2023 Full Annual Report
Hangzhou ROBAM Appliances Co., Ltd.
2023 Annual Report
April 2024
2023 Full Annual Report
2023 Annual Report
Section 1 Important Notes, Contents and Definitions
The board of directors, the board of supervisors and directors, supervisors and seniormanagement of the Company hereby guarantee that no false or misleading statement ormajor omission was made to the materials in this annual report and that they will assumeall the responsibility, individually and jointly, for the authenticity, accuracy andcompleteness of the contents of the annual report.Ren Jianhua, the head of the Company, Zhang Guofu, the head of accounting work, andZhang Guofu, the head of accounting body (accountant in charge), guarantee theauthenticity, accuracy and completeness of the financial report in the annual report.All directors of the Company personally attended the board meeting for reviewing thisreport.The Company has risks such as policy fluctuations in the real estate market, pricefluctuations of raw materials and intensifying market competition. Please pay attention tothe investment risks.The preplanned profit distribution deliberated and approved by the board of directors:
taking 944,094,916 shares as the radix (the existing total share capital of 949,024,050 shares,excluding 4,929,134 shares repurchased), the Company will send cash dividends of RMB 5(tax inclusive) and 0 bonus share (tax inclusive) to all shareholders for every 10 shares, andinstead of converting capital reserve into share capital.
2023 Full Annual Report
Contents
Section 1 Important Notes, Contents and Definitions ...... 2
Section 2 Company Profile and Major Financial Indicators ...... 6
Section 3 Management Discussion and Analysis ...... 10
Section 4 Corporate Governance ...... 22
Section 5 Environmental and Social Responsibility ...... 39
Section 6 Important Matters ...... 40
Section 7 Changes in Shares and Shareholders ...... 45
Section 8 Information Related to Preferred Shares ...... 50
Section 9 Bond-related Information ...... 51
Section 10 Financial Report ...... 52
2023 Full Annual Report
Directory of documents available for inspectionI. Financial statements containing signatures of the legal representative, the head of accounting work, and the head of accountingbody with seals.II. Original audit report stamped by ShineWing Certified Public Accountants (Special general partnership) and signed and stampedwith the certified public accountants.III. Original copies of the documents and announcement of the Company published on the newspaper designated by the CSRC inthe reporting period.IV. 2023 annual report of the Company signed by the legal representative.V. Other relevant information.
2023 Full Annual Report
Definitions
| Terms | Refers to | Definition |
The Company, company, RobamAppliances
| The Company, company, Robam Appliances | Refers to | Hangzhou ROBAM Appliances Co., Ltd. |
Mingqi
| Mingqi | Refers to | Hangzhou Mingqi Electric Co., Ltd. |
Kinde Intelligent
| Kinde Intelligent | Refers to | Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. |
Jinhe Electric Appliances
| Jinhe Electric Appliances | Refers to | Hangzhou Jinhe Electric Appliances Co., Ltd |
ROBAM Group
| ROBAM Group | Refers to | Hangzhou Robam Industrial Group Co., Ltd., controlling shareholder of the Company |
Reporting period
| Reporting period | Refers to | Year 2023 |
AVC
| AVC | Refers to | Beijing All View Cloud Data Technology Co., Ltd. |
2023 Full Annual Report
Section 2 Company Profile and Major Financial Indicators
I. Company Information
| Stock abbreviation | ROBAM | Stock code | 002508 |
Stock exchange for stock listing
| Stock exchange for stock listing | Shenzhen Stock Exchange |
Company name in Chinese
| Company name in Chinese | Hangzhou ROBAM Appliances Co., Ltd. |
Company short name inChinese
| Company short name in Chinese | ROBAM |
Company name in foreignlanguage (if any)
| Company name in foreign language (if any) | HANGZHOU ROBAM APPLIANCES CO.,LTD. |
Company short name in English(if any)
| Company short name in English (if any) | ROBAM |
Legal representative of theCompany
| Legal representative of the Company | Ren Jianhua |
Registered address
| Registered address | No. 592 Linping Av., Yuhang Economic Development Zone, Yuhang District, Hangzhou City, Zhejiang Province |
Postal code of the registeredaddress
| Postal code of the registered address | 311100 |
Historical changes of theCompany's registered address
| Historical changes of the Company's registered address | N/A |
Office address
| Office address | No. 592 Linping Av., Linping District, Hangzhou, China |
Postal code of the officeaddress
| Postal code of the office address | 311100 |
Company website
| Company website | www.robam.com |
| robam@robam.com |
II. Contact Person and Contact Information
| Secretary to the board of directors | Securities affairs representative |
Name
| Name | Wang Gang |
Contact address:
| Contact address: | No. 592 Linping Av., Linping District, Hangzhou, China |
Tel
| Tel | 0571-86187810 |
Fax
| Fax | 0571-86187769 |
| wg@robam.com |
III. Information Disclosure and Keeping Place
| The website(s) of the stock exchange where the Company discloses the annual report | Securities Times, China Securities Journal, Securities Daily, Shanghai Securities News |
The name and website of the media where the Company disclosesthe annual report
| The name and website of the media where the Company discloses the annual report | http://www.cninfo.com.cn |
Place of preparation of the Company's annual report
| Place of preparation of the Company's annual report | Board office |
IV. Registration Changes
| Uniform social credit code | 91330000725252053F |
Changes in main business since the Company's listing (if any)
| Changes in main business since the Company's listing (if any) | N/A |
Changes of controlling shareholders (if any)
| Changes of controlling shareholders (if any) | N/A |
V. Other Relevant Information
Accounting firm engaged by the Company
| Name of the accounting firm | Shinewing Certified Public Accountants (special general partnership) |
Office address of the accounting firm
| Office address of the accounting firm | 9/F, Block A, Fuhua Mansion, No.8 Chaoyangmen North Street, Dongcheng District, Beijing |
2023 Full Annual Report
| Name of signatory accountant | Lei Yongxin, Wang Qing |
The sponsor institution engaged by the Company to perform the continuous supervision responsibility during the reporting period
□ Applicable ? Not applicable
The financial advisor engaged by the Company to perform the continuous supervision responsibility during the reporting period
□ Applicable ? Not applicable
VI. Major Accounting Data and Financial Indicators
Whether the Company needs to retroactively adjust or restate the accounting data of the previous years
□ Yes ?No
| 2023 | 2022 | Increase/decrease in this year as compared to the previous year | 2021 |
Operating income (yuan)
| Operating income (yuan) | 11,201,895,774.27 | 10,271,500,571.04 | 9.06% | 10,147,706,035.35 |
Net profits attributable toshareholders of listedcompanies (yuan)
| Net profits attributable to shareholders of listed companies (yuan) | 1,732,789,332.13 | 1,572,404,918.21 | 10.20% | 1,331,712,059.03 |
Net profits attributable toshareholders of the listedcompany after deductionof non-recurring profitsand losses (yuan)
| Net profits attributable to shareholders of the listed company after deduction of non-recurring profits and losses (yuan) | 1,583,568,042.64 | 1,479,102,088.00 | 7.06% | 1,276,853,316.64 |
Net cash flow fromoperating activities(yuan)
| Net cash flow from operating activities (yuan) | 2,391,921,812.71 | 1,944,786,304.02 | 22.99% | 1,365,377,219.33 |
Basic EPS (yuan/share)
| Basic EPS (yuan/share) | 1.83 | 1.67 | 9.58% | 1.41 |
Diluted EPS(yuan/share)
| Diluted EPS (yuan/share) | 1.83 | 1.67 | 9.58% | 1.41 |
Weighted average returnon net assets
| Weighted average return on net assets | 16.78% | 17.21% | Decreased by 0.43% | 15.78% |
| End of 2023 | End of 2022 | Increase/decrease at the end of this year as compared to the end of the previous year | End of 2021 |
Total assets (yuan)
| Total assets (yuan) | 16,779,531,315.72 | 15,039,825,287.53 | 11.57% | 13,906,035,181.12 |
Net assets attributable toshareholders of listedcompanies (yuan)
| Net assets attributable to shareholders of listed companies (yuan) | 10,522,938,731.68 | 9,732,463,766.91 | 8.12% | 8,627,026,739.27 |
The lower net profit of the Company before and after deducting non-recurring profit and loss in the last three fiscal years isnegative, and the audit report of the latest year shows that the Company's ability to continue as a going concern is uncertain
□ Yes ?No
The lower net profit before and after deducting non-recurring profit and loss is negative
□ Yes ?No
VII. Differences in Accounting Data under Domestic and Foreign Accounting Standards
1. Differences between net profits and net assets in financial statements disclosed according to the
International Accounting Standards (IAS) and Chinese Accounting Standards simultaneously
□ Applicable ? Not applicable
No difference between net profits and net assets in financial statements disclosed according to the International AccountingStandards (IAS) and Chinese Accounting Standards during the reporting period.
2023 Full Annual Report
2. Differences between net profits and net assets in financial statements disclosed according to theOverseas Accounting Standards and Chinese Accounting Standards simultaneously
□ Applicable ? Not applicable
No difference between net profits and net assets in financial statements disclosed according to the Overseas Accounting Standardsand Chinese Accounting Standards during the reporting period.VIII. Key Quarterly Financial Indicators
Unit: yuan
| Q1 | Q2 | Q3 | Q4 |
Operating income
| Operating income | 2,177,271,694.59 | 2,757,598,105.56 | 2,998,449,763.72 | 3,268,576,210.40 |
Net profits attributable toshareholders of listedcompanies
| Net profits attributable to shareholders of listed companies | 388,734,141.35 | 440,984,209.34 | 543,262,685.56 | 359,808,295.88 |
Net profits attributable toshareholders of the listedcompany after deductionof non-recurring profitsand losses
| Net profits attributable to shareholders of the listed company after deduction of non-recurring profits and losses | 341,448,848.17 | 405,243,129.21 | 536,650,325.69 | 300,225,739.57 |
Net cash flow fromoperating activities
| Net cash flow from operating activities | 181,762,454.94 | 777,970,398.29 | 434,844,723.63 | 997,344,235.85 |
Whether there is significant difference between the above financial indicators or the total sum of them and the financial indicatorsrelated to the quarterly report and semiannual report disclosed by the Company
□ Yes ?No
IX. Non-recurring Profit and Loss Items and Amount? Applicable □ Not applicable
Unit: yuan
| Item | Amount in 2023 | Amount in 2022 | Amount in 2021 | Description |
Profits and losses on the disposal of non-currentassets (including the write-off of the provisionfor asset impairment)
| Profits and losses on the disposal of non-current assets (including the write-off of the provision for asset impairment) | -1,212,528.65 | 113,456.26 | -2,290,187.24 |
Government subsidies included into currentprofits and losses (except those governmentsubsidies that are closely related to normalbusiness of the Company, comply with nationalpolicies and regulations, enjoyed according todefined criteria, and have an ongoing impact onthe Company's profit or loss)
| Government subsidies included into current profits and losses (except those government subsidies that are closely related to normal business of the Company, comply with national policies and regulations, enjoyed according to defined criteria, and have an ongoing impact on the Company's profit or loss) | 82,547,062.16 | 101,963,275.49 | 65,893,969.94 |
Reversal of impairment provision for receivablessubject to separate impairment test
| Reversal of impairment provision for receivables subject to separate impairment test | 98,986,397.46 | 24,667,546.54 | 1,034,992.00 |
Income and expenditure other than thosementioned above
| Income and expenditure other than those mentioned above | -1,838,686.70 | -2,044,818.28 | -2,306,626.52 |
Minus: Amount affected by income tax
| Minus: Amount affected by income tax | 27,437,027.69 | 26,789,339.27 | 6,738,387.65 |
Amount of minority shareholders' equityaffected (after tax)
| Amount of minority shareholders' equity affected (after tax) | 1,823,927.09 | 4,607,290.53 | 735,018.14 |
Total
| Total | 149,221,289.49 | 93,302,830.21 | 54,858,742.39 | -- |
Details of other profit and loss items that meet the definition of non-recurring profit and loss:
□ Applicable ? Not applicable
The Company does not have any other profit and loss items that meet the definition of non-recurring profit and loss.Description of recurring profit and loss items
2023 Full Annual Report
? Applicable □ Not applicable
| Item | Amount involved (yuan) | Cause |
VAT exemption or reduction or refund
| VAT exemption or reduction or refund | 90,681,056.87 | National tax policies, recurring business |
Individual income tax service chargerefund
| Individual income tax service charge refund | 684,354.91 | National tax policies, recurring business |
2023 Full Annual Report
Section 3 Management Discussion and AnalysisI. Industry Situation of the Company During the Reporting Period
In 2023, the kitchen appliance industry experienced a recovery after five years of consecutive decline. The demand for updatingkitchen appliances began to be gradually released, and the overall sales of the industry improved, but we could see that he strongwill be strong forever. According to the retail data released by All View Cloud (AVC), the retail sales of kitchen and bathroomappliances (such as range hoods, gas hobs, electric water heaters, gas water heaters, sterilizer cabinets, dishwashers, built-inappliances, water purifiers, and integrated stoves) in 2023 amounted to RMB 166.9 billion, representing a year-on-year increase of
5.3%. Among them, the total sales of rigid demand categories (range hoods, gas hobs, electric water heaters, gas water heaters)was RMB 99.8 billion, representing a year-on-year increase of 6.5%; the total sales of the categories with a demand for quality(sterilizer cabinets, dishwashers, built-in appliances, water purifiers) was RMB 42.3 billion, representing a year-on-year increaseof 8.6%; the total sales of integrated stoves was RMB 24.9 billion, representing a year-on-year decrease of 4.0%.Accompanied by consumer grading, the kitchen appliance industry in China is experiencing a new stage of development, and thetransformation of kitchen life centered on health, wholeness and intelligence is constantly speeding up. Consumers pursueproducts with powerful functions and comfortable experience, and their demand for health and aesthetics acts as a productinnovation driving factor. The kitchen appliance industry will develop in an intelligent and integrated way. With the continuousdevelopment of Internet of Things, artificial intelligence and other technologies, kitchen appliance products will become moreintellect, and integrated design will also improve kitchen space utilization and product aesthetics. In addition, environmentalprotection and energy saving are also the future development priorities of the kitchen appliance product industry. With theincreasing global environmental awareness, more attention to sustainable development will be paid in the design of kitchenappliance products. As the concentration of brands in the industry continues to improve, consumers are increasingly trusting inwell-known brands. At the same time, with the expansion of market scale and the intensification of competition, there will be moreopportunities and challenges in the kitchen appliance industry in the future.According to the National Economic and Social Development Statistics Bulletin 2023 issued by the National Bureau of Statistics,at the end of 2023, the urbanization rate of the permanent population in China was 66.2%, representing an increase of 0.98% overthe end of the previous year. Compared to the urbanization rate of over 80% in developed countries, there is a broad developmentprospect for the kitchen appliance industry. The urbanization in China is developing in the middle stage, and is developing towardsthe goal of high-quality. In 2023, the demand for upgrading was increasing, and the trend of upgrading kitchen appliancecategories in China will continue.
II. Main Business of the Company during Reporting Period
Dedicated to creating a new quality kitchen for millions of families, the Company takes foot in the kitchen field and focuses on thedevelopment, production, sales and comprehensive services of kitchen appliances, including range hoods, gas hobs, dishwashers,steam oven-oven and integrated stoves, etc., and it is committed to creating a more "convenient, healthy and interesting" kitchenlife for millions of families. After 45 years of development and growth, the Company has become the manufacturer with thelongest history, the highest market share and the largest production capacity in the Chinese kitchen appliance industry.According to product attributes and cooking methods, the Company's products are mainly divided into three categories. The firstcategory refers to the product group represented by range hoods. The second category refers to the electrified cooking productgroup represented by steam oven-oven, steamer and oven. The third category refers to the water kitchen appliance product grouprepresented by dishwashers, gas water heater and water purifier. In addition, it also includes integrated product groups representedby integrated stoves and integrated range hoods, etc., as well as refrigerators and other categories, providing consumers with a fullset of kitchen appliance solutions.The channel layout of the Company is complete, forming three major channels focusing on offline retail, online e-commerce andrefined decoration engineering, as well as overseas channels.
1) Offline retail channels: mainly based on the national agent model of ROBAM, with the main channels divided into specialty
stores (agent specialty stores, Red Star Macalline, Easyhome, etc.), KA (Suning, Five Star and local chain channels), homedecoration channels (home decoration companies and gas companies), customization channel (whole house customizationcompanies) and sinking channels (JD specialty stores, Tmall Youpin, Suning Retail Cloud etc.).
2) Online e-commerce channels: mainly directly operated by the Company's e-commerce department. The main channelsinclude online platforms such as JD, Tmall and Douyin, as well as other media platforms (new media social networking,official website, private domain, TV shopping, etc.).
3) Refined decoration engineering channels: central enterprises and state-owned enterprises (national real estate enterprises
with state-owned assets background), strategic consumers (well-managed national private real estate enterprises) andregional engineering customers (mainly local urban investment and urban construction units at present).
4) Overseas channels: North America, Oceania, Malaysia, Thailand and ASEAN region.
III. Analysis of Core CompetitivenessNo significant change in the Company's core competitiveness during the reporting period: The Company's core competitiveness is
2023 Full Annual Report
mainly reflected in the high-end positioned the brand capacity, continuous innovative research and development capacity,comprehensive and efficient operation capacity.
1. Brand capability of high-end positioning
Founded in 1988, the ROBAM continues to deepen the positioning of "big suction" and create high-end brand experience. "Bigsuction" has become the synonym of "high-end range hood", and the ROBAM has become one of the most famous and favoriteprofessional high-end kitchen appliance brands in China. Since 1991, ROBAM range hood has won the only "Quality SilverAward of the People's Republic of China", "China Famous-brand Product", "National Inspection-free Product" in the kitchenappliance industry; ROBAM has been recognized as "China Famous Brand"; ROBAM has won "Most Influential Brand in China'sKitchen Appliance Industry" and "China's 500 Most Valuable Brands". In addition, ROBAM Appliances has been rated as one ofthe "BrandZ Top 100 Most Valuable Chinese Brands" for 7 consecutive years, and awarded the "Top 500 Asian Brands" for 15consecutive years. In 2018, ROBAM Appliances put forward a new brand concept, that is, to "Creating China's new kitchen."ROBAM Appliances became the CCTV's leading national brand in the world and won the 2019-2020 High-end Brand Awardfrom China National Household Electric Appliances Commercial Association. ROBAM range hoods and built-in gas hobs haveled the global sales for 9 consecutive years, and large kitchen appliances for cooking have led the global sales for 3 consecutiveyears.
2. R&D capability of continuous innovation
The Company adheres to the principle of "product leading" and constantly pursues "technology leading". The Company now has anational enterprise technology center, a national industrial design center, acting as a national intellectual property advantageenterprise and a model enterprise, and has set up California Innovation Research Institute, Shenzhen Innovation Research Instituteand workstation for academicians from Tsinghua University. With industry-leading national industry designs, intelligentmanufacturing technology and superior product quality, ROBAM Appliances has already evolved into a market leader, an industrystandard advocate, and a CSR forerunner. In 2023, the Company won the first, second and third prizes of Science and TechnologyProgress Award by China National Light Industry Council, the honor of advanced collective in standardization work in 2021-2022,the China Patent Award for Excellent Appearance awarded by China National Intellectual Property Administration, the Award forInnovation Achievement of Household Appliances by China Household Electrical Appliances Association, and the second prize ofQuality Project Award by China Association for Quality. At the same time, it has been standing at the industry leading level inR&D team, R&D patents, standard formulation and other aspects. Since 2008, ROBAM Appliances has won more than 80 productdesign awards, including authoritative awards at home and abroad, such as Germany IF, Germany Red Dot, and China Red Star,leading the trend of kitchen appliance product design. The Company has authorized a total of 4,484 patents, covering all majorcategories of kitchen ecology supporting easy cooking with superb technologies.
3. Comprehensive and efficient operation capability
The Company has the leading marketing capability in the industry: by adopting the only agency marketing mode in the industry,the Company has created the most comprehensive, efficient and responsive marketing system in the industry through strongmanagement and control, equity incentive and the de facto business partner system. The Company deepens intelligentmanufacturing and refined operation. It was awarded the "National Top 100 Quality Inspection Integrity Benchmark" and"National Excellent Quality and Excellent Credit Enterprise" in 2020. The Company focuses on global manufacturing and strivesto become a first-class manufacturing benchmark in China. In 2021, it listed in the first batch of enterprises that were awarded the"Future Factory" medals by the Economy and Information Technology Department of Zhejiang. In addition, the Companyaccelerates the integration of digitization and informatization, focuses on the interactive innovation and continuous optimization ofdata, technology, business process and organizational structure, constantly improves new capabilities in the informatizationenvironment, and improves the sustainable competitiveness in domestic and foreign markets. At the same time, the Company isalso a provincial industrial Internet platform and has become one of the first batch of "Kunpeng" enterprises in Hangzhou.
