Shenzhen Topband Co., Ltd.Semiannual Report 2021
July 2021
Section I Important Notes, Contents and Definitions
The Board of Directors, the Board of Supervisors and directors, supervisors and seniorexecutives of the Company hereby assure that the content set out in the Semiannual Report is true,accurate and complete, and free from any false from any false record, misleading representation ormaterial omission, and are individually and jointly responsible for the content set out therein.Wu Yongqiang, the principal of the Company, Xiang Wei, accounting head, and Xiang Wei,accounting department head (the person in charge of accounting department) hereby certify that thefinancial report in the Semiannual Report is true, accurate and complete.All directors have attended the Board meeting at which the Report was scrutinized.If the Report involves forward-looking statements such as future plans, they do not constitutethe Company's substantive commitments to investors, and investors and relevant persons shallmaintain sufficient risk awareness and understand the differences between plans, forecasts andcommitments.There is no significant risk affecting the financial condition and sustainable profitability of theCompany, but there may be risks of declining market demand, increased competition in the industry,raw material price fluctuations, changes in export tax rebate policy and foreign exchange ratefluctuations due to the macro environment home and abroad. For detailed risk warnings, pleaserefer to the “Possible Risk Factors” in Section III of the Report and investors are advised to payattention to investment risks.
The Company plans not to distribute cash dividends or bonus shares or increase share capitalwith the provident fund.
Contents
Section I Important Notes, Contents and Definitions ...... 2
Section II Company Profile and Main Financial Indicators ...... 6
Section III Discussion and Analysis of the Management ...... 10
Section IV Corporate Governance ...... 37
Section V Environmental and Social Responsibility ...... 39
Section VI Important Matters ...... 40
Section VII Share Change and Shareholders ...... 49
Section VIII Information on Preferred Shares ...... 58
Section IX Relevant Information of Bonds ...... 59
Section X Financial Report ...... 60
Section XI Other Data Submitted ...... 225
Directory of documents for future reference
I. Accounting statements containing the signatures and seals of the legal representative, the financialhead and the accounting department head.II. The originals of all the company documents publicly disclosed in newspapers designated by theCSRC during the reporting period and the original manuscripts of announcements.III. The original of the Semiannual Report 2021 indicating the signature of the chairman.
All the above documents are ready and complete, and are available for reference at the office of theBoard of Directors of the Company.
Definitions
| Term | Definitions | |
| Company, the Company, Topband shares | Refers to | Shenzhen Topband Co., Ltd. |
| Yuan, 10,000 yuan | Refers to | Yuan, RMB 10,000 |
| CSRC | Refers to | China Securities Regulatory Commission |
| Exchange | Refers to | Shenzhen Stock Exchange |
| Reporting period | Refers to | January 1, 2021 - June 30, 2021 |
| Articles of Association | Refers to | Articles of Association of Shenzhen Topband Co., Ltd. |
| ORVIBO | Refers to | Shenzhen ORVIBO Technology Co., Ltd. |
| Chongqing Yiyuan | Refers to | Chongqing Topband Industrial Co., Ltd. |
| Meanstone Intelligent | Refers to | Shenzhen Meanstone Intelligent Technology Co., Ltd. |
| Topband Lithium Battery | Refers to | Shenzhen Topband Lithium Battery Co., Ltd. |
| Ninghui Lithium Battery | Refers to | Taixing Ninghui Lithium Battery Co., Ltd. |
| Huizhou Topband | Refers to | Huizhou Topband Electrical Technology Co., Ltd. |
| ICT | Refers to | Information Communications Technology |
| T-SMART | Refers to | Topband One-Stop Smart Home Solution |
| AI | Refers to | Artificial Intelligence |
| BLDC | Refers to | Brushless DC Motor |
| CELL | Refers to | Lithium battery monomer |
| BMS | Refers to | Battery Management System |
| PACK | Refers to | The packaging, encapsulation and assembly of batteries |
| IPD | Refers to | Integrated Product Development |
| APP | Refers to | An application program |
| PaaS | Refers to | Platform-as-a-Service |
| SaaS | Refers to | Software-as-a-Service |
Section II Company Profile and Main Financial Indicators
I. Company information
| Stock abbreviation | Topband | Stock code | 002139 |
| Listed stock exchange | Shenzhen Stock Exchange | ||
| Chinese name of the Company | 深圳拓邦股份有限公司 | ||
| Chinese abbreviation of the Company (if any) | 拓邦股份 | ||
| Name of the Company in foreign language (if any) | Shenzhen Topband Co.,Ltd | ||
| Legal representative of the Company | Wu Yongqiang | ||
II. Contact person and contact information
| Secretary of the Board of Directors | Representative of securities affairs | |
| Name | Wen Zhaohui | Yang Qiaoqiao |
| Address | Topband Industrial Park, Keji Second Road, Shiyan Subdistrict, Baoan District, Shenzhen | Topband Industrial Park, Keji Second Road, Shiyan Subdistrict, Baoan District, Shenzhen |
| Tel | 0755-26957035 | 0755-26957035 |
| Fax | 0755-26957440 | 0755-26957440 |
| wenzh@topband.com.cn | yangqq@topband.com.cn |
III. Other situations
1. Company's contact information
Were the Company's registered address, office address and postal code, website and e-mail address changedduring the reporting period
□ applicable √ not applicable
The Company's registered address, office address and postal code, website and e-mail address remainedunchanged during the reporting period. For details, please refer to the Annual Report 2020.
2. Information disclosure and storage place
Was the location of information disclosure and storage changed during the reporting period
□ applicable √ not applicable
The name of the information disclosure newspaper selected by the Company, and the website designated by theCSRC that publishes the semiannual report. There was no change in the reporting period of the Company'ssemiannual report. For details, please refer to the Annual Report 2020.IV. Key accounting data and financial indicatorsWhether the Company is required to retroactively adjust or restate the accounting data of previous years
□ Yes √ No
| Current reporting period | Corresponding period of last year | Y-o-y increase /decrease | |
| Operating income (yuan) | 3,644,045,612.40 | 1,997,427,900.70 | 82.44% |
| Net profit attributable to shareholders of listed companies (yuan) | 428,185,704.03 | 208,913,599.16 | 104.96% |
| Net profit attributable to shareholders of listed company after deducting non-recurring profit and loss (yuan) | 319,714,520.44 | 133,416,997.04 | 139.64% |
| Net cash flow from operating activities (yuan) | -225,705,738.12 | 119,136,253.19 | -289.45% |
| Basic earnings per share (yuan / share) | 0.38 | 0.20 | 90.00% |
| Diluted earnings per share (yuan / share) | 0.37 | 0.19 | 94.74% |
| Weighted average return on net assets | 11.13% | 8.01% | 3.12% |
| At the end of the reporting period | End of last year | Increase or decrease at the end of the reporting period over the same period of last year | |
| Total assets (yuan) | 8,619,107,470.07 | 6,808,735,037.28 | 26.59% |
| Net assets attributable to shareholders of listed companies (yuan) | 4,923,684,343.80 | 3,463,681,980.54 | 42.15% |
V. Differences in accounting data under domestic and foreign accounting standards
1. Differences in net profit and net assets between financial reports disclosed in accordance withInternational Accounting Standards and those disclosed in accordance with PRC GAAP simultaneously
□ applicable √ not applicable
There is no difference in net profit and net assets between financial reports disclosed in accordance withInternational Accounting Standards and those disclosed in accordance with PRC GAAP during the reportingperiod.
2. Differences in net profit and net assets between financial reports disclosed in accordance with foreignaccounting standards and those disclosed in accordance with PRC GAAP simultaneously
□ applicable √ not applicable
There is no difference in net profit and net assets between financial reports disclosed in accordance with foreignaccounting standards and those disclosed in accordance with PRC GAAP during the reporting period.
VI. Items and amount of non-recurring profit and loss
√ applicable □ not applicable
Unit: Yuan
| Items | Amount | Description |
| Profit and loss on disposal of non-current assets (including the write-off portion of the provision for asset impairment) | -465,795.21 | |
| Government subsidies recognized in the current profits and losses (except those closely related to the business of the enterprise and enjoyed in a fixed or quantitative amount according to the national uniform standard) | 6,479,445.63 | |
| Profit and loss from changes in fair value of trading financial assets, derivative financial assets, trading financial liabilities and derivative financial liabilities, and investment income from disposal of trading financial assets, derivative financial assets, trading financial liabilities, derivative financial liabilities and other creditor's rights investments, except for effective hedging business related to the normal business of the Company | 122,379,119.84 | |
| Other non-operating income and expenses other than those mentioned above | -1,672,760.04 | |
| Other profit and loss items that meet the definition of non-recurring profit and loss | 1,200,855.83 | Financing income |
| Less: amount affected by income tax | 19,200,380.11 | |
| Amount affected by minority shareholder’s interest (after tax) | 249,302.35 | |
| Total | 108,471,183.59 | -- |
For the items of non-recurring profit and loss defined by the Company in accordance with the definition ofExplanatory Announcement No. 1 on Information Disclosure for Companies Offering Securities to Public -Non-Recurring Profits and Losses, the reasons why the items of non-recurring profit and loss listed asnon-recurring in Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Securitiesto Public - Non-Recurring Profits and Losses to be defined as recurring profit and loss should be explained.
□ applicable √ not applicable
During the reporting period, the items of non-recurring profit and loss defined and listed in the ExplanatoryAnnouncement No. 1 on Information Disclosure for Companies Offering Securities to Public - Non-RecurringProfits and Losses are not defined as the recurring profit and loss.
Section III Discussion and Analysis of the ManagementI. Main businesses during the reporting period
(1) Major business scope
The Company mainly engages in R&D, production and sales of intelligent control system solutions, i.e.,providing diversified customized solutions for four industries of home appliances, tools, industry and new energy,with the “three electrics and one network” technology of electric control, motor, battery and IoT platform as itscore. The Company is a global leading provider of intelligent control technology, a pioneer of intelligent controlsolutions for the home appliances and tool industries, and an innovator in intelligent control solutions for theindustry and lithium battery industry.
1. Core technology of the Company: “three electrics and one network”: electric control, motor, batterytechnology and IoT platform.
1.1 Electric control technology. The electric control technology is a technology to achieve intelligentcontrol with the microcomputer as the core, including: sensing technology, power electronics, signal processingtechnology, communication technology, interactive technology, power and energy conversion technology,electromagnetic compatibility and so on. The Company has established hundreds of electric control technologyplatforms, which completely cover the demand range of products in four major industries.
1.2 Motor technology. The motor technology is a technology that converts electrical energy into kineticenergy. The Company has built dozens of advanced motor technology platforms around various types of motorssuch as brushless DC motors (BLDC), stepper motors, and servo motors. Among them, the Company takes the
IoT platformBatterytechnology
BatterytechnologyMotor technology
Motor technology
Electric controltechnology
Electric controltechnologyLithiumbatteryindustry
LithiumbatteryindustryIndustry sector
| Tool sector | Industry sector |
Homeappliance
sectorCore technology layout of
"three electrics and onenetwork"
Core technology layout of
"three electrics and onenetwork"Intelligent control business
application in "four
industries"
lead in the tool motor and motion control industries. Motion control refers to the real-time control of the position,speed and direction of mechanical moving parts, so that such mechanical moving parts move in accordance withthe expected trajectory and the specified motion parameters. The motion control system is generally composed ofman-machine interaction interface, controller, driver, motor and other components, which are the core componentsof intelligent manufacturing equipment, and is the premise and basis for the realization of intelligentmanufacturing.
1.3 Battery technology. The battery technology is a technology for energy storage and management. TheCompany has complete design, development customization and production capacities from cell technology(CELL), battery management technology (BMS) to battery pack (PACK).
1.4 IoT platform. The IoT platform is a technology that integrates perception layer, connection layer andapplication layer, mainly including connection management, device management and application. The Companyhas formed a complete technical capability from IoT module, intelligent terminal to APP, and PaaS IoT platform,and has developed solutions for more than ten business scenarios.
2. Main products of the Company: customized system solutions to “home appliances, tools, andindustry and lithium battery” industries
2.1 Intelligent control of home appliances
The Company provides brand customers in the home appliance industry with customized product concepts,design, development, manufacturing and delivery services, including the master control, power control, motordrive and control and display control of home appliances.
2.2 Tool intelligent control
The tool industry mainly includes electric tools, garden tools and other professional tools. The Companyprovides its customers with customized product concepts, design, development, manufacturing and deliveryservices. The business scope covers electronic controls, motors and batteries, and product forms includecontrollers, modules and complete machines.
2.3 Lithium battery and its intelligent control
The Company mainly provides products and system solutions, including battery cells, battery managementsystem (BMS), battery packs and charging cabinets for communication base station energy storage, home energystorage, power batteries for two- or three- wheeled vehicles and other special vehicles, mobile charging power andIoT.
2.4 Industrial intelligent control
In the industrial control industry, the Company’s main business includes research and development,production, sales of step and servo drives and control products with focus on special industrial intelligent controlsolutions. The Company mainly provides controllers, drivers and motors for downstream automation equipmentcustomers, which are widely used in 3C electronics, robotics, medical equipment, semiconductor equipment,textile machinery, packaging machinery, etc. The Company is committed to helping automation equipmentmanufacturers improve equipment design performance, reduce equipment manufacturing costs, and speed up thedevelopment of new equipment.
(2) Industry development prospect, competition situation and industry status
The future will be an intelligent society, and intelligentization will be a long-term, lasting and far-reachingchange having a wide influence, and will deeply affect modern life, and change product forms at the same time.Intelligent control is the core technology of the future intelligent society and the brain and nervous system ofintelligent equipment, and will become the necessity of the intelligent society. We think that the intelligent controlindustry is a big industry without a ceiling and the next gold mine of the intelligent society. There are currentlythree trends of shift, concentration and growth in the industry:
1. There is an obvious trend that international market is shifting to China. The shift is accelerated byindustrial clusters and the advantages of the engineer bonus in China as products become increasingly complex,individualized and differentiated, requiring fast R&D and product delivery, as well as reliable and consistentquality.
2. Domestic shares are concentrated in the top enterprises. In the past three years, the growth rate and orderconcentration of leading enterprises have been better than those of other peers. With the development trend of"desinicization" under the trade war, leading enterprises with global operation ability have taken the lead in globallayout and accelerated the secondary concentration of the industry;
3. New technology and application development has created space for growth. The expansion of industryapplications and the upgrades of technology have accelerated the process of human intelligence, and newtechnologies such as 5G, IoT, and AI are driving the development of intelligent society, providing the intelligentcontrol industry a historic opportunity.
As a global leading provider of intelligent control technology, the Company focuses on the field of intelligent
control, adheres to the concept of value creation, and constantly strengthens its technical capabilities, and hasformed a comprehensive technology system of “three electrics and one network” for four industries of homeappliances, tools, lithium battery application and industry, providing intelligent control solutions for downstreammachine manufacturers. Intelligent controllers are technology-intensive products including algorithm andhardware. With the continuous and in-depth development of intelligentization, the rapid iteration of technologywill improve intelligent controller ODM (original design manufacturer) customization demands, and brandowners' requirements for technological innovation ability of suppliers will become increasingly higher. Relying on25 years of continued R&D investment, the Company has core competitiveness in terms of technology andproduct innovation, and it has become a leader in intelligent control solutions for the home appliance and toolindustries, and an innovator in the industry and lithium battery application industry.
1. Home appliance industry
The Company is the pioneer and leader in the home appliance control segment in China. In recent years, theglobal home appliances show a trend of accelerated concentration of brands, and the “head effect” is more andmore obvious; on the other hand, a trend of increasingly mature of the IoT technology, accelerated infrastructureconstruction, and accelerated “intelligent” penetration rate can be found. As the total growth of the global homeappliance market is slowing down, in order to gain stronger market competitiveness, major home appliance brandowners are putting forward higher and more comprehensive requirements for upstream solution providers, such asdifferentiated and innovative solutions, high-quality and low-cost products, and stable and reliable delivery, etc. Inaddition, international big customers require upstream with multinational localization service capabilities becauseof increased international trade protectionism.In order to seize the opportunities mentioned above, the Company has adopted a multi-dimensionalstructured change strategy for customer structure, product structure, cost structure and operationstructure to achieve sustained and stable high growth in performance.
1.1 Customer structure: The Company has made some adjustments and optimization on the basis of the“spindle shaped” customer structure, increased the development of global integrated customers (big customers)and actively cultivated innovative customers (sci-tech innovation customers) on the basis of deep cultivation oftop customers (strategic customers) in segments.
1.2 Product structure: The Company has increased its investment in product platform and IoT platform,adopted the strategy of “technology platform + product platform + customized solutions”, systematically sorted
out hundreds of electric control technology platforms and home appliance product platforms, and increased theefforts of platform reuse to maintain the agility and efficiency of innovation while reducing the marginal cost ofcustomized R&D. The Company can now quickly provide customers with customized services in differentapplication scenarios, gradually playing the pooling effect of the platform, while ensuring the innovation of thesolutions. In addition, the IoT platform of the Company can offer customers with one-stop, scenario-based andcustomizable services, and has now accumulated nearly 100 projects, some of which have already entered themass production stage.
1.3 Cost structure: After the implementation of centralized purchase, the Company has strengthened thecontrol of key categories and general categories and given full play to the advantages of batch purchase. At thesame time, on the basis of ensuring quality and delivery reliability, the Company increased the efforts of costreduction of solution design and material procurement by using batch production to ensure that customers areprovided with high-quality and low-cost products to enhance the overall competitiveness in the customer end.
1.4 Operation structure: In order to meet the demand for localized and agile services for internationalizedbig customers, the Company has accelerated the construction of domestic operation bases in Yangtze River Delta(Ningbo) and Vietnam (Dong Nai), and sped up the introduction of customers and mass production in India(Pune).
2. Tool industry
The tool industry mainly includes electric tools, gardening tools and other professional tools. The usermarket is mainly concentrated in Europe, the United States and other developed countries and regions, with highbrand concentration and high requirements for quality. In recent years, the tool industry has ushered in theopportunity of “oil to electricity” and “cordless” technology upgrading. Many products powered by fuel beforehave been gradually powered by lithium batteries instead. The battery, electric control and electric of the productsmotor also need to be upgraded. At the same time, some domestic traditional OEMs start to conduct industrialupgrading and branding operations, and gradually show up prominently. In addition, since the tools are mainlyexported to developed regions such as Europe and the United States, and they are greatly affected by trade policiesand tariffs, the Company is also required to have overseas delivery capabilities.
As the leader of the subdivided tool control industry in China, the Company has the unique competitiveadvantage of "electric control + motor + battery", playing a unique value in promoting the development of the toolindustry. In terms of customer strategy, the Company adopts the strategy of "international big customers as the
main, regional customers as a supplement". Customers are mainly divided into American, European, Japanese anddomestic customers. At present, the Company has cooperated with most leading customers in the industry; interms of the industrial chain, the Company has a unique technological combination of "electric control + motor +battery + Internet of Things platform", provides diversified services from "controller + motor + battery pack"components to "module" and "whole machine", and continuously introduces products and solutions with highadded value to meet the rapid innovation needs of the industry; in terms of product structure, in the mode of"technology platform + product platform + customized solutions", the Company has focused on increasing thedevelopment and promotion of "oil to electricity" and "cordless" solutions, and formed a deep cooperationrelationship with customers; in terms of regional operation, the Company has accelerated the delivery of overseasbases such as Vietnam and India, and actively cooperated with the needs of some overseas customers forinternational and domestic delivery.
3. Lithium battery application industry
In the context of global energy revolution, new energy represented by lithium battery is rapidly replacingtraditional fossil energy and lead-acid batteries, etc. The lithium battery industry is divided into general andspecialized segments. The general segment mainly refers to new energy vehicle batteries, standard batteries, etc.Due to continuous progress of technology, increased competition and economies of scale, the cost of lithiumbatteries in the general segment continues to decrease, with serious homogenization and fierce price competition.The specialized segment is for a large number of customized batteries for various industries, such ascommunications, power conversion, IoT, special vehicles, recreational vehicles, home storage and ships. Althoughthe single market size of the specialized lithium battery is relatively small, but the added value is also relativelyhigh. The prospect of lithium battery for replacing the original fuel power or lead-acid battery is very broad, andopportunities for large-scale applications in many market segments are produced.The Company focuses on the specialized segment of lithium battery, with “energy storage + small-scalepower” as the main development direction, and achieves sustained rapid development in a number of marketsegments relying on safe and innovative technology and products. In the field of communications, with theconstruction of 5G and other “new infrastructure” information infrastructures, a large number of equipment thatoriginally achieve energy storage for electricity with lead-acid batteries need to be provided with lithium batteriesinstead; in the field of electricity, due to the high volatility of PV, wind power and other new energy generation,new energy power stations are required to be provided with a certain proportion of lithium battery energy storage,
bringing opportunities for market growth of energy storage on the power generation side; in the field ofindividuals and families, as a portable and environmentally friendly source of energy, lithium battery offersconvenient and intelligent experience for home energy management and use, low-speed vehicle power andconsumer electronics, and its scope of application is gradually expanded. In terms of technology and products,based on the comprehensive advantages of "battery + electronic control + Internet of Things platform", theCompany has the ability of R&D, manufacturing and packing of multiple types of cells, and provides solutionsfrom cells and the battery management system (BMS) to the Internet of Things system.
4. Industrial control industry
In recent years, the efforts of policy support and industrial support for the intelligent manufacturingequipment industry have been further strengthened in China, the domestic substitution has accelerated, thecapacity of domestic industrial control market has increased significantly, and the industry maintains themomentum of sound development. At present, there is still a large space for improving the overall degree oflocalization of industrial and automation equipment, and there are medium- and long-term opportunities todevelop domestic substitution for core control components. Compared to the giant companies of foreign industrialcontrol, there are absolute advantages for the localization solution in terms of cost. At present, the breakthroughsof core technology and product reliability verification have gradually matured, and the domestic substitution trendis irreversible and has great prospects.The Company has a leading domestic market share in the field of stepper motor industrial control and is inthe first echelon in the field of servo motor industrial control. The Company now has more than 3,000 automationequipment manufacturer customers, with whom it has established and maintained continuous and stablecooperative relationships directly. The Company has advanced technology in servo motor control solution, andhas made the products pass three iterations to achieve large-scale applications. The Company actively promotesservo products based on existing customers, and continues to develop 3C, semiconductor equipment, textilemachinery, medical devices and other segments.II. Core competitiveness analysis
1. Platform-based technological innovation capability. With the technology as DNA and the innovation as thegene of development, the Company has formed a unique innovation leading capability. The Company hasaccumulated and formed the most complete technology platform in the industry, with capabilities for in-depth
understanding of various control mechanisms, independent implementation and industry leading, covering allaspects of core technologies of intelligent control integration solutions, such as: intelligent control algorithms,motor electric control, sensing, man-machine interaction, image recognition, power technology, Androidtechnology, temperature control technology, heating, cooling, etc. The Company has the most abundant productlines in its industry, each of which has accumulated and formed a complete, mass-production-proven productplatform covering white home appliances, small home appliances, power tools, gardening tools, intelligenthardware, smart campus, consumer electronics and other fields, and can quickly provide customers with the bestand most guaranteed customized solutions. In addition, the Company has a unique overall solution capacity of“intelligent controller + high efficiency motor + lithium battery” in industry, further strengthening the capacity ofthe Company to lead the technology.
2. Partnership-based customer service capability. The Company takes “agile innovation partner” as itstechnology value proposition, and develops partnership with customers with the development concept of valueco-creation and value co-win. Relying on the advantage of leading technology capacity and based on the deepinsight of customer needs, the Company has formed the partnership-based customer service capacity with thefastest response and the most powerful value creation, established in-depth cooperation partnership with domesticand foreign excellent brand customers in various business fields, and formed a good reputation and brandreputation in the industry. The partnership-based customer service capacity is widely recognized and praised bycustomers.
3. Systematic rapid response capability. With the development of ICT technology and the accelerated speedof global innovation iteration, the services provided by the Company to customers increasingly need to be moreagile in terms of operation. Based on a deep understanding of the intelligent control business, the Company hascreated a strong platform system from the implementation of IPD concept of R&D and design process, ISC reformof core customers of supply chain system, laboratory and quality assurance system, and intelligent manufacturingplatform system, internalizing the strengths and capabilities of the Company into agile capabilities of operation,thus further strengthening the differentiated capabilities of rapid innovation and response, and guaranteesustainable and high-speed growth of the Company.III. Main business analysisRefer to "I. Main businesses during the reporting period" for the main business contents of the Company. Theanalysis of the operation in the reporting period is as follows:
(1) Semiannual operating performance and core operating indicators in 2021
The year 2021 is the beginning of the 14th five-year plan. Scientific and technological innovation, peakcarbon dioxide emissions and carbon neutralization will be the two important factors in the next stage ofeconomic growth. The Company's intelligent control and lithium battery application business complied withnational economic development and achieved good growth during the reporting period. In the first half of 2021,the epidemic at home and abroad still recurred, sometimes had a local rebound, and was not fundamentallycontrolled yet. In the face of the complex and changeable business environment such as the rise in the price of rawmaterials and the shortage of goods under the influence of the epidemic and inflation, the Company's managementactively responded, and seized the opportunity of intelligent upgrading and demand concentration enhancementdepending on its product power, technology platform innovation power, ISC integrated supply chain and strongsystematic management ability accumulated for many years. In the face of risks and difficulties, we chose to facethem together with our customers and overcome difficulties together with our upstream and downstream partners,and obtained the trust of downstream customers, the opportunity of incremental orders, and the supply support ofupstream suppliers. In the first half of 2021, with the efforts of all Topband people, the performance achievedrelatively high-speed growth, and various business indicators continued to be improved. During the reportingperiod, the Company realized an operating income of 3.644 billion yuan with a year-on-year growth of 82.44%, anet profit attributable to the listed company in the amount of 428 million yuan with a year-on-year growth of
104.96%, and a net profit attributable to the shareholders of the listed company in the amount of 320 million yuanafter deduction of non-recurring profit and loss with a year-on-year growth of 139.64%.
During the semiannual period of 2021, focusing on the business objectives set at the beginning of theyear, the Company has made breakthroughs in the following aspects:
1. Demand side: With the accelerated arrival of the intelligent society, the industry development has enteredthe fast lane and will be a long-term process, the application scenarios of intelligent controllers continue to expand,and the downstream demand still maintains a high degree of prosperity. The competitive advantage of China’ssupply chain in the world has been revealed, and overseas production capacity has continued to transfer to Chinaand Southeast Asia. At the same time, the industry is centralizing to the top. As a leading enterprise of intelligentcontroller, the Company’s industry position and market share are increasing year by year. In the first half of 2021,the Company's operating income increased by 82.44% on a year-on-year basis. After deduction of the low baseduring the epidemic in the first half of last year, the compound growth rate of income in the past three years
reached 44.10%.
In the first half of 2021, the four major industries achieved rapid growth on a year-on-year basis, and theadvantageous sector still maintained a strong growth trend. The operating income of home appliances accountedfor 45% of operating income, with a year-on-year growth rate of 90%, and the proportion of innovative intelligentdevices increased rapidly; the operating income of the tool sector accounted for 37% of operating income, whichdoubled year-on-year. The leading position and advantages in the industry have been further reflected.
2. Supply side: In the first half of 2021, the factors related to the shortage of raw materials and thecontinuous rise in prices become more severe from both year-on-year and month-on-month perspectives. TheCompany's management arranged in advance, responded actively, and put ensuring supply safety in the primaryposition of operation. We ensured the timely delivery of customers’ orders by actively communicating withcustomers about demand plans, preparing goods in advance, substituting domestic goods for imported ones orotherwise, and hence reduced the impact of the rise in price and the shortage of goods on operating profits in thereporting period.
During the reporting period, adversely affected by the appreciation of the RMB exchange rate and the sharprise in the price of upstream raw materials, the average gross profit rate of the Company was 24.11% with a slightyear-on-year increase. The Company's anti-risk ability and management ability have been rapidly improved.
3. Core competitiveness: The Company adheres to the mission of creating value for customers and society,always takes "technological innovation" as its engine, continuously deepens the technological leading ability andconstructs a new driving force for enterprise development. During the reporting period, the total R&D investmentwas 234 million yuan with a year-on-year growth of 40.12%, accounting for 4.74% of the Company's net assetsattributable to the parent company and 6.41% of the operating income. While increasing investment intechnological innovation, the Company has strengthened the protection of intellectual property rights andtechnological achievements. By the end of the reporting period, the Company and its subsidiaries had applied for1,947 patents, including 720 invention patents, 1,002 utility models, 163 appearance designs, 12 foreign patentsand 50 PCTs; the Company and its subsidiaries had applied for 73 software copyrights and made 294 trademarkapplications in total. During the reporting period, the proportion of income from innovative products and highvalue-added products increased steadily, and the product structure and customer structure continued to beoptimized.
4. Progress of core strategy: In the first half of 2021, the Company's five core strategies were promoted
simultaneously. The number and share of top customers increased steadily, and the income increased rapidly on ayear-on-year basis; the Company's technological innovation and leading ability continued to deepen, and theproportion of income from innovative products and high value-added products increased steadily during thereporting period; the measures for increasing efficiency and reducing cost were continuously promoted, and theorganization and the process system were further improved to provide strong support and guarantee for the rapiddevelopment of business.
5. Globalization layout and layout of main production capacity: The production capacity was improvedsteadily, with rapidly boosting globalization layout, ensuring the fast growth of the business.
We are an international company with customers all over the world. Focus on the strategy of “customerintimacy”, we serve customers closely and improve the service responsiveness and the service quality further.According to the needs of business development, more than ten regional operation centers, manufacturing centers,R&D centers and representative offices have been established in many places around the world, including theUnited States, Japan, Germany, India and Vietnam. The globalization layout has been promoted rapidly, andoverseas operation centers such as those in Eastern Europe and North America have been actively prepared toaccelerate the globalization layout and realize agile delivery. The current main production capacity layout of theCompany is as follows:
The Pearl River Delta: Include the Shenzhen headquarters and Huizhou. The subsidiary in Huizhou isthe main source of production capacity. Through the rapid improvement of production efficiency in 2020, thecurrent production capacity and quality are stable. At the same time, some rented plants have been added to meetthe rapidly growing demand;
The Yangtze River Delta: The main plant site in Ningbo operation base has been completed, which isestimated to be put into operation service in the second half of 2021.
Southeast Asia - Vietnam: In the first half of 2021, although the sub-subsidiary in Binh Duong, Vietnam(Phase I) was affected by the epidemic, the Company overcame many difficulties including those related topersonnel and materials, and helped customers realize the agility and security of the supply chain. It only took halfa year for the main body of Phase II in Vietnam to be capped in the reporting period, and it is expected to becompleted by the end of 2021 and gradually release production capacity;
Southeast Asia - India: India is the hardest hit area of the epidemic this year. In the first half of the year, theCompany overcame many difficulties and achieved the goal set at the beginning of the reporting period through
remote office means such as video and network. During the reporting period, the Indian subsidiary also obtainedthe BIS product certification certificate of variable frequency air conditioning controllers in India as issued by theBureau of Indian Standards (BIS).As one of the first enterprises that have passed this certification in the world,Topband has successfully demonstrated its excellent technology and leading position in the field of intelligentcontrol, adding powerful strength to its overseas market expansion.
6. Capital operation:
(1) During the reporting period, the Company privately issued 92,105,263 A-share stocks to 14 subscribers,raising 1.05 billion yuan in total, the privately issued shares were listed on Shenzhen Stock Exchange on June 3,2021, and the raised funds are intended to be used for the construction of Huizhou No. 2 Industrial Park andsupplement the Company's working capital;
(2) During the reporting period, Topband Lithium Battery, a wholly-owned subsidiary of the Company, usedits own capital of 33.4 million yuan to hold 83.5% of the equity of Ninghui Lithium Battery Co., Ltd. by acquiringpart of the equity of Taixing Ninghui Lithium Battery Co., Ltd. and increasing its capital. After this acquisition,the Company will increase its cylindrical battery production capacity, share technical resources and customerresources, explore the market, and accelerate the achievement of the Company's strategic objectives.
7. Other business situation: Non-recurring profit and loss increased significantly, which enhanced theCompany's net profit. During the reporting period, the book value of the Company's equity investment inORVIBO increased somewhat than at the end of 2020, and the change in the fair value of the investment increasedthe Company's annual net profit by about 93.347 million yuan in 2021.
(2) Execution of core strategy
During the reporting period, the Company took the “scale growth” as the goal, implemented the strategicconcept of “customer intimacy, innovation driving, agile operation and lean improvement”, which is driven byfour major core capacities.
1. Customer intimacy strategy: The Company focused on the professional strategic customer of allspecified fields, positively expanded the global comprehensive big customer and the rapidly growing customer ofthe technology innovation type, vigorously expanded three kinds of top customers including “big customers,strategic customers and sci-tech innovation customers”, built the enterprise culture focusing on the customers,established the “iron triangle” customer service organization, formed the first-class B2B brand of the intelligentcontrol and forged the all-around intimate partnership with the top customer base.
Through the building of the customer-centered enterprise culture, thus the service concept of the staff wasimproved and the customer service quality was optimized, with the strengthened harmony in the customer service.Organization construction of the “iron triangle” of the customer service was strengthened. Taking the product lineas the unit, the customer service organization including the customer manager, solution specialist team anddelivery team was established, which has improved the service capacity and responsiveness of the top customersremarkably. The first-class B2B brand image of the intelligent control was strengthened. A great number of brandmarketing campaigns were launched, centering on the “exhibition hall + exhibition + media”, which spreads thebrand core value of “agile innovation partner” through multiple channels.
2. Innovation-driven strategy: The customer value was driven by the technological innovation, and theindustry upgrading was driven by the business innovation, with the operation performance driven by managementinnovation.
The Company persisted in driving the creation of customer value using the technology, keepingstrengthening the research development efforts in general technology and platform technology and creating themulti-layered and three-dimensional advanced technology system of “product scheme + product platform +technology platform”; Through scientific planning, both the near-term technology application and the mid-longterm technology reserve were considered to improve the Company’s capacity of technology leading. In terms oftechnology product, it has aimed at providing the industry-leading solution to the intelligent control, promotion ofthe “high-end orientation, intellectualization and personalization” of the technology product and continuousimprovement in the added value of products. The Company has formed dozens of core technology platforms,hundreds of key products platforms, possessing the capacity of providing thousands of product customizationsolutions.
The Company has actively made use of the business innovation to drive the industry upgrading. TheCompany positively promoted the implementation of “intelligent + upgrading strategy”, took T-SMART as thecore platform, expedited the intelligent Internet of things layout, facilitated the Company’s upgrading from the“supplier of intelligent control product” to the “supplier of intelligent control scheme” and the “service provider ofintelligent system”, which improved the customers’ core competitiveness and differentiation capacity in the age ofintelligent Internet of things.
The Company has continued to carry out management reform, driving the operation performanceimprovement by management innovations, carrying out a series of management reform actions at all levels of the
Company, the business unit and the product line, and continuously optimizing the management efficiency of alllevels to realize the operation performance improvement accordingly.
3. Agile operation strategy
The Company vigorously promotes agile culture. It has promoted the agile work culture and concept at alllevels, trained agile talents and constructed the agile organizations. Efforts were made to build the core platformcombining the agile research development, intelligent manufacturing and agile delivery. The capacity of systemssuch as the research development, the supply chain, manufacturing and quality was continuously established andstrengthened. Centering on the method combining “agile + lean”, the agile excellent operation was realized. Theglobal layout was expedited and the step in the construction of the introducing of the customers in Indianoperation center to Ningbo operation center was rapidly promoted, with the capacity of closely serving customersincreased.The Company's forward-looking layout promotes digital transformation. The digital reform was promoted.With the comprehensive application of the information, network and automation and the strengthening in theintelligent operation capacity, the agile future-oriented operation capacity has been improved.The Company achieves full cost improvement through special projects. We are committed to conductingall-round cost improvement, establishing a perfect quality verification system, focusing on process control andoptimization, and continuously improving the PDCA cycle. The Company promotes the cost reduction ofmaterials and processing fees through various special activities. Meanwhile, the Company promotes thereconstruction of process-oriented organization centering on the customers and drives the process reform to keepimproving the efficiency in an end-to-end way, improving the quality control level of all links and realizing thecirculation improvement effect advocated by the quality idea of “zero defect”.
4. Organizational evolution strategy
In 2021, the Company gradually implemented eight business processes and built an "iron triangle" customerservice organization (BU) consisting of customer managers, solution expert teams and delivery teams based onproduct lines and customers. The original organization BG energized the front end as a middle ground, and thefunction platform served as a background to provide agile service and ensure the rapid implementation of thebusiness.
The Company has created a number of excellent BU general managers, trained a number of iron triangleteams, steadily increased the number of key posts, and trained the first echelon of professionals in marketing,
R&D and supply chain. The Company has defined the core key positions through the sorting of job qualifications,and strengthened the introduction and training of key talents through the establishment of the cadre department. Inthe future, through continuous improvement of evolution capacity of the organization, the Company’s capacity ofcapturing opportunities and opportunity-based profit-making capacity will be rapidly improved.
Year-on-year change of main financial data
Unit: Yuan
| Current reporting period | Corresponding period of last year | Y-o-y increase/decrease | Reasons for change | |
| Operating income | 3,644,045,612.40 | 1,997,427,900.70 | 82.44% | Operating income: It increased by 1,646.62 million yuan during the reporting period than during the same period of last year, with an increase of 82.44%.The main reason is as follows: The impact of COVID-19 on the Company's income in January to June 2021 was less severe than last year, the impact of the epidemic was eased in January to June 2021, and the development of customers and the supply of product platforms jointly affected the increase of income. |
| Operating cost | 2,765,295,741.39 | 1,526,098,258.54 | 81.20% | Operating cost: It increased by 1,239.20 million yuan during the reporting period than during the same period of last year, with an increase of 81.20%.The main reason is that the increase in income during the reporting period resulted in a corresponding increase in costs. |
| Sales expenses | 76,889,884.59 | 59,922,424.82 | 28.32% | |
| Management expenses | 94,842,819.69 | 66,326,771.94 | 42.99% | Management expense: It increased by 28.52 million yuan during the reporting period than during the same period of last year, with an increase of 42.99%.The main reason is that during the reporting period, the Company adjusted its organizational structure to meet the needs of future strategic implementation, resulting in an increase in expenses due to the corresponding increase in the number of employees. |
| Financial expenses | 53,761,157.16 | 28,953,109.37 | 85.68% | Financial expenses: compared with the same period last year, it increased by 24.81 million yuan in the reporting period, with an increase of 85.68%.The main reason is that the exchange rate rise of US dollars against RMB during the same period of last year resulted in large exchange gains while there were large exchange losses in |
| the reporting period. | ||||
| Income tax expenses | 45,639,842.16 | 27,524,309.02 | 65.82% | Income tax expense: It increased by 18.12 million yuan during the reporting period than during the same period of last year, with an increase of 65.82%.The main reason is the increase of deferred income tax expenses accrued due to changes in the fair value of financial assets held in the current period over during the same period of last year. |
| R&D investment | 233,628,312.83 | 166,733,759.63 | 40.12% | R & D Investment: It increased by 66.89 million yuan during the reporting period than during the same period of last year, with an increase of 40.12%.The main reason is that the Company increased R & D investment and R & D personnel. |
| Net cash flow from operating activities | -225,705,738.12 | 119,136,253.19 | -289.45% | Net cash flow from operating activities: It decreased by 344.84 million yuan during the reporting period than during the same period of last year, with a decrease of 289.45%. The main reason is the increase of the payment for raw material preparation by the Company in response to the shortage of raw materials and the rapidly growing order demand. |
| Net cash flow from investment activities | -409,322,535.05 | -150,456,848.85 | -172.05% | The net cash flow from investment activities decreased by 258.87 million yuan during the current period than during the same period of last year, with a year-on-year decrease of 172.05%, which was mainly due to the increase in cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets during the current period than during the same period of last year, and the decrease in cash recovered from wealth management and investment over the same period of last year. |
| Net cash flow from financing activities | 748,918,536.69 | 117,774,942.35 | 535.89% | Net cash flow from financing activities: It increased by 631.14 million yuan during the reporting period than during the same period of last year, with an increase of 535.89%, which was mainly due to the receipt of funds raised through non-public offering of shares in the reporting period. |
| Net increase in cash and cash equivalents | 87,547,923.94 | 86,244,023.17 | 1.51% |
Significant change in the Company's profit composition or profit source during the reporting period
□ applicable √ not applicable
There is no significant change in the Company's profit composition or profit source during the reporting period.
Composition of operating income
Unit: Yuan
| Current reporting period | Corresponding period of last year | Y-o-y increase/decrease | |||
| Amount | Proportion in operating income | Amount | Proportion in operating income | ||
| Total operating income | 3,644,045,612.40 | 100% | 1,997,427,900.70 | 100% | 82.44% |
| By industry | |||||
| Intelligent control electronics industry | 3,644,045,612.40 | 100.00% | 1,997,427,900.70 | 100.00% | 82.44% |
| By product | |||||
| Home appliances | 1,626,940,673.61 | 44.65% | 856,306,321.93 | 42.87% | 90.00% |
| Tool | 1,349,771,247.20 | 37.04% | 667,366,394.41 | 33.41% | 102.25% |
| Lithium battery | 426,946,801.69 | 11.72% | 277,118,460.37 | 13.87% | 54.07% |
| Industry | 166,694,953.58 | 4.57% | 130,041,600.00 | 6.51% | 28.19% |
| Others | 73,691,936.32 | 2.02% | 66,595,123.99 | 3.33% | 10.66% |
| By region | |||||
| Domestic | 1,550,764,762.74 | 42.56% | 843,429,180.61 | 42.23% | 83.86% |
| Foreign | 2,093,280,849.66 | 57.44% | 1,153,998,720.09 | 57.77% | 81.39% |
The situation of industries, products or regions accounting for more than 10% of the Company’s operating incomeor operating profit
√ applicable □ not applicable
Unit: Yuan
| Operating income | Operating cost | Gross profit rate | YoY change (%) of operating revenue | YoY change of operating costs | YoY change of gross profit rate | |
| By industry | ||||||
| Intelligent control electronics industry | 3,644,045,612.40 | 2,765,295,741.39 | 24.11% | 82.44% | 81.20% | 0.51% |
| By product | ||||||
| Home appliances | 1,626,940,673.61 | 1,279,417,419.67 | 21.36% | 90.00% | 88.52% | 0.61% |
| Tool | 1,349,771,247.20 | 992,780,182.34 | 26.45% | 102.25% | 106.22% | -1.41% |
| Lithium battery | 426,946,801.69 | 328,540,290.00 | 23.05% | 54.07% | 53.50% | 0.29% |
| By region | ||||||
| Domestic | 1,550,764,762.74 | 1,154,759,649.45 | 25.54% | 83.86% | 81.09% | 1.14% |
| Foreign | 2,093,280,849.66 | 1,610,536,091.94 | 23.06% | 81.39% | 81.28% | 0.05% |
When the statistical caliber of the Company's main business data is adjusted in the reporting period, theCompany's main business data in the latest period shall be the data adjusted according to the caliber at the end ofthe reporting period
□ applicable √ not applicable
Reasons for the change of more than 30% in relevant data
√ applicable □ not applicable
The Company's revenue growth was mainly due to the rapid development of the intelligent society, the increase ofapplication scenarios, and the continuous improvement of the industry. The competitive advantage of China'ssupply chain in the world has been revealed, overseas production capacity has been transferred to China andSoutheast Asia, and the development of new technology and new demand has brought incremental opportunitiesto the industry. At the same time, the industry is concentrated on top enterprises. As a leading enterprise ofintelligent controllers, the Company's industry status and market share have increased year by year.IV. Analysis of non-main business
√ applicable □ not applicable
Unit: Yuan
| Amount | Proportion in total profit | Explanation of formation reason | Whether it is sustainable | |
| Income from investment | 23,876,616.37 | 4.96% | Arising from disposal of Dynanonic and purchase of financial products during the reporting period | No |
| Profit and loss from changes in fair value | 98,312,768.52 | 20.41% | Arising from changes in fair value of Dynanonic, ORVIBO and forward foreign exchange contracts during the reporting period | No |
| Impairment of assets | -114,456,207.37 | -23.76% | Due to the provision for inventory falling price and expected credit impairment loss | No |
| Non-operating income | 1,581,081.80 | 0.33% | No | |
| Non-operating expenses | 4,486,165.70 | 0.93% | No |
V. Analysis of assets and liabilities
1. Major changes in asset composition
Unit: Yuan
| At the end of the reporting period | End of last year | Increase or decrease of proportion | Description of major changes | |||
| Amount | Proportion in total assets | Amount | Proportion in total assets | |||
| Monetary capital | 1,289,864,224.89 | 14.97% | 1,219,095,476.50 | 17.90% | -2.94% | |
| Accounts receivable | 2,043,391,892.07 | 23.71% | 1,701,111,153.84 | 24.98% | -1.28% | |
| Inventory | 1,876,064,400.39 | 21.77% | 1,115,312,868.62 | 16.38% | 5.39% | Inventory: It increased by 760.75 million yuan during the reporting period than at the beginning of the period, with an increase of 68.21%.The main reason is that in order to cope with the impact of the shortage of raw materials and the rapidly growing order demand, the Company prepared some scarce raw materials. |
| Investment real estate | 88,106,690.01 | 1.02% | 89,238,265.71 | 1.31% | -0.29% | |
| Long-term equity investment | 15,111,937.35 | 0.18% | 6,502,528.13 | 0.10% | 0.08% | Long-term equity investment: Long-term equity investment in the reporting period The investment increased by 8.61 million yuan than at the beginning of the period, with an increase of 132.40%.The main reason is the realization of partial equity investment in Pas Electronic Technology (Nanjing) Co., Ltd. during the reporting period. |
| Fixed assets | 1,165,010,173.60 | 13.52% | 1,096,875,640.94 | 16.11% | -2.59% | |
| Construction in progress | 386,601,265.30 | 4.49% | 292,474,798.41 | 4.30% | 0.19% | Construction in progress: It increased by 94.13 million yuan during the reporting period than at the beginning of the period, with an increase of 32.18%. The main reason is the increase of construction investment in Ningbo East China Operation Center |
| and the Phase II project in Vietnam. | ||||||
| Use right assets | 69,398,303.91 | 0.81% | 0.00% | 0.81% | Right to use assets: It increased by 69.40 million at the end of the reporting period than at the beginning of the period, with an increase of 100%. The main reason is the implementation of the new lease standards by the Company during the reporting period. | |
| Short-term loans | 135,890,741.95 | 1.58% | 402,151,500.00 | 5.91% | -4.33% | Short-term loans: They decreased by 266.26 million yuan during the reporting period than at the beginning of the period, with a decrease of 66.21%. The main reason is that some short-term loans were repaid during the reporting period. |
| Contractual liabilities | 78,883,302.66 | 0.92% | 72,576,117.56 | 1.07% | -0.15% | |
| Long-term loans | 169,564,000.00 | 1.97% | 200,000,000.00 | 2.94% | -0.97% | |
| Lease liabilities | 54,349,922.77 | 0.63% | 0.00% | 0.83% |
2. Major foreign assets
√ applicable □ not applicable
Unit: Yuan
| Asset details | Reasons for formation | Asset size | Location | Operation mode | Control measures to ensure the safety of assets | Earning position | Proportion of foreign assets to net assets of the Company | Whether there is a significant risk of impairment |
| Operation Center in India | Investment and establishment | 278,011,437.53 | India (Pune) | R&D, production and sales | Financial supervision, external audit | 1,878,916.68 | 5.65% | No |
| Operation Center in Vietnam | Investment and establishment | 375,092,031.73 | Binh Duong, Vietnam | R&D, production and sales | Financial supervision, external audit | 81,840,334.96 | 7.62% | No |
3. Assets and liabilities measured at fair value
√ applicable □ not applicable
Unit: Yuan
| Items | Opening balance | Profit and loss from changes in fair value in the current period | Changes in cumulative fair value included in equity | Impairment accrued in the current period | Purchase amount in the current period | Amount sold in the current period | Other changes | Closing balance |
| Financial assets | ||||||||
| 1. Trading financial assets (excluding derivative financial assets) | 226,491,482.10 | 98,312,768.52 | 145,703,179.70 | 352,000,000.00 | 346,382,339.75 | 330,421,910.87 | ||
| Subtotal of financial assets | 226,491,482.10 | 98,312,768.52 | 145,703,179.70 | 352,000,000.00 | 346,382,339.75 | 330,421,910.87 | ||
| Total of the above | 226,491,482.10 | 98,312,768.52 | 145,703,179.70 | 352,000,000.00 | 346,382,339.75 | 330,421,910.87 | ||
| Financial liabilities | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Contents of other changesNone.Whether there are significant changes in the measurement attributes of the Company’s main assets during thereporting period
□ Yes √ No
4. Restricted asset rights by the end of the reporting period
| Items | Book value at the end of the period | Restricted reasons |
| Monetary capital | 5,480,466.03 | Security deposits for application to banks for issuance of bank acceptance bills, bank deposits frozen in litigation, etc. |
| Fixed assets | 333,098,600.00 | Mortgage housing loan |
| Total | 338,579,066.03 | -- |
VI. Investment analysis
1. General situation
√ applicable □ not applicable
| Investment in the reporting period (yuan) | Investment amount in the same period of last year (yuan) | Range of change |
| 46,000,000.00 | 0.00 | 100.00% |
2. Major equity investment obtained during the reporting period
√ applicable □ not applicable
Unit: Yuan
| Name of invested company | Main business | Investment mode | Investment amount | Shareholding proportion | Source of capitals | Partner | Term of investment | Product type | Progress as of the balance sheet date | Estimated income | Current investment profit and loss | Whether involved in litigation | Disclosure date (if any) | Disclosure index (if any) |
| Taixing Ninghui Lithium Battery Co., Ltd. | R & D, production and sales of lithium batteries | Acquisition | 33,400,000.00 | 83.50% | Own capitals | None | None | Not applicable | The industrial and commercial change was completed on February 5, 2021 and included in the scope of consolidation | 0.00 | -717,938.81 | No | January 16, 2021 | http://www.cninfo.com.cn/ |
| Total | -- | -- | 33,400,000.00 | -- | -- | -- | -- | -- | -- | 0.00 | -717,938.81 | -- | -- | -- |
3. Major non-equity investment in progress during the reporting period
□ applicable √ not applicable
4. Investment of financial assets
(1) Securities investment
√ applicable □ not applicable
Unit: Yuan
| Security type | Security code | Security abbreviation | Initial investment cost | Accounting measurement model | Book value at the beginning of the period | Profit and loss from changes in fair value in the current period | Changes in cumulative fair value included in equity | Purchase amount in the current period | Amount sold in the current period | Profit and loss in the reporting period | Book value at the end of the period | Accounting subjects | Source of capitals |
| Domestic and foreign stocks | 300769 | Dynanonic | 10,000,000.00 | Fair value measurements | 31,033,991.99 | -16,960,721.35 | 13,280,809.13 | 512,339.75 | 7,105,629.97 | 13,560,930.89 | Trading financial assets | Own capitals | |
| Total | 10,000,000.00 | -- | 31,033,991.99 | -16,960,721.35 | 13,280,809.13 | 0.00 | 512,339.75 | 7,105,629.97 | 13,560,930.89 | -- | -- | ||
| Disclosure date of announcement of Board of Directors for approval of securities investment | Not applicable | ||||||||||||
| Disclosure date of announcement of Shareholders’ Meeting for approval of securities investment (if any) | Not applicable | ||||||||||||
(2) Derivatives investment
√ applicable □ not applicable
Unit: 10,000 yuan
| Name of derivatives investment operator | Relationship | Whether it is connected transaction | Types of derivatives investment | Initial investment amount of derivatives investment | Start date | Termination date | Initial investment amount | Purchase amount during the reporting period | Amount sold during the reporting period | Amount of provision for impairment (if any) | Investment amount at the end of the period | Ending investment amount as % of the Company’s ending net assets | Actual profit and loss amount in the reporting period |
| Bank | Non-related party | No | Forward settlement and sale of foreign exchange | 33,155.50 | 2021/1/4 | 2021/12/31 | 0 | 33,155.50 | 0 | 0 | 33,155.50 | 6.73% | 450.79 |
| Bank | Non-related party | No | Forward settlement and sale of foreign exchange | 6,635.50 | 2021/3/8 | 2021/12/31 | 0 | 6,635.50 | 0 | 0 | 6,635.50 | 1.35% | 94.56 |
| Total | 39,791.00 | -- | -- | 0 | 39,791 | 0 | 0 | 39,791.00 | 8.08% | 545.35 | |||
| Capital sources of derivatives investment | Export collection | ||||||||||||
| Litigation (if applicable) | Not applicable | ||||||||||||
| Disclosure date of announcement of Board of Directors for approval of derivatives investment (if any) | January 14, 2021 | ||||||||||||
| Disclosure date of announcement of Shareholders’ Meeting for approval of derivatives investment (if any) | |||||||||||||
| Risk analysis and control measures of derivatives positions in the reporting period (including but not limited to market risk, liquidity risk, credit risk, operational risk, legal risk, etc.) | 1. Market risk: changes in the domestic and international economic situation may cause substantial fluctuations in the exchange rate, and the forward foreign exchange trading business faces certain market risks. The purpose of the Company’s forward foreign exchange trading business is to lock in the price of foreign exchange settlement or sale and reduce the impact of exchange rate fluctuations on the Company’s profits. The Company will closely track the change of exchange rate. Based on the target exchange rate determined by the business, through the research and judgment of the trend of foreign exchange rate, combined with the Company’s forecast of foreign exchange receipt and payment and the bearing capacity of price change caused by exchange rate fluctuation, the Company will determine the plan of signing forward foreign exchange trading contract, and implement dynamic management of the business, so as to ensure the reasonable profit level of the Company. 2. Liquidity risk: All forward foreign exchange transactions of the Company are based on reasonable estimation of the Company’s future import and export business to meet the demand of trade authenticity. 3. Bank default risk: If the cooperative bank fails during the term of the contract due to its bankruptcy, the Company will not be able to deliver the original foreign exchange contract at the contract price, and there is a risk of uncertain income. Therefore, the Company selects a bank with high credit rating and rich experience in | ||||||||||||
| the foreign exchange trading market as the bank for the Company's engagement in foreign exchange trading business, and the risk of its bankruptcy that may bring losses to the Company is very low. 4. Operational risk: The Company may have relevant risks due to improper operation of the handling personnel in the forward foreign exchange transaction business. The Company has formulated a relevant management system, and has clarified the operation process and responsible person, which is conducive to preventing and controlling risks. 5. Legal risk: The Company’s forward foreign exchange trading business may cause legal disputes due to the signing of relevant trading contracts with banks and unclear agreements. The Company will strengthen the legal review of relevant contracts, and select banks with good credit to carry out such business and control risks. | |
| In the case of changes in the market price of the invested derivatives or the fair value of the products during the reporting period, the analysis of the fair value of derivatives should disclose the specific methods used and the setting of relevant assumptions and parameters | The Company carries out the confirmation and measurement in accordance with Chapter 7 Determination of Fair Value of Article 22 of the Accounting Standards for Business Enterprises-Recognition and Measurement of Financial Instruments, and the fair value is basically determined according to the price provided or obtained by pricing service institutions such as banks. The Company’s accounting for the fair value of derivatives is mainly the unexpired forward foreign exchange settlement and sale contract signed by the Company and the bank during the reporting period. According to the difference between the exchange rate agreed in the unexpired forward foreign exchange settlement and sale contract on the balance sheet date and the delivery exchange rate indicated in the forward contract signed by the bank with the same term as the remaining term of the forward contract, it is recognized as trading financial assets or liabilities. During the reporting period, the profit and loss of forward foreign exchange contracts of the Company was 5.4535 million yuan. |
| Whether the accounting policies and accounting principles of the Company’s derivatives in the reporting period have changed significantly compared with those in the previous reporting period | None |
| Special opinions of independent directors on derivatives investment and risk control of the Company | None |
VII. Sale of major assets and equity
1. Sale of major assets
□ applicable √ not applicable
The Company did not sell any major assets during the reporting period.
