinancialinformationofsignificantnotwholly-ownedsubsidiary
Unit:RMB
| Name | Endingbalance | Beginningbalance | ||||||||||
| Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliability | Totalliabilities | Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliability | Totalliabilities | |
| LufengCompanyLimited | 925,170,025.16 | 666,351,350.97 | 1,591,521,376.13 | 89,644,274.83 | 53,272,778.47 | 142,917,053.30 | 977,751,666.75 | 736,108,963.24 | 1,713,860,629.99 | 264,894,436.41 | 57,773,566.53 | 322,668,002.94 |
| LulianNewMaterials | 83,522,389.78 | 568,103,983.74 | 651,626,373.52 | 545,641,487.47 | 3,082,529.50 | 548,724,016.97 | 194,594,378.81 | 590,738,673.35 | 785,333,052.16 | 588,315,533.14 | 3,331,546.24 | 591,647,079.38 |
Unit:RMB
| Name | Reportingperiod | Sameperiodoflastyear | ||||||
| Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | |
| LufengCompanyLimited | 1,375,045,198.83 | 57,390,726.91 | 57,411,695.78 | -79,614,020.15 | 1,813,342,589.95 | 141,742,849.86 | 141,705,398.12 | 377,784,772.57 |
| LulianNew | 165,702,046.24 | - | - | - | 90,195,368.38 | - | - | - |
| Materials | 90,776,733.25 | 90,783,616.23 | 54,812,568.23 | 95,189,161.13 | 95,189,161.13 | 36,509,858.74 |
2.Equityinjointventuresorassociatedenterprises
(1)Significantjointventuresorassociatedenterprises
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Accountingtreatmentoftheinvestmenttojointventureorassociatedenterprise | |
| Directly | Indirectly | |||||
| I.Jointventures | ||||||
| II.Associatedenterprises | ||||||
| HaohongInvestment | Ningbo | Ningbo | Equityinvestment | 33.33% | Equitymethod | |
| HaoyingInvestment | Ningbo | Ningbo | Equityinvestment | 47.62% | Equitymethod | |
(2)Mainfinancialinformationofsignificantassociatedenterprises
Unit:RMB
| Endingbalance/reportingperiod | Beginningbalance/thesameperiodoflastyear | |||
| HaohongInvestment | HaoyingInvestment | HaohongInvestment | HaoyingInvestment | |
| Currentassets | 148,022,853.32 | 210,335,493.18 | 184,892,005.99 | 278,997,681.82 |
| Non-currentassets | ||||
| Totalassets | 148,022,853.32 | 210,335,493.18 | 184,892,005.99 | 278,997,681.82 |
| Currentliabilities | 3,253,866.05 | 3,255,230.09 | ||
| Non-currentliability | ||||
| Totalliabilities | 3,253,866.05 | 3,255,230.09 | ||
| Netassets | 144,768,987.27 | 210,335,493.18 | 181,636,775.90 | 278,997,681.82 |
| Equityofnon-controllinginterests | ||||
| EquityattributabletoshareholdersoftheCompanyastheparent | 144,768,987.27 | 210,335,493.18 | 181,636,775.90 | 278,997,681.82 |
| Netassetssharescalculatedattheshareholdingproportion | 48,257,699.71 | 100,161,761.85 | 60,547,749.28 | 132,856,975.88 |
| Adjusteditems | ||||
| -Goodwill | ||||
| -Unrealizedprofitofinternaltransactions | ||||
| -Others | -4,881,981.79 | -9,236,099.47 | ||
| Carryingvalueofinvestmenttoassociatedenterprises | 48,257,699.71 | 95,279,780.06 | 60,547,749.28 | 123,620,876.41 |
| Fairvalueofequityinvestmentsinassociatedenterpriseswithpubliclyquotedprices | ||||
| OperatingRevenue | ||||
| Netprofit | 23,601,152.08 | -45,732,975.48 | -21,331,765.29 | 92,290,313.66 |
| Netprofitfromdiscontinuedoperations | ||||
| Othercomprehensiveincome | 23,601,152.08 | -45,732,975.48 | -21,331,765.29 | 92,290,313.66 |
| Totalcomprehensiveincome | ||||
| Dividendsreceivedfromtheassociatesinthecurrentperiod |
XI.GovernmentGrants
1.GovernmentGrantsIncludedinDeferredIncome
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance | Reasonforformation |
| Governmentgrants | 159,615,037.36 | 16,710,000.00 | 24,556,089.44 | 151,768,947.92 | Governmentgrants |
| Total | 159,615,037.36 | 16,710,000.00 | 24,556,089.44 | 151,768,947.92 |
(1)Governmentgrantsincludedindeferredincomeandsubsequentlymeasuredusingthegrossmethod
| Item | Category | Beginningbalance | Amountofnewlysubsidyforthecurrentperiod | Amountscarriedforwardtoprofitorlossforthecurrentperiod | Otherchanges | Endingbalance | Listeditemscarriedforwardtoprofitorlossforthecurrentperiod | Relatedtoassets/income |
| Landsubsidy | Financialappropriation | 50,704,834.25 | 1,354,251.84 | 49,350,582.41 | Othergains | Relatedtoassets | ||
| Subsidiesforequipment | Financialappropriation | 98,991,448.82 | 5,871,101.54 | 93,120,347.28 | Othergains | Relatedtoassets | ||
| Overseasinvestmentsubsidies | Financialappropriation | 1,927,400.00 | 1,927,400.00 | Othergains | Relatedtoassets | |||
| R&Dsubsidies | Financialappropriation | 6,946,338.08 | 4,710,000.00 | 3,355,104.58 | 8,301,233.50 | Othergains | Relatedtoincome |
| Subsidyforpublicrentalhousing | Financialappropriation | 1,045,016.21 | 48,231.48 | 996,784.73 | Othergains | Relatedtoassets | ||
| Subsidiesforthepriceofheatingcoal | Financialappropriation | 12,000,000.00 | 12,000,000.00 | Othergains | Relatedtoincome | |||
| Total | 159,615,037.36 | 16,710,000.00 | 24,556,089.44 | 151,768,947.92 |
2.GovernmentGrantsIncludedinCurrentProfitorLossUsingtheGrossMethod
| Item | Category | Amountsincludedinprofitorlossinthepriorperiod | Amountsincludedinprofitorlossforthecurrentperiod | Listeditemsincludedinprofitorloss | Relatedtoassets/income |
| Subsidyforenvironmentalprotection | Financialappropriation | 36,800.00 | 5,283,018.87 | Othergains | Relatedtoincome |
| Humanresourcessubsidy | Financialappropriation | 1,856,682.75 | 4,382,702.42 | Othergains | Relatedtoincome |
| Taxrelief | Financialappropriation | 385,950.34 | 4,209,600.05 | Othergains | Relatedtoincome |
| Specialfundsfortheconversionofnewandoldindustrialkineticenergy | Financialappropriation | 3,500,000.00 | Othergains | Relatedtoincome | |
| Financingsubsidy | Financialappropriation | 1,554,100.00 | 952,000.00 | Othergains | Relatedtoincome |
| Specialfundforforeigntradeandcommerceandcirculation | Financialappropriation | 162,000.00 | 826,389.50 | Othergains | Relatedtoincome |
| Strengthentheenterprisegovernmentsubsidy | Financialappropriation | 136,600.00 | 768,900.00 | Othergains | Relatedtoincome |
| Rebateofsurchargesforwithholdingtaxes | Financialappropriation | 228,778.26 | 268,194.00 | Othergains | Relatedtoincome |
| R&Dsubsidy | Financialappropriation | 210,000.00 | Othergains | Relatedtoincome | |
| Rewardforscienceandtechnology | Financialappropriation | 500,000.00 | 150,000.00 | Othergains | Relatedtoincome |
| Rewardforsupportinghigh-qualitydevelopment | Financialappropriation | 12,000,000.00 | 10,000.00 | Othergains | Relatedtoincome |
| Designreward | Financialappropriation | 127,000.00 | 10,000.00 | Othergains | Relatedtoincome |
| Creditinsurancesubsidy | Financialappropriation | 53,200.00 | Othergains | Relatedtoincome | |
| Subsidyforintellectualpropertyrights | Financialappropriation | 50,000.00 | Othergains | Relatedtoincome | |
| Total | 17,091,111.35 | 20,570,804.84 |
3.GovernmentGrantsUsingtheNetMethodtoReduceRelatedCosts
| Item | Category | Amountsofoffsettingrelatedcostsinthepreviousperiod | Amountsofoffsettingrelatedcostsinthecurrentperiod | Listeditemsofoffsettingrelatedcosts | Relatedtoassets/income |
| 2021Centralforeigntradeandeconomicdevelopmentfund | Financialdiscount | 1,110,000.00 | Financialexpenses | Relatedtoincome | |
| Financialdiscountfundsforloans | Financialdiscount | 45,375.00 | 167,291.67 | Financialexpenses | Relatedtoincome |
| Total | 1,155,375.00 | 167,291.67 |
XII.RisksAssociatedwithFinancialInstruments
1.VariousTypesofRisksArisingfromFinancialInstrumentsTheCompany'smajorfinancialinstrumentsincludemonetarycapital,notesreceivable,accountsreceivable,accountsreceivablefinancing,otherreceivables,tradingfinancialassets,othernon-currentfinancialassets,othernon-currentassets-timedepositsoveroneyear,accountspayable,otherpayables,short-termborrowings,currentportionofnon-currentliabilities,othercurrentliabilities-endorsedoutstandingnotes,long-termborrowings,bondspayable,leaseliabilities,andotherequityinstruments.DetailsofvariousfinancialinstrumentsaredisclosedinrelevantNotes.Risksrelatedtothesefinancialinstruments,andriskmanagementpoliciestheCompanyhasadoptedtoreducetheserisksaredescribedasfollows.TheCompanymanagementmanagesandmonitorstheriskexposuretoensuretheaboverisksarecontrolledinalimitedscope.