IV. Main Business Analysis
1. Overview
In 2023, with the market environment gradually getting back on track, household consumption gradually recovered, but therecovery speed of home appliance market lagged behind the overall consumption. Due to the fact that the real estate market is stillin the process of clearing, and that the kitchen appliance products market in China has not fully entered the stock market, thekitchen appliance products market has achieved a slight growth. In terms of retail channel, according to the monthly report onoffline retail market monitoring of All View (hereinafter referred to as "All View Offline Report"), the retail sales of maincategories of kitchen appliances, such as range hoods and gas hobs, decreased by 6.1% and 4.5% respectively as compared to thesame period of last year. In terms of e-commerce channel, according to the monthly report on online retail market monitoring ofAll View (hereinafter referred to as "All View Online Report"), the online retail sales of kitchen appliance products increased by
5.9 % as compared to the same period of last year. In terms of engineering channel, according to the monitoring data of All ViewCloud (AVC), there were 1,524 projects of kitchen appliances in the fine decoration market as a whole (range hoods, gas hobs,sterilizers, dishwashers, single-function machines and all-in-one machines), representing a year-on-year decrease of 21.2%, andthe market scale was 2,531,500 sets, representing a year-on-year decrease of 32.9%.As the industry leader, the Company closely focused on the annual business philosophy of "building dreams and traveling far,innovating and reforming for success", to make the market share of various categories stay ahead in the industry, and the market
2023 Full Annual Report
concentration increasing. According to All View Online Report, the retail sales market share of the ROBAM kitchen appliancepackage was 31.5%, increasing by 1.00% as compared to the same period of last year. According to All View Offline Report, theretail sales market share of ROBAM's range hoods, gas hobs and built-in dishwasher were 31.0%, 30.0% and 19.6% respectively,staying ahead in the industry. In the face of severe external environment, the Company achieved an annual operating income ofRMB 11.202 billion, representing a year-on-year increase of 9.06%. The net profit attributable to shareholders of listed companieswas RMB 1.733 billion, representing a year-on-year increase of 10.20%, which were significantly superior to the average level ofthe industry.As of December 31, 2023, according to the All View offline report, the market share and market position of the offline retail salesof Company's major product categories are shown in the following table:
| Range hood | Gas hobs | Built-in steam oven-oven | Built-in dishwasher | Built-in electric oven | Built-in electrical steam oven | Sterilizer cabinet |
30.97%
| 30.97% | 30.02% | 31.45% | 19.59% | 27.52% | 26.81% | 19.99% |
| 1 | 1 | 1 | 2 | 2 | 2 | 2 |
As of December 31, 2023, according to the All View online report, the market share and market position of the online retail salesof Company's major product categories are shown in the following table:
| Range hood and gas hob packages | Kitchen appliance packages | Range hood | Gas hobs | Built-in steam oven-oven | Built-in electrical steam oven | Built-in dishwasher |
32.86%
| 32.86% | 31.47% | 17.95% | 12.44% | 15.06% | 17.58% | 8.66% |
| 1 | 1 | 1 | 3 | 3 | 3 | 5 |
As of December 31, 2023, according to the All View Cloud (AVC) Real Estate Report, the market share of ROBAM in refineddecoration channel was 31.9%, ranking first in the industry.In 2023, the technology sector continued to focus on product innovation, technology innovation and management innovation. Interms of product innovation, the Company developed 263 new products and completed the development of 163 projects. At theend of the reporting period, the Company had 4,484 valid patents, including 161 invention patents; In 2023, it applied for 1,530patents, including 617 invention patents. In terms of technology innovation, the Company realized voice control, voiceprintrecognition and multi dialect recognition in all product categories, and realized an increase of the satisfaction of user commands by8%. The Company completed IoT platform construction, supporting the long connection of hundreds of millions of devices, andthe fastest App communication speed increased by 300%, meeting users' requirements for daily online needs and theresponsiveness during peak hours. It upgraded image and AI algorithms and applied them to the recognition of ingredients andcooking maturity, achieving a breakthrough application in all-in-one machine products. In terms of management innovation, theCompany set up the Digital Kitchen Appliance Research Institute to rapidly iterate the organizational structure and realize thedual-wheel drive of traditional kitchen appliances and digital kitchen appliances. During the reporting period, the Company led theformulation of 12 industry standards, including 1 international proposal, 1 national standard, 1 industry standard and 9 groupstandards. It also participated in the formulation of 18 standards, including 7 national standards, 2 industrial standards and 9 groupstandards.In 2023, the marketing sector focused on "cooking, reconstructing the future of the enterprise", becoming a provider of overallsolutions for the entire cooking link, comprehensively promoting the great transformation from the view point of users andreformation from the view point of sales on the basis of meeting user demands and growth requirements. In terms of retailchannels, the Company adhered to the high-end positioning of the brand, continuously optimized the layout of stores, increased theproportion of larger stores, and achieved remarkable results in the construction of high-end brands; expanded penetration into thelow-end market and completed the sampling of thousands of booths and thousands of stores; made its effort from the view point ofusers to consistently improve performance of the specialty stores. In terms of e-commerce channels, the Company strengthenedbrand positioning, made new and old media work together, efficiently tapped traffic value and revitalized the potential of stockmarket. In terms of engineering channels, the Company optimized customer structure and strengthened risk managementawareness, kept the market advantage of old categories, and stimulated the improvement of permeability of new categories. Interms of overseas channels, the Company accelerated the market layout in North America, Australia and Southeast Asia, and theopening of the largest overseas flagship exhibition hall, i.e., the flagship exhibition hall in Gold Coast, Australia, and the firstflagship store in Southeast Asia; accelerated the mode transformation, established the Hong Kong subsidiary, and activelypromoted the transformation of overseas markets to "localized" operations; upgraded the Australian brand strategy, and establishedthe agency engineering company to enter the local engineering market.In 2023, under the guidance of the Company's three-year strategy, the production sector took "making all efforts, and focusing oninnovation and change" as the core, focused on users and resources, constantly evolving and innovating, and realizing businessfission and upgrading. The Company made every effort to meet marketing and market demand, and strove to become one of themanufacturing benchmarks with the strongest comprehensive competitiveness in China manufacturing industry. It deepened thecomprehensive cost management system, built refined cost management ability, realized the evolution of whole-link organizationmanagement thinking, and established a reasonable analysis model of all elements such as procurement, manufacturing, logisticsand quality to provide a basis for scientific cost decision-making; Identified the core factors affecting cost to realize a scientificcost control.
2023 Full Annual Report
In 2023, the brand sector adhered to the high-end positioning and showed the new charm of technological kitchens. It built theworld's first global culinary arts center with a scale of more than 8,000 square meters, which is based on an internationalperspective, links the past and the future, and spread China's culinary culture to the world through four dimensions of physicalsensation and emotion, inheritance and innovation, science and humanity, China and the world; held the first China KitchenEcology Summit, put forward the new idea of "reconstructing the whole cooking link" ushering in the new positioning of thecorporate brand as "a solution provider of the whole cooking chain"; With the help of popular spokesperson Wang YiBo, the brandbecame more rejuvenated and was known outside of fixed circle, and the brand awareness was effectively improved; made acontribution to the Green Asian Games with science and technology, and combined international sports events with high-endbrand of kitchen appliances, to comprehensively help the brand to be a high-end and international brand. In addition, the Companytook "new pragmatism" as the new positioning of famous brands, made a significant impact and debuted in the industry throughthe ecological conference. After years of brand operation, it has formed a diversified brand matrix with ultra-high-end Dize, high-end ROBAM, practical Mingqi, young DACHOO and dedicated Kinde.In 2023, the Company strengthened the brand positioning of new pragmatism kitchen appliances of Mingqi, realizing thecomplementary positioning with the brand of ROBAM, and meeting the needs of consumers at more levels. In 2023, the Companyfocused on e-commerce and fully integrate sinking channels; Reconstruct the existing channels of Mingqi, and vigorously layoutspecialty stores through channel efficiency reform to achieve high-quality and rapid development.In 2023, the Company continued to be recognized by the capital market in terms of corporate governance, information disclosureand shareholder return. It was awarded level A (Excellent) in the 2022 Annual Information Disclosure Assessment of listedcompanies in Shenzhen Stock Exchange, and has won this award for ten consecutive years. Its MSCI ESG rating was grade BBB,ranking high among global peer (household durable goods) companies. In 2023, the Company adopted an annual special dividendplan to realize a high-frequency dividend plan of two dividends each year.The company has gradually built a normalized long-term incentive mechanism for employees, and launched the 2023 Stock OptionIncentive Plan in 2023, with the intention of providing stock option incentives for the Company's middle-level core business andtechnical backbones, so as to stabilize the constitution of cadres and consolidate the Company's long-term development foundation.At the same time, the Company has been adhering to standard operation, focusing on the culinary field, adhering to the valueinvestment concept, so as to promote continuous high-quality development of the Company.
2. Revenue and Costs
(1) Operating income composition
Unit: yuan
| 2023 | 2022 | Year-on-year increase / decrease | |||
| Amount | Proportion in operating income | Amount | Proportion in operating income | ||
Total operatingincome
| Total operating income | 11,201,895,774.27 | 100% | 10,271,500,571.04 | 100% | 9.06% |
By industry
By industryHome and kitchen &bath appliances
| Home and kitchen & bath appliances | 10,897,226,245.68 | 97.28% | 9,981,652,062.48 | 97.18% | 9.17% |
Other businessincome
| Other business income | 304,669,528.59 | 2.72% | 289,848,508.56 | 2.82% | 5.11% |
By product
By productFirst category group
| First category group |
Including: Rangehood
| Including: Range hood | 5,321,818,112.20 | 47.51% | 4,832,350,321.78 | 47.05% | 10.13% |
Gas hobs
| Gas hobs | 2,671,006,229.35 | 23.84% | 2,456,953,764.20 | 23.92% | 8.71% |
Sterilizer cabinet
| Sterilizer cabinet | 469,017,537.92 | 4.19% | 477,168,426.61 | 4.65% | -1.71% |
Second categorygroup:
| Second category group: |
Including: Steamoven-oven
| Including: Steam oven-oven | 687,442,329.04 | 6.14% | 739,678,668.33 | 7.20% | -7.06% |
Steamer
| Steamer | 67,504,610.84 | 0.60% | 99,986,752.60 | 0.97% | -32.49% |
Oven
| Oven | 72,428,048.34 | 0.65% | 82,492,751.09 | 0.80% | -12.20% |
Third categorygroup
| Third category group |
Including:
Dishwasher
| Including: Dishwasher | 759,704,720.62 | 6.78% | 593,794,747.49 | 5.78% | 27.94% |
Water purifier
| Water purifier | 40,342,365.31 | 0.36% | 54,081,866.41 | 0.53% | -25.41% |
Water heaters
| Water heaters | 233,127,380.39 | 2.08% | 192,404,223.01 | 1.87% | 21.17% |
2023 Full Annual Report
| Integrated stove | 464,053,178.10 | 4.14% | 384,843,160.10 | 3.75% | 20.58% |
Other small homeappliances
| Other small home appliances | 110,781,733.57 | 0.99% | 67,897,380.86 | 0.66% | 63.16% |
Other businessincome
| Other business income | 304,669,528.59 | 2.72% | 289,848,508.56 | 2.82% | 5.11% |
By region
By regionEast China
| East China | 5,710,688,604.56 | 50.98% | 5,264,129,155.10 | 51.25% | 8.48% |
South China
| South China | 1,374,869,975.07 | 12.27% | 1,269,202,599.03 | 12.36% | 8.33% |
Central China
| Central China | 928,415,707.26 | 8.29% | 859,455,161.51 | 8.37% | 8.02% |
North China
| North China | 1,122,210,085.76 | 10.02% | 1,250,622,282.44 | 12.18% | -10.27% |
Northeast China
| Northeast China | 508,004,826.92 | 4.53% | 484,194,864.36 | 4.71% | 4.92% |
Northwest China
| Northwest China | 571,241,367.26 | 5.10% | 444,338,961.01 | 4.33% | 28.56% |
Southeast China
| Southeast China | 918,587,632.28 | 8.20% | 637,508,722.80 | 6.21% | 44.09% |
Overseas regions
| Overseas regions | 67,877,575.16 | 0.61% | 62,048,824.79 | 0.60% | 9.39% |
Distribution model
Distribution modelSales by proxy
| Sales by proxy | 2,922,898,630.55 | 26.09% | 2,446,494,399.39 | 23.82% | 19.47% |
Sales by dealers
| Sales by dealers | 238,597,540.87 | 2.13% | 301,984,213.55 | 2.94% | -20.99% |
Direct sales
| Direct sales | 5,862,114,658.80 | 52.33% | 5,402,928,683.48 | 52.60% | 8.50% |
Engineering
| Engineering | 2,075,246,482.42 | 18.53% | 2,058,478,176.62 | 20.04% | 0.81% |
Other
| Other | 103,038,461.63 | 0.92% | 61,615,098.00 | 0.60% | 67.23% |
(2) Industries, products, regions and sales models that account for more than 10% of the Company's
operating income or profit? Applicable □ Not applicable
Unit: yuan
| Operating income | Operating cost | Gross margin ratio | Year-on-year increase / decrease of operating income | Year-on-year increase / decrease of operating cost | Year-on-year increase / decrease of gross margin ratio |
By industry
By industryHome andkitchen &bathappliances
| Home and kitchen & bath appliances | 10,897,226,245.68 | 5,369,816,850.21 | 50.72% | 9.17% | 6.95% | 1.02% |
By product
By productRange hood
| Range hood | 5,321,818,112.20 | 2,448,401,656.97 | 53.99% | 10.13% | 4.97% | 2.26% |
Gas hobs
| Gas hobs | 2,671,006,229.35 | 1,181,321,519.98 | 55.77% | 8.71% | 5.94% | 1.16% |
By region
By regionEast China
| East China | 5,710,688,604.56 | 2,628,225,105.38 | 53.98% | 8.48% | 6.06% | 1.05% |
SouthChina
| South China | 1,374,869,975.07 | 744,925,498.58 | 45.82% | 8.33% | 8.20% | 0.07% |
NorthChina
| North China | 1,122,210,085.76 | 522,974,774.14 | 53.40% | -10.27% | -15.74% | 3.03% |
Distribution model
Distribution modelSales byproxy
| Sales by proxy | 2,922,898,630.55 | 1,628,494,098.25 | 44.28% | 19.47% | 13.30% | 3.03% |
Direct sales
| Direct sales | 5,862,114,658.80 | 2,461,006,814.46 | 58.02% | 8.50% | 2.21% | 2.58% |
Engineering
| Engineering | 2,075,246,482.42 | 1,204,600,439.46 | 41.95% | 0.81% | 12.47% | -6.02% |
In the case that the statistical standards for main business data of the Company are adjusted during the reporting period, the mainbusiness data of the Company in recent 1 year are subject to those after the adjustment of the statistical standards at the end of thereporting period
□ Applicable ? Not applicable
2023 Full Annual Report
(3) Whether the Company's physical sales revenue is greater than the service revenue
? Yes □ No
| Industry category | Item | Unit | 2023 | 2022 | Year-on-year increase / decrease |
Home and kitchen &bath appliances
| Home and kitchen & bath appliances | Sales quantity | Unit | 8,443,155 | 7,757,460 | 8.84% |
| Production output | Unit | 8,183,261 | 7,557,374 | 8.28% | |
| Inventory | Unit | 1,815,258 | 2,075,152 | -12.52% | |
Reasons for more than 30% year-on-year changes in the relevant data
□ Applicable ? Not applicable
(4) Performance of major sales contracts and major purchase contracts signed by the Company up to the reporting
period
□ Applicable ? Not applicable
(5) Composition of operating cost
Industry and product categories
Unit: yuan
| Industry category | Item | 2023 | 2022 | Year-on-year increase / decrease | ||
| Amount | Proportion in operating cost | Amount | Proportion in operating cost | |||
Home andkitchen & bathappliances
| Home and kitchen & bath appliances | Manufacturing costs | 539,639,570.43 | 9.76% | 517,639,044.69 | 10.07% | -0.31% |
| Raw materials | 4,817,498,668.82 | 87.15% | 4,425,668,122.58 | 86.15% | 1.00% | |
| Labor | 170,510,467.04 | 3.08% | 194,061,590.88 | 3.78% | -0.70% |
Unit: yuan
| Product Classification | Item | 2023 | 2022 | Year-on-year increase / decrease | ||
| Amount | Proportion in operating cost | Amount | Proportion in operating cost | |||
Range hood
| Range hood | Manufacturing costs | 295,799,517.99 | 5.36% | 282,015,436.10 | 5.49% | -0.13% |
| Raw materials | 2,060,227,230.75 | 37.27% | 1,946,232,805.60 | 37.88% | -0.61% | |
| Labor | 92,374,908.23 | 1.67% | 104,134,091.03 | 2.03% | -0.36% |
Gas hobs
| Gas hobs | Manufacturing costs | 55,020,078.83 | 1.00% | 58,395,892.78 | 1.14% | -0.14% |
| Raw materials | 1,107,454,139.18 | 20.03% | 1,031,439,648.62 | 20.08% | -0.05% | |
| Labor | 18,847,301.97 | 0.34% | 25,298,764.37 | 0.49% | -0.15% |
Dish-washingmachine
| Dish-washing machine | Manufacturing costs | 40,428,624.44 | 0.73% | 39,309,333.79 | 0.77% | -0.04% |
| Raw materials | 356,401,487.47 | 6.45% | 275,583,128.32 | 5.36% | 1.09% | |
| Labor | 11,707,351.31 | 0.21% | 12,107,381.36 | 0.24% | -0.03% |
Steam oven-oven
| Steam oven-oven | Manufacturing costs | 35,045,428.88 | 0.63% | 37,886,184.41 | 0.74% | -0.11% |
| Raw materials | 288,290,318.22 | 5.22% | 317,516,080.41 | 6.18% | -0.96% | |
| Labor | 13,706,404.30 | 0.25% | 16,540,158.74 | 0.32% | -0.07% |
Other
| Other | Manufactur | 113,345,920.29 | 2.05% | 100,032,197.61 | 1.95% | 0.10% |
2023 Full Annual Report
ing costsRawmaterials
| Raw materials | 1,005,125,493.20 | 18.18% | 854,896,459.63 | 16.64% | 1.54% |
Labor
| Labor | 33,874,501.23 | 0.61% | 35,981,195.38 | 0.70% | -0.09% |
(6) Whether the consolidation scope changes in the reporting period
? Yes □ NoThis year, the consolidation scope of the Company was expanded due to the establishment of ROBAMAppliances (Hong Kong) Holdings Limited and ROBAM International (Hong Kong) Trading Co., Ltd.