2. Sale of major equity
□ applicable √ not applicable
VIII. Analysis of major holding and equity participating companies
√ applicable □ not applicable
Situation of major subsidiaries and equity participating companies with an impact of 10% or more on net profit ofthe Company
Unit: Yuan
| Company name | Company type | Main business | Registered capital | Total assets | Net assets | Operating income | Operating profit | Net profit |
| Shenzhen YAKO Automation Technology Co., Ltd. | Subsidiary | R&D, production, sales, import and export of electronic parts and components | RMB 14 million | 386,053,421.43 | 309,958,801.40 | 166,417,599.85 | 33,704,452.07 | 30,329,229.86 |
| Huizhou Topband Electrical Technology Co., Ltd. | Subsidiary | R&D, production, sales, import and export of electronic parts and components | RMB 300 million | 3,422,932,581.13 | 1,057,271,286.09 | 2,317,404,565.31 | 101,851,607.85 | 93,926,431.46 |
| Topband （Vietnam) Co.,ltd | Sub-subsidiary | R&D, production, sales, import and export of electronic parts and components | USD 12.50 million | 375,092,031.73 | 227,168,205.06 | 334,171,814.40 | 81,727,697.45 | 81,840,334.96 |
Note: The Company holds part of the equity of Shenzhen ORVIBO Technology Co., Ltd. During the reporting period, due to theimprovement of ORVIBO's overall valuation, the change in the fair value of the equity held by the Company increased theCompany's annual net profit by 93.347 million yuan in 2021.
Situation of acquisition and disposal of subsidiaries during the reporting period
√ applicable □ not applicable
| Company name | Method of acquisition and disposal of subsidiaries during the reporting period | Impact on overall production and operations and results |
| Topband (Qingdao) Intelligent Control Co., Ltd. | Newly established and acquired | No significant impact on the results of the Report |
| Shenzhen Tengyi Industrial Co., Ltd. | Acquisition through M & A | No significant impact on the results of the |
| Report | ||
| Shenzhen Zhongli Consulting Co., Ltd. | Newly established and acquired | No significant impact on the results of the Report |
| Taixing Ninghui Lithium Battery Co., Ltd. | Acquisition through M & A | No significant impact on the results of the Report |
| Tulu Innovation (Hong Kong) Limited | Newly established and acquired | No significant impact on the results of the Report |
IX. Situation of structured entity controlled by the Company
□ applicable √ not applicable
X. Risks faced by the Company and countermeasures
1. Risk of technology upgrading
The intelligent controller industry technology, as the main business of the Company is developing rapidlywith fast product upgrading and short life cycle. Although the Company continues to invest in research anddevelopment and owns a number of invention and utility patents, there is still a risk that the technology will not beupdated in time to meet market demand, or lag behind competitors in launching new products, resulting in adecline in the market share and profitability of the Company.
2. Exchange rate risk
The Company's revenue from export sales accounts for more than half of total revenue. In order to cope withthe risk of exchange rate fluctuation, the Company will reduce and avoid foreign exchange risks by conductingRMB hedging business, international procurement and re-pricing of new product.
3. Global operation risk
The Company provides more convenient services to customers by establishing operation centers and officesin foreign countries. There are potential risks arising from changes of national conditions and policies in theglobal operation.
4. Other risks
There are many uncertainties in the current macro environment at home and abroad, and there are somefactors that are unfavorable to the operation of the Company. For example, the Sino-US trade war, the recurrenceof COVID-19, the shortage of raw materials or the price rise, and the lack of manpower will increase theuncertainty of the Company's operation.
Section IV Corporate GovernanceI. Information on the annual and extraordinary general meetings of shareholders held duringthe reporting period
1. Information on the General Meeting of Shareholders during the reporting period
| Meeting session | Meeting type | Investor participation ratio | Meeting date | Date of disclosure | Meeting resolution |
| 2020 Annual General Meeting of Shareholders | Annual General Meeting of Shareholders | 26.49% | March 30, 2021 | March 31, 2021 | http://www.cninfo.com.cn |
| First Extraordinary General Meeting of Shareholders in 2021 | Extraordinary General Meeting of Shareholders | 28.12% | May 10, 2021 | May 11, 2021 | http://www.cninfo.com.cn |
2. The preferred shareholders with restored voting rights request to convene an Extraordinary GeneralMeeting of Shareholders
□ applicable √ not applicable
II. Changes in directors, supervisors and senior executives of the Company
√ applicable □ not applicable
| Name | Position | Type | Date | Reason |
| Shi Yun | Independent director | Outgoing | March 31, 2021 | Resignation |
| Li Xumeng | Independent director | Be elected | March 31, 2021 | By-election of independent directors |
III. Profit distribution and conversion of capital accumulation fund to share capital in thereporting period
□ applicable √ not applicable
The Company plans not to distribute cash dividends or bonus shares or increase share capital with the providentfund for the semiannual period.
IV. Implementation of the Company’s equity incentive plan, employee stock ownership planor other employee incentive measures
√ applicable □ not applicable
Implementation of the 2018 stock option incentive plan during the reporting period
1. On January 14, 2021, the 5th Meeting of the 7th Board of Directors of the Company deliberated andapproved the Proposal on Canceling the Stock Options Granted But Not Exercised by the Resigned Employees ofthe 2018 Stock Option Incentive Plan. Because 76 incentive objects including Huang Xinyu and Yang Shengcangresigned and left the Company for personal reasons, 2.773 million stock options granted but not exercised shallnot be exercised, and were uniformly canceled by the Company.
2. On March 5, 2021, the 6th Meeting of the 7th Board of Directors and the 6th Meeting of the 7th Board ofSupervisors of the Company deliberated and approved the Proposal on the Second Exercise Period of 2018 StockOption Incentive Plan Meeting the Exercise Conditions and Exercisable Rights, the Proposal on Adjusting theIncentive Objects and the Number of Stock Options in the 2018 Stock Option Incentive Plan and the Proposal onAdjusting the Exercise Price of the 2018 Stock Option Incentive Plan. There were 569 incentive objects in thesecond exercise period of the 2018 stock option incentive plan, and the number of the exercisable stock optionswas 10.9851 million. Because from the announcement on March 9, 2021 to the vesting date, 39 incentive objectsincluding Xie Yong and Wu Shi resigned and left the Company for personal reasons, 2.4479 million stock optionsgranted but not exercised shall not be exercised and will be uniformly canceled by the Company. As the Companyimplemented the 2019 annual equity distribution plan, the exercise price was adjusted from 3.70yuan / share to
3.65yuan / share.
3. As of March 31, 2021, a total of 10.9326 million stock options of 566 incentive objects who met theexercise conditions in the second exercise period had been exercised, increasing the registered capital of theCompany by 10.9326 million yuan.
4. On April 26, 2021, the 9th Meeting of the 7th Board of Directors and the 8th Meeting of the 7th Board ofSupervisors deliberated and approved the Proposal on Adjusting the Exercise Price of the 2018 Stock OptionIncentive Plan. Due to the implementation of the 2020 annual equity distribution plan, the exercise price wasadjusted from 3.65 yuan / share to 3.60 yuan / share.
For details of the implementation of the 2018 stock option incentive plan, please refer to the announcementsmade by the Company on the Securities Times and www.cninfo.com.cn on January 16, 2021, March 9, 2021 andApril 27, 2021.
Section V Environmental and Social ResponsibilityI. Major environmental issuesWhether the listed companies and their subsidiaries were key pollutant discharging organizations announced bythe Environmental Protection Department
□ Yes √ No
No
There is no heavy pollution in the production process of the Company's products. The Company has alwayspaid attention to the social public image of the enterprise, and has implemented environmental protection as animportant part of its social responsibility, so as to ensure that industrial solid waste is effectively treated accordingto regulations, and that the discharge of various pollutants meets the national environmental protection standards.The Company has passed ISO14001:2015 environmental management system certification, implementedHSPMQC08000 hazardous substance process management system, and established a series of proceduredocuments in terms of environmental factor identification and evaluation, environmental monitoring andmeasurement management, environmental communication management, waste water, waste gas and solid wastetreatment control, hazardous substance identification and control, etc., clarifying the Company's environmentalprotection organization system and responsibilities under the environmental management system. The passing ofthe system certification and the establishment of relevant supporting systems of the Company show that theCompany has realized institutionalized and operable arrangements in terms of environmental protection.II. Social responsibilityNot applicable
Section VI Important Matters
I. Completed commitments in the reporting period and overdue uncompleted commitmentsby the end of the reporting period by the Company’s actual controller, shareholders, relatedparties, acquirers, the Company and other committed related parties
√ applicable □ not applicable
| Reasons for commitments | Commitment Party | Commitment type | Commitment content | Commitment time | Commitment period | Performance |
| Share reform commitments | ||||||
| Commitments made in the acquisition report or the equity change report | ||||||
| Commitments made in asset restructuring | ||||||
| Commitments made during the initial public offering or refinancing | Wu Yongqiang | Commitments to horizontal competition | Mr. Wu Yongqiang, the actual controller of the Company, has promised that during the period of being the controlling shareholder and/or actual controller of the Company, he would not directly or indirectly engage in any business which was the same, similar or substantially competitive with the main business of the Company at present and in the future. | 2007/6/12 | Long-term effective | Fulfill the commitment strictly |
| Ji Shuhai | Commitments to horizontal competition | Ji Shuhai, a director of the Company as a shareholder, has promised not to directly or indirectly engage in any business which was the same, similar or substantially competitive with the main business of the Company at present and in the future in any way during his term of office. | 2007/6/12 | Long-term effective | Fulfill the commitment strictly | |
| All directors and senior executives of the Company | Other commitments | 1. I would not deliver benefits to other organizations or individuals free of charge or under unfair conditions and not damage the interests of the Company in other means. 2. I fully supported and cooperated with the Company in regulating the duty consumption | 2020/4/29 | On-going | Fulfill the commitment strictly |
| publicly at the General Meeting of Shareholders and the designated newspapers and magazines designated by the CSRC. I voluntarily accept the self-discipline supervision measures taken by the stock exchange and China Association for Public Companies. If my breach of the commitment causes losses to the Company or the shareholders, I shall be liable for compensation in accordance with the law. | |||||
| Wu Yongqiang | Other commitments | 1. I would not abuse the position of the controlling shareholder/actual controller to interfere with the operation and management activities of the Company beyond my power and would not infringe the Company’s interests under any circumstances.2. I would try my best to make the Company implement the compensation demand return measures. 3. I would work hard to link the compensation system formulated by the Board of Directors or the Compensation Committee with the implementation of the Company’s compensation return measures. 4. I would work hard to link the exercise conditions (if any) of the corporate equity incentive to be published in the future with the implementation of the Company’s compensation return measures. 5. I would support the relevant proposals related to the implementation of the Company’s compensation return measures and would vote for them (if I have voting right). 6. After the issuance of this commitment, if there are other requirements in the relevant provisions of the regulatory institution on the compensation return measures and its commitment and the above commitments could not meet the relevant requirements of the regulatory institution, I promise that I would issue a supplementary commitment in accordance with the relevant provisions at that time. | 2020/4/29 | On-going | Fulfill the commitment strictly |
| 7. If I violate the above commitments, I would make an explanation and apologize publicly at the General Meeting of Shareholders and the designated newspapers and magazines designated by the CSRC. I voluntarily accept the self-discipline supervision measures taken by the stock exchange and China Association for Public Companies. If my breach of the commitment causes losses to the Company or the shareholders, I shall be liable for compensation in accordance with the law. | ||||||
| Wu Yongqiang | Other commitments | If Huizhou Topband Electrical Technology Co., Ltd., a wholly-owned subsidiary of Shenzhen Topband Co., Ltd., failed to bid for the land usage right of the plot DN-02-16 at the southeast of the intersection of Dongxin Avenue and Xing’an Road of Dongjiang High-tech Industrial Park in HZZK Hi-tech Industrial Development Zone to be used by “Huizhou Topband No. 2 Industrial Park Project” and Huizhou Topband was required to purchase or lease other lands while the Company would suffer from heavy losses, I would compensate for such losses (such as overpayment of land-transferring fees, rents). | 2020/7/30 | On-going | Fulfill the commitment strictly | |
| Equity incentive commitment | Peng Ganquan, Zheng Sibin, Ma Wei, Wen Zhaohui and Xiang Wei | Other commitments | I promise that I would not transfer all the Company’s shares (including the shares obtained from exercise and other shares) within six months after the exercise of the stock option incentive plan in 2018. | 2021/3/22 | 2021/9/22 | Fulfill the commitment strictly |
| Other commitments to medium and small shareholders of the Company | ||||||
| Whether the commitment was fulfilled on schedule | Yes | |||||
| If the commitment was not fulfilled within the time limit, the specific reasons for the failure and the next work plan shall be explained in detail | Not applicable | |||||
II. Non-operating capital occupation of listed companies by controlling shareholders and theirrelated parties
□ applicable √ not applicable
There was no non-operating capital occupation of listed companies by controlling shareholders and their relatedparties in the reporting period of the Company.III. External guarantee in violation of regulations
□ applicable √ not applicable
The Company had no external guarantee in violation of regulations during the reporting period.IV. Appointment and dismissal of the accounting firmHas the semiannual financial report been audited
□ Yes √ No
The semiannual report of the Company has not been audited.V. Description of the “non-standard audit report” of the Accounting Firm in the reportingperiod by the Board of Directors and the Board of Supervisors
□ applicable √ not applicable
VI. Description of the Board of Directors on the "non-standard audit report" of last year
□ applicable √ not applicable
VII. Matters related to bankruptcy reorganization
□ applicable √ not applicable
There were no matter related to bankruptcy reorganization during the reporting period.VIII. Litigation mattersMajor litigation and arbitration matters
□ applicable √ not applicable
The Company had no major litigation and arbitration matters during the reporting period.
Other litigation matters
□ applicable √ not applicable
IX. Punishment and rectification
□ applicable √ not applicable
The Company had no punishment or rectification during the reporting period.X. Integrity condition of the Company, its controlling shareholders and actual controllers
□ applicable √ not applicable
XI. Major related transactions
1. Related transactions connected with the daily operation
□ applicable √ not applicable
The Company had no related transactions connected with daily operations during the reporting period.
2. Related transactions arising from acquisition and sale of assets or equity
□ applicable √ not applicable
The Company had no related transaction of acquisition or sale of assets or equity during the reporting period.
3. Related transactions of joint foreign investment
□ applicable √ not applicable
The Company had no related transaction of joint foreign investment during the reporting period.
4. Related creditor’s right and debt transaction
□ applicable √ not applicable
The Company had no related creditor’s right and debt transaction during the reporting period.
5. Transactions with related financial companies and financial companies controlled by the Company
□ applicable √ not applicable
There is no deposit, loan, credit extension or other financial business between the Company and its relatedfinancial companies or between the financial companies controlled by the Company and the related parties.
6. Other major related transactions
□ applicable √ not applicable
The Company had no other major related transactions during the reporting period.
XII. Major contracts and their performance
1. Trusteeship, contracting and lease
(1) Trusteeship
□ applicable √ not applicable
The Company had no trusteeship during the reporting period.
(2) Contracting
□ applicable √ not applicable
The Company had no contracting during the reporting period.
(3) Lease
□ applicable √ not applicable
The Company had no lease during the reporting period.
2. Material guarantee
□ applicable √ not applicable
The Company had no major guarantee during the reporting period.
3. Entrusted wealth management
√ applicable □ not applicable
Unit: 10,000 yuan
| Specific types | Capital source of entrusted financing | Amount of entrusted financial management | Unexpired balance | Overdue amount not recovered | Accrued impairment amount of overdue and unrecovered wealth management |
| Bank financial products | Others | 35,240 | 11,650 | 0 | 0 |
| Total | 35,240 | 11,650 | 0 | 0 | |
Specific situation of high-risk entrusted financial management with the significant single amount or low security,poor liquidity and unstable principal assurance
□ applicable √ not applicable
Entrusted financial management was expected to be unable to recover the principal or there were other situationsthat may lead to impairment
□ applicable √ not applicable
4. Major contracts for daily operation
□ applicable √ not applicable
5. Other major contracts
□ applicable √ not applicable
XIII. Description of other major matters
√ applicable □ not applicable
1. Matters of the private issuing of stock in 2020
On April 29, 2021, the Company privately issued 92,105,263 A-share stocks to 14 subscribers at an issueprice of 11.40yuan / share, and the total amount of the funds raised was 1,049,999,998.20 yuan. On May 11, 2021,BAKER TILLY International Accounting Firm (Special General Partnership) verified that the funds raised in thisoffering reached the issuer's account and issued the Capital Verification Report of Shenzhen Topband Co., Ltd.(TZYZ [2021] No. 29460).On June 1, 2021, the Company issued the Report of Shenzhen Topband Co., Ltd. on the Issuance of PrivatelyIssued A-Share Stocks and the Listing Announcement, and 92,105,26 new shares were issued in this non-publicoffering and listed on Shenzhen Stock Exchange on June 3, 2021, with a sales restriction period of 6 months.
For details, please refer to the announcement made by the Company on the Securities Times andwww.cninfo.com.cnon June 1, 2021.
2. During the reporting period, the book value of the Company's equity investment in ORVIBO increasedthan at the end of 2020, and the change in fair value increased the Company's annual net profit by 93.347 millionyuan in 2021.
XIV. Major matters of subsidiaries of the Company
√ applicable □ not applicable
1. On January 14, 2021, the 5th Meeting of the 7th Board of Directors of the Company deliberated andapproved the Proposal on the Subsidiary's Acquisition of 83.5% of the equity in Taixing Ninghui Lithium BatteryCo., Ltd. through Equity Transfer and Capital Increase, agreeing that the wholly-owned subsidiary of theCompany, Topband Lithium Battery, will use its own or self-raised funds of 15.40 million yuan to acquire 70% ofthe equity in Taixing Ninghui Lithium Battery Co., Ltd. and increase the capital of the Target Company by 18million yuan, and the registered capital of the Ninghui Lithium will increase from 22 million yuan to 40 millionyuan. After the completion of this transaction, Topband Lithium Battery will hold 83.5% of the equity in NinghuiLithium Battery. This matter has finished the industrial and commercial change on February 5, 2021 and includedin the scope of the Company's consolidated statements.
2. The plots numbered DX-41-02-01 and DX-41-02-02 with a total area of 49,674 square meters in HuizhouZhongkai High-Tech Zone, which was acquired by Huizhou Topband, the Company's subsidiary, in March 2021,will be used for the construction of Huizhou No. 2 Industrial Park.
Section VII Share Change and Shareholders
I. Share change
1. Share change
Unit: share
| Before this change | Changes in the period (+, -) | After this change | |||||||
| Quantity | Proportion | Issuance of new shares | Stock dividend | Conversion of accumulation fund into shares | Others | Subtotal | Quantity | Proportion | |
| I. Shares subject to conditional restriction(s) | 198,249,297 | 17.46% | 92,105,2631 | -3,180,000 | 88,925,263 | 287,174,560 | 23.19% | ||
| 1. Shares held by the state | 0.00% | 0.00% | |||||||
| 2. Shares held by state-owned legal persons | 0.00% | 3,508,771 | 3,508,771 | 3,508,771 | 0.28% | ||||
| 3. Shares held by other domestic capital | 198,249,297 | 17.46% | 88,596,492 | -3,180,000 | 85,416,492 | 283,665,789 | 22.91% | ||
| Including: shares held by domestic legal persons | 0.00% | 85,964,914 | 85,964,914 | 85,964,914 | 6.94% | ||||
| Shares held by domestic natural persons | 198,249,297 | 17.46% | 2,631,578 | -3,180,000 | -548,422 | 197,700,875 | 15.97% | ||
| 4. Shares held by foreign investment | 0.00% | 0.00% | |||||||
| Including: shares held by overseas legal persons | 0.00% | 0.00% | |||||||
| Shares held by overseas natural persons | 0.00% | 0.00% | |||||||
| II. Shares without restriction | 936,967,512 | 82.54% | 10,032,6002 | 4,080,000 | 14,112,600 | 951,080,112 | 76.81% | ||
| 1. RMB ordinary share | 936,967,512 | 82.54% | 10,032,600 | 4,080,000 | 14,112,600 | 951,080,112 | 76.81% | ||
| 2. Domestic listed foreign shares | 0.00% | 0.00% | |||||||
| 3. Overseas listed foreign shares | 0.00% | 0.00% | |||||||
| 4. Others | 0.00% | 0.00% | |||||||
| III. Total number of shares | 1,135,216,809 | 100.00% | 102,137,863 | 0 | 0 | 900,000 | 103,037,863 | 1,238,254,672 | 100.00% |
Note 1: During the reporting period, the Company privately issued 92,105,263 shares to 14 subscribers. As of the end of the reportingperiod, all the shares were restricted shares;Note 2: During the reporting period, 10,032,600 shares without restriction conditions were increased during the second exerciseperiod of the Company's 2018 stock option incentive plan.
Reasons for share change
√ applicable □ not applicable
The change in the Company's share capital during the reporting period was due to the following facts: the secondexercise period of the 2018 stock option incentive plan complied with the exercise conditions, and the incentiveobjects increased 1,093.26 shares of share capital through independent exercise; and the non-public offering ofshares increased the share capital by 92,105,263 shares.Approval of share change
√ applicable □ not applicable
1. The following decision-making procedures have been performed for the Company's stock option incentive plan:
On March 5, 2021, the 6th Meeting of the 7th Board of Directors and the 6th Meeting of the 7th Board ofSupervisors of the Company deliberated and approved the Proposal on the Second Exercise Period of the SecondPhase Stock Option Incentive Plan Meeting with the Exercise Conditions and Exercisable Rights, the Proposal onAdjusting the Incentive Objects and the Number of Stock Options in the 2018 Stock Option Incentive Plan, andthe Proposal on Adjusting the Exercise Price of the 2018 Stock Option Incentive Plan, the board of supervisors ofthe Company expressed verification opinions on the adjustment of the exercise price of the 2018 stock optionincentive plan and the list and number of incentive objects involved in the second exercise period of grantingstock options, and the independent directors expressed their independent opinions, agreeing that 569 incentiveobjects would exercise their rights independently in the second exercise period, and the total number ofexercisable stock options was 10.9851 million.
2. The Company has performed the following decision-making procedures for this non-public offering:
(1) On April 28, 2020 and May 20, 2020, the Company held the 23rd Meeting of the 6th Board of Directorsand the 2019 Annual General Meeting of Shareholders respectively, which deliberated and approved the Proposalon the Scheme for the Company's Non-Public Offering of Shares, the Proposal on Requesting the General
Meeting of Shareholders to Authorize the Board of Directors to Handle Matters Related to the Company'sNon-Public Offering of Shares and other proposals related to the non-public offering of shares.
(2) On August 10, 2020, the Company's application for non-public offering of shares was approved by theissuance examination committee of the CSRC. On August 18, 2020, the Company received the Reply onApproving the Non-Public Offering of Shares by Shenzhen Topbang Co., Ltd. (ZJXK [2020] No. 1865) as issuedby the China Securities Regulatory Commission. On April 29, 2021, the Company privately issued 92,105,263ordinary shares (A shares) in RMB to 14 specific investors. On May 20, 2021, the Company obtained theConfirmation of Acceptance of Share Registration Application as issued by Shenzhen Branch of China SecuritiesDepository and Clearing Company Limited, and the relevant shares were officially included in the register ofshareholders of the Company after they were registered in the account.Transfer of share change
√ applicable □ not applicable
1. For the second exercise period of the 2018 stock option incentive plan, the exercise of 10.9851 millionstock options was approved. As of the end of the reporting period, 1,093.26 additional shares for stock optionexercise had been registered under the names of incentive objects respectively.
2. The securities registration formalities for the Company's non-public offering of 92,105,263 shares (RMBordinary shares) were completed in Shenzhen Branch of China Securities Depository and Clearing CompanyLimited, and such shares were listed on Shenzhen Stock Exchange on June 3, 2021.Implementation progress of share repurchase
□ applicable √ not applicable
Progress in the implementation of the reduction of share repurchase through centralized bidding
□ applicable √ not applicable
The impact of share changes on financial indicators such as basic earnings per share and diluted earnings per sharein the latest year and the latest period, net assets per share attributable to common shareholders of the Company,etc.
√ applicable □ not applicable
| Items | January to June 2021 | January to December 2020 | ||
| Calculation based on new share capital | Calculation based on original share capital | Calculation based on new share capital | Calculation based on original share capital | |
| Basic earnings per share | 0.35 | 0.38 | 0.43 | 0.47 |
| Diluted earnings per share | 0.35 | 0.37 | 0.43 | 0.47 |
| Net assets per share attributable to the parent company | 3.98 | 4.34 | 2.80 | 3.05 |
Other contents deemed necessary by the Company or required to be disclosed by the securities regulatoryinstitution
□ applicable √ not applicable
2. Changes in restricted shares
√ applicable □ not applicable
Unit: share
| Name of shareholder | Number of restricted shares at the beginning of the period | Desterilization number of restricted shares in the current period | Increase number of restricted shares in the current period | Number of restricted shares at the end of the period | Reasons for restricted shares | Date of lifting sales restriction |
| Wu Yongqiang | 159,006,536 | 0 | 0 | 159,006,536 | Executives lock-in shares | Not applicable |
| Ji Shuhai | 24,613,981 | 4,125,000 | 20,488,981 | Executives lock-in shares | Not applicable | |
| Ma Wei | 5,726,200 | 0 | 225,000 | 5,951,200 | Executives lock-in shares | Not applicable |
| Peng Ganquan | 2,922,674 | 0 | 270,000 | 3,192,674 | Executives lock-in shares | Not applicable |
| Zheng Sibin | 3,932,977 | 0 | 180,000 | 4,112,977 | Executives lock-in shares | Not applicable |
| Wen Zhaohui | 1,581,095 | 0 | 180,000 | 1,761,095 | Executives lock-in shares | Not applicable |
| Dai Huijuan | 239,709 | 0 | 0 | 239,709 | Executives lock-in shares | Not applicable |
| Xiang Wei | 226,125 | 0 | 90,000 | 316,125 | Executives lock-in shares | Not applicable |
| Non-public offering of restricted shares in 2021 | 0 | 0 | 92,105,263 | 92,105,263 | Restricted shares after non-public offering | December 3, 2021 |
| Total | 198,249,297 | 4,125,000 | 93,050,263 | 287,174,560 | -- | -- |
II. Issuance and listing of securities
√ applicable □ not applicable
| Names of stocks and their derivative securities | Issuing date | Issue price (or interest rate) | Issued quantity | Listing Date | Number of shares approved for listing and trading | Termination date of transaction | Disclosure index | Disclosure Date |
| Stock category | ||||||||
| Topband | 2021/4/29 | 11.40 | 92,105,263 | 2021/6/3 | 0 | http://www.cninfo.com.cn | 2021/6/1 | |
Description of securities issuance during the reporting period
On April 29, 2021, the Company privately issued 92,105,263 A-share stocks to 14 subscribers at an issueprice of 11.40 yuan / share, and the total amount of funds raised was 1,049,999,998.20 yuan. After deduction ofthe relevant issuance expenses of 13,152,929.49 yuan (excluding tax), the net amount of funds actually raised was1,036,847,068.71 yuan, of which the increased share capital was 92,105,263.00 yuan, and the capital reserveincreased by 944,741,805.71 yuan. The new shares in this non-public offering were listed on June 3, 2021, andtheir sale will be restricted and locked within 6 months from the date of listing of the new shares. For details, referto the Report of Shenzhen Topband Co., Ltd. on the Issuance of Privately Issued A-Share Stocks and the ListingAnnouncement as published on www.cninfo.com.cn on June 1, 2021.III. Number of shareholders and shareholding situation of the Company
Unit: share
| Total number of common shareholders at the end of the reporting period | 72,451 | Total number of preferred shareholders with voting rights restored at the end of the reporting period (if any) (see Note 8) | 0 | ||||||
| Shareholding of common shareholders holding more than 5% or the top 10 common shareholders | |||||||||
| Name of shareholder | Nature of shareholders | Shareholding Proportion | Number of ordinary shares held at the end of the reporting period | Increase and decrease in the reporting period | Restricted ordinary shares held | Unrestricted ordinary shares held | Pledge, marking or freezing | ||
| Share status | Quantity | ||||||||
| Wu Yongqiang | Domestic natural | 17.12% | 212,008,715 | 0 | 159,006,536 | 53,002,179 | Pledge | 100,320,163 | |
| person | ||||||||
| Hong Kong Securities Clearing Company Ltd. | Overseas legal person | 5.09% | 62,973,224 | 48,699,664 | 0 | 62,973,224 | ||
| Ji Shuhai | Domestic natural person | 2.21% | 27,318,642 | 0 | 20,488,981 | 6,829,661 | ||
| First State Investment Management (UK) Limited - First State Global Umbrella Fund: First State Greater China Growth Fund | Overseas legal person | 1.84% | 22,835,255 | -4,621,100 | 0 | 22,835,255 | ||
| National Social Security Fund 406 Portfolio | Others | 1.57% | 19,498,162 | 19,498,162 | 0 | 19,498,162 | ||
| Xie Renguo | Domestic natural person | 1.48% | 18,280,080 | 1,674,280 | 0 | 18,280,080 | ||
| Agricultural Bank of China Limited - Harvest Emerging Industry Equity Securities Investment Fund | Others | 1.31% | 16,185,354 | 16,185,354 | 5,001,953 | 11,183,401 | ||
| Harvest Fund - Guoxin Investment Co., Ltd. - Harvest Fund - Guoxin No. 2 Single Asset Management Plan | Others | 1.07% | 13,281,957 | 13,281,957 | 4,617,188 | 8,664,769 | ||
| Agricultural Bank of China Limited - Harvest Core Growth Hybrid Securities Investment Fund | Others | 0.87% | 10,806,815 | 10,806,815 | 0 | 10,806,815 | ||
| China Merchants Bank Co., Ltd. - Harvest Vision Selected Two-Year Holding Hybrid Securities Investment Fund | Others | 0.72% | 8,862,500 | 8,862,500 | 0 | 8,862,500 | ||
| The top 10 common shareholders of strategic investors or general legal persons due to placement of new shares (if any) (see Note 3) | None | |||||||
| Description of the above shareholders’ relationship or concerted action | Among the top ten shareholders, the fund manager of Agricultural Bank of China Limited - Harvest Emerging Industry Equity Securities Investment Fund, Harvest Fund - Guoxin Investment Co., Ltd. - Harvest Fund - Guoxin No. 2 Single Asset Management Plan, Agricultural Bank of China Limited - | |||||||
| Harvest Core Growth Hybrid Securities Investment Fund and China Merchants Bank Co., Ltd. - Harvest Vision Selected Two-Year Holding Hybrid Securities Investment Fund is Harvest Fund Management Co., Ltd. In addition to the foregoing, the Company does not know whether the top ten shareholders are related or whether they are persons acting in concert. | |||
| Description of the above shareholders' entrusting / entrusted voting rights and waiver of voting rights | None | ||
| Special explanations for the existence of special repurchase accounts among the top 10 shareholders (if any) (see Note 11) | At the end of the reporting period, the Company's special securities repurchase account held 14,838,920 ordinary shares in RMB of the Company, which accounted for 1.20% of the Company's total share capital. | ||
| Shareholding of the top 10 common shareholders without trading restrictions | |||
| Name of shareholder | Number of ordinary shares held without trading restrictions at the end of the reporting period | Types of shares | |
| Types of shares | Quantity | ||
| Hong Kong Securities Clearing Company Ltd. | 62,973,224 | RMB ordinary share | 62,973,224 |
| Wu Yongqiang | 53,002,179 | RMB ordinary share | 53,002,179 |
| First State Investment Management (UK) Limited - First State Global Umbrella Fund: First State Greater China Growth Fund | 22,835,255 | RMB ordinary share | 22,835,255 |
| National Social Security Fund 406 Portfolio | 19,498,162 | RMB ordinary share | 19,498,162 |
| Xie Renguo | 18,280,080 | RMB ordinary share | 18,280,080 |
| Agricultural Bank of China Limited - Harvest Emerging Industry Equity Securities Investment Fund | 11,183,401 | RMB ordinary share | 11,183,401 |
| Agricultural Bank of China Limited - Harvest Core Growth Hybrid Securities Investment Fund | 10,806,815 | RMB ordinary share | 10,806,815 |
| China Merchants Bank Co., Ltd. - Harvest Vision Selected Two-Year Holding Hybrid Securities Investment Fund | 8,862,500 | RMB ordinary share | 8,862,500 |
| Harvest Fund - Guoxin Investment Co., Ltd. - Harvest Fund - Guoxin No. 2 Single Asset Management Plan | 8,664,769 | RMB ordinary share | 8,664,769 |
| China CITIC Bank Co., Ltd. - HFT Growth Value Hybrid Securities Investment Fund | 8,336,482 | RMB ordinary share | 8,336,482 |
| Description of the association relationship or concerted action between the top 10 | Among the top ten shareholders, the fund manager of Agricultural Bank of China - Harvest Emerging Industry Equity Securities Investment Fund, Agricultural Bank of China - Harvest Core | ||
| common shareholders without sale restriction conditions and between the top 10 common shareholders without sale restriction conditions and the top 10 common shareholders | Growth Hybrid Securities Investment Fund, China Merchants Bank - Harvest Vision Selected Two-Year Holding Hybrid Securities Investment Fund and Harvest Fund - Guoxin Investment Co., Ltd. - Harvest Fund - Guoxin No. 2 Single Asset Management Plan is Harvest Fund Management Co., Ltd.In addition to the foregoing, the Company does not know whether the top ten shareholders are related or whether they are persons acting in concert. |
| Description of the participation of the top 10 common shareholders in securities margin trading (if any) (see Note 4) | None |
Whether the top 10 common shareholders and the top 10 shareholders of the ordinary share without tradingrestrictions have conducted the agreed repurchase transactions during the reporting period
□ Yes √ No
The top 10 common shareholders of ordinary share and the top 10 shareholders of ordinary share without tradingrestrictions did not carry out the agreed repurchase transaction during the reporting period.
IV. Changes in shareholding of directors, supervisors and senior executives
√ applicable □ not applicable
| Name | Position | Position status | Number of shares held at the beginning of the period (shares) | Number of additional shares held in the current period (shares) | Number of shares reduced in the current period (shares) | Number of shares held at the end of the period (shares) | Number of restricted shares granted at the beginning of the period (shares) | Number of restricted shares granted in the current period (shares) | Number of restricted shares granted at the end of the period (shares) |
| Wu Yongqiang | Chairman of the Board | Incumbent | 212,008,715 | 212,008,715 | |||||
| Ji Shuhai | Director | Incumbent | 27,318,642 | 27,318,642 | |||||
| Zheng Sibin | Director and deputy general manager | Incumbent | 5,243,970 | 240,000 | 5,483,970 | ||||
| Ma Wei | Director and deputy general manager | Incumbent | 7,634,934 | 300,000 | 7,934,934 | ||||
| Peng Ganquan | Director | Incumbent | 3,896,900 | 360,000 | 4,256,900 | ||||
| Wu Hang | Director | Incumbent | 0 | ||||||
| Hua | Independent | Incumbent | 0 |
| Xiuping | director | ||||||||
| Shi Yun | Independent director | Outgoing | 0 | ||||||
| Li Xumeng | Independent director | Incumbent | 0 | ||||||
| Huang Yuegang | Independent director | Incumbent | 0 | ||||||
| Wen Zhaohui | Deputy general manager, secretary of the Board and investment director | Incumbent | 2,108,127 | 240,000 | 2,348,127 | ||||
| Xiang Wei | Chief financial officer | Incumbent | 301,500 | 120,000 | 421,500 | ||||
| Dai Huijuan | Supervisor | Incumbent | 319,612 | 319,612 | |||||
| Kang Weiquan | Supervisor | Incumbent | |||||||
| Chen Jinzhou | Supervisor | Outgoing | 0 | ||||||
| Total | -- | -- | 258,832,400 | 1,260,0001 | 0 | 260,092,400 | 0 | 0 | 0 |
Note 1: Among the above increased shares held in the current period, the exercise of stock options by directors and senior executivesincreased by 1.2 million shares, and Ms. Wen Zhaohui, who served as deputy general manager, secretary of the Board of Directorsand investment director in the Company, increased 60,000 shares in the secondary market.
V. Change of controlling shareholder or actual controller
Change of controlling shareholders during the reporting period
□ applicable √ not applicable
The controlling shareholder of the Company did not change during the reporting period.Change of actual controller during the reporting period
□ applicable √ not applicable
The actual controller of the Company did not change during the reporting period.
Section VIII Information on Preferred Shares
□ applicable √ not applicable
The Company did not have preferred shares during the reporting period.
Section IX Relevant Information of Bonds
□ applicable √ not applicable
Section X Financial ReportI. Audit reportHas the Semiannual Report been audited
□ Yes √ No
The semiannual financial report of the Company has not been audited.II. Financial StatementsThe unit of statements in the financial notes is: Yuan (RMB)
1. Consolidated balance sheet
Prepared by: Shenzhen Topband Co., Ltd.