1.RiskmanagementobjectivesandpoliciesTheCompanyhasconductedtheriskmanagementtoachieveanappropriatebalancebetweentheriskandtheincomeandtominimizetheadverseinfluenceoffinancialrisksontheCompany’sfinancialperformance.Accordingtosuchriskmanagementobjective,theCompanyhasformulatedcorrespondingriskmanagementpolicytorecognizeandanalyzepossiblerisksencounteredbytheCompany,settheappropriateacceptablerisklevelanddesignedcorrespondinginternalcontrolprocedurestomonitortheCompany’srisklevel.Meanwhile,theCompanywillregularlyreviewtheseriskmanagementpoliciesandrelevantinternalcontrolsystemsoastocaterforthemarketorrespondtoanychangeintheCompany’sbusinessoperations.Accordingly,theCompany’sinternalauditdepartmentwillalsoregularlyorrandomlycheckwhethertheinternalcontrolsystemisimplementedinconformitywithrelevantriskmanagementpolicies.ThemajorriskscausedbyfinancialinstrumentsoftheCompanyarecreditrisk,liquidityriskandmarketrisk(includingforeignexchangerisk,interestrateriskandcommoditypricerisk).TheBoardofDirectorsshallberesponsibleforplanningandestablishingtheriskmanagementframeworkfortheCompany,determiningtheCompany’sriskmanagementpoliciesandrelevantguidelinesandmonitoringtheimplementationofvariousriskmanagementmeasures.However,theCompanyhasestablishedcorrespondingriskmanagementpoliciestorecognizeandanalyzepossiblerisksencounteredbytheCompany.Besides,variousrisksarespecifiedintheseriskmanagementpolicies,includingthecreditrisk,theliquidityriskandthemarketriskmanagementetc.Onaregularbasis,theCompanywillevaluatethespecificmarketingenvironmentandvariouschangesintheCompany’sbusinessoperationssoastodeterminewhetheranyriskmanagementpolicyandsystemneedbeupdated.
(1)CreditriskCreditRiskmeansthattheCompanywillsufferanyfinanciallossesduetothecounterparty’sfailureinfulfillingthecontractobligations.TheCompanyshallmanagethecreditriskbasedonthespecificGroupClassification,andthecreditriskmainlyarisesfrombankdeposit,notesreceivable,accountsreceivable,otherreceivablesandinvestmentindebtobligationsetc.TheGroup’sbankdepositsaremainlysavedinstate-ownedbanksandotherlargeandmedium-sizedbanks.TheGroup’sbankdepositsareexpectednottosufferanymajorcreditrisks.Fornotesreceivable,accountsreceivable,andotheraccountsreceivable,theCompanyhasestablishedrelevantpoliciestocontrolthecreditriskexposure.Accordingtotheclient’sfinancialstatus,creditrecordandotherfactors(includingthecurrentmarketcondition),theCompanywillevaluatetheclient’screditqualificationandsetcorrespondingcreditperiod.TheCompanyregularlymonitorsthecreditrecordsofcustomers.Forcustomerswithbadcreditrecords,theCompanyadoptedcorrespondingmethods,suchaswrittenpressingforpayment,shorteningcreditperiod,andcancelingcreditperiod,soastoensuretheCompany'soverallcreditriskiscontrollable.ThehugestcreditriskexposurebornebytheCompanyisthebookvalueofeachfinancialassetreflectedinthebalancesheet.Intermsofaccountsreceivable,thetop5customersinaccountsreceivablewereaccountedfor24.80%ofthetotalamountofaccountsreceivableoftheCompany(21.75%in2022).Asforotherreceivables,thetop5oftheendingbalanceaccordingtothearrearspartywasaccountedfor69.38%ofthetotalamountofotherreceivablesoftheCompany(85.42%in2022).InvestmentindebtobligationsTheCompanygenerallylimitsitsexposuretocreditriskbyinvestingonlyinsecuritiesforwhichthereisanactivemarket(otherthanlong-termstrategicinvestments)andforwhichthecounterparthasahighcreditrating.TheGroupsupervisedthechangesofcreditriskthroughtrackingthepublishedexternalcreditratings.Inordertomakesurewhetherthecreditratingwasthelatest,andwhetherthecreditriskhasincreasedobviouslyofevaluationreportdatebutnotbeenreflectedinthepublishedexternalratings,theCompanyhassupplementedthroughexaminingthechangesofbondyieldandtheavailablenewsandsupervisioninformation.Onthebalancesheetdate,thecarryingvalueofinvestmentindebtobligationsoftheCompanyarelistedasfollowsaccordingtoreportitems.
| Endingbalance | Closingbalanceoflastyear | |
| TradingFinancialAssets | 203,706,725.51 | 90,644,869.48 |
| Total | 203,706,725.51 | 90,644,869.48 |
(2)Liquidityrisk
LiquidityRiskreferstotheriskofcapitalshortageencounteredbytheCompanyduringthecashpaymentorthesettlementofotherfinancialassets.Duringthemanagementofliquidityrisk,theCompanyshallreserveandmonitorcorrespondingcashandcashequivalentdeemedsufficientbythemanagementsoastomeettheCompany’soperationalrequirementsandmitigatetheimpactcausedbythecashflowfluctuation.TheGroup’smanagementwillmonitortheuseofbankloansandguaranteethefulfillmentofloanagreement.Meanwhile,majorfinancialinstitutionsshallpromisetoprovidetheGroupwithsufficientreservefundsinordertosatisfytheshort-termandlong-termfunddemand.TheGroupshallraiseitsworkingcapitalbasedonthecapitalgeneratedfrombusinessoperationsandbankloans.Attheendoftheperiod,theanalysisoffinancialliabilitiesandoff-balancesheetguaranteeitemsheldbytheCompanybasedonthematurityperiodoftheundiscountedremainingcontractualcashflowsisasfollows:
| Item | Endingbalance | |||
| Withinoneyear | Withinonetofiveyears | Over5years | Total | |
| Financialliabilities: | ||||
| Short-termloan | 586,472,143.14 | 586,472,143.14 | ||
| Accountspayable | 275,502,915.05 | 275,502,915.05 | ||
| Otherpayables | 47,549,373.52 | 47,549,373.52 | ||
| Long-termloans | 96,845,778.69 | 269,810,195.43 | 366,655,974.12 | |
| Bondspayable | 1,399,849,400.00 | 1,399,849,400.00 | ||
| Leaseliabilities | 11,078,329.78 | 56,966,108.73 | 55,230,630.61 | 123,275,069.12 |
| Total | 1,017,448,540.18 | 1,726,625,704.16 | 55,230,630.61 | 2,799,304,874.95 |
Attheendofthepreviousyear,theanalysisoffinancialliabilitiesandoff-balancesheetguaranteeitemsheldbytheCompanybasedonthematurityperiodoftheundiscountedremainingcontractualcashflowsisasfollows:
| Item | Closingbalanceoflastyear | |||
| Withinoneyear | Withinonetofiveyears | Over5years | Total | |
| Financialliabilities: | ||||
| Short-termloan | 521,553,880.91 | 521,553,880.91 | ||
| Notespayable | 55,450,000.00 | 55,450,000.00 | ||
| Accountspayable | 246,588,463.74 | 246,588,463.74 | ||
| Otherpayables | 83,357,296.71 | 83,357,296.71 | ||
| Long-termloans | 313,817,516.92 | 187,722,213.76 | 501,539,730.68 | |
| Bondspayable | 1,399,852,400.00 | 1,399,852,400.00 | ||
| Leaseliabilities | 17,690,901.37 | 54,799,929.03 | 66,144,470.85 | 138,635,301.25 |
| Total | 1,238,458,059.65 | 1,642,374,542.79 | 66,144,470.85 | 2,946,977,073.29 |
Theamountsoffinancialliabilitiesdisclosedinthetableaboverepresentundiscountedcontractualcashflowsandmaydifferfromthecarryingamountsinthebalancesheet.