(7) Major changes or adjustments of business, products or services of the Company during the reporting period
□ Applicable ? Not applicable
(8) Major sales customers and major suppliers
Major sales customers of the Company
| Total sales amount of top five customers (yuan) | 3,257,684,970.96 |
Proportion of total sales amount of top five customers in totalannual sales
| Proportion of total sales amount of top five customers in total annual sales | 29.08% |
Among the sales amount of top five customers, proportion ofsales amount of related parties in total annual sales
| Among the sales amount of top five customers, proportion of sales amount of related parties in total annual sales | 0.00% |
Top 5 customers of the Company
| No. | Customer name | Sales Amount (yuan) | Proportion in total annual sales |
| 1 | Unit 1 | 2,059,743,978.25 | 18.39% |
| 2 | Unit 2 | 425,775,717.09 | 3.80% |
| 3 | Unit 3 | 310,634,662.78 | 2.77% |
| 4 | Unit 4 | 301,210,212.83 | 2.69% |
| 5 | Unit 5 | 160,320,400.01 | 1.43% |
Total
| Total | -- | 3,257,684,970.96 | 29.08% |
Other information of major customers
□ Applicable ? Not applicable
Major suppliers of the Company
| Total purchase amount of top five suppliers (yuan) | 748,045,432.37 |
Proportion of total purchase amount of top five suppliers in totalannual purchase amount
| Proportion of total purchase amount of top five suppliers in total annual purchase amount | 16.79% |
Among the purchase amount of top five suppliers, proportion ofpurchase amount of related parties in total annual purchaseamount
| Among the purchase amount of top five suppliers, proportion of purchase amount of related parties in total annual purchase amount | 0.00% |
Top 5 suppliers of the Company
| No. | Supplier name | Purchase amount (yuan) | Proportion in total annual purchase amount |
| 1 | Unit 1 | 209,031,127.99 | 4.69% |
| 2 | Unit 2 | 182,048,964.93 | 4.09% |
| 3 | Unit 3 | 130,788,476.89 | 2.94% |
| 4 | Unit 4 | 116,363,171.88 | 2.61% |
| 5 | Unit 5 | 109,813,690.68 | 2.47% |
Total
| Total | -- | 748,045,432.37 | 16.79% |
Other information of major suppliers
□ Applicable ? Not applicable
2023 Full Annual Report
3. Expenses
Unit: yuan
| 2023 | 2022 | Year-on-year increase / decrease | Description of major changes |
Selling expenses
| Selling expenses | 3,002,418,651.54 | 2,613,626,073.89 | 14.88% | / |
Management costs
| Management costs | 469,622,072.60 | 430,968,403.74 | 8.97% | / |
Financial expenses
| Financial expenses | -188,927,736.59 | -157,222,288.61 | 20.17% | / |
Research anddevelopment expenses
| Research and development expenses | 387,368,591.97 | 391,614,805.38 | -1.08% | / |
4. R&D investment
? Applicable □ Not applicableR&D personnel of the Company
| 2023 | 2022 | Proportion of change |
Number of R&D personnel(person)
| Number of R&D personnel (person) | 919 | 929 | -1.08% |
Proportion of R&D personnel
| Proportion of R&D personnel | 16.76% | 18.23% | -1.47% |
Educational structure of R&D personnel
Educational structure of R&D personnelBachelor
| Bachelor | 677 | 683 | -0.88% |
Master
| Master | 152 | 146 | 4.11% |
Age composition of R&D personnel
Age composition of R&D personnelUnder 30 years old
| Under 30 years old | 285 | 297 | -4.04% |
30~40 years old
| 30~40 years old | 492 | 476 | 3.36% |
R&D investment of the Company
| 2023 | 2022 | Proportion of change |
R&D investment amount(yuan)
| R&D investment amount (yuan) | 387,368,591.97 | 391,614,805.38 | -1.08% |
Proportion of R&D investmentin operating revenue
| Proportion of R&D investment in operating revenue | 3.46% | 3.81% | -0.35% |
Capitalized amount of R&Dinvestment (yuan)
| Capitalized amount of R&D investment (yuan) | 0.00 | 0.00 | 0.00% |
Proportion of capitalized R&Dinvestment in R&D investment
| Proportion of capitalized R&D investment in R&D investment | 0.00% | 0.00% | 0.00% |
Reasons and effects of major changes in the composition of R&D personnel of the Company
□ Applicable ? Not applicable
Reasons for significant changes in the proportion of total R&D investment amount in operating revenue as compared to theprevious year
□ Applicable ? Not applicable
Reasons for the great changes of R&D investment capitalization rate and description of its rationality
□ Applicable ? Not applicable
5. Cash flow
Unit: yuan
| Item | 2023 | 2022 | Year-on-year increase / decrease |
Subtotal cash inflows fromoperating activities
| Subtotal cash inflows from operating activities | 12,586,117,255.55 | 11,572,752,136.63 | 8.76% |
Subtotal cash outflows from
| Subtotal cash outflows from | 10,194,195,442.84 | 9,627,965,832.61 | 5.88% |
2023 Full Annual Report
operating activitiesNet cash flow from operatingactivities
| Net cash flow from operating activities | 2,391,921,812.71 | 1,944,786,304.02 | 22.99% |
Subtotal cash inflows frominvestment activities
| Subtotal cash inflows from investment activities | 2,398,275,667.27 | 3,038,030,947.22 | -21.06% |
Subtotal cash outflows frominvestment activities
| Subtotal cash outflows from investment activities | 7,673,482,106.87 | 3,082,085,886.40 | 148.97% |
Net cash flow from investmentactivities
| Net cash flow from investment activities | -5,275,206,439.60 | -44,054,939.18 | Not applicable |
Subtotal cash inflows fromfinancing activities
| Subtotal cash inflows from financing activities | 92,260,296.65 | 66,662,732.06 | 38.40% |
Subtotal cash outflows fromfinancing activities
| Subtotal cash outflows from financing activities | 528,201,490.92 | 496,668,186.35 | 6.35% |
Net cash flow from financingactivities
| Net cash flow from financing activities | -435,941,194.27 | -430,005,454.29 | Not applicable |
Net increase of cash and cashequivalents
| Net increase of cash and cash equivalents | -3,318,247,983.65 | 1,476,425,521.39 | -324.75% |
Description of main influencing factors of significant changes in relevant data on a year-on-year basis? Applicable □ Not applicableDuring the reporting period, the cash outflows from investment activities increased by 148.97% year on year, which was mainlydue to the holding to maturity of the bank time deposit plan, which was classified as an impact on investment activities accordingto accounting standards.During the reporting period, the cash inflows from financing activities increased by 38.40% year on year, which was mainly due tothe increase in bank loan and factoring amount received with recourse.Reasons for significant difference between the net cash flow from operating activities of the Company and the net profit of thecurrent year in the reporting period
□ Applicable ? Not applicable
V. Non-main Business Analysis
□ Applicable ? Not applicable
VI. Analysis of Assets and Liabilities
1. Major changes in asset composition
Unit: yuan
| End of 2023 | Beginning of 2023 | Proportion change | Description of major changes | |||
| Amount | Proportion in total assets | Amount | Proportion in total assets | |||
Monetarycapital
| Monetary capital | 1,985,050,745.11 | 11.83% | 5,292,762,670.94 | 35.19% | -23.36% | The increase in unmatured large-amount certificates of deposit this year are presented separately in other current assets and other non-current assets |
Accountsreceivable
| Accounts receivable | 1,810,015,596.33 | 10.79% | 1,689,606,828.94 | 11.23% | -0.44% | / |
Inventory
| Inventory | 1,524,274,720.24 | 9.08% | 1,610,110,798.10 | 10.71% | -1.63% | / |
Investmentproperties
| Investment properties | 91,136,832.31 | 0.54% | 55,887,198.54 | 0.37% | 0.17% | / |
Long-term
| Long-term | 8,427,450.24 | 0.05% | 8,718,505.62 | 0.06% | -0.01% | / |
2023 Full Annual Report
equityinvestmentFixed assets
| Fixed assets | 1,720,724,257.46 | 10.25% | 1,622,235,227.74 | 10.79% | -0.54% | / |
Construction inprogress
| Construction in progress | 359,768,699.68 | 2.14% | 406,258,146.69 | 2.70% | -0.56% | / |
Right-of-useassets
| Right-of-use assets | 13,802,458.98 | 0.08% | 22,220,144.13 | 0.15% | -0.07% | / |
Short-termborrowing
| Short-term borrowing | 95,003,320.70 | 0.57% | 51,723,429.99 | 0.34% | 0.23% | / |
Contractliabilities
| Contract liabilities | 1,019,942,923.58 | 6.08% | 959,915,567.03 | 6.38% | -0.30% | / |
Lease liabilities
| Lease liabilities | 10,750,792.90 | 0.06% | 18,588,966.67 | 0.12% | -0.06% | / |
The proportion of overseas assets is relatively high
□ Applicable ? Not applicable
2. Assets and liabilities measured with fair value
? Applicable □ Not applicable
Unit: yuan
| Item | Opening balance | Closing balance |
1. Trading financial assets (excluding derivative financial assets)
| 1. Trading financial assets (excluding derivative financial assets) | 2,511,844,508.00 | 2,730,000,000.00 |
4. Other equity instrument investments
| 4. Other equity instrument investments | 2,116,023.22 | 2,116,023.22 |
5. Other non-current financial assets
| 5. Other non-current financial assets | 480,000,000.00 |
Total
| Total | 2,513,960,531.22 | 3,212,116,023.22 |
Financial liabilities
| Financial liabilities | 0.00 | 0.00 |
Other changesDuring the reporting period, there was no significant change in the measurement attributes of the Company's mainly assets.
□ Yes ?No
3. Limitation on the assets and rights as of the end of the reporting period
| Item | Year-end balance | Year-beginning balance |
Guarantee deposit
| Guarantee deposit | 83,153,343.90 | 76,092,305.89 |
Bill deposit
| Bill deposit | 23,717,043.12 | 20,243,023.31 |
ETC deposit
| ETC deposit | 14,000.00 | 13,000.00 |
Fixed assets
| Fixed assets | 99,401,869.39 |
Intangible assets
| Intangible assets | 25,884,399.80 |
Total
| Total | 232,170,656.21 | 96,348,329.20 |
VII. Analysis of Investment
1. Overall situation
□ Applicable ? Not applicable
2. Significant equity investments acquired during the reporting period
□ Applicable ? Not applicable
3. Significant ongoing non-equity investments during the reporting period
□ Applicable ? Not applicable
2023 Full Annual Report
4. Financial asset investment
(1) Securities investments
□ Applicable ? Not applicable
The Company had no securities investments in the reporting period.
(2) Derivatives investment
□ Applicable ? Not applicable
The Company had no derivatives investments in the reporting period.
5. Use of funds raised
□ Applicable ? Not applicable
No funds raised are used in the reporting period.VIII. Sales of Major Assets and Equities
1. Sales of major assets
□ Applicable ? Not applicable
The Company did not sell major assets in the reporting period.
2. Sales of major equities
□ Applicable ? Not applicable
IX. Analysis of Main Holding and Joint-stock Companies
? Applicable □ Not applicableJoint-stock companies that affect the net profits of the Company by more than 10% and main subsidiaries
Unit: yuan
| Company name | Company type | Main business | Registered capital | Total assets | Net assets | Operating income | Operating profit | Net profit |
Shanghai ROBAMElectric Appliance SalesCo., Ltd.
| Shanghai ROBAM Electric Appliance Sales Co., Ltd. | Subsidiary | Sales of kitchen appliance products | 5000000 | 67,134,261.10 | -29,054,984.52 | 436,895,754.03 | -31,355,406.40 | -31,567,117.47 |
Beijing ROBAM ElectricAppliance Sales Co., Ltd.
| Beijing ROBAM Electric Appliance Sales Co., Ltd. | Subsidiary | Sales of kitchen appliance products | 5000000 | 78,993,404.66 | 38,269,878.69 | 272,095,407.85 | -2,973,382.84 | -2,841,643.89 |
Hangzhou MingqiElectric Co., Ltd.
| Hangzhou Mingqi Electric Co., Ltd. | Subsidiary | Sales of kitchen appliance products | 50000000 | 180,177,694.43 | 36,036,569.13 | 453,350,093.28 | -14,191,217.68 | -14,134,887.70 |
Shengzhou KindeIntelligent KitchenElectric Co., Ltd.
| Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. | Subsidiary | Production and sales of kitchen appliance products | 32653061 | 450,515,484.94 | 213,943,713.65 | 148,506,855.32 | -34,323,268.83 | -32,142,248.55 |
Acquisition and disposal of subsidiaries during the reporting period
□ Applicable ? Not applicable
Description of main holding and joint-stock companiesX. Structured Entities Controlled by the Company
□ Applicable ? Not applicable
XI. Prospect of the Company's Future DevelopmentMission: To render happiness of kitchen life for more families
2023 Full Annual Report
Vision: To be a world-class century-old leader of cooking innovationStrategic direction: Focus, innovation, transformationStrategy description: Company development strategy (2023--2025)Focus on the cooking track, on the basis of "upgrading value, focusing on users, promoting synergy andcreating growth", and drive "product innovation, model innovation and system innovation" through digitalkitchen appliances, continuously expand the core business advantages, quickly break through the strategicbusiness bottleneck, build the core competitiveness based on "science + humanity" and create a new ROBAM!Strategic objective:
Create a new Robam by 2025.
XII. Reception, Research, Communication, Interview and Other Activities During theReporting Period? Applicable □ Not applicable
| Reception time | Reception place | Reception way | Type of received object | Received object | Main points of discussion and information provided | Basic information index of the survey |
January 10, 2023
| January 10, 2023 | Company | Field survey | Organization | Organization | Record Chart of Investor Relation Activities on January 10-11, 2023 | Record Chart of Investor Relation Activities on January 10-11, 2023 |
September 12,2023
| September 12, 2023 | Company | Field survey | Organization | Organization | Record Chart of Investor Relation Activities on September 12-14, 2023 | Record Chart of Investor Relation Activities on September 12-14, 2023 |
December 05,2023
| December 05, 2023 | Company | Field survey | Organization | Organization | Record Chart of Investor Relation Activities on December 5, 2023 | Record Chart of Investor Relation Activities on December 5, 2023 |
XIII. Implementation of the Action Plan of "Double Improvement of Quality and Return"
Whether the Company has disclosed the Action Plan for "Double Improvement of Quality and Return".
□ Yes ?No
2023 Full Annual Report
Section 4 Corporate GovernanceI. Basic State of Corporate Governance
In the reporting period, the Company constantly improved the corporate governance structure, established and improved internalmanagement and control systems, and continued to carry out in-depth corporate governance activities in strict accordance with theCompany law, the Securities Law, the Governance Guidelines for Listed Companies, the Rules for Stock Listing of Shenzhen StockExchange and relevant laws and regulations of China Securities Regulatory Commission to further regulate the Companyoperation and improve the corporate government level. By the end of the reporting period, the actual situation of corporategovernance conformed to the normative documents on listed corporate governance issued by China Securities RegulatoryCommission.During the reporting period, the Company operated in strict accordance with national laws and regulations, Rules for Stock Listingof Shenzhen Stock Exchange and the Guidelines on the Standardized Operation of Listed Companies on the Main Board, andperformed its obligations of information disclosure in a timely, complete, true, accurate and fair manner. The Company has notreceived the relevant documents of administrative supervision measures taken by the regulatory authorities.
(1) Shareholders and shareholders' meeting
In strict accordance with the Rules of the Shareholders' Meeting of Listed Companies and the Rules of Procedure of theShareholders' Meeting, the Company shall convene the shareholders' meeting to ensure that all shareholders, especially minorityshareholders, enjoy equal status and fully exercise their rights.
(2) Company and controlling shareholders
The Company has independent business and operational independence and is independent from the controlling shareholders inbusiness, personnel, assets, institutions and finance. The Company's board of directors, the board of supervisors and internalorganize operate independently. The controlling shareholders of the Company can strictly regulate their own behaviors, withoutdirectly or indirectly intervening in the Company's decision-making and business activities beyond the shareholders' meeting.
(3) Directors and board of directors
The Company elects its directors in strict accordance with the recruiting procedures stipulated in the Articles of Association; all thedirectors of the Company can carry out their work in accordance with the Rules of Procedure of the Board of Directors andGuidelines on the Behaviors of Directors of Listed Companies, attend the board of directors and shareholders' meetings earnestly,actively participate in the training of relevant knowledge, and be familiar with relevant laws and regulations.
(4) Supervisors and Board of Supervisors
The Company shall elect supervisors in strict accordance with the relevant provisions of the Company Law and the Articles ofAssociation, and the number and composition of the board of supervisors shall meet the requirements of laws and regulations. Inaccordance with the requirements of the Rules of Procedure of the Board of Supervisors, the Company's supervisors can earnestlyperform their duties, effectively supervise the Company's major issues, related transactions, financial condition, and theperformance of directors and managers, and express independent opinions.
(5) Performance Evaluation and Incentive and Restraint Mechanisms
The Company is gradually establishing a fair and transparent performance evaluation standard and incentive and restraintmechanism for directors, supervisors and managers. The appointment of the Company's managers is open and transparent andconforms to the provisions of laws and regulations.
(6) Information Disclosure and Transparency
The Company carries out information disclosure and investor relations management under the board secretary responsibilitysystem; the Company performs the information disclosure procedure in strict accordance with the Measures for the Administrationof Information Disclosure and discloses the information on the designated information disclosure media such as Securities Times,China Securities Journal, Securities Daily, Shanghai Securities News and cninfo in a true, accurate, complete and timely manneraccording to law; meanwhile, according to the requirements of the Measures for the Investor Relations Management, the Companystandardizes investor reception procedures, receives visits and inquiries from shareholders, and ensures that all shareholders haveequal access to the Company information.
(7) Stakeholder
The Company fully respects and safeguards the legitimate rights and interests of relevant stakeholders, realizes the coordinationand balance of interests of the society, shareholders, the Company and employees, and jointly promotes the sustainable and steadydevelopment of the Company.
2023 Full Annual Report
(8) Internal Audit System
The Company has established an internal audit system and set up an internal audit department. The board of directors hasappointed the person in charge of internal audit to effectively control the Company's daily operation and management, internalcontrol system and major issues of the Company. There is no significant difference between the actual situation of corporategovernance and the normative documents on listed corporate governance issued by China Securities Regulatory Commission.Whether there is significant difference between the actual situation of corporate governance and the laws, administrativeregulations and the provisions on the listed corporate governance issued by China Securities Regulatory Commission.
□ Yes ?No
There is no significant difference between the actual situation of corporate governance and the laws, administrative regulations andthe provisions on the listed corporate governance issued by China Securities Regulatory Commission.II. Independence of the Company Relative to the Controlling Shareholders and ActualControllers in Ensuring the Company's Assets, Personnel, Finance, Organization, Business,etc.