June 30, 2021
Unit: Yuan
| Items | June 30, 2021 | December 31, 2020 |
| Current assets: | ||
| Monetary capital | 1,289,864,224.89 | 1,219,095,476.50 |
| Settlement of provisions | ||
| Loans to other banks | ||
| Trading financial assets | 330,421,910.87 | 226,491,482.10 |
| Derivative financial assets | ||
| Notes receivable | 68,545,551.44 | 39,477,930.63 |
| Accounts receivable | 2,043,391,892.07 | 1,701,111,153.84 |
| Receivables financing | 289,248,841.88 | 246,656,027.27 |
| Prepayments | 31,232,814.57 | 17,735,229.99 |
| Premiums receivable | ||
| Reinsurance accounts receivable | ||
| Reinsurance contract reserves receivable | ||
| Other receivables | 19,880,174.91 | 40,728,126.64 |
| Including: interest receivable |
| Dividends receivable | ||
| Repurchase of financial assets for resale | ||
| Inventory | 1,876,064,400.39 | 1,115,312,868.62 |
| Contractual assets | ||
| Assets held for sale | ||
| Non-current assets due within one year | ||
| Other current assets | 117,000,552.09 | 68,175,222.37 |
| Total current assets | 6,065,650,363.11 | 4,674,783,517.96 |
| Non-current assets: | ||
| Loans and advances granted | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term receivables | ||
| Long-term equity investment | 15,111,937.35 | 6,502,528.13 |
| Other equity instrument investment | ||
| Other non-current financial assets | ||
| Investment real estate | 88,106,690.01 | 89,238,265.71 |
| Fixed assets | 1,165,010,173.60 | 1,096,875,640.94 |
| Construction in progress: | 386,601,265.30 | 292,474,798.41 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Use right assets | 69,398,303.91 | |
| Intangible assets | 367,214,534.15 | 309,794,540.63 |
| Development expenditure | 83,564,062.23 | 68,518,375.79 |
| Goodwill | 110,584,369.36 | 108,637,368.48 |
| Long-term deferred expenses | 83,025,073.79 | 72,077,671.09 |
| Deferred income tax assets | 77,026,168.91 | 55,192,974.75 |
| Other non-current assets | 107,814,528.35 | 34,639,355.39 |
| Total non-current assets | 2,553,457,106.96 | 2,133,951,519.32 |
| Total assets | 8,619,107,470.07 | 6,808,735,037.28 |
| Current liabilities: | ||
| Short-term loans | 135,890,741.95 | 402,151,500.00 |
| Borrowing money from the central bank | ||
| Borrowed funds |
| Trading financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | 1,009,181,787.24 | 715,574,653.91 |
| Accounts payable | 1,882,551,558.88 | 1,549,906,339.72 |
| Advance receipt | 294,460.10 | 487,267.17 |
| Contractual liabilities | 78,883,302.66 | 72,576,117.56 |
| Financial assets sold for repurchase | ||
| Deposit absorption and interbank deposit | ||
| Acting trading securities | ||
| Acting underwriting securities | ||
| Employee compensation payable | 85,602,453.15 | 175,503,764.12 |
| Taxes payable | 34,339,526.87 | 60,256,015.60 |
| Other payables | 69,253,389.96 | 57,160,615.93 |
| Including: Interest payable | ||
| Dividends payable | ||
| Service charges and commissions payable | ||
| Reinsurance accounts payable | ||
| Liabilities held for sale | ||
| Non-current liabilities due within one year | 38,891,387.34 | |
| Other current liabilities | ||
| Total current liabilities | 3,334,888,608.15 | 3,033,616,274.01 |
| Non-current liabilities | ||
| Insurance contract reserve | ||
| Long-term loans | 169,564,000.00 | 200,000,000.00 |
| Bonds payable | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | 54,349,922.77 | |
| Long-term payables | ||
| Long-term employee compensation payable | ||
| Estimated liabilities | ||
| Deferred income | 15,984,300.00 | 14,624,770.00 |
| Deferred income tax liabilities | 26,520,140.43 | 11,819,861.30 |
| Other non-current liabilities |
| Total non-current liabilities | 266,418,363.20 | 226,444,631.30 |
| Total liabilities | 3,601,306,971.35 | 3,260,060,905.31 |
| Owner's equity: | ||
| Share capital | 1,238,254,672.00 | 1,135,216,809.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserves | 1,960,086,381.40 | 956,734,039.75 |
| Less: treasury shares | 80,017,965.68 | 80,017,965.68 |
| Other comprehensive income | -42,563,250.94 | -24,555,229.97 |
| Special reserve | ||
| Surplus reserves | 151,359,957.53 | 151,359,957.53 |
| General risk provision | ||
| Undistributed profit | 1,696,564,549.49 | 1,324,944,369.91 |
| Total owner's equity attributable to the parent company | 4,923,684,343.80 | 3,463,681,980.54 |
| Minority equity | 94,116,154.92 | 84,992,151.43 |
| Total owners' equity | 5,017,800,498.72 | 3,548,674,131.97 |
| Total liabilities and owners' equity | 8,619,107,470.07 | 6,808,735,037.28 |
| Legal Representative: Wu Yongqiang | Accounting Head: Xiang Wei | Accounting Department Head: Xiang Wei |
2. Balance sheet of the parent company
Unit: Yuan
| Items | June 30, 2021 | December 31, 2020 |
| Current assets: | ||
| Monetary capital | 879,435,960.62 | 705,163,083.52 |
| Trading financial assets | 249,934,410.87 | 102,133,982.10 |
| Derivative financial assets | ||
| Notes receivable | 35,595,124.85 | 6,939,021.98 |
| Accounts receivable | 1,270,734,326.96 | 896,265,475.70 |
| Receivables financing | 234,949,010.36 | 217,543,679.19 |
| Prepayments | 5,648,082.47 | 6,953,106.28 |
| Other receivables | 35,903,482.71 | 41,159,647.12 |
| Including: interest receivable |
| Dividends receivable | ||
| Inventory | 263,579,317.26 | 209,965,269.91 |
| Contractual assets | ||
| Assets held for sale | ||
| Non-current assets due within one year | ||
| Other current assets | 21,748,429.53 | 12,054,327.33 |
| Total current assets | 2,997,528,145.63 | 2,198,177,593.13 |
| Non-current assets: | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term receivables | ||
| Long-term equity investment | 2,430,013,395.44 | 2,200,934,231.94 |
| Other equity instrument investment | ||
| Other non-current financial assets | ||
| Investment real estate | ||
| Fixed assets | 134,147,372.89 | 120,829,877.70 |
| Construction in progress: | 1,435,904.64 | 2,392,458.84 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Use right assets | 697,546.57 | |
| Intangible assets | 134,596,577.03 | 132,732,792.93 |
| Development expenditure | 61,286,664.99 | 44,248,718.56 |
| Goodwill | ||
| Long-term deferred expenses | 24,319,292.31 | 27,739,322.93 |
| Deferred income tax assets | 42,163,062.25 | 27,692,977.98 |
| Other non-current assets | 9,917,663.95 | 6,997,597.90 |
| Total non-current assets | 2,838,577,480.07 | 2,563,567,978.78 |
| Total assets | 5,836,105,625.70 | 4,761,745,571.91 |
| Current liabilities: | ||
| Short-term loans | 50,000,000.00 | 102,151,500.00 |
| Trading financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | 720,962,031.81 | 696,684,142.33 |
| Accounts payable | 352,811,969.26 | 471,203,775.42 |
| Advance receipt | ||
| Contractual liabilities | 35,468,003.49 | 29,103,190.50 |
| Employee compensation payable | 33,507,303.52 | 91,953,399.79 |
| Taxes payable | 12,243,422.66 | 28,211,920.73 |
| Other payables | 298,986,605.60 | 299,042,515.61 |
| Including: Interest payable | ||
| Dividends payable | ||
| Liabilities held for sale | ||
| Non-current liabilities due within one year | 318,306.63 | |
| Other current liabilities | ||
| Total current liabilities | 1,504,297,642.97 | 1,718,350,444.38 |
| Non-current liabilities | ||
| Long-term loans | ||
| Bonds payable | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | 337,314.33 | |
| Long-term payables | ||
| Long-term employee compensation payable | ||
| Estimated liabilities | ||
| Deferred income | 9,869,500.00 | 10,535,500.00 |
| Deferred income tax liabilities | 22,842,926.07 | 8,106,676.00 |
| Other non-current liabilities | ||
| Total non-current liabilities | 33,049,740.40 | 18,642,176.00 |
| Total liabilities | 1,537,347,383.37 | 1,736,992,620.38 |
| Owner's equity: | ||
| Share capital | 1,238,254,672.00 | 1,135,216,809.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserves | 2,010,834,687.21 | 1,007,315,299.41 |
| Less: treasury shares | 80,017,965.68 | 80,017,965.68 |
| Other comprehensive income | 5,316,991.05 | 5,569,575.04 |
| Special reserve |
| Surplus reserves | 151,331,439.07 | 151,331,439.07 |
| Undistributed profit | 973,038,418.68 | 805,337,794.69 |
| Total owners' equity | 4,298,758,242.33 | 3,024,752,951.53 |
| Total liabilities and owners' equity | 5,836,105,625.70 | 4,761,745,571.91 |
3. Consolidated income statement
Unit: Yuan
| Items | Semiannual period of 2021 | Semiannual period of 2020 |
| I. Total operating income | 3,644,045,612.40 | 1,997,427,900.70 |
| Including: operating income | 3,644,045,612.40 | 1,997,427,900.70 |
| Interest income | ||
| Premium earned | ||
| Service charge and commission income | ||
| II. Total operating costs | 3,178,835,573.38 | 1,825,721,505.86 |
| Including: Operating cost | 2,765,295,741.39 | 1,526,098,258.54 |
| Interest expense | ||
| Service charge and commission payment | ||
| Surrender value | ||
| Net compensation expenditure | ||
| Net reserve amount set aside for insurance liability | ||
| Policy dividend payment | ||
| Reinsurance expenses | ||
| Taxes and surcharges | 13,278,244.24 | 10,668,199.68 |
| Sales expenses | 76,889,884.59 | 59,922,424.82 |
| Management expenses | 94,842,819.69 | 66,326,771.94 |
| Research and development expenses | 174,767,726.31 | 133,752,741.51 |
| Finance charges | 53,761,157.16 | 28,953,109.37 |
| Including: Interest expenses | 6,676,232.42 | 27,903,509.75 |
| Interest income | 4,397,537.66 | 4,449,371.38 |
| Plus: other income | 12,006,181.38 | 19,504,668.08 |
| Return on investment (loss marked with "-") | 23,876,616.37 | 77,494,488.36 |
| Including: income from investment in associated enterprises and joint ventures | -1,390,590.78 | -144,574.55 |
| Income from derecognition of financial assets measured at |
| amortized cost | ||
| Exchange gains (loss marked with "-") | ||
| Net exposure hedge gain (loss marked with "-") | ||
| Income from changes in fair value (loss marked with "-") | 98,312,768.52 | 3,711,170.46 |
| Credit impairment loss (loss marked with "-") | -15,163,819.96 | 2,991,413.90 |
| Asset impairment loss (loss marked with "-") | -99,292,387.41 | -23,788,421.51 |
| Income from disposal of assets (loss marked with "-") | -317,178.75 | -893,602.45 |
| III. Operating profit (loss marked with "-") | 484,632,219.17 | 250,726,111.68 |
| Plus: non-operating income | 1,581,081.80 | 977,834.68 |
| Less: non-operating expenses | 4,486,165.70 | 3,168,658.11 |
| IV. Total profit (total loss marked with "-") | 481,727,135.27 | 248,535,288.25 |
| Less: income tax expense | 45,639,842.16 | 27,524,309.02 |
| V. Net profit (net loss marked with "-") | 436,087,293.11 | 221,010,979.23 |
| (I) Classification according to business continuity | ||
| 1. Net profit from continuing operation (net loss marked with "-") | 436,087,293.11 | 221,010,979.23 |
| 2. Net profit from termination of operation (net loss marked with "-") | ||
| (II) Classification according to ownership | ||
| 1. Net profits attributable to the owner of the parent company | 428,185,704.03 | 208,913,599.16 |
| 2. Profits and losses of minority shareholders | 7,901,589.08 | 12,097,380.07 |
| VI. Net after-tax amount of other comprehensive income | -18,008,020.97 | -5,441,663.04 |
| Net after-tax amount of other comprehensive income attributable to the owner of the parent company | -18,008,020.97 | -5,441,663.04 |
| (I) Other comprehensive income that cannot be reclassified into profits or losses | ||
| 1. Remeasurement of changes in defined benefit plans | ||
| 2. Other comprehensive income that cannot be transferred to profits and losses under the equity method | ||
| 3. Changes in the fair value of other equity instrument investments | ||
| 4. Changes in fair value of the enterprise's own credit risk | ||
| 5. Others | ||
| (II) Other comprehensive income that is reclassified into profits and losses | -18,008,020.97 | -5,441,663.04 |
| 1. Other comprehensive income transferable to profits and losses under the equity method | ||
| 2. Changes in the fair value of other debt investments | ||
| 3. Amount of financial assets reclassified into other comprehensive income | ||
| 4. Provision for credit impairment of other debt investment | ||
| 5. Cash flow hedge reserve | ||
| 6. Difference in translation of foreign-currency financial statements | -17,755,436.98 | -5,441,663.04 |
| 7. Others | -252,583.99 | |
| Net after-tax amount of other comprehensive income attributable to minority shareholders | ||
| VII. Total comprehensive income | 418,079,272.14 | 215,569,316.19 |
| Total consolidated income attributable to the owners of the parent company | 410,177,683.06 | 203,471,936.12 |
| Total consolidated income attributable to minority shareholders | 7,901,589.08 | 12,097,380.07 |
| VIII. Earnings per share: | ||
| (I) Basic earnings per share | 0.38 | 0.20 |
| (II) Diluted earnings per share | 0.37 | 0.19 |
In case of merger of enterprises under the same control in the current period, the net profit realized by thecombined party before the merger is 0 yuan, and the net profit realized by the combined party in the previousperiod is 0 yuan.
| Legal Representative: Wu Yongqiang | Accounting Head: Xiang Wei | Accounting Department Head: Xiang Wei |
4. Income statement of the parent company
Unit: Yuan
| Items | Semiannual period of 2021 | Semiannual period of 2020 |
| I. Operating income | 2,161,935,231.31 | 1,263,648,661.10 |
| Less: operating cost | 1,795,042,018.32 | 1,047,271,899.65 |
| Taxes and surcharges | 4,438,662.57 | 5,684,505.03 |
| Sales expenses | 46,844,689.71 | 34,755,904.46 |
| Management expenses | 58,380,674.25 | 44,015,940.91 |
| Research and development expenses | 93,574,802.25 | 81,007,968.60 |
| Finance charges | 32,579,149.03 | 26,300,463.75 |
| Including: Interest expense | 1,261,238.91 | 23,717,076.39 |
| Interest income | 2,906,961.53 | 3,646,196.88 |
| Plus: other income | 4,582,626.08 | 12,634,521.80 |
| Return on investment (loss marked with "-") | 37,623,948.49 | 79,877,364.53 |
| Including: income from investment in associated enterprises and joint ventures | -495,808.80 | -144,574.55 |
| Income from derecognition of financial assets measured at amortized cost (loss marked with "-") | 0.00 | 0.00 |
| Net exposure hedge gain (loss marked with "-") | 0.00 | 0.00 |
| Income from changes in fair value (loss marked with "-") | 98,312,768.52 | 3,711,170.46 |
| Credit impairment loss (loss marked with "-") | -9,738,998.19 | 2,353,332.04 |
| Asset impairment loss (loss marked with "-") | -5,238,034.46 | -4,583,523.18 |
| Income from disposal of assets (loss marked with "-") | 699,460.42 | -308,498.91 |
| II. Operating profit (loss marked with "-") | 257,317,006.04 | 118,296,345.44 |
| Plus: non-operating income | 154,957.57 | 409,169.15 |
| Less: non-operating expenses | 2,818,249.19 | 1,962,144.73 |
| III. Total profit (total loss marked with "-") | 254,653,714.42 | 116,743,369.86 |
| Less: income tax expense | 30,387,565.98 | 13,615,774.91 |
| IV. Net profit (net loss marked with "-") | 224,266,148.44 | 103,127,594.95 |
| (I) Net profit from continuing operation (net loss marked with "-") | 224,266,148.44 | 103,127,594.95 |
| (II) Net profit from termination of operation (net loss marked with "-") | ||
| V. Net after-tax amount of other comprehensive income | 0.00 | 0.00 |
| (I) Other comprehensive income that cannot be reclassified into profits or losses | 0.00 | 0.00 |
| 1. Remeasurement of changes in defined benefit plans | 0.00 | 0.00 |
| 2. Other comprehensive income that cannot be transferred to profits and losses under the equity method | 0.00 | 0.00 |
| 3. Changes in the fair value of other equity instrument investments | 0.00 | 0.00 |
| 4. Changes in fair value of the enterprise's own credit risk | 0.00 | 0.00 |
| 5. Others | 0.00 | 0.00 |
| (II) Other comprehensive income that is reclassified into profits and losses | 0.00 | 0.00 |
| 1. Other comprehensive income transferable to profits and | 0.00 | 0.00 |
| losses under the equity method | ||
| 2. Changes in the fair value of other debt investments | 0.00 | 0.00 |
| 3. Amount of financial assets reclassified into other comprehensive income | 0.00 | 0.00 |
| 4. Provision for credit impairment of other debt investment | 0.00 | 0.00 |
| 5. Cash flow hedge reserve | 0.00 | 0.00 |
| 6. Difference in translation of foreign-currency financial statements | 0.00 | 0.00 |
| 7. Others | -252,583.99 | 0.00 |
| VI. Total comprehensive income | 224,266,148.44 | 103,127,594.95 |
| VII. Earnings per share: | ||
| (I) Basic earnings per share | 0.20 | 0.10 |
| (II) Diluted earnings per share | 0.20 | 0.10 |
5. Consolidated cash flow statement
Unit: Yuan
| Items | Semiannual period of 2021 | Semiannual period of 2020 |
| I. Cash flow from operating activities: | ||
| Cash received from selling goods and providing services | 3,223,676,867.56 | 2,072,020,392.01 |
| Net increase in customer deposits and interbank deposits | ||
| Net increase in borrowing from the central bank | ||
| Net increase in funds borrowed from other financial institutions | ||
| Cash from receipt of original insurance contract premiums | ||
| Receipt of net cash for reinsurance operations | ||
| Net increase in savings and investment funds of the insured | ||
| Cash from receipt of interest, service charges and commissions | ||
| Net increase in borrowed funds | ||
| Net increase in funds from repurchase operations | ||
| Net cash received for acting trading securities | ||
| Tax rebates received | 211,748,519.91 | 118,278,020.67 |
| Receipt of other cash related to operating activities | 31,046,302.40 | 68,964,767.70 |
| Subtotal of cash inflow from operating activities | 3,466,471,689.87 | 2,259,263,180.38 |
| Cash paid for purchasing goods and accepting services | 2,793,464,547.98 | 1,557,251,884.99 |
| Net increase in customer loans and advances | ||
| Net increase in deposits with central banks and interbanks |
| Cash for payment of claims under original insurance contracts | ||
| Net increase in lending funds | ||
| Cash for payment of interest, service charges and commissions | ||
| Cash for payment of policy dividends | ||
| Cash paid to and for employees | 671,904,067.00 | 444,463,597.74 |
| Various taxes paid | 113,796,964.36 | 45,335,658.19 |
| Other cash paid in connection with operating activities | 113,011,848.65 | 93,075,786.27 |
| Subtotal of cash outflow from operating activities | 3,692,177,427.99 | 2,140,126,927.19 |
| Net cash flow from operating activities | -225,705,738.12 | 119,136,253.19 |
| II. Cash flow from investing activities: | ||
| Cash received from investment recovery | 349,382,339.75 | 337,273,086.77 |
| Cash received as return on an investment | 25,253,304.38 | 77,680,146.00 |
| Net cash recovered from the disposal of fixed assets, intangible assets and other long-term assets | 815,062.65 | 415,293.95 |
| Net cash recovered from the disposal of subsidiaries and other business units | ||
| Other cash received relating to investment activities | 0.00 | |
| Subtotal of cash inflow from investment activities | 375,450,706.78 | 415,368,526.72 |
| Cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets | 402,240,855.04 | 248,825,375.57 |
| Cash paid for investment | 371,250,000.00 | 317,000,000.00 |
| Net increase in pledged loans | ||
| Net cash paid for acquiring subsidiaries and other business units | 11,282,386.79 | 0.00 |
| Other cash paid in connection with investment activities | 0.00 | 0.00 |
| Subtotal of cash outflow from investment activities | 784,773,241.83 | 565,825,375.57 |
| Net cash flow from investment activities | -409,322,535.05 | -150,456,848.85 |
| III. Cash flow from financing activities: | ||
| Cash received from absorbing investment | 1,078,017,195.75 | 44,442,375.30 |
| Including: cash received by subsidiaries' absorption of minority shareholders' investment | ||
| Cash received from loans | 255,055,700.02 | 298,786,666.67 |
| Other cash received in connection with financing activities | 18,039,024.44 | 52,360,005.58 |
| Subtotal of cash inflow from financing activities | 1,351,111,920.21 | 395,589,047.55 |
| Cash paid to repay debts | 527,265,500.00 | 108,000,000.00 |
| Cash paid to distribute dividends, profits or pay interest | 65,867,823.74 | 83,169,748.80 |
| Including: dividends and profits paid by subsidiaries to minority shareholders | 4,061,400.15 | |
| Other cash paid in connection with financing activities | 9,060,059.78 | 86,644,356.40 |
| Subtotal of cash outflow from financing activities | 602,193,383.52 | 277,814,105.20 |
| Net cash flow from financing activities | 748,918,536.69 | 117,774,942.35 |
| IV. Impact of exchange rate fluctuations on cash and cash equivalents | -26,342,339.58 | -210,323.52 |
| V. Net increase in cash and cash equivalents | 87,547,923.94 | 86,244,023.17 |
| Plus: balance of cash and cash equivalents at the beginning of the period | 1,196,835,834.93 | 761,845,320.50 |
| VI. Balance of cash and cash equivalents at the end of the period | 1,284,383,758.87 | 848,089,343.67 |
6. Cash flow statement of the parent company
Unit: Yuan
| Items | Semiannual period of 2021 | Semiannual period of 2020 |
| I. Cash flow from operating activities: | ||
| Cash received from selling goods and providing services | 2,021,396,547.85 | 1,492,388,161.16 |
| Tax rebates received | 142,309,354.93 | 75,259,932.18 |
| Receipt of other cash related to operating activities | 424,206,181.63 | 452,608,881.68 |
| Subtotal of cash inflow from operating activities | 2,587,912,084.41 | 2,020,256,975.02 |
| Cash paid for purchasing goods and accepting services | 2,356,322,702.66 | 1,057,280,107.03 |
| Cash paid to and for employees | 269,073,726.98 | 220,884,221.13 |
| Various taxes paid | 44,861,325.36 | 13,941,413.27 |
| Other cash paid in connection with operating activities | 392,382,205.31 | 442,833,120.19 |
| Subtotal of cash outflow from operating activities | 3,062,639,960.31 | 1,734,938,861.62 |
| Net cash flow from operating activities | -474,727,875.90 | 285,318,113.40 |
| II. Cash flow from investing activities: | ||
| Cash received from investment recovery | 512,339.75 | 59,273,086.77 |
| Cash received as return on an investment | 38,119,757.29 | 80,005,428.67 |
| Net cash recovered from the disposal of fixed assets, intangible assets and other long-term assets | 564,922.65 | 312,800.00 |
| Net cash recovered from the disposal of subsidiaries and other business units | 0.00 | 0.00 |
| Other cash received relating to investment activities | 0.00 | 0.00 |
| Subtotal of cash inflow from investment activities | 39,197,019.69 | 139,591,315.44 |
| Cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets | 71,540,415.92 | 37,562,393.32 |
| Cash paid for investment | 279,794,442.93 | 281,643,000.00 |
| Net cash paid for acquiring subsidiaries and other business units | 0.00 | 0.00 |
| Other cash paid in connection with investment activities | 0.00 | 0.00 |
| Subtotal of cash outflow from investment activities | 351,334,858.85 | 319,205,393.32 |
| Net cash flow from investment activities | -312,137,839.16 | -179,614,077.88 |
| III. Cash flow from financing activities: | ||
| Cash received from absorbing investment | 1,078,017,195.75 | 44,442,375.30 |
| Cash received from loans | 170,000,000.00 | 0.00 |
| Other cash received in connection with financing activities | 8,672,342.48 | 18,199,609.19 |
| Subtotal of cash inflow from financing activities | 1,256,689,538.23 | 62,641,984.49 |
| Cash paid to repay debts | 218,569,500.00 | 100,000,000.00 |
| Cash paid to distribute dividends, profits or pay interest | 57,431,645.93 | 75,722,595.33 |
| Other cash paid in connection with financing activities | 2,494,819.08 | 46,094,403.16 |
| Subtotal of cash outflow from financing activities | 278,495,965.01 | 221,816,998.49 |
| Net cash flow from financing activities | 978,193,573.22 | -159,175,014.00 |
| IV. Impact of exchange rate fluctuations on cash and cash equivalents | -9,917,875.85 | -489,772.91 |
| V. Net increase in cash and cash equivalents | 181,409,982.31 | -53,960,751.39 |
| Plus: balance of cash and cash equivalents at the beginning of the period | 696,490,741.04 | 367,236,925.96 |
| VI. Balance of cash and cash equivalents at the end of the period | 877,900,723.35 | 313,276,174.57 |
7. Consolidated statement of changes in owner's equity
Current amount
Unit: Yuan
| Items | Semiannual period of 2021 | ||||||||||||||
| Owner's equity attributable to the parent company | Minority equity | Total owners' equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: treasury shares | Other comprehensive income | Special reserve | Surplus reserves | General risk provision | Undistributed profit | Others | Subtotal | |||||
| Preferred shares | Perpetual bonds | Others | |||||||||||||
| I. Ending balance of last year | 1,135,216,809.00 | 0.00 | 0.00 | 0.00 | 956,734,039.75 | 80,017,965.68 | -24,555,229.97 | 0.00 | 151,359,957.53 | 0.00 | 1,324,944,369.91 | 0.00 | 3,463,681,980.54 | 84,992,151.43 | 3,548,674,131.97 |
| Plus: Changes in accounting policies | 0.00 | ||||||||||||||
| Early error correction | 0.00 | ||||||||||||||
| Merger of enterprises under the same control | 0.00 | ||||||||||||||
| Others | 0.00 | ||||||||||||||
| II. Balance at the beginning of the current year | 1,135,216,809.00 | 0.00 | 0.00 | 0.00 | 956,734,039.75 | 80,017,965.68 | -24,555,229.97 | 0.00 | 151,359,957.53 | 0.00 | 1,324,944,369.91 | 3,463,681,980.54 | 84,992,151.43 | 3,548,674,131.97 | |
| III. Amount of increase or decrease in the current period (decrease marked with "-") | 103,037,863.00 | 0.00 | 0.00 | 0.00 | 1,003,352,341.65 | 0.00 | -18,008,020.97 | 0.00 | 0.00 | 0.00 | 371,620,179.58 | 1,460,002,363.26 | 9,124,003.49 | 1,469,126,366.75 | |
| (I) Total comprehensive income | -18,008,020.97 | 428,185,704.03 | 410,177,683.06 | 7,901,589.08 | 418,079,272.14 | ||||||||||
| (II) Capital invested and | 103,037,863.00 | 976,663,746.46 | 1,079,701,609.46 | 1,079,701,609.46 | |||||||||||
| reduced by owners | |||||||||||||||
| 1.Ordinary shares invested by owners | 103,037,863.00 | 982,896,579.72 | 1,085,934,442.72 | 1,085,934,442.72 | |||||||||||
| 2.Capital contributed by holders of other equity instruments | 0.00 | ||||||||||||||
| 3.Amount of share-based payment included in owner's equity | -6,232,833.26 | -6,232,833.26 | -6,232,833.26 | ||||||||||||
| 4.Others | |||||||||||||||
| (III) Profit distribution | -56,565,524.45 | -56,565,524.45 | -5,197,835.08 | -61,763,359.53 | |||||||||||
| 1.Withdrawal of surplus reserve | |||||||||||||||
| 2.Withdrawal of general risk provision | |||||||||||||||
| 3.Distribution to owners (or shareholders) | -56,565,524.45 | -56,565,524.45 | -5,197,835.08 | -61,763,359.53 | |||||||||||
| 4.Others | |||||||||||||||
| (IV) Internal carryover of owner's equity | |||||||||||||||
| 1.Conversion of capital reserves to additional capital (or share capital) | |||||||||||||||
| 2.Conversion of surplus reserves to additional capital (or share capital) | |||||||||||||||
| 3.Losses covered with surplus reserve |
| 4.Change of defined benefit plans carried forward to retained earnings | |||||||||||||||
| 5.Other comprehensive income carried forward to retained earnings | |||||||||||||||
| 6.Others | |||||||||||||||
| (V) Special reserve | |||||||||||||||
| 1.Withdrawal in the current period | |||||||||||||||
| 2.Use in the current period | |||||||||||||||
| (VI) Others | 26,688,595.19 | 26,688,595.19 | 6,420,249.49 | 33,108,844.68 | |||||||||||
| IV. Ending balance of the current period | 1,238,254,672.00 | 1,960,086,381.40 | 80,017,965.68 | -42,563,250.94 | 151,359,957.53 | 1,696,564,549.49 | 4,923,684,343.80 | 94,116,154.92 | 5,017,800,498.72 |
Amount of the previous period
Unit: Yuan
| Items | Semiannual period of 2020 | ||||||||||||||
| Owner's equity attributable to the parent company | Minority equity | Total owners' equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: treasury shares | Other comprehensive income | Special reserve | Surplus reserves | General risk provision | Undistributed profit | Others | Subtotal | |||||
| Preferred shares | Perpetual bonds | Others | |||||||||||||
| I. Ending balance of last year | 1,018,775,769.00 | 104,535,879.24 | 456,556,282.32 | 60,009,612.52 | -3,059,762.06 | 127,284,211.74 | 866,301,932.11 | 2,510,384,699.83 | 124,782,540.90 | 2,635,167,240.73 | |||||
| Plus: Changes in accounting policies | |||||||||||||||
| Early error correction | |||||||||||||||
| Merger of enterprises under the same control | |||||||||||||||
| Others | |||||||||||||||
| II. Balance at the beginning of the current year | 1,018,775,769.00 | 104,535,879.24 | 456,556,282.32 | 60,009,612.52 | -3,059,762.06 | 127,284,211.74 | 866,301,932.11 | 2,510,384,699.83 | 124,782,540.90 | 2,635,167,240.73 | |||||
| III. Amount of increase or decrease in the current period (decrease marked with "-") | 12,036,415.00 | -21,976.27 | 37,931,231.49 | 20,008,353.16 | -5,441,663.04 | 0.00 | 158,114,968.70 | 182,610,622.72 | 8,035,979.92 | 190,646,602.64 | |||||
| (I) Total comprehensive income | -5,441,663.04 | 208,913,599.16 | 203,471,936.12 | 12,097,380.07 | 215,569,316.19 | ||||||||||
| (II) Capital invested and reduced by owners | 12,036,415.00 | -21,976.27 | 37,108,916.43 | 20,008,353.16 | 29,115,002.00 | 29,115,002.00 | |||||||||
| 1.Ordinary shares invested by owners | 12,014,700.00 | 39,748,172.38 | 51,762,872.38 | 51,762,872.38 | |||||||||||
| 2.Capital contributed by holders of other equity instruments | 21,715.00 | -21,976.27 | 98,540.52 | 98,279.25 | 98,279.25 | ||||||||||
| 3.Amount of share-based payment included in owner's equity | 4,582,020.53 | 4,582,020.53 | 4,582,020.53 | ||||||||||||
| 4.Others | -7,319,817.00 | 20,008,353.16 | -27,328,170.16 | -27,328,170.16 | |||||||||||
| (III) Profit distribution | -50,798,630.46 | -50,798,630.46 | -4,061,400.15 | -54,860,030.61 | |||||||||||
| 1.Withdrawal of surplus reserve | |||||||||||||||
| 2.Withdrawal of general risk provision | |||||||||||||||
| 3.Distribution to owners (or shareholders) | -50,798,630.46 | -50,798,630.46 | -4,061,400.15 | -54,860,030.61 | |||||||||||
| 4.Others | |||||||||||||||
| (IV) Internal carryover of owner's equity | |||||||||||||||
| 1.Conversion of capital reserves to additional capital (or share capital) | |||||||||||||||
| 2.Conversion of surplus reserves to additional capital (or share capital) | |||||||||||||||
| 3.Losses covered with |
| surplus reserve | |||||||||||||||
| 4.Change of defined benefit plans carried forward to retained earnings | |||||||||||||||
| 5.Other comprehensive income carried forward to retained earnings | |||||||||||||||
| 6.Others | |||||||||||||||
| (V) Special reserve | |||||||||||||||
| 1.Withdrawal in the current period | |||||||||||||||
| 2.Use in the current period | |||||||||||||||
| (VI) Others | 822,315.06 | 822,315.06 | 822,315.06 | ||||||||||||
| IV. Ending balance of the current period | 1,030,812,184.00 | 104,513,902.97 | 494,487,513.81 | 80,017,965.68 | -8,501,425.10 | 127,284,211.74 | 1,024,416,900.81 | 2,692,995,322.55 | 132,818,520.82 | 2,825,813,843.37 |
8. Parent company's statement of changes in owner's equity
Current amount
Unit: Yuan
| Items | Semiannual period of 2021 | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: treasury shares | Other comprehensive income | Special reserve | Surplus reserves | Undistributed profit | Others | Total owners' equity | |||
| Preferred shares | Perpetual bonds | Others | ||||||||||
| I. Ending balance of last year | 1,135,216,809.00 | 1,007,315,299.41 | 80,017,965.68 | 5,569,575.04 | 151,331,439.07 | 805,337,794.69 | 3,024,752,951.53 | |||||
| Plus: Changes in accounting policies | ||||||||||||
| Early error correction | ||||||||||||
| Others | ||||||||||||
| II. Balance at the beginning of the current year | 1,135,216,809.00 | 1,007,315,299.41 | 80,017,965.68 | 5,569,575.04 | 151,331,439.07 | 805,337,794.69 | 3,024,752,951.53 | |||||
| III. Amount of increase or decrease in the current period (decrease marked with "-") | 103,037,863.00 | 1,003,519,387.80 | -252,583.99 | 167,700,623.99 | 1,274,005,290.80 | |||||||
| (I) Total comprehensive income | -252,583.99 | 224,266,148.44 | 224,013,564.45 | |||||||||
| (II) Capital invested and reduced by owners | 103,037,863.00 | 976,663,746.46 | 1,079,701,609.46 | |||||||||
| 1.Ordinary shares invested by owners | 103,037,863.00 | 982,896,579.72 | 1,085,934,442.72 | |||||||||
| 2.Capital contributed by holders of other equity instruments | ||||||||||||
| 3.Amount of share-based payment included in owner's equity | -6,232,833.26 | -6,232,833.26 | ||||||||||
| 4.Others | ||||||||||||
| (III) Profit distribution | -56,565,524.45 | -56,565,524.45 | ||||||||||
| 1.Withdrawal of surplus reserve | ||||||||||||
| 2.Distribution to owners (or shareholders) | -56,565,524.45 | -56,565,524.45 | ||||||||||
| 3.Others | ||||||||||||
| (IV) Internal carryover of owner's equity | ||||||||||||
| 1.Conversion of capital reserves to additional capital (or share capital) | ||||||||||||
| 2.Conversion of surplus reserves to additional capital (or share capital) | ||||||||||||
| 3.Losses covered with surplus reserve | ||||||||||||
| 4.Change of defined benefit plans carried forward to retained earnings | ||||||||||||
| 5.Other comprehensive income carried forward to retained earnings | ||||||||||||
| 6.Others | ||||||||||||
| (V) Special reserve | ||||||||||||
| 1.Withdrawal in the current period | ||||||||||||
| 2.Use in the current period | ||||||||||||
| (VI) Others | 26,855,641.34 | 26,855,641.34 | ||||||||||
| IV. Ending balance of the current period | 1,238,254,672.00 | 2,010,834,687.21 | 80,017,965.68 | 5,316,991.05 | 151,331,439.07 | 973,038,418.68 | 4,298,758,242.33 |
Amount of the previous period
Unit: Yuan
| Items | Semiannual period of 2020 | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: treasury shares | Other comprehensive income | Special reserve | Surplus reserves | Undistributed profit | Others | Total owners' equity | |||
| Preferred shares | Perpetual bonds | Others | ||||||||||
| I. Ending balance of last year | 1,018,775,769.00 | 104,535,879.24 | 457,944,801.38 | 60,009,612.52 | 127,255,693.28 | 639,454,712.99 | 2,287,957,243.37 | |||||
| Plus: Changes in accounting policies | ||||||||||||
| Early error correction | ||||||||||||
| Others | ||||||||||||
| II. Balance at the beginning of the current year | 1,018,775,769.00 | 104,535,879.24 | 457,944,801.38 | 60,009,612.52 | 127,255,693.28 | 639,454,712.99 | 2,287,957,243.37 | |||||
| III. Amount of increase or decrease in the current period (decrease marked with "-") | 12,036,415.00 | -21,976.27 | 37,931,231.45 | 20,008,353.16 | 52,328,964.50 | 82,266,281.52 | ||||||
| (I) Total comprehensive income | 103,127,594.95 | 103,127,594.95 | ||||||||||
| (II) Capital invested and reduced by owners | 12,036,415.00 | -21,976.27 | 37,108,916.39 | 20,008,353.16 | 29,115,001.96 | |||||||
| 1.Ordinary shares invested by owners | 12,014,700.00 | 39,748,172.38 | 51,762,872.38 | |||||||||
| 2.Capital contributed by holders of other equity instruments | 21,715.00 | -21,976.27 | 98,540.52 | 98,279.25 | ||||||||
| 3.Amount of share-based payment included in owner's equity | 4,582,020.49 | 4,582,020.49 | ||||||||||
| 4.Others | -7,319,817.00 | 20,008,353.16 | -27,328,170.16 | |||||||||
| (III) Profit distribution | -50,798,630.45 | -50,798,630.45 | ||||||||||
| 1.Withdrawal of surplus reserve | ||||||||||||
| 2.Distribution to owners (or shareholders) | -50,798,630.45 | -50,798,630.45 | ||||||||||
| 3.Others | ||||||||||||
| (IV) Internal carryover of owner's equity | ||||||||||||
| 1.Conversion of capital reserves to additional capital (or share capital) | ||||||||||||
| 2.Conversion of surplus reserves to additional capital (or share capital) | ||||||||||||
| 3.Losses covered with surplus reserve | ||||||||||||
| 4.Change of defined benefit plans carried forward to retained earnings | ||||||||||||
| 5.Other comprehensive income carried forward to retained earnings | ||||||||||||
| (V) Special reserve | ||||||||||||
| 1.Withdrawal in the current period | ||||||||||||
| 2.Use in the current period | ||||||||||||
| (VI) Others | 822,315.06 | 822,315.06 | ||||||||||
| IV. Ending balance of the current period | 1,030,812,184.00 | 104,513,902.97 | 495,876,032.83 | 80,017,965.68 | 127,255,693.28 | 691,783,677.49 | 2,370,223,524.89 |
III. Basic information of the Company(I) Basic information of the CompanyRegistered Chinese name of the Company: 深圳拓邦股份有限公司Address: Room 413, Area B, Tsinghua University Research Institute, High-tech Industrial Park, YuehaiStreet, Nanshan District, Shenzhen
Legal representative: Wu YongqiangRegistered capital: 1,135,216,809.00 yuanShare capital: 1,135,216,809.00 yuanCompany type: company limited by shares (listing)Business scope: intelligent control of electrical products, intelligent power supply and control, highefficiency lighting products and its control, high efficiency precision motor and control research and development,production and sales.Business term: sustainable operationUnified social credit code: 91440300192413773Q
(II) Historical development of the CompanyShenzhen Topband Co., Ltd. (hereinafter referred to as “the Company” or “Company”) formerly known asShenzhen Topband Electronic Equipment Co., Ltd., is a limited liability company approved by ShenzhenAdministration for Industry and Commerce on February 9, 1996. It has obtained the business license of enterpriselegal person with the registration number of 19241377-3 and the registered capital of 2 million yuan.On May 19, 1997, the registered capital of Shenzhen Topband Electronic Equipment Co., Ltd. was increasedto 3.2 million yuan after the resolution of the Shareholders’ Meeting of Shenzhen Topband Electronic EquipmentCo., Ltd. and approved by Shenzhen Administration for Industry and commerce.On January 10, 2001, with the resolution of the Shareholders’ Meeting of Shenzhen Topband ElectronicEquipment Co., Ltd. and the approval of Shenzhen Administration for Industry and Commerce (Shenzhen) namechange NZ [2001] No. 0154224 Enterprise Name Change Approval Notice, it was agreed to change the name ofShenzhen Topband Electronic Equipment Co., Ltd. to Shenzhen Topband Electronic Technology Co., Ltd.On July 15, 2002, with the approval of SFG (2002) No. 24 issued by Shenzhen Municipal People’sGovernment, it was agreed that Shenzhen Topband Electronic Technology Co., Ltd. would be reorganized into a
joint stock limited company jointly by five shareholders, namely Wu Yongqiang, Ji Shuhai, Zhuhai TsinghuaScience and Technology Park Venture Capital Co., Ltd., Qi Hongwei and Li Xianqian. After the reorganization,the total share capital of the Company is 21 million yuan. Shenzhen Pengcheng Accounting Firm issued theCapital Verification Report (SPSYZ (2002) No. 67) to verify the share capital of the Company. On August 16,2002, the Company was approved by Shenzhen Administration for Industry and Commerce to register the changeof industry and commerce, in exchange for the business license of enterprise legal person with Registration No.4403012049338. The business period is from February 9, 1996 to February 9, 2046.On November 23, 2004, the registered capital of the Company was increased to 22.8 million yuan upon theresolution of the Shareholders’ Meeting and the document of Shenzhen Municipal People’s Government “SFG[2004] No. 38” and approved by Shenzhen Administration for Industry and Commerce.On March 15, 2006, the registered capital of the Company was increased to 31.92 million yuan upon theresolution of the Shareholders’ Meeting of the Company, and change in the industrial and commercial registrationwas handled on July 24, 2006.On June 26, 2007, the Company issued 18.08 million yuan ordinary shares (face value of each share is 1yuan) to the public with an increase of registered capital of 18.08 million yuan, and the registered capital after thechange is 50 million yuan by the approval of “ZJH No. 2007135” Notice on Approving the Initial Public Offeringof Shenzhen Topband Electronic Technology Co., Ltd. by China Securities Regulatory Commission. Theinvestment business has been verified by Shenzhen Pengcheng Accounting Firm Co., Ltd. and the capitalverification report SPSYZ [2007] No. 059 has been issued.On August 29, 2008, according to the resolution of the Annual General Meeting of Shareholders in 2008, theCompany increased the registered capital by 50 million yuan with capital reserve, and the registered capital afterthe change was 100 million yuan. The capital increase has been verified by Shenzhen Pengcheng AccountingFirm Co., Ltd., and the capital verification report SPSYZ [2008] No. 179 has been issued.The 3rd Board of Directors of the Company deliberated and approved the Plan on the Distribution ofMid-term Profits in 2009 at the 6th meeting in 2009: Based on the total share capital of the Company at the end ofthe reporting period of 100 million shares, 4 shares were added in share capitals per 10 shares for all shareholdersregarding the capital reserves, and the total share capital increased by 40 million shares. After the increase byconversion, the total share capital of the Company increased from 100 million shares to 140 million shares.On April 7, 2010, the Company held a meeting of the Board of Directors to deliberate and approve the profitdistribution plan for 2009: Based on the total share capital of 140 million shares as of December 31, 2009, the
Company will pay cash dividends of 1.50 yuan (tax included) per 10 shares, and based on the total share capital of140 million shares as of December 31, 2009, 2 shares will be added per 10 shares. After the increase byconversion, the total share capital of the Company increased from 140 million shares to 168 million shares.The Company held the 2nd meeting of the 4th Board of Directors in 2012 on March 26, 2012, deliberatedand approved the profit distribution plan for 2011: Based on the total share capital 168 million shares of theCompany on December 31, 2011, 2 shares were additionally given to all shareholders for every 10 shares, andcash dividend of 2 yuan (tax included) was distributed. 1 share was added per 10 shares for all shareholdersregarding the capital reserves. The equity distribution was completed on May 4, 2012. After the increase byconversion, the total share capital of the Company increased from 168 million shares to 218.4 million shares.According to the resolutions of 1st Extraordinary General Meeting of Shareholders of the Company in 2014,after the approval of ZJXK [2014] No. 1425 of China Securities Regulatory Commission, the Company’snon-public offering did not exceed 36,935,679 new shares. On February 5, 2015, the Company privately issued23,521,768 ordinary shares (A shares) in RMB to specific investors at the price of 13.63 yuan per share. After theissuance, the registered capital of the Company was increased to 241,921,768.00 yuan.According to the Revised Draft of the Second Option Incentive Plan (Draft) of Shenzhen Topband Co., Ltd.reviewed and approved by the Company in 2012 Annual General Meeting of Shareholders and the Proposal on theSecond Exercise Period of the Second Phase Stock Option Incentive Plan Meeting with the Exercise Conditionsand Exercisable Rights, which was deliberated and approved by the 9th Meeting of the 5th Board of Directors ofthe Company, the total exercise was 3,101,700 stock options in 2015, exercise price was 5.72 yuan each. Afterexercise, the registered capital of the Company was increased to 245,023,468.00 yuan.According to the Restricted Stock Incentive Plan (Draft) of Shenzhen Topband Co., Ltd. in 2015 approvedby the 2nd Extraordinary General Meeting of Shareholders in 2015 and the Proposal on Adjusting the Number ofRestricted Stock Incentive Plans Granted and List of Incentive Objects approved at the 18th Meeting of the 5thBoard of Directors, the Company granted 359 incentive objects restricted shares 17.633 million shares. Theregistered capital of the Company was increased to 262,656,468.00 yuan after the issuance.According to the resolution of the 3rd Extraordinary General Meeting of Shareholders of the Company in2015, and approved by the Reply to the Approval of Non-public Development of Shares of Shenzhen TopbandCo., Ltd. issued by China Securities Regulatory Commission (ZJXK [2016] No. 205), the Company non-publiclyissued 35,864,345 ordinary shares (A shares) in RMB to specific investors on March 28, 2016, with the issuanceprice of 16.66 yuan per share. The registered capital of the Company was increased to 298,520,813.00 yuan after
the issuance.According to the Revised Draft of the Second Phase Stock Option Incentive Plan (Draft) of ShenzhenTopband Co., Ltd. deliberated and approved by the 2012 Annual General Meeting of Shareholders of theCompany and the Proposal on the Third Exercise Period of the Second Phase Stock Option Incentive PlanMeeting Exercise Conditions and Exercisable Rights deliberated and approved by the 23rd Meeting of the 5thBoard of Directors of the Company, a total of 4,594,000 shares were exercised in 2016. After exercise, theregistered capital of the Company was increased to 303,114,813.00 yuan.According to the Proposal on Repurchase and Cancellation of Some Restricted Stocks deliberated andapproved by the 24th meeting of the 5th Board of Directors of the Company held on April 26, 2016, as for theincentive object who resigned due to personal reasons and no longer met the conditions of becoming the incentiveobject, those 72,000 restricted stocks that have not been unlocked held by the incentive object were repurchasedand cancelled. After cancellation, the registered capital of the Company was reduced to 303,042,813.00 yuan.The Company held the 2015 Annual General Meeting of Shareholders on May 11, 2016 and approved the2015 annual equity distribution plan. Based on the Company’s current total share capital of 301,520,013 shares,the Company distributed 1.50 yuan to all shareholders for every 10 shares. At the same time, the Companyincreased 5 shares to all shareholders for every 10 shares with the capital accumulation fund, and the capitalincreased by 150,760,006 yuan. After the capital was increased, the Company’s registered capital was increased to453,802,819.00 yuan.
According to the Proposal on Repurchase and Cancellation of Some Restricted Stocks deliberated andapproved by the 28th Meeting of the 5th Board of Directors of the Company held on October 26, 2016, as for theincentive object who resigned due to personal reasons and no longer met the conditions of becoming the incentiveobject, those 331,500 shares of restricted stocks that have not been unlocked held by the incentive object wererepurchased and cancelled. After cancellation, the registered capital of the Company was reduced to453,471,319.00 yuan.The 2016 Annual General Meeting of Shareholders of the Company was held on April 11, 2017, and the2016 annual equity distribution plan was approved. Based on the Company’s existing total share capital of453,471,319 shares, the Company distributed 1.50 yuan in cash to all shareholders for every 10 shares. At thesame time, the Company increased 5 shares to all shareholders for every 10 shares with the capital accumulationfund, and the capital increased by 226,735,659 yuan. After the capital increased, the registered capital of theCompany was increased to 680,206,978.00 yuan.
According to the Proposal on Repurchase and Cancellation of Some Restricted Stocks deliberated andapproved by the 32nd meeting of the 5th Board of Directors of the Company held on June 13, 2017, as for theincentive object who resigned due to personal reasons and no longer met the conditions of becoming the incentiveobject, the 346,500 restricted stocks that have not been unlocked held by the incentive object were repurchasedand cancelled. After cancellation, the registered capital of the Company was reduced to 679,860,478.00 yuan.The Company held the 2017 Annual General Meeting of Shareholders on April 17, 2018 to review andapprove the 2017 equity distribution plan. Based on the existing total capital of 679,860,478 shares, the Companysent 1.0 yuan in cash to all shareholders every 10 shares, and transferred 5 shares to all shareholders with thecapital accumulation fund, and the capital increased by 339,930,239.00 yuan. After the capital conversion, theregistered capital of the Company was increased to 1,019,790,717.00 yuan.According to the Proposal on Repurchase and Cancellation of Some Restricted Stocks deliberated andapproved by the 6th Meeting of the 6th Board of Directors of the Company held on July 27, 2018, as for theincentive object who resigned due to personal reasons and no longer met the conditions of becoming the incentiveobject, the 744,186 restricted stocks that have not been unlocked held by the incentive object were repurchasedand cancelled. After cancellation, the registered capital of the Company was reduced to 1,019,046,531.00 yuan.According to the Proposal on Repurchase and Cancellation of Some Restricted Stocks deliberated andapproved by the 6th Meeting of the 6th Board of Directors of the Company held on July 27, 2018, as for theincentive object who resigned due to personal reasons and no longer met the conditions of becoming the incentiveobject, the 744,186 restricted stocks that have not been unlocked held by the incentive object were repurchasedand cancelled. After cancellation, the registered capital of the Company was reduced to 1,019,046,531.00 yuan.According to the Proposal on Repurchase and Cancellation of Some Restricted Stocks deliberated andapproved by the 15th Meeting of the 6th Board of Directors of the Company held on July 26, 2019, as for theincentive object who resigned due to personal reasons and no longer met the conditions of becoming the incentiveobject, the 310,800 restricted stocks that have not been unlocked held by the incentive object were repurchasedand cancelled. After cancellation, the registered capital of the Company was reduced to 1,018,735,692 yuan. Withthe approval of “SZS [2019] No. 164” issued by Shenzhen Stock Exchange, the Company’s 573 million yuanconvertible corporate bonds will be listed and traded in Shenzhen Stock Exchange from April 8, 2019. SinceSeptember 16, 2019, bondholders can exercise the right to transfer shares. As of December 31, 2019, theCompany has transferred 2,223.00 shares of bonds and increased the share capital by 40,077.00 yuan. After theshare transfer, the registered capital of the Company will increase to 1,018,775,769.00 yuan.
The 22nd Meeting of the 6th Board of Directors deliberated and approved the Proposal on the First ExercisePeriod of 2018 Stock Option Incentive Plan Meeting the Exercise Conditions and Exercisable Rights and Proposalon Adjustment of the Incentive Objects and the Number of Stock Options of 2018 Stock Option Incentive Plan:
there are 606 incentive objects in the first exercise period of the 2018 stock option incentive plan in the Company,in total of 12,014,700 shares of stock options, that meet the exercise conditions and can be exercised. TheCompany plans to adopt the independent exercise mode. As of December 31, 2020, 606 incentive objects in thefirst exercise period had completed the exercise of 12,014,700 stock options, increased the Company’s sharecapital by 12,014,700 yuan, and the share capital increased to 1,030,790,469.00 yuan after the exercise of thestock options.
According to the document of “SZS [2019] No. 164” by the Shenzhen Stock Exchange, the Company’sconvertible corporate bonds of 573 million yuan are listed and traded on Shenzhen Stock Exchange from April 8,2019. Since September 16, 2019, the bondholders can exercise the equity transfer. In 2020, a total of 5,712,224.00bonds were converted into shares, increasing the share capital by 104,426,340.00 yuan. After the conversion, theregistered capital of the Company was increased to 1,135,216,809.00 yuan.
The 6th Meeting of the 7th Board of Directors deliberated and approved the Proposal on the Second ExercisePeriod of 2018 Stock Option Incentive Plan Meeting the Exercise Conditions and Exercisable Rights and Proposalon Adjustment of the Incentive Objects and the Number of Stock Options of 2018 Stock Option Incentive Plan:
there are 567 incentive objects in the second exercise period of the 2018 stock option incentive plan in theCompany, in total of 10,950,600 shares of stock options, that meet the exercise conditions and can be exercised.The Company plans to adopt the independent exercise mode. As the incentive objects Cheng Xuejing and LinQiao resigned and left the Company for personal reasons, 80,500 stock options granted but not exercised shall notbe exercised and shall be uniformly canceled by the Company. The procedures such as the review of theadjustment of the number of such options will be performed later. As of June 30, 2021, a total of 10.9326 millionstock options were exercised by 565 incentive objects in the second exercise period, increasing the Company'sshare capital by 10.9326 million yuan. After the exercise of the stock options, the share capital increased to1,146,149,409.00 yuan.
According to the resolution of the 2019 Annual General Meeting of Shareholders held by the Company in2020 and based on the approval in the CSRC's document numbered ZJXK [2020] No. 1865, the Companyprivately issued not more than 309,243,655 new shares. On May 20, 2021, the Company privately issued92,105,263 ordinary shares (A shares) in RMB to specific investors at the price of 11.40 yuan per share. After the
issuance, the registered capital of the Company was increased to 1,238,254,672.00 yuan.(III) Submission of financial reportThe financial report is approved and submitted by the Board of Directors of the Company on July 26, 2021.
From January to June 2021, there are 30 subsidiaries and sub-subsidiaries of the Company included in thescope of merger. For details, please refer to Interests in Other Entities in Note 9.The merger scope of theCompany in the reporting period increased by 6 compared with that in the previous year. For details, please referto Note 8 "Changes in the Scope of Consolidation".
IV. Preparation basis of the financial report
1. Preparation basis
The financial statements are based on the assumption of continuation of the Company, according to theactual transactions, in accordance with the relevant provisions of the accounting standards for business enterprises,and based on the following important accounting policies and accounting estimates.
2. Continuation
The Company has no major doubt on the ability of continuation and other influencing factors for 12 monthssince the end of the reporting period.
V. Significant accounting policies and accounting estimatesSpecific accounting policies and accounting estimates reminders:
None
1. Statement on compliance with accounting standards for business enterprises
The financial statements prepared on the basis of above compiling foundation give a true and full view of thefinancial position, operating results, cash flow and other relevant information of the Company, conforming to the
requirements of the latest accounting standards for business enterprises and its application guidelines,interpretations as well as other relevant provisions (collectively referred to as “accounting standards for businessenterprises”) issued by the Ministry of Finance.Additionally, the presentation and disclosure requirements of the No. 15 Rules for the Preparation andPresentation of Information Disclosure of Companies Offering Securities to the Public - General Provisions onFinancial Reporting (revised in 2014) (hereinafter referred to as “No. 15 Document (revised in 2014)”) and theNotice on Matters Related to the Implementation of the New Accounting Standards for Business Enterprises byListed Companies (No. 453 letter from Accounting Department [2018]) were taken as reference in these financialstatements.
2. Accounting period
The accounting period of the Company is divided into an annual period and an interim period, and an interimperiod refers to the reporting period shorter than a complete accounting year. The financial year of the Companyadopts the Gregorian calendar year, that is, from January 1 to December 31 every year.
3. Operating cycle
The operating cycle of the Company is from January 1 to December 31 of the Gregorian calendar.
4. Recording currency
RMB is the currency of the main economic environment in which the Company and its domestic subsidiariesoperate, so the Company and its domestic subsidiaries use RMB as the recording currency. The recordingcurrency for the foreign subsidiaries of the Company shall be determined in accordance with the currency of themain economic environment in which they operate. These financial statements of the Company are stated inRMB.