(3)MarketriskThefinancialinstrument’smarketriskreferstothefluctuationriskoffairvalueoffinancialinstrumentorfuturecashflowcausedbythechangesofmarketprice,includingtheinterestraterisk,theexchangerateriskandotherpricerisk.InterestrateriskInterestrateriskreferstotheriskoffluctuationsinthefairvalueorfuturecashflowsoffinancialinstrumentsarisingfromchangesinmarketinterestrates.Theinterestratecanderivefromtherecognizedinterest-bearingfinancialinstrumentsandunrecognizedfinancialinstruments(includingcertainloancommitment).TheGroup’sinterestrateriskmainlyarisesfromthelong-terminterest-bearingdebt,suchasthebankloan.FinancialliabilitiesbasedonthefloatinginterestratewillcausethecashflowinterestraterisktotheCompany,andfinancialliabilitiesbasedonthefixedinterestratethefairvalueinterestraterisk.However,theCompanyhaspaidcloseattentiontheimpactofinterestratefluctuationsontheCompany’sinterestraterisk.Atpresent,theCompanyhasnottakenanyinterestratehedgingmeasures.Theriseofinterestratewillincreasethecostofnewly-addedinterest-bearingdebtsandtheinterestcostoftheCompany’sunsettledinterest-bearingdebtsbasedonthefloatinginterestrate,andcausemajoradverseinfluenceontheCompany’sfinancialperformance.Themanagementwilltimelymakecorrespondingadjustmentaccordingtothelatestmarketsituation,andcorrespondinginterestrateswapwillbearrangedtoreducetheinterestraterisk.Theinterest-bearingfinancialinstrumentsheldbytheCompanyareasfollows(Unit:RMB’0,000):
| Item | AmountofCurrentPeriod | AmountofthePreviousPeriod |
| Fixed-interestfinancialinstruments | ||
| Including:short-termborrowings | 46,535.28 | 49,811.77 |
| Currentportionoflong-termborrowings | 230 | 19,880.00 |
| Long-termborrowings | 6,174.19 | 10,330.00 |
| BondsPayable | 147,657.21 | 143,816.22 |
| Total | 200,596.68 | 223,837.99 |
| Floating-interestfinancialinstruments | ||
| Financialassets | 20,370.67 | 23,952.27 |
| Including:tradingfinancialassets | 20,370.67 | 23,952.27 |
| Financialliabilities | 40,023.31 | 20,540.58 |
| Including:short-termborrowings | 11,535.20 | 2,077.58 |
| Currentportionoflong-termborrowings | 8,663.00 | 10,200.00 |
| Long-termborrowings | 19,825.11 | 8,263.00 |
| Total | 60,393.98 | 44,492.85 |
On31December2023,ifthelendingratecalculatedatfloatinginterestrateupordown100basispointswithothervariablesunchanged,thenetprofitandshareholders’equitywillbedecreasedorincreasedaboutRMB3,479,700(comparedtoRMB1,768,200asoftheendoflastyear).ForfinancialinstrumentsheldatthebalancesheetdatethatexposetheCompanytofairvalueinterestraterisk,theimpactonnetincomeandshareholders'equityinthesensitivityanalysisaboveistheimpactofre-measuringtheabovefinancialinstrumentsatthenewinterestrate,assumingthatthereisachangeininterestratesatthebalancesheetdate.Forfloatingratenon-derivativeinstrumentsheldatthebalancesheetdatethatexposetheCompanytocashflowinterestraterisk,theimpactonnetincomeandshareholders'equityintheabovesensitivityanalysisistheimpactofchangesintheaboveinterestratesoninterestexpenseorincomeestimatedonanannualizedbasis.Thepreviousyear'sanalysiswasbasedonthesameassumptionsandmethodology.ForeignexchangeriskForeignexchangeriskisreferredtothefluctuationriskoffairvalueoffinancialinstrumentsorfuturecashflowsresultedfromthechangeofforeignexchangerate.Theforeignexchangeratewasoriginatedfromthefinancialinstrumentsdenominatedinforeigncurrenciesotherthantherecordingcurrency.TheCompany'srecognisedforeigncurrencyassetsandliabilitiesaswellasfutureforeigncurrencytransactions(thedenominationcurrenciesofforeigncurrencyassetsandliabilitiesandforeigncurrencytransactionsaremainlyUSD,Dong,EUR,andHKD)areexposedtoforeignexchangerisk.On31December2023,theamountofforeigncurrencyfinancialassetsandforeigncurrencyfinancialliabilitiesconvertedtorenminbiisasfollows(Unit:RMB’0,000):
| Item | Foreigncurrencyliabilities | Foreigncurrencyassets | ||
| Endingbalance | Closingbalanceoflastyear | Endingbalance | Closingbalanceoflastyear | |
| USD | 61,952.45 | 16,573.86 | 121,933.38 | 105,905.57 |
| EUR | 154.36 | 108.42 | 386.82 | 2,061.26 |
| JPY | 248.23 | 30.43 | 123.83 | 29.81 |
| HKD | 2,124.70 | 234.03 | ||
| GBP | 0.05 | 0.05 | ||
| CHF | 0.01 | 0.10 | ||
| Dong | 5,439.51 | 4,068.90 | 6,351.53 | 5,883.56 |
| MMK | 22.97 | 20.55 | 292.27 | 72.24 |
| Riel | 13.27 | 21.74 | ||
| Total | 67,817.52 | 20,802.16 | 131,225.86 | 114,208.36 |
TheGrouphaspaidcloseattentiontheimpactofexchangeratefluctuationsontheGroup’sexchangeraterisk.TheCompanyhassignedcontractsoffuturesexchangeforthepurposeoftheaversionofforeignexchangerisk.Asattheendofeachreportingperiod,fortheGroup'smonetarycapital,billsreceivable,accountsreceivable,accountspayable,short-termborrowingsandotherpayablesdenominatedinforeigncurrencies,assuminga10%appreciationordepreciationofRMBagainstforeigncurrencies,whileotherfactorsremainunchanged,theimpactofpossiblereasonablechangesintheCompany'sforeigncurrencyexchangerateagainstRMBontheCompany'sprofitandlossforthecurrentperiodisasfollows(Unit:RMB’0,000):
| Exchangeratefluctuations | Thisyear | Lastyear | ||
| Impactonafter-taxprofit | Impactonshareholders'equity | Impactonafter-taxprofit | Impactonshareholders'equity | |
| 10%appreciationagainstRMB | -5,101.33 | -5,101.33 | -8,224.66 | -8,224.66 |
| 10%depreciationagainstRMB | 5,101.33 | 5,101.33 | 8,224.66 | 8,224.66 |
OtherpricerisksOtherpricerisksaretherisksoffluctuationsduetochangesinmarketpricesotherthanexchangerateriskandinterestraterisk,whetherthesechangesresultfromfactorsrelatingtoasinglefinancialinstrumentoritsissuer,orfromthoserelatingtoallsimilarfinancialinstrumentstradedwithinthemarket.Otherpriceriskscanarisefromchangesincommodityprices,stockmarketindex,equityinstrumentprices,andotherriskvariables.InvestmentsinlistedequityinstrumentsheldbytheCompany,whichareclassifiedastransactionalfinancialassetsaremeasuredatfairvalueatthebalancesheetdate.Asaconsequence,theCompanyisundertakingtheriskofchangesinequitymarkets.TheCompanycloselymonitorstheimpactofpricechangesonthepriceriskoftheCompany'sinvestmentsinequityandsecurities.TheCompanydoesnotcurrentlytakeanystepsforotherpriceriskaversion.Nevertheless,themanagementisliableforsupervisorycontrolonotherpricerisksandshallconsiderreducingthepriceriskofinvestmentsinequityandsecuritiesbyholdingadiversifiedportfolioinvestmentinequityandsecuritieswhenrequired.Withallothervariablesbeingconstant,thepre-taximpactontheCompany'sprofitorlossforthecurrentperiodandothercomprehensiveincomeofa10%changeinthepriceofinvestmentsinequityandsecuritiesfortheyearisasfollows(Unit:
RMB’0,000):
| Item | After-taxprofitsup(down) | Othercomprehensiveincomeup(down) | ||
| AmountofCurrentPeriod | AmountofthePreviousPeriod | AmountofCurrentPeriod | AmountofthePreviousPeriod | |
| Duetoincreaseinthepriceofinvestmentsinequitysecurities | 4,333.58 | 3,373.72 | ||
| Duetoadeclineinthepriceofinvestmentsinequitysecurities | -4,333.58 | -3,373.72 | ||
2.CapitalmanagementTheobjectivesofcapitalmanagementpoliciesoftheCompanyaretoensurethecontinuousoperationoftheCompanysoastoprovidereturntoshareholdersandbenefitotherstakeholders,aswellastoreducecapitalcostbymaintainingtheoptimalcapitalstructure.Inordertomaintainoradjustcapitalstructure,theCompanymightadjustfinancingmethodandthedividendspaidtoshareholders,returncapitaltoshareholders,issuenewsharesandotherequityinstrumentorsellassetstoreducedebts.TheGroupsupervisedthecapitalstructurebasedontheasset-liabilityratio(namelytotalliabilitiesdividetotalassets).On31December2023,theasset-liabilityratiowas28.39%oftheCompany(29.53%on31December2022).