The Company operates in strict accordance with the Company Law and the Articles of Association, establishes and improves thecorporate governance structure, is completely separated from the controlling shareholders in terms of business, personnel, assets,institutions and finance, and has independent and complete business and independent operation capability.III. Horizontal Competition
□ Applicable ? Not applicable
IV. Information About the Annual General Meeting of Shareholders and ExtraordinaryGeneral Meeting of Shareholders Held During the Reporting Period
1. General meeting of shareholders during the reporting period
| Meeting session | Meeting type | Investor participation proportion | Convening date | Date of disclosure | Meeting resolution |
Annual general meetingof shareholders in 2022
| Annual general meeting of shareholders in 2022 | Annual general meeting of shareholders | 61.55% | May 18, 2023 | May 19, 2023 | Announcement of Resolutions of 2022 Annual General Meeting of Shareholders (Announcement No.: 2023-025) |
First extraordinarygeneral meeting ofshareholders in 2023
| First extraordinary general meeting of shareholders in 2023 | Extraordinary general meeting of shareholders | 61.11% | August 18, 2023 | August 19, 2023 | Announcement of Resolutions of 2023 First Extraordinary General Meeting of Shareholders (2023-039) |
Second extraordinarygeneral meeting ofshareholders in 2023
| Second extraordinary general meeting of shareholders in 2023 | Extraordinary general meeting of shareholders | 62.68% | December 29, 2023 | December 30, 2023 | Announcement of Resolutions of 2023 Second Extraordinary General Meeting of Shareholders (Announcement No.: 2023-057) |
2. The preferred shareholders with voting rights restored request an extraordinary general meeting of
shareholders
□ Applicable ? Not applicable
V. Directors, Supervisors and Senior Management
1. Basic information
| Name | Gender | Age | Position | Status of service | Start date of tenure | End date of tenure | Number of shares held at the beginning of the period (shares) | Number of shares held at the end of the period (shares) |
RenJianhua
| Ren Jianhua | Male | 67 | Chairman | Incumbent | August 18, 2023 | August 17, 2026 | 5,923,150 | 5,923,150 |
Ren Fujia
| Ren Fujia | Mal | 40 | Deputy | Incumbe | August 18, 2023 | August 17, 2026 | 2,100,075 | 2,100,075 |
2023 Full Annual Report
| Name | Gender | Age | Position | Status of service | Start date of tenure | End date of tenure | Number of shares held at the beginning of the period (shares) | Number of shares held at the end of the period (shares) |
e
| e | chairman, general manager | nt |
XiaZhiming
| Xia Zhiming | Male | 48 | Director and deputy general manager | Incumbent | August 18, 2023 | August 17, 2026 | 411,950 | 411,950 |
HeYadong
| He Yadong | Male | 49 | Director and deputy general manager | Incumbent | August 18, 2023 | August 17, 2026 | 411,950 | 411,950 |
ZhaoJihong
| Zhao Jihong | Male | 61 | Director | Incumbent | August 18, 2023 | August 17, 2026 | 1,267,565 | 1,267,565 |
WangGang
| Wang Gang | Male | 48 | Director, secretary to the board of directors | Incumbent | August 18, 2023 | August 17, 2026 | 576,750 | 576,750 |
RenLuozhong
| Ren Luozhong | Male | 61 | Director | Leaving office | August 18, 2020 | August 17, 2023 | 1,267,562 | 1,267,562 |
ShenGuoliang
| Shen Guoliang | Male | 58 | Director | Leaving office | August 18, 2020 | August 17, 2023 | 1,143,264 | 1,143,264 |
ChenYuanzhi
| Chen Yuanzhi | Male | 46 | Independent director | Incumbent | August 18, 2023 | August 17, 2026 | 0 | 0 |
YuLieming
| Yu Lieming | Male | 46 | Independent director | Incumbent | August 18, 2023 | August 17, 2026 | 0 | 0 |
ChengZhiyong
| Cheng Zhiyong | Male | 44 | Independent director | Incumbent | August 18, 2023 | August 17, 2026 | 0 | 0 |
HeYuanfu
| He Yuanfu | Male | 68 | Independent director | Leaving office | August 18, 2020 | August 17, 2023 | 0 | 0 |
RenLuozhong
| Ren Luozhong | Male | 61 | Chairman of the board of supervisors | Incumbent | August 18, 2023 | August 17, 2026 | 1,267,562 | 1,267,562 |
ZhangLinyong
| Zhang Linyong | Male | 58 | Supervisor | Incumbent | August 18, 2023 | August 17, 2026 | 834,315 | 834,315 |
ShenGuoliang
| Shen Guoliang | Male | 58 | Supervisor | Incumbent | August 18, 2023 | August 17, 2026 | 1,143,264 | 1,143,264 |
TangGenquan
| Tang Genquan | Male | 63 | Employee supervisor | Incumbent | August 18, 2023 | August 17, 2026 | 834,312 | 834,312 |
WangFang
| Wang Fang | Female | 34 | Employee supervisor | Incumbent | August 18, 2023 | August 17, 2026 | 0 | 0 |
ZhangSongnian
| Zhang Songnian | Male | 57 | Supervisor | Leaving office | August 18, 2020 | August 17, 2023 | 834,312 | 834,312 |
ShenYueming
| Shen Yueming | Male | 64 | Supervisor | Leaving office | August 18, 2020 | August 17, 2023 | 53,875 | 53,875 |
ZhangHuifen
| Zhang Huifen | Female | 45 | Employee supervisor | Leaving office | August 18, 2020 | August 17, 2023 | 0 | 0 |
ZhouHaixin
| Zhou Haixin | Male | 48 | Deputy general manager | Incumbent | August 18, 2023 | August 17, 2026 | 0 | 0 |
ZhangGuofu
| Zhang Guofu | Male | 54 | Chief financial officer | Incumbent | August 18, 2023 | August 17, 2026 | 411,950 | 411,950 |
Total
| Total | -- | -- | -- | -- | -- | -- | 18,481,856 | 18,481,856 |
2023 Full Annual Report
During the reporting period, whether there was any resignation of directors and supervisors and dismissal of senior managementduring their term of office
□ Yes ?No
Change of directors, supervisors and senior management? Applicable □ Not applicable
| Name | Position held | Type | Date | Cause |
Xia Zhiming
| Xia Zhiming | Director | Elected | August 18, 2023 | Elected in re-election of the board of directors |
He Yadong
| He Yadong | Director | Elected | August 18, 2023 | Elected in re-election of the board of directors |
Cheng Zhiyong
| Cheng Zhiyong | Independent director | Elected | August 18, 2023 | Elected in re-election of the board of directors |
Ren Luozhong
| Ren Luozhong | Director | Leave office upon expiration of tenure | August 18, 2023 | Resignation in re-election of the board of directors |
Shen Guoliang
| Shen Guoliang | Director | Leave office upon expiration of tenure | August 18, 2023 | Resignation in re-election of the board of directors |
He Yuanfu
| He Yuanfu | Independent director | Leave office upon expiration of tenure | August 18, 2023 | Resignation in re-election of the board of directors |
Ren Luozhong
| Ren Luozhong | Supervisor | Elected | August 18, 2023 | Elected in re-election of the board of supervisors |
Shen Guoliang
| Shen Guoliang | Supervisor | Elected | August 18, 2023 | Elected in re-election of the board of supervisors |
Wang Fang
| Wang Fang | Employee supervisor | Elected | August 18, 2023 | Elected in re-election of employee representative supervisors |
Zhang Songnian
| Zhang Songnian | Supervisor | Leave office upon expiration of tenure | August 18, 2023 | Resignation in re-election of the board of supervisors |
Shen Yueming
| Shen Yueming | Supervisor | Leave office upon expiration of tenure | August 18, 2023 | Resignation in re-election of the board of supervisors |
Zhang Huifen
| Zhang Huifen | Employee supervisor | Leave office upon expiration of tenure | August 18, 2023 | Resignation in re-election of employee representative supervisors |
2. Service status
Professional background, main work experience and main responsibilities currently in the Company of current directors,supervisors and senior management of the Company
1) Resume of current directors
Mr. Ren Jianhua, Han nationality, born in August 1956, Chinese, without permanent residency abroad; junior high schooleducation, member of Communist Party of China, economist. He began to work in 1978 and successively served as the supply andmarketing section chief and factory director of Yuhang Hongxing Hardware Factory, the chairman, general manager and Secretaryof the Party branch of Hangzhou ROBAM Industrial Group Co., Ltd., and the chairman and general manager of HangzhouROBAM Home Appliances & Kitchen Sanitary Co., Ltd. He has won the titles of national model worker and outstanding memberof Communist Party of Zhejiang Province, and was elected as the deputy to the 8th and 10th National People's Congress ofZhejiang Province, deputy to the 11th National People's Congress of Hangzhou City, the Party representative, deputy to the 12thand 13th National People's Congress of Hangzhou City, and the 12th Fengyun Zhejiang Merchants. At present, he is the chairmanof Hangzhou ROBAM Appliances Co., Ltd., Hangzhou Robam Industrial Group Co., Ltd., Hangzhou Nbond Nonwoven Co., Ltd.,Hangzhou Guoguang Touring Commodity Co., Ltd., Hangzhou Amblem Kitchenware Co., Ltd., the executive director and generalmanager of Hangzhou Mingqi Electric Co., Ltd., the executive director and general manager of Hangzhou ROBAM FuchuangInvestment Management Co., Ltd., the deputy chairman of Garden Hotel Hangzhou, the chairman of Hangzhou ROBAM GasStation Co., Ltd., the executive director of Zhejiang Hangzhou Yuhang Rural Commercial Bank Company Limited, Hangzhou
2023 Full Annual Report
Dongming Forest Park Co., Ltd., Hangzhou Bonyee Daily Necessity Technology Co., Ltd., the executive director and generalmanager of Hangzhou Jinchuang Investment Co., Ltd., the executive partner of Hangzhou Jinnuochang Investment ManagementPartnership (Limited Partnership).Mr. Ren Fujia, Han nationality, born in January 1983, Chinese, without permanent residency abroad; bachelor degree. He used tobe the product manager of marketing department and the deputy general manager of R&D center of Hangzhou ROBAM IndustrialGroup Co., Ltd., the deputy general manager of Hangzhou ROBAM Home Appliances & Kitchen Sanitary Co., Ltd.; now he is thedirector of Hangzhou Nbond Nonwoven Co., Ltd., the deputy chairman and general manager of Hangzhou ROBAM AppliancesCo., Ltd., the director of Hangzhou Amblem Kitchenware Co., Ltd., and the deputy chairman of De Dietrich Trade (Shanghai) Co.,Ltd.Mr. Xiazhiming, Han nationality, born in May 1975, Chinese, without permanent residency abroad; college degree. He began towork in 1996 and successively served as the production section chief of Qiaori Electric Products Factory, the manufacturingdirector of Foxconn Technology Co., Ltd. and the production director of the Company's production center. At present, he isdirector and deputy general manager of the Company.Mr. He Yadong, Han nationality, born in August 1974, Chinese, without permanent residency abroad; bachelor degree, senioreconomist. He began to work in 2000 and successively served as the marketing section chief, director of marketing department anddeputy general manager of marketing center of ROBAM Group, the assistant to general manager of ROBAM Home Appliances,and director of the Company. At present, he is director and deputy general manager of the Company.Mr. Zhaojihong, Han nationality, born in December 1962, Chinese, without permanent residency abroad; master degree, senioreconomist. He successively served as the chairman and general manager of Hubei Huangshi Jinye Group Co., Ltd, the deputygeneral manager and general manager of the marketing center of ROBAM Group, the deputy general manager and generalmanager of the marketing center of ROBAM Home Appliances, and the deputy general manager of the Company. He hassuccessively won the titles of national outstanding entrepreneur, outstanding Hangzhou merchant in the World, "Top 10 influentialfigures in China's kitchen and bathroom industry", "Top 10 personalities in China's home appliance industry", and twice won theMondale world economic man achievement award and was selected into the dictionary of Chinese experts and celebrities. Atpresent, he is the director of the Company, the director of uTransHub Technologies Co., Ltd., the director and general manager ofHangzhou ROBAM Appliances Co., Ltd., the director of Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd., and the chairmanof Zhejiang Cooking Future Technology Co., Ltd.Wang Gang, born in October 1975, Chinese, without permanent residency abroad; master degree, a member of the CommunistParty of China, certified public accountant, senior economist. He used to be an inspector of Haining Local Taxation Bureau ofZhejiang Province, the R&D director of Shanghai Realize Investment Consulting Co., Ltd., the secretary of the board of directors,director of human resources, general manager assistant of Shanghai Hailong Software Co., Ltd, and the secretary of the board ofdirectors of Hangzhou ROBAM Home Appliances & Kitchen Sanitary Co., Ltd. At present, he is the director of Hangzhou NbondNonwoven Co., Ltd., the director and secretary of the board of directors of Hangzhou Robam Appliances Co., Ltd., the director ofDize Home Appliances Trading (Shanghai) Co., Ltd., the director of Hangzhou Fortune Gas Cryogenic Group Co.,Ltd., thedirector of De Dietrich Trade (Shanghai) Co., Ltd., the director of Hangzhou Guoguang Touring Commodity Co., Ltd, thesupervisor of Hangzhou Robam Fuchuang Investment Management Co., Ltd., the director of Shengzhou Kinde Intelligent KitchenElectric Co., Ltd., the supervisor of Shanghai MXCHIP Information Technology Co., Ltd., the director of Versolsolar HangzhouCo., Ltd., the independent director of Hangzhou Great Star Industrial Co., Ltd., the independent director of Hanjia Design GroupCo., Ltd., the independent director of Hangzhou XZB Tech Co., Ltd., and the legal representative and secretary general ofassociation of listed companies of Linping District, Hangzhou City.Mr. Chen Yuanzhi, Han nationality, born in November 1977, Chinese, member of Communist Party of China, doctor degree inmanagement, is now the independent director of the Company, a professor of China Executive Leadership Academy Pudong, anadjunct professor of East China Normal University, an adjunct researcher in the Research Center of Technological Innovation,Tsinghua University, the executive director of China Soft Science Research Society, a managing director of the Chinese Instituteof Business Administration, and an expert of Shanghai Science and Technology Expert Database.Mr. Yu Lieming, born in December 1977, Han nationality, Chinese, without permanent residency abroad; master degree. He beganto work in 1994 and successively served as the deputy director of the Administration Committee of Yuhang Economic andTechnological Development Zone of Hangzhou, the vice president of Chunfeng Holdings Group Co., Ltd., chairman of the boardof supervisors of Zhejiang CFMOTO Power Co., Ltd., and the executive vice president and secretary of the board of directors ofHamaton Automotive Technology Co., Ltd. At present, he is an independent director of the Company and the executive director ofHangzhou Xinlan Energy Engineering Co., Ltd.Mr. Cheng Zhiyong, born in March 1980, Han nationality, a member of the Communist Party of China, Chinese, withoutresidency abroad; bachelor degree. He served as senior manager of BDO China Shu Lun Pan CPAs from July 2004 to September2010, and then served as deputy general manager, secretary of the board of directors and chief financial officer of Zhejiang KaierNew Materials Co., Ltd. from October 2010 to March 2017. At present, he is the independent director of the Company, the generalmanager of Zhejiang Tenghua Assets Management Co., Ltd., the executive director and general manager of HangzhouWeifengheng Enterprise Management Consulting Co., Ltd., the independent director of Jiangsu Zeyu Intelligent Electric PowerCo., Ltd., the independent director of Zhejiang Debao Communication Technologies Co., Ltd., and the independent director ofEverich and Tomic Housewares Co., Ltd.
2023 Full Annual Report
2) Resume of current supervisors
Mr. Ren Luozhong, Han nationality, born in August 1962, Chinese, without permanent residency abroad; EMBA, assistanteconomist. He began to work in 1982 and successively served as the operation director of Yuhang Hongxing Hardware Factory,the deputy general manager, general manager of the marketing center, general manager of the technology center and director of thefirst production department of ROBAM Group, the director and deputy general manager of ROBAM Home Appliances, and thedeputy general manager of the Company. At present, he is the chairman of the board of supervisors of the Company, the deputychairman of Hangzhou ROBAM Industrial Group Co., Ltd., the director of Hangzhou Amblem Kitchenware Co., Ltd., thepresident of Hangzhou Linping District ROBAM Charity Foundation.Mr. Zhang Linyong, Han nationality, born in August 1965, Chinese, without permanent residency abroad; high school education,member of Communist Party of China, assistant economist. He began to work in 1984 and successively served as the officedirector of Yuhang Hongxing Hardware Factory, the general manager, director of the engineering department of Hangzhou HuafaElectric Appliance Co., Ltd., and the director of ROBAM Home Appliances. At present, he is the supervisor of the Company, thedirector of Hangzhou ROBAM Industrial Group Co., Ltd.Mr. Shen Guoliang, Han nationality, born in November 1965, Chinese, without permanent residency abroad; high schooleducation. He began to work in 1982 and successively served as the chief of the transportation section, chief financial officer andthe deputy general manager of the marketing center of Yuhang Hongxing Hardware Factory, the director of ROBAM HomeAppliances, and the chairman of the board of supervisors of the Company. At present, he is the supervisor of the Company, thedirector of Hangzhou ROBAM Industrial Group Co., Ltd., the deputy chairman of Shengzhou Kinde Intelligent Kitchen ElectricCo., Ltd., the director of Zhejiang Cooking Future Technology Co., Ltd., the supervisor of Hangzhou Amblem Kitchenware Co.,Ltd., and the supervisor of Beijing ROBAM Electric Appliance Sales Co., Ltd.Mr. Tang Genquan, Han nationality, born in October 1960, Chinese, without permanent residency abroad; college degree, engineer.He began to work in 1979 and successively served as the mould workshop director and technical director of Yuhang HongxingHardware Factory, the deputy general manager of technology, general manager of production quality and director of the thirdproduction department of ROBAM Group, the director of ROBAM Home Appliances. In 1993-1994 and 2005-2006, he wasawarded as the outstanding scientific and technological worker of Hangzhou. In 2004, he was selected into the "new century talentproject 139 youth talent cultivation candidate list", applied for 1 national invention patent, 7 utility model patents and 10 designpatents. He has been employed as a member of China daily hardware industry expert committee since 1996 and the deputysecretary general of fifth China daily hardware industry expert committee since 2006. At present, he is the employee representativesupervisor of the Company, the director of Hangzhou ROBAM Industrial Group Co., Ltd., the supervisor of Hangzhou ROBAMGas Station Co., Ltd., and the secretary general of Hangzhou Linping District ROBAM Charity Foundation.Ms. Wang Fang, born in July 1989, Han nationality, Chinese, without permanent residency abroad; college degree, junioraccountant. She began to work in 2012 and successively served as cashier and tax manager of Hangzhou ROBAM Appliances Co.,Ltd. At present, she is the employee representative supervisor of the Company.