5. Accounting treatment for business combination under and not under common control
The Company, at the date of acquisition, recognizes the difference of the combination cost greater than the
fair value share of the Acquiree’s net identifiable assets obtained in the combination as goodwill; if thecombination cost is less than the fair value share of the Acquiree’s net identifiable assets obtained in thecombination, the Company first re-checks the fair value of the Acquiree’s identifiable assets, liabilities andcontingent liabilities as well as the measurement of combination cost. The difference shall be included in thecurrent profits and losses, if the combination cost is still less than the fair value share of the Acquiree’s netidentifiable assets obtained in the combination.The business combination under different control realized step by step through multiple transactions shall betreated as follows:
1. Adjusting the initial investment cost of long-term equity investment. If the equity held before theacquisition date is calculated with the equity method, it shall be re-measured as per the fair value of the equity atthe date of acquisition, and the difference between the fair value and its book value shall be included in the currentinvestment income; if the equity of the Acquiree held before the acquisition date involves changes in othercomprehensive income and other equity accounted under the equity method, it shall be transferred to the currentincome on the acquisition date, excluding other comprehensive income arising from changes in net liabilities ornet assets of the defined benefit plan re-measured by the investee.
2. Recognizing goodwill (or amount included in the current profits and losses).The initial investment cost oflong-term equity investment after the first step adjustment is compared with the fair value share of net identifiableassets of subsidiaries at the date of acquisition. If the former is greater than the latter, the difference is recognizedas goodwill, otherwise, it is included in the current profits and losses.
The situation of disposing equity step by step through multiple transactions to losing control oversubsidiaries:
1. Judging whether the transactions in the process of disposing equity step by step to losing control oversubsidiaries belong to the principle of “package transaction”
The terms, conditions and economic impact of transactions relating to disposal of equity investment insubsidiaries meet one or more of the following circumstances, which generally indicates that multiple transactionsshould be accounted for as a package transaction:
(1) These transactions were concluded simultaneously or with consideration of mutual influence;
(2) These transactions as a whole can achieve a complete business outcome;
(3) The occurrence of a transaction depends on the occurrence of at least one other transaction;
(4) A transaction is not economical by itself, but it is economical when considered in conjunction with other
transactions.
2. Accounting treatment for transactions in the process of disposing equity step by step to losing control oversubsidiaries belonging to “package transaction”If the transactions relating to disposal of equity investment in subsidiaries to losing control over subsidiariesbelong to “package transaction”, these shall be treated as a transaction for disposing the subsidiary and losingcontrol; however, the difference between the price of every disposal and the net assets share held in the subsidiarycorresponding to the disposal of investment before losing control shall be recognized as other consolidatedincome in the consolidated financial statements, which shall be transferred to the current profits and losses at thetime of losing control.In the consolidated financial statements, the remaining equity shall be re-measured according to its fair valueon the date of losing control. The difference between the sum of consideration obtained from equity disposal andfair value of remaining equity less the net assets share held in original subsidiary and continuously calculatedfrom the date of acquisition as per the original shareholding proportion shall be included in the investment incomeof the current period of loss of control. Other comprehensive income related to the equity investment in originalsubsidiary shall be transferred to the current investment income at the time of losing control.
3. Accounting treatment for transactions in the process of disposing equity step by step to losing control oversubsidiaries not belonging to “package transaction”
If no loss of control occurs in the disposal of the investment in the subsidiary, the difference between thedisposal price and the net assets share held in the subsidiary corresponding to the disposal of investment in theconsolidated financial statements shall be included in the capital reserve (capital premium or share premium). Ifthe capital premium is insufficient to offset, the retained earnings shall be adjusted.
In case of losing control over the investment in a subsidiary, the remaining equity shall be re-measuredaccording to its fair value on the date of loss of control in the consolidated financial statements. The differencebetween the sum of consideration obtained from equity disposal and fair value of remaining equity less the netassets share held in original subsidiary and continuously calculated from the date of acquisition as per the originalshareholding proportion shall be included in the investment income of the current period of loss of control. Othercomprehensive income related to the equity investment in original subsidiary shall be transferred to the currentinvestment income at the time of losing control.
6. Compiling method of consolidated financial statements
The consolidated financial statements, based on the financial statements of the parent company and itssubsidiaries, are prepared by the Company in accordance with the Accounting Standards for Business EnterprisesNo.33-Consolidated Financial Statements and with reference to other relevant information.During the combination, the internal equity investment and the owner’s equity of the subsidiaries, theinternal investment income and the profit distribution of the subsidiaries, the internal transactions, the internalclaims and debts are offset. The accounting policies adopted by the subsidiaries shall be consistent with thoseadopted by the parent company.
7. Classification of joint venture arrangements and accounting treatment for joint operation
1. Identification and classification of joint venture arrangements
Joint venture arrangement refers to an arrangement under joint control by two or more parties. The jointventure arrangement has the following features: 1) all parties are bound by the arrangement; 2) two or moreparties jointly control the arrangement. No single party can control the arrangement solely, and any party withjoint control over the arrangement can prevent other parties or a combination of party alliance from controlling thearrangement alone.
Joint control refers to the common control of an arrangement in accordance with relevant agreements, andthe activities related to the arrangement must be agreed upon by the parties holding control right before thedecision can be made.
Joint venture arrangement includes joint operation and joint venture. Joint operation is the joint venturearrangement in which the joint venture party holds the relevant assets of the arrangement and assumes the relevantliabilities. Joint venture refers to a joint venture arrangement in which the joint venture party has rights only to thenet assets of the arrangement.
2. Accounting treatment for joint venture arrangement
Parties in joint operation shall recognize the following items related to their share of interests in jointoperation, and perform accounting treatment in accordance with applicable accounting standards for businessenterprises: 1) recognize the assets held separately and those held jointly as per their share; 2) recognize theliabilities assumed separately and those assumed jointly as per their share; 3) recognize the income generated fromthe sale of its share of joint operation output; 4) recognize the income from the sale of the output of the joint
operation as per its share; (5) recognize the expenses incurred separately and those incurred in the joint operationas per its share.The parties of a joint venture shall make accounting treatment for the investment in the joint venture inaccordance with the Accounting Standards for Business Enterprises No.2 - Long-Term Equity Investment.
8. Standards for determining cash and cash equivalents
Cash in the cash flow statement refers to cash on hand and deposits that are available for payment at any time.Cash equivalents refer to investments with short term (generally due within three months from the date ofpurchase), strong liquidity, easy to convert into known amount of cash and low risk of value change.
9. Foreign currency transaction and foreign currency statement translation
1. Foreign currency transaction conversion
When foreign currency transactions are initially recognized, they are converted into RMB at the spotexchange rate on the transaction date. On the balance sheet date, foreign currency monetary items are translated atthe spot exchange rate on the balance sheet date. The exchange difference arising from different exchange ratesshall be included in the current profits and losses, except for the exchange difference of the principal and interestof foreign currency special borrowings related to the acquisition and construction of assets that meet thecapitalization conditions; foreign currency non-monetary items measured at historical cost shall be translated atthe spot exchange rate on the transaction date, with the amount in RMB maintaining unchanged; foreign currencynon-monetary items measured at fair value shall be translated at the spot exchange rate on the date of determiningfair value, with the difference included in the current profits and losses or other comprehensive income.
2. Translation of foreign currency financial statements
The assets and liabilities in balance sheet shall be translated at the spot exchange rate on the balance sheetdate; except for the “undistributed profit”, other items in the owner’s equity shall be converted at the spotexchange rate on the transaction date; the income and expense in the income statement shall be converted at thespot exchange rate on the transaction date. The difference in translation of foreign currency financial statementsgenerated from the above conversion is recognized as other comprehensive income.
10. Financial instruments
1. Recognition and de-recognition of financial instruments
The Company recognizes a financial asset or financial liability when it becomes a party to a financialinstrument contract.The trading of financial assets in a conventional manner shall be recognized and derecognized according tothe accounting of the trading day. Conventional trading of financial assets refers to the collection or delivery offinancial assets within the time limit specified by laws and regulations or common practice in accordance with theterms of the contract. Trading day refers to the date when the Company promises to buy or sell financial assets.
If the following conditions are met, the financial assets (or a part of financial assets, or a part of a set ofsimilar financial assets) shall be derecognized, i.e., they shall be written off from its accounts and balance sheets:
(1) The right to receive cash flow of financial assets has expired;
(2) The right to receive cash flow of financial assets has been transferred, or the Company has assumed theobligation to timely pay the full amount of the cash flow received to a third party under the “transfer agreement”;and (a) has transferred substantially all the risks and rewards from the ownership of financial assets, or (b)abandoned the control of the financial asset, though almost all risks and rewards from the ownership of thefinancial asset are neither transferred nor retained.
2. Classification and measurement of financial assets
At the time of initial recognition, the financial assets of the Company are classified according to theCompany’s business model for the management of financial assets and the contractual cash flow characteristics offinancial assets as follows: financial assets measured at amortized cost, financial assets measured at fair valuethrough other comprehensive income, and financial assets measured at fair value through current profits andlosses. The subsequent measurement of financial assets depends on its classification.
The classification of financial assets is based on the Company’s business model for the management offinancial assets and the cash flow characteristics of financial assets.
(1) Financial assets measured at amortized cost
Financial assets satisfying the following conditions at the same time are classified as financial assets
measured at amortized cost: The business model for managing such financial assets by the Company is to collectcontractual cash flows as the goal; the contract terms of the financial assets stipulate that the cash flow generatedon a specific date is only the payment of the principal and the interest based on the outstanding principal amount.For such financial assets, the effective interest rate method is adopted, and subsequent measurement is made atamortized cost, and the gains or losses arising from amortization or impairment are included in the current profitsand losses.
(2) Debt instruments investment measured at fair value with changes included in other comprehensiveincomeFinancial assets that meet the following conditions at the same time are classified as financial assetsmeasured at fair value through other comprehensive income: The business model for managing the financialassets by the Company is to collect contractual cash flows and to sell financial assets; The contract terms of thefinancial asset stipulate that the cash flow generated on a specific date is only the payment of the principal and theinterest based on the outstanding principal amount. For such financial assets, fair value is adopted for subsequentmeasurement. The discount or premium is amortized using the effective interest rate method and recognized asinterest income or expense. Except the impairment loss and the exchange difference of foreign currency monetaryfinancial assets are recognized as the current profits and losses, the changes in the fair value of such financialassets are recognized as other comprehensive income until their accumulated gains or losses are transferred intothe current profits and losses when the financial asset is derecognized. Interest income related to such financialassets is included in the current profits and losses.
(3) Equity instrument investment measured at fair value with changes included in other comprehensiveincome
The Company irrevocably chooses to designate part of the non-tradable equity instrument investment asfinancial assets measured at fair value through other comprehensive income. Only the relevant dividend income isincluded in the current profits and losses, and the changes in fair value are recognized as other comprehensiveincome, until their accumulated gains or losses are transferred into retained earnings when the financial asset isderecognized.
(4) Financial assets measured at fair value with changes included in the current profits and losses
The financial assets other than the above financial assets measured at amortized cost and those at fair value
through other comprehensive income are classified as financial assets measured at fair value with changesincluded in the current profits and losses. At the time of initial recognition, for the purpose of elimination orsignificant reduction of accounting mismatch, financial assets can be designated as those measured at fair valuewith changes included in the current profits and losses. For such financial assets, fair value is used for subsequentmeasurement, and all changes in fair value are included in the current profits and losses.If and only when the Company changes the business model for managing financial assets, it will reclassify allthe affected financial assets.For the financial assets measured at fair value and whose changes are included in the current profits andlosses, the relevant transaction costs are directly included in the current profits and losses, and such costs of othertypes of financial assets are included in the initial recognition amount.
3. Classification and measurement of financial liabilities
The financial liabilities of the Company are classified at the initial recognition as follows: financial liabilitiesmeasured at amortized cost and financial liabilities measured at fair value through current profits and losses.Financial liabilities that meet one of the following conditions can be designated as financial liabilitiesmeasured at fair value through current profits and losses at the time of initial measurement: (1) such designationcan eliminate or significantly reduce accounting mismatch; (2) according to the company risk management orinvestment strategy stated in formal written documents, the management and performance evaluation for thefinancial liabilities portfolio or portfolio of financial assets and financial liabilities is conducted on the basis of fairvalue, which is reported to key management personnel within the Company on this basis; (3) the financialliabilities include embedded derivatives that need to be split separately.The Company determines the classification of financial liabilities at the time of the initial recognition. Forthe financial liabilities measured at fair value with changes included in the current profits and losses, the relevanttransaction costs are directly included in the current profits and losses, and such costs of other financial liabilitiesare included in the initial recognition amount.The subsequent measurement of financial liabilities depends on its classification
(1) Financial liabilities measured at amortized cost
For such financial liabilities, the effective interest rate method is adopted and the subsequent measurement is
conducted as per the amortized cost.
(2) Financial liabilities measured at fair value with changes included in the current profits and lossesFinancial liabilities measured at fair value through current profits and losses include trading financialliabilities (including derivatives belonging to financial liabilities) and financial liabilities designated at initialrecognition as measured at fair value with changes included in the current profits and losses.
4. Set off of financial instruments
If the following conditions are met at the same time, financial assets and financial liabilities are presented inthe balance sheet at the net amount after offsetting each other: the Company has the legal right to offset therecognized amount, which is currently enforceable; they plan to settle at the net amount, or realize the financialassets and pay off the financial liabilities at the same time.
5. Impairment of financial assets
The Company recognizes the loss provision based on the expected credit loss for the financial assetsmeasured at the amortized cost, the debt instrument investment and financial guarantee contract measured at thefair value and whose changes are included in other comprehensive income. The term “credit loss” refers to thedifference between all the contractual cash flows that the Company discounted at the original effective interestrate and received according to the contract and all the expected cash flows, i.e., the present value of all the cashshortage.
The Company, taking into account all reasonable and well founded information (including forward-lookinginformation) estimates the expected credit losses of financial assets measured at amortized cost and financialassets (debt instruments) measured at fair value with changes included in other comprehensive income in a singleor combined way.
(1) Measurement of expected credit loss
If the credit risk of the financial instrument has increased significantly since the initial recognition, theCompany measures its loss provision according to the amount equivalent to the expected credit loss of thefinancial instrument in the whole duration; if the credit risk of the financial instrument has not increasedsignificantly since the initial recognition, the Company measures its loss provision according to the amountequivalent to the expected credit loss of the financial instrument in the next twelve months. The increased or
reversed amount of the loss provisions arising therefrom shall be included in the current profits and losses asimpairment losses or gains. The specific assessment of credit risk by the Company is detailed in the Note “9.Risks Associated with Financial Instruments”.Generally, if it is overdue for more than 30 days, the Company considers that the credit risk of the financialinstrument has increased significantly, unless there is conclusive evidence to prove that the credit risk of thefinancial instrument has not increased significantly since the initial recognition.To be specific, the Company divides the credit impairment process of financial instruments that have notbeen impaired at the time of purchase or origination into three stages, with different accounting treatment for theimpairment of financial instruments at different stagesFirst stage: credit risk has not increased significantly since initial recognitionFor the financial instrument at this stage, the enterprise shall measure the loss provision according to theexpected credit loss in the next 12 months, and calculate the interest income as per its book balance (i.e. withoutdeducting the impairment provision) and the actual interest rate (if the instrument is a financial asset, the samebelow).
Second stage: the credit risk has increased significantly since the initial recognition, but the creditimpairment has not occurredFor the financial instrument at this stage, the enterprise shall measure the loss provision according to theexpected credit loss of the instrument thought the whole duration, and calculate the interest income as per its bookbalance and the actual interest rate.Third stage: credit impairment occurs after initial recognitionFor the financial instrument at this stage, the enterprise should measure the loss provision according to theexpected credit loss of the instrument thought the whole duration, but the calculation of interest income isdifferent from the financial assets at the first two stages. For the financial assets with credit impairment, theenterprise shall calculate the interest income according to its amortized cost (book balance minus accruedprovision for impairment, i.e. book value) and the actual interest rate.For the financial assets with credit impairment at the time of purchase or origination, the enterprise shall onlyrecognize the change of expected credit loss in the whole duration after initial recognition as loss provision, and
calculate the interest income as per its amortized cost and the effective interest rate adjusted by credit.
(2) For financial instruments with low credit risk on the balance sheet date, the Company directly assumesthat the credit risk of such instruments has not increased significantly since the initial recognition, while notcomparing them with the credit risk at the time of initial recognition.A financial instrument may be considered to have a lower credit risk if the enterprise recognizes that thefinancial instruments feature low default risk, the borrower is able to fulfill its obligations to pay the contractualcash flow in the short term, and that even if there are adverse changes in economic situation and operatingenvironment over a longer period of time, it does not necessarily reduce the borrower’s ability to fulfill itsobligations to pay the contractual cash flow.
(3) Receivables and lease receivables
The Company measures the loss provisions as per the amount of expected credit losses throughout the wholeduration by the use of simplified model for expected credit loss for receivables specified in Accounting Standardsfor Business Enterprises No.14 - Income, excluding significant financing components (including cases in whichfinancing components in contracts not exceeding one year are not taken into account in accordance with thestandards).
The Company makes accounting policy choices to adopt a simplified model for expected credit loss, i.e.,measuring the loss provisions as per the amount equivalent to the expected credit loss throughout the wholeduration for receivables including significant financing components and lease receivables regulated byAccounting Standards for Business Enterprises No.21 - Leasing.
6. Transfer of financial assets
If the Company has transferred almost all risks and rewards in the ownership of financial assets to thetransferee, it shall terminate the recognition of the financial assets, and if it retains almost all risks and rewards inthe ownership of the financial assets, it shall not terminate the recognition of the financial assets.
If the Company neither transfers nor retains almost all the risks and rewards in the ownership of the financialasset, the following conditions shall be referred to: if it gives up the control over the financial asset, it shallterminate the recognition of the financial asset and recognize the assets and liabilities generated; if it does notabandon the control over the financial asset, the relevant financial assets shall be recognized according to theextent to which it continues to be involved in the transferred financial asset, and the relevant liabilities shall be
recognized accordingly.If the financial guarantee is provided to the transferred financial assets to continue to be involved, the assetsgenerated from the continued involvement shall be recognized according to the lower of the book value of thefinancial assets and the amount of financial guarantee. Financial guarantee amount refers to the maximum amountthat will be required to be repaid out of consideration received.
11. Notes receivable
The Company divides notes receivable into two portfolios of bank acceptance bills and commercialacceptance bills by type of financial instrument. With respect to bank acceptance bills, the Company considers itsoverdue default risk to be 0 for it has low overdue credit loss which has not significantly increased since the initialrecognition, because the acceptance bank pays the payee or holder a certain amount unconditionally when the billis due. In respect of commercial acceptance bills, the Company believes that the probability of default iscorrelated with the aging, and the transfer provision shall be accrued according to the accounting estimate policyof expected credit loss of above accounts receivable.
12. Accounts receivable
The Company measures the loss provisions as per the amount of expected credit losses throughout the wholeduration by the use of simplified model for expected credit loss for receivables specified in Accounting Standardsfor Business Enterprises No.14 - Income, excluding significant financing components (including cases in whichfinancing components in contracts not exceeding one year are not taken into account in accordance with thestandards). The increased or reversed amount of loss provisions generated therefrom shall be included in thecurrent profits and losses as impairment losses or gains.
The Company has implemented Accounting Standard No.22 - Recognition and Measurement of FinancialInstruments (CK [2017] No.7) since January 1, 2019. The Company believes that the probability of default isrelated to the aging, which is still a mark of whether the credit risk of the Company’s accounts receivableincreases significantly, after it has reviewed the appropriateness of the provision for bad debts receivable inprevious years based on the Company’s historical bad debt losses. Therefore, credit risk loss of the Company’saccounts receivable is still estimated on the basis of aging according to the original loss ratio of previous years.The accounting policies for measuring overdue credit loss of accounts receivable adopted by the Company are as
follows:
1. Receivables with significant individual amount and individual provision for bad debtsSignificant individual amount refers to the amount of which the ending balance of individual receivables ismore than 1 million yuan.At the end of the period, a separate impairment test will be carried out on the individual receivables withsignificant amount. If there is objective evidence that it is impaired, the impairment loss shall be recognized withprovision for bad debts according to the difference between the present value of future cash flow and the bookvalue.
2. Receivables with provision for bad debts by portfolio
The individual receivables with not significant amount at the end of the period, together with the receivablesthat have not been impaired after separate test, are divided into several portfolios according to the aging as thecredit risk characteristics, and the impairment loss is calculated and determined according to a certain proportionof the ending balance of these receivables portfolio (the impairment test can be conducted separately), withprovision for bad debts.Except for the receivables for which impairment provision has been made separately, the Companydetermines the proportion for following bad debt provision based on the actual loss rate of the portfolio of thesame or similar receivables in previous years with the aging of receivables as the credit risk feature and incombination with the current situation:
| Aging | Estimated loss of accounts receivable (note) | Estimated loss of other receivables |
| Less than 1 year (including 1 year) | 3.10% | 5.00% |
| 1-2 years (including 2 years) | 9.04% | 10.00% |
| 2-3 years (including 3 years) | 22.11% | 30.00% |
| 3-4 years (including 4 years) | 47.51% | 50.00% |
| 4-5 years (including 5 years) | 84.26% | 80.00% |
| Over 5 years | 100.00% | 100.00% |
| Among which: those that have been determined to be irrecoverable | Write off | Write off |
Note: when measuring the expected credit loss of receivables, the Company has referred to the historicalexperience of credit loss and adjusted it based on the forward-looking estimates.
3. Receivables with not significant amount but with individual provision for bad debts
Reasons for individual provision for bad debts: the Company conducts a separate impairment test for thereceivables with the following characteristics, although its amount is not significant. If there is objective evidencethat the receivables are impaired, the impairment loss shall be recognized with provision for bad debts accordingto the difference between the present value of future cash flow and the book value; receivables that are in disputewith the other party or involved in litigation or arbitration; receivables that have obvious indications that thedebtor is likely to be unable to perform the repayment obligation, etc.Method for bad debt provision: the impairment test shall be conducted separately. If there is objective evidencethat it has been impaired, the impairment loss shall be recognized with provision for bad debts according to thedifference between the present value of future cash flow and its book value.
13. Receivables financing
Financial assets that meet the following conditions at the same time are classified as financial assetsmeasured at fair value through other comprehensive income: The business model for managing the financialassets by the Company is to collect contractual cash flows and to sell financial assets; The contract terms of thefinancial asset stipulate that the cash flow generated on a specific date is only the payment of the principal and theinterest based on the outstanding principal amount.
If the Company transfers the receivables held by it in the form of discount or endorsement, which is frequentand involves a large amount, and its management business mode is essentially the collection and sale of thecontractual cash flow, it is classified into financial assets whose changes are measured at fair value and includedin other comprehensive income in accordance with the accounting standards of financial instruments.
14. Other receivables
Recognition method and accounting treatment for expected credit loss of other receivablesThe Company measures the impairment loss by an amount equivalent to the expected credit loss within the next12 months or over the entire duration, depending on whether the credit risk of other receivables has increased
significantly since the initial recognition. In addition to other receivables with individual credit risk assessment,they are divided into different portfolios based on their credit risk characteristics:
| Items | Basis for determining the portfolios | |
| Risk-free portfolio | This portfolio is a risk-free account receivable. |
| Aging portfolio | The credit risk of the portfolio is characterized by the aging of receivables. |
15. Inventories
1. Classification of inventories
Inventories refer to the finished products or commodities held by a company for sale, the unfinished productsin the process of production and outsourced processing, and the materials and supplies consumed for productionor rendering of labor service in daily activities of the company.The Company’s inventories mainly include raw materials (including auxiliary materials and wrappages),outside processing materials, unfinished products, self-made semi-finished products, goods on hand and low valueconsumables.
2. Valuation method of delivered inventories
The delivered inventories are subject to the weighted-average system.
3. The basis for determination of net realizable value of inventories and the method for calculation ofinventory revaluation reserves
On the balance sheet date, the inventories are measured at the lower of cost and net realizable value, and theinventory revaluation reserves are calculated at the difference between the cost of inventory category and the netrealizable value. The net realizable value of the inventories ready for sale is determined at the estimated sale priceof such inventories minus the estimated sales expenses and relevant taxes during normal production and operation,and that of the inventories to be processed is determined at the estimated sale price of the finished products minusthe costs, sales expenses and relevant taxes estimated to be incurred up to completion during normal productionand operation. On the balance sheet date, the net realizable values are determined separately and compared withthe corresponding costs to determine the amount of withdrawal or reversal of inventory revaluation reserve if a
part of inventory is subject to the contractual price agreement and the rest is not.
Net realizable value refers to the amount of the estimated sale price of the inventories minus the costs, salesexpenses and relevant taxes estimated to be incurred up to completion in daily activities. For the provision ofinventory revaluation reserve, it is made based on a single inventory item for various inventories and in acombined manner for the inventories which are related to the product line produced and sold in the same region,difficult to be measured separately from other items and for the same or similar end use or purpose.
4. Inventory system
Perpetual inventory system is applied for the inventories.
5. Amortization method of low value consumables and wrappage
Both low value consumables and wrappage are amortized with one-off amortization method when they arereceived.
16. Contractual assets
None
17. Contract costs
None
18. Assets held for sale
The Company classifies corporate components (or non-current assets) that meet the following conditions asthe assets held for sale: (1) The corporate components can be sold immediately under current background inaccordance with the practice of sales of such assets or disposal portfolio in similar transactions; (2) The sale isvery likely to take place and expected to be completed within one year since a resolution has been made on a saleplan and a definite purchase commitment has been obtained (definite purchase commitment refers to a legallybinding purchase agreement that is signed by a company with other parties and indicates the important clauseswith respect to the transaction price, time and severe penalties for breach of contract to minimize the possibility ofmajor adjustment or revocation of the agreement.).It has been approved by the relevant authority or regulators in
accordance with relevant regulations.
The Company adjusted the estimated net residual value of the asset held for sale to the net amount (not morethan the original book value of such asset held for sale) reflecting its fair value minus the sales expenses. If theoriginal book value is higher than the adjusted estimated net residual value, the difference between the two wasdeemed as the asset impairment loss and included in the current profits and losses, and the provision forimpairment of assets held for sale shall be made. For the amount of asset impairment loss recognized for thedisposal portfolio held for sale, it is necessary to offset the book value of goodwill in the disposal portfolio andthen offset the book value of the specified non-current assets in the disposal portfolio applicable for beingmeasured in accordance with the Standard in proportion.If the net amount of the fair value of the non-current assets held for sale minus the sales expenses increaseson the subsequent balance sheet date, the amount written-down previously shall be recovered and reversed withinthe amount of asset impairment loss recognized after such non-current assets are classified as the assets held forsale. The reversed amount shall be included in the current profits and losses. The asset impairment loss recognizedbefore such non-current assets are classified as the assets held for sale shall not be reversed. If the net amount ofthe fair value of the disposal portfolio held for sale minus the sales expenses increases on the subsequent balancesheet date, the amount written-down previously shall be recovered and reversed within the amount of impairmentloss recognized for the non-current assets applicable for being measured in accordance with the Standard aftersuch disposal portfolio is classified as the assets held for sale. The reversed amount shall be included in thecurrent profits and losses. It is not allowed to reverse the book value of the goodwill that has been written downand the impairment loss recognized for the non-current assets applicable for being measured in accordance withthe Standard before such assets are classified as the assets held for sale. The book value of the subsequentlyreversed amount of the asset impairment loss recognized for the disposal portfolio held for sale shall be increasedaccording to the proportion of the book value of non-current assets applicable for being measured in accordancewith the Standard except for the goodwill in the disposal portfolio.If the Company loses control over its subsidiary for some reasons such as the sale of its investment into itssubsidiary, it shall classify the entire investment into its subsidiary as the assets held for sale in the individualfinancial statement of the parent company and classify all assets and liabilities of the subsidiary as the assets heldfor sale in the consolidated financial statements provided that the investment into its subsidiary to be sold meetsthe conditions for classification of assets held for sale.
19. Debt investment
None
20. Other debt investment
None
21. Long-term receivables
None
22. Long-term equity investment
1. Determination of investment cost
(1) If the investment cost is incurred in business combination under the same control in which case thecombining party pays the combination consideration in cash, by transferring the non-cash assets, undertaking thedebts or issuing the equity securities, the initial investment cost shall be determined on the basis of the share of theowner's equity of the combined party in the book value of the ultimate controlling party's consolidated financialstatements on the combination date. For the difference between the initial investment cost of long-term equityinvestment and the book value of the consideration paid for combination or the total face value of the issuedshares, the capital reserve (capital premium or share premium shall be adjusted). If the capital reserve isinsufficient to be offset, the retained earnings shall be adjusted.
If a business combination under the same control is realized step by step, the initial investment cost shall bedetermined on the basis of the share of the owner's equity of the combining party in book that is obtained from thecombined party on the combination date and calculated at shareholding ratio. For the difference between the initialinvestment cost and the sum of the book value of the original long-term equity investment plus the book value ofthe consideration newly paid for acquiring further shares on the combination date, the capital reserve (capitalpremium or share premium shall be adjusted). If the capital reserve is insufficient to be offset, the retainedearnings shall be adjusted.
(2) If the investment cost is incurred in business combination under different control, the initial investment
cost shall be determined as the fair value of the consideration paid for combination on the purchase date.
(3) Investment costs other than those incurred in business combination: The initial investment cost shall bethe purchase price paid actually if the investment is obtained by paying cash, the fair value of the issued equitysecurities if by issuing the equity securities, and the value specified in the investment contract or agreement incase of investment from an investor (unless the unfair value is specified in the contract or agreement).
2. Subsequent measurement and recognition methods for profit and loss
The long-term equity investment that the Company has the control over the investee shall be calculated withcost method in its individual financial statement; those under the same control or significant influence shall becalculated with equity method.
If the cost method is applied, the long-term equity investments shall be priced at the initial investment cost.The cash dividends or profits declared to be distributed by the investee other than those that have been declaredbut not distributed and included in the price or consideration paid actually when the investment is obtained shallbe recognized as the current investment profit, and it is necessary to consider whether the long-term investment isimpaired in accordance with the relevant policy of asset impairment.
When the equity method is applied, if the initial investment cost of a long-term equity investment is greaterthan the share of fair value of identifiable net assets entitled from the investee at the time of investment, it shall beincluded in the initial investment cost of the long-term equity investment; otherwise, the difference shall beincluded in the current profits and losses and the cost of long-term equity investment shall be adjusted.
When the equity method is applied, the profit and loss on investment shall be recognized and the book valueof the long-term equity investment shall be adjusted according to share of the net profit and loss that should beentitled or shared and have been realized by the investee after the long-term equity investment is obtained. Whenthe share of the net profit and loss entitled from the investee is recognized, the proportion attributable to theinvestor shall be calculated at the shareholding ratio after offsetting the profits and losses of internal transactionswith associated enterprises and joint ventures (full amount shall be recognized if the losses of internal transactionsare the asset impairment losses) in light of the accounting policies and period of the Company on the basis of thefair value of the identifiable assets of the investee when the investment is obtained, and the net profit of theinvestee shall be recognized after adjustment. The portion to be distributed shall be calculated with reference tothe profits or cash dividends declared to be distributed by the investee, and the book value of the long-term equity
investment shall be reduced accordingly. The Company recognizes the net loss incurred by the investee to theextent that the book value of the long-term equity investment and other long-term equity substantially constitutingthe net investment into the investee are written down to zero, unless the Company is liable for extra losses. Thebook value of the long-term equity investment was adjusted and included in the owner's equity for other changesin the owner's equity other than the net profit and loss of the investee.
3. Basis for determination of control over and significant influence on the investee
Control refers to having the power over the investee, being entitled to variable returns by participating in therelevant activities of the investee and able to influence the amount of return by exercising the power over theinvestee. Significant influence refers to that the investor has the right to participate in decision-making in terms ofthe financial and operating policies of the investee but has no right to control or jointly control the formulation ofthese policies with other parties.
4. Disposal of long-term equity investment
(1) Partial disposal of long-term equity investments into subsidiaries without loss of control
The difference between the disposal price and the corresponding book value of the disposed investment shallbe recognized as the current investment profit in case of partial disposal of long-term equity investments intosubsidiaries without loss of control.
(2) Loss of control over subsidiaries due to partial disposal of long-term equity investments or other reasons
If the control over the subsidiaries is lost due to partial disposal of long-term equity investments or otherreasons, the book value of the long-term equity investment corresponding to the sold equity shall be carriedforward for the disposed equity, and the difference between the sales price and the book value of the disposedlong-term equity investment shall be recognized as investment profit (loss). In addition, the remaining equity shallbe recognized as long-term equity investment or other related financial assets at its book value. The remainingequity after disposal that has joint control or significant influence on the subsidiaries shall be subject to theaccounting treatment in accordance with the relevant regulations on the conversion from the cost method to theequity method.
5. Methods for impairment test and provision of impairment reserve
If there is any objective evidence showing that the investments into subsidiaries, associated enterprises and
joint ventures are impaired on the balance sheet date, the provision of impairment reserve shall be madeaccordingly based on the difference between the book value and the recoverable amount.
23. Investment real estate
Measurement model of investment real estateMeasurement with cost methodDepreciation or amortization method
1. Investment real estate includes leased land use rights, land use rights held and ready to be assigned afterappreciation, and leased buildings.
2. Investment real estate is measured initially at cost and subsequently with cost model. The provision fordepreciation and amortization of the investment real estate are made in the way as used for fixed assets andintangible assets. If there is any sign showing that the investment real estate is impaired on the balance sheet date,the provision of impairment reserve shall be made accordingly based on the difference between the book valueand the recoverable amount.
The Company applied the cost model to subsequent measurement of investment real estate, and depreciatedor amortized it in accordance with the policy as used for the buildings or land use rights.
See Note III (21) "Long-term assets impairment" for details of the methods for impairment test and provisionof impairment reserve applicable to investment real estate.
If the real estate for private use or inventory is converted to an investment real estate or the investment realestate is converted to a real estate for private use, the book value before such conversion shall be deemed as theentry value after the conversion.
If the purpose of an investment real estate is changed to private use, this investment real estate shall beconverted into a fixed or intangible asset from the date of change. If the purpose of a real estate is changed to rentgains or capital appreciation from private use, the fixed asset or intangible asset shall be converted into aninvestment real estate from the date of change. If any asset is converted into an investment real estate measuredwith the cost model, the book value before the conversion shall be deemed as the entry value after the conversion.If any asset is converted into an investment real estate measured with the fair value model, the fair value on the
conversion date shall be deemed as the entry value after the conversion.An investment real estate shall be de-recognized if this investment real estate is disposed of or permanentlyretired, and it is expected that no economic benefits can be obtained from its disposal. The disposal income fromthe sale, transfer, scrapping or damage of an investment real estate shall be included in the current profits andlosses after deducting its book value and relevant taxes and dues.
24. Fixed assets
(1) Conditions for recognition
The fixed assets of the company refer to the tangible assets that are held for production of goods, renderingof labor services, and leasing or operating management and have a useful life of more than one fiscal year. Fixedassets shall be recorded at the actual cost upon the acquisition and subject to the provision for straight-linedepreciation from the next month following the date when they are ready for use as intended.The straight-line method shall be used to calculate the depreciation of the fixed assets of the company, andthe service life and depreciation methods of the fixed assets shall be checked at the end of each year based on theestimated net residual value and service life of various types of fixed assets. If there is a significant variance withthe estimation, adjustment shall be made accordingly. If the provision for impairment is not considered, thedepreciable life and the yearly depreciation, according to the type, estimated economic useful life and estimatednet residual value of the fixed assets, shall be determined respectively as follows:
(2) Depreciation method
| Category | Depreciation method | Depreciable life | Residual rate | Yearly depreciation |
| Houses and buildings | Straight-line method | 20-40 years | 5.00 | 2.375-4.75 |
| Machinery and equipment | Straight-line method | 10 years | 5.00 | 9.50 |
| Transportation equipment | Straight-line method | 5 years | 5.00 | 19.00 |
| Molds | Straight-line method | 5 years | 5.00 | 19.00 |
| Electronic equipment and other equipment | Straight-line method | 5 years | 5.00 | 19.00 |
If the provision for impairment is considered, the depreciation during each period shall be determined andcalculated according to the book value of a single fixed asset minus provision for impairment and the remainingdepreciable life. If there is any sign showing that a fixed asset is impaired on the balance sheet date, the provision
for impairment shall be made accordingly at the difference between the book value and the recoverable amount.
(3) Basis for recognition, valuation and depreciation method of fixed assets under financing leaseFinancing lease will be recognized if one or more of following criteria is or are met: ① The ownership ofthe leased asset is transferred to the lessee at the expiration of the lease term; ② It can be reasonably determinedthat the lessee will exercise the option at the start of the lease since the lessee has such option to purchase theleased asset and the agreed purchase price is expected to be much lower than the fair value of the leased assetwhen the option is exercised; ③ The lease term accounts for most of the service life of the leased asset[generally, it accounts for more than 75% (including 75%)] of the service life of the leased asset even if theownership of the asset will not be transferred; ④ The present value of the minimum lease payment made by thelessee on the start date of lease is almost equivalent to the fair value [90% and above (including 90%)] of theleased asset on the start date of lease; the present value of the minimum lease payment received by the lessor onthe start date of lease is almost equivalent to the fair value [90% and above (including 90%)] of the leased asset onthe start date of lease; ⑤ The leased asset is of a special nature and will be only used by the lessee if no majortransformation is made. The fixed assets under financing lease shall be recorded at the lower of the fair value ofthe leased assets on the start date of lease and the present value of the minimum lease payment and shall besubject to provision for depreciation in accordance with the depreciation policy of self-owned fixed assets.
25. Construction in progress:
1. The construction in progress shall be transferred to fixed assets at the actual cost of the project when it isready for use as intended. If a product under construction has been ready for use as intended but has notundergone final settlement of account, this project shall be transferred to fixed assets at the estimated value first.After final settlement of account is made, the original temporary estimated value shall be adjusted according to theactual cost without adjustment of depreciation previously accrued.
2. If there is any sign showing that a project under construction is impaired on the balance sheet date, theprovision for impairment shall be made accordingly at the difference between the book value and the recoverableamount.
26. Borrowing costs
1. Recognition principle for capitalization of borrowing costs
The borrowing costs of the company that can be directly attributable to the acquisition, construction orproduction of assets that meet the conditions for capitalization shall be capitalized and included in the cost of therelevant assets, and other borrowing costs shall be recognized as expenses at the time of occurrence and includedin the current profits and losses.
2. Period of capitalization of borrowing costs
(1) The borrowing costs shall be capitalized if they meet the following conditions: 1) Asset expenditureshave been incurred; 2) Borrowing costs have been incurred; 3) Acquisition, construction or production activitiesnecessary for the assets to reach the usable or marketable state as intended have begun.
(2) The capitalization of borrowing costs shall be discontinued if the acquisition, construction or productionof an asset that meets the conditions for capitalization is abnormally interrupted for more than 3 successivemonths. The borrowing costs incurred during the period of interruption shall be recognized as current expensesuntil the acquisition, construction or production of assets is resumed.
(3) The capitalization of borrowing costs shall cease when the purchased, constructed or produced assets thatmeet the conditions for capitalization reaches the intended usable or marketable state.
3. Capitalized amount of borrowing costs
If special borrowings are for the purpose of purchase, construction or production of assets that meet theconditions for capitalization, the amount of interest to be capitalized shall be determined as the interest expensesactually incurred (including the amortization of discounts or premiums determined with the effective interest ratemethod) in the current period of the special borrowing minus the interest income from the unused borrowings thathave been deposited in the bank or the profit from temporary investment by the unused borrowings. If generalborrowings are used for the purpose of purchase, construction or production of assets that meet the conditions forcapitalization, the amount of interest to be capitalized shall be determined as the weighted average of assetexpenditure with accumulated asset expenditure exceeding special borrowing multiplied by capitalization rate ofthe general borrowing occupied.
27. Biological assets
None
28. Oil and gas assets
None
29. Use right assets
On the beginning date of the lease term, the Company recognizes the right to use the leased asset within thelease term as a use right asset, including: the initial measurement amount of the lease liability; for the leasepayment paid on or before the beginning date of the lease term, if there is lease incentive, the relevant amount oflease incentive enjoyed shall be deducted; initial direct expenses incurred by the lessee; and the estimated cost tobe incurred by the lessee in dismantling and removing the leased asset, restoring the site where the leased asset islocated or restoring the leased asset to the state agreed in the lease terms. The Company subsequently makesprovision for the depreciation of the use right asset using the straight-line method. If there is reasonable certaintythat the lessee will obtain ownership of the leased assets when the lease term expires, the Company shall makedepreciation of leased assets over their remaining service life. If it is not reasonable to be certain that the lesseewill obtain the ownership of the leased assets at the expiry of the lease term, the leased assets should be calculatedand withdrawn as depreciation over the shorter one of the lease term or the remaining service life by the Company.When the Company remeasures the lease liability according to the present value of the changed lease payment andadjusts the book value of the use right asset accordingly, if the book value of the use right asset has been reducedto zero, but the lease liability still needs to be further reduced, the Company shall include the remaining amount inthe current profits and losses. For the impairment test method and impairment provision method of use right assets,see Note 31: Long-term assets impairment.
30. Intangible assets
(1) Valuation method, service life and impairment test
1. Intangible assets include land usage right and software, and shall be initially measured at cost.
2. Intangible assets with limited service life shall be systematically and reasonably amortized according tothe expected realization mode of economic benefits related within the service life, and in case the expectedrealization mode cannot be reliably determined, the straight-line method shall be adopted for amortization.The land usage right shall be averagely amortized within the remaining service life (generally 50 years), andthe software shall be averagely amortized within 3-5 years.
3. In case of evidence of impairment of intangible assets with defined service life on the balance sheet date,corresponding provision for impairment shall be made according to the difference between the book value and therecoverable amount; For intangible assets with uncertain service life and intangible assets that have not reachedthe serviceable state, the impairment tests shall be carried out every year, whether there are signs of impairment ornot. Currently, the Company has no intangible assets with uncertain service life.
(2) Accounting policy of internal R&D expenditure
Research stage expenditures of internal R&D projects shall be included in the current profits and losses at thetime of occurrence. In case following conditions have been met at the same time, expenditure of internal R&Dprojects in development stage shall be recognized as intangible assets: (1) It is technically feasible to complete theintangible assets for adoption and sale; (2) There is the intention to complete the intangible assets for adoption andsale; (3) There exist ways for intangible assets to generate economic benefits, including the evidence that there is amarket for products produced by using the intangible assets or for the intangible assets. If the intangible assetswill be used internally, it can be proved that they are useful; (4) There are sufficient technical, financial and otherresources to support the development of the intangible assets and to use or sell the intangible assets; (5)Expenditure of the intangible assets in development stage can be measured reliably.
31. Long-term assets impairment
The enterprise shall judge whether there is any sign of possible assets impairment on the balance sheet date.
Goodwill arising from business combination and intangible assets with uncertain service life shall be testedfor impairment every year, no matter whether there is any sign of impairment.
In case of following signs, the assets may be impaired:
(1) Market price of assets falls sharply in the current period, which is significantly higher than the expected
decline due to time or normal use; (2) There are significant changes in current and future economic, technologicalor legal environment in which the enterprise operates and the market where assets are located, bringing adverseeffects on the enterprise; (3) The market interest rate or other market return on investment has been increased inthe current period, affecting the discount rate of the enterprise to calculate the present value of the expected futurecash flow of the assets and resulting in a significant decrease in the recoverable amount of the assets; (4) Thereexists evidence showing that the assets have become obsolete or the entity has been damaged; (5) Assets havebeen or will be idle, terminated or planned to be disposed in advance; (6) Evidence in the internal report of theenterprise shows that economic performance of assets has been or will be lower than the expected, for instance,the net cash flow arising from assets or the realized operating profit (or loss) is far lower (or higher) than theexpected amount, etc. (7) Other indications showing that assets may have been impaired.In case of signs of assets impairment, corresponding recoverable amount shall be estimated.Recoverable amount shall be determined based on the higher of the net amount of fair value of assets minusthe disposal expenses and the present value of expected future cash flow of assets.Disposal expenses include legal expenses, relevant taxes and handling fees related to disposal of assets aswell as direct expenses incurred to make the assets marketable.Present value of expected future cash flow of assets shall be determined by selecting an appropriate discountrate based on the expected future cash flow generated during continuous use and final disposal of the assets. Toestimate present value of future cash flow of assets, measures shall be taken to comprehensively consider factorsas the expected future cash flow, service life and discount rate of the assets.In case of measurement result of recoverable amount showing that recoverable amount of the asset is lowerthan its book value, the book value shall be written down to the recoverable amount, and the written down amountshall be recognized as the loss of asset impairment and included in the current profits and losses; besides,corresponding provision for asset impairment shall be made at the same time.
32. Long-term deferred expenses
Long-term deferred expenses shall be recorded according to the actual amount, and shall be averagelyamortized in the benefit period or the specified period. In case future accounting period cannot benefit fromlong-term deferred expenses, all unamortized value of the item shall be transferred into the current profits and
losses.
33. Contractual liabilities
The Company shall list contractual assets or liabilities in the balance sheet based on the relationship betweenthe performance of obligations and customer payment. Obligation of the Company to transfer commodities orprovide services to customers for consideration received or receivable from customers shall be listed ascontractual liabilities.
34. Employee compensation
(1) Accounting treatment of short-term compensation
Employee compensation refers to various forms of remuneration or compensation provided by the Companyfor obtaining services provided by employees or dissolving labor relations. Employee compensation includesshort-term compensation, post-employment benefits, dismissal benefits and other long-term employee benefits.Benefits provided by the Company to employees’ spouses, children and dependants, family members of deceasedemployees as well as other beneficiaries shall also be included in employee compensation.
Share-based payments issued by the enterprise to its employees shall also be included in employeecompensation, and shall be handled in accordance with relevant provisions of Accounting Standards for BusinessEnterprises No.11- Share-based Payments.
The Company shall recognize actual short-term compensation as liabilities and include it in the currentprofits and losses or related asset costs during the accounting period when employees provide services. Where,non-monetary welfare shall be measured at fair value.
(2) Accounting treatment of post-employment benefits
(3) Accounting treatment of dismissal benefits
In case the Company terminates labor relationship with employees prior to the expiration of employee’slabor contract, or offers compensation to encourage employees to accept the layoff voluntarily, it shall confirm thecompensation for termination of labor relationship with employees and include the compensation amount in the
current profits and losses at the earlier time when it fails to unilaterally withdraw labor relationship terminationplan or layoff proposal and confirms costs related to reorganization involving the payment of dismissal benefits.
(4) Accounting treatment of other long-term employee benefits.
Employees of the Company have accepted the social basic endowment insurance organized and implemented bythe local labor and social security departments. The Company shall pay endowment insurance premium to thelocal agency handling with social basic endowment insurance on a monthly basis based on the payment base andproportion of the local social basic endowment insurance. After employee retirement, the local labor and socialsecurity department shall pay basic social pension to retired employees. The Company shall recognize amount tobe paid according to the above social security provisions as liabilities and include it into the current profits andlosses or related asset cost during the accounting period when employees provide services.
35. Lease liabilities
On the beginning date of the lease term, the Company recognizes the present value of the unpaid leasepayments as lease liabilities (except for short-term leases and low-value asset leases).When calculating the presentvalue of lease payments, the Company adopts the interest rate implicit in the lease as the discount rate; if theinterest rate implicit in the lease cannot be determined, the lessee's incremental loan interest rate shall be used asthe discount rate. The Company calculates the interest expense of the lease liability in each period of the leaseterm according to the fixed periodic interest rate and includes it in the current profit and loss, unless it is otherwisespecified that it shall be included in the relevant asset cost. The amount of variable lease payments not included inthe measurement of lease liabilities shall be included in the current profit and loss when they actually occur,unless it is otherwise specified that they shall be included in the relevant asset cost. After the beginning date of thelease term, when the substantial fixed payment amount changes, the expected amount payable for the guaranteedresidual value changes, the index or ratio used to determine the lease payment amount changes, or the evaluationresult or actual exercise of the purchase option, renewal option or termination option changes, the Company shallremeasure the lease liabilities according to the present value of the changed lease payments.
36. Estimated liabilities
None
37. Share-based payment
1. Types of share-based payment
It includes equity-settled share-based payment and cash-settled share-based payment
2. Determination method of fair value of equity instrument
(1) In case of active market, it shall be determined according to the quoted price in the active market.
(2) In case of no active market, it shall be determined by adopting valuation technologies, including referringto prices used in recent market transactions by parties familiar with the situation and willing to trade, current fairvalue of other financial instruments that are essentially the same, discounted cash flow method and option pricingmodel.
3. Basis for confirming the best estimate of vesting equity instruments
Estimation shall be based on the latest available changes on vesting employee number and other subsequentinformation.
4. Accounting treatment of implementing, modifying and terminating share-based payment plan
(1) Equity-settled share-based payment
Equity-settled share-based payment in exchange for employee services that can be exercised immediatelyafter the grant shall be included in the relevant costs or expenses according to the fair value of equity instrumentson the grant date, and the capital reserve shall be adjusted accordingly. For equity-settled share-based payment inexchange for employee services only after completing service within the waiting period or reaching the specifiedperformance conditions, it is required to include the services obtained in the current period into relevant costs orexpenses according to the best estimate of number of vesting equity instruments and the fair value on the grantdate of equity instruments on each balance sheet date within the waiting period, and the capital reserve shall beadjusted accordingly.
For equity-settled share-based payment in exchange for other party’s services, if the fair value of otherparty’s services can be reliably measured, it shall be measured based on the fair value of other party’s services onthe acquisition date; In case the fair value of other party’s services cannot be reliably measured, but the fair valueof equity instruments can be reliably measured, it shall be measured based on the fair value of equity instruments
on the acquisition date and shall be included in relevant costs or expenses; besides, the owner’s equity shall beincreased accordingly.
(2) Cash-settled share-based payment
Cash-settled share-based payment in exchange for employee services that can be exercised immediately afterthe grant shall be included in relevant costs or expenses according to the fair value of the liabilities undertaken bythe Company on the grant date, and the liabilities shall be increased accordingly. For cash-settled share-basedpayment in exchange for employee services only after completing service within the waiting period or reachingthe specified performance conditions, it is required to include the services obtained in the current period intorelevant costs, expenses and corresponding liabilities according to the best estimate of vesting rights and the fairvalue of the liabilities undertaken by the Company on each balance sheet date within the waiting period.