3.Financialassettransfer
(1)Classificationoftransfermethods
| Transfermethods | Natureoffinancialassetstransferred | Amountoffinancialassetstransferred | Derecognition | Basisfordeterminingderecognition |
| Billsendorsement | Receivablesfinancing | 104,758,467.20 | Derecognition | Almostallrisksandremunerationhavebeentransferred. |
| Billsdiscounting | Receivablesfinancing | 47,179,972.31 | Derecognition | Almostallrisksandremunerationhavebeentransferred. |
| Billsendorsement | Notesreceivable | 48,449,554.97 | Notderecognized |
| Billsdiscounting | Notesreceivable | 3,530,098.28 | Notderecognized |
| Lendingsecuritiesonrefinancing | Financialassetheldfortrading | 88,435,500.00 | Notderecognized |
| Total | 292,353,592.76 |
(2)Financialassetsderecognizedduetotransfer
| Item | Transfermethods | Derecognizedamount | Gainsorlossesrelatedtoderecognition |
| Receivablesfinancing | Billsendorsement | 104,758,467.20 | |
| Receivablesfinancing | Billsdiscounting | 47,179,972.31 | -237,740.17 |
| Total | 151,938,439.51 | -237,740.17 |
ThetotalcarryingvalueofthebankacceptancebillsendorsedbytheCompanytothesupplierbutnotdueandbankacceptancebillsdiscountedtothebankbutnotdueamountedtoRMB203,918,092.76,ofwhichtheCompanybelievedthatthenotesreceivablewithacarryingvalueofRMB151,938,439.51(31December2022:RMB470,254,140.70)hadtransferredalmostallrisksandrewardsatthetimeofdiscounting,meetingtheconditionsforderecognitionoffinancialassets.Therefore,therelatednotesreceivablewerederecognised.Themaximumexposuretoriskthatcontinuestobeassociatedwiththesederecognizednotesreceivableisequaltotheundiscountedcashflowsfromtherepurchaseofthenotes,whichisequaltothecarryingvalueofthenotesreceivable.TheCompanydoesnotconsiderthecontinuedinvolvementinthefairvalueofthederecognizednotesreceivabletobematerial.
(3)Amountofassetsandliabilitiesformedduetotransferoffinancialassetsandcontinuousinvolvement
| Item | Assettransfermethods | Amountofassetsformedduetocontinuousinvolvement | Amountofliabilitiesformedduetocontinuousinvolvement |
| Notesreceivable | Billsendorsement | 48,449,554.97 | 48,449,554.97 |
| Notesreceivable | Billsdiscounting | 3,530,098.28 | 3,530,098.28 |
| Financialassetheldfortrading | Lendingsecuritiesonrefinancing | 88,435,500.00 | |
| Total | 140,415,153.25 | 51,979,653.25 |
XIII.DisclosureofFairValue
1.EndingFairValueofAssetsandLiabilitiesatFairValue
Unit:RMB
| Item | Closingfairvalue | |||
| Fairvaluemeasurementitemsatlevel1 | Fairvaluemeasurementitemsatlevel2 | Fairvaluemeasurementitemsatlevel3 | Total | |
| I.Consistentfairvaluemeasurement | -- | -- | -- | -- |
| (I)Tradingfinancialassets | 294,181,265.07 | 429,619,010.32 | 723,800,275.39 | |
| 1.Financialassetsatfairvaluethroughprofitorloss | 294,181,265.07 | 429,619,010.32 | 723,800,275.39 | |
| (1)Investmentindebtinstruments | 51,013,739.17 | 152,692,986.34 | 203,706,725.51 | |
| (2)Equityinvestments | 243,167,525.90 | 266,664,992.45 | 509,832,518.35 | |
| (3)Derivativefinancialassets | 10,261,031.53 | 10,261,031.53 | ||
| (II)Accountsreceivablefinancing | 18,248,205.76 | 18,248,205.76 | ||
| (III)Othernon-currentfinancialassets | 88,750,000.00 | 88,750,000.00 | ||
| Ofwhich:Derivativefinancialliabilities | 46,785,831.47 | 46,785,831.47 | ||
| II.InconsistentFairValueMeasurement | -- | -- | -- | -- |
2.MarketPriceRecognitionBasisforConsistentandInconsistentFairValueMeasurementItemsatLevel
Quotedpricesinactivemarketsforidenticalassetsorliabilities(unadjusted).
3.Valuationtechniqueadoptedandnatureandamountdeterminationofimportantparametersforconsistentandinconsistentfairvaluemeasurementitemsatlevel2
TheCompanydeterminesthefairvalueofstructureddepositsandwealthmanagementproductsbasedontheprospectiveearningrateasagreedinthecontract.TheCompanydeterminesthefairvalueoffundproductsbasedonthechangesinnetvaluepublishedbytheprivateequityfunds.TheCompanydeterminesthefairvalueofoption-basedproductsbasedonbankforwardforeignexchangequotationsattheendoftheperiod.
4.Valuationtechniqueadoptedandnatureandamountdeterminationofimportantparametersforconsistentandinconsistentfairvaluemeasurementitemsatlevel3Fortheunlistedequityinvestment,theCompanyadoptsthecomparablelistedcompanycomparisonmethod,andthenon-observableinputvalueofthecomparablelistedcompanycomparisonmethodincludestheliquiditydiscount.TheinvestmentintoShandongHongqiaoThermoelectricCo.,Ltd.madebyLuqunTextile(theCompany’ssubsidiary)isexpectedtobeheldinthelongrunforobtainingthediscountonpowerpurchase.Asnorevenuedistributionrightisvestedintheinvestment,theinvestedunit’soperatingprofitandlossarenotsharedorborne,andtheequitytransferisnotproposed,theCompanyregardsitasthefinancialassetwhichshallbemeasuredbasedonthefairvalueandwhosevariationsareincludedinthecurrentprofitandloss,andtheinvestmentcostisdeemedasthefairvalueofthefinancialasset.Foraccountsreceivablesfinancingatfairvalueandthechangesincludedinothercomprehensiveincome,itsfairvalueshallbedeterminedbythediscountcashflowmethod.
5.ExplaintheReasonforConversionandtheGoverningPolicywhentheConversionHappensifConversionHappensamongConsistentFairValueMeasurementItemsatDifferentLevels
TheCompanyrecognisesthepointatwhichthetransitionbetweenlevelsbasedonthedateoftheeventgivingrisetothetransitionbetweenlevels.Duringthisyear,therestrictedsharesofRemegenCo.,Ltd.heldbytheCompanywerereleasedfromlock-upandputonthemarket,thereforethefairvaluemeasurementofthistransactionalfinancialassethasbeenconvertedfromlevel2tolevel1.Inadditiontothistransactionalfinancialasset,therewasnoconversionbetweenlevel1andlevel2inthefairvaluemeasurementoftheCompany'sothercurrentassetsandotherfinancialliabilities,andtherewasnotransfertoorfromlevel3.
Forafinancialinstrumentwithanactivemarket,itsfairvalueisdeterminedbyitsquotedpriceintheactivemarket;forafinancialinstrumentwithoutanactivemarket,itsfairvalueisdeterminedbyvaluationtechniques.Thevaluationmodelsaremainlydiscountedcashflowmodelsandmarketcomparablecompanymodels,amongothers.Theinputstothevaluationtechniquemainlyincluderisk-freeinterestrate,benchmarkinterestrate,exchangerate,creditspreads,liquiditypremium,andilliquiditydiscount.
6.FairValueofFinancialAssetsandLiabilitiesNotMeasuredatFairValue
Thefinancialassetsandfinancialliabilitiesmeasuredatamortizedcostmainlyincludemonetaryassets,othernon-currentassets-timedeposits,notesreceivable,accountsreceivable,otherreceivables,short-termborrowings,notespayable,accountspayables,otherpayables,currentportionoflong-termborrowings,long-termborrowings,andbondspayable.XIV.RelatedPartyandRelated-partyTransactions
1.InformationrelatedtothecompanyastheparentoftheCompany
| Name | Registrationplace | Natureofbusiness | Registeredcapital | Proportionofshareheldbythecompanyastheparentagainstthecompany(%) | Proportionofvotingrightsownedbythecompanyastheparentagainstthecompany(%) |
| LuchengTextile | Zibo | Textile,chemistryandinvestment | RMB63,260,000 | 16.25% | 16.25% |
Notes:informationontheCompanyastheparentThefinalcontrollersoftheCompanyareMr.LiuZibinandMr.LiuDeming.
2.SubsidiariesoftheCompanyRefertoNoteX-1.