3) Resume of current senior management
Mr. Ren Fujia, who is currently the general manager of the Company. Please refer to the resume of the directors of the Companyfor the introduction.Mr. Xia Zhiming, who is currently the deputy general manager of the Company. Please refer to the resume of the directors of theCompany for the introduction.Mr. He Yadong, who is currently the deputy general manager of the Company. Please refer to the resume of the directors of theCompany for the introduction.Mr. Zhou Haixin, Han nationality, born in February 1975, Chinese, without permanent residency abroad; doctor degree, seniorengineer. He began to work in 2001 and successively served as the researcher of Agilent Technologies Software Co. Ltd., theproject manger of Sony Ericsson Mobile Communication Products Co., Ltd., the project director of Qingdao Haier Telecom Co.,Ltd., the R&D director of Guangbao Mobile Electronic and Telecommunication Components Co., Ltd., and the senior R&Ddirector of the Company. At present, he is the deputy general manager of the Company.Mr. Wang Gang, who is currently the secretary of the board of directors of the Company. Please refer to the resume of thedirectors of the Company for the introduction.Mr. Zhang Guofu, Han nationality, born in December 1969, Chinese, without permanent residency abroad; bachelor degree. Hebegan to work in 1990 and successively served as the capital section chief, director of the financial center of Hangzhou ROBAMIndustrial Group Co., Ltd., and financial chief of Hangzhou ROBAM Home Appliances & Kitchen Sanitary Co., Ltd. At present,he is the chief financial officer of the Company, the supervisor of Hangzhou Mingqi Electric Co., Ltd., the director of ShengzhouKinde Intelligent Kitchen Electric Co., Ltd., and the director of De Dietrich Trade (Shanghai) Co., Ltd.Service status in the shareholder unit
2023 Full Annual Report
? Applicable □ Not applicable
| Name of staff | Shareholder unit name | Position held in shareholder unit | Whether to receive remuneration or allowance in the shareholder unit |
Ren Jianhua
| Ren Jianhua | Hangzhou ROBAM Industrial Group Co., Ltd. | Chairman | No |
Ren Jianhua
| Ren Jianhua | Hangzhou Jinchuang Investment Co., Ltd. | Executive director | No |
Ren Luozhong
| Ren Luozhong | Hangzhou ROBAM Industrial Group Co., Ltd. | Deputy chairman | No |
Zhao Jihong
| Zhao Jihong | Hangzhou ROBAM Industrial Group Co., Ltd. | Director, general manager | No |
Shen Guoliang
| Shen Guoliang | Hangzhou ROBAM Industrial Group Co., Ltd. | Director | No |
Zhang Linyong
| Zhang Linyong | Hangzhou ROBAM Industrial Group Co., Ltd. | Director | No |
Tang Genquan
| Tang Genquan | Hangzhou ROBAM Industrial Group Co., Ltd. | Director | No |
Service status in other unit? Applicable □ Not applicable
| Name of staff | Other unit name | Position held in other unit |
Ren Jianhua
| Ren Jianhua | Hangzhou Amblem Kitchenware Co., Ltd. | Chairman |
Ren Jianhua
| Ren Jianhua | Garden Hotel Hangzhou | Deputy chairman |
Ren Jianhua
| Ren Jianhua | Hangzhou Dongming Forest Park Co., Ltd. | Director |
Ren Jianhua
| Ren Jianhua | Hangzhou Nbond Nonwoven Co., Ltd. | Chairman |
Ren Jianhua
| Ren Jianhua | Zhejiang Hangzhou Yuhang Rural Commercial Bank Company Limited | Director |
Ren Jianhua
| Ren Jianhua | Hangzhou ROBAM Gas Station Co., Ltd. | Chairman |
Ren Jianhua
| Ren Jianhua | Hangzhou Jinnuochang Investment Management Partnership (Limited Partnership) | Executive partner |
Ren Jianhua
| Ren Jianhua | Hangzhou Bonyee Daily Necessity Technology Co., Ltd. | Executive director |
Ren Jianhua
| Ren Jianhua | Hangzhou ROBAM Fuchuang Investment Management Co., Ltd. | Executive director and general manager |
Ren Jianhua
| Ren Jianhua | Hangzhou Mingqi Electric Co., Ltd. | Executive director and general manager |
Ren Fujia
| Ren Fujia | De Dietrich Trade (Shanghai) Co., Ltd. | Deputy chairman |
Ren Fujia
| Ren Fujia | Hangzhou Amblem Kitchenware Co., Ltd. | Director |
Ren Fujia
| Ren Fujia | Hangzhou Nbond Nonwoven Co., Ltd. | Director |
Zhao Jihong
| Zhao Jihong | Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. | Chairman |
Zhao Jihong
| Zhao Jihong | uTransHub Technologies Co., Ltd. | Director |
Zhao Jihong
| Zhao Jihong | Zhejiang Cooking Future Technology Co., Ltd. | Chairman |
Wang Gang
| Wang Gang | Hangzhou Nbond Nonwoven Co., Ltd. | Director |
Wang Gang
| Wang Gang | Dize Home Appliances Trading (Shanghai) Co., Ltd. | Director |
Wang Gang
| Wang Gang | Hangzhou Fortune Gas Cryogenic Group Co., Ltd. | Director |
Wang Gang
| Wang Gang | De Dietrich Trade (Shanghai) Co., Ltd. | Director |
Wang Gang
| Wang Gang | Hangzhou Guoguang Touring Commodity Co., Ltd. | Director |
Wang Gang
| Wang Gang | Hangzhou ROBAM Fuchuang Investment Management Co., Ltd. | Supervisor |
Wang Gang
| Wang Gang | Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. | Director |
Wang Gang
| Wang Gang | Shanghai MXCHIP Information Technology Co., Ltd. | Supervisor |
Wang Gang
| Wang Gang | Versolsolar Hangzhou Co., Ltd. | Director |
Wang Gang
| Wang Gang | Hangzhou Great Star Industrial Co., Ltd. | Independent director |
2023 Full Annual Report
| Wang Gang | Hanjia Design Group Co., Ltd. | Independent director |
Wang Gang
| Wang Gang | Hangzhou XZB Tech Co., Ltd. | Independent director |
Chen Yuanzhi
| Chen Yuanzhi | China Executive Leadership Academy Pudong | Professor |
Chen Yuanzhi
| Chen Yuanzhi | Research Center of Technological Innovation, Tsinghua University | Researcher |
Yu Lieming
| Yu Lieming | Hangzhou Xinlan Energy Engineering Co., Ltd. | Executive director |
Cheng Zhiyong
| Cheng Zhiyong | Zhejiang Tenghua Assets Management Co., Ltd. | General Manager |
Cheng Zhiyong
| Cheng Zhiyong | Hangzhou Weifengheng Enterprise Management Consulting Co., Ltd. | Executive director and general manager |
Cheng Zhiyong
| Cheng Zhiyong | Jiangsu Zeyu Intelligent Electric Power Co., Ltd. | Independent director |
Cheng Zhiyong
| Cheng Zhiyong | Zhejiang Debao Communication Technologies Co., Ltd. | Independent director |
Cheng Zhiyong
| Cheng Zhiyong | Everich and Tomic Housewares Co., Ltd. | Independent director |
Ren Luozhong
| Ren Luozhong | Hangzhou Amblem Kitchenware Co., Ltd. | Director |
Shen Guoliang
| Shen Guoliang | Hangzhou Amblem Kitchenware Co., Ltd. | Supervisor |
Shen Guoliang
| Shen Guoliang | Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. | Deputy chairman |
Shen Guoliang
| Shen Guoliang | Beijing ROBAM Electric Appliance Sales Co., Ltd. | Supervisor |
Shen Guoliang
| Shen Guoliang | Zhejiang Cooking Future Technology Co., Ltd. | Director |
Zhang Guofu
| Zhang Guofu | De Dietrich Trade (Shanghai) Co., Ltd. | Director |
Zhang Guofu
| Zhang Guofu | Hangzhou Mingqi Electric Co., Ltd. | Supervisor |
Zhang Guofu
| Zhang Guofu | Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. | Director |
Tang Genquan
| Tang Genquan | Hangzhou ROBAM Gas Station Co., Ltd. | Supervisor |
Punishment of current directors, supervisors and senior management of the Company and those who left during the reportingperiod by securities regulators in recent three years
□ Applicable ? Not applicable
3. Remuneration of Directors, Supervisors and Senior Management
Decision making procedures, determination basis and actual payment of remuneration of directors, supervisors and seniormanagementThe Company has established a sound performance appraisal system and salary system for senior management, whose workperformance is directly linked to their income. The remuneration and appraisal committee of the board of directors is responsiblefor the year-end assessment of the working ability, performance of duties, completion of responsibility objectives, etc. of thesenior management, and preparing the remuneration plan and submitting it to the board of directors of the Company for approval.The remuneration of directors, supervisors and senior management shall be paid on time.Remuneration of directors, supervisors and senior management during the reporting period
Unit: 10,000 yuan
| Name | Gender | Age | Position | Status of service | Total pretax remuneration received from the Company | Whether to get remuneration from related parties of the Company |
Ren Jianhua
| Ren Jianhua | Male | 67 | Chairman | Incumbent | 86.91 | No |
Ren Fujia
| Ren Fujia | Male | 40 | Deputy chairman, general manager | Incumbent | 130.65 | No |
Xia Zhiming
| Xia Zhiming | Male | 48 | Director and deputy general manager | Incumbent | 139.92 | No |
He Yadong
| He Yadong | Male | 49 | Director and deputy general manager | Incumbent | 161.31 | No |
Zhao Jihong
| Zhao Jihong | Male | 61 | Director | Incumbent | 84.11 | No |
Wang Gang
| Wang Gang | Male | 48 | Director, secretary to the board of directors | Incumbent | 102.97 | No |
Ren Luozhong
| Ren Luozhong | Male | 61 | Chairman of the | Incumbent | 81.31 | No |
2023 Full Annual Report
| Name | Gender | Age | Position | Status of service | Total pretax remuneration received from the Company | Whether to get remuneration from related parties of the Company |
board of supervisors
board of supervisorsZhang Linyong
| Zhang Linyong | Male | 58 | Supervisor | Incumbent | 65.61 | No |
Shen Guoliang
| Shen Guoliang | Male | 58 | Supervisor | Incumbent | 72.14 | No |
Tang Genquan
| Tang Genquan | Male | 63 | Employee representative supervisor | Incumbent | 82.99 | No |
Wang Fang
| Wang Fang | Female | 34 | Employee representative supervisor | Incumbent | 12.38 | No |
Zhang Songnian
| Zhang Songnian | Male | 57 | Supervisor | Leaving office | 54.06 | No |
Shen Yueming
| Shen Yueming | Male | 64 | Supervisor | Leaving office | 20.81 | No |
Zhang Huifen
| Zhang Huifen | Female | 45 | Employee representative supervisor | Leaving office | 9.75 | No |
Chen Yuanzhi
| Chen Yuanzhi | Male | 46 | Independent director | Incumbent | 9.52 | No |
Yu Lieming
| Yu Lieming | Male | 46 | Independent director | Incumbent | 9.52 | No |
Cheng Zhiyong
| Cheng Zhiyong | Male | 44 | Independent director | Incumbent | 3.97 | No |
He Yuanfu
| He Yuanfu | Male | 68 | Independent director | Leaving office | 5.56 | No |
Zhou Haixin
| Zhou Haixin | Male | 48 | Deputy general manager | Incumbent | 328.73 | No |
Zhang Guofu
| Zhang Guofu | Male | 54 | Chief financial officer | Incumbent | 118.61 | No |
Total
| Total | -- | -- | -- | -- | 1,580.83 | -- |
Other information
□ Applicable ? Not applicable
VI. Performance of Duties by Directors During the Reporting Period
1. Board of Directors during this reporting period
| Meeting session | Convening date | Date of disclosure | Meeting resolution |
The 14th Meeting of the FifthBoard of Directors
| The 14th Meeting of the Fifth Board of Directors | April 05, 2023 | April 26, 2024 | Announcement of the Resolution of ROBAM's 14th Meeting of the Fifth Board of Directors |
The 15th Meeting of the FifthBoard of Directors
| The 15th Meeting of the Fifth Board of Directors | June 20, 2023 | June 21, 2023 | Announcement of the Resolution of ROBAM's 15th Meeting of the Fifth Board of Directors |
The 16th Meeting of the FifthBoard of Directors
| The 16th Meeting of the Fifth Board of Directors | August 01, 2023 | August 02, 2023 | Announcement of the Resolution of ROBAM's 16th Meeting of the Fifth Board of Directors |
The 1st Meeting of the SixthBoard of Directors
| The 1st Meeting of the Sixth Board of Directors | August 18, 2023 | August 19, 2023 | Announcement of the Resolution of ROBAM's 1st Meeting of the Sixth Board of Directors |
The 2nd Meeting of the SixthBoard of Directors
| The 2nd Meeting of the Sixth Board of Directors | August 23, 2023 | August 24, 2023 | Announcement of the Resolution of ROBAM's 2nd Meeting of the Sixth Board of Directors |
The 3rd Meeting of the SixthBoard of Directors
| The 3rd Meeting of the Sixth Board of Directors | October 25, 2023 | October 26, 2023 | Announcement of the Resolution of ROBAM's 3rd Meeting of the Sixth Board of Directors |
2023 Full Annual Report
| The 4th Meeting of the Sixth Board of Directors | December 13, 2023 | December 14, 2023 | Announcement of the Resolution of ROBAM's 4th Meeting of the Sixth Board of Directors |
2. Attendance of directors at the board meetings and the general meeting of shareholders
Attendance of directors at the board meetings and the general meeting of shareholdersName ofdirector
| Name of director | Number of board meetings to be attended during this reporting period | Number of board meetings attended on site | Number of board meetings attended by correspondence | Number of board meetings delegated to attend | Number of board meetings absent | Whether not to personally attend the board meeting for two consecutive times | Number of shareholders' meetings attended |
Ren Jianhua
| Ren Jianhua | 7 | 6 | 1 | 0 | 0 | No | 3 |
Ren Fujia
| Ren Fujia | 7 | 6 | 1 | 0 | 0 | No | 3 |
Xia Zhiming
| Xia Zhiming | 4 | 4 | 0 | 0 | 0 | No | 2 |
He Yadong
| He Yadong | 4 | 4 | 0 | 0 | 0 | No | 2 |
Zhao Jihong
| Zhao Jihong | 7 | 6 | 1 | 0 | 0 | No | 3 |
Wang Gang
| Wang Gang | 7 | 6 | 1 | 0 | 0 | No | 3 |
Ren Luozhong
| Ren Luozhong | 3 | 2 | 1 | 0 | 0 | No | 1 |
Shen Guoliang
| Shen Guoliang | 3 | 2 | 1 | 0 | 0 | No | 1 |
Chen Yuanzhi
| Chen Yuanzhi | 7 | 5 | 2 | 0 | 0 | No | 3 |
Yu Lieming
| Yu Lieming | 7 | 6 | 1 | 0 | 0 | No | 3 |
ChengZhiyong
| Cheng Zhiyong | 4 | 3 | 1 | 0 | 0 | No | 2 |
He Yuanfu
| He Yuanfu | 3 | 2 | 1 | 0 | 0 | No | 1 |
Description on failure to personally attend the board meeting for two consecutive times
3. Objections made by directors on relevant matters
Whether the director raises any objection to the relevant matters of the Company
□ Yes ?No
During the reporting period, the directors did not raise any objection to the relevant matters of the Company.
4. Other description on the performance of duties by the directors
Whether the relevant suggestions of the director to the Company have been adopted
□ Yes ?No
Explanation of the relevant suggestions of the director to the Company have or have not been adoptedN/A
VII. Special Committees Under the Board of Directors During the Reporting Period
| Name of committee | Member | Number of meetings held | Convening date | Meeting content |
Audit committee
| Audit committee | He Yuanfu, Chen Yuanzhi, Ren Luozhong | 1 | January 16, 2023 | 1. Review the 2022 Audit Work Plan of the Company |
Audit committee
| Audit committee | He Yuanfu, Chen Yuanzhi, Ren Luozhong | 1 | April 24, 2023 | 1. Review the 2022 Audit Report of the Company; 2. Review the 2022 Internal Control Evaluation Report; 3. Review the Proposal on Renewing the Appointment of the Company's Audit Institution |
2023 Full Annual Report
for 2023;
4. Review the Full Text of First Quarter Report of
the Company in 2023.Audit committee
| Audit committee | Cheng Zhiyong, Chen Yuanzhi, Wang Gang | 1 | August 23, 2023 | 1. Review the Semiannual Report of the Company in 2023 |
Audit committee
| Audit committee | Cheng Zhiyong, Chen Yuanzhi, Wang Gang | 1 | October 25, 2023 | 1. Review the Third Quarter Report of the Company in 2023 |
Nominationcommittee
| Nomination committee | Chen Yuanzhi, He Yuanfu, Ren Jianhua | 1 | August 01, 2023 | 1. Review the Proposal on Nominating the Members of Sixth Board of Directors of the Company |
Remuneration andassessment committee
| Remuneration and assessment committee | Yu Lieming, Chen Yuanzhi, Ren Fujia | 1 | April 25, 2023 | 1. Review The 2023 Stock Option Incentive Plan (draft) of Hangzhou ROBAM Appliances Co., Ltd. and its Abstract; 2. Review the Implementation, Assessment and Management Measures for the 2023 Stock Option Incentive Plan of Hangzhou ROBAM Appliances Co., Ltd.; |
Strategic committee
| Strategic committee | Ren Jianhua, Ren Fujia, Yu Lieming | 1 | August 21, 2023 | 1. Review the Proposal on the Company's New Three-Year Strategic Plan |
VIII. Work of Board of Supervisors
Whether the board of supervisors finds any risk of the Company in the supervision activities during the reporting period
□ Yes ?No
The board of supervisors has no objection to the supervisory matters during the reporting period.IX. Company Employees
1. Number of employees, professional composition and education background
| Number of employees in the parent company at the end of the reporting period (person) | 3,913 |
Number of employees in major subsidiaries at the end of thereporting period (person)
| Number of employees in major subsidiaries at the end of the reporting period (person) | 1,569 |
Total number of employees at the end of the reporting period(person)
| Total number of employees at the end of the reporting period (person) | 5,482 |
Total number of employees receiving salary in the current period(person)
| Total number of employees receiving salary in the current period (person) | 5,466 |
Number of retired employees whose expenses need to be borneby the parent company and major subsidiaries (person)
| Number of retired employees whose expenses need to be borne by the parent company and major subsidiaries (person) | 98 |
Professional composition
Professional compositionProfessional composition categories
| Professional composition categories | Number of professionals (person) |
Production personnel
| Production personnel | 1,850 |
Sales personnel
| Sales personnel | 1,758 |
Technical personnel
| Technical personnel | 881 |
Financial personnel
| Financial personnel | 178 |
Administrative personnel
| Administrative personnel | 815 |
Total
| Total | 5,482 |
Education background
Education backgroundEducation background categories
| Education background categories | Number (person) |
Doctor
| Doctor | 8 |
Master
| Master | 244 |
Bachelor
| Bachelor | 1,618 |
College
| College | 1,040 |
Other
| Other | 2,572 |
Total
| Total | 5,482 |
2023 Full Annual Report
2. Pay policy
The Company has formulated Salary Management Standards and the Performance Management Standards, and established asalary management system based on the post value and centered on the competency and performance evaluation of employees,according to the salary status of the regional market and industry.
3. Training plan
In 2023, the Company carried out various trainings, including Lemon, Blue Whale, Sunflower, Ivy League and other projects aswell as the Elite Plan; As the Company's own mobile learning online platform, Chestnut School played an important role in theachievement transformation of the development course of internal trainer, and the Company's employees' participation in learninghas been greatly improved.
4. Labor outsourcing
? Applicable □ Not applicable
| Total hours of labor outsourcing (hours) | 3,527,583.64 |
Total remuneration paid for labor outsourcing (yuan)
| Total remuneration paid for labor outsourcing (yuan) | 141,340,202.94 |
X. Profit Distribution and Share Capital Increase from Capital SurplusProfit distribution policy during the reporting period, especially the formulation, implementation or adjustment of cash dividendpolicy? Applicable □ Not applicableAfter deliberation and approval at the 5th meeting of the sixth Board of Directors, by taking 944,094,916 shares as the radix (theexisting total share capital of 949,024,050 shares, excluding 4,929,134 shares repurchased), the Company proposed to distributecash dividends of RMB 5 (tax inclusive) for every 10 shares to all shareholders, amounting up to a total of RMB 472,047,458.00.
Description for cash dividend policyWhether it meet the requirements of the Company's articles ofassociation and of the resolutions of shareholders' meeting:
| Whether it meet the requirements of the Company's articles of association and of the resolutions of shareholders' meeting: | Yes |
Whether the dividend distribution standard and proportion arespecific and clear:
| Whether the dividend distribution standard and proportion are specific and clear: | Yes |
Whether relevant decision-making procedures and mechanismsare complete:
| Whether relevant decision-making procedures and mechanisms are complete: | Yes |
Whether the independent directors have performed their dutiesand fulfilled their due roles:
| Whether the independent directors have performed their duties and fulfilled their due roles: | Yes |
If the Company has not distributed cash dividends, the specificreasons should be disclosed, and as well as the measures to betaken next to enhance investor returns:
| If the Company has not distributed cash dividends, the specific reasons should be disclosed, and as well as the measures to be taken next to enhance investor returns: | Not applicable |
Whether the minor shareholders have the chance to fully expresstheir opinions and demands, and whether their legal rights andinterests have been fully protected:
| Whether the minor shareholders have the chance to fully express their opinions and demands, and whether their legal rights and interests have been fully protected: | Yes |
Whether the conditions and procedures are normative andtransparent in case of adjustments or changes of the cash dividendpolicy:
| Whether the conditions and procedures are normative and transparent in case of adjustments or changes of the cash dividend policy: | Yes |
The Company made profits during the reporting period and the profits available for distribution to shareholders of the parentcompany were positive, but no proposal for the distribution of cash dividend was put forward
□ Applicable ? Not applicable
Profit distribution and share capital increase from capital surplus during the reporting period? Applicable □ Not applicable
| Bonus shares per 10 shares (shares) | 0 |
Dividend per 10 shares (yuan) (tax inclusive)
| Dividend per 10 shares (yuan) (tax inclusive) | 5 |
Equity base of distribution plan (shares)
| Equity base of distribution plan (shares) | 944,094,916 |
Amount of cash dividend (yuan) (tax inclusive)
| Amount of cash dividend (yuan) (tax inclusive) | 472,047,458.00 |
Amount of cash dividend in other forms (e.g. share repurchase)(yuan)
| Amount of cash dividend in other forms (e.g. share repurchase) (yuan) | 0.00 |
2023 Full Annual Report
| Amount of cash dividend (including other forms) (yuan) | 472,047,458.00 |
Distributable profit (yuan)
| Distributable profit (yuan) | 9,038,684,224.97 |
Ratio of total amount of cash dividend (including other forms) tototal amount of distributable profit
| Ratio of total amount of cash dividend (including other forms) to total amount of distributable profit | 100% |
Cash dividend distribution in this period
Cash dividend distribution in this periodShould the Company be in a growing stage and have major capital expenditure arrangements, the cash dividend should account for aminimum of 20% of the profit distribution when the profit is distributed.
Should the Company be in a growing stage and have major capital expenditure arrangements, the cash dividend should account for aminimum of 20% of the profit distribution when the profit is distributed.Description for details of profit distribution or share capital increase from capital surplus plan
Description for details of profit distribution or share capital increase from capital surplus plan
According to the standard unqualified audit report issued by ShineWing Certified Public Accountants, the Company's net profitattributable to the parent company owner in 2023 was RMB 1,826,289,990.48 (number of parent company), plus the undistributedprofit (parent company) of RMB 8,156,489,150.49 at the beginning of the year, minus the cash dividend of profit distribution of2022, i.e., RMB 472,047,458.00, minus the cash dividend of special dividend distribution of 2023, i.e., RMB 472,047,458.00, theCompany's profit available to shareholders at the end of 2023 was RMB 9,038,684,224.97.Taking 944,094,916 shares as the radix (the existing total share capital of 949,024,050 shares, excluding 4,929,134 sharesrepurchased), the Company distributed cash dividends of RMB 5 (tax inclusive) for every 10 shares to all shareholders, amounting upto a total of RMB 472,047,458.00.In case of any change due to the listing of new shares, the exercising of equity incentive, the conversion of convertible bonds intoshares, share repurchase, etc. during the period from the disclosure of the distribution plan to the equity registration date when theprofit distribution is implemented, the distribution proportion will be adjusted accordingly according to the principle that the totalamount of cash dividends will remain unchanged.
According to the standard unqualified audit report issued by ShineWing Certified Public Accountants, the Company's net profitattributable to the parent company owner in 2023 was RMB 1,826,289,990.48 (number of parent company), plus the undistributedprofit (parent company) of RMB 8,156,489,150.49 at the beginning of the year, minus the cash dividend of profit distribution of2022, i.e., RMB 472,047,458.00, minus the cash dividend of special dividend distribution of 2023, i.e., RMB 472,047,458.00, theCompany's profit available to shareholders at the end of 2023 was RMB 9,038,684,224.97.Taking 944,094,916 shares as the radix (the existing total share capital of 949,024,050 shares, excluding 4,929,134 sharesrepurchased), the Company distributed cash dividends of RMB 5 (tax inclusive) for every 10 shares to all shareholders, amounting upto a total of RMB 472,047,458.00.In case of any change due to the listing of new shares, the exercising of equity incentive, the conversion of convertible bonds intoshares, share repurchase, etc. during the period from the disclosure of the distribution plan to the equity registration date when theprofit distribution is implemented, the distribution proportion will be adjusted accordingly according to the principle that the totalamount of cash dividends will remain unchanged.