(3) Modification and termination of share-based payment plan
In case of increase of fair value of the equity instruments granted due to modification, the Company shallrecognize the increase of services obtained based on the increase of fair value of equity instruments; In case ofincrease of the number of equity instruments granted due to modification, the Company shall recognize the fairvalue of the increased equity instruments as the increase of services obtained accordingly; Besides, if theCompany modifies vesting conditions in a way beneficial to employees, it shall consider all modified vestingconditions when dealing with the vesting conditions.
In case of decrease of fair value of the equity instruments granted due to modification, the Company shallcontinue to recognize the amount of services obtained based on the fair value of equity instruments on the grantdate without considering the decrease of fair value of equity instruments; In case of decrease of the number ofequity instruments granted due to modification, the Company shall recognize the decreased part as thecancellation of granted equity instruments; Besides, if the Company modifies vesting conditions in a way notbeneficial to employees, it shall not consider the modified vesting conditions when dealing with vestingconditions.
In case the Company cancels or settles the granted equity instruments within the waiting period (except thosecancelled due to failure to meet the vesting conditions), the cancellation or settlement shall be accelerated forvesting, and the amount originally confirmed in the remaining waiting period shall be recognized immediately.
Share-based payment refers to the transaction of granting equity instruments or undertaking liabilities
determined on the basis of equity instruments to obtain services provided by employees and other parties.Share-based payment can be divided into equity-settled share-based payment and cash-settled share-basedpaymentEquity-settled share-based payment in exchange for employee services shall be measured at the fair value ofequity instruments granted to employees. Cash-settled share-based payment shall be measured at the fair value ofthe Company’s liabilities calculated and determined on the basis of shares or other equity instruments.
38. Preferred shares, perpetual bonds and other financial instruments
None
39. Revenue
Accounting policies adopted for revenue recognition and measurement
1. Revenue recognition
The Company’s revenue mainly includes sales revenue of intelligent controller, lithium battery, motor andcontrol system.
The Company has fulfilled performance obligation in the Contract, that is, recognizing revenue when thecustomer obtains the control right of relevant commodities. Obtaining of the control right of relevant commoditiesmeans to be able to dominate the use of the commodities and obtain almost all economic benefits arisingtherefrom.
2. The Company shall judge nature of relevant performance obligations as “performance obligations fulfilledin a certain period” or “performance obligations fulfilled at a certain time point” based on relevant provisions ofrevenue standards, and shall confirm revenue according to the following principles respectively.
(1) In case the Company meets one of the following conditions, it shall fulfill the performance obligationswithin a certain period of time:
① Customers obtain and consume economic benefits arising from performance of the Company during theCompany’s performance of the Contract.
② Customers can control the assets under construction during the Company’s performance of the Contract.
③ Assets of the Company during the performance of the Contract are irreplaceable, and the Company shallbe entitled to collect money for the performance part completed so far in the whole contract period.For performance obligations fulfilled within a certain period of time, the Company shall recognize revenueaccording to the performance progress within that period, except that the performance progress cannot bereasonably determined. The Company shall consider nature of commodities, and shall determine the properperformance progress by adopting the output method or the input method.
(2) For performance obligations fulfilled at a certain time point rather than in a certain period, the Companyshall recognize revenue at the time when customers obtain the control right of relevant commodities.
When judging whether customers have obtained the control right of relevant commodities, the Companyconsider the following signs:
① The Company shall be entitled to immediately collect revenues from commodities, which means thatcustomers have the obligation to pay for commodities.
② The Company has transferred the legal ownership of commodities to customers, which means thatcustomers have obtained the legal ownership of commodities.
③ The Company has transferred commodities in kind to customers, which means that customers havepossessed commodities in kind.
④ The Company has transferred main risks and rewards related to the ownership of commodities tocustomers, which means that customers have obtained main risks and rewards related to the ownership ofcommodities.
⑤ Customers have accepted the commodities.
⑥ Other indications that customers have obtained the control right of commodities.
3. Specific revenue recognition method of the Company
In case the sales contract between the Company and customers has been deemed as a performance obligationfulfilled at a certain time point, the specific revenue recognition method shall be formulated according to theactual situation of the Company’s product sales as follows:
Domestic sales: ① In case customers take delivery of commodities in cash, the Company shall consider thatrisks and rewards of the ownership of products have been transferred to customers, and shall confirm the sales
revenue. ② In case of advance collection and settlement, the receiving order shall be confirmed by the oppositecustomer after delivery, then the Company shall consider that risks and rewards of the ownership of products havebeen transferred to customers, and shall confirm the sales revenue. ③ In case of sale on credit, customers shallsettle according to the account period, and shall obtain the confirmation receipt from the opposite customer afterdelivery according to Customers’ order, so as to transfer risks and rewards of product ownership to customers;besides, the Company shall confirm the sales revenue.Foreign sales: the Company shall deliver commodities according to the signed order, hold special exportinvoice, delivery note and other original documents for customs clearance and export, pass customs audit,complete export declaration procedures, obtain relevant declaration documents to transfer risk reward, and recordthe sales revenue based on the delivery order, special export invoice and customs declaration form.
4. Measurement of revenue
The Company shall measure revenue according to the transaction price allocated to each individualperformance obligation. In determining the transaction price, the Company shall consider the influence of variableconsideration, significant financing components in the Contract, non-cash consideration, consideration payable tocustomers as well as other factors.
(1) Variable consideration
The Company shall determine the best estimate of variable consideration according to the expected value orthe most likely amount, but the transaction price including the variable consideration shall not exceed theaccumulated recognized revenue that will not be significantly reversed when relevant uncertainty is eliminated.When evaluating whether the accumulative recognized revenue is unlikely to be significantly reversed, theenterprise shall further consider the possibility and proportion of revenue reversal.
(2) Significant financing components
In case of significant financing components in the Contract, the Company shall determine the transactionprice according to the amount payable in cash when assuming that customers obtain the control right ofcommodities. Difference between the transaction price and the contract consideration shall be amortized byadopting the effective interest rate method during the contract period.
(3) Non-cash consideration
In case customers pay non-cash consideration, the Company shall determine the transaction price accordingto the fair value of the non-cash consideration. In case the fair value of non-cash consideration cannot bereasonably estimated, the Company shall indirectly determine the transaction price by referring to the separateselling price of commodities for transferring commodities to customers that it promises.
(4) Consideration payable to customers
Consideration payable to customers shall be written down against the transaction price, and the currentincome shall be offset at the later of confirming relevant income or paying (or promising to pay) customer’sconsideration, except that the consideration payable to customers is to obtain other clearly distinguishablecommodities from customers.
In case the consideration payable by an enterprise to customers is to obtain other clearly distinguishablecommodities from customers, the purchased commodities shall be confirmed in a way consistent with otherpurchases of the enterprise. In case the consideration payable by an enterprise to customers exceeds the fair valueof a clearly distinguishable commodity obtained from the customer, the excess amount shall be used to offset thetransaction price. In case the fair value of clearly distinguishable commodities obtained from customers cannot bereasonably estimated, the enterprise shall offset the transaction price with the consideration payable to customersin full.
Differences in revenue recognition accounting policies caused by different business models of similarbusinesses
None
40. Government subsidies
1. Government subsidies include government subsidies related to assets and government subsidies related toincome.
2. In case the government subsidies can be included in monetary assets, they shall be measured according tothe amount received or receivable; In case the government subsidies can be classified as non-monetary assets,they shall be measured at fair value, and once the fair value cannot be obtained reliably, they shall be measured innominal amount.
3. Government subsidies calculated by adopting the gross method
(1) Government subsidies related to assets shall be recognized as deferred income and included in profits andlosses by stages in a reasonable and systematic way within the service life of relevant assets. In case relevantassets are sold, transferred, scrapped or damaged prior to the end of their service life, the balance of relevantdeferred income that has not been allocated shall be transferred to the profits and losses of the current period ofasset disposal.
(2) Government subsidies related to income and used to compensate related expenses or losses in the laterperiod shall be recognized as deferred income, and shall be included in the current profits and losses during theperiod when related expenses are recognized; subsidies used to compensate relevant expenses or losses incurredshall be directly included in the current profits and losses.
4. Government subsidies calculated by adopting the net method
(1) Government subsidies related to assets shall be used to offset the book value of relevant assets;
(2) Government subsidies related to income and used to compensate related expenses or losses in the laterperiod shall be recognized as deferred income, and shall be used to offset related costs when related expenses arerecognized; subsidies used to compensate relevant expenses or losses incurred shall be directly used to offsetrelated costs.
5. The Company shall adopt the gross method to calculate the government subsidies received.
6. For government subsidies including asset-related part and income-related part, measures shall be taken todistinguish different parts and carry out accounting treatment separately; Part difficult to distinguish shall beclassified as government subsidies related to income.
7. The Company shall include the government subsidies related to its daily activities in other incomeaccording to the essence of economic business, and shall include the government subsidies unrelated to its dailyactivities in non-operating income and expenditure.
8. For discount interest of preferential policy loans to be obtained by the Company, two measures shall beadopted, including that the Ministry of Finance allocates the discount funds to the lending banks and that theMinistry of Finance allocates the discount funds to the Company:
(1) In case the Ministry of Finance allocates the discount funds to the lending banks, and the lending bankprovides loans to the Company at preferential policy interest rate, the Company shall choose the followingmethods for accounting treatment:
a. Taking the loan amount actually received as the entry value of the loan, and calculating relevant borrowingcosts based on the loan principal and the preferential policy interest rate.
b. Taking the fair value of loan as the entry value, calculate the borrowing costs by adopting the effectiveinterest rate method, and recognizing the difference between the actual received amount and the fair value of theloan as deferred income. Deferred income shall be amortized by adopted the effective interest rate method withinthe duration of loan to offset relevant borrowing costs.
(2) In case the Ministry of Finance allocates the discount funds to the Company, the Company will writedown the corresponding discount interest against relevant borrowing costs.
41. Deferred income tax assets / Deferred income tax liabilities
1. It is required to calculate and recognize the deferred income tax assets or liabilities according to thedifference between the book value of the assets and liabilities and corresponding tax base (in case the tax base ofitems not recognized as assets and liabilities can be determined according to the provisions of the tax law, thedifference between the tax base and their book amount shall be adopted) as well as the applicable tax rate during theperiod of expected recovery of the assets or settlement of the liabilities.
2. Recognition of deferred income tax assets shall be limited to the taxable income that is likely to beobtained to offset temporary deductible differences. In case of conclusive evidence showing that sufficient taxableincome is likely to be obtained in the future to offset temporary deductible differences, the deferred income taxassets not recognized in the previous accounting period shall be recognized on the balance sheet date.
3. The book value of deferred income tax assets shall be reviewed on the balance sheet date. In case it isimpossible to obtain enough taxable income to offset the benefits of the deferred income tax assets in the future,the book value of the deferred income tax assets shall be written down. If it is likely to obtain enough taxableincome, the write down amount shall be reversed.
4. The current income tax and deferred income tax of the Company shall be recognized as income taxexpense or income, and shall be included in the current profits and losses, except for income tax arising from thefollowing circumstances: (1) business combination; (2) transactions or matters directly recognized in the owner’sequity.
42. Lease
(1) Accounting treatment of operating lease
1. Lessee
When the Company is a lessee, except for short-term leases and low-value asset leases with simplifiedtreatment, the use right assets and lease liabilities shall be recognized for the lease on the beginning date of thelease term.After the beginning date of the lease term, the Company adopts the cost model for subsequent measurement of theuse right assets. The provision for the depreciation of the use right assets shall be made with reference to therelevant depreciation provisions of the Accounting Standards for Business Enterprises No. 4 - Fixed Assets. If thelessee can reasonably determine that it will obtain the ownership of the leased asset upon the expiration of thelease term, it shall make provision for the depreciation within the remaining service life of the leased asset. If it isnot reasonable to be certain that the lessee will obtain the ownership of the leased assets at the expiry of the leaseterm, the leased assets should be calculated and withdrawn as depreciation over the shorter one of the lease termor the remaining service life. The Company determines whether the use right assets are impaired in accordancewith the Accounting Standards for Business Enterprises No. 8 - Asset Impairment, and carries out accountingtreatment for the identified impairment losses.The Company calculates the interest expense of the lease liability in each period of the lease term accordingto the fixed periodic interest rate and includes it in the current profit and loss. If it shall be included in the relevantasset cost according to the Accounting Standards for Business Enterprises No. 17 - Borrowing Costs and otherstandards, the provisions thereof shall apply.For short-term leases and low-value asset leases, the Company chooses not to recognize use right assets andlease liabilities, and the lease payments for short-term leases and low-value asset leases are included in therelevant asset cost or current profit and loss according to the straight-line method in each period of the lease term.
2. Lessor
If the Company is the lessor, it adopts the straight-line method to recognize the lease receipts of operatingleases as rental income during each period of the lease term. The initial direct expenses related to operating leasesshall be capitalized, amortized on the same basis as the recognition of rental income during the lease term, andincluded in the current profit and loss by stages.
For the fixed assets in the operating lease assets, the Company shall adopt the depreciation policy of similarassets for depreciation; other operating lease assets shall be amortized by systematic and reasonable methods inaccordance with the accounting standards for business enterprises applicable to the assets. The Companydetermines whether the operating lease assets are impaired in accordance with the Accounting Standards forBusiness Enterprises No. 8 - Asset Impairment, and carries out corresponding accounting treatment.
(2) Accounting treatment of financing lease
1. Lessee
When the Company is a lessee, except for short-term leases and low-value asset leases with simplifiedtreatment, the use right assets and lease liabilities shall be recognized for the lease on the beginning date of thelease term.After the beginning date of the lease term, the Company adopts the cost model for subsequent measurement of theuse right assets. The provision for the depreciation of the use right assets shall be made with reference to therelevant depreciation provisions of the Accounting Standards for Business Enterprises No. 4 - Fixed Assets. If thelessee can reasonably determine that it will obtain the ownership of the leased asset upon the expiration of thelease term, it shall make provision for the depreciation within the remaining service life of the leased asset. If it isnot reasonable to be certain that the lessee will obtain the ownership of the leased assets at the expiry of the leaseterm, the leased assets should be calculated and withdrawn as depreciation over the shorter one of the lease termor the remaining service life. The Company determines whether the use right assets are impaired in accordancewith the Accounting Standards for Business Enterprises No. 8 - Asset Impairment, and carries out accountingtreatment for the identified impairment losses.
The Company calculates the interest expense of the lease liability in each period of the lease term accordingto the fixed periodic interest rate and includes it in the current profit and loss. If it shall be included in the relevantasset cost according to the Accounting Standards for Business Enterprises No. 17 - Borrowing Costs and otherstandards, the provisions thereof shall apply.
For short-term leases and low-value asset leases, the Company chooses not to recognize use right assets andlease liabilities, and the lease payments for short-term leases and low-value asset leases are included in therelevant asset cost or current profit and loss according to the straight-line method in each period of the lease term.
2. Lessor
If the Company is a lessor, on the beginning date of the lease term, the finance lease receivables shall berecognized for the financing lease, the finance lease assets shall be derecognized, and the interest income in eachperiod within the lease term shall be calculated and recognized according to the fixed periodic interest rate.
43. Other important accounting policies and accounting estimation
Hedge accounting
The hedge means the risk management activity where the enterprise designates the financial instruments asthe hedge instruments for the risk exposure due to the management of the specific risks such as foreign exchangerisk, interest rate risk, price risk, credit risk so that the fair value or the cash flow changes, which is expected tocountervail all or part of the fair value or cash flow change of the hedged projects.
1. In the hedge accounting, the hedge is divided into fair value hedge, cash flow hedge, and net investmenthedge for overseas operation.
2. Only when the fair value hedge, cash flow hedge, or net investment hedge for overseas operation meet thefollowing conditions at the same time can the hedge accounting method stipulated by the Code for handling.
(1) The hedge relationship is only composed of the hedge instruments and hedged projects that meet theconditions; (2) When the hedge begins, the enterprise officially designates the hedge instruments and hedgedprojects and prepares the written documents about hedge relationship and the risk management strategies and riskmanagement objectives related to the hedge for the enterprise. These documents at least describe the hedgeinstrument, hedged projects, nature of the hedged risks, and evaluation methods on hedge effectiveness (includingthe forming reason analysis for invalid part of the hedge and the confirmation methods of the hedge ratio) etc. (3)The hedge relationship conforms to the requirements of hedge effectiveness.
If the hedge meets the following conditions at the same time, the enterprise shall identify that the hedgerelationship conforms to the requirements of hedge effectiveness:
(a) There is the economic relationship between the hedged projects and hedge instruments. The economicrelationship makes the value of the hedge instruments and hedged projects change in the reverse direction due tothe same hedged risks.
(b) In the value change generated for the hedged projects and hedge instruments, the effect of the credit riskis not dominant.
(c) The hedge ratio of the hedge relationship shall be equal to the ratio between the hedged project quantityof the actual hedge for the enterprise and the actual quantity of the hedge instruments and shall not reflect theunbalance of the relative weight between the hedged projects and hedge instruments, which will cause the hedgeinvalidation and may generate the accounting results not consistent with the hedge accounting objectives.
The enterprise shall continuously evaluate whether the hedge relationship conforms to the hedgeeffectiveness requirements when the hedge begins and during sequent periods, especially for the analysis theforming reasons why it is expected to affect the hedge relationship due to the invalid part of the hedge during theresidual periods of the hedge. The enterprise shall at least evaluate the hedge relationship on the day of balancesheet and when the major changes will happen for relevant situations affecting the hedge effectivenessrequirements.
If the hedge relationship does not conform to the hedge effectiveness requirements any more due to thehedge ratio, but the risk management objective to designate the hedge relationship does not change, the enterpriseshall re-balance the hedge relationship.
3. Accounting handling of the hedge.
(1) Fair value hedge
If the fair value hedge meets the conditions of the hedge accounting methods, it shall be handled inaccordance with the provisions below:
(a) The profit or loss generated by the hedge instrument shall be incorporated into the profits and losses. Ifthe hedge instrument is used to hedge the non-tradable equity instrument investment (or its components) which ismeasured at fair value with the changes including in other comprehensive income, the profit or loss generated bythe hedge instruments shall be incorporated into other comprehensive income.
(b) The profit or loss generated by the hedged projects due to the hedge risk exposure shall be incorporatedinto the current profit or loss. At the same time, the account value shall be adjusted for the confirmed hedgedprojects measured at the fair value.
(2) Cash flow hedge
If the cash flow value hedge meets the conditions to apply the hedge accounting methods, it shall be handledin accordance with the provisions below:
(a) If the profit or loss generated by the hedge instrument belongs to the valid part of the hedge as the cashflow hedge reserve, it shall be incorporated into other comprehensive income. The amount of cash flow hedgereserve included in other comprehensive income in each period shall be the change amount of cash flow hedgereserve in the current period.(b) If the profit or loss generated by the hedge instrument belongs to the invalid part of the hedge (that is,other profit or loss after deducting other comprehensive income), it shall be incorporated into the current profitsand losses.
(3) Net investment hedge for overseas operation
As for the net investment hedge for overseas operation, including the hedge of monetary items accounting aspart of net investment, it shall be handled in accordance with the provisions similar to the cash flow hedgeaccounting:
(a) If the profit or loss generated by the hedge instrument belongs to the valid part of the hedge, it shall beincorporated into other comprehensive income.
When all or part of the overseas business is disposed, the above profit or loss of hedge instruments includedin other comprehensive income shall be transferred out and incorporated into the current profits and losses.
(b) If the profit or loss generated by the hedge instrument belongs to the invalid part of the hedge, it shall beincorporated into the current profits and losses.
Repurchase shares
If the Company or its subsidiaries shares are acquired due to the reduction of registered capital or reward ofemployees, the amount actually paid shall be treated as the treasury share, and the record shall be made forreference. If the repurchase shares are cancelled, the capital reserve will be offset by the difference between thetotal par value of the cancelled shares and the number of cancelled shares and the amount paid for the actualrepurchase. If the capital reserve is insufficient to be offset, the retained earnings shall be offset; If the repurchaseshares are awarded to the employees of the Company as equity-settled share-based payment, when the employeesexercise the right to purchase the shares of the Company or its subsidiaries and receive the price, the cost oftreasury shares delivered to the employees and the accumulated amount of capital reserve (other capital reserves)during the waiting period shall be resold, and the capital reserve (capital premium or share premium) shall beadjusted according to the difference.
44. Important accounting policy and accounting estimation changes
(1) Important accounting policy changes
√ applicable □ not applicable
| Contents and reasons of the accounting policy change | Approval procedures | Remarks |
| On December 7, 2018, the Ministry of Finance revised and issued the Accounting Standards for Business Enterprises No. 21 - Lease (CK [2018] No. 35), requiring domestic listed enterprises to implement the new lease standards as of January 1, 2021.According to the revised accounting standards, the Company was required to make corresponding changes to the original accounting policies. | Not applicable |
Impact of changes in new lease standards on the Company:
1. Under the new lease standards, except for short-term leases and low-value asset leases, the lessee will no longerdistinguish between financing leases and operating leases, and for all leases, the same accounting treatment willbe adopted, and use right assets and lease liabilities must be recognized;
2. For the use right assets, if the lessee can reasonably determine that it will obtain the ownership of the leasedassets upon the expiration of the lease term, provision for depreciation shall be made within the remaining servicelife of the leased assets. If it is not reasonable to be certain that the lessee will obtain the ownership of the leasedassets at the expiry of the lease term, the leased assets should be calculated and withdrawn as depreciation overthe shorter one of the lease term or the remaining service life. At the same time, the lessee shall determine whetherthe use right assets are impaired and carry out accounting treatment for the identified impairment losses;
3. For lease liabilities, the lessee shall calculate the interest expenses of the lease liabilities during each period ofthe lease term and include them in the current profit and loss;
4. For short-term leases and low-value asset leases, the lessee may choose not to recognize use right assets andlease liabilities, and shall include them in the relevant asset cost or current profit and loss according to thestraight-line method or other systematic and reasonable methods during each period of the lease term.Specifically, the implementation of the new lease standards resulted in an increase of 30.94 million yuan in theCompany's use right assets and 30.94 million yuan in lease liabilities than at the beginning of the period. Exceptthat, they had no other impact on the data of the statements at the beginning of the period.
(2) Important accounting estimation changes
□ applicable √ not applicable
(3) Related items in financial statements at the beginning of the year when the new lease standards areimplemented from 2021 at the first timeApplicableWhether it is needed to adjust the balance sheet account at the beginning of the year
√ Yes □ No
Consolidated Balance SheetUnit: Yuan
| Items | December 31, 2020 | January 1, 2021 | Adjustment quantity |
| Current assets: | |||
| Monetary capital | 1,219,095,476.50 | 1,219,095,476.50 | |
| Settlement of provisions | |||
| Loans to other banks | |||
| Trading financial assets | 226,491,482.10 | 226,491,482.10 | |
| Derivative financial assets | |||
| Notes receivable | 39,477,930.63 | 39,477,930.63 | |
| Accounts receivable | 1,701,111,153.84 | 1,701,111,153.84 | |
| Receivables financing | 246,656,027.27 | 246,656,027.27 | |
| Prepayments | 17,735,229.99 | 17,735,229.99 | |
| Premiums receivable | |||
| Reinsurance accounts receivable | |||
| Reinsurance contract reserves receivable | |||
| Other receivables | 40,728,126.64 | 40,728,126.64 | |
| Including: interest receivable | |||
| Dividends receivable | |||
| Repurchase of financial assets for resale | |||
| Inventory | 1,115,312,868.62 | 1,115,312,868.62 | |
| Contractual assets | |||
| Assets held for sale | |||
| Non-current assets due within one year | |||
| Other current assets | 68,175,222.37 | 68,175,222.37 |
| Total current assets | 4,674,783,517.96 | 4,674,783,517.96 | |
| Non-current assets: | |||
| Loans and advances granted | |||
| Debt investment | |||
| Other debt investment | |||
| Long-term receivables | |||
| Long-term equity investment | 6,502,528.13 | 6,502,528.13 | |
| Other equity instrument investment | |||
| Other non-current financial assets | |||
| Investment real estate | 89,238,265.71 | 89,238,265.71 | |
| Fixed assets | 1,096,875,640.94 | 1,096,875,640.94 | |
| Construction in progress: | 292,474,798.41 | 292,474,798.41 | |
| Productive biological assets | |||
| Oil and gas assets | |||
| Use right assets | 30,939,385.41 | 30,939,385.41 | |
| Intangible assets | 309,794,540.63 | 309,794,540.63 | |
| Development expenditure | 68,518,375.79 | 68,518,375.79 | |
| Goodwill | 108,637,368.48 | 108,637,368.48 | |
| Long-term deferred expenses | 72,077,671.09 | 72,077,671.09 | |
| Deferred income tax assets | 55,192,974.75 | 55,192,974.75 | |
| Other non-current assets | 34,639,355.39 | 34,639,355.39 | |
| Total non-current assets | 2,133,951,519.32 | 2,164,890,904.73 | 30,939,385.41 |
| Total assets | 6,808,735,037.28 | 6,839,674,422.69 | 30,939,385.41 |
| Current liabilities: | |||
| Short-term loans | 402,151,500.00 | 402,151,500.00 | |
| Borrowing money from the central bank | |||
| Borrowed funds | |||
| Trading financial liabilities | |||
| Derivative financial liabilities | |||
| Notes payable | 715,574,653.91 | 715,574,653.91 | |
| Accounts payable | 1,549,906,339.72 | 1,549,906,339.72 | |
| Advance receipt | 487,267.17 | 487,267.17 | |
| Contractual liabilities | 72,576,117.56 | 72,576,117.56 | |
| Financial assets sold for repurchase |
| Deposit absorption and interbank deposit | |||
| Acting trading securities | |||
| Acting underwriting securities | |||
| Employee compensation payable | 175,503,764.12 | 175,503,764.12 | |
| Taxes payable | 60,256,015.60 | 60,256,015.60 | |
| Other payables | 57,160,615.93 | 57,160,615.93 | |
| Including: Interest payable | |||
| Dividends payable | |||
| Service charges and commissions payable | |||
| Reinsurance accounts payable | |||
| Liabilities held for sale | |||
| Non-current liabilities due within one year | |||
| Other current liabilities | |||
| Total current liabilities | 3,033,616,274.01 | 3,033,616,274.01 | |
| Non-current liabilities | |||
| Insurance contract reserve | |||
| Long-term loans | 200,000,000.00 | 200,000,000.00 | |
| Bonds payable | |||
| Including: Preferred shares | |||
| Perpetual bonds | |||
| Lease liabilities | 30,939,385.41 | 30,939,385.41 | |
| Long-term payables | |||
| Long-term employee compensation payable | |||
| Estimated liabilities | |||
| Deferred income | 14,624,770.00 | 14,624,770.00 | |
| Deferred income tax liabilities | 11,819,861.30 | 11,819,861.30 | |
| Other non-current liabilities | |||
| Total non-current liabilities | 226,444,631.30 | 257,384,016.71 | 30,939,385.41 |
| Total liabilities | 3,260,060,905.31 | 3,291,000,290.72 | 30,939,385.41 |
| Owner's equity: | |||
| Share capital | 1,135,216,809.00 | 1,135,216,809.00 | |
| Other equity instruments | |||
| Including: Preferred shares | |||
| Perpetual bonds |
| Capital reserves | 956,734,039.75 | 956,734,039.75 | |
| Less: treasury shares | 80,017,965.68 | 80,017,965.68 | |
| Other comprehensive income | -24,555,229.97 | -24,555,229.97 | |
| Special reserve | |||
| Surplus reserves | 151,359,957.53 | 151,359,957.53 | |
| General risk provision | |||
| Undistributed profit | 1,324,944,369.91 | 1,324,944,369.91 | |
| Total owner's equity attributable to the parent company | 3,463,681,980.54 | 3,463,681,980.54 | |
| Minority equity | 84,992,151.43 | 84,992,151.43 | |
| Total owners' equity | 3,548,674,131.97 | 3,548,674,131.97 | |
| Total liabilities and owners' equity | 6,808,735,037.28 | 6,839,674,422.69 | 30,939,385.41 |
Adjustment situation representationIn accordance with the requirements of the Accounting Standards for Business Enterprises No. 21 - Lease asissued by the Accounting Department of the Ministry of Finance on December 7, 2018, the new standards shall beimplemented for enterprises listed at home and abroad as of January 1, 2021. The standards require that any lesseeshall choose one of the following methods to conduct bridging accounting treatment for leases, which shall beuniformly applied to all leases in which it is a lessee: (i) The retroactive adjustment method shall be adopted inaccordance with the Accounting Standards for Business Enterprises No. 28 - Changes in Accounting Policies,Accounting Estimates and Error Correction.(ii) The amounts of retained earnings and other relevant items in thefinancial statements at the beginning of the year in which the standards are first implemented shall be adjustedaccording to the cumulative impact of the first implementation of the standards, and the information ofcomparable periods shall not be adjusted. In light of with the actualities, the Company chooses the following:
"The amounts of retained earnings and other relevant items in the financial statements at the beginning of the yearin which the standards are first implemented shall be adjusted according to the cumulative impact of the firstimplementation of the standards, and the information of comparable periods shall not be adjusted. "Therefore, theCompany measures lease liabilities and use right assets at the present value discounted at the lessee's incrementalloan interest rate on the first implementation date according to the remaining lease payments of all lease contracts.Balance Sheet of Parent Company
Unit: Yuan
| Items | December 31, 2020 | January 1, 2021 | Adjustment quantity |
| Current assets: | |||
| Monetary capital | 705,163,083.52 | 705,163,083.52 | |
| Trading financial assets | 102,133,982.10 | 102,133,982.10 | |
| Derivative financial assets | |||
| Notes receivable | 6,939,021.98 | 6,939,021.98 | |
| Accounts receivable | 896,265,475.70 | 896,265,475.70 | |
| Receivables financing | 217,543,679.19 | 217,543,679.19 | |
| Prepayments | 6,953,106.28 | 6,953,106.28 | |
| Other receivables | 41,159,647.12 | 41,159,647.12 | |
| Including: interest receivable | |||
| Dividends receivable | |||
| Inventory | 209,965,269.91 | 209,965,269.91 | |
| Contractual assets | |||
| Assets held for sale | |||
| Non-current assets due within one year | |||
| Other current assets | 12,054,327.33 | 12,054,327.33 | |
| Total current assets | 2,198,177,593.13 | 2,198,177,593.13 | |
| Non-current assets: | |||
| Debt investment | |||
| Other debt investment | |||
| Long-term receivables | |||
| Long-term equity investment | 2,200,934,231.94 | 2,200,934,231.94 | |
| Other equity instrument investment | |||
| Other non-current financial assets | |||
| Investment real estate | |||
| Fixed assets | 120,829,877.70 | 120,829,877.70 | |
| Construction in progress: | 2,392,458.84 | 2,392,458.84 | |
| Productive biological assets | |||
| Oil and gas assets | |||
| Use right assets | |||
| Intangible assets | 132,732,792.93 | 132,732,792.93 | |
| Development expenditure | 44,248,718.56 | 44,248,718.56 | |
| Goodwill |
| Long-term deferred expenses | 27,739,322.93 | 27,739,322.93 | |
| Deferred income tax assets | 27,692,977.98 | 27,692,977.98 | |
| Other non-current assets | 6,997,597.90 | 6,997,597.90 | |
| Total non-current assets | 2,563,567,978.78 | 2,563,567,978.78 | |
| Total assets | 4,761,745,571.91 | 4,761,745,571.91 | |
| Current liabilities: | |||
| Short-term loans | 102,151,500.00 | 102,151,500.00 | |
| Trading financial liabilities | |||
| Derivative financial liabilities | |||
| Notes payable | 696,684,142.33 | 696,684,142.33 | |
| Accounts payable | 471,203,775.42 | 471,203,775.42 | |
| Advance receipt | |||
| Contractual liabilities | 29,103,190.50 | 29,103,190.50 | |
| Employee compensation payable | 91,953,399.79 | 91,953,399.79 | |
| Taxes payable | 28,211,920.73 | 28,211,920.73 | |
| Other payables | 299,042,515.61 | 299,042,515.61 | |
| Including: Interest payable | |||
| Dividends payable | |||
| Liabilities held for sale | |||
| Non-current liabilities due within one year | |||
| Other current liabilities | |||
| Total current liabilities | 1,718,350,444.38 | 1,718,350,444.38 | |
| Non-current liabilities | |||
| Long-term loans | |||
| Bonds payable | |||
| Including: Preferred shares | |||
| Perpetual bonds | |||
| Lease liabilities | |||
| Long-term payables | |||
| Long-term employee compensation payable | |||
| Estimated liabilities | |||
| Deferred income | 10,535,500.00 | 10,535,500.00 | |
| Deferred income tax liabilities | 8,106,676.00 | 8,106,676.00 | |
| Other non-current liabilities |
| Total non-current liabilities | 18,642,176.00 | 18,642,176.00 | |
| Total liabilities | 1,736,992,620.38 | 1,736,992,620.38 | |
| Owner's equity: | |||
| Share capital | 1,135,216,809.00 | 1,135,216,809.00 | |
| Other equity instruments | |||
| Including: Preferred shares | |||
| Perpetual bonds | |||
| Capital reserves | 1,007,315,299.41 | 1,007,315,299.41 | |
| Less: treasury shares | 80,017,965.68 | 80,017,965.68 | |
| Other comprehensive income | 5,569,575.04 | 5,569,575.04 | |
| Special reserve | |||
| Surplus reserves | 151,331,439.07 | 151,331,439.07 | |
| Undistributed profit | 805,337,794.69 | 805,337,794.69 | |
| Total owners' equity | 3,024,752,951.53 | 3,024,752,951.53 | |
| Total liabilities and owners' equity | 4,761,745,571.91 | 4,761,745,571.91 |
Adjustment situation representationNone
(4) Comparison data declaration at the early stage for the traceability and adjustment for new leasestandards implemented from 2021 at the first time
□ applicable √ not applicable
45. Others
NoneVI. Tax
1. Main tax type and rate
| Tax type | Taxation basis | Tax rate |
| VAT (value-added tax) | Revenue from sales of goods | 13%、9%、6%、3% |
| City maintenance and construction tax | Actually paid goods turnover tax | 7% |
| Corporate income tax | Taxable income | 15%、25%、16.5%、25.17%、20%、15.825%、22.46% |
| Education surcharge | Actually paid goods turnover tax | 3% |
| Local education surcharge | Actually paid goods turnover tax | 2% |
Explanation shall be made by means of disclosure where there is any taxpayer with different corporate income tax rates
| Name of taxpayer | Income tax rate |
| Shenzhen Topband Co., Ltd. | 15% |
| Shenzhen Topband Software Technology Co., Ltd. | 15% |
| Shenzhen Topband Automation Technology Co., Ltd. | 25% |
| Chongqing Topband Industrial Co., Ltd. | 25% |
| Huizhou Topband Electrical Technology Co., Ltd. | 15% |
| Shenzhen Topband Lithium Battery Co., Ltd. | 15% |
| Shenzhen YAKO Automation Technology Co., Ltd. | 15% |
| Shenzhen Yansheng Software Co., Ltd. | 12.5% |
| Topband (Hong Kong) Co., Ltd. | 16.5% |
| TOPBAND INDIA PRIVATE LIMITED | 25.17% |
| Shenzhen Allied Control System Co., Ltd. | 15% |
| Huizhou Topband Lithium Battery Co., Ltd. | 25% |
| Topband (Qingdao) Intelligent Control Co., Ltd. | 25% |
| Shenzhen Meanstone Intelligent Technology Co., Ltd. | 20% |
| Topband （Vietnam） Co.,ltd | 20% |
| Hangzhou Zhidong Motor Technology Co., Ltd. | 25% |
| TOPBAND SMART DONGNAI(VIETNAM) Co.,ltd | 20% |
| Shenzhen Topband Supply Chain Services Co., Ltd. | 25% |
| Shenzhen Spark IOT Technology Co., Ltd. | 20% |
| Shenzhen Topband Investment Co., Ltd. | 25% |
| Topband Germany GmbH | 15.825% |
| Shenzhen Senxuan Technology Co., Ltd. | 20% |
| TOPBAND JAPAN Co., Ltd. | 22.46% |
| Shenzhen Tengyi Industrial Co., Ltd. | 20% |
| Taixing Ninghui Lithium Battery Co., Ltd. | 25% |
| Topband (Qingdao) Intelligent Control Co., Ltd. | 25% |
| Shenzhen Zhongli Consulting Co., Ltd. | 20% |
| Shenzhen Tulu Innovation Co., Ltd. | 20% |
| Tulu Innovation (Hong Kong) Limited | 16.5% |
2. Tax preference
On October 31, 2017, the Company obtained the Certificate for High-tech Enterprise that is numberedGR201744204652 and issued by Shenzhen Science and Technology Innovation Commission, Shenzhen Finance
Commission, Shenzhen Municipal Office, SAT and Shenzhen Local Taxation Administration. This Certificate isvalid within 3 years from the date of issuance. On February 5, 2021, the Company has received the Certificate forHigh-tech Enterprise jointly issued by Shenzhen Science and Technology Innovation Commission, ShenzhenFinance Bureau, and Shenzhen Tax Service, State Taxation Administration, and passed the re-certification ofhigh-tech enterprises. This certification is a renewal of the original certificate that has been expired. According torelevant regulations, the Company will be entitled to the preferential policies stated by China for the high-techenterprise income tax for three consecutive years after passing the re-certification of high-tech enterprises. That is,the company shall pay its corporate income tax at 15% of corporate income tax rate from 2021 to 2023.On October 16, 2018, Shenzhen Yansheng Software Co., Ltd. obtained the Certificate for High-techEnterprise that is numbered GR201844200095 and issued by Shenzhen Science and Technology InnovationCommission, Shenzhen Finance Commission and Shenzhen Tax Service, State Taxation Administration. ThisCertificate is valid within 3 years from the date of issuance. The corporate income tax rate applicable for theCompany from 2019 to 2021 is 15% in accordance with relevant provisions of the Law of the People's Republicof China on Enterprise Income Tax, Regulations of the People's Republic of China on the Implementation ofEnterprise Income Tax and the Management Measures for the Certification of High-tech Enterprises.On November 9, 2018, Shenzhen Topband Lithium Battery Co., Ltd. obtained the Certificate for High-techEnterprise that is numbered GR201844202311 and issued by Shenzhen Science and Technology InnovationCommission, Shenzhen Finance Commission and Shenzhen Tax Service, State Taxation Administration. ThisCertificate is valid within 3 years from the date of issuance. The corporate income tax rate applicable for theCompany from 2019 to 2021 is 15% in accordance with relevant provisions of the Law of the People's Republicof China on Enterprise Income Tax, Regulations of the People's Republic of China on the Implementation ofEnterprise Income Tax and the Management Measures for the Certification of High-tech Enterprises.On November 9, 2018, Shenzhen Allied Control System Co., Ltd. obtained the Certificate for High-techEnterprise that is numbered GR201844202356 and issued by Shenzhen Science and Technology InnovationCommission, Shenzhen Finance Commission, Shenzhen Municipal Office, SAT and Shenzhen Local TaxationAdministration. This Certificate is valid within 3 years from the date of issuance. The corporate income tax rateapplicable for the Company from 2018 to 2021 is 15% in accordance with relevant provisions of the Law of thePeople's Republic of China on Enterprise Income Tax, the Regulations of the People's Republic of China on theImplementation of Enterprise Income Tax and the Management Measures for the Certification of High-tech
Enterprises.On November 9, 2018, Shenzhen YAKO Automation Technology Co., Ltd. obtained the Certificate forHigh-tech Enterprise that is numbered GR201844204122 and issued by Shenzhen Science and TechnologyInnovation Commission, Shenzhen Finance Commission, Shenzhen Municipal Office, SAT and Shenzhen LocalTaxation Administration. This Certificate is valid within 3 years from the date of issuance. The corporate incometax rate applicable for the Company from 2018 to 2021 is 15% in accordance with relevant provisions of the Lawof the People's Republic of China on Enterprise Income Tax, the Regulations of the People's Republic of China onthe Implementation of Enterprise Income Tax and the Management Measures for the Certification of High-techEnterprises.On November 9, 2018, Huizhou Topband Electrical Technology Co., Ltd. obtained the Certificate forHigh-tech Enterprise that is numbered GR201844010394 and issued by the Department of Science andTechnology of Guangdong Province, the Department of Finance of Guangdong Province, and GuangdongProvincial Tax Service, State Taxation Administration. This Certificate is valid within 3 years from the date ofissuance. The corporate income tax rate applicable for the Company from 2019 to 2021 is 15% in accordance withrelevant provisions of the Law of the People's Republic of China on Enterprise Income Tax, Regulations of thePeople's Republic of China on the Implementation of Enterprise Income Tax and the Management Measures forthe Certification of High-tech Enterprises.On December 9, 2019, Shenzhen Topband Software Technology Co., Ltd. obtained the Certificate forHigh-tech Enterprise that is numbered GR201944201381 and issued by Shenzhen Science and TechnologyInnovation Commission, Shenzhen Finance Commission, Shenzhen Municipal Office, SAT and Shenzhen LocalTaxation Administration. This Certificate is valid within 3 years from the date of issuance. The corporate incometax rate applicable for the Company from 2019 to 2021 is 15% in accordance with relevant provisions of the Lawof the People's Republic of China on Enterprise Income Tax, Regulations of the People's Republic of China on theImplementation of Enterprise Income Tax and the Management Measures for the Certification of High-techEnterprises.On July 11, 2018, the Ministry of Finance and the State Taxation Administration issued CS [2018] No. 77Notice on Further Strengthening the Efforts in Preferential Income Tax Policies for Small and Low-ProfitEnterprises. According to the Notice, from January 1, 2018 to December 31, 2020, the cap of the annual taxableincome of small and low-profit enterprises shall be increased from 500,000 yuan to 1 million yuan, and the small
and low-profit enterprises with annual taxable income of less than 1 million yuan (inclusive) shall pay theircorporate income taxes at 20% of tax rate with including their incomes reduced by 50% into their taxable incomes.Shenzhen Meanstone Intelligent Technology Co., Ltd., a subsidiary of the Company, was recognized as a smalland micro business, and shall apply 20% tax rate for its corporate income tax from 2018 to 2020.According to CS [2019] No. 13 Notice on the Implementation of Inclusive Tax Relief Policies for Small andMicro Businesses, the small and micro businesses shall pay their corporate income taxes at 20% of tax rate, andreduce the portion of not more than 1 million yuan in their annual taxable incomes by 25% and that of more than 1million yuan but not more than 3 million yuan in their annual taxable incomes by 50% before including suchportion into their taxable incomes. The provisions of this Policy apply to Shenzhen Topband Investment Co., Ltd.,Shenzhen Senxuan Technology Co., Ltd., Shenzhen Spark IOT Technology Co., Ltd., Shenzhen Tulu InnovationCo., Ltd., Huizhou Topband Lithium Battery Co., Ltd., Shenzhen Meanstone Intelligent Technology Co., Ltd.,Shenzhen Zhongli Consulting Co., Ltd., and Shenzhen Tengyi Industrial Co., Ltd. that are subsidiaries andsub-subsidiaries.On September 15, 2020, Shenzhen Yansheng Software Co., Ltd. passed the verification carried out by theIndustry and Information Technology Bureau of Shenzhen Municipality on the preferential income tax conditionsfor the enterprises engaged in software and integrated circuit design in Shenzhen. According to the provisions ofNo. 68 Announcement of Ministry of Finance and State Taxation Administration on Corporate Income TaxPolicies for Integrated Circuit Design and Software Industry issued by the Ministry of Finance and State TaxationAdministration in 2019, Shenzhen Yansheng Software Co., Ltd. shall be entitled to the preferential tax policy ofexemptions in two years and reduction in three years, that is, its corporate income tax shall be exempted from thefirst to the second year and reduced by 50% at 25% of statutory tax rate from the third to the fifth year until theexpiration of the preferential period provided that the preferential period shall be calculated from theprofit-making year before December 31, 2018.
3. Others
Topband (Hong Kong) Co., Ltd. (hereinafter referred to as "Hong Kong Topband") is a subsidiary of theCompany. It is established in Hong Kong Special Administrative Region and is subject to 16.5% of profit tax rate.TOPBAND INDIA PRIVATE LIMITED is a subsidiary of the Company. It is established in India and issubject to 25.17% of income tax rate.
Topband (Vietnam) Co., Ltd. is a sub-subsidiary of the Company. It is established in Vietnam and is subjectto 20% of income tax rate.TOPBAND SMART DONGNAI (VIETNAM) Co., Ltd. is a sub-subsidiary of the Company. It is establishedin Vietnam and is subject to 20% of income tax rate.Topband Germany GmbH is a sub-subsidiary of the Company. It is established in Germany and is subject to
15.825% of income tax rate.
TOPBAND JAPAN Co., Ltd. is a sub-subsidiary of the Company. It is established in Japan and is subject to
22.46% of corporate income tax rate.
Tulu Innovation (Hong Kong) Co., Ltd. (hereinafter referred to as "Hong Kong Tulu"), a sub-sub-subsidiaryof the Company, is an enterprise established in the Hong Kong Special Administrative Region and implements aprofit tax rate of 16.5%.VII. Notes to Items of Consolidated Financial Statements
1. Monetary capital
Unit: Yuan
| Items | Ending balance | Beginning balance |
| Cash on hand | 712,197.18 | 604,492.12 |
| Bank deposit | 1,271,197,999.84 | 1,196,226,680.89 |
| Other monetary capital | 17,954,027.87 | 22,264,303.49 |
| Total | 1,289,864,224.89 | 1,219,095,476.50 |
| Including: total amount deposited abroad | 158,988,673.32 | 153,809,647.09 |
| Total amount restricted for use due to mortgage, pledge or freezing, etc. | 5,480,466.03 | 22,264,303.49 |
Other description:
The restricted part of other monetary funds at the end of the period includes the guarantee amount of4,719,904.03 yuan for bank acceptance bill deposits and letters of guarantee and the frozen funds of in 760,562.00yuan in labor arbitration; the unrestricted accounts include the amount of 12,335,497.27 yuan in Huatai SecuritiesAccount and China Securities Depository and Clearing Company Limited Account and the e-commerce platformcollection amount of 138,064.57 yuan.