3.InformationonthejointventuresandassociatedenterprisesoftheCompanyRefertoNoteX-2.
4.Informationonotherrelatedparties
| Name | Relationshipwiththecompany |
| ZiboLiminPurifiedWaterCo.,Ltd.(hereinafterreferredtoas"LiminPurifiedWater") | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| ZiboLuqunLandCo.,Ltd(hereinafterreferredtoas"LuqunLand") | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| ZiboLuruiFineChemicalCo.,Ltd.(hereinafterreferredtoas"LuruiChemical") | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| ZiboLujiaPropertyManagementCo.,Ltd.(hereinafterreferredtoas"LujiaProperty") | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| HongKongTungHoiInternationalCompanyLimited(hereinafterreferredtoas"TungHoiInternational") | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| ZiboChengshunHosieryCo.,Ltd.(hereinafterreferredtoas"ChengshunHosiery") | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| ZiboChengshunEconomicandTradeCo.,Ltd.(hereinafterreferredtoas"ChengshunEconomicandTrade") | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| ChengshunPetrochemical(ZhejiangZhoushan)Co.,Ltd.(hereinafterreferredtoas"ChengshunPetrochemical") | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| ZiboLuchengPetrochemicalSalesCo.,Ltd.(hereinafterreferredtoas"LuchengPetrochemical") | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| ShanghaiHengjiuTextileNewMaterialsCo.,Ltd.(hereinafterreferredtoas"HengjiuTextile") | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| ShandongXiruiNewMaterialCo.,Ltd.(hereinafterreferredtoas"XiruiNewMaterial") | Wholly-ownedsubsidiaryoftheparentcompany'swholly-ownedsubsidiary |
| ZiboLumeiEconomicandTradeCo.,Ltd.(hereinafterreferredtoas"LumeiEconomicandTrade") | Wholly-ownedsubsidiaryoftheCompanyastheparent |
5.Listofrelated-partytransactions
(1)Informationonacquisitionofgoodsandreceptionoflaborservice
Informationonacquisitionofgoodsandreceptionoflaborservice
Unit:RMB
| Relatedparty | Content | Reportingperiod | Theapprovaltradecredit | Whetherexceedtradecreditornot | Sameperiodoflastyear |
| ChengshunHosieryandUnikornNonwovens | Papercore,hosiery,hose,accessories,masks,etc. | 7,193,988.38 | 10,916,666.67 | Not | 8,391,376.29 |
| LiminPurifiedWater | Recycledwater,sewagetreatment | 28,246,470.62 | 38,800,000.00 | Not | 27,043,524.89 |
| LuruiFineChemicalandTungHoiInternational | Auxiliaries | 101,314,234.28 | 123,600,000.00 | Not | 98,968,301.33 |
| ChengshunEconomicandTrade | Supermarketretail | 2,468,796.20 | 3,760,000.00 | Not | 5,306,076.78 |
| LuchengPetrochemicalandChengshunPetrochemical | Oil,naturalgas | 55,480,873.42 | 82,577,333.33 | Not | 58,883,721.33 |
| LuqunProperty | electrical | 150,295.22 | 0.00 |
Informationofsalesofgoodsandprovisionoflaborservice
Unit:RMB
| Relatedparty | Content | Reportingperiod | Sameperiodoflastyear |
| ChengshunHosiery | Materials,electricity,runningwater,heating,steam | 255,336.33 | 308,201.04 |
| ChengshunHosiery | Yarn,garments,fabrics | 552,386.10 | 638,004.63 |
| ChengshunTrading | Materials,electricity,runningwater,yarn,garments,fabrics,food,heating,steam | 200,452.64 | 219,216.70 |
| LuchengPetrochemical | Materials,electricity,garments,fabrics | 14,104.15 | 17,310.31 |
| LiminPurifiedWater | Materials,electricity,garments,fabrics,mealserviceinclasses,foods | 5,611,202.34 | 5,363,626.64 |
| LiminPurifiedWater | Sludgetreatment | 283,018.87 | |
| LuruiFineChemical | Materials,yarns,garments,fabrics,foods | 295,841.93 | 165,895.59 |
| LujiaProperty | Materials,garments,fabrics,heating,steam | 28,133.85 | 81,109.42 |
| XiruiNewMaterials | Materials,garments,fabrics,wastecotton | 114,574.26 | |
| XiruiNewMaterials | Cateringservice,drinks,benefits | 114,555.82 | 271.70 |
| LumeiEconomicandTrade | Garments,fabrics,computersupplies | 63.72 | 106.19 |
| LuqunProperty | Garments,fabrics,cateringservices | 365,076.11 | 3,387.06 |
| LuqunProperty | Heatingunitaccountopening | 3,292,155.06 |
(2)Informationonrelated-partylease
TheCompanywaslessor:
Unit:RMB
| Nameoflessee | Categoryofleasedassets | Theleaseincomeconfirmedinthecurrentperiod | Theleaseincomeconfirmedinthesameperiodoflastyear |
| ChengshunEconomicandTrade | Rentofhousesandbuildings | 36,108.00 | 36,108.00 |
| ChengshunHosiery | Rentofhousesandbuildings | 16,800.00 |
TheCompanywaslessee:
Unit:RMB
| Nameoflessor | Categoryofleasedassets | Rentalexpenseofsimplifiedshort-termleasesandlow-valueassetleases(ifapplicable) | Variableleasepaymentsthatarenotcoveredinthemeasurementoftheleaseliabilities(ifapplicable) | Rentpayable | Interestexpenseonleaseliabilitiesborne | Addedright-of-useassets | |||||
| Amountofthecurrentperiod | Amountofthepreviousperiod | Amountofthecurrentperiod | Amountofthepreviousperiod | Amountofthecurrentperiod | Amountofthepreviousperiod | Amountofthecurrentperiod | Amountofthepreviousperiod | Amountofthecurrentperiod | Amountofthepreviousperiod | ||
| LuchengTextile | Rentofland | 3,614,857.20 | 3,614,857.20 | 1,093,886.24 | 1,208,211.39 | ||||||
| LuchengTextile | Rentofgasstation | 233,142.84 | 233,142.84 | 105,749.06 | 111,526.32 | ||||||
| LuchengTextile | Rentofbuildings | 11,022,228.60 | 11,022,228.60 | 1,831,460.66 | 2,198,793.82 | ||||||
| LuqunProperty | Rentoflandandbuildings | 1,971,428.52 | 1,971,428.52 | 1,128,013.88 | 1,166,262.45 | ||||||
(3)Informationonremunerationforkeymanagementpersonnel
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepreviousperiod |
| Remunerationforkeymanagementpersonnel | 12,214,104.92 | 12,453,347.54 |
6.Accountsreceivableandpayableofrelatedparty
(1)Accountsreceivable
Unit:RMB
| Item | Relatedparty | Endingbalance | Beginningbalance | ||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | ||
| Prepayments | LuruiFineChemical | 197,267.31 | |||
(2)Accountspayable
Unit:RMB
| Item | Relatedparty | Endingcarryingamount | Beginningcarryingamount |
| Accountspayable | LuruiFineChemical | 398,433.04 | |
| Accountspayable | TungHoiInternational | 5,597,739.70 | 976,966.23 |
| Contractliability | LuqunProperty | 649,676.55 |
XV.StockPayment
1.Theoverallsituationofshare-basedpayments?Applicable□Notapplicable
Unit:RMB
| Categoryofgrantrecipients | Awardedinthecurrentperiod | Optionexerciseinthecurrentperiod | Unlockedinthecurrentperiod | Lapsedinthecurrentperiod | ||||
| Number | Amount | Number | Amount | Number | Amount | Number | Amount | |
| Management,coretechnicalandbusinessbackbone | 9,898,500.00 | 9,898,500.00 | 90,000.00 | 90,000.00 | ||||
| Total | 9,898,500.00 | 9,898,500.00 | 90,000.00 | 90,000.00 | ||||
Stockoptionsorotherequityinstrumentsoutstandingattheendoftheperiod
□Applicable?Notapplicable
2.Equity-settledshare-basedpayments
?Applicable□Notapplicable
Unit:RMB
| Methodsfordeterminingthefairvalueofequityinstrumentsonthegrantdate | Differencebetweenthemarketpriceofthestockandthegrantpriceonthegrantdate |
| Basisfordeterminingthenumberoffeasiblerightequityinstruments | Optimalestimationofexpectedfeasiblerightinthefuture |