XI. Implementation of the Company's Equity Incentive Plan, Employee Stock OwnershipPlan or Other Employee Incentive Measures? Applicable □ Not applicable
1. Equity incentive
2021 stock option plan:
1. On April 14, 2021, the Company held the 4th meeting of the fifth board of directors, deliberated and adopted the Proposalon 2021 Stock Option Incentive Plan (Draft) of the Company and its Abstract and other relevant proposals, and theindependent directors expressed their agreed independent opinions on the matters related to the Company's stock optionincentive plan. The 4th meeting of the fifth Board of Supervisors of the Company deliberated and adopted the above-mentioned relevant proposals and expressed their consent. The Company disclosed the above matters on April 15, 2021.
2. From April 15, 2021 to April 24, 2021, the Company publicized the names and positions of the incentive objects of the stock
option incentive plan through internal posting. On April 27, 2021, the board of supervisors of the Company issued theReview Opinions and Announcement of the Board of Supervisors on the List of Incentive Objects of the 2021 Stock OptionIncentive Plan. On the same day, the Company disclosed the Self-inspection Report on Insiders' and Incentive Objects'Trading of Company Stock with Inside Information of 2021 Restricted Stock Incentive Plan.
3. On April 30, 2021, the Company held the first extraordinary general meeting of shareholders in 2021, deliberated andadopted the Proposal on 2021 Stock Option Incentive Plan (draft) of the Company and its Abstract and other relevantproposals. The plan was approved by the first extraordinary general meeting of shareholders in 2021, and the board ofdirectors was authorized to determine the grant date of stock option, grant stock option to incentive objects when they meetthe conditions and handle all matters necessary for granting equity.
4. On May 10, 2021, the Company's 6th meeting of the fifth Board of Directors and the 6th meeting of the fifth Board of
Supervisors reviewed and adopted the Proposal on Granting Stock Options to Incentive Objects. The board of supervisorsonce again verified the list of incentive objects granted and expressed their consent. The independent directors of theCompany expressed their independent opinions on this.
5. On April 19, 2022, the Company held the 10th meeting of the fifth Board of Directors and the 10th meeting of the fifth
Board of Supervisors, deliberated and adopted the Proposal on the Cancellation of Partial Stock Options in the 2021 StockOption Incentive Plan and the Proposal on Cancellation of the 2021 Stock Option Incentive Plan for Failure to Meet theExercise Conditions during the First Exercise Period. The board of supervisors verified and expressed their consent. Theindependent directors of the Company expressed their independent opinions thereon.
6. On April 25, 2023, the Company held the 14th meeting of the fifth Board of Directors and the 14th meeting of the fifthBoard of Supervisors, deliberated and adopted the Proposal on the Cancellation of Partial Stock Options in the 2021 StockOption Incentive Plan and the Proposal on Cancellation of the 2021 Stock Option Incentive Plan for Failure to Meet theExercise Conditions during the Second Exercise Period. The board of supervisors verified and expressed their consent. Theindependent directors of the Company expressed their independent opinions thereon.2022 stock option plan:
2023 Full Annual Report
1. On March 31, 2022, the Company held the 9th meeting of the fifth Board of Directors, deliberated and adopted the Proposal
on 2022 Stock Option Incentive Plan (draft) of the Company and its Abstract and other relevant proposals, and theindependent directors expressed their independent consent on the matters related to the Company's stock option incentiveplan. The 9th meeting of the fifth Board of Supervisors of the Company deliberated and adopted the above-mentionedrelevant proposals and issued the consent. The Company disclosed the above matters on April 01, 2022.
2. From April 1, 2022 to April 10, 2022, the Company publicized the names and positions of the incentive objects of the stockoption incentive plan through internal posting. On April 13, 2022, the board of supervisors of the Company issued theReview Opinions and Announcement of the Board of Supervisors on the List of Incentive Objects of the 2022 Stock OptionIncentive Plan. On the same day, the Company disclosed the Self-inspection Report on Insiders' and Incentive Objects'Trading of Company Stock with Inside Information of 2022 Restricted Stock Incentive Plan.
3. On April 21, 2022, the Company held the first extraordinary general meeting of shareholders in 2022, deliberated and
adopted the Proposal on 2022 Stock Option Incentive Plan (draft) of the Company and its Abstract and other relevantproposals. The plan was approved by the first extraordinary general meeting of shareholders in 2022, and the board ofdirectors was authorized to determine the grant date of stock option, grant stock option to incentive objects when they meetthe conditions and handle all matters necessary for granting equity.
4. On May 10, 2022, the Company's 11th meeting of the fifth Board of Directors and the 11th meeting of the fifth Board ofSupervisors deliberated and adopted the Proposal on Granting Stock Options to Incentive Objects. The board of supervisorsonce again verified the list of incentive objects granted and expressed their consent. The independent directors of theCompany expressed their independent opinions on this.
5. On April 25, 2023, the Company held the 14th meeting of the fifth Board of Directors and the 14th meeting of the fifthBoard of Supervisors, deliberated and adopted the Proposal on the Cancellation of Partial Stock Options in the 2022 StockOption Incentive Plan and the Proposal on Cancellation of the 2022 Stock Option Incentive Plan for Failure to Meet theExercise Conditions during the Second Exercise Period. The board of supervisors verified and expressed their consent. Theindependent directors of the Company expressed their independent opinions thereon.2023 stock option plan:
1. On April 25, 2023, the Company held the 14th meeting of the fifth board of directors, deliberated and adopted the Proposalon 2023 Stock Option Incentive Plan (draft) of the Company and its Abstract and other relevant proposals, and theindependent directors expressed their independent consent on the matters related to the Company's stock option incentiveplan. The 14th meeting of the fifth Board of Supervisors of the Company deliberated and adopted the above-mentionedrelevant proposals and expressed their consent. The Company disclosed the above matters on April 26, 2023.
2. From April 26, 2023 to May 08, 2023, the Company publicized the names and positions of the incentive objects of the stock
option incentive plan through internal posting. On May 09, 2023, the board of supervisors of the Company issued the ReviewOpinions and Announcement of the Board of Supervisors on the List of Incentive Objects of the 2023 Stock Option IncentivePlan. On the same day, the Company disclosed the Self-inspection Report on Insiders' and Incentive Objects' Trading ofCompany Stock with Inside Information of 2023 Restricted Stock Incentive Plan.
3. On May 18, 2023, the Company held the first extraordinary general meeting of shareholders in 2022, deliberated andadopted the Proposal on 2023 Stock Option Incentive Plan (draft) of the Company and its Abstract and other relevantproposals. The plan was approved by the first extraordinary general meeting of shareholders in 2022, and the board ofdirectors was authorized to determine the grant date of stock option, grant stock option to incentive objects when they meetthe conditions and handle all matters necessary for granting equity.
4. On June 20, 2023, the Company's 15th meeting of the fifth Board of Directors and the 15th meeting of the fifth Board ofSupervisors deliberated and adopted the Proposal on Granting Stock Options to Incentive Objects. The board of supervisorsonce again verified the list of incentive objects granted and expressed their consent. The independent directors of theCompany expressed their independent opinions on this.Equity incentive obtained by directors and senior management of the Company
□ Applicable ? Not applicable
Evaluation mechanism and incentive of senior managers
1. On April 14, 2021, the Company held the 4th meeting of the fifth board of directors, deliberated and adopted the Proposal
on Business Partner Shareholding Plan (draft) of the Company and its Abstract and other relevant proposals, and theindependent directors expressed their independent consent on the matters related to the Company's business partnershareholding plan. The 4th meeting of the fifth Board of Supervisors of the Company deliberated and adopted the above-mentioned relevant proposals and expressed their consent. The Company disclosed the above matters on April 15, 2021.
2. On April 30, 2021, the Company held the 1t extraordinary general meeting of shareholders in 2021, deliberated and adoptedthe Proposal on Business Partner Shareholding Plan (Draft) of the Company and its Abstract and other relevant proposals.The plan was approved by the first extraordinary general meeting of shareholders in 2021, and the board of directors wasauthorized to determine and handle all matters related to the plan.
2023 Full Annual Report
3. On April 20, 2022, the Company disclosed the Announcement on the Failure to Meet the 2021 Assessment Conditions for the
Business Partner Shareholding Plan. According to relevant provisions of the shareholding plan, in case of a failure ofmeeting the 2021 assessment conditions for the business partner shareholding plan, the Company will not withdraw thespecial funds for the shareholding plan this year.
4. On April 25, 2023, the Company disclosed the Announcement on the Failure to Meet the 2022 Assessment Conditions for the
Business Partner Shareholding Plan. According to relevant provisions of the shareholding plan, in case of a failure ofmeeting the 2022 assessment conditions for the business partner shareholding plan, the Company will not withdraw thespecial funds for the shareholding plan this year.
2. Implementation of the employee stock ownership plan
□ Applicable ? Not applicable
3. Other employee incentives
□ Applicable ? Not applicable
XII. Construction and Implementation of Internal Control System During the ReportingPeriod
1. Construction and implementation of internal control
See the 2023 Internal Control Self-evaluation Report disclosed by the Company on the designated information disclosure websitehttp://www.cninfo.com.cn for details.
2. Details of significant internal control defects discovered during the reporting period
□ Yes ?No
XIII. Management and Control of Subsidiaries during the Reporting Period
| Company name | Integration plan | Integration progress | Problems encountered in integration | Measures taken to resolve the problem | Resolution progress | Follow-up resolution plan |
N/A
| N/A | N/A | N/A | N/A | N/A | N/A | N/A |
XIV. Internal Control Evaluation Report or Internal Control Audit Report
1. Internal control evaluation report
| Full disclosure date of internal control self-evaluation report | April 25, 2024 |
Index of full disclosure of internal controlevaluation report
| Index of full disclosure of internal control evaluation report | Cninfo: Full text of 2023 internal control self-evaluation report of ROBAM |
Proportion of the total assets of the unitincluded in the evaluation scope to the totalassets of the consolidated financialstatement of the Company
| Proportion of the total assets of the unit included in the evaluation scope to the total assets of the consolidated financial statement of the Company | 100.00% |
Proportion of operating income of the unitincluded in the evaluation scope to theoperating income of the consolidatedfinancial statement of the Company
| Proportion of operating income of the unit included in the evaluation scope to the operating income of the consolidated financial statement of the Company | 100.00% |
Defect identification standard
Defect identification standardCategory
| Category | Financial report | Non-financial report |
Qualitative standard
| Qualitative standard | Signs of major defects in the financial report include: 1) Corrupt practice of directors, supervisors and senior management; 2) Misstatement correction of material errors in financial reports that have been announced by the Company; 3) Material misstatement in the current financial report, which is not found by the internal control in the process of operation; | Signs of major defects in the non-financial report include: 1) The defects in non-financial reports are mainly determined according to the influence of the defects on the business process effectiveness and the possibility of occurrence; 2) The defects with high possibility that will seriously reduce the work efficiency or effect, or seriously increase the uncertainty of the effect, |
2023 Full Annual Report
| 4) Ineffective control and supervision of the Company's external and internal financial reports by the audit committee and audit department. Signs of important defects in the financial report include: 1) Failure to select and apply accounting policies in accordance with generally accepted accounting principles; 2) No anti-fraud procedures and control measures have been established; 3) There is no corresponding control mechanism established or no implementation of and no corresponding compensatory control for the accounting treatment of non-routine or special transactions; 4) One or more defects in the control of the final financial reporting process and no reasonable assurance that the financial statements will achieve the objective of authenticity and completeness. Common defects in financial reports refer to control defects other than the major defects and important defects mentioned above. | or make it seriously deviate from the expected goal are major defects. Signs of important defects in the non-financial report include: 1) The defects in non-financial reports are mainly determined according to the influence of the defects on the business process effectiveness and the possibility of occurrence; 2) The defects with high possibility that will significantly reduce the work efficiency or effect, or significantly increase the uncertainty of the effect, or make it significantly deviate from the expected goal are important defects. Signs of common defects in the non-financial report include: 1) The defects in non-financial reports are mainly determined according to the influence of the defects on the business process effectiveness and the possibility of occurrence; 2) The defects with low possibility that will reduce the work efficiency or effect, or increase the uncertainty of the effect, or make it deviate from the expected goal are common defects. |
Quantitation standard
| Quantitation standard | The quantitative standard takes the operating income and the total assets as the measurement index. 1) The internal control defects that may cause losses or whose losses are related to the income statement are measured on the basis of operating income: Major defect: misstatement amount > 2% of operating income; 2) The internal control defects that may cause losses or whose losses are related to the assets management are measured on the basis of total assets: Major defect: misstatement amount > 1% of total assets; The quantitative standard takes the operating income and the total assets as the measurement index. 1) The internal control defects that may cause losses or whose losses are related to the income statement are measured on the basis of operating income: Important defect: 1% of operating income < misstatement amount < 2% of operating income; 2) The internal control defects that may cause losses or whose losses are related to the assets management are measured on the basis of total assets: Important defect: 0.5% of total assets < misstatement amount < 1% of total assets; The quantitative standard takes the operating income and the total assets as the | Major defect: direct property loss > RMB 20 million; Important defect: RMB 5 million < direct property loss < RMB 20 million; Common defect: direct property loss < RMB 5 million; |
2023 Full Annual Report
measurement index.
1) The internal control defects that may
cause losses or whose losses arerelated to the income statement aremeasured on the basis of operatingincome:
Common defect: misstatement amount <1% of operating income;
2) The internal control defects that may
cause losses or whose losses arerelated to the assets management aremeasured on the basis of total assets:
Common defect: misstatement amount <
0.5% of total assets;
Number of major defects in financialreports
| Number of major defects in financial reports | 0 |
Number of major defects in non-financialreports
| Number of major defects in non-financial reports | 0 |
Number of important defects in financialreports
| Number of important defects in financial reports | 0 |
Number of important defects in non-financial reports
| Number of important defects in non-financial reports | 0 |
2. Internal control audit report
? Applicable □ Not applicable
Deliberations in the internal control audit reportOn December 31, 2023, ROBAM maintained effective internal control over financial reporting in all major aspects in accordancewith the Basic Standards for Enterprise Internal Control and relevant regulations.
On December 31, 2023, ROBAM maintained effective internal control over financial reporting in all major aspects in accordancewith the Basic Standards for Enterprise Internal Control and relevant regulations.Disclosure of internal control audit report
| Disclosure of internal control audit report | Disclosure |
Disclosure date of the full text of internal control audit report
| Disclosure date of the full text of internal control audit report | April 25, 2024 |
Disclosure index of the full text of internal control audit report
| Disclosure index of the full text of internal control audit report | Cninfo: Full text of 2023 internal control audit report of ROBAM |
Type of the opinions on internal control audit report
| Type of the opinions on internal control audit report | Standard unqualified opinions |
Whether there are significant defects in non-financial reports
| Whether there are significant defects in non-financial reports | No |
Whether the accounting firm issues an internal control audit report with non-standard opinions
□ Yes ?No
Whether the internal control audit report issued by the accounting firm is consistent with the self-evaluation report of the board ofdirectors? Yes □ No
2023 Full Annual Report
Section 5 Environmental and Social Responsibility
I. Major Environmental IssuesWhether the listed company and its subsidiaries are key pollutant discharging units announced by environmental protectionauthorities
□ Yes ?No
Administrative punishment for environmental problems during the reporting period
| Company or subsidiary name | Cause of punishment | Violation details | Punishment results | Impact on production and operation of listed companies | Rectification measures of the Company |
N/A
| N/A | N/A | N/A | N/A | N/A | N/A |
Other environmental information disclosed by reference to key pollutant discharging unitsN/AMeasures taken to reduce carbon emissions during the reporting period and relevant effects
□ Applicable ? Not applicable
Reasons for non-disclosure of other environmental informationN/AII. Social ResponsibilitySee the 2023 Environmental, Social and Corporate Governance Report disclosed by the Company on the designated informationdisclosure media http://www.cninfo.com.cn for details.III. Consolidate and Expand the Achievements of Poverty Alleviation and RuralRevitalizationSee the 2023 Environmental, Social and Corporate Governance Report disclosed by the Company on the designated informationdisclosure media http://www.cninfo.com.cn for details.
2023 Full Annual Report
Section 6 Important Matters
I. Performance in Fulfilling Commitments
1. Commitments fulfilled within and not fulfilled by the end of the reporting period by the Company'sactual controller, shareholders, related parties, acquirer and other commitment parties? Applicable □ Not applicable
| Commitment reason | Commitment party | Commitment type | Commitment content | Commitment time | Time limit for acceptance | Degree of performance |
Commitmentmade at the timeof IPO orrefinancing
| Commitment made at the time of IPO or refinancing | Directors, supervisors and senior management directly or indirectly holding shares of the Company | Commitment to restriction on sales of shares | After the expiry of the 36-month sales restriction period, the shares transferred each year during his/her tenure shall not exceed 25% of the total number of shares held directly or indirectly in the Company; the Company shares directly or indirectly held shall not be transferred within six months after the resignation. | November 23, 2010 | Long-term | Strict performance |
Commitmentmade at the timeof IPO orrefinancing
| Commitment made at the time of IPO or refinancing | Hangzhou ROBAM Industrial Group Co., Ltd.; Ren Jianhua | Commitment on avoiding horizontal competition | 1. The Company/I and other enterprises under the control of the Company/me do not, and will not, directly or indirectly, engage in any activities that constitute horizontal competition with the existing and future business of ROBAM and its holding subsidiaries; 2. If any business opportunity obtained the Company/I and other enterprises under the control of the Company/me from any third party constitutes or may constitute substantial competition with the business of ROBAM, the Company/I will immediately notify ROBAM and transfer such business opportunity to ROBAM; 3. The Company/I and other enterprises under the control of the Company/me commit not to provide technical information, process flow, marketing channels or other trade secrets to other companies, enterprises, organizations or individuals whose business constitutes competition with the business of ROBAM. | November 23, 2010 | Long-term | Strict performance |
Whether thecommitment isfulfilled on time
| Whether the commitment is fulfilled on time | Yes |
If thecommitment isnot fulfilled ontime, the specificreasons for thefailure offulfilling thecommitment andthe next step ofthe work planshould bedetailed
| If the commitment is not fulfilled on time, the specific reasons for the failure of fulfilling the commitment and the next step of the work plan should be detailed | N/A |
2. In case the Company's asset or project saw earning expectation, and the reporting period is stillcovered by the term of the earning expectation, the Company shall make a statement about the assetor project fulfilling the original expectation and the reasons thereof.
□ Applicable ? Not applicable
2023 Full Annual Report
II. Non-operating Occupation of Funds of Listed Companies by Controlling Shareholdersand Other Related Parties
□ Applicable ? Not applicable
No non-operating occupation of funds of listed companies by controlling shareholders and other related parties during thereporting period.
III. Illegal External Guarantee
□ Applicable ? Not applicable
No illegal external guarantee of the Company during the reporting period.IV. Statement of the Board of Directors on the Latest "Non-standard Audit Report"
□ Applicable ? Not applicable
V. Statement of the Board of Directors, the Board of Supervisors and IndependentDirectors (if any) on the "Non-standard Audit Report" of the Accounting Firm during theReporting Period
□ Applicable ? Not applicable
VI. Description of Changes in Accounting Policy and Accounting Estimates or SignificantAccounting Error Correction as Compared to the Financial Statements of the PreviousYear
□ Applicable ? Not applicable
There is no change in accounting policy, accounting estimate or significant accounting error correction in the reporting period.
VII. Description of Changes in the Scope of Combined Financial Statements as Comparedto Financial Statements of the Previous Fiscal Year
□ Applicable ? Not applicable
No changes in the scope of combined financial statements in the reporting period.VIII. Appointment of and Dismissal of Accounting FirmsAccounting firm currently appointed
| Name of Chinese accounting firm | Shinewing Certified Public Accountants (special general partnership) |
Remuneration (10,000 yuan)
| Remuneration (10,000 yuan) | 145 |
Term of audit services
| Term of audit services | 5 |
CPAs
| CPAs | Lei Yongxin, Wang Qing |
Term of auditing services of CPAs
| Term of auditing services of CPAs | 5 |
Has the accounting firm been changed within the reporting period?