2. Trading financial assets
Unit: Yuan
| Items | Ending balance | Beginning balance |
| Financial assets measured at fair value with changes included in the current profits and losses | 330,421,910.87 | 226,491,482.10 |
| Including: | ||
| Financial products | 116,500,000.00 | 112,970,000.00 |
| Investment in equity instruments | 208,468,430.89 | 113,521,482.10 |
| Others | 5,453,479.98 | |
| Total | 330,421,910.87 | 226,491,482.10 |
3. Derivative financial assets
None
4. Notes receivable
(1) Notes receivable listed by category
Unit: Yuan
| Items | Ending balance | Beginning balance |
| Bank acceptance bill | 57,981,029.52 | 33,560,579.23 |
| Commercial acceptance bill | 10,564,521.92 | 5,917,351.40 |
| Total | 68,545,551.44 | 39,477,930.63 |
Unit: Yuan
| Category | Ending balance | Beginning balance | ||||||||
| Book balance | Provision for bad debts | Book value | Book balance | Provision for bad debts | Book value | |||||
| Amount | Proportion | Amount | Proportion of provision | Amount | Proportion | Amount | Proportion of provision | |||
| Notes receivable with single provision for bad debts | 57,981,029.52 | 99.90% | 0.00% | 57,981,029.52 | 33,560,579.23 | 99.90% | 33,560,579.23 | |||
| Including: | ||||||||||
| Bank acceptance bill | 57,981,029.52 | 99.90% | 0.00% | 57,981,029.52 | 33,560,579.23 | 99.90% | 33,560,579.23 | |||
| Notes receivable with provision for bad debts by portfolio | 10,902,499.40 | 0.10% | 337,977.48 | 3.10% | 10,564,521.92 | 6,106,657.79 | 0.10% | 189,306.39 | 3.10% | 5,917,351.40 |
| Including: | ||||||||||
| Commercial acceptance bill | 10,902,499.40 | 0.10% | 337,977.48 | 3.10% | 10,564,521.92 | 6,106,657.79 | 0.10% | 189,306.39 | 5.00% | 5,917,351.40 |
| Total | 68,883,528.92 | 100.00% | 337,977.48 | 0.01% | 68,545,551.44 | 39,667,237.02 | 100.00% | 189,306.39 | 0.00% | 39,477,930.63 |
Single provision for bad debts: 0
Unit: Yuan
| Name | Ending balance | |||
| Book balance | Provision for bad debts | Proportion of provision | Reasons for provision | |
| Bank acceptance bill | 57,981,029.52 | 0.00 | 0.00% | No risk of cashing bank acceptance bill |
| Total | 57,981,029.52 | 0.00 | -- | -- |
Provision for bad debts by portfolio: 337,977.48
Unit: Yuan
| Name | Ending balance | ||
| Book balance | Provision for bad debts | Proportion of provision | |
| Commercial acceptance bill | 10,902,499.40 | 337,977.48 | 3.10% |
| Total | 10,902,499.40 | 337,977.48 | -- |
If the provision for bad debts on notes receivable is based on the general model of expected credit loss, theinformation about the provision for bad debts shall be disclosed by referring to the disclosure method of otherreceivables:
□ applicable √ not applicable
(2) Provision for bad debts withdrawn, recovered or reversed in current period
Provision for bad debts in current period:
Unit: Yuan
| Category | Beginning balance | Amount changed in current period | Ending balance | |||
| Provision | Recover or reversal | Write-off | Others | |||
| Provision for bad debts - notes receivable | 189,306.39 | 148,671.09 | 337,977.48 | |||
| Total | 189,306.39 | 148,671.09 | 337,977.48 | |||
Of which the amount of provision for bad debts recovered or reversed in current period is significant
□ applicable √ not applicable
(3) Notes receivable pledged by the Company at the end of the period
□ applicable √ not applicable
(4) Notes receivable endorsed or discounted by the Company at the end of the period but not yet due at thebalance sheet date
Unit: Yuan
| Items | Amount derecognized at the end of the period | Amount not derecognized at the end of the period |
| Bank acceptance bill | 353,505,320.01 | |
| Commercial acceptance bill | 2,625,670.04 | |
| Total | 356,130,990.05 |
(5) Notes that the Company transferred to accounts receivable at the end of the period due tonon-performance by drawer
□ applicable √ not applicable
(6) Notes receivable actually written off in current period
□ applicable √ not applicable
5. Accounts receivable
(1) Disclosure of accounts receivable by category
Unit: Yuan
| Category | Ending balance | Beginning balance | ||||||||
| Book balance | Provision for bad debts | Book value | Book balance | Provision for bad debts | Book value | |||||
| Amount | Proportion | Amount | Proportion of provision | Amount | Proportion | Amount | Proportion of provision | |||
| Accounts receivable with provision for bad debts by single item | 5,737,558.17 | 0.27% | 5,737,558.17 | 100.00% | 0.00 | 3,787,463.00 | 0.21% | 3,787,463.00 | 100.00% | 0.00 |
| Including: | ||||||||||
| Accounts receivable with a single significant amount and single bad debt provision | 1,712,057.63 | 0.08% | 1,712,057.63 | 100.00% | 0.00 | |||||
| Accounts receivable with insignificant single amount but single provision made for bad debts | 4,025,500.54 | 0.19% | 4,025,500.54 | 100.00% | 0.00 | 3,787,463.00 | 0.21% | 3,787,463.00 | 100.00% | 0.00 |
| Accounts receivable with provision for bad debts by portfolio | 2,112,835,192.14 | 99.73% | 69,443,300.07 | 3.29% | 2,043,391,892.07 | 1,758,425,185.47 | 99.79% | 57,314,031.63 | 3.26% | 1,701,111,153.84 |
| Including: | ||||||||||
| Accounts receivable with provision for bad debts by aging combination | 2,112,835,192.14 | 99.73% | 69,443,300.07 | 3.29% | 2,043,391,892.07 | 1,758,425,185.47 | 99.79% | 57,314,031.63 | 3.26% | 1,701,111,153.84 |
| Total | 2,118,572,750.31 | 100.00% | 75,180,858.24 | 3.55% | 2,043,391,892.07 | 1,762,212,648.47 | 100.00% | 61,101,494.63 | 3.47% | 1,701,111,153.84 |
Single provision for bad debts: 5,737,558.17
Unit: Yuan
| Name | Ending balance | |||
| Book balance | Provision for bad debts | Proportion of provision | Reasons for provision | |
| Accounts receivable with a single significant amount and single bad debt provision | 1,712,057.63 | 1,712,057.63 | 100.00% | It is difficult to recover |
| Accounts receivable with insignificant single amount but single provision made for bad debts | 4,025,500.54 | 4,025,500.54 | 100.00% | It is difficult to recover |
| Total | 5,737,558.17 | 5,737,558.17 | -- | -- |
Provision for bad debts by portfolio: 69,443,300.07
Unit: Yuan
| Name | Ending balance | ||
| Book balance | Provision for bad debts | Proportion of provision | |
| Within 1 year | 2,068,294,754.73 | 64,032,008.93 | 3.10% |
| 1 to 2 years | 40,075,933.50 | 3,622,864.39 | 9.04% |
| 2 to 3 years | 2,654,776.63 | 586,971.12 | 22.11% |
| 3 to 4 years | 1,156,380.49 | 549,396.37 | 47.51% |
| 4-5 years | 8,180.00 | 6,892.47 | 84.26% |
| Over 5 years | 645,166.80 | 645,166.80 | 100.00% |
| Total | 2,112,835,192.14 | 69,443,300.07 | -- |
Disclosure by aging
Unit: Yuan
| Aging | Ending balance |
| Less than 1 year (including 1 year) | 2,074,032,312.89 |
| 1 to 2 years | 40,075,933.50 |
| 2 to 3 years | 2,654,776.63 |
| More than 3 years | 1,809,727.29 |
| 3 to 4 years | 1,156,380.49 |
| 4 to 5 years | 8,180.00 |
| Over 5 years | 645,166.80 |
| Total | 2,118,572,750.31 |
(2) Provision for bad debts withdrawn, recovered or reversed in current period
Provision for bad debts in current period:
Unit: Yuan
| Category | Beginning balance | Amount changed in current period | Ending balance | |||
| Provision | Recover or reversal | Write-off | Others | |||
| Accounts receivable with provision for bad debts by single item | 3,787,463.00 | 1,950,095.17 | 5,737,558.17 | |||
| Accounts receivable with provision for bad debts by portfolio | 57,314,031.63 | 12,209,373.44 | 80,105.00 | 69,443,300.07 | ||
| Total | 61,101,494.63 | 14,159,468.61 | 80,105.00 | 75,180,858.24 | ||
(3) Accounts receivable actually written off in current period
Unit: Yuan
| Items | Write-off amount |
| Accounts receivable actually written off | 80,105.00 |
Of which the significant write-offs of accounts receivable:
Unit: Yuan
| Name of Entity | Nature of accounts receivable | Write-off amount | Reasons for write off | Write-off procedures performed | Whether the amount was generated by related transactions |
| Shanghai Haoze Noorey Environmental Protection Technology Co., Ltd. | Payment for goods | 80,000.00 | It is not expected to be recovered | No | |
| Shenzhen Xiongtao Lithium Battery Co., Ltd. | Payment for goods | 105.00 | It is not expected to be recovered | No | |
| Total | -- | 80,105.00 | -- | -- | -- |
(4) Accounts receivable of top five ending balances grouped by debtors
Unit: Yuan
| Name of Entity | Ending balance of accounts receivable | Proportion to total ending balances of accounts receivable | Ending balance of provision for bad debts |
| No.1 | 548,318,747.84 | 25.88% | 16,997,881.18 |
| No.2 | 86,182,630.10 | 4.07% | 2,671,661.53 |
| No.3 | 74,623,188.11 | 3.52% | 2,313,318.83 |
| No.4 | 72,586,233.44 | 3.43% | 2,250,173.24 |
| No.5 | 53,183,957.62 | 2.51% | 1,648,702.69 |
| Total | 834,894,757.11 | 39.41% |
(5) Accounts receivable derecognized due to transfer of financial assets
□ applicable √ not applicable
(6) Amount of assets and liabilities formed by transferring accounts receivable and continuing to beinvolved
□ applicable √ not applicable
6. Receivables financing
Unit: Yuan
| Items | Ending balance | Beginning balance |
| Notes receivable | 140,104,632.86 | 90,426,713.39 |
| Accounts receivable | 149,144,209.02 | 156,229,313.88 |
| Total | 289,248,841.88 | 246,656,027.27 |
Changes in increase/decrease in receivables financing and changes in fair value in current period
□ applicable √ not applicable
If the provision for bad debts on receivables financing is based on the general model of expected credit loss, theinformation about the provision for bad debts shall be disclosed by referring to the disclosure method of otherreceivables:
√ applicable □ not applicable
| Provision for bad debts | Phase 1 | Phase 2 | Phase 3 | Total |
| Expected credit loss in the next 12 months | Expected credit loss for the entire duration (no credit impairment) | Expected credit loss for the entire duration (credit impairment occurred) | ||
| Balance as of January 1, 2021 | 4,843,108.73 | 4,843,108.73 | ||
| Reversal in current period | 219,638.25 | 219,638.25 |
| Balance on June 30, 2021 | 4,623,470.48 | - | - | 4,623,470.48 |
7. Prepayments
(1) Prepayments are listed by aging
Unit: Yuan
| Aging | Ending balance | Beginning balance | ||
| Amount | Proportion | Amount | Proportion | |
| Within 1 year | 30,215,158.44 | 83.63% | 16,968,264.14 | 95.68% |
| 1 to 2 years | 920,219.12 | 15.53% | 627,825.07 | 3.54% |
| 2 to 3 years | 47,508.97 | 0.26% | 113,188.10 | 0.64% |
| More than 3 years | 49,928.04 | 0.58% | 25,952.68 | 0.15% |
| Total | 31,232,814.57 | -- | 17,735,229.99 | -- |
(2) Prepayment of top five ending balance grouped by prepaid object
The total amount of prepayments of top five ending balances grouped by debtors in the year was 6,507,824.26
yuan, accounting for 20.84% of the total ending balances of prepayments.
8. Other receivables
Unit: Yuan
| Items | Ending balance | Beginning balance |
| Other receivables | 19,880,174.91 | 40,728,126.64 |
| Total | 19,880,174.91 | 40,728,126.64 |
(1) Interest receivable
□ applicable √ not applicable
(2) Dividends receivable
□ applicable √ not applicable
(3) Other receivables
1) Classification of other receivables by nature of amount
Unit: Yuan
| Nature of payment | Book balance at the end of the period | Book balance at the beginning of the period |
| VAT rebate | 1,698,394.56 | 23,817,036.82 |
| Employee loans | 7,493,171.55 | 7,886,380.07 |
| Reserve fund | 79,316.67 | |
| Margin, deposit | 13,205,256.61 | 11,276,827.12 |
| Compensation | 33,648.22 | |
| Others | 683,479.54 | 187,249.47 |
| Total | 23,193,267.15 | 43,167,493.48 |
2) Provision for bad debts
Unit: Yuan
| Provision for bad debts | Phase 1 | Phase 2 | Phase 3 | Total |
| Expected credit loss in the next | Expected credit loss for the entire duration (no credit | Expected credit loss for the entire duration (credit |
| 12 months | impairment) | impairment occurred) | ||
| Balance as of January 1, 2021 | 2,439,366.84 | 2,439,366.84 | ||
| Balance as of January 1, 2021 in the current period | —— | —— | —— | —— |
| Accrued in current period | 873,725.40 | 873,725.40 | ||
| Balance on June 30, 2021 | 3,313,092.24 | 0.00 | 0.00 | 3,313,092.24 |
Changes in book balance with significant changes in loss reserves in current period
□ applicable √ not applicable
Disclosure by aging
Unit: Yuan
| Aging | Ending balance |
| Less than 1 year (including 1 year) | 12,445,998.20 |
| 1 to 2 years | 5,225,223.50 |
| 2 to 3 years | 2,655,079.87 |
| More than 3 years | 2,866,965.58 |
| 3 to 4 years | 2,819,951.11 |
| 4 to 5 years | 5,000.00 |
| Over 5 years | 42,014.47 |
| Total | 23,193,267.15 |
3) Provision for bad debts withdrawn, recovered or reversed in current period
Provision for bad debts in current period:
Unit: Yuan
| Category | Beginning balance | Amount changed in current period | Ending balance | |||
| Provision | Recover or reversal | Write-off | Others | |||
| Provision for bad debts | 2,439,366.84 | 873,725.40 | 3,313,092.24 | |||
| Total | 2,439,366.84 | 873,725.40 | 3,313,092.24 | |||
4) Other receivables actually written off in current period
□ applicable √ not applicable
5) Other receivables of top five ending balances grouped by debtors
Unit: Yuan
| Name of Entity | Nature of payment | Ending balance | Aging | Proportion to total ending balances of other receivables | Ending balance of provision for bad debts |
| No.1 | Rent deposit | 2,168,401.92 | Within one year: 2,030,629.92; 1-2 years: 137,772 | 9.35% | 115,308.70 |
| No.2 | VAT export tax rebate | 1,698,394.56 | Within 1 year | 7.32% | |
| No.3 | Margin, deposit | 1,630,359.50 | 3 to 4 years | 7.03% | 815,179.75 |
| No.4 | Rental deposit | 1,520,178.00 | 2~3 years | 6.55% | 456,053.40 |
| No.5 | Margin, deposit | 1,000,000.00 | 3 to 4 years | 4.31% | 500,000.00 |
| Total | -- | 8,017,333.98 | -- | 34.57% | 1,886,541.85 |
6) Receivables involving government subsidies
□ applicable √ not applicable
7) Other receivables derecognized due to transfer of financial assets
□ applicable √ not applicable
8) Amount of assets and liabilities formed by transferring other receivables and continuing to be involved
□ applicable √ not applicable
9. Inventory
Whether the Company is required to comply with the disclosure requirements of the real estate industryNo
(1) Inventory classification
Unit: Yuan
| Items | Ending balance | Beginning balance | ||||
| Book balance | Provision for decline in value | Book value | Book balance | Provision for decline in value | Book value | |
| of inventories or provision for impairment of contract performance cost | of inventories or provision for impairment of contract performance cost | |||||
| Raw materials | 1,345,468,260.81 | 84,915,773.03 | 1,260,552,487.78 | 669,357,860.89 | 56,781,506.42 | 612,576,354.47 |
| Products in process | 99,829,106.18 | 99,829,106.18 | 65,058,584.18 | 65,058,584.18 | ||
| Goods on hand | 406,153,373.42 | 15,656,821.59 | 390,496,551.83 | 340,321,032.11 | 9,669,035.83 | 330,651,996.28 |
| Goods shipped in transit | 62,057,717.00 | 3,351,523.57 | 58,706,193.43 | 48,921,114.18 | 3,963,402.85 | 44,957,711.33 |
| Self-manufactured semi-finished product | 70,577,947.74 | 4,342,484.96 | 66,235,462.78 | 60,865,430.27 | 3,717,115.68 | 57,148,314.59 |
| Low-value consumables | 215,050.70 | 215,050.70 | 84,986.73 | 84,986.73 | ||
| Materials entrusted for processing | 29,547.69 | 29,547.69 | 4,834,921.04 | 4,834,921.04 | ||
| Total | 1,984,331,003.54 | 108,266,603.15 | 1,876,064,400.39 | 1,189,443,929.40 | 74,131,060.78 | 1,115,312,868.62 |
(2) Provision for decline in value of inventories and provision for impairment of contract performance cost
Unit: Yuan
| Items | Beginning balance | Increase in current period | Decrease in current period | Ending balance | ||
| Provision | Others | Reversal or write-off | Others | |||
| Raw materials | 56,781,506.42 | 86,611,430.80 | 58,477,164.19 | 84,915,773.03 | ||
| Goods on hand | 9,669,035.83 | 11,312,911.18 | 5,325,125.42 | 15,656,821.59 | ||
| Goods shipped in transit | 3,963,402.85 | 611,879.28 | 3,351,523.57 | |||
| Self-manufactured semi-finished product | 3,717,115.68 | 1,329,283.50 | 703,914.22 | 4,342,484.96 | ||
| Total | 74,131,060.78 | 99,253,625.48 | 65,118,083.11 | 108,266,603.15 | ||
(3) Description of capitalized amount of borrowing costs included in ending balance of inventory
□ applicable √ not applicable
(4) Description of current amortization amount of contract performance cost
□ applicable √ not applicable
10. Contract assets
□ applicable √ not applicable
11. Assets held for sale
□ applicable √ not applicable
12. Non-current assets due within one year
□ applicable √ not applicable
13. Other current assets
Unit: Yuan
| Items | Ending balance | Beginning balance |
| Input tax of VAT | 102,825,873.72 | 66,429,956.99 |
| Other taxes paid in advance | 14,174,678.37 | 1,716,313.34 |
| Prepaid and amortized expenses | 28,952.04 | |
| Total | 117,000,552.09 | 68,175,222.37 |
14. Debt investment
□ applicable √ not applicable
15. Other debt investment
□ applicable √ not applicable
16. Long-term receivables
□ applicable √ not applicable
17. Long-term equity investment
Unit: Yuan
| Investee | Beginning balance (book value) | Changes in increase/decrease in current period | Ending balance (book value) | Ending balance of provision for impairment | |||||||
| Additional investment | Decrease in investment | Profit and loss on investment recognized under equity method | Adjustment to other comprehensive income | Other changes in equity | Declaration of distribution for cash dividends or profits | Provision for impairment | Others | ||||
| I. Joint venture | |||||||||||
| II. Associates enterprises | |||||||||||
| Shenzhen Yuchengxin Power Technology Co., Ltd. | 9,764,719.19 | 9,764,719.19 | |||||||||
| Shenzhen Daka Optoelectronics Co., Ltd. | 6,502,528.13 | -495,808.80 | 6,006,719.33 | ||||||||
| Pas Electronic Technology (Nanjing) Co., Ltd. | 10,000,000.00 | -894,781.98 | 9,105,218.02 | ||||||||
| Subtotal | 6,502,528.13 | 10,000,000.00 | -1,390,590.78 | 24,876,656.54 | 9,764,719.19 | ||||||
| Total | 6,502,528.13 | 10,000,000.00 | -1,390,590.78 | 24,876,656.54 | 9,764,719.19 | ||||||
18. Investment in other equity instruments
□ applicable √ not applicable
19. Other non-current financial assets
□ applicable √ not applicable
20. Investment property
(1) Investment property with cost measurement model
| √ applicable □ not applicable | Unit: Yuan | ||||||
| Items | Houses and buildings | Land usage right | Construction in progress | Total | |||
| I. Original book value | |||||||
| 1. Beginning balance | 94,945,556.51 | 94,945,556.51 | ||
| 2. Increase in current period | ||||
| (1) Outsourcing | ||||
| (2) Transfer in of inventory, fixed assets and construction in progress | ||||
| (3) Increase in business merger | ||||
| 3. Decrease in current period | ||||
| (1) Disposal | ||||
| (2) Other transfer out | ||||
| 4. Ending balance | 94,945,556.51 | 94,945,556.51 | ||
| II. Accumulated depreciation and accumulated amortization | ||||
| 1. Beginning balance | 5,707,290.80 | 5,707,290.80 | ||
| 2. Increase in current period | 1,131,575.70 | 1,131,575.70 | ||
| (1) Provision or amortization | 1,131,575.70 | 1,131,575.70 | ||
| 3. Decrease in current period | ||||
| (1) Disposal | ||||
| (2) Other transfer out | ||||
| 4. Ending balance | 6,838,866.50 | 6,838,866.50 | ||
| III. Provision for impairment | ||||
| 1. Beginning balance | ||||
| 2. Increase in current period | ||||
| (1) Provision | ||||
| 3. Decrease in current period | ||||
| (1) Disposal | ||||
| (2) Other transfer out | ||||
| 4. Ending balance | ||||
| IV. Book value | ||||
| 1. Ending book value | 88,106,690.01 | 88,106,690.01 |
| 2. Beginning book value | 89,238,265.71 | 89,238,265.71 |
(2) Investment property with fair value measurement model
□ applicable √ not applicable
(3) Investment property without property certificate of title
□ applicable √ not applicable
21. Fixed assets
Unit: Yuan
| Items | Ending balance | Beginning balance |
| Fixed assets | 1,164,624,452.06 | 1,096,875,640.94 |
| Disposal of fixed assets | 385,721.54 | |
| Total | 1,165,010,173.60 | 1,096,875,640.94 |
(1) Fixed assets
Unit: Yuan
| Items | Houses and buildings | Machinery and equipment | Transportation equipment | Electronics and other equipment | Total |
| I. Original book value | |||||
| 1. Beginning balance | 752,994,459.37 | 527,780,882.24 | 2,365,946.85 | 160,407,486.10 | 1,443,548,774.56 |
| 2. Increase in current period | 289,104.03 | 123,357,240.61 | 7,836,532.24 | 131,482,876.88 | |
| (1) Acquisition | 289,104.03 | 92,455,755.13 | 7,836,532.24 | 100,581,391.40 | |
| (2) Transfer in of construction in progress | 8,517,537.94 | 8,517,537.94 | |||
| (3) Increment from enterprises merged | 22,383,947.54 | 22,383,947.54 | |||
| 3. Decrease in current period | 2,344,616.13 | 14,530,058.27 | 115,910.40 | 1,279,604.40 | 18,270,189.21 |
| (1) Disposal or scrap | 13,367,404.82 | 113,173.28 | 1,153,593.33 | 14,634,171.43 | |
| (2) Exchange rate changes | 2,344,616.13 | 1,162,653.45 | 2,737.12 | 126,011.07 | 3,636,017.78 |
| 4. Ending balance | 750,938,947.27 | 636,608,064.58 | 2,250,036.45 | 166,964,413.94 | 1,556,761,462.23 |
| II. Accumulated depreciation | |||||
| 1. Beginning balance | 100,672,188.32 | 169,824,966.14 | 1,905,112.82 | 74,270,866.34 | 346,673,133.62 |
| 2. Increase in current period | 9,126,574.35 | 37,214,947.48 | 153,600.48 | 4,568,445.96 | 51,063,568.27 |
| (1) Provision | 9,126,574.35 | 36,075,666.33 | 153,600.48 | 4,568,445.96 | 49,924,287.12 |
| (2) Increment from enterprises merged | 1,139,281.15 | 1,139,281.15 | |||
| 3. Decrease in current period | 216,523.50 | 4,260,491.91 | 52,496.32 | 1,070,179.98 | 5,599,691.72 |
| (1) Disposal or scrap | 4,152,121.49 | 51,045.29 | 1,000,489.84 | 5,203,656.62 | |
| (2) Exchange rate changes | 216,523.50 | 108,370.42 | 1,451.03 | 69,690.14 | 396,035.10 |
| 4. Ending balance | 109,582,239.17 | 202,779,421.71 | 2,006,216.98 | 77,769,132.32 | 392,137,010.17 |
| III. Provision for impairment | |||||
| 1. Beginning balance | |||||
| 2. Increase in current period | |||||
| (1) Provision | |||||
| 3. Decrease in current period | |||||
| (1) Disposal or scrap | |||||
| 4. Ending balance | |||||
| IV. Book value | |||||
| 1. Ending book value | 641,356,708.10 | 433,828,642.87 | 243,819.47 | 89,195,281.62 | 1,164,624,452.06 |
| 2. Beginning book value | 652,322,271.05 | 357,955,916.10 | 460,834.03 | 86,136,619.76 | 1,096,875,640.94 |
(2) Temporary idle fixed assets
□ applicable √ not applicable
(3) Fixed assets leased out through operating lease
□ applicable √ not applicable
(4) Fixed assets without certificate of title
Unit: Yuan
| Items | Book value | Reasons for failure to complete certificate of title |
| Chongqing Yiyuan | 85,379,333.91 | It is being carried out |
| India Plant | 83,550,035.39 | It is being carried out |
(5) Disposal of fixed assets
Unit: Yuan
| Items | Ending balance | Beginning balance |
| Disposal of fixed assets | 385,721.54 | |
| Total | 385,721.54 |
22. Construction in progress
Unit: Yuan
| Items | Ending balance | Beginning balance |
| Construction in progress | 386,601,265.30 | 292,474,798.41 |
| Total | 386,601,265.30 | 292,474,798.41 |
(1) Situation of construction in progress
Unit: Yuan
| Items | Ending balance | Beginning balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Phase I of Topband Huizhou No. 2 Industrial Park | 1,459,431.59 | 1,459,431.59 | ||||
| Chongqing Yiyuan | 1,950,206.53 | 1,950,206.53 | 1,950,161.78 | 1,950,161.78 | ||
| Huizhou Plant Phase II | 12,069,381.93 | 12,069,381.93 | 19,675,613.36 | 19,675,613.36 | ||
| India Plant | 15,680,714.79 | 15,680,714.79 | 12,113,644.14 | 12,113,644.14 | ||
| Ningbo East China Operation Center | 257,123,749.91 | 257,123,749.91 | 208,173,673.86 | 208,173,673.86 | ||
| Plant in Dong Nai, Vietnam | 60,769,246.59 | 60,769,246.59 | 14,686,143.94 | 14,686,143.94 | ||
| Equipment to be commissioned | 32,562,368.39 | 32,562,368.39 | 34,312,847.55 | 34,312,847.55 | ||
| Other sporadic works | 4,986,165.57 | 4,986,165.57 | 1,562,713.78 | 1,562,713.78 | ||
| Total | 386,601,265.30 | 386,601,265.30 | 292,474,798.41 | 292,474,798.41 | ||
(2) Changes of major projects under construction in the current period
Unit: Yuan
| Project name | Amount budgeted | Beginning balance | Increase in current period | Amount of fixed assets transferred in current period | Other decreases in current period | Ending balance | Proportion of cumulative investment in the project to budget | Project progress | Cumulated amount of interest capitalized | Including: capitalization amount of interest in current period | Capitalization rate of interest in current period | Source of capitals |
| Phase I of Topband Huizhou No. 2 Industrial Park | 650,000,000.00 | 1,459,431.59 | 1,459,431.59 | 0.22% | 0.20% | Fund raising | ||||||
| Chongqing Yiyuan | 200,000,000.00 | 1,950,161.78 | 44.75 | 1,950,206.53 | 96.49% | 96.00% | Fund raising | |||||
| Huizhou Plant Phase II | 290,000,000.00 | 19,675,613.36 | 3,347,018.58 | 31,597.63 | 10,921,652.38 | 12,069,381.93 | 99.18% | 99.00% | Fund raising | |||
| India Plant | 136,004,000.00 | 12,113,644.14 | 3,567,070.66 | 15,680,714.79 | 84.66% | 84.00% | Others | |||||
| Ningbo East China Operation Center | 465,704,300.00 | 208,173,673.86 | 48,950,076.05 | 257,123,749.91 | 55.21% | 55% | Funds raised through convertible bonds | |||||
| Plant in Dong Nai, Vietnam | 140,000,000.00 | 14,686,143.94 | 46,083,102.65 | 60,769,246.59 | 32.92% | 32% | Others | |||||
| Total | 1,881,708,300.00 | 256,599,237.08 | 103,406,744.28 | 31,597.63 | 10,921,652.38 | 349,052,731.34 | -- | -- | -- |
(3) Provision for impairment of project under construction in current period
□ applicable √ not applicable
(4) Engineering materials
□ applicable √ not applicable
23. Productive biological assets
(1) Productive biological assets with cost measurement model
□ applicable √ not applicable
(2) Productive biological assets with fair value measurement model
□ applicable √ not applicable
24. Oil and gas assets
□ applicable √ not applicable
25. Use right assets
Unit: Yuan
| Items | Houses and buildings | Total |
| I. Original book value | ||
| 1. Beginning balance | 30,939,385.41 | 30,939,385.41 |
| 2. Increase in current period | 49,184,898.48 | 49,184,898.48 |
| 3. Decrease in current period | 4,935,343.72 | 4,935,343.72 |
| (1) Disposal | 4,935,343.72 | 4,935,343.72 |
| 4. Ending balance | 75,188,940.17 | 75,188,940.17 |
| II. Accumulated depreciation and accumulated amortization | ||
| 1. Beginning balance | ||
| 2. Increase in current period | 6,241,851.65 | 6,241,851.65 |
| (1) Provision | 6,241,851.65 | 6,241,851.65 |
| 3. Decrease in current period | 451,215.39 | 451,215.39 |
| (1) Disposal | 451,215.39 | 451,215.39 |
| 4. Ending balance | 5,790,636.26 | 5,790,636.26 |
| III. Book value | ||
| 1. Ending book value | 69,398,303.91 | 69,398,303.91 |
| 2. Beginning book value | 30,939,385.41 | 30,939,385.41 |
26. Intangible assets
(1) Situation of intangible assets
Unit: Yuan
| Items | Land usage right | Patent right | Non-patented technology | Software | Trademark | Total |
| I. Original book value | ||||||
| 1. Beginning balance | 124,135,401.04 | 435,321.58 | 329,300,501.38 | 22,316,899.23 | 9,728,450.00 | 485,916,573.23 |
| 2. Increase in current period | 44,136,315.00 | 43,814,900.08 | 911,508.13 | 88,862,723.21 | ||
| (1) Acquisition | 44,136,315.00 | 911,508.13 | 45,047,823.13 | |||
| (2) Internal R&D | 43,814,900.08 | 43,814,900.08 | ||||
| (3) Increase in business merger | ||||||
| 3. Decrease in current period | 531,982.64 | 531,982.64 | ||||
| (1) Disposal | ||||||
| (2) Exchange rate changes | 531,982.64 | 531,982.64 | ||||
| 4. Ending balance | 167,739,733.40 | 435,321.58 | 373,115,401.46 | 23,228,407.36 | 9,728,450.00 | 574,247,313.80 |
| II. Accumulated amortization | ||||||
| 1. Beginning balance | 11,381,245.39 | 435,321.58 | 142,607,782.33 | 17,038,370.79 | 4,659,312.50 | 176,122,032.59 |
| 2. Increase in current period | 1,519,038.10 | 27,587,393.90 | 1,480,426.99 | 482,775.00 | 31,069,633.99 | |
| (1) Provision | 1,519,038.10 | 27,587,393.90 | 1,480,426.99 | 482,775.00 | 31,069,633.99 | |
| 3. Decrease in current period | 158,886.94 | 158,886.94 | ||||
| (1) Disposal | ||||||
| (2) Exchange rate changes | 158,886.94 | 158,886.94 | ||||
| 4. Ending balance | 12,741,396.55 | 435,321.58 | 170,195,176.23 | 18,518,797.78 | 5,142,087.50 | 207,032,779.64 |
| III. Provision for impairment | ||||||
| 1. Beginning balance | ||||||
| 2. Increase in current period | ||||||
| (1) Provision | ||||||
| 3. Decrease in current period | ||||||
| (1) Disposal | ||||||
| 4. Ending balance | ||||||
| IV. Book value | ||||||
| 1. Ending book value | 154,998,336.85 | 202,920,225.23 | 4,709,609.58 | 4,586,362.50 | 367,214,534.16 | |
| 2. Beginning book value | 112,754,155.65 | 186,692,719.05 | 5,278,528.44 | 5,069,137.50 | 309,794,540.64 |
The proportion of intangible assets formed through internal R&D in the balance of intangible assets at the end ofthe period accounted for 7.63%.
(2) Situation of Land usage right without property certificate of title
□ applicable √ not applicable
27. Development expenditure
Unit: Yuan
| Items | Beginning balance | Increase in current period | Decrease in current period | Ending balance | ||||
| Internal development expenditure | Others | Recognized as intangible assets | Transferred to current profit and loss | |||||
| Intelligent controller project | 45,281,204.14 | 38,785,462.54 | 26,808,817.81 | 57,257,848.87 | ||||
| Lithium battery project | 3,803,053.77 | 5,653,726.73 | 4,405,703.64 | 5,051,076.86 | ||||
| Motor and control system project | 5,656,596.57 | 6,841,040.78 | 2,918,579.55 | 9,579,057.80 | ||||
| Other projects | 13,777,521.31 | 7,580,356.47 | 9,681,799.08 | 11,676,078.70 | ||||
| Total | 68,518,375.79 | 58,860,586.52 | 43,814,900.08 | 83,564,062.23 | ||||
28. Goodwill
(1) Original book value of goodwill
Unit: Yuan
| Name of investee or matters forming goodwill | Beginning balance | Increase in current period | Decrease in current period | Ending balance | ||
| Resulted from business merger | Disposal | |||||
| Shenzhen YAKO Automation Technology Co., Ltd. | 107,314,446.71 | 107,314,446.71 | ||||
| Shenzhen Allied Control System Co., Ltd. | 53,768,699.68 | 53,768,699.68 | ||||
| Shenzhen Meanstone Intelligent Technology Co., Ltd. | 3,006,892.59 | 3,006,892.59 | ||||
| Hangzhou Zhidong Motor Technology Co., Ltd. | 1,322,921.77 | 1,322,921.77 | ||||
| Taixing Ninghui Lithium Battery Co., Ltd. | 1,755,000.88 | 1,755,000.88 | ||||
| Shenzhen Tengyi Industrial Co., Ltd. | 192,000.00 | 192,000.00 | ||||
| Total | 165,412,960.75 | 1,947,000.88 | 167,359,961.63 |
(2) Provision for impairment of goodwill
Unit: Yuan
| Name of investee or matters forming goodwill | Beginning balance | Increase in current period | Decrease in current period | Ending balance | ||
| Provision | Disposal | |||||
| Shenzhen Allied Control System Co., Ltd. | 53,768,699.68 | 53,768,699.68 | ||||
| Shenzhen Meanstone Intelligent Technology Co., Ltd. | 3,006,892.59 | 3,006,892.59 | ||||
| Total | 56,775,592.27 | 56,775,592.27 | ||||
Information about the asset group or portfolio of goodwillDescription of goodwill impairment test process, key parameters (e.g. growth rate during the forecast period,growth rate during the stabilization period, profitability, discount rate, forecast period, etc. when the present valueof future cash flow is expected) and method for recognizing impairment loss of goodwill:
Impact of goodwill impairment test
29. Long-term deferred expense
Unit: Yuan
| Items | Beginning balance | Increase in current period | Current amortization amount | Other reduced amount | Ending balance |
| Decoration cost | 71,797,383.61 | 22,728,212.12 | 11,905,866.86 | 122,393.48 | 82,497,335.39 |
| Others | 280,287.48 | 337,787.20 | 90,336.28 | 527,738.40 | |
| Total | 72,077,671.09 | 23,065,999.32 | 11,996,203.14 | 122,393.48 | 83,025,073.79 |
30. Deferred income tax assets / deferred income tax liabilities
(1) Deferred income tax assets without offset
Unit: Yuan
| Items | Ending balance | Beginning balance | ||
| Deductible temporary differences | Deferred income tax assets | Deductible temporary differences | Deferred income tax assets | |
| Provision for asset impairment | 190,396,981.24 | 29,564,214.81 | 149,075,252.50 | 23,312,424.21 |
| Deductible loss | 53,662,926.67 | 11,290,513.09 | 43,740,568.84 | 10,286,420.54 |
| Amortization differences on intangible assets | 46,555,870.17 | 6,991,661.87 | 36,167,726.46 | 5,441,721.65 |
| Deferred income | 15,694,300.00 | 2,354,145.00 | 14,279,770.00 | 2,141,965.50 |
| Option fee | 178,837,560.94 | 26,825,634.14 | 93,402,952.30 | 14,010,442.85 |
| Total | 485,147,639.02 | 77,026,168.91 | 336,666,270.10 | 55,192,974.75 |
(2) Deferred income tax liabilities without offset
Unit: Yuan
| Items | Ending balance | Beginning balance | ||
| Taxable temporary difference | Deferred income tax liabilities | Taxable temporary difference | Deferred income tax liabilities | |
| Valuation and appreciation of assets of business merger under different control | 3,934,809.78 | 590,221.47 | 5,279,699.53 | 791,954.93 |
| Changes in fair value of trading financial assets | 160,387,159.68 | 24,058,073.95 | 62,074,391.17 | 9,311,158.68 |
| Book-tax difference in rental income | 4,141,899.22 | 1,035,474.81 | 3,411,531.24 | 852,882.81 |
| Others | 3,694,680.02 | 836,370.20 | 3,830,509.95 | 863,864.88 |
| Total | 172,158,548.70 | 26,520,140.43 | 74,596,131.89 | 11,819,861.30 |
(3) Deferred income tax assets or liabilities listed by net amount after offset
Unit: Yuan
| Items | Amount of offset between deferred income tax assets and liabilities at the end of the period | Ending balance of deferred income tax assets or liabilities after offset | Amount of mutual offset between deferred income tax assets and liabilities at the beginning of the | Beginning balance of deferred income tax assets or liabilities after offset |
| period | ||||
| Deferred income tax assets | 77,026,168.91 | 55,192,974.75 | ||
| Deferred income tax liabilities | 26,520,140.43 | 11,819,861.30 |
(4) Details of unrecognized deferred income tax assets
Unit: Yuan
| Items | Ending balance | Beginning balance |
| Deductible loss | 17,378,644.86 | 14,481,679.98 |
| Provision for asset impairment | 6,466,269.06 | 3,393,804.05 |
| Total | 23,844,913.92 | 17,875,484.03 |
(5) Deductible loss of unrecognized deferred income tax assets will mature in the following years
Unit: Yuan
| Year | Ending amount | Beginning amount | Remarks |
| 2021 | |||
| 2022 | |||
| 2023 | |||
| 2024 | |||
| 2025 | |||
| No time limit | 17,378,644.86 | 14,481,679.98 | |
| Total | 17,378,644.86 | 14,481,679.98 | -- |
31. Other non-current assets
Unit: Yuan
| Items | Ending balance | Beginning balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Prepaid long-term assets | 107,814,528.35 | 0.00 | 107,814,528.35 | 34,639,355.39 | 0.00 | 34,639,355.39 |
| Total | 107,814,528.35 | 0.00 | 107,814,528.35 | 34,639,355.39 | 0.00 | 34,639,355.39 |
32. Short-term loans
(1) Classification of short-term loans
Unit: Yuan
| Items | Ending balance | Beginning balance |
| Credit loan | 135,890,741.95 | 402,151,500.00 |
| Total | 135,890,741.95 | 402,151,500.00 |
(2) Overdue short-term loans
□ applicable √ not applicable
33. Trading financial liabilities
□ applicable √ not applicable
34. Derivative financial liabilities
□ applicable √ not applicable
35. Notes payable
Unit: Yuan
| Category | Ending balance | Beginning balance |
| Bank acceptance bill | 1,009,181,787.24 | 715,574,653.91 |
| Total | 1,009,181,787.24 | 715,574,653.91 |
The total amount of notes payable due but unpaid at the end of the period was 0.00 yuan.
36. Accounts payable
(1) Accounts payable listed
Unit: Yuan
| Items | Ending balance | Beginning balance |
| Within 1 year | 1,878,591,862.69 | 1,540,652,638.39 |
| 1~2 years | 1,487,227.83 | 7,398,205.08 |
| 2~3 years | 819,094.56 | 484,275.57 |
| More than 3 years | 1,653,373.80 | 1,371,220.68 |
| Total | 1,882,551,558.88 | 1,549,906,339.72 |
(2) Significant accounts payable aged over 1 year
□ applicable √ not applicable
37. Advances received
(1) Advances received listed
Unit: Yuan
| Items | Ending balance | Beginning balance |
| Within 1 year | 294,460.10 | 487,267.17 |
| Total | 294,460.10 | 487,267.17 |
(2) Significant advances received aged over 1 year
□ applicable √ not applicable
38. Contractual liabilities
Unit: Yuan
| Items | Ending balance | Beginning balance |
| Advances on sales | 78,883,302.66 | 72,576,117.56 |
| Total | 78,883,302.66 | 72,576,117.56 |
39. Employee compensation payable
(1) Employee compensation payable listed
Unit: Yuan
| Items | Beginning balance | Increase in current period | Decrease in current period | Ending balance |
| I. Short-term compensation | 174,617,927.43 | 652,973,804.59 | 742,084,760.65 | 85,506,971.37 |
| II. Post-employment benefits - defined contribution plan | 885,836.69 | 25,664,714.99 | 26,455,069.90 | 95,481.78 |
| Total | 175,503,764.12 | 678,638,519.58 | 768,539,830.55 | 85,602,453.15 |
(2) Short-term compensation listed
Unit: Yuan
| Items | Beginning balance | Increase in current period | Decrease in current period | Ending balance |
| 1. Wages, bonuses, allowances and subsidies | 173,067,023.16 | 622,428,438.27 | 711,793,372.41 | 83,702,089.02 |
| 2. Employee benefits | 261,063.79 | 12,419,233.42 | 12,610,509.35 | 69,787.86 |
| 3. Social insurance expense | 231,998.20 | 8,896,524.21 | 9,073,809.42 | 54,712.99 |
| Including: medical insurance expense | 210,694.44 | 7,731,783.58 | 7,890,172.26 | 52,305.76 |
| Industrial injury insurance expense | 13,785.25 | 282,946.36 | 294,882.39 | 1,849.22 |
| Maternity insurance expense | 7,518.51 | 881,794.27 | 888,754.77 | 558.01 |
| 4. Housing provident fund | 8,372,320.38 | 8,372,320.38 | ||
| 5. Trade union funds and staff education funds | 209.26 | 1,046.30 | 1,046.30 | 209.26 |
| 6. Others | 1,057,633.02 | 856,242.01 | 233,702.79 | 1,680,172.24 |
| Total | 174,617,927.43 | 652,973,804.59 | 742,084,760.65 | 85,506,971.37 |
(3) Defined contribution plan listed
Unit: Yuan
| Items | Beginning balance | Increase in current period | Decrease in current period | Ending balance |
| 1. Basic endowment insurance | 861,046.07 | 25,176,354.69 | 25,944,580.27 | 92,820.49 |
| 2. Unemployment insurance expense | 24,790.62 | 488,360.30 | 510,489.63 | 2,661.29 |
| Total | 885,836.69 | 25,664,714.99 | 26,455,069.90 | 95,481.78 |
40. Taxes payable
Unit: Yuan
| Items | Ending balance | Beginning balance |
| VAT (value-added tax) | 1,979,565.50 | 12,524,919.27 |
| Corporate income tax | 13,520,055.78 | 41,728,458.33 |
| Individual income tax | 15,788,083.28 | 5,003,297.27 |
| City maintenance and construction tax | 180,014.22 | 188,254.81 |
| Education surcharge | 128,581.61 | 134,467.71 |
| Property tax | 2,502,358.84 | 429,548.57 |
| Other taxes | 240,867.64 | 247,069.64 |
| Total | 34,339,526.87 | 60,256,015.60 |
41. Other payables
Unit: Yuan
| Items | Ending balance | Beginning balance |
| Other payables | 69,253,389.96 | 57,160,615.93 |
| Total | 69,253,389.96 | 57,160,615.93 |
(1) Interest payable
□ applicable √ not applicable
(2) Dividends payable
□ applicable √ not applicable
(3) Other payables
1) Other payables listed by nature
Unit: Yuan
| Items | Ending balance | Beginning balance |
| Payment for equipment | 33,310,693.24 | 23,095,663.10 |
| Payment for tooling | 804,693.97 | 654,303.42 |
| Transportation expenses | 8,252,605.28 | 7,252,963.43 |
| Rent and utilities | 4,866,958.37 | 3,105,044.79 |
| Margin, deposit | 6,528,933.22 | 7,034,660.06 |
| Wages for labor dispatching | 878,445.97 | 2,150,932.92 |
| Consultation fee | 691,808.49 | 1,515,229.67 |
| Fuel card fee | 1,503,438.82 |
| Payment of decoration | 413,135.84 | 6,055,915.48 |
| Others | 2,916,749.58 | 4,792,464.24 |
| Housing subsidy for talents | 1,259,366.00 | |
| Equity acquisition amount payable | 9,330,000.00 | |
| Total | 69,253,389.96 | 57,160,615.93 |
2) Other significant payables aged over 1 year
□ applicable √ not applicable
42. Liabilities held for sale
□ applicable √ not applicable
43. Non-current liabilities due within one year
√ applicable □ not applicable
| Items | Ending balance | Beginning balance |
| Long-term loans due within one year | 21,740,000.00 | |
| Bonds payable due within one year | ||
| Long-term accounts payable due within 1 year | ||
| Lease liabilities due within 1 year | 17,151,387.34 | |
| Total | 38,891,387.34 |
44. Other current liabilities
□ applicable √ not applicable
45. Long-term loans
(1) Classification of long-term loans
Unit: Yuan
| Items | Ending balance | Beginning balance |
| Mortgage loan | 169,564,000.00 | 200,000,000.00 |
| Total | 169,564,000.00 | 200,000,000.00 |
46. Bonds payable
□ applicable √ not applicable
47. Lease liabilities
Unit: Yuan
| Items | Ending balance | Beginning balance |
| Lease liabilities | 54,349,922.77 | 30,939,385.41 |
| Total | 54,349,922.77 | 30,939,385.41 |
48. Long-term accounts payable
□ applicable √ not applicable
49. Long-term employee compensation payable
□ applicable √ not applicable
50. Estimated liabilities
□ applicable √ not applicable
51. Deferred income
Unit: Yuan
| Items | Beginning balance | Increase in current period | Decrease in current period | Ending balance | Reasons for formation |
| Governmental subsidies | 14,624,770.00 | 3,120,700.00 | 1,761,170.00 | 15,984,300.00 | Governmental subsidies related to assets |
| Total | 14,624,770.00 | 3,120,700.00 | 1,761,170.00 | 15,984,300.00 | -- |
Items involving government subsidies:
Unit: Yuan
| Liability items | Beginning balance | New subsidy amount in current period | Amount included in non-operating income in current period | Amount included in other income in current period | Amount of write-down costs in current period | Other changes | Ending balance | Asset-related/revenue-related |
| Special fund for the industrialization of high-efficiency energy-saving rare-earth permanent magnet motor | 1,300,000.00 | 97,500.00 | 1,202,500.00 | Asset-related | ||||
| R&D equipment project of intelligent home management system such as IoT cloud computing technology | 394,500.00 | 131,500.00 | 263,000.00 | Asset-related | ||||
| R&D project of key technology for clean energy DC system measurement | 225,000.00 | 25,000.00 | 200,000.00 | Asset-related | ||||
| Nano lithium iron phosphate power battery project | 750,000.00 | 125,000.00 | 625,000.00 | Asset-related | ||||
| Key technology research and development of 18650-2.8A.h high power battery | 561,000.00 | 102,000.00 | 459,000.00 | Asset-related | ||||
| Intelligent grid connected project of distributed photovoltaic power station | 120,000.00 | 30,000.00 | 90,000.00 | Asset-related | ||||
| R&D project of 60A solar charging controller with peak power tracking technology | 530,000.00 | 60,000.00 | 470,000.00 | Asset-related | ||||
| R&D project of unmanned Robot Cleaner | 3,000,000.00 | 150,000.00 | 2,850,000.00 | Asset-related | ||||
| Key technology research and development project of rare-earth permanent magnet brushless DC motor and controller with high speed ratio and variable frequency | 4,000,000.00 | 4,000,000.00 | Asset-related | |||||
| Technological transformation supported by 2020 anti-epidemic national debt funds | 3,744,270.00 | 1,040,170.00 | 2,704,100.00 | Asset-related | ||||
| Special project for technical transformation of intelligent controllers and lithium batteries in 2021 | 3,120,700.00 | 3,120,700.00 | Asset-related | |||||
| Total | 14,624,770.00 | 3,120,700.00 | 1,761,170.00 | 15,984,300.00 |
52. Other non-current liabilities
□ applicable √ not applicable
53. Share capital
Unit: Yuan
| Beginning balance | Changes in the period (+, -) | Ending balance | |||||
| Issuance of new shares | Stock dividend | Conversion of accumulation fund into shares | Others | Subtotal | |||
| Total number of shares | 1,135,216,809.00 | 103,037,863.00 | 0.00 | 103,037,863.00 | 1,238,254,672.00 | ||
Other description:
Note: (1) The 6th Meeting of the 7th Board of Directors deliberated and approved the Proposal on the SecondExercise Period of 2018 Stock Option Incentive Plan Meeting the Exercise Conditions and Exercisable Rights andthe Proposal on Adjustment of the Incentive Objects and the Number of Stock Options of 2018 Stock OptionIncentive Plan: there are 567 incentive objects in the second exercise period of the 2018 stock option incentiveplan in the Company, in total of 10,950,600 shares of stock options, that meet the exercise conditions and can beexercised. The Company plans to adopt the independent exercise mode. As the incentive objects Cheng Xuejingand Lin Qiao resigned and left the Company for personal reasons, 80,500 stock options granted but not exercisedshall not be exercised and shall be uniformly canceled by the Company. The procedures such as the review of theadjustment of the number of such options will be performed later. As of June 30, 2021, a total of 10.9326 millionstock options were exercised by 565 incentive objects in the second exercise period, increasing the Company'sshare capital by 10.9326 million yuan. After the exercise of the stock options, the share capital increased to1,146,149,409.00 yuan.
(2) According to the resolution of the 2019 Annual General Meeting of Shareholders held by the Company in2020 and based on the approval in the CSRC's document numbered ZJXK [2020] No. 1865, the Companyprivately issued not more than 309,243,655 new shares. On May 20, 2021, the Company privately issued92,105,263 ordinary shares (A shares) in RMB to specific investors at the price of 11.40 yuan per share. After theissuance, the registered capital of the Company was increased to 1,238,254,672.00 yuan.
54. Other equity instruments
□ applicable √ not applicable
55. Capital reserve
Unit: Yuan
| Items | Beginning balance | Increase in current period | Decrease in current period | Ending balance |
| Capital premium (share premium) | 923,946,067.35 | 995,999,836.77 | 167,046.15 | 1,919,778,857.97 |
| Other capital reserve | 32,787,972.40 | 16,989,701.54 | 9,470,150.51 | 40,307,523.43 |
| Total | 956,734,039.75 | 1,012,989,538.31 | 9,637,196.66 | 1,960,086,381.40 |
Other description, including the changes in increase and decrease in current period and the reasons for changes:
Note 1: The increase in share premium for the year was 995,999,836.77 yuan, of which: 944,741,805.72 yuan wasincreased due to the non-public offering of shares, 9,183,384 yuan of option expenses previously included in othercapital surplus was transferred to share premium due to the unlocking of options, and 38,154,774 yuan of theexcess of issuance proceeds received from the unlocking of options was included over the balance of other capitalsurplus previously accrued. The deferred income tax of 3,919,873.05 yuan corresponding to the excess of pre-taxdeductible expenses of the exercised options in the current year was included in the share premium. The decreasein share premium of 167,046.15 yuan for the year was mainly due to the write-down of capital surplus sharepremium of 167,046.15 yuan as a result of the dilution of minority shareholders' interests by MeanstoneIntelligent's capital increase.Note 2: Other capital reserves increased by 16,989,701.54 yuan this year, including 3,237,317.25 yuan ofshare-based payment expenses confirmed according to the stock option plan in this period; the deferred incometax assets of 13,752,384.29 yuan were recognized according to the pretax deductible stock option expensesexpected to be exercised in the future; other capital reserves decreased by 9,470,150.51 yuan this year, includingdecreasing other capital reserves by 9,183,384.00 yuan due to the transfer of the stock option exercise into thecapital premium; and decreasing other capital reserves by 286,766.51 yuan due to the offset of share-basedpayment expenses arising from the departure of incentive objects.