| Reasonsforthesignificantdiscrepancybetweenthecurrentperiod | N/A |
| estimatesandthepreviousestimates | |
| Accumulatedamountofequity-settledshare-basedpaymentincludedincapitalreserves | 85,059,530.52 |
| Thetotalamountoftheexpenserecognizedforthecurrentperiodpaidonequity-settledshares | 16,758,063.86 |
3.Cash-settledshare-basedpayments
□Applicable?Notapplicable
4.Share-BasedPaymentExpensesforthePeriod
?Applicable□Notapplicable
Unit:RMB
| Categoryofgrantrecipients | Equity-settledshare-basedpayments | Cash-settledshare-basedpayments |
| Management,coretechnicalandbusinessbackbone | 16,758,063.86 | |
| Total | 16,758,063.86 |
XVI.CommitmentsandContingency
1.SignificantCommitmentsSignificantcommitmentsonbalancesheetdate
(1)Capitalcommitments
| Commitmentssignedbuthasn’tbeenrecognizedinfinancialstatements | Endingbalance | Closingbalanceoflastyear |
| Commitmentonconstructingandpurchasinglong-livedassets(RMB’0,000) | 5,147.75 | 50,131.58 |
2.Contingency
(1)SignificantContingencyonBalanceSheetDate
Asat31December2021,theCompanyprovidedguaranteetoloansofthefollowingsubsidiaries:
| Name | Item | Amount(USD) | Amount(RMB) | Duration | Notes |
| Wholly-ownedSubsidiaries | Short-termloan | 3,031,570.00 | 21,471,700.84 | 2023.9.8-2024.9.4 | |
| Wholly-ownedSubsidiaries | Short-termloan | 297,333.00 | 2,105,920.44 | 2023.9.15-2024.9.9 | |
| Wholly-ownedSubsidiaries | Short-termloan | 1,309,320.00 | 9,273,520.76 | 2023.9.29-2024.9.23 | |
| Wholly-ownedSubsidiaries | Short-termloan | 1,711,480.00 | 12,121,899.40 | 2023.10.5-2024.9.30 |
| Wholly-ownedSubsidiaries | Short-termloan | 170,429.00 | 1,207,097.48 | 2023.10.5-2024.9.30 |
| Wholly-ownedSubsidiaries | Short-termloan | 320,733.00 | 2,271,655.62 | 2023.10.10-2024.10.4 |
| Wholly-ownedSubsidiaries | Short-termloan | 102,204.85 | 723,886.29 | 2023.10.30-2024.10.24 |
| Wholly-ownedSubsidiaries | Short-termloan | 122,486.00 | 867,531.59 | 2023.11.2-2024.10.28 |
| Wholly-ownedSubsidiaries | Short-termloan | 2,188,363.67 | 15,499,523.37 | 2023.9.8-2024.9.4 |
| Wholly-ownedSubsidiaries | Short-termloan | 345,131.00 | 2,444,459.33 | 2023.9.15-2024.9.9 |
| Total | 9,599,050.52 | 67,987,195.12 |
(2)ExplanationshallbegivenevenifthereisnosignificantcontingencyfortheCompanytodisclose
TherewasnosignificantcontingencyintheCompanytodisclose.XVII.EventsafterBalanceSheetDate
1.DistributionofProfit
| Amounttobedistributedforeverytenshares(RMB) | 1.30 |
| Dividendsharestobedistributedforeverytenshares(share) | 0 |
| Numberofsharestobeconvertedintosharecapitalforeverytenshares(share) | 0 |
| Amounttobedistributedforeverytensharesafterconsiderationandapproval(RMB) | 1.30 |
| Dividendsharestobedistributedforeverytensharesafterconsiderationandapproval(share) | 0 |
| Numberofsharestobeconvertedintosharecapitalforeverytensharesafterconsiderationandapproval(share) | 0 |
| Profitdistributionplan | On10April2024,the20thmeetingofthe10thBoardofDirectorsoftheCompanyapprovedtheprofitdistributionplanfor2023asfollows:Basedonthesharecapitalof817,431,206sharesafterthecompletionoftherepurchaseandcancellationoftheBShares,itwasproposedthatcashdividendsintheamountofRMB106,266,056.78wouldbedistributedattherateofRMB1.30per10shares(inclusiveoftax).Theabovedistributionplanwillbeimplementedafteritissubmittedtothe2023AnnualGeneralMeetingofShareholdersforconsiderationandapproval. |
2.Notestoothereventsafterbalancesheetdate
Asat10April2024,theCompanyhasnoothereventsafterbalancesheetdatethatshouldbedisclosed.
XVIII.NotesofMainItemsintheFinancialStatementsoftheCompanyastheParent
1.AccountsReceivable
(1)Disclosurebyaging
Unit:RMB
| Aging | Endingcarryingamount | Beginningcarryingamount |
| Withinoneyear(including1year) | 380,684,242.95 | 386,580,998.61 |
| Onetotwoyears | 2,423,615.15 | 536,914.02 |
| Twotothreeyears | 13,571.80 | 224,827.57 |
| Morethanthreeyears | 3,026,023.60 | 4,460,653.98 |
| Threetofouryears | 20,913.49 | 4,150,455.06 |
| Fourtofiveyears | 3,005,110.11 | 310,198.92 |
| Over5years | 0.00 | |
| Total | 386,147,453.50 | 391,803,394.18 |
(2)DisclosurebyWithdrawalMethodsforBadDebts
Unit:RMB
| Category | Endingbalance | Beginningbalance | ||||||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
| amount | Proportion | amount | Withdrawalproportion | amount | Proportion | amount | Withdrawalproportion | |||
| AccountsreceivablewithdrawalofBaddebtprovisionseparatelyaccrued | 5,481,360.70 | 1.42% | 5,481,360.70 | 100.00% | 4,856,146.97 | 1.24% | 4,856,146.97 | 100.00% | ||
| Ofwhich: | ||||||||||
| Accountsreceivablewithdrawalofbaddebtprovisionofbygroup | 380,666,092.80 | 98.58% | 24,182,667.21 | 6.35% | 356,483,425.59 | 386,947,247.21 | 98.76% | 29,030,196.50 | 7.50% | 357,917,050.71 |
| Ofwhich: | ||||||||||
| Group1:Undueaccounts(L/C) | 35,791,868.54 | 9.27% | 35,791,868.54 | |||||||
| Group2:Undueaccounts(creditinsuranceinsured) | 23,003,716.87 | 5.96% | 241,539.03 | 1.05% | 22,762,177.84 | 45,947,651.98 | 11.73% | 482,450.35 | 1.05% | 45,465,201.63 |
| Group3:Undueaccounts(nocreditinsurance) | 275,912,255.37 | 71.45% | 13,795,612.77 | 5.00% | 262,116,642.60 | 272,913,162.58 | 69.66% | 13,645,658.14 | 5.00% | 259,267,504.44 |
| Group4:Overdueaccounts(creditinsuranceinsured) | 15,309,159.83 | 3.96% | 2,403,538.09 | 15.70% | 12,905,621.74 | 31,716,529.93 | 8.09% | 4,979,495.20 | 15.70% | 26,737,034.73 |
| Group5:Overdueaccounts(nocreditinsurance) | 30,649,092.19 | 7.94% | 7,741,977.32 | 25.26% | 22,907,114.87 | 36,369,902.72 | 9.28% | 9,922,592.81 | 27.28% | 26,447,309.91 |
| Total | 386,147,453.50 | 100.00% | 29,664,027.91 | 7.68% | 356,483,425.59 | 391,803,394.18 | 100.00% | 33,886,343.47 | 8.65% | 357,917,050.71 |
Baddebtprovisionseparatelyaccrued:2023
Unit:RMB
| Name | Beginningbalance | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | Withdrawalproportion | Reasonforwithdraw | |
| Customer1 | 2,705,609.83 | 2,705,609.83 | 2,751,489.34 | 2,751,489.34 | 100.00% | Customerinfinancialdifficulty |
| Customer2 | 1,986,544.97 | 1,986,544.97 | 2,729,871.36 | 2,729,871.36 | 100.00% | Customerinfinancialdifficulty |
| Customer3 | 90,959.35 | 90,959.35 | ||||
| Customer4 | 73,032.82 | 73,032.82 | ||||
| Total | 4,856,146.97 | 4,856,146.97 | 5,481,360.70 | 5,481,360.70 | ||
Ifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivable.
□Applicable?Notapplicable
(3)BadDebtProvisionWithdrawal,ReversedorRecoveredintheReportingPeriod
Withdrawalofbaddebtprovision:
Unit:RMB
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |||
| Withdrawal | Reversedorrecovered | Verification | Others | |||
| Baddebtprovision | 33,886,343.47 | -4,099,047.34 | 123,268.22 | 29,664,027.91 | ||
| Total | 33,886,343.47 | -4,099,047.34 | 123,268.22 | 29,664,027.91 | ||
(4)AccountsReceivableWritten-offinCurrentPeriod
Unit:RMB
| Item | Written-offamount |
| Written-offaccountsreceivable | 123,268.22 |
Notestoverificationofaccountsreceivable:
Therewerenowrite-offsofsignificantaccountsreceivable.