□ Yes ?No
Employment of internal control audit accounting firm, financial advisor or sponsor? Applicable □ Not applicableShineWing Certified Public Accountants (Special general partnership) served as the internal control audit agency of the Companyin 2023, with an audit fee of RMB 1,450,000, including: RMB 1,150,000 for financial statement audit and RMB 300,000 forinternal control audit.
IX. Delisting Confronted upon Disclosure of the Annual Report
□ Applicable ? Not applicable
2023 Full Annual Report
X. Bankruptcy Reorganization
□ Applicable ? Not applicable
No bankruptcy reorganization of the Company during the reporting period.
XI. Major Litigation, Arbitration Matters
□ Applicable ? Not applicable
No major litigation or arbitration matters of the Company during the reporting period.
XII. Punishment and Rectification
□ Applicable ? Not applicable
No punishment or rectification of the Company during the reporting period.XIII. Credit Conditions of the Company, its Controlling Shareholders and ActualControllers
□ Applicable ? Not applicable
XIV. Major Related Transactions
1. Related transactions related to daily operation
□ Applicable ? Not applicable
No related transactions related to daily operation of the Company during the reporting period.
2. Related transactions arising from the acquisition or sale of assets or equity
□ Applicable ? Not applicable
No Related transactions arising from the acquisition or sale of assets or equity of the Company during the reporting period.
3. Related transactions of joint foreign investment
□ Applicable ? Not applicable
No related transactions of joint foreign investment of the Company during the reporting period.
4. Related claims and debts
□ Applicable ? Not applicable
No related claims and debts of the Company during the reporting period.
5. Transactions with related financial companies
□ Applicable ? Not applicable
There is no deposit, loan, credit or other financial business between the Company and the related financial companies and therelated parties.
6. Transactions between the financial companies controlled by the Company and related parties
□ Applicable ? Not applicable
There is no deposit, loan, credit or other financial business between the financial companies controlled by the Company and therelated parties.
7. Other major related transactions
□ Applicable ? Not applicable
No other major related transactions of the Company during the reporting period.
2023 Full Annual Report
XV. Major Contracts and Their Performance
1. Trusteeship, contracting and lease
(1) Trusteeship
□ Applicable ? Not applicable
No trusteeship of the Company during the reporting period.
(2) Contracting
□ Applicable ? Not applicable
No contracting of the Company during the reporting period.
(3) Lease
□ Applicable ? Not applicable
No lease of the Company during the reporting period.
2. Major guarantee
□ Applicable ? Not applicable
No major guarantee of the Company during the reporting period.
3. Entrusted cash asset management
(1) Entrusted financing
? Applicable □ Not applicableEntrusted financing during the reporting period
Unit: 10,000 yuan
| Specific type | Source of funds for entrusted financing | Amount incurred in entrusted financing | Outstanding balance | Overdue amount not recovered | Overdue amount of impairment accrued for financial management not recovered |
Bank financialproducts
| Bank financial products | Owned fund | 301,000 | 321,000 | 0 | 0 |
Total
| Total | 301,000 | 321,000 | 0 | 0 |
Specific circumstance of high-risk entrusted financing with significant single amount or with low security and poor liquidity
□ Applicable ? Not applicable
The entrusted financing is expected not to recover the principal or has other circumstances that may cause impairment
□ Applicable ? Not applicable
(2) Entrusted loans
□ Applicable ? Not applicable
No entrusted loans of the Company during the reporting period.
4. Other major contracts
□ Applicable ? Not applicable
No other major contracts of the Company during the reporting period.
XVI. Description of Other Important Events
□ Applicable ? Not applicable
No other important events to be described during the reporting period.
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XVII. Major Events of Subsidiaries
□ Applicable ? Not applicable
2023 Full Annual Report
Section 7 Changes in Shares and Shareholders
I. Change in Shares
1. Change in shares
Unit: share
| Before this change | Increase/decrease (+, -) | After this change | |||||||
| Quantity | Proportion | New issue of shares | Share donation | Share capital increase from reserved funds | Other | Subtotal | Quantity | Proportion | |
I. Restricted shares
| I. Restricted shares | 12,053,269 | 1.27% | 208,578 | 208,578 | 12,261,847 | 1.29% |
1. State shareholding
| 1. State shareholding |
2. State legal person
shareholding
| 2. State legal person shareholding |
3. Other domestic
shareholding
| 3. Other domestic shareholding | 12,053,269 | 1.27% | 208,578 | 208,578 | 12,261,847 | 1.29% |
Wherein: domestic legalperson shareholding
| Wherein: domestic legal person shareholding |
Domestic natural personshareholding
| Domestic natural person shareholding | 12,053,269 | 1.27% | 208,578 | 208,578 | 12,261,847 | 1.29% |
4. Foreign shareholding
| 4. Foreign shareholding |
Wherein: foreign legalperson shareholding
| Wherein: foreign legal person shareholding |
Foreign natural personshareholding
| Foreign natural person shareholding |
II. Unrestricted shares
| II. Unrestricted shares | 936,970,781 | 98.73% | -208,578 | -208,578 | 936,762,203 | 98.71% |
1. RMB common share
| 1. RMB common share | 936,970,781 | 98.73% | -208,578 | -208,578 | 936,762,203 | 98.71% |
2. Foreign shares listed in
China
| 2. Foreign shares listed in China |
3. Foreign shares listed
abroad
| 3. Foreign shares listed abroad |
4. Other
| 4. Other |
III. Total amount of shares
| III. Total amount of shares | 949,024,050 | 100.00% | 0 | 0 | 949,024,050 | 100.00% |
Causes for change in shares
□ Applicable ? Not applicable
Approval of changes in shares
□ Applicable ? Not applicable
Transfer of share changes
□ Applicable ? Not applicable
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Influence of share changes on the basic EPS, diluted EPS, net assets per share attributable to common shareholders of theCompany and other financial indexes in the most recent year and the most recent period
□ Applicable ? Not applicable
Other information the Company deems necessary or required by the securities regulatory authorities to disclose
□ Applicable ? Not applicable
2. Changes in restricted shares
? Applicable □ Not applicable
Unit: share
| Shareholder's name | Number of restricted shares at the beginning of the period | Number of restricted shares increased in current period | Number of shares released from restricted sale in current period | Number of restricted shares at the end of the period | Reasons for restricted sale | Date of lifting the restricted sale |
Zhang Songnian
| Zhang Songnian | 625,734 | 208,578 | 0 | 834,312 | Resigned from the board of supervisors at the end of term of office | 6 months after expiration of term of office |
Total
| Total | 625,734 | 208,578 | 0 | 834,312 | -- | -- |
II. Securities Issuance and Listing
1. Securities issuance (excluding preferred shares) during the reporting period
□ Applicable ? Not applicable
2. Description of changes in the total number of shares, shareholder structure, asset and liabilitystructure of the Company
□ Applicable ? Not applicable
3. Existing internal employee shares
□ Applicable ? Not applicable
III. Shareholders and Actual Controllers
1. Number and shareholding of the Company's shareholders
Unit: share
| Total number of common shareholders at the end of the reporting period (household) | 63,957 | Total number of common shareholders at the end of the previous month before the disclosure date of the annual report (household) | 51,077 | Total number of preferred shareholders with voting rights restored at the end of the reporting period (if any) (see Note 8) | 0 | Total number of preferred shareholders with voting rights restored at the end of the previous month before the disclosure date of the annual report (if any) (see Note 8) | 0 |
Shareholdings of the shareholders holding more than 5% shares or the top 10 shareholders (excluding shares lent through refinancing)
Shareholdings of the shareholders holding more than 5% shares or the top 10 shareholders (excluding shares lent through refinancing)Shareholder's name
| Shareholder's name | Shareholder nature | Shareholding ratio | Number of shares held at the end of the reporting period | Increase or decrease during the reporting period | Number of shares held with limited sales conditions | Number of shares held with unlimited sales conditions | Pledge, mark or freeze | |
| Status of shares | Quantity | |||||||
2023 Full Annual Report
| Hangzhou Robam Industrial Group Co., Ltd. | Domestic non-state legal person | 49.68% | 471,510,000 | 0.00 | 471,510,000 |
Hong Kong SecuritiesClearing Company Ltd.
| Hong Kong Securities Clearing Company Ltd. | Overseas legal person | 7.23% | 68,586,135 | -20,510,396.00 | 68,586,135 |
TEMASEKFULLERTON ALPHAPTELTD
| TEMASEK FULLERTON ALPHA PTELTD | Overseas legal person | 1.82% | 17,265,617 | 535,556.00 | 17,265,617 |
Shen Guoying
| Shen Guoying | Domestic natural person | 1.29% | 12,240,000 | 0.00 | 12,240,000 |
National Social SecurityFund 413 Portfolio
| National Social Security Fund 413 Portfolio | Other | 1.28% | 12,115,200 | 12,115,200.00 | 12,115,200 |
Hangzhou JinchuangInvestment Co., Ltd.
| Hangzhou Jinchuang Investment Co., Ltd. | Domestic non-state legal person | 0.70% | 6,640,085 | 0.00 | 6,640,085 |
Hangzhou YinchuangInvestment Co., Ltd.
| Hangzhou Yinchuang Investment Co., Ltd. | Domestic non-state legal person | 0.67% | 6,318,000 | 0.00 | 6,318,000 |
Ren Jianhua
| Ren Jianhua | Domestic natural person | 0.62% | 5,923,150 | 0.00 | 4,442,362 | 1,480,788 |
Industrial andCommercial Bank ofChina Limited－Penghua selects hybridsecurities investmentfunds with ingenuity
| Industrial and Commercial Bank of China Limited－Penghua selects hybrid securities investment funds with ingenuity | Other | 0.61% | 5,787,141 | 0.00 | 5,787,141 |
China Pacific LifeInsurance Co., Ltd -Traditional -General InsuranceProducts
| China Pacific Life Insurance Co., Ltd - Traditional - General Insurance Products | Other | 0.61% | 5,762,400 | 2,358,557.00 | 5,762,400 |
Situation of strategic investors or generallegal persons becoming the top 10shareholders due to the allotment of newshares (if any) (see note 3)
| Situation of strategic investors or general legal persons becoming the top 10 shareholders due to the allotment of new shares (if any) (see note 3) | N/A |
Description of the above-mentionedshareholder association or concerted action
| Description of the above-mentioned shareholder association or concerted action | The actual controller of the Company's controlling shareholder Hangzhou ROBAM Industrial Group Co., Ltd. and the shareholder Hangzhou Jinchuang Investment Co., Ltd. is Mr. Ren Jianhua, and the natural person shareholder Shen Guoying is the wife of Ren Jianhua. The above shareholders have the possibility of acting in unison. |
Description of the above shareholdersinvolved in entrusting / entrusted votingright and waiver of voting right
| Description of the above shareholders involved in entrusting / entrusted voting right and waiver of voting right | N/A |
Special note on the existence of specialrepurchase accounts among the top 10shareholders (if any) (see Note 10)
| Special note on the existence of special repurchase accounts among the top 10 shareholders (if any) (see Note 10) | N/A |
Shareholding of top 10 shareholders with unlimited sales conditions
Shareholding of top 10 shareholders with unlimited sales conditionsShareholder's name
| Shareholder's name | Number of shares with unlimited sales conditions held at the end of the reporting period | Share type | |
| Share type | Quantity | ||
Hangzhou Robam Industrial Group Co.,Ltd.
| Hangzhou Robam Industrial Group Co., Ltd. | 471,510,000 | RMB common share | 471,510,000 |
Hong Kong Securities Clearing CompanyLtd.
| Hong Kong Securities Clearing Company Ltd. | 68,586,135 | RMB common share | 68,586,135 |
TEMASEK FULLERTON ALPHA PTELTD
| TEMASEK FULLERTON ALPHA PTE LTD | 17,265,617 | RMB common share | 17,265,617 |
Shen Guoying
| Shen Guoying | 12,240,000 | RMB commo | 12,240,000 |
2023 Full Annual Report
n shareNational Social Security Fund 413Portfolio
| National Social Security Fund 413 Portfolio | 12,115,200 | RMB common share | 12,115,200 |
Hangzhou Jinchuang Investment Co., Ltd.
| Hangzhou Jinchuang Investment Co., Ltd. | 6,640,085 | RMB common share | 6,640,085 |
Hangzhou Yinchuang Investment Co., Ltd.
| Hangzhou Yinchuang Investment Co., Ltd. | 6,318,000 | RMB common share | 6,318,000 |
Industrial and Commercial Bank of ChinaLimited－Penghua selects hybrid securitiesinvestment funds with ingenuity
| Industrial and Commercial Bank of China Limited－Penghua selects hybrid securities investment funds with ingenuity | 5,787,141 | RMB common share | 5,787,141 |
China Pacific Life Insurance Co., Ltd -Traditional - General Insurance Products
| China Pacific Life Insurance Co., Ltd - Traditional - General Insurance Products | 5,762,400 | RMB common share | 5,762,400 |
CITIC Securities Company Limited -Social Security Fund 1106 Portfolio
| CITIC Securities Company Limited - Social Security Fund 1106 Portfolio | 5,565,600 | RMB common share | 5,565,600 |
Description of the association or concertedaction between top 10 public shareholderswith unlimited sales conditions, andbetween top 10 public shareholders withunlimited sales conditions and top 10shareholders
| Description of the association or concerted action between top 10 public shareholders with unlimited sales conditions, and between top 10 public shareholders with unlimited sales conditions and top 10 shareholders | The actual controller of the Company's controlling shareholder Hangzhou ROBAM Industrial Group Co., Ltd. and the shareholder Hangzhou Jinchuang Investment Co., Ltd. is Mr. Ren Jianhua, and the natural person shareholder Shen Guoying is the wife of Ren Jianhua. The above shareholders have the possibility of acting in unison. |
Securities margin trading business attendedby top 10 common shareholders (if any)(see note 4)
| Securities margin trading business attended by top 10 common shareholders (if any) (see note 4) | N/A |
Lending of shares by the top ten shareholders in the refinancing business
□ Applicable ? Not applicable
Change in the top ten shareholders from the previous period
□ Applicable ? Not applicable
Whether the Company's top 10 common shareholders and op 10 common shareholders with unlimited sales conditions agreed on arepurchase transaction during the reporting period
□ Yes ?No
The Company's top 10 common shareholders and op 10 common shareholders with unlimited sales conditions did not agree on arepurchase transaction during the reporting period
2. Controlling shareholders of the Company
Nature of controlling shareholder: natural person holdingType of controlling shareholder: legal person
| Controlling shareholder's name | Legal Representative / Head of Unit | Date of establishment | Organization code | Main business |
Hangzhou RobamIndustrial Group Co.,Ltd.
| Hangzhou Robam Industrial Group Co., Ltd. | Ren Jianhua | March 22, 1995 | 913301101438402503 | Industrial investment, import and export of goods |
Equity of other domesticand foreign listedcompanies controlledand participated bycontrolling shareholdersduring the reportingperiod
| Equity of other domestic and foreign listed companies controlled and participated by controlling shareholders during the reporting period | The controlling shareholder of Hangzhou Nbond Nonwoven Co., Ltd., and the participating shareholder of Zhejiang CFMOTO Power Co., Ltd., Hangzhou Fortune Gas Cryogenic Group Co., Ltd. and Hangzhou SFR Chain Technology Co., Ltd. |
Change of controlling shareholders during the reporting period
2023 Full Annual Report
□ Applicable ? Not applicable
No change in controlling shareholders during the reporting period.
3. Actual controller of the Company and the person acting in concertNature of actual controller: domestic natural personType of actual controller: natural person
| Actual controller's name | Relationship with actual controller | Nationality | Whether to obtain the right of residence in other countries or regions |
Ren Jianhua
| Ren Jianhua | Self | Chinese | No |
Main occupations and positions
| Main occupations and positions | Please refer to the resume of the Company's directors for details |
Domestic and foreign listedcompanies that have held sharesin the past 10 years
| Domestic and foreign listed companies that have held shares in the past 10 years | Actual controller of Hangzhou ROBAM Appliances Co., Ltd. and Hangzhou Nbond Nonwoven Co., Ltd. |
Changes in actual controller during the reporting period
□ Applicable ? Not applicable
No change in actual controller during the reporting period.Block diagram of property right and control relationship between the Company and actual controller
The actual controller controls the Company through trust or other asset management methods
□ Applicable ? Not applicable
4. The cumulative number of pledged shares of the Company's controlling shareholder or the largestshareholder and its persons acting in concert accounts for 80% of the Company's shares held bythem
□ Applicable ? Not applicable
5. Other legal person shareholders holding more than 10%
□ Applicable ? Not applicable
6. Restricted share reduction of controlling shareholders, actual controller, reorganizers and othercommitment subjects
□ Applicable ? Not applicable
IV. Specific Implementation of Share Repurchase in the Reporting Period
Implementation progress of share repurchase
□ Applicable ? Not applicable
Implementation progress of reducing repurchased shares by centralized competitive bidding trading
□ Applicable ? Not applicable
Ren Jianhua
ROBAM Group
Jinchuang
Investment
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Section 8 Information Related to Preferred Shares
□ Applicable ? Not applicable
No preferred shares of the Company during the reporting period.
2023 Full Annual Report
Section 9 Bond-related Information
□ Applicable ? Not applicable
2023 Full Annual Report
Section 10 Financial Report
I. Audit Report
| Type of audit opinion | Standard unqualified opinion |
Date of signing of audit report
| Date of signing of audit report | April 24, 2024 |
Name of audit institution
| Name of audit institution | Shinewing Certified Public Accountants (special general partnership) |
Audit Report No.
| Audit Report No. | XYZH/2024BJAA10B0229 |
Name of Certified Public Accountant
| Name of Certified Public Accountant | Lei Yongxin, Wang Qing |
Main body of audit reportAudit Report
XYZH/2024BJAA10B0229Hangzhou ROBAM Appliances Co., Ltd.
To all shareholders of Hangzhou ROBAM Appliances Co., Ltd.:
? Audit opinionWe have audited the accompanying financial statements of Hangzhou ROBAM Appliances Co., Ltd.(hereinafter referred to as ROBAM), including the consolidated balance sheet and the balance sheet ofparent company as of December 31, 2023, consolidated income statement and income statement of parentcompany, consolidated cash flow statement and cash flow statement of parent company, consolidatedstatement of change in equity and statement of change in equity of parent company for the year 2023 andnotes to relevant financial statements.In our opinion, the attached financial statements of your company have been prepared in accordance withthe provisions of the Accounting Standards for Business Enterprises and give a true and fair view of theconsolidated financial position and financial position of parent company of ROBAM as of December 31,2023 and of the financial performance and cash flows for the year 2023 in all significant terms.
? Basis for audit opinionWe conducted our audit in accordance with the Standards on Auditing for Certified Public Accountants.The "responsibility of certified public accountants for audit of financial statements" in the audit reportfurther expounds our responsibilities under such standards. We were independent of ROBAM and fulfillother responsibilities in terms of professional ethics according to the code of professional ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion.
? Key audit items
The key audit items are those that we consider most important to audit the financial statements of thecurrent period in our professional judgment. The response to these items is based on the audit of thefinancial statements as a whole and the formation of an audit opinion. We do not comment on these itemsseparately. We have identified the following items as key audit items to be communicated in the auditreport.