56. Treasury shares
Unit: Yuan
| Items | Beginning balance | Increase in current period | Decrease in current period | Ending balance |
| Obligation to repurchase the Company's shares due to equity incentive | 80,017,965.68 | 80,017,965.68 | ||
| Total | 80,017,965.68 | 80,017,965.68 |
57. Other comprehensive income
Unit: Yuan
| Items | Beginning balance | Amount incurred in current period | Ending balance | |||||
| Amount before income tax in current period | Less: current profits and losses included in other comprehensive income in the previous period | Less: current retained earnings included in other comprehensive income in the previous period | Less: income tax expense | Attributable to parent company after tax | Attributable to minority shareholders after tax | |||
| II. Other comprehensive income that is reclassified into profits and losses | -24,555,229.97 | -17,975,075.23 | 32,945.74 | -18,008,020.97 | -42,563,250.94 | |||
| Translation difference of foreign currency financial statements | -30,124,805.01 | -17,755,436.98 | -17,755,436.98 | -47,880,241.99 | ||||
| Others | 5,569,575.04 | -219,638.25 | 32,945.74 | -252,583.99 | 5,316,991.05 | |||
| Total amount of other comprehensive income | -24,555,229.97 | -17,975,075.23 | 32,945.74 | -18,008,020.97 | -42,563,250.94 | |||
58. Special reserve
□ applicable √ not applicable
59. Surplus reserve
Unit: Yuan
| Items | Beginning balance | Increase in current period | Decrease in current period | Ending balance |
| Statutory surplus reserve | 151,359,957.53 | 151,359,957.53 | ||
| Total | 151,359,957.53 | 151,359,957.53 |
60. Undistributed profit
Unit: Yuan
| Items | Current period | Prior period |
| Undistributed profit at the end of last period before adjustment | 1,324,944,369.91 | 866,301,932.11 |
| Undistributed profit at the beginning of last period after adjustment | 1,324,944,369.91 | 866,301,932.11 |
| Plus: net profit attributable to the owners of the parent company in current period | 428,185,704.03 | 533,516,814.04 |
| Less: withdrawal of statutory surplus reserve | 24,075,745.79 | |
| Common Stock dividends payable | 56,565,524.45 | 50,798,630.45 |
| Undistributed profit at the end of the period | 1,696,564,549.49 | 1,324,944,369.91 |
Details of undistributed profit at the beginning of adjustment period:
1. Due to retroactive adjustment under the Accounting Standards for Business Enterprises and other relevant new regulations, theundistributed profit at the beginning of the period is affected by RMB 0.
2. Due to changes in accounting policies, the undistributed profit at the beginning of the period is affected by RMB 0.
3. Due to correction of significant accounting errors, the undistributed profit at the beginning of the period is affected by RMB 0.
4. Due to changes in enterprise merging scope under the same control, the undistributed profit at the beginning of the period isaffected by RMB 0.
5. The total amount of other adjustments affects the undistributed profit at the beginning of the period by RMB 0.
61. Operating income and operating costs
Unit: Yuan
| Items | Amount incurred in current period | Amount incurred in prior period | ||
| Income | Cost | Income | Cost | |
| Main business | 3,613,778,665.34 | 2,751,947,592.34 | 1,977,022,442.54 | 1,517,922,534.93 |
| Other business | 30,266,947.06 | 13,348,149.05 | 20,405,458.16 | 8,175,723.61 |
| Total | 3,644,045,612.40 | 2,765,295,741.39 | 1,997,427,900.70 | 1,526,098,258.54 |
Information related to performance obligations:
For the sales of goods to customers, the Company recognizes the income when the control of the goods is
transferred, that is, when the goods are transported to the designated place of the other party, or delivered to thecarrier designated by the other party, or when they are delivered to the other party and their acceptance iscompleted. As the delivery of the goods to the customer represents the right to receive the contract considerationunconditionally, and the maturity of the payment only depends on the passage of time, the Company recognizes anamount receivable when the goods are delivered to the customer. When the customer pays the purchase price inadvance, the Company recognizes the transaction amount received as a contract liability until the goods aredelivered to the customer.The amount of income corresponding to the performance obligations that have signed contracts but have not beenperformed or completed at the end of this reporting period is 2.406 billion yuan, and the income of the aboveamount is expected to be recognized within one year.
62. Taxes and surcharges
Unit: Yuan
| Items | Amount incurred in current period | Amount incurred in prior period |
| City maintenance and construction tax | 4,966,766.89 | 3,841,048.56 |
| Education surcharge | 3,547,687.35 | 2,748,128.95 |
| Property tax | 3,185,254.25 | 2,937,455.95 |
| Land use tax | 267,163.92 | 267,163.93 |
| Stamp duty | 1,278,559.97 | 867,480.37 |
| Others | 32,811.86 | 6,921.92 |
| Total | 13,278,244.24 | 10,668,199.68 |
63. Sales expenses
Unit: Yuan
| Items | Amount incurred in current period | Amount incurred in prior period |
| Employee compensation | 41,877,611.55 | 28,005,041.33 |
| Transportation expenses | 1,403,606.36 | 11,865,194.00 |
| Business entertainment expenses | 8,822,018.86 | 4,011,636.41 |
| Travel expenses | 4,242,288.17 | 2,505,381.06 |
| Intermediary service expenses | 4,907,544.95 | 6,810,355.87 |
| Exhibition expenses | 1,032,138.04 | 585,300.88 |
| Materials expenses | 5,050,324.90 | 1,593,730.27 |
| Mail expenses | 1,170,285.37 | 970,486.35 |
| Advertising expenses | 916,778.99 | 109,433.35 |
| Option fee | 320,885.87 | 573,816.62 |
| Others | 7,146,401.53 | 2,892,048.68 |
| Total | 76,889,884.59 | 59,922,424.82 |
64. Administrative expenses
Unit: Yuan
| Items | Amount incurred in current period | Amount incurred in prior period |
| Employee compensation | 59,721,623.90 | 38,687,179.37 |
| Decoration cost | 6,465,540.78 | 4,737,307.62 |
| Intermediary service expenses | 4,322,142.87 | 4,057,017.80 |
| Depreciation expense | 6,619,979.60 | 3,704,993.16 |
| Amortization of intangible assets | 2,677,290.87 | 2,341,492.81 |
| Rent and utilities | 3,404,885.34 | 1,051,974.50 |
| Property insurance expenses | 758,226.43 | 842,406.49 |
| Office expenses | 1,246,496.01 | 1,145,389.13 |
| Option fee | 571,018.75 | 1,117,093.98 |
| Travel expenses | 802,360.66 | 341,909.63 |
| Recruitment expenses | 906,502.78 | 1,187,624.20 |
| Others | 7,346,751.70 | 7,112,383.25 |
| Total | 94,842,819.69 | 66,326,771.94 |
65. R&D expenses
Unit: Yuan
| Items | Amount incurred in current period | Amount incurred in prior period |
| Employee compensation | 107,357,106.03 | 85,346,278.12 |
| Amortization of intangible assets | 27,849,377.95 | 21,036,485.82 |
| Material expenses | 11,634,261.27 | 6,816,162.14 |
| Depreciation expense | 4,465,093.77 | 2,763,557.13 |
| Option fee | 1,590,663.41 | 2,206,846.64 |
| Tooling expense | 6,365,344.99 | 3,080,200.51 |
| Travel expenses | 1,805,639.42 | 1,255,044.78 |
| Intermediary service expenses | 1,867,115.15 | 677,432.91 |
| Utilities | 1,636,703.79 | 1,011,072.65 |
| Rentals | 922,869.58 | 810,251.65 |
| Others | 9,273,550.95 | 8,749,409.16 |
| Total | 174,767,726.31 | 133,752,741.51 |
66. Financial expenses
Unit: Yuan
| Items | Amount incurred in current period | Amount incurred in prior period |
| Interest expense | 6,676,232.42 | 27,903,509.75 |
| Less: interest income | 4,397,537.66 | 4,449,371.38 |
| Profit or loss on exchange | 23,768,783.43 | -8,918,245.74 |
| Others | 27,713,678.97 | 14,417,216.74 |
| Total | 53,761,157.16 | 28,953,109.37 |
67. Other revenues
Unit: Yuan
| Source for other revenues | Amount incurred in current period | Amount incurred in prior period |
| Governmental subsidies | 6,479,445.63 | 15,939,969.80 |
| Added-value tax refund on demand | 4,443,028.35 | 2,805,391.14 |
| Return of individual income tax service charge | 1,083,707.40 | 759,307.14 |
| Total | 12,006,181.38 | 19,504,668.08 |
68. Investment revenue
Unit: Yuan
| Items | Amount incurred in current period | Amount incurred in prior period |
| Long-term equity investment revenue accounted by equity method | -1,390,590.78 | -144,574.55 |
| Investment revenue from disposal of trading financial assets | 24,066,351.32 | 74,522,738.91 |
| Investment revenue of financial products | 1,200,855.83 | 3,116,324.00 |
| Total | 23,876,616.37 | 77,494,488.36 |
69. Net exposure hedging revenue
□ applicable √ not applicable
70. Fair value change revenue
Unit: Yuan
| Sources of income from change in fair value | Amount incurred in current period | Amount incurred in prior period |
| Trading financial assets | 98,312,768.52 | 10,951,270.47 |
| Trading financial liabilities | -7,240,100.01 | |
| Total | 98,312,768.52 | 3,711,170.46 |
71. Credit impairment loss
Unit: Yuan
| Items | Amount incurred in current period | Amount incurred in prior period |
| Bad debt loss of other receivables | -1,036,235.40 | 1,953,668.63 |
| Bad debt loss of accounts receivable | -14,198,551.72 | 1,034,327.66 |
| Bad debt loss of commercial acceptance bill | -148,671.09 | 3,417.61 |
| Bad debt loss of receivables financing | 219,638.25 | |
| Total | -15,163,819.96 | 2,991,413.90 |
72. Asset impairment loss
Unit: Yuan
| Items | Amount incurred in current period | Amount incurred in prior period |
| Loss on inventory valuation and contract performance cost impairment loss | -99,292,387.41 | -23,788,421.51 |
| Total | -99,292,387.41 | -23,788,421.51 |
73. Assets disposal revenue
Unit: Yuan
| Source of assets disposal revenue | Amount incurred in current period | Amount incurred in prior period |
| Revenue from disposal of non-current | -317,178.75 | -893,602.45 |
| assets | ||
| Total | -317,178.75 | -893,602.45 |
74. Nonbusiness income
Unit: Yuan
| Items | Amount incurred in current period | Amount incurred in prior period | Amount included in the current non-recurring profit and loss |
| Supplied goods deduction income | 49,698.80 | 9,500.00 | 49,698.80 |
| Others | 1,531,383.00 | 968,334.68 | 1,531,382.99 |
| Total | 1,581,081.80 | 977,834.68 | 1,581,081.79 |
Government subsidy included in the current profits and losses:
Unit: Yuan
| Subsidy project | Grant entity | Grant reasons | Nature type | Whether the subsidy affect the profit and loss of the year | Whether it is the special subsidy | Amount incurred in the current period | Amount incurred in the last period | Asset-related/revenue-related |
| Software tax rebate | 4,443,028.35 | 2,805,391.14 | Related to revenue | |||||
| Return of individual income tax service charge | 1,083,707.40 | 759,307.14 | Related to revenue | |||||
| R & D expense subsidy | 1,465,000.00 | 1,422,600.00 | Related to revenue | |||||
| Subsidy from the foreign trade quality growth support program of the bureau of commerce | 1,453,557.00 | Related to revenue | ||||||
| Technical transformation project of the intelligent controller and lithium battery automation production line | 832,155.00 | Related to revenue | ||||||
| Industrial and commercial electricity subsidy | 459,804.80 | 65,447.97 | Related to revenue | |||||
| Provincial economic promotion subsidy in 2021 | 300,000.00 | Related to revenue | ||||||
| Training replaced for operation subsidy | 288,500.00 | Related to revenue | ||||||
| Technological transformation supported by 2020 | 208,015.00 | Asset-related |
| anti-epidemic national debt funds | ||||||||
| Patent application subsidy | 157,650.00 | 169,500.00 | Related to revenue | |||||
| R&D project of unmanned Robot Cleaner | 150,000.00 | Asset-related | ||||||
| Research and development equipment funding of smart home management system based on Internet of Things cloud computing technology | 131,500.00 | 131,500.00 | Asset-related | |||||
| Nano lithium iron phosphate power battery project | 125,000.00 | 125,000.00 | Asset-related | |||||
| Financial support fund of Xinqiao Town of Songjiang District of Shanghai | 110,000.00 | Related to revenue | ||||||
| High rate 18650-2.8Ah power battery key technology research and development project | 102,000.00 | 102,000.00 | Asset-related | |||||
| Subsidy for the talent quality improvement project | 100,000.00 | Related to revenue | ||||||
| Industrialization of high efficiency energy saving motor for permanent magnet with rare earth | 97,500.00 | 97,500.00 | Asset-related | |||||
| Policy measure bonus | 70,000.00 | Related to revenue | ||||||
| Exhibition subsidy | 68,400.00 | 5,000.00 | Related to revenue | |||||
| Employment filing subsidy | 65,000.00 | Related to revenue | ||||||
| Business development subsidy | 60,258.00 | Related to revenue | ||||||
| Research and development of 60A solar charging controller with peak power tracking technology | 60,000.00 | 60,000.00 | Asset-related | |||||
| Urban land use tax exemption and subsidy due to the epidemic | 43,592.50 | Related to revenue | ||||||
| Intelligent grid connected project of distributed photovoltaic power station | 30,000.00 | 30,000.00 | Asset-related | |||||
| Clean energy projects subsidy | 25,000.00 | 25,000.00 | Asset-related | |||||
| Position stabilization subsidy | 24,413.33 | 482,937.13 | Related to revenue | |||||
| Industrial enterprise bonus | 20,000.00 | Related to revenue | ||||||
| Ningbo demonstration project subsidy | 20,000.00 | Related to revenue | ||||||
| Subsidy for newly recruited Hubei employees of | 7,000.00 | Related to |
| small, medium-sized and micro enterprises | revenue | |||||||
| Subsidy for software copyright registration | 5,100.00 | Related to revenue | ||||||
| Return of unemployment insurance premium | 5,991,047.80 | Related to revenue | ||||||
| Support and subsidy for enterprises to expand production and increase efficiency | 2,511,000.00 | Related to revenue | ||||||
| Export premium subsidy | 1,552,992.00 | Related to revenue | ||||||
| Two-tax financial subsidy | 1,540,000.00 | Related to revenue | ||||||
| Special subsidy for technological transformation and subsidy for technological transformation investment projects | 330,000.00 | Related to revenue | ||||||
| Reward for scale growth of industrial enterprises | 300,000.00 | Related to revenue | ||||||
| Double promotion funding for technically innovative doubling special funding plan quality brand | 280,000.00 | Related to revenue | ||||||
| Enterprise high-tech enterprise recognition award subsidy | 200,000.00 | Related to revenue | ||||||
| Subsidy project for stabilizing growth | 200,000.00 | Related to revenue | ||||||
| Double support plan for high-tech enterprises | 100,000.00 | Related to revenue | ||||||
| Subsidy for special funds for intellectual property protection | 59,998.00 | Related to revenue | ||||||
| Subsidy for integration of informatization and industrialization | 50,000.00 | Related to revenue | ||||||
| Maternity allowance | 27,563.87 | Related to revenue | ||||||
| Refund of sewage charges | 23,795.10 | Related to revenue | ||||||
| Subsidy for domestic market development of enterprises | 17,480.00 | Related to revenue | ||||||
| Pre-position training subsidy | 14,600.00 | Related to revenue | ||||||
| Subsidy for domestic market development projects | 12,140.00 | Related to revenue |
| VAT exemption for recruitment of veterans | 9,000.00 | Related to revenue | ||||||
| Subsidy for Party construction funds | 3,000.00 | Related to revenue | ||||||
| Refund of service fees for urban construction tax and surtax collected on an agency basis | 624.64 | Related to revenue | ||||||
| Refund of service fees for urban construction tax and surtax deducted on an agency basis | 243.29 | Related to revenue | ||||||
| Total | 12,006,181.38 | 19,504,668.08 |
75. Non-operating expenses
Unit: Yuan
| Items | Amount incurred in current period | Amount incurred in prior period | Amount included in the current non-recurring profit and loss |
| External donations | 50,000.00 | 50,000.00 | |
| Loss on damage and scrapping of non-current assets | 148,616.46 | 854,624.88 | 148,616.46 |
| Customer quality deduction expenditure | 3,039,355.65 | 1,659,827.00 | 3,039,355.65 |
| Others | 1,248,193.58 | 654,206.23 | 1,248,193.58 |
| Total | 4,486,165.70 | 3,168,658.11 | 4,486,165.70 |
76. Income tax expense
(1) Table of income tax expense
Unit: Yuan
| Items | Amount incurred in current period | Amount incurred in prior period |
| Current income tax expense | 24,865,568.64 | 27,473,081.87 |
| Deferred income tax expense | 20,774,273.52 | 51,227.15 |
| Total | 45,639,842.16 | 27,524,309.02 |
(2) Adjustment process of accounting profit and income tax expense
Unit: Yuan
| Items | Amount incurred in current period |
| Total profits | 481,727,135.27 |
| Income tax expenses calculated at statutory / applicable tax rates | 72,259,070.29 |
| Impact of different tax rates on subsidiaries | 191,776.66 |
| Effect of income tax adjustment in previous period | -3,723,025.97 |
| Impact of non-deductible costs, expenses and losses | 880,932.65 |
| Impact of deductible loss of unrecognized deferred income tax assets in previous period | -348,905.11 |
| Impact of deductible temporary difference or deductible loss of unrecognized deferred income tax assets in the current period | 314,487.96 |
| Impact of additional deductible expenses | -13,362,620.59 |
| Changes in the balance of deferred income tax assets / liabilities at the beginning of the year due to tax rate adjustment | 274,063.01 |
| Impact of tax exemption policy for sub-subsidiaries in Vietnam | -11,889,543.96 |
| Impact of other adjustments | 1,043,607.20 |
| Income tax expenses | 45,639,842.16 |
77. Other comprehensive income
See Note 57. Other comprehensive income for details.
78. Items of cash flow statement
(1) Other cash received related to operating activities
Unit: Yuan
| Items | Amount incurred in current period | Amount incurred in prior period |
| Interest income | 4,397,537.66 | 4,449,371.38 |
| Governmental subsidies | 8,671,130.63 | 15,368,969.80 |
| Deposit and margin collection | 1,058,934.03 | 7,503,298.55 |
| Exercise-related individual income tax collected on an agency basis | 11,047,469.30 | 13,111,463.49 |
| Personal borrowings and expenditures | 779,256.00 | 702,406.46 |
| Litigation execution amount | 827,707.00 | 23,524,991.79 |
| Others | 4,264,267.78 | 4,304,266.23 |
| Total | 31,046,302.40 | 68,964,767.70 |
(2) Other cash paid related to operating activities
Unit: Yuan
| Items | Amount incurred in current period | Amount incurred in prior period |
| Service charge | 1,542,403.90 | 1,156,868.91 |
| Management expenses | 25,252,906.57 | 20,476,012.62 |
| Research and development expenses | 33,505,485.16 | 22,399,573.80 |
| Sales expenses | 34,691,387.17 | 31,343,566.87 |
| Margin and deposit expenses | 3,479,392.66 | 4,502,592.47 |
| Employee borrowings | 3,763,609.50 | 2,685,937.37 |
| Others | 10,776,663.69 | 10,511,234.23 |
| Total | 113,011,848.65 | 93,075,786.27 |
(3) Other cash received related to investment activities
Unit: Yuan
| Items | Amount incurred in current period | Amount incurred in prior period |
| Total | 0.00 |
(4) Other cash paid related to investment activities
Unit: Yuan
| Items | Amount incurred in current period | Amount incurred in prior period |
| Total | 0.00 | 0.00 |
(5) Other cash received related to financing activities
Unit: Yuan
| Items | Amount incurred in current period | Amount incurred in prior period |
| Note margin | 18,039,024.44 | 52,360,005.58 |
| Total | 18,039,024.44 | 52,360,005.58 |
(6) Other cash paid related to financing activities
Unit: Yuan
| Items | Amount incurred in current period | Amount incurred in prior period |
| Note margin | 1,561,294.47 | 66,636,003.24 |
| Auction transaction repurchase | 20,008,353.16 | |
| Lease liability payment amount | 6,693,452.50 | |
| Intermediary fees for non-public offering | 805,312.81 | |
| Total | 9,060,059.78 | 86,644,356.40 |
79. Supplementary information of cash flow statement
(1) Supplementary information of cash flow statement
Unit: Yuan
| Supplementary information | Current amount | Amount of the previous period |
| 1.Adjusting net profit to cash flow from operating activities: | -- | -- |
| Net profit | 436,087,293.11 | 221,010,979.23 |
| Plus: Impairment of assets | 114,456,207.37 | 18,355,617.01 |
| Depreciation of fixed assets, depletion of oil and gas assets as well as depreciation of productive biological assets | 49,924,287.12 | 37,258,997.23 |
| Depreciation of use right assets | 6,241,851.65 | |
| Amortization of intangible assets | 31,069,633.99 | 23,327,469.99 |
| Amortization of long-term deferred expenses | 11,996,203.14 | 5,755,160.88 |
| Losses from disposal of fixed assets, intangible assets and other long-term assets (income marked with “-”) | -317,178.75 | -893,602.45 |
| Losses on scrapping of fixed assets (income marked with “-”) | 259,335.13 | 854,624.88 |
| Loss from fair value change (income marked with “-”) | -98,312,768.52 | -3,711,170.46 |
| Financial expenses (income marked with “-”) | 33,018,572.00 | 15,324,983.08 |
| Return on investment (loss marked with "-") | -23,876,616.37 | -77,494,488.36 |
| Decrease in deferred income tax assets (increase marked with “-”) | -21,833,194.16 | -2,223,294.00 |
| Increase in deferred income tax liabilities (decrease marked with “-”) | 14,700,279.13 | 1,452,205.62 |
| Decrease in inventory (increase marked with “-”) | -794,887,074.14 | -290,933,568.72 |
| Decrease in operating receivables (increase marked with “-”) | -470,369,225.23 | 74,855,753.95 |
| Increase in operating payables (decrease marked with “-”) | 484,777,126.41 | 89,674,703.41 |
| Others | 1,359,530.00 | 6,521,881.90 |
| Net cash flow from operating activities | -225,705,738.12 | 119,136,253.19 |
| 2.Major investment and financing activities not involving cash receipts and payments: | -- | -- |
| Conversion of debt into capital | ||
| Convertible bonds due within one year | ||
| Fixed assets acquired under finance leases | ||
| 3.Net change in cash and cash equivalents: | -- | -- |
| Ending balance of cash | 1,284,383,758.87 | 848,089,343.67 |
| Less: beginning balance of cash | 1,196,835,834.93 | 761,845,320.50 |
| Plus: Ending balance of cash equivalents | ||
| Less: beginning balance of cash equivalents | ||
| Net increase in cash and cash equivalents | 87,547,923.94 | 86,244,023.17 |
(2) Net cash paid for acquirement of subsidiaries in the current period
Unit: Yuan
| Amount | |
| Cash or cash equivalents paid in the current period for business combination occurring in the current period | 12,320,000.00 |
| Including: | -- |
| Taixing Ninghui Lithium Battery Co., Ltd. | 12,320,000.00 |
| Less: cash and cash equivalents held by the subsidiary on the date of purchase | 1,037,613.21 |
| Including: | -- |
| Plus: cash or cash equivalents paid in the current period for business combinations occurring in previous periods | 0.00 |
| Including: | -- |
| Net cash paid for acquirement of subsidiaries | 11,282,386.79 |
(3) Net cash received for disposal of subsidiaries in the current period
□ applicable √ not applicable
(4) Composition of cash and cash equivalents
Unit: Yuan
| Items | Ending balance | Beginning balance |
| I. Cash | 1,284,383,758.87 | 1,196,835,834.93 |
| Including: cash in stock | 712,197.18 | 604,492.12 |
| Bank deposit available for payment at any time | 1,225,199,499.85 | 1,196,226,680.89 |
| Other monetary capital available for payment at any time | 12,473,561.84 | |
| III. Balance of cash and cash equivalents at the end of the period | 1,284,383,758.87 | 1,196,835,834.93 |
80. Notes to items in change statement of owner’s equity
□ applicable √ not applicable
81. Assets with limited ownership or use right
Unit: Yuan
| Items | Book value at the end of the period | Restricted reasons |
| Monetary capital | 5,480,466.03 | Security deposits for application to banks for issuance of bank acceptance bills, bank deposits frozen in litigation, etc. |
| Fixed assets | 333,098,600.00 | Mortgage housing loan |
| Total | 338,579,066.03 | -- |
82. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: Yuan
| Items | Foreign currency balance at the end of the period | Conversion rate | Balance converted into RMB at the end of the period |
| Monetary capital | -- | -- | 201,743,053.36 |
| Including: USD | 21,866,009.41 | 6.4601 | 141,256,607.38 |
| Euro | 1,186,523.96 | 7.6862 | 9,119,860.47 |
| Hong Kong Dollar | 588,674.67 | 0.8321 | 489,824.43 |
| Vietnamese dong | 14,750,222,213.24 | 0.0003 | 4,138,903.70 |
| Indian rupee | 532,591,735.72 | 0.0870 | 46,308,851.42 |
| Japanese Yen | 7,342,472.00 | 0.0584 | 429,005.95 |
| Accounts receivable | -- | -- | 878,573,153.68 |
| Including: USD | 127,772,824.24 | 6.4601 | 825,425,221.87 |
| Euro | 523,231.34 | 7.6862 | 4,021,660.73 |
| Hong Kong Dollar | 8,227,219.75 | 0.8321 | 6,845,869.55 |
| Vietnamese dong | 46,501,637,017.00 | 0.0003 | 13,950,491.11 |
| Indian rupee | 325,631,154.31 | 0.0870 | 28,329,910.42 |
| Receivables financing | 149,144,209.02 | ||
| Including: USD | 23,086,981.47 | 6.4601 | 149,144,209.02 |
| Accounts payable | 31,156,300.43 | ||
| Including: Hong Kong Dollar | 35,810.06 | 0.8321 | 29,797.55 |
| USD | 4,237,716.64 | 6.4601 | 27,376,073.27 |
| Vietnamese dong | 10,534,699,013.00 | 0.0003 | 3,160,409.70 |
| Indian rupee | 6,781,838.00 | 0.0870 | 590,019.91 |
| Long-term loans | -- | -- | |
| Including: USD | |||
| Euro | |||
| Hong Kong Dollar | |||
| Vietnamese dong | |||
| Indian rupee |
(2) Description of overseas business entities, including for important overseas business entities, disclosure ofmain overseas business locations, recording currency and selection basis as well as disclosure of reasons forchanges in recording currency.
√ applicable □ not applicable
1. Topband India Private Limited, a subsidiary of the Company, is mainly located in Pune City, Maharashtra, India,with Indian Rupee as the recording currency;
2. Topband (Vietnam) Co., Ltd, a sub-subsidiary of the Company, is mainly located in Binh Duong, Vietnam, withVietnamese dong as the recording currency;
3. TOPBAND SMART DONGNAI (VIETNAM) Co., ltd, a sub-subsidiary of the Company, is mainly located inDong Nai, Vietnam, with Vietnamese dong as the recording currency;
4. Topband Germany GmbH, a sub-subsidiary of the Company, is mainly located in Unterf?hring, Germany, withEuro as the recording currency;
5. TOPBAND JAPAN Co., Ltd., a sub-subsidiary of the Company, is mainly located in Nagoya, Japan, withJapanese Yen as the recording currency;
83. Hedging
□ applicable √ not applicable
84. Government subsidies
(1) Basic information of government subsidies
Unit: Yuan
| Category | Amount | Items presented | Amount included in current profit and loss |
| Software tax rebate | 4,443,028.35 | Other income | 4,443,028.35 |
| Return of individual income tax service charge | 1,083,707.40 | Other income | 1,083,707.40 |
| R & D expense subsidy | 1,465,000.00 | Other income | 1,465,000.00 |
| Subsidy from the foreign trade quality growth support program of the bureau of commerce | 1,453,557.00 | Other income | 1,453,557.00 |
| Technical transformation project of the intelligent controller and lithium battery automation production line | 832,155.00 | Other income | 832,155.00 |
| Industrial and commercial electricity subsidy | 459,804.80 | Other income | 459,804.80 |
| Provincial economic promotion subsidy in 2021 | 300,000.00 | Other income | 300,000.00 |
| Training replaced for operation subsidy | 288,500.00 | Other income | 288,500.00 |
| Technological transformation supported by 2020 anti-epidemic national debt funds | 208,015.00 | Deferred income | 208,015.00 |
| Patent application subsidy | 157,650.00 | Other income | 157,650.00 |
| R&D project of unmanned Robot Cleaner | 150,000.00 | Deferred income | 150,000.00 |
| Research and development equipment funding of smart home management system based on Internet of Things cloud computing technology | 131,500.00 | Deferred income | 131,500.00 |
| Nano lithium iron phosphate power battery project | 125,000.00 | Deferred income | 125,000.00 |
| Financial support fund of Xinqiao Town of Songjiang District of Shanghai | 110,000.00 | Other income | 110,000.00 |
| High rate 18650-2.8Ah power battery key technology research and development project | 102,000.00 | Deferred income | 102,000.00 |
| Subsidy for the talent quality improvement project | 100,000.00 | Other income | 100,000.00 |
| Industrialization of high efficiency energy saving motor for permanent magnet with rare earth | 97,500.00 | Deferred income | 97,500.00 |
| Policy measure bonus | 70,000.00 | Other income | 70,000.00 |
| Exhibition subsidy | 68,400.00 | Other income | 68,400.00 |
| Employment filing subsidy | 65,000.00 | Other income | 65,000.00 |
| Business development subsidy | 60,258.00 | Other income | 60,258.00 |
| Research and development of 60A solar charging controller with peak power tracking technology | 60,000.00 | Deferred income | 60,000.00 |
| Urban land use tax exemption and subsidy due to the epidemic | 43,592.50 | Other income | 43,592.50 |
| Intelligent grid connected project of distributed photovoltaic power station | 30,000.00 | Other income | 30,000.00 |
| Clean energy projects subsidy | 25,000.00 | Other income | 25,000.00 |
| Position stabilization subsidy | 24,413.33 | Other income | 24,413.33 |
| Industrial enterprise bonus | 20,000.00 | Other income | 20,000.00 |
| Ningbo demonstration project subsidy | 20,000.00 | Other income | 20,000.00 |
| Subsidy for newly recruited Hubei employees of small, medium-sized and micro enterprises | 7,000.00 | Other income | 7,000.00 |
| Subsidy for software copyright registration | 5,100.00 | Other income | 5,100.00 |
(2) Situation of government subsidies refund
□ applicable √ not applicable
85. Others
□ applicable √ not applicable
VIII. Changes in the scope of consolidation
1. Merger of enterprises under different control
(1) Merger of enterprise under different control occurred in the current period
Unit: Yuan
| Name of acquiree | Date of equity acquired | Cost of equity acquired | Ratio of equity acquired | Equity acquired via | Date of purchasing | Basis for determination of acquisition date | Revenue of the acquiree from the date of purchasing to the end of the period | Net profit of acquiree from the acquisition date to the end of the period |
| Taixing Ninghui Lithium Battery Co., Ltd. | February 5, 2021 | 33,400,000.00 | 83.50% | Merger of enterprises under different control | February 5, 2021 | Investment agreement and industrial and commercial | 19,237,620.78 | -717,938.81 |
(2) Merging cost and goodwill
Unit: Yuan
changeregistrationMerging cost
| Merging cost | |
| --Cash | 33,400,000.00 |
| Total merging cost | 33,400,000.00 |
| Less: share of fair value of the net identifiable assets acquired | 19,898,202.54 |
| The amount of which the goodwill/merging cost is less than the share of fair value of the net identifiable assets acquired | 1,755,000.88 |
The determination method of the fair value of the merger cost, the contingent consideration and the description ofits changes:
Note: Of the merger cost, 15.4 million yuan was used to purchase part of the equity of the original shareholders;of the merger cost, 18 million yuan was used to increase the capital of the investee.
(3) Identifiable assets and liabilities of the acquiree
Unit: Yuan
| Fair value on the acquisition date | Book value on the acquisition date | |
| Monetary capital | 1,037,613.21 | 1,037,613.21 |
| Accounts receivable | 127,205.42 | 127,205.42 |
| Inventory | 10,795,207.69 | 10,795,207.69 |
| Fixed assets | 21,244,666.39 | 21,244,666.39 |
| Accounts payable | 5,204,644.68 | 5,204,644.68 |
| Net assets | 19,898,202.54 | 19,898,202.54 |
| Less: minority shareholders' equity | 0.00 | |
| Net assets acquired | 19,898,202.54 | 19,898,202.54 |
(4) Gains or losses arising from remeasurement of equity held before the acquisition date at fair valueWas there a transaction that realized business combination step by step through multiple transactions and obtainedcontrol during the reporting period
□ Yes √ No
(5) Relevant explanations for the inability to reasonably determine the merger consideration or the fairvalue of the identifiable assets and liabilities of the acquiree on the acquisition date or at the end of thecurrent period
□ applicable √ not applicable
(6) Other description
□ applicable √ not applicable
2. Merger of enterprises under the same control
□ applicable √ not applicable
3. Reverse purchase
□ applicable √ not applicable
4. Disposal of subsidiaries
Is there single disposal of the investment in a subsidiary which results in loss of control
□ Yes √ No
Are there are step-by-step disposal of the investment in a subsidiary through multiple transactions and loss ofcontrol in the current period
□ Yes √ No
5. Changes in the scope of merger due to other reasons
□ applicable √ not applicable
6. Others
□ applicable √ not applicable
IX. Interests in Other Entities
1. Interests in subsidiaries
(1) Composition of enterprise group
| Name of subsidiary | Principal place of business | Registered place | Nature of business | Shareholding proportion | Acquisition method | |
| Direct | Indirect | |||||
| Shenzhen Topband Software Technology Co., Ltd. | Shenzhen | Shenzhen | Production and sales | 100.00% | Establishment | |
| Shenzhen Topband Lithium Battery Co., Ltd. | Shenzhen | Shenzhen | Production and sales | 100.00% | Establishment | |
| Shenzhen Topband Automation Technology Co., Ltd. | Shenzhen | Shenzhen | Production and sales | 100.00% | Establishment | |
| Chongqing Topband Industrial Co., Ltd. | Chongqing | Chongqing | Production and sales | 100.00% | Establishment | |
| Topband (Hong Kong) Co., Ltd. | Hong Kong | Hong Kong | Investment | 100.00% | Establishment | |
| Huizhou Topband Electrical Technology Co., Ltd. | Huizhou | Huizhou | Production and sales | 100.00% | Establishment | |
| Huizhou Topband Lithium Battery Co., Ltd. | Huizhou | Huizhou | Production and sales | 100.00% | Establishment | |
| Topband (Qingdao) Intelligent Control Co., Ltd. | Ningbo | Ningbo | Production and sales | 100.00% | Establishment | |
| Shenzhen Allied Control System Co., Ltd. | Shenzhen | Shenzhen | Production and sales | 100.00% | Merger of enterprises under different control | |
| Shenzhen Meanstone Intelligent Technology Co., Ltd. | Shenzhen | Shenzhen | Production and sales | 77.25% | Merger of enterprises under different control | |
| Topband （Vietnam) Co.,ltd | Binh Duong, Vietnam | Binh Duong, Vietnam | Production and sales | 100.00% | Establishment | |
| Topband India Private Limited | India | India | Sales | 100.00% | Establishment | |
| TOPBAND SMART DONGNAI(VIETNAM) Co.,ltd | Dong Nai Province, Vietnam | Dong Nai Province, Vietnam | Production and sales | 100.00% | Establishment | |
| Shenzhen YAKO Automation Technology Co., Ltd. | Shenzhen | Shenzhen | Production and sales | 73.00% | Merger of enterprises under different control | |
| Hangzhou Zhidong Motor Technology Co., Ltd. | Hangzhou | Hangzhou | Production and sales | 52.50% | Merger of enterprises under different control | |
| Shenzhen Yansheng Software Co., Ltd. | Shenzhen | Shenzhen | Software development | 73.00% | Merger of enterprises under different control | |
| Topband Germany GmbH | Unterfohring, Germany | Unterfohring City, Germany | Sales | 100.00% | Establishment | |
| Shenzhen Topband Supply Chain Services Co., Ltd. | Shenzhen | Shenzhen | Sales, import and export business and supply chain management services | 100.00% | Establishment | |
| Shenzhen Spark IOT Technology Co., Ltd. | Shenzhen | Shenzhen | Research and development as well as sales | 100.00% | Establishment | |
| Shenzhen Topband Investment Co., Ltd. | Shenzhen | Shenzhen | Investment | 100.00% | Establishment | |
| Shenzhen Tulu Innovation Co., Ltd. | Shenzhen | Shenzhen | Sales, import and export business and supply chain management services | 100.00% | Establishment | |
| Shenzhen Senxuan Technology Co., Ltd. | Shenzhen | Shenzhen | Sales, import and export business and supply chain management services | 100.00% | Establishment | |
| TOPBAND JAPAN Co., Ltd. | Nagoya City, Japan | Nagoya City, Japan | Sales, import and export business and supply chain management services | 100.00% | Establishment | |
| Topband (Qingdao) Intelligent Control Co., Ltd. | Qingdao | Qingdao | Production and sales | 100.00% | Establishment | |
| Shenzhen Tengyi Industrial Co., Ltd. | Shenzhen | Shenzhen | Sales | 100.00% | Merger of enterprises under different control | |
| Shenzhen Zhongli Consulting Co., Ltd. | Shenzhen | Shenzhen | Consulting and training | 100.00% | Establishment | |
| Taixing Ninghui Lithium Battery Co., Ltd. | Taixing | Taixing | Production and sales | 83.50% | Merger of enterprises under different |
| control | ||||||
| Tulu Innovation (Hong Kong) Limited | Hong Kong | Hong Kong | Sales | 100.00% | Establishment |
(2) Important non-wholly-owned subsidiaries
Unit: Yuan
| Name of subsidiary | Shareholding ratio of minority shareholders | Profits and losses attributable to minority shareholders during the current period | Dividends declared and distributed to minority shareholders during the current period | Ending balance of minority equity |
| Shenzhen YAKO Automation Technology Co., Ltd. | 27.00% | 8,203,014.78 | 5,197,835.08 | 88,285,489.37 |
(3) Major financial information of important non-wholly-owned subsidiaries
Unit: Yuan
| Name of subsidiary | Ending balance | Beginning balance | ||||||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
| Shenzhen YAKO Automation Technology Co., Ltd. | 320,471,958.72 | 65,581,462.71 | 386,053,421.43 | 62,999,334.09 | 12,027,541.21 | 75,026,875.30 | 303,827,572.37 | 47,014,094.08 | 350,841,666.45 | 50,893,109.13 | - | 50,893,109.13 |
Unit: Yuan
| Name of subsidiary | Amount incurred in current period | Amount incurred in prior period | ||||||
| Operating income | Net profit | Total comprehensive income | Cash flow from operating activities | Operating income | Net profit | Total comprehensive income | Cash flow from operating activities | |
| Shenzhen YAKO Automation Technology Co., Ltd. | 166,417,599.85 | 30,329,229.86 | 30,329,229.86 | -3,857,802.79 | 130,041,552.68 | 27,227,181.75 | 27,227,181.75 | -24,396,996.43 |
(4) Significant restrictions on the use of enterprise group assets and the liquidation of enterprise groupdebts
□ applicable √ not applicable
(5) Financial support or other support provided to structured entities included in the scope of theconsolidated financial statements
□ applicable √ not applicable
2. Transaction in respect of which the share of the owner's equity of a subsidiary is changed and thesubsidiary is still under control
□ applicable √ not applicable
3. Interests in joint venture arrangements or associated enterprises
(□Applicable √ not applicable
4. Important joint operation
□ applicable √ not applicable
5. Interests in structured entities not included in the scope of the consolidated financial statements
□ applicable √ not applicable
6. Others
□ applicable √ not applicable
X. Risks Associated with Financial InstrumentsThe main financial instruments of the Company include equity investment, borrowings, accounts receivable,accounts payable, etc. For the detailed description of each financial instrument, refer to relevant items in this NoteVI. The risks associated with these financial instruments and the risk management policies adopted by theCompany to mitigate these risks are described below. The Management of the Company manages and monitorsthese risk exposures to ensure that these risks are controlled within the limited scope.The Company uses sensitivity analysis technology to analyze the possible impact of reasonable and possiblechanges in risk variables on current profits and losses or shareholders' equity. Since any risk variable rarelychanges in isolation, and the correlation between the variables will have a significant effect on the final amountaffected by a change in a risk variable, the following contents are based on the assumption that changes in each
variable are made in isolation.(I) Risk management objective and policyThe Company's risk management objective is to strike an appropriate balance between risks and returns, reducethe negative impact of risks on the Company's business performance to the lowest level, and maximize theinterests of shareholders and other equity investors. Based on this risk management objective, the basic riskmanagement strategy of the Company is to determine and analyze various risks faced by it, establish anappropriate risk bearing bottom line and carry out risk management, and conduct timely and reliable supervisionof various risks to control risks within the limited scope.
1. Market risk
(1) Foreign exchange risk
Foreign exchange risk refers to the risk of loss due to exchange rate fluctuations. The Company's foreignexchange risks are mainly related to US dollars and Hong Kong dollars. In addition, the Company and itssubsidiary Topband (Hong Kong) Co., Ltd. purchase some materials and sell products in US dollars and HongKong dollars. Topband India Private Limited, a subsidiary of the Company, is denominated in Indian Rupee;Topband (Vietnam) Co., Ltd. and Topband Smart Dongnai (Vietnam) Co., Ltd., sub-subsidiaries of the Company,are denominated in Vietnamese Dong; Topband Germany GmbH, a sub-subsidiary of the Company, isdenominated in Euro; Topband Japan Co., Ltd., a sub-subsidiary of the Company, is denominated in Japanese Yen.Other major business activities of the Company are denominated and settled in RMB.As of June 30, 2021, theCompany's assets and liabilities were balances in RMB except that the assets or liabilities described in the tablebelow were balances in USD, HKD, INR, VDN and YEN. The foreign exchange risks arising from the assets andliabilities of such foreign currency balances may have an impact on the Company's operating results.
| Items | Amount at the end of the year | Amount at the beginning of the year |
| Cash and cash equivalents | 201,743,053.36 | 147,083,094.22 |
| Hong Kong Dollar | 489,824.43 | 588,457.79 |
| USD | 141,256,607.38 | 130,907,063.75 |
| Euro | 9,119,860.47 | 4,622,874.52 |
| Vietnamese dong | 4,138,903.70 | 10,964,698.16 |
| Indian rupee | 46,308,851.42 | 52,805,773.23 |
| Japanese Yen | 429,005.95 | 1,685,384.53 |
| Accounts receivable | 878,573,153.68 | 720,991,666.44 |
| Hong Kong Dollar | 6,845,869.55 | 16,137,574.75 |
| USD | 825,425,221.87 | 684,814,883.97 |
| Euro | 4,021,660.73 | 7,427,921.54 |
| Vietnamese dong | 13,950,491.11 | 3,739,078.18 |
| Indian rupee | 28,329,910.42 | 8,872,208.00 |
| Receivables financing | 149,144,209.02 | |
| USD | 149,144,209.02 | 0.00 |
| Accounts payable | 31,156,300.43 | 14,905,145.96 |
| Hong Kong Dollar | 29,797.55 | 30,139.18 |
| USD | 27,376,073.27 | 12,599,740.06 |
| Vietnamese dong | 3,160,409.70 | 1,899,388.63 |
| Indian rupee | 590,019.91 | 375,878.09 |
The Company pays close attention to the impact of exchange rate fluctuations on the Company's foreign exchangerisks. At present, the Company has taken measures such as purchasing forward foreign exchange sales contracts toavoid foreign exchange risks.Foreign exchange risk sensitivity analysis:
Assumption of foreign exchange risk sensitivity analysis: All net investment hedging and cash flow hedging ofoverseas operations are highly effective. On the basis of the above assumption, if other variables remainunchanged, the pretax impact of possible reasonable changes in the exchange rate on the current profits and lossesand shareholders' equity is as follows:
| Items | Exchange rate changes | Current year | Last year |
| Impact on profits | Impact on shareholders' equity | Impact on profits | Impact on shareholders' equity | ||
| Cash and cash equivalents | Appreciate 1% against RMB | 2,017,430.53 | 2,017,430.53 | 2,015,742.52 | 2,015,742.52 |
| Cash and cash equivalents | Depreciate 1% against RMB | -2,017,430.53 | -2,017,430.53 | -2,015,742.52 | -2,015,742.52 |
| Accounts receivable | Appreciate 1% against RMB | 8,785,731.54 | 8,785,731.54 | 7,209,908.99 | 7,209,908.99 |
| Accounts receivable | Depreciate 1% against RMB | -8,785,731.54 | -8,785,731.54 | -7,209,908.99 | -7,209,908.99 |
| Receivables financing | Appreciate 1% against RMB | 1,491,442.09 | 1,491,442.09 | ||
| Receivables financing | Depreciate 1% against RMB | -1,491,442.09 | -1,491,442.09 | ||
| Accounts payable | Appreciate 1% against RMB | -311,563.00 | -311,563.00 | -149,051.45 | -149,051.45 |
| Accounts payable | Depreciate 1% against RMB | 311,563.00 | 311,563.00 | 149,051.45 | 149,051.45 |
(2) Other price risks
Investments held by the Company and classified as trading financial assets are measured at fair value on thebalance sheet date. Therefore, the Company is exposed to the risk of changes in the securities market.
2. Credit risk
As of June 30, 2021, the maximum credit risk exposure that might cause financial loss of the Company mainlycame from the loss of the Company's financial assets caused by the failure of the other party to the contract toperform obligations and the financial guarantee undertaken by the Company, specifically including the carryingamount of the financial assets recognized in the consolidated balance sheet.In order to reduce credit risks, the Company has set up special positions responsible for determining credit limits,conducting credit approval, and implementing other monitoring procedures to ensure that necessary measures aretaken to recover overdue claims. In addition, the Company reviews the recovery of each individual receivables oneach balance sheet date to ensure that adequate provision is made for uncollectible amounts. As a result, theManagement of the Company believes that the credit risk assumed by the Company has been significantlyreduced.The Company's working capital is deposited in a bank with a high credit rating, so the credit risk of workingcapital is low.
(1) Aging analysis of overdue unimpaired financial assets
| Items | 2021-6-30 |
| Within 1 year | 1~2 years | 2~3 years | 3~5 years | Over 5 years | Total | |
| Accounts receivable | 158,618,993.20 | 40,075,933.50 | 2,654,776.63 | 1,164,560.49 | 645,166.80 | 271,261,281.76 |
| Items | 2020-12-31 | |||||
| Within 1 year | 1~2 years | 2~3 years | 3~5 years | Over 5 years | Total | |
| Accounts receivable | 66,900,889.84 | 20,639,335.42 | 5,908,366.30 | 632,811.52 | 639,506.80 | 94,720,909.88 |
(2) The Company has adopted necessary policies to ensure that all sales customers have good credit records. TheCompany has no other major credit concentration risk.
3. Flow risk
In managing liquidity risks, the Company maintains and monitors cash and cash equivalents deemed sufficient by
the Management to meet the Company's operational needs and reduce the impact of cash flow fluctuations. TheManagement of the Company monitors the use of bank loans and ensures compliance with loan agreements.The Company relies on bank loans as its main source of funds. On June 30, 2021, the Company's unused bankloan limit was 5,969,850,500 yuan.The maturity term analysis of the financial assets held by the Company and the maturity term analysis of thefinancial liabilities based on undiscounted remaining contractual obligations are as follows:
| Items | Within 1 year | 1~2 years | 2~3 years | 3~5 years | Over 5 years | Total |
| Non-derivative financial assets and liabilities: | ||||||
| Monetary capital | 1,289,864,224.89 | 1,289,864,224.89 | ||||
| Notes receivable | 68,545,551.44 | 68,545,551.44 |
| Accounts receivable | 2,118,572,750.32 | 2,118,572,750.32 | ||||
| Receivables financing | 289,248,841.88 | 289,248,841.88 | ||||
| Other receivables | 19,526,612.06 | 19,526,612.06 | ||||
| Short-term loans | 135,890,741.95 | 135,890,741.95 | ||||
| Notes payable | 1,009,181,787.24 | 1,009,181,787.24 |
| Accounts payable | 1,882,551,558.88 | 1,882,551,558.88 | ||||
| Other payables | 69,253,389.96 | 69,253,389.96 |
| Non-current liabilities due within one year | 38,891,387.34 | 38,891,387.34 | ||||
| Long-term loans | 21,740,000.00 | 34,784,000.00 | 78,260,000.00 | 56,520,000.00 | 169,564,000.00 |
XI. Disclosure of Fair Value
1. Ending fair value of assets and liabilities measured at fair value
Unit: Yuan
| Items | Ending fair value | |||
| The first level of fair value measurement | The second level of fair value measurement | The third level of fair value measurement | Total | |
| I. Continuous fair value measurement | -- | -- | -- | -- |
| 1. Financial assets measured at fair value and whose changes are included in the current profits and losses | 13,560,930.89 | 316,860,979.98 | 330,421,910.87 | |
| (1) Debt instrument investment | 116,500,000.00 | 116,500,000.00 | ||
| (2) Equity instrument investment | 13,560,930.89 | 200,360,979.98 | 213,921,910.87 | |
| (VIII) Financial assets measured at fair value and whose changes are included in other comprehensive income | 289,584,260.14 | 289,584,260.14 | ||
| Receivables financing | 289,584,260.14 | 289,584,260.14 | ||
| Including: bank acceptance bills | 140,440,051.12 | 140,440,051.12 | ||
| Accounts receivable | 149,144,209.02 | 149,144,209.02 | ||
| Total liabilities continuously measured at fair value | 13,560,930.89 | 606,445,240.12 | 620,006,171.01 | |
| II. Non-continuous fair value measurement | -- | -- | -- | -- |
2. The basis for determining the market price of continuous and non-continuous first-level fair valuemeasurement itemsThe market value of financial assets measured at fair value with the changes included in the current profits andlosses are determined mainly on the basis of the closing price at the end of the accounting period of the stockexchange.