(5)Top5oftheEndingBalanceoftheAccountsReceivableandtheContractAssetsCollectedaccordingtoArrearsParty
Unit:RMB
| Nameoftheentity | Endingbalanceofaccountsreceivable | Endingbalanceofcontractassets | Endingbalanceofaccountsreceivableandcontractassets | Proportiontototalendingbalanceofaccountsreceivableandcontractassets | Endingbalanceofbaddebtprovisionofaccountsreceivableandimpairmentprovisionforcontractassets |
| Customer1 | 28,876,425.29 | 28,876,425.29 | 7.48% | 1,443,821.26 | |
| Customer2 | 27,146,545.63 | 27,146,545.63 | 7.03% | 1,357,327.28 | |
| Customer3 | 25,324,312.06 | 25,324,312.06 | 6.56% | 1,266,215.60 | |
| Customer4 | 14,010,862.76 | 14,010,862.76 | 3.63% | 439,469.81 | |
| Customer5 | 12,808,372.92 | 12,808,372.92 | 3.31% | 640,418.65 | |
| Total | 108,166,518.66 | 0.00 | 108,166,518.66 | 28.01% | 5,147,252.60 |
2.NotesReceivable
| Category | Endingbalance | Closingbalanceoflastyear | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |
| Bankacceptancebills | 54,622,178.42 | 54,622,178.42 | 49,401,876.98 | 49,401,876.98 | ||
| Commercialacceptancebills | ||||||
| L/C | 49,946,887.38 | 49,946,887.38 | ||||
| Total | 54,622,178.42 | 54,622,178.42 | 99,348,764.36 | 99,348,764.36 |
(1)TheCompanyhadnopledgednotesreceivableattheendoftheperiod.
(2)NotesreceivableendorsedbytheCompanyordiscountedandnotdueonthebalancesheetdateattheperiod-end
| Category | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
| Bankacceptancebills | 36,529,780.40 | |
| Tradeacceptancenotes | ||
| Total | 36,529,780.40 |
(3)Disclosurebywithdrawalmethodsforbaddebts
| Category | Endingbalance | Closingbalanceoflastyear | ||||||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
| Amount | Percentage(%) | Amount | Expectedcreditlossrate(%) | Amount | Percentage(%) | Amount | Expectedcreditlossrate(%) | |||
| Baddebtprovisionseparatelyaccrued | ||||||||||
| Withdrawalofbaddebtprovisionbygroup | 54,622,178.42 | 100 | 54,622,178.42 | 99,348,764.36 | 100 | 99,348,764.36 | ||||
| Ofwhich: | ||||||||||
| Commercialacceptancebills | ||||||||||
| Bankacceptancebillswithlowcreditratings | 54,622,178.42 | 100 | 54,622,178.42 | 99,348,764.36 | 100 | 99,348,764.36 | ||||
| Total | 54,622,178.42 | 100 | 54,622,178.42 | 99,348,764.36 | 100 | 99,348,764.36 | ||||
NotesreceivableofbaddebtprovisionwithdrawnbygroupsGrouping-basedprovisionitem:Bankacceptancebillswithlowcreditratings
| Name | Endingbalance | ||
| Notesreceivable | Baddebtprovision | Expectedcreditlossrate(%) | |
| Bankacceptancebillswithlowcreditratings | 54,622,178.42 | ||
| Total | 54,622,178.42 | ||
Note:Basedonthefactthatthelikelihoodoflossonthenotesreceivableisminimalandtheamountofexpectedcreditlossesonthenotesreceivableisnotmaterial,theCompanyhasnotprovidedforbaddebtsonthenotesreceivable.
3.OtherReceivables
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Dividendreceivable | 18,563,298.39 | |
| Otherreceivables | 2,064,459,414.54 | 1,964,032,236.60 |
| Total | 2,064,459,414.54 | 1,982,595,534.99 |
(1)DividendReceivable
1)DividendReceivableClassification
Unit:RMB
| Project(orinvestee) | Endingbalance | Beginningbalance |
| SanchangFengshouCottonIndustryCo.,Ltd.(hereinafterreferredtoas"FengshouCotton") | 19,540,314.10 | |
| Less:baddebtprovision | -977,015.71 | |
| Total | 18,563,298.39 |
2)DisclosurebyWithdrawalMethodsforBadDebts?Applicable□NotapplicableWithdrawalofbaddebtprovisionbyadoptingthegeneralmodeofexpectedcreditloss:
Unit:RMB
| Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
| Expectedcreditlossinthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
| Balanceof1January2023 | 977,015.71 | 977,015.71 | ||
| Balanceof1January2023intheCurrentPeriod | ||||
| WithdrawaloftheCurrentPeriod | -977,015.71 | -977,015.71 |
ChangesofcarryingamountwithsignificantamountchangedoflossprovisionintheCurrentPeriod
□Applicable?Notapplicable
(2)OtherReceivables
1)Otherreceivablesclassifiedbycategory
Unit:RMB
| Nature | Endingcarryingamount | Beginningcarryingamount |
| Intercoursefunds | 2,060,091,836.09 | 1,914,694,616.18 |
| Exportrebates | 9,934,992.64 | |
| Paymentonbehalf | 6,736,525.76 | 9,769,724.73 |
| Guaranteedepositandcashdeposit | 1,549,661.78 | 3,278,418.46 |
| Borrowingsandpettycash | 1,533,557.54 | 968,504.94 |
| Other | 2,720,459.54 | 35,155,692.70 |
| Total | 2,072,632,040.71 | 1,973,801,949.65 |
2)Disclosurebyaging
Unit:RMB
| Aging | Endingbalance | Beginningcarryingamount |
| Withinoneyear(including1year) | 1,629,128,024.64 | 1,617,443,472.58 |
| Onetotwoyears | 184,755,200.00 | 176,434,854.82 |
| Twotothreeyears | 79,555,623.95 | 177,216,762.10 |
| Morethanthreeyears | 179,193,192.12 | 2,706,860.15 |
| Threetofouryears | 176,599,422.10 | 128,000.00 |
| Fourtofiveyears | 78,000.00 | 101,101.14 |
| Over5years | 2,515,770.02 | 2,477,759.01 |
| Total | 2,072,632,040.71 | 1,973,801,949.65 |
(3)DisclosurebyWithdrawalMethodsforBadDebts
Unit:RMB
| Category | Endingbalance | Beginningbalance | ||||||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
| Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
| Baddebtprovisionseparatelyaccrued | 163,012.05 | 0.01% | 163,012.05 | 100.00% | 0.00 | |||||
| Ofwhich: | ||||||||||
| Customer1 | 163,012.05 | 0.01% | 163,012.05 | 100.00% | 0.00 | |||||
| Withdrawalofbaddebtprovisionbygroup | 2,072,469,028.66 | 99.99% | 8,009,614.12 | 0.39% | 2,064,459,414.54 | 1,973,801,949.65 | 100.00% | 9,769,713.05 | 0.50% | 1,964,032,236.60 |
| Ofwhich: | ||||||||||
| Receivablesfromrelatedpartieswithinthescopeofconsolidation | 2,060,091,836.09 | 99.40% | 6,180,275.51 | 0.30% | 2,053,911,560.58 | 1,914,694,616.18 | 97.00% | 5,744,083.85 | 0.30% | 1,908,950,532.33 |
| Taxreceivable | 9,934,992.64 | 0.50% | 496,749.63 | 5.00% | 9,438,243.01 | |||||
| Securitydepositandmarginreceivable | 1,549,661.78 | 0.07% | 77,483.09 | 5.00% | 1,472,178.69 | 3,278,418.46 | 0.17% | 163,920.92 | 5.00% | 3,114,497.54 |
| Otherreceivables | 10,827,530.79 | 0.52% | 1,751,855.52 | 16.18% | 9,075,675.27 | 45,893,922.37 | 2.33% | 3,364,958.65 | 7.33% | 42,528,963.72 |
| Total | 2,072,632,040.71 | 100.00% | 8,172,626.17 | 0.39% | 2,064,459,414.54 | 1,973,801,949.65 | 100.00% | 9,769,713.05 | 0.50% | 1,964,032,236.60 |
Baddebtprovisionseparatelyaccrued:Y2023
Unit:RMB
| Name | Beginningbalance | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | Withdrawalproportion | Reasonforwithdraw | |
| Customer1 | 0.00 | 0.00 | 163,012.05 | 163,012.05 | 100.00% | Customerinfinancialdifficulty |
| Total | 163,012.05 | 163,012.05 | ||||
Withdrawalofbaddebtprovisionbyadoptingthegeneralmodeofexpectedcreditloss:
| Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
| Expectedcreditlossofthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
| Balanceof1January2023 | 8,577,358.06 | 1,192,354.99 | 9,769,713.05 | |
| Balanceof1January2023intheCurrentPeriod | ||||
| WithdrawaloftheCurrentPeriod | -1,916,310.87 | 156,211.94 | 163,012.05 | -1,597,086.88 |
| Balanceof31December2023 | 6,661,047.19 | 1,348,566.93 | 163,012.05 | 8,172,626.17 |
Changesofcarryingamountwithsignificantamountchangedoflossprovisioninthecurrentperiod
□Applicable?Notapplicable
4)BadDebtProvisionWithdrawn,ReversedorRecoveredintheCurrentPeriodWithdrawalofbaddebtprovision:
Unit:RMB
| Category | Beginningbalance | Changesinthecurrentperiod | Endingbalance | |||
| Withdrawal | Reversedorrecovered | Charged-off/Written-off | Others | |||
| Baddebtprovision | 9,769,713.05 | -1,597,086.88 | 8,172,626.17 | |||
| Total | 9,769,713.05 | -1,597,086.88 | 8,172,626.17 | |||
5)Top5oftheEndingBalanceoftheOtherReceivablesCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameofentity | Nature | Endingbalance | Aging | Proportiontoendingbalanceoftotalotherreceivables | Endingbalanceofbaddebtprovision |
| Unit1 | Intercoursefunds | 822,828,423.87 | Within1yearand1to2years | 39.70% | 2,468,485.27 |
| Unit2 | Intercoursefunds | 576,957,860.36 | Within1year | 27.84% | 1,730,873.58 |
| Unit3 | Intercoursefunds | 524,945,598.64 | Within1year,2to3yearsandover3years | 25.33% | 1,574,836.80 |
| Unit4 | Intercoursefunds | 135,330,898.54 | Within1year | 6.53% | 405,992.70 |
| Withholdingandremittingofpersonalendowmentinsurance | Paymentonbehalf | 3,540,114.13 | Within1year | 0.17% | 177,005.71 |
| Total | 2,063,602,895.54 | 99.57% | 6,357,194.06 |
4.Long-termEquityInvestment
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Investmenttosubsidiaries | 3,446,169,376.50 | 10,209,050.00 | 3,435,960,326.50 | 2,885,254,556.40 | 2,885,254,556.40 | |
| Investmenttojointventuresandassociatedenterprises | 143,537,479.77 | 143,537,479.77 | 184,168,625.69 | 184,168,625.69 | ||
| Total | 3,589,706,856.27 | 10,209,050.00 | 3,579,497,806.27 | 3,069,423,182.09 | 3,069,423,182.09 | |
(1)Investmenttosubsidiaries
Unit:RMB
| Investee | Beginningbalance(carryingvalue) | Beginningbalanceofdepreciationreserve | Increase/decrease | Endingbalance(carryingvalue) | Endingbalanceofdepreciationreserve | |||
| Additionalinvestment | Reducedinvestment | Withdrawalofimpairmentprovision | Other | |||||
| XinshengPower | 176,340,737.93 | 176,340,737.93 | ||||||
| LufengCompanyLimited | 529,620,000.00 | 529,620,000.00 | ||||||
| LuqunTextile | 171,784,550.00 | 171,784,550.00 | ||||||
| Luthai(HongKong) | 128,771,800.00 | 128,771,800.00 | ||||||
| ShanghaiLuthai | 20,000,000.00 | 20,000,000.00 | ||||||
| LuThai(America) | 10,209,050.00 | 10,209,050.00 | 0.00 | 10,209,050.00 | ||||
| VACL | 62,337,238.57 | 62,337,238.57 | ||||||
| ZJTextile | 409,118,889.90 | 409,118,889.90 | ||||||
| LulianNewMaterials | 300,000,000.00 | 300,000,000.00 | ||||||
| LujiaImport&Export | 10,000,000.00 | 10,000,000.00 | ||||||
| LuThaiOccupationalTrainingSchool | 100,000.00 | 100,000.00 | ||||||
| ShanghaiZhinuo | 5,000.00 | 1,000.00 | 6,000.00 | |||||
| ZhishuConsulting | 2,000,000.00 | 2,000,000.00 | ||||||
| HuilinInternational | 859,967,290.00 | 770,032,710.00 | 1,630,000,000.00 | |||||
| BanyangMountainVilla | 5,000,000.00 | 5,000,000.00 | ||||||
| YuanhuiFund | 200,000,000.00 | 200,000,000.00 | 400,000,000.00 | |||||
| Total | 2,885,254,556.40 | 970,033,710.00 | 409,118,889.90 | 10,209,050.00 | 3,435,960,326.50 | 10,209,050.00 | ||
(2)Investmenttojointventuresandassociatedenterprises
Unit:RMB
| Investee | Beginningbalance(carryingvalue) | Beginningbalanceofdepreciationreserve | Increase/decrease | Endingbalance(carryingvalue) | Endingbalanceofdepreciationreserve | |||||||
| Additionalinvestment | Reducedinvestment | Gainsandlossesrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Changesofotherequity | Cashbonusorprofitsannouncedtoissue | Withdrawalofimpairmentprovision | Other | |||||
| I.Jointventures | |||||||
| II.Associatedenterprises | |||||||
| HaohongInvestment | 60,547,749.28 | 20,156,313.56 | 7,866,263.99 | 48,257,699.71 | |||
| HaoyingInvestment | 123,620,876.41 | 10,918,662.01 | -17,422,434.34 | 95,279,780.06 | |||
| Subtotal | 184,168,625.69 | 31,074,975.57 | -9,556,170.35 | 143,537,479.77 | |||
| Total | 184,168,625.69 | 31,074,975.57 | -9,556,170.35 | 143,537,479.77 | |||
Therecoverableamountisdeterminedbasedonthenetamountofthefairvalueminusdisposalcosts
□Applicable?NotapplicableTherecoverableamountisdeterminedbythepresentvalueoftheforecastedfuturecashflow.
□Applicable?Notapplicable
5.OperatingRevenueandCostofSales
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod | ||
| Revenue | Cost | Revenue | Cost | |
| Principalbusiness | 3,147,505,850.27 | 2,471,357,276.44 | 3,907,554,376.70 | 2,899,728,853.91 |
| Others | 280,155,779.48 | 186,079,061.04 | 299,695,905.51 | 268,072,062.00 |
| Total | 3,427,661,629.75 | 2,657,436,337.48 | 4,207,250,282.21 | 3,167,800,915.91 |
6.InvestmentIncome
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod |
| Long-termequityinvestmentincomeaccountedbycostmethod | 170,639,188.72 | 106,856,787.62 |
| Long-termequityinvestmentincomeaccountedbyequitymethod | -9,556,170.35 | 28,049,040.53 |
| Investmentincomefromdisposaloflong-termequityinvestment | 22,374,515.10 | 34,470,026.17 |
| Investmentincomefromholdingofheld-for-tradingfinancialasset | 3,837,780.60 | |
| Investmentincomefromdisposaloftradingfinancialassets | 30,146,964.78 | -19,441,900.00 |
| Total | 217,442,278.85 | 149,933,954.32 |
XIX.SupplementaryMaterials
1.ItemsandAmountsofNon-recurringProfitorLoss?Applicable□Notapplicable
Unit:RMB
| Item | amount | Note |
| Gainsandlossesondisposalofnon-currentassets | -9,741,769.37 | |
| Governmentgrantsrecognizedinprofitorlossforthecurrentperiod(exceptforgovernmentgrantscloselyrelatedtotheCompany'snormaloperatingbusiness,incompliancewithnationalpoliciesandinaccordancewithdefinedcriteria,andhavingacontinuousimpactontheCompany'sprofitorloss) | 45,294,185.95 | |
| Gainsandlossesarisingfromchangesinfairvalueoffinancialassetsandfinancialliabilitiesheldbynon-financialenterprisesandgainsandlossesarisingfromthedisposaloffinancialassetsandfinancialliabilities,otherthaneffectivehedgingbusinessrelatedtotheCompany'snormaloperatingbusiness | -18,190,072.86 | |
| Reversalofprovisionforimpairmentofreceivablesseparatelytestedforimpairment | 163,992.17 | |
| Othernon-operatingincomeandexpenseotherthantheabove | 4,819,447.10 | |
| Less:Incometaxeffects | 4,629,001.56 | |
| Non-controllinginterestseffects(aftertax) | 407,964.01 | |
| Total | 17,308,817.42 | -- |
Detailsofotherprofitandlossitemsinlinewiththedefinitionofnon-recurringgainsandlosses:
□Applicable?NotapplicableTherearenootherprofitandlossitemsinlinewiththedefinitionofnon-recurringgainsandlossesintheCompany.Notetodefinethenon-recurringprofitandlossitemslistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—Non-recurringGainsandLossesasrecurringprofitandlossitems.
□Applicable?Notapplicable
2.ReturnonEquityandEarningsPerShare
| ProfitasofReportingPeriod | WeightedaverageROE(%) | EPS | |
| EPS-basic | EPS-diluted | ||
| NetprofitattributabletoordinaryshareholdersoftheCompany | 4.40% | 0.47 | 0.42 |
| NetprofitattributabletoordinaryshareholdersoftheCompanyafterdeductionofnon-recurringprofitorloss | 4.21% | 0.45 | 0.41 |
ChairmanoftheBoard:LiuZibin
LuThaiTextileCo.,Ltd.
12April2024