3. Continuous and non-continuous second-level fair value measurement items, valuation techniquesadopted and qualitative and quantitative information of important parameters
4. Continuous and non-continuous third-level fair value measurement items, valuation techniques adoptedand qualitative and quantitative information of important parameters
5. Continuous third-level fair value measurement items, adjustment information between beginning andending book value and sensitivity analysis of unobservable parameters
6. For continuous fair value measurement items, if the conversion occurs among different levels in thecurrent period, the reasons for the conversion and the policies for determining the conversion time point
7. Technical changes in valuation during the current period and the reasons for such changes
8. Fair value of financial assets and financial liabilities not measured at fair value
9. Others
XII. Related Parties and Related Transactions
1. Information on the parent company of the Enterprise
| Name of parent company | Registered place | Nature of business | Registered capital | The parent company's shareholding ratio in the Enterprise | Proportion of the parent company's voting rights in the Enterprise |
| Wu Yongqiang | Shenzhen | Natural person shareholder | 17.12% | 17.12% |
2. Information on the Company's subsidiaries
The information on the subsidiaries of the Enterprise is detailed in "1. Interests in Subsidiaries" in "Interests inOther Entities" in Note 9.
3. Information on the joint ventures and associated enterprises of the Enterprise
□ applicable √ not applicable
4. Other related parties
| Names of other related parties | Relationship between other related parties and the Enterprise |
| Shenzhen Jizhiguang Electronics Co., Ltd. | A company substantially controlled by the relative of the Company's legal representative |
| Shenzhen Lianghui Technology Co., Ltd. | A company whose shares are held by the Company |
| Shenzhen ORVIBO Technology Co., Ltd. | A company whose shares are held by the Company |
| Shenzhen HANSC Intelligent Technology Co., Ltd. | A company whose shares are held by the Company |
| Guangdong Zhongchuang Zhijia Scientific Research Co., Ltd. | A company whose shares are held by the Company |
| Guangdong Huixin Semiconductor Co., Ltd. | A company whose shares are held by the Company |
| Fujian Mini Dolphin New Energy Technology Co., Ltd. | A company whose shares are held by the Company |
| Shenzhen Youbi Technology Co., Ltd. | A company whose shares are held by the Company |
| Pas Electronic Technology (Nanjing) Co., Ltd. | A company whose shares are held by the Company |
| Shanghai Yidong Power Technology Co., Ltd. | A company whose shares are held by the Company |
5. Related transactions
(1) Related transactions involving the purchase and sale of goods and the provision and acceptance ofservicesList of goods purchased/services received
Unit: Yuan
| Related party | Related transaction content | Amount incurred in current period | Approved transaction limit | Is the transaction limit exceeded | Amount incurred in prior period |
| Shenzhen Jizhiguang Electronics Co., Ltd. | Raw materials | 10,416,476.86 | 40,000,000.00 | No | 5,285,786.51 |
| Shenzhen ORVIBO Technology Co., Ltd. | Raw materials | 14,150.94 |
List of goods sold/services provided
Unit: Yuan
| Related party | Related transaction content | Amount incurred in current period | Amount incurred in prior period |
| Shenzhen ORVIBO Technology Co., Ltd. | LED products | 29,087,963.75 | 2,212,389.67 |
(2) Relevant entrusted management/contracting and entrusted management/outsourcing
□ applicable √ not applicable
(3) Related lease
□ applicable √ not applicable
(4) Related guarantee
□ applicable √ not applicable
(5) Related parties' loans at call
□ applicable √ not applicable
(6) Asset transfer and debt restructuring of related parties
□ applicable √ not applicable
(7) Remuneration of key management personnel
Unit: Yuan
| Items | Amount incurred in current period | Amount incurred in prior period |
| Remuneration of key management personnel | 3,310,400.00 | 3,169,600.00 |
(8) Other related transactions
□ applicable √ not applicable
6. Payables due to related parties
(1) Item receivable
Unit: Yuan
| Project name | Related party | Ending balance | Beginning balance | ||
| Book balance | Provision for bad debts | Book balance | Provision for bad debts | ||
| Accounts receivable | Shenzhen ORVIBO Technology Co., Ltd. | 7,477,003.34 | 231,787.10 | 11,456,976.61 | 355,166.27 |
(2) Item payable
Unit: Yuan
| Project name | Related party | Book balance at the end of the period | Book balance at the beginning of the period |
| Accounts payable | Shenzhen Jizhiguang Electronics Co., Ltd. | 2,312,108.90 | 3,600,589.88 |
| Notes payable | Shenzhen Jizhiguang Electronics Co., Ltd. | 4,118,472.70 | 1,560,000.00 |
7. Commitment of related parties
□ applicable √ not applicable
8. Others
□ applicable √ not applicable
XIII. Share-based payment
1. General situation of share-based payment
√ applicable □ not applicable
Unit: Yuan
| Total amount of equity instruments granted by the Company during the current period | 0.00 |
| Total amount of equity instruments exercised by the Company during the current period | 10,950,600.00 |
| Total amount of the Company's equity instruments that expired during the current period | 283,300.00 |
| The range of the exercise price of the Company's stock options outstanding at the end of the period and the remaining term of the contract | The Company granted 42.8870 million stock options to 684 incentive recipients on November 27, 2018. The performance evaluation and exercise of the Company and the individuals of the incentive objects are conducted by the year, and the evaluation is conducted once each fiscal year. The achievement of the performance evaluation target is taken as the exercise condition of the incentive objects. This plan is valid for a maximum period of 48 months from the date of authorization of stock options to the date on which all options are exercised or cancelled. After the expiration of 12 months from the authorization date of the incentive plan of the current period, the incentive objects shall exercise the stock options by stages according to the exercise proportion of 30%, 30% and 40% within the vesting date. The grant price of the stock options that have not been unlocked at the end of the period is RMB 3.60. |
Other description:
1. Stock options in 2018
On November 27, 2018, the ninth meeting of the sixth Board of Directors of the Company deliberated and passedthe Proposal on Granting Stock Options to Incentive Objects, granting 42,887,000 stock options to 684 eligibleincentive objects at a grant price of RMB 3.80 per share.On July 26, 2019, the 15th meeting of the sixth Board of Directors of the Company deliberated and passed theProposal on Adjusting the Stock Option Exercise Price of the 2018 Stock Option Incentive Plan, which adjustedthe exercise price of the 2018 Stock Option Incentive Plan from RMB 3.80 to RMB 3.70 due to the Company's2018 annual equity distribution.On March 30, 2020, the Company held the 22nd Meeting of the 6th Board of Directors, deliberating andapproving the Proposal on the First Exercise Period of 2018 Stock Option Incentive Plan Meeting the ExerciseConditions and Exercisable Rights and the Proposal on Adjustment of the Incentive Objects and the Number ofStock Options of 2018 Stock Option Incentive Plan: In the first exercise period of the 2018 stock option incentiveplan of the Company, a total of 606 incentive objects with 12,014,700 stock options in total were eligible forexercise. In May 2020, a total of 606 incentive objects with 12,014,700 stock options in total in the first exerciseperiod completed exercise.On January 16, 2020, given that 76 original incentive objects of the Company, including Huang Xinyu and YangShengcang, left office due to personal reasons, according to relevant provisions of the 2018 Stock OptionIncentive Plan (Revised Draft), the above personnel did not meet the incentive conditions, and a total of 2,773,000stock options that were granted to the 76 original incentive objects but were not exercised may not be exercised.The Company completed the cancellation of such stock options on January 29, 2021.On March 9, 2021, the 6th Meeting of the 7th Board of Directors of the Company deliberated and approved theProposal on the Second Exercise Period of 2018 Stock Option Incentive Plan Meeting the Exercise Conditionsand Exercisable Rights and Proposal on Adjustment of the Incentive Objects and the Number of Stock Options of2018 Stock Option Incentive Plan: there are 567 incentive objects in the second exercise period of the 2018 stockoption incentive plan in the Company, in total of 10,950,600 shares of stock options, that meet the exerciseconditions and can be exercised. The Company plans to adopt the independent exercise mode. As the incentiveobjects Cheng Xuejing and Lin Qiao resigned and left the Company for personal reasons, 80,500 stock optionsgranted but not exercised shall not be exercised and shall be uniformly canceled by the Company. The procedures
such as the review of the adjustment of the number of such options will be performed later. By March 2021, atotal of 10.9326 million stock options had been exercised by 565 incentive objects in the second exercise period.
2. Equity-settled share-based payments
√ applicable □ not applicable
Unit: Yuan
| Method for determining the fair value of the equity instrument on the grant date | Black-Scholes option pricing model |
| Basis for determining the number of exercisable equity instruments | It is expected that the exercise condition can be met and the granted objects will exercise |
| Accumulated amount of equity-settled share-based payments included in capital reserves | 82,321,190.45 |
| Total amount of expenses recognized by equity-settled share-based payments in the current period | 2,950,550.74 |
3. Cash-settled share-based payments
□ applicable √ not applicable
4. Modification and termination of share-based payments
□ applicable √ not applicable
XIV. Commitments and contingencies
1. Important commitments
□ applicable √ not applicable
2. Contingencies
□ applicable √ not applicable
XV. Events after the balance sheet date
□ applicable √ not applicable
XVI. Other important matters
□ applicable √ not applicable
XVII. Notes on Main Items in the Financial Statements of the Parent Company
1. Accounts receivable
(1) Disclosure of accounts receivable by category
Unit: Yuan
| Category | Ending balance | Beginning balance | ||||||||
| Book balance | Provision for bad debts | Book value | Book balance | Provision for bad debts | Book value | |||||
| Amount | Proportion | Amount | Proportion of provision | Amount | Proportion | Amount | Proportion of provision | |||
| Accounts receivable with provision for bad debts by single item | 217,161,121.16 | 16.60% | 2,309,518.00 | 1.01% | 214,851,603.16 | 70,467,909.49 | 0.08% | 597,758.70 | 1.00% | 69,870,150.79 |
| Including: | ||||||||||
| Accounts receivable with a single significant amount and single bad debt provision | 216,563,660.79 | 16.55% | 1,712,057.63 | 0.79% | 214,851,603.16 | 69,868,984.66 | 7.56% | 0.00% | 69,868,984.66 | |
| Accounts receivable with insignificant single amount but single provision made for bad debts | 597,460.37 | 0.05% | 597,460.37 | 100.00% | 0.00 | 598,924.83 | 0.06% | 597,758.70 | 99.81% | 1,166.13 |
| Accounts receivable with provision for bad debts by portfolio | 1,091,171,870.83 | 83.40% | 35,289,147.03 | 3.23% | 1,055,882,723.80 | 854,095,677.91 | 92.38% | 27,700,353.00 | 3.24% | 826,395,324.91 |
| Including: | ||||||||||
| Accounts receivable with provision for bad debts by aging combination | 1,091,171,870.83 | 83.40% | 35,289,147.03 | 3.23% | 1,055,882,723.80 | 854,095,677.91 | 92.38% | 27,700,353.00 | 3.24% | 826,395,324.91 |
| Total | 1,308,332,991.99 | 100.00% | 37,598,665.03 | 2.87% | 1,270,734,326.96 | 924,563,587.40 | 100.00% | 28,298,111.70 | 3.06% | 896,265,475.70 |
Single provision for bad debts: 2,309,518.00
Unit: Yuan
| Name | Ending balance | |||
| Book balance | Provision for bad debts | Proportion of provision | Reasons for provision | |
| Customer 1 | 155,217,059.18 | 0.00 | 0.00% | Intragroup related transactions |
| Customer 2 | 22,369,082.99 | 0.00 | 0.00% | Intragroup related transactions |
| Customer 3 | 10,905,846.75 | 0.00 | 0.00% | Intragroup related transactions |
| Customer 4 | 12,734,253.24 | 0.00 | 0.00% | Intragroup related transactions |
| Customer 5 | 6,336,826.69 | 0.00 | 0.00% | Intragroup related transactions |
| Customer 6 | 5,982,449.72 | 0.00 | 0.00% | Intragroup related transactions |
| Customer 7 | 1,306,084.59 | 0.00 | 0.00% | Intragroup related transactions |
| Customer 8 | 1,712,057.63 | 1,712,057.63 | 100.00% | It is not expected to be recovered |
| Customer 9 | 300,000.00 | 300,000.00 | 100.00% | It is not expected to be recovered |
| Customer 10 | 297,460.37 | 297,460.37 | 100.00% | It is not expected to be recovered |
| Total | 217,161,121.16 | 2,309,518.00 | -- | -- |
Provision for bad debts by portfolio:
Unit: Yuan
| Name | Ending balance | ||
| Book balance | Provision for bad debts | Proportion of provision | |
| Provision for bad debts by aging portfolio | 1,091,171,870.83 | 35,289,147.03 | 3.23% |
| Total | 1,091,171,870.83 | 35,289,147.03 | -- |
Provision for bad debts by portfolio:
Unit: Yuan
| Name | Ending balance | ||
| Book balance | Provision for bad debts | Proportion of provision | |
Description of the basis for determining the portfolio:
If the provision for bad debts on accounts receivable is based on the general model of expected credit loss, theinformation about the provision for bad debts shall be disclosed by referring to the disclosure method of otherreceivables:
□ applicable √ not applicable
Disclosure by aging
Unit: Yuan
| Aging | Ending balance |
| Less than 1 year (including 1 year) | 1,290,662,573.49 |
| 1 to 2 years | 15,202,351.20 |
| 2 to 3 years | 2,111,296.50 |
| More than 3 years | 356,770.80 |
| 3 to 4 years | 356,770.80 |
| 4 to 5 years | 0.00 |
| Over 5 years | 0.00 |
| Total | 1,308,332,991.99 |
(2) Provision for bad debts withdrawn, recovered or reversed in current period
Provision for bad debts in current period:
Unit: Yuan
| Category | Beginning balance | Amount changed in current period | Ending balance | |||
| Provision | Recover or reversal | Write-off | Others | |||
| Provision for bad debts | 28,298,111.70 | 9,380,553.33 | 80,000.00 | 37,598,665.03 | ||
| Total | 28,298,111.70 | 9,380,553.33 | 80,000.00 | 37,598,665.03 | ||
(3) Accounts receivable actually written off in current period
Unit: Yuan
| Items | Write-off amount |
| Shanghai Haoze Noorey Environmental Protection Technology Co., Ltd. | 80,000.00 |
Of which the significant write-offs of accounts receivable:
Unit: Yuan
| Name of Entity | Nature of accounts receivable | Write-off amount | Reasons for write off | Write-off procedures performed | Whether the amount was generated by related transactions |
| Shanghai Haoze Noorey Environmental Protection Technology Co., Ltd. | 80,000.00 | It is not expected to be recovered | |||
| Total | -- | 80,000.00 | -- | -- | -- |
(4) Accounts receivable of top five ending balances grouped by debtors
Unit: Yuan
| Name of Entity | Ending balance of accounts receivable | Proportion to total ending balances of accounts receivable | Ending balance of provision for bad debts |
| No.1 | 401,550,889.96 | 30.69% | 12,448,077.59 |
| No.2 | 155,217,059.18 | 11.86% | |
| No.3 | 41,484,004.93 | 3.17% | 1,286,004.15 |
| No.4 | 40,273,861.57 | 3.08% | 1,248,489.71 |
| No.5 | 27,014,388.53 | 2.06% | 837,446.04 |
| Total | 665,540,204.17 | 50.86% |
(5) Accounts receivable derecognized due to transfer of financial assets
□ applicable √ not applicable
(6) Amount of assets and liabilities formed by transferring accounts receivable and continuing to beinvolved
□ applicable √ not applicable
2. Other receivables
Unit: Yuan
| Items | Ending balance | Beginning balance |
| Other receivables | 35,903,482.71 | 41,159,647.12 |
| Total | 35,903,482.71 | 41,159,647.12 |
(1) Interest receivable
□ applicable √ not applicable
(2) Dividends receivable
□ applicable √ not applicable
(3) Other receivables
1) Classification of other receivables by nature of amount
Unit: Yuan
| Nature of payment | Book balance at the end of the period | Book balance at the beginning of the period |
| Intragroup related transaction funds | 28,300,055.06 | 13,021,127.03 |
| VAT refund | 20,264,087.02 |
| Employee loans | 4,752,275.19 | 4,589,352.52 |
| Margin, deposit | 4,273,003.64 | 4,493,457.54 |
| Others | 157,008.91 | 62,346.03 |
| Total | 37,482,342.80 | 42,430,370.14 |
2) Provision for bad debts
Unit: Yuan
| Provision for bad debts | Phase 1 | Phase 2 | Phase 3 | Total |
| Expected credit loss in the next 12 months | Expected credit loss for the entire duration (no credit impairment) | Expected credit loss for the entire duration (credit impairment occurred) | ||
| Balance as of January 1, 2021 | 1,270,723.01 | 1,270,723.01 | ||
| Balance as of January 1, 2021 in the current period | —— | —— | —— | —— |
| Accrued in current period | 308,137.08 | 308,137.08 | ||
| Balance on June 30, 2021 | 1,578,860.09 | 1,578,860.09 |
Changes in book balance with significant changes in loss reserves in current period
□ applicable √ not applicable
Disclosure by aging
Unit: Yuan
| Aging | Ending balance |
| Less than 1 year (including 1 year) | 32,783,328.33 |
| 1 to 2 years | 1,575,684.20 |
| 2 to 3 years | 1,923,094.34 |
| More than 3 years | 1,200,235.93 |
| 3 to 4 years | 1,158,123.61 |
| 4 to 5 years | 5,000.00 |
| Over 5 years | 37,112.32 |
| Total | 37,482,342.80 |
3) Provision for bad debts withdrawn, recovered or reversed in current period
Provision for bad debts in current period:
Unit: Yuan
| Category | Beginning balance | Amount changed in current period | Ending balance | |||
| Provision | Recover or reversal | Write-off | Others | |||
| Provision for bad debts | 1,270,723.01 | 308,137.08 | 1,578,860.09 | |||
| Total | 1,270,723.01 | 308,137.08 | 1,578,860.09 | |||
4) Other receivables actually written off in current period
□ applicable √ not applicable
5) Other receivables of top five ending balances grouped by debtors
Unit: Yuan
| Name of Entity | Nature of payment | Ending balance | Aging | Proportion to total ending balances of other receivables | Ending balance of provision for bad debts |
| No.1 | Intragroup related transaction funds | 19,278,092.80 | Within 1 year | 51.43% | |
| No.2 | Intragroup related transaction funds | 4,672,771.52 | Within 1 year | 12.47% | |
| No.3 | Intragroup related transaction funds | 1,835,195.55 | Within 1 year | 4.90% | |
| No.4 | Margin, deposit | 1,520,178.00 | 2~3 years | 4.06% | 456,053.40 |
| No.5 | Intragroup related transaction funds | 1,229,228.83 | Within 1 year | 3.28% | |
| Total | -- | 28,535,466.70 | -- | 76.14% | 456,053.40 |
6) Receivables involving government subsidies
□ applicable √ not applicable
7) Other receivables derecognized due to transfer of financial assets
□ applicable √ not applicable
8) Amount of assets and liabilities formed by transferring other receivables and continuing to be involved
□ applicable √ not applicable
3. Long-term equity investment
Unit: Yuan
| Items | Ending balance | Beginning balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Investment in subsidiaries | 2,424,006,676.11 | 2,424,006,676.11 | 2,194,431,703.81 | 2,194,431,703.81 | ||
| Investment in associated enterprises and joint ventures | 18,440,374.38 | 12,433,655.05 | 6,006,719.33 | 18,936,183.18 | 12,433,655.05 | 6,502,528.13 |
| Total | 2,442,447,050.49 | 12,433,655.05 | 2,430,013,395.44 | 2,213,367,886.99 | 12,433,655.05 | 2,200,934,231.94 |
(1) Investment in subsidiaries
Unit: Yuan
| Investee | Beginning balance (book value) | Changes in increase/decrease in current period | Ending balance (book value) | Ending balance of provision for impairment | |||
| Additional investment | Decrease in investment | Provision for impairment | Others | ||||
| Huizhou Topband Electrical Technology Co., Ltd. | 633,267,784.97 | 45,740,270.78 | 679,008,055.75 | ||||
| Shenzhen YAKO Automation Technology Co., Ltd. | 350,014,659.96 | 350,014,659.96 | |||||
| Chongqing Topband Industrial Co., Ltd. | 210,135,072.74 | 20,688.88 | 210,155,761.62 | ||||
| Shenzhen Allied Control System Co., Ltd. | 120,984,983.52 | 189,746.66 | 121,174,730.18 | ||||
| Topband (Qingdao) Intelligent Control Co., Ltd. | 350,044,696.18 | 59,690,246.60 | 409,734,942.78 | ||||
| TOPBAND INDIA PRIVATE LIMITED | 195,026,748.97 | 195,026,748.97 | |||||
| Shenzhen Topband Software Technology Co., Ltd. | 17,044,333.03 | 301,112.00 | 17,345,445.03 | ||||
| Shenzhen Topband Automation | 24,416,539.46 | 6,008,866.67 | 30,425,406.13 | ||||
| Technology Co., Ltd. | |||||||
| Topband (Hong Kong) Co., Ltd. | 249,076,900.00 | 64,525,000.00 | 313,601,900.00 | ||||
| Shenzhen Topband Lithium Battery Co., Ltd. | 4,417,413.65 | 95,494.05 | 4,512,907.70 | ||||
| Shenzhen Meanstone Intelligent Technology Co., Ltd. | 3,000,000.00 | 7,000,000.00 | 10,000,000.00 | ||||
| Shenzhen Topband Supply Chain Services Co., Ltd. | 5,000,000.00 | 5,000,000.00 | |||||
| Shenzhen Topband Investment Co., Ltd. | 30,002,571.33 | 10,003,546.66 | 40,006,117.99 | ||||
| Shenzhen Senxuan Technology Co., Ltd. | 2,000,000.00 | 6,000,000.00 | 8,000,000.00 | ||||
| Topband (Qingdao) Intelligent Control Co., Ltd. | 30,000,000.00 | 30,000,000.00 | |||||
| Total | 2,194,431,703.81 | 229,574,972.30 | 2,424,006,676.11 |
(2) Investment in associated enterprises and joint ventures
Unit: Yuan
| Investment unit | Beginning balance (book value) | Changes in increase/decrease in current period | Ending balance (book value) | Ending balance of provision for impairment | |||||||
| Additional investment | Decrease in investment | Profit and loss on investment recognized under equity method | Adjustment to other comprehensive income | Other changes in equity | Declaration of distribution for cash dividends or profits | Provision for impairment | Others | ||||
| I. Joint venture | |||||||||||
| II. Associates enterprises | |||||||||||
| Shenzhen Yuchengxin Power Technology Co., Ltd. | 12,433,655.05 | ||||||||||
| Shenzhen Daka Optoelectronics | 6,502,528.13 | -495,808.80 | 6,006,719.33 | ||||||||
| Co., Ltd. | |||||||||||
| Subtotal | 6,502,528.13 | -495,808.80 | 6,006,719.33 | 12,433,655.05 | |||||||
| Total | 6,502,528.13 | -495,808.80 | 6,006,719.33 | 12,433,655.05 |
(3) Other description
4. Operating income and operating cost
Unit: Yuan
| Items | Amount incurred in current period | Amount incurred in prior period | ||
| Income | Cost | Income | Cost | |
| Main business | 2,108,115,155.95 | 1,747,449,569.91 | 1,231,665,083.62 | 1,020,764,208.76 |
| Other business | 53,820,075.36 | 47,592,448.41 | 31,983,577.48 | 26,507,690.89 |
| Total | 2,161,935,231.31 | 1,795,042,018.32 | 1,263,648,661.10 | 1,047,271,899.65 |
Information related to performance obligations:
For the sales of goods to customers, the Company recognizes the income when the control of the goods istransferred, that is, when the goods are transported to the designated place of the other party, or delivered to thecarrier designated by the other party, or when they are delivered to the other party and their acceptance iscompleted. As the delivery of the goods to the customer represents the right to receive the contract considerationunconditionally, and the maturity of the payment only depends on the passage of time, the Company recognizes anamount receivable when the goods are delivered to the customer. When the customer pays the purchase price inadvance, the Company recognizes the transaction amount received as a contract liability until the goods aredelivered to the customer. The amount of income corresponding to the performance obligations that have signedcontracts but have not been performed or completed at the end of the reporting period is RMB 1.264 billion, andthe income of the above amount is expected to be recognized within one year.
5. Return on investment
Unit: Yuan
| Items | Amount incurred in current period | Amount incurred in prior period |
| Long-term equity investment revenue accounted by equity method | -495,808.80 | -144,574.55 |
| Investment revenue from disposal of trading financial assets | 24,066,351.32 | 74,522,738.91 |
| Income from bank financial products | 535,266.66 | |
| Dividend income from subsidiaries | 14,053,405.97 | 4,963,933.51 |
| Total | 37,623,948.49 | 79,877,364.53 |
XVIII. Supplementary Information
1. Schedule of current non-recurring profits and losses
√ applicable □ not applicable
Unit: Yuan
| Items | Amount | Description |
| Profits and losses on disposal of non-current assets | -465,795.21 | |
| Government subsidies recognized in the current profits and losses (except those closely related to the business of the enterprise and enjoyed in a fixed or quantitative amount according to the national uniform standard) | 6,479,445.63 | |
| Profit and loss from changes in fair value of trading financial assets, derivative financial assets, trading financial liabilities and derivative financial liabilities, and investment income from disposal of trading financial assets, derivative financial assets, trading financial liabilities, derivative financial liabilities and other creditor's rights investments, except for effective hedging business related to the normal business of the Company | 122,379,119.84 | |
| Other non-operating income and expenses other than those mentioned above | -1,672,760.04- | |
| Other profit and loss items that meet the definition of non-recurring profit and loss | 1,200,855.83 | Financing income |
| Less: amount affected by income tax | 19,200,380.11 | |
| Impact amount of minority shareholders' equity | 249,302.35 | |
| Total | 108,471,183.59 | -- |
For the items of non-recurring profit and loss defined by the Company in accordance with the definition ofExplanatory Announcement No. 1 on Information Disclosure for Companies Offering Securities to Public -Non-Recurring Profits and Losses, the reasons why the items of non-recurring profit and loss listed asnon-recurring in Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Securitiesto Public - Non-Recurring Profits and Losses to be defined as recurring profit and loss should be explained.
□ applicable √ not applicable
2. Return on equity and earnings per share
| Profit in the reporting period | Weighted average return on net assets | Earnings per share | |
| Basic earnings per share (yuan / share) | Diluted earnings per share (yuan / share) | ||
| Net income attributable to the common shareholders of the Company | 11.13% | 0.38 | 0.37 |
| Net profit attributable to the common shareholders of the Company after deduction of non-recurring profits and losses | 8.31% | 0.28 | 0.28 |
3. Differences in accounting data under domestic and foreign accounting standards
(1) Difference between the net profit and net assets in the financial reports disclosed in accordance withboth international accounting standards and Chinese accounting standards at the same time
□ applicable √ not applicable
(2) Difference between the net profit and net assets in the financial reports disclosed in accordance withboth overseas accounting standards and Chinese accounting standards at the same time
□ applicable √ not applicable
(3) Reasons for differences in accounting data under domestic and foreign accounting standards. If the dataaudited by an overseas audit institution is adjusted for differences, the name of the overseas auditinstitution shall be indicated
4. Others
□ applicable √ not applicable
Section XI Other Data Submitted
1. Other major social security problems
Do the listed company and its subsidiaries have other major social security problems
□ NA □ Yes □ No
Existing problems and rectificationWas it subject to administrative punishment during the reporting period
□ NA □ Yes □ No
Punishment items, punishment measures and rectificationII. Registration form of reception, investigation, communication, interview and otheractivities during the reporting period
√ applicable □ not applicable
| Time of reception | Location of reception | Method of reception | Type of reception object | Reception object | Main contents of interview and materials provided | Index of basic information of investigation |
| 2021/1/19 2021/1/20 2021/1/21 | Conference room of the Company | Spot investigation | Organizations | Fuguo Fund Management Co., Ltd., Zhonggeng Fund Management Co., Ltd., Shenzhen Yitong Investment Co., Ltd., Wanhe Securities Co., Ltd. and Shenzhen Capital Fortune Investment Management Co., Ltd. | Learn about the operation of the Company; no information provided. | http://www.cninfo.com.cn |
| 2021/1/26 2021/1/27 2021/1/29 | Conference room of the Company | Field and telephone survey | Organizations | HTF Fund Management Co., Ltd., Xingquan Fund Management Co., Ltd., Sinosafe Fund Management Co., Ltd., Taiping Asset Management Co., Ltd., Huabao Fund Management Co., Ltd., Guotai Asset Management Co., Ltd., Changjiang Asset Management Co., Ltd., Shanghai Panjing Investment Management Co., Ltd., Dajia Asset Management Co., Ltd., Bank of Communications Co., Ltd., New China Asset Management Co., Ltd., Guosheng Securities Co., Ltd. and Tianfeng Securities Co., Ltd. | Learn about the operation, financial situation and strategic planning of the Company; no information provided. | http://www.cninfo.com.cn |
| 2021/3/9 | Conference | Telephone | Organiz | Tianfeng Securities Co., Ltd., Great Wall Securities Co., Ltd., Zhongtai Securities Co., Ltd., Guotai Junan Securities Co., | Learn about the operation | http://www.cn |
| room of the Company | survey | ations | Ltd., China Merchants Fund Management Co., Ltd., Guohai Securities Asset Management Branch, Harvest Fund Management Co., Ltd., HSBC Jinxin Fund Management Co., Ltd., China Post & Capital Fund Management Co., Ltd., Sinowise Investment Management Co., Ltd., Zhongrong Fund Management Co., Ltd., China CICC Wealth Management Securities Co., Ltd., GTS Fund Management Co., Ltd., Yinhua Fund Management Co., Ltd., Xingquan Fund Management Co., Ltd., Southwest Securities Investment Department, Tianzhi Fund Management Co., Ltd., Tianhong Fund Management Co., Ltd., Tianfeng International Securities Co., Ltd., Taixin Fund Management Co., Ltd., Shenzhen Qianhai Prudence Investment Asset Management Co., Ltd., Shenzhen Qianhai Guhe Asset Management Co., Ltd., Shenzhen Qianhai Dengcheng Asset Management Co., Ltd., Shenzhen Hongding Wealth Management Co., Ltd., Shenzhen Gangli Investment Consulting Co., Ltd., Shenzhen Fengling Capital Management Co., Ltd., Shanghai Zhunjin Investment Management Co., Ltd., Shanghai Yuyi Asset Management Co., Ltd., Shanghai Life Insurance Co., Ltd., Shanghai Panjing Investment Management Center, Shanghai Mingyu Asset Management Co., Ltd., Shanghai Chengrui Investment Management Co., Ltd., Shandao Investment Management Co., Ltd., Sansheng Group Co., Ltd., Rongtong Fund Management Co., Ltd., Fund Management Co., Ltd., Nuode Fund Management Co., Ltd., Minsheng Royal Fund Management Co., Ltd., Junhe Capital Management Co., Ltd., Jiutai Fund Management Co., Ltd., BOCOM Schroders Fund Management Co., Ltd., Jiangsu Hengdao Capital Management Co., Ltd., Hunan Yuancheng Investment Management Co., Ltd., Hotland Innovation Asset Management Co., Ltd., Heyong Investment Management Co., Ltd., Hangzhou Lequ Investment Management Co., Ltd., Guoxin Investment Co., Ltd., SDIC UBS, Guotai Asset Management Co., Ltd., China Life AMP Asset Management Co., Ltd., Guangdong Tengrun Investment Co., Ltd., Founder Fubon Fund Management Co., Ltd., Dunhe Asset Management Co., Ltd., Dongzheng Ronghui Asset Management Co., Ltd., Soochow Asset Management Co., Ltd., Springs Capital Investment Management Co., Ltd., Dacheng Fund Management Co., Ltd., Caitong Fund Management Co., Ltd., Bohai Huijin Securities Asset Management Co., Ltd., Beixin Ruifeng Fund Management | and financial situation of the Company; no information provided. | info.com.cn |
| Co., Ltd., Beijing Yuanlesheng Asset Management Co., Ltd., Beijing Jiashu Asset Management Co., Ltd., Beijing Fengpei Investment Management Co., Ltd., Anxin Fund Management Co., Ltd., Vontobel Asset Management Asia Pacific Limited, Point Poplar Management Co., Ltd., Shenzhen Qianhai Junjie Asset Management Co., Ltd. and Tongtai Fund Management Co., Ltd. | ||||||
| 2021/3/9 | Conference room of the Company | Telephone survey | Organizations | China Securities Co., Ltd., Zhongtai Securities Co., Ltd., Anxin Fund Management Co., Ltd., Beijing Zeming Investment Co., Ltd., Fuyun investment, TruValue Asset Management Co., Ltd., Chunhou Fund Management Co., Ltd., Topsperity Securities Co., Ltd., Soochow Securities Co., Ltd., Everbright Securities Co., Ltd., Guangdong Yuancheng Private Equity Securities Investment Fund Co., Ltd., Guokai Securities, China Life AMP Asset Management Co., Ltd., Guoxin Investment, HFT Fund Management Co., Ltd., Sequoia Capital, Sinosafe Property Insurance Asset Management Co., Ltd., Harvest Fund Management Co., Ltd., BOCOM Schroeder Fund Management Co., Ltd., Mingyu Assets, ABC-CA Fund Management Co., Ltd., Lion Fund Management Co., Ltd., ABC Wealth Management, Ping An Annuity Insurance Company of China, Ltd., Ping An Asset Management Co., Ltd., Qianhai Life Insurance Co., Ltd., Rose Capital, Shanghai Tongyuan Investment Co., Ltd., Shanghai Xinlan Investment Management Co., Ltd., China International Fund Management Co., Ltd., Shenwan Hongyuan Securities Co., Ltd., Shenzhen Wangzheng Asset Management Co., Ltd., Taiping Fund Management Co., Ltd., Taixin Fund Management Co., Ltd., Tianhong Fund Management Co., Ltd., Western Leadbank Fund Management Co., Ltd., Western Securities Co., Ltd., Xingzheng Global Fund Management Co., Ltd., Sunshine Tianhong Fund, Yonghe Capital, Investment Department of Yuntong Automobile Group, Great Wall Wealth Asset Management Co., Ltd., Changjiang Endowment Insurance Co., Ltd., Changsheng Fund Management Co., Ltd., China Merchants Fund Management Co., Ltd., Zhejiang Chujiu Investment Management Co., Ltd., Zhonghai Fund Management Co., Ltd., Zhong Ou Asset Management Co., Ltd., CITIC Prudential Fund Management Co., Ltd., Bank of China Investment Management Co., Ltd. and China CITIC Bank. | Learn about the operation, financial situation and strategic planning of the Company; no information provided. | http://www.cninfo.com.cn |
| 2021/3/10 2021/3/11 | Conference room | Spot investigation | Organizations | Proxim Hong Kong Co., Ltd., Haocheng Asset Management Co., Ltd., Wanlian Securities Co., Ltd., Guosen Securities Co., Ltd., Huatai Securities Co., Ltd., ZTF Securities Co., | Learn about the operation, financial | http://www.cninfo.com.cn |
| of the Company | Ltd., Wenyuan Capital Management Co., Ltd. and Caitong Fund Management Co., Ltd. | situation and strategic planning of the Company; no information provided. | ||||
| 2021/3/15 2021/3/16 2021/3/17 2021/3/18 | Conference room of the Company | Telephone and field survey | Organizations | Mondrian Asset Management Co., Ltd., New Thinking (Hong Kong) Investment Management Co., Ltd., Zongcai Investment Management Co., Ltd., Shanghai Jiuge Investment Management Co., Ltd., Shanghai Panjing Investment Management Center, Chunhou Fund Management Co., Ltd., Anxin Securities Co., Ltd., Huachuang Securities Co., Ltd., Ruiyuan Fund Management Co., Ltd. and Industrial Securities Co., Ltd. | Learn about the operation, financial situation and strategic planning of the Company; no information provided. | http://www.cninfo.com.cn |
| 2021/4/15 | Conference room of the Company | Telephone survey | Organizations | Tianfeng Securities Co., Ltd., SDIC UBS Fund Management Co., Ltd., First State Cinda Fund Management Co., Ltd., Penghua Fund Management Co., Ltd., Zhengyi Asset Management Co., Ltd., Zhonggeng Fund Management Co., Ltd., Yinhua Fund Management Co., Ltd., Fuguo Fund Management Co., Ltd., Shanghai Xitai Investment Management Co., Ltd., Kaifeng Investment Management Co., Ltd., Shenzhen Fengling Capital Management Co., Ltd., Wangzheng Investment Management Co., Ltd., Guangdong Huayin Tianxia Fund Management Co., Ltd., Shanghai Shengyu Equity Investment Fund Management Co., Ltd., Everbright PGIM Fund Management Co., Ltd., Guangzhou Yourong Equity Investment Management Co., Ltd., Honghua Capital Management (Shenzhen) Co., Ltd., Furong Fund Management Co., Ltd., Huabao Fund Management Co., Ltd., Beijing Dingsa Investment Co., Ltd., Yihe Jiufu Investment Management Co., Ltd., ICBC Credit Suisse Fund Management Co., Ltd., Tianhong Fund Management Co., Ltd. and Jinxiu Zhonghe (Beijing) Capital Management Co., Ltd. | Learn about the operation, financial situation and strategic planning of the Company; no information provided. | http://www.cninfo.com.cn |
| 2021/4/26 2021/4/27 | Conference room of the Company | Telephone survey | Organizations | Tianfeng Securities Co., Ltd., Great Wall Securities Co., Ltd., Tianfeng Securities Asset Management Branch, Xingquan Fund Management Co., Ltd., Junhe Capital, Harvest Fund Management Co., Ltd., Fuguo Fund Management Co., Ltd., China Life Asset Management Co., Ltd., China Merchants Fund Management Co., Ltd., Huatai Securities Asset | Learn about the operation, financial situation and strategic planning of | http://www.cninfo.com.cn |
| Management Department, Ruiyuan Fund Management Co., Ltd., Shanghai Fosun High Technology (Group) Co., Ltd., Sinosafe Property Insurance Asset Management Co., Ltd., Taikang Asset Management Co., Ltd., Southern Asset Management Co., Ltd., Bank of China Investment Management Co., Ltd., Founder Fubon Fund Management Co., Ltd., Taiping Asset Management Co., Ltd., Hangzhou Guangtian Investment Management Co., Ltd., Shenzhen Fengling Capital Management Co., Ltd., GTS Fund Management Co., Ltd., Jiuyan Asset Management Co., Ltd., Shenzhen Qianhai Evolutionism Asset Management Co., Ltd., Beijing Xinhan Capital Management Co., Ltd., Hongshang Capital Equity Investment Co., Ltd., Shenzhen Hongding Wealth Management Co., Ltd., Shanghai Tuling Asset Management Co., Ltd., China Merchants Securities Asset Management Co., Ltd., Vontobel Asset Management Asia Pacific Limited, Pebble Capital Management Co., Ltd., Qianhe Capital Management Co., Ltd., Zhejiang Yingrui Investment Management Co., Ltd., Huatai Insurance Group Co., Ltd., Hangzhou Lequ Investment Management Co., Ltd., Prudential Fund Management Co., Ltd., Hengyue Fund Management Co., Ltd., Shanghai Pertrust Capital Management Co., Ltd., HFT Fund Management Co., Ltd, Yihe Jiufu Investment Management Co., Ltd., Shenzhen Xishan Capital Management Co., Ltd., Shenzhen Yitong Investment Management Co., Ltd., Hangzhou Micang Capital Management Co., Ltd., Hong Kong Innovation Fund Management Co., Ltd., Beijing Keywise Capital Management Co., Ltd., Guotai Asset Management Co., Ltd., Topsperity Securities Asset Management Co., Ltd., Hubei Zhongjing Capital Investment Development Co., Ltd., Shenzhen Qianhai Guhe Asset Management Co., Ltd., Point72, Shanghai Zhunjin Investment Management Co., Ltd., Bank of China Investment Management Co., Ltd., Minsheng Royal Fund Management Co., Ltd., Ningbo Liansheng Investment Co., Ltd., Huashang Fund Management Co., Ltd., Qingdao Yinsheng Asset Management Co., Ltd., Wealth Management Subsidiary of Agricultural Bank of China, Orient Jiafu (Ningbo) Asset Management Co., Ltd., Orient Securities Co., Ltd., Shanghai Self-Operated Branch of Guojin Securities, Shenzhen Qianhai Prudence Investment Asset Management Co., Ltd., Shenzhen Headquarters of Huaneng Guicheng Trust Co., Ltd., Rosefinch Fund Management Co., Ltd., Asset | the Company; no information provided. |
| Management Branch of Guohai Securities, Galaxy Securities Co., Ltd., Beijing Chengsheng Investment Management Co., Ltd., Shenzhen Qianhai Evolutionism Asset Management Co., Ltd., Shanghai Gaoyi Asset Management Co., Ltd., Taiping Asset Management Co., Ltd., Boyan Capital Management Co., Ltd., GTS Fund Management Co., Ltd., Beijing Xinhan Capital Management Co., Ltd., Fengrui Asset Management Co., Ltd., Beijing Fengpei Investment Management Co., Ltd., SDIC UBS Fund Management Co., Ltd., Manulife, Shenzhen Pengcheng Jishi Investment Management Co., Ltd., Shanghai Zhuoshang Asset Management Co., Ltd., Honghua Capital Management (Shenzhen) Co., Ltd., Beijing Zuoyou Investment Co., Ltd., Shenzhen Qianhai Dengcheng Asset Management Co., Ltd., PICC Asset Management Co., Ltd., CICC Asset Management Department, Hotland Innovation Asset Management Co., Ltd., TruValue Asset Management Co., Ltd., Jingtai Lifeng Asset Management Co., Ltd., ABC-CA Fund Management Co., Ltd., Beijing Carrie's Wealth Investment Management Co., Ltd., Qianhai First Seafront Fund Management Co., Ltd., Guoxin Investment Co., Ltd., Teda Dingsheng Asset Management Co., Ltd., Pengyang Fund Management Co., Ltd., Zhonghai Fund Management Co., Ltd., Shanghai Loujiang Investment Management Center, Minsheng Royal Fund Management Co., Ltd., Beijing CUFE Long Ma Capital Investment Co., Ltd., Fuanda Fund Management Co., Ltd., BlackRock Asset Management North Asia Limited, Xingyin Fund Management Co., Ltd., Anxin Fund Management Co., Ltd., Teda Manulife Fund Management Co., Ltd., Guotai Yuanxin Asset Management Co., Ltd., Sinosafe Fund Management Co., Ltd., Orient Fund Management Co., Ltd., Panjing Investment Management Co., Ltd. and Tianzhi Fund Management Co., Ltd. | ||||||
| 2021/5/11 2021/5/12 2021/5/13 | Conference room of the Company | Field and telephone survey | Organizations | BlackRock Fund Management Co., Ltd., Kaiji Securities Co., Ltd., Harvest Fund Management Co., Ltd., Rongtong Fund Management Co., Ltd., Tianhong Fund Management Co., Ltd., EFund management Co., Ltd., GTS Fund Management Co., Ltd., Zhong Ou Fund Management Co., Ltd., Dajia Asset Management Co., Ltd., Fuguo Fund Management Co., Ltd., Shanghai Fusheng Asset Management Partnership, China Securities Co., Ltd., Guokai Securities Co., Ltd., Guangdong Hongchang Private Equity Securities Investment Management Co., Ltd., Hongta Hongtu Fund Management Co., Ltd., Huabao Fund Management Co., Ltd., Huaxia | Learn about the operation, financial situation and strategic planning of the Company; no information provided. | http://www.cninfo.com.cn |
| Wealth Management Co., Ltd., CCB Principal Asset Management Co., Ltd., Penghua Fund Management Co., Ltd., Ping An Asset Management Co., Ltd., Qianhai Kaiyuan Fund Management Co., Ltd., Rixing Asset Management Co., Ltd., Zhuque Fund Management Co., Ltd., New China Asset Management Co., Ltd., First Beijing Investment Co., Ltd., Hezhong Asset Management Co., Ltd. and Highclere. | ||||||
| 2021/5/18 2021/5/19 2021/5/20 2021/5/21 | Conference room of the Company | Field and telephone survey | Organizations | BlackRock Fund Management Co., Ltd., HTF Fund Management Co., Ltd., Guosheng Securities Co., Ltd., HFT Fund Management Co., Ltd., First State Cinda Fund Management Co., Ltd., Huatai Baoxing Fund Management Co., Ltd., Shenzhen Jindou Investment Co., Ltd., Zhonghai Fund Management Co., Ltd., Shenzhen Qianhai Evolutionism Asset Management Co., Ltd., Anhui Zhongjue Investment Management Co., Ltd., Guotai Junan Securities Co., Ltd., Harvest Fund Management Co., Ltd. and Point72 Hong Kong Limited. | Learn about the operation, financial situation and strategic planning of the Company; no information provided. | http://www.cninfo.com.cn |
| 2021/6/4 | Conference room of the Company | Telephone survey | Organizations | Greenwoods Asset Management, Springs Capital (Beijing) Investment Management Co., Ltd., Harvest Fund Management Co., Ltd., Baichuan Wealth (Beijing) Investment Management Co., Ltd., Beijing Fengpei Investment Management Co., Ltd., BlackRock Institutional Trust Co., Ltd., Brilliance Capital Management Co., Ltd., Guangxi Junjing Ggarden Engineering Co., Ltd., Guangzhou Zhaoshi Investment Partnership (Limited Partnership), Guojin Fund Management Co., Ltd., Huabao Securities Co., Ltd., Huaneng Guicheng Trust Co., Ltd., Shenzhen Qianhai Huaqiang Financial Holding Co., Ltd., Huarong Securities Co., Ltd., CCB Principal Asset Management Co., Ltd., Jiangsu Ruihua Investment Management Co., Ltd., Keywise Capital Management (Tianjin) Co., Ltd., Keywise Capital Management (Hong Kong) Co., Ltd., Kunlun Health Insurance Co., Ltd., Minsheng Royal Fund Management Co., Ltd., Shanghai Luyong Asset Management Co., Ltd., Shanghai Lubao Investment Management Co., Ltd., Shanghai Shunzhu Asset Management Co., Ltd., Shanghai Tongyuan Investment Development Co., Ltd., Shanghai Yinye Investment Co., Ltd., Shanghai Yuanhao Investment Management Co., Ltd., Shanghai Zhengxingu Investment Management Co., Ltd., Shanghai Chongyang Strategic Investment Co., Ltd., Shanghai Zhuoshang Asset Management Co., Ltd., Shenzhen Jinguang Asset Management Co., Ltd., Shenzhen Lianxi Yongshi Asset Management Co., Ltd., Shenzhen Lingji Capital Management |
| Co., Ltd., Shenzhen Mingda Asset Management Co., Ltd., Shenzhen Mingji Investment Management Co., Ltd., Shenzhen Ruisibo Investment Management Co., Ltd., Taiping Asset Management Co., Ltd., Taixin Fund Management Co., Ltd., New China Pension Co., Ltd., New Idea Investment Co., Ltd., Xinghua Fund Management Co., Ltd., Industrial Securities Co., Ltd., AIA Life Insurance Co., Ltd., Yuanda Securities Investment Trust Co., Ltd., CMB International Finance Co., Ltd., Zheshang Fund Management Co., Ltd., PICC Asset Management Co., Ltd., China Life Asset Management Co., Ltd., CITIC CLSA Securities Co., Ltd., BOC International Securities Co., Ltd., Zhuhai Hengqin Yuexin Asset Management Co., Ltd. and CITIC Securities Co., Ltd. | ||||||
| 2021/6/8 2021/6/9 | Conference room of the Company | Field and telephone survey | Organizations | Southern Asset Management Co., Ltd., Huachuang Securities Co., Ltd., HFT Fund Management Co., Ltd., Springs Capital (Beijing) Investment Management Co., Ltd., Manulife Asset Management Hong Kong Co., Ltd., Sinosafe Property Insurance Co., Ltd., Fuguo Fund Management Co., Ltd., Shenzhen Kaifeng Investment Management Co., Ltd., CITIC Prudential Life Insurance Co., Ltd., Maxwealth Fund Management Co., Ltd., Everbright Securities Co., Ltd., CPIC Fund Management Co., Ltd., Manulife Asset Management (Thailand) Co,Ltd, Point72 Asset Management, Ruiyuan Fund Management Co., Ltd., Founder Fubon Fund Management Co., Ltd., Taiping Fund Management Co., Ltd., Qunyi Securities Investment Trust Co., Ltd., Nuode Fund Management Co., Ltd., Taikang Asset Management Co., Ltd., Shanghai Fosun High Technology (Group) Co., Ltd., Tianchong Capital Management Co., Ltd. and Fuanda Fund Management Co., Ltd. | Learn about the operation, financial situation and strategic planning of the Company; no information provided. | http://www.cninfo.com.cn |
| 2021/6/24 2021/6/25 | Conference room of the Company | Telephone survey | Organizations | CITIC Asset Management Co., Ltd., Anhui Conch Venture Capital Co., Ltd., Anhui Mingze Investment Management Co., Ltd., Baoer Taiping Co., Ltd., PKU Founder Life Asset Management Center, Beijing Fengpei Investment Management Co., Ltd., Beijing Hongcheng Investment Management Co., Ltd., Beijing Xingshi Investment Management Co., Ltd., Caitong Securities Asset Management Co., Ltd., Dajia Asset Management Co., Ltd., Topsperity Securities Co., Ltd., Northeast Securities Co., Ltd., Oriental Alpha Fund Management Co., Ltd., Orient Fund Management Co., Ltd., Orient Securities Co., Ltd., ICBC Credit Suisse Fund Management Co., Ltd., Everbright PGIM Fund Management Co., Ltd., Everbright Securities Asset | Learn about the operation, financial situation and strategic planning of the Company; no information provided. | http://www.cninfo.com.cn |
III. Capital transactions between listed companies and controlling shareholders and theirrelated parties
□ applicable √ not applicable
Shenzhen Topband Co., Ltd.
Aug 20, 2021