1. Revenue recognition - agency model and engineering channelsKey audit items
| Key audit items | Response in audit |
| Refer to Notes to financial statements IV. 34 and VI. 39 Operating income and operating cost. | For the income recognition of the agency mode and engineering channels, the audit procedures we implemented mainly include: 1. Understand key internal controls related to income recognition, |
2023 Full Annual Report
| In 2023, the operating income of ROBAM was RMB 1,120,189.58, representing an increase of RMB 930,395,200 as compared to 2022, including the agency mode income of RMB 2,922,898,600 and the engineering channel income of RMB 2,075,246,500, totally accounting for 44.62% of revenue of the period. Since the agency mode income and engineering channel income account for large proportion in the operating income and are one of the key performance indicators of ROBAM, there may be an inherent risk that the management may recognize the income in the wrong way to reach the specific goal or expected goal. Therefore, we regard income recognition as a key audit issue. | evaluate and test the effectiveness of internal control design and implementation; 2. Check the information of the shareholders and main personnel of the agency company and evaluate whether there is any correlation; 3. Evaluate whether the income recognition method and recognition time point comply with the relevant provisions of the Accounting Standards for Business Enterprises in combination with the contract terms and business nature and the terms related to the time point of commodity control transfer; 4. Carry out substantive analysis procedures on operating income and gross margin ratio by channels, customers, products, etc., identify whether there are significant or abnormal fluctuations, and analyze the causes of fluctuations; 5. Check the original documents of the income recognition for major customers according to the income recognition policy and settlement process and evaluate the authenticity and accuracy of operating income recognition; 6. Confirm current sales to main customers by sampling combined with the confirmation of accounts receivable; 7. Carry out the cut-off test procedure of income, check the supporting documents such as outbound delivery order and acceptance certificate for the operating income recognized before and after the balance sheet date, and evaluate whether the operating income is recognized within an appropriate period; 8. Check whether the information relating to operating income has been properly presented and disclosed in the financial statements. |
| 2. Impairment of accounts receivable | |
| Key audit items | Response in audit |
| Refer to Notes to financial statements IV. 13, and VI. 4 Accounts receivable. As of December 31, 2023, the balance of accounts receivable was RMB 3,034,197,200, and the provision for bad debt was RMB 1,224,181,600. Due to the large amount of accounts receivable at the end of the period, the management needs to use material accounting estimate and judgment when determining the recoverable amount, so we regard the impairment of accounts receivable as the key audit items. | For the impairment of accounts receivable, the audit procedures we implemented mainly include: 1. Understand key internal controls for accounts receivable of Robam, evaluate and test the effectiveness of internal control design and implementation; 2. Check the contracts of main customers according to the income status, understand the settlement terms, pay attention to the customers who have not made payment after the settlement credit period, and analyze the reasons. Judge the solvency of customers by understanding their operating and financial conditions; 3. Analyze the implementation of the new financial instrument standards for receivables, including the rationality of determination and estimation of the expected credit loss model for the receivables of Robam, calculate the expected credit loss amount on the balance sheet date, and analyze whether the credit loss is fully accounted for in the receivables period; 4. Verify the rationality of expected credit loss of receivables combined with the receivables confirmation procedure and post-dated collection by analyzing the aging of accounts receivable; 5. Check the post-dated recovery status of accounts receivable from main customers, record the amount of accounts receivable |
2023 Full Annual Report
collected after the post-dated period, and check the supportingdocuments, such as bank receipt and other vouchers, for thosewith large amounts of notes receivable;
6. Check whether the information relating to accounts receivablehas been properly presented and disclosed in the financialstatements.
? Other informationThe management of ROBAM (hereinafter referred to as the management) is responsible for otherinformation, including the information covered in ROBAM annual report for 2023, but excluding thefinancial statements and our audit report.Our audit opinion on the financial statements does not cover other information and we does not expressany form of verification conclusions on other information.Combined with our audit of the financial statements, it's our responsibility to read other information. Inthis process, we shall consider whether material inconsistency or material misstatement of otherinformation with the financial statements or the situation understood by us in the audit process.Based on the work that has been executed by us, we should report the fact of material misstatementconfirmed in other information. We have nothing to report in this regard.? Responsibility of management and government for the financial statementsThe management is responsible for preparing the financial statements in accordance with the provisions ofthe Accounting Standards for Business Enterprises and giving a true and fair view; designing,implementing and maintaining necessary internal control, so that the financial statements are free frommaterial misstatement, whether due to fraud or error.When preparing the financial statements, the management is responsible for evaluating the going-concernability of ROBAM, disclosing the matters related to the going-concern (if applicable) and using the going-concern assumption, unless the management plans to liquidate ROBAM or stop operation or no otherrealistic options.The government is responsible for supervising the financial reporting process of ROBAM.
? Responsibility of certified public accountants for audit of financial statements
Our goal is to obtain reasonable guarantee on inexistence of the material misstatement of the financialstatements whether due to fraud or error and to issue an audit report including audit opinion. Reasonableguarantee is high level guarantee, but it cannot guarantee that a material misstatement of the audit executedaccording to the auditing standards will always be found. Misstatement may be caused by fraud or error. Ifthe reasonable expected misstatements may affect the economic decision made by the financial statementuser according to the financial statements, whether individually or collectively, the misstatement isgenerally believed material.We made professional judgment and maintained professional skepticism in the audit process according tothe auditing standards. We also performed the following:
1. Identify and assess the risks of material misstatement of the financial statements, whether due tofraud or error, design and implement audit procedures to address these risks, and obtain sufficientand appropriate audit evidence as the basis for audit opinion. Since the fraud may involvecollusion, forge, intentional omission, false statement or above internal control, the risk ofmaterial misstatement caused by fraud is higher than that caused by error.
2. Understand internal control related to the audit in order to design audit procedures that areappropriate in the circumstances.
3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
2023 Full Annual Report
estimates and relevant disclosure.
4. Draw a conclusion about the appropriateness of the going-concern assumption used by the
management. Meanwhile, draw a conclusion about the major uncertainty of the matters orcircumstances possibly resulting in major concerns about the going-concern ability of ROBAMaccording to the audit evidence obtained. If we draw a conclusion that major uncertainty exists,the auditing standards require us to request the statement user to notice relevant disclosure in thefinancial statements in the audit report; in case of insufficient disclosure, we should issue amodified audit report. Our conclusion is made on the basis of the information available as of theaudit report date. However, the future matters or circumstances may result in going concernfailure of Robam.
5. Evaluate the overall presentation, structure and content of the financial statements and evaluatewhether the financial statements give a true and fair view of relevant transactions and matters.
6. Obtain adequate and appropriate audit evidence for the financial information of ROBAM entityor business activities to express an opinion on the financial statements. We are responsible forguiding, supervising and implementing the group audit and take full responsibility for the auditopinions.We communicate with the governance on the planned audit scope, time arrangement and major auditfindings, including the internal control defects identified by us in the audit and worthing attention.We also provide the governance with a statement of compliance with the ethical requirements relating toour independence and communicate with the governance with respect to all relations and other matters thatmay reasonably be considered to affect our independence and the relevant precautions (if applicable).From the items communicated with the governance, we determine which items are most important to theaudit of current financial statements and thus constitute the key audit items. We describe these items in ouraudit report, unless the disclosure of these matters is prohibited by law or regulation, or, in rarecircumstances, we determine that we should not communicate the items in our audit report if it isreasonably expected that the negative consequences of communicating an item outweigh the benefits in thepublic interest.II. Financial StatementsUnit of statements in financial notes: CNY
1. Consolidated Balance Sheet
Unit: Hangzhou ROBAM Appliances Co., Ltd.
December 31, 2023
Unit: yuan
| Item | December 31, 2023 | January 01, 2023 |
Current assets:
| Current assets: |
Monetary capital
| Monetary capital | 1,985,050,745.11 | 5,292,762,670.94 |
Deposit reservation for balance
| Deposit reservation for balance |
Lending funds
| Lending funds |
Trading financial assets
| Trading financial assets | 2,730,000,000.00 | 2,511,844,508.00 |
Derivative financial assets
| Derivative financial assets |
Notes receivable
| Notes receivable | 696,284,931.64 | 881,773,341.71 |
Accounts receivable
| Accounts receivable | 1,810,015,596.33 | 1,689,606,828.94 |
Receivables financing
| Receivables financing |
Advances to suppliers
| Advances to suppliers | 139,713,471.58 | 177,500,353.37 |
Premiums receivables
| Premiums receivables |
Reinsurance accounts receivable
| Reinsurance accounts receivable |
Provision of cession receivable
| Provision of cession receivable |
2023 Full Annual Report
| Item | December 31, 2023 | January 01, 2023 |
Other receivables
| Other receivables | 53,368,667.34 | 80,429,057.84 |
Including: Interest receivable
| Including: Interest receivable |
Dividends receivable
| Dividends receivable |
Redemptory monetary capital for sale
| Redemptory monetary capital for sale |
Inventory
| Inventory | 1,524,274,720.24 | 1,610,110,798.10 |
Contract assets
| Contract assets |
Assets held for sales
| Assets held for sales |
Non-current assets due within a year
| Non-current assets due within a year |
Other current assets
| Other current assets | 2,647,808,620.70 | 334,348.76 |
Total current assets
| Total current assets | 11,586,516,752.94 | 12,244,361,907.66 |
Non-current assets:
| Non-current assets: |
Loans and advances
| Loans and advances |
Debt investment
| Debt investment |
Other debt investments
| Other debt investments |
Long-term receivables
| Long-term receivables |
Long-term equity investment
| Long-term equity investment | 8,427,450.24 | 8,718,505.62 |
Other equity instrument investments
| Other equity instrument investments | 2,116,023.22 | 2,116,023.22 |
Other non-current financial assets
| Other non-current financial assets | 480,000,000.00 |
Investment properties
| Investment properties | 91,136,832.31 | 55,887,198.54 |
Fixed assets
| Fixed assets | 1,720,724,257.46 | 1,622,235,227.74 |
Construction in progress
| Construction in progress | 359,768,699.68 | 406,258,146.69 |
Productive biological assets
| Productive biological assets |
Oil and gas assets
| Oil and gas assets |
Right-of-use assets
| Right-of-use assets | 13,802,458.98 | 22,220,144.13 |
Intangible assets
| Intangible assets | 214,553,739.31 | 221,356,558.38 |
Development expenditure
| Development expenditure |
Goodwill
| Goodwill | 12,223,271.67 | 60,573,832.56 |
Long-term unamortized expenses
| Long-term unamortized expenses | 5,034,659.37 | 5,852,899.90 |
Deferred income tax assets
| Deferred income tax assets | 362,897,841.89 | 340,811,345.96 |
Other non-current assets
| Other non-current assets | 1,922,329,328.65 | 49,433,497.13 |
Total non-current assets
| Total non-current assets | 5,193,014,562.78 | 2,795,463,379.87 |
Total assets
| Total assets | 16,779,531,315.72 | 15,039,825,287.53 |
Current liabilities:
| Current liabilities: |
Short-term borrowing
| Short-term borrowing | 95,003,320.70 | 51,723,429.99 |
Borrowings from central bank
| Borrowings from central bank |
Borrowing funds
| Borrowing funds |
Trading financial liabilities
| Trading financial liabilities |
Derivative financial liabilities
| Derivative financial liabilities |
Notes payable
| Notes payable | 1,098,720,000.58 | 872,550,306.86 |
Accounts payable
| Accounts payable | 2,548,743,762.06 | 2,418,755,167.31 |
Advance from customers
| Advance from customers |
Contract liabilities
| Contract liabilities | 1,019,942,923.58 | 959,915,567.03 |
Financial assets sold for repurchase
| Financial assets sold for repurchase |
Deposits from customers and interbank
| Deposits from customers and interbank |
Acting trading securities
| Acting trading securities |
Acting underwriting securities
| Acting underwriting securities |
Payroll payable
| Payroll payable | 177,923,042.01 | 153,942,329.88 |
Tax payable
| Tax payable | 154,365,676.80 | 152,351,620.58 |
Other payables
| Other payables | 755,964,919.76 | 281,878,208.25 |
Including: Interest payable
| Including: Interest payable |
2023 Full Annual Report
| Item | December 31, 2023 | January 01, 2023 |
Dividends payable
| Dividends payable | 472,047,458.00 |
Fees and commissions payable
| Fees and commissions payable |
Dividend payable for reinsurance
| Dividend payable for reinsurance |
Liabilities held for sales
| Liabilities held for sales |
Non-current liabilities due within a year
| Non-current liabilities due within a year | 4,522,658.42 | 5,720,175.21 |
Other current liabilities
| Other current liabilities | 118,041,351.23 | 120,126,501.73 |
Total current liabilities
| Total current liabilities | 5,973,227,655.14 | 5,016,963,306.84 |
Non-current liabilities:
| Non-current liabilities: |
Reserve fund for insurance contracts
| Reserve fund for insurance contracts |
Long-term borrowing
| Long-term borrowing |
Bonds payable
| Bonds payable |
Including: preferred stock
| Including: preferred stock |
Perpetual bond
| Perpetual bond |
Lease liabilities
| Lease liabilities | 10,750,792.90 | 18,588,966.67 |
Long-term payable
| Long-term payable |
Long-term payroll payable
| Long-term payroll payable |
Estimated liabilities
| Estimated liabilities |
Deferred income
| Deferred income | 136,538,254.74 | 123,912,110.43 |
Deferred income tax liabilities
| Deferred income tax liabilities | 28,418,565.01 | 22,107,934.58 |
Other non-current liabilities
| Other non-current liabilities |
Total non-current liabilities
| Total non-current liabilities | 175,707,612.65 | 164,609,011.68 |
Total liabilities
| Total liabilities | 6,148,935,267.79 | 5,181,572,318.52 |
Owner's equity:
| Owner's equity: |
Share capital
| Share capital | 949,024,050.00 | 949,024,050.00 |
Other equity instruments
| Other equity instruments |
Including: preferred stock
| Including: preferred stock |
Perpetual bond
| Perpetual bond |
Capital reserve
| Capital reserve | 411,778,214.22 | 409,997,665.58 |
Minus: treasury stock
| Minus: treasury stock | 199,995,742.59 | 199,995,742.59 |
Other comprehensive income
| Other comprehensive income | -100,157,634.16 | -100,157,634.16 |
Special reserve
| Special reserve |
Surplus reserves
| Surplus reserves | 474,516,412.50 | 474,516,412.50 |
General risk preparation
| General risk preparation |
Undistributed profit
| Undistributed profit | 8,987,773,431.71 | 8,199,079,015.58 |
Total owners' equities attributable to theowners of parent company
| Total owners' equities attributable to the owners of parent company | 10,522,938,731.68 | 9,732,463,766.91 |
Minority equity
| Minority equity | 107,657,316.25 | 125,789,202.10 |
Total owners' equities
| Total owners' equities | 10,630,596,047.93 | 9,858,252,969.01 |
Total liabilities and owners' equities
| Total liabilities and owners' equities | 16,779,531,315.72 | 15,039,825,287.53 |
Legal representative: Ren Jianhua Head of accounting work: Zhang Guofu Head of accounting body: Zhang Guofu
2. Balance sheet of parent company
Unit: yuan
| Item | December 31, 2023 | January 01, 2023 |
Current assets:
| Current assets: |
Monetary capital
| Monetary capital | 1,810,087,936.08 | 5,054,810,287.04 |
Trading financial assets
| Trading financial assets | 2,730,000,000.00 | 2,500,000,000.00 |
Derivative financial assets
| Derivative financial assets |
Notes receivable
| Notes receivable | 662,718,295.18 | 879,223,549.33 |
Accounts receivable
| Accounts receivable | 1,755,848,590.56 | 1,620,543,528.97 |
Receivables financing
| Receivables financing |
2023 Full Annual Report
| Advances to suppliers | 127,173,134.27 | 167,724,048.79 |
Other receivables
| Other receivables | 46,761,052.06 | 83,900,676.77 |
Including: Interest receivable
| Including: Interest receivable |
Dividends receivable
| Dividends receivable | 10,200,000.00 |
Inventory
| Inventory | 1,404,838,448.75 | 1,499,780,747.70 |
Contract assets
| Contract assets |
Assets held for sales
| Assets held for sales |
Non-current assets due within a year
| Non-current assets due within a year |
Other current assets
| Other current assets | 2,644,890,957.65 |
Total current assets
| Total current assets | 11,182,318,414.55 | 11,805,982,838.60 |
Non-current assets:
| Non-current assets: |
Debt investment
| Debt investment |
Other debt investments
| Other debt investments |
Long-term receivables
| Long-term receivables |
Long-term equity investment
| Long-term equity investment | 255,471,029.63 | 251,769,849.44 |
Other equity instrument investments
| Other equity instrument investments | 2,116,023.22 | 2,116,023.22 |
Other non-current financial assets
| Other non-current financial assets | 480,000,000.00 |
Investment properties
| Investment properties | 8,735,897.94 | 4,426,211.90 |
Fixed assets
| Fixed assets | 1,528,320,306.82 | 1,396,227,874.68 |
Construction in progress
| Construction in progress | 359,768,699.68 | 406,258,146.69 |
Productive biological assets
| Productive biological assets |
Oil and gas assets
| Oil and gas assets |
Right-of-use assets
| Right-of-use assets |
Intangible assets
| Intangible assets | 148,054,087.98 | 149,864,689.61 |
Development expenditure
| Development expenditure |
Goodwill
| Goodwill |
Long-term unamortized expenses
| Long-term unamortized expenses | 2,703,497.73 | 1,486,622.90 |
Deferred income tax assets
| Deferred income tax assets | 346,004,342.16 | 323,776,879.25 |
Other non-current assets
| Other non-current assets | 1,922,135,328.65 | 49,433,497.13 |
Total non-current assets
| Total non-current assets | 5,053,309,213.81 | 2,585,359,794.82 |
Total assets
| Total assets | 16,235,627,628.36 | 14,391,342,633.42 |
Current liabilities:
| Current liabilities: |
Short-term borrowing
| Short-term borrowing | 14,003,320.70 | 573,429.99 |
Trading financial liabilities
| Trading financial liabilities |
Derivative financial liabilities
| Derivative financial liabilities |
Notes payable
| Notes payable | 1,042,067,981.92 | 810,820,603.91 |
Accounts payable
| Accounts payable | 2,416,687,934.76 | 2,282,866,624.07 |
Advance from customers
| Advance from customers |
Contract liabilities
| Contract liabilities | 947,538,425.82 | 890,640,445.28 |
Payroll payable
| Payroll payable | 145,416,052.40 | 121,417,848.03 |
Tax payable
| Tax payable | 140,518,721.35 | 130,548,651.54 |
Other payables
| Other payables | 725,701,383.40 | 254,460,632.28 |
Including: Interest payable
| Including: Interest payable |
Dividends payable
| Dividends payable | 472,047,458.00 |
Liabilities held for sales
| Liabilities held for sales |
Non-current liabilities due within a year
| Non-current liabilities due within a year |
Other current liabilities
| Other current liabilities | 107,860,993.92 | 109,801,716.95 |
Total current liabilities
| Total current liabilities | 5,539,794,814.27 | 4,601,129,952.05 |
Non-current liabilities:
| Non-current liabilities: |
Long-term borrowing
| Long-term borrowing |
Bonds payable
| Bonds payable |
2023 Full Annual Report
| Including: preferred stock |
Perpetual bond
| Perpetual bond |
Lease liabilities
| Lease liabilities |
Long-term payable
| Long-term payable |
Long-term payroll payable
| Long-term payroll payable |
Estimated liabilities
| Estimated liabilities |
Deferred income
| Deferred income | 101,473,668.84 | 86,923,728.32 |
Deferred income tax liabilities
| Deferred income tax liabilities | 20,898,710.27 | 13,804,141.19 |
Other non-current liabilities
| Other non-current liabilities |
Total non-current liabilities
| Total non-current liabilities | 122,372,379.11 | 100,727,869.51 |
Total liabilities
| Total liabilities | 5,662,167,193.38 | 4,701,857,821.56 |
Owner's equity:
| Owner's equity: |
Share capital
| Share capital | 949,024,050.00 | 949,024,050.00 |
Other equity instruments
| Other equity instruments |
Including: preferred stock
| Including: preferred stock |
Perpetual bond
| Perpetual bond |
Capital reserve
| Capital reserve | 411,389,124.26 | 409,608,575.62 |
Minus: treasury stock
| Minus: treasury stock | 199,995,742.59 | 199,995,742.59 |
Other comprehensive income
| Other comprehensive income | -100,157,634.16 | -100,157,634.16 |
Special reserve
| Special reserve |
Surplus reserves
| Surplus reserves | 474,516,412.50 | 474,516,412.50 |
Undistributed profit
| Undistributed profit | 9,038,684,224.97 | 8,156,489,150.49 |
Total owners' equities
| Total owners' equities | 10,573,460,434.98 | 9,689,484,811.86 |
Total liabilities and owners' equities
| Total liabilities and owners' equities | 16,235,627,628.36 | 14,391,342,633.42 |
3. Consolidated Statement of Income
Unit: yuan
| Item | Year 2023 | Year 2022 |
I. Total operating income
| I. Total operating income | 11,201,895,774.27 | 10,271,500,571.04 |
Including: Operating income
| Including: Operating income | 11,201,895,774.27 | 10,271,500,571.04 |
Interest revenue
| Interest revenue |
Premium earned
| Premium earned |
Fee and commission income
| Fee and commission income |
II. Total operating costs
| II. Total operating costs | 9,296,781,893.88 | 8,494,920,336.60 |
Including: Operating costs
| Including: Operating costs | 5,527,648,706.29 | 5,137,368,758.15 |
Interest expenditure
| Interest expenditure |
Fee and commission expense
| Fee and commission expense |
Surrender value
| Surrender value |
Net payments for insuranceclaims
| Net payments for insurance claims |
Net reserve fund extracted forinsurance contracts
| Net reserve fund extracted for insurance contracts |
Bond insurance expense
| Bond insurance expense |
Reinsurance costs
| Reinsurance costs |
Taxes and surcharges
| Taxes and surcharges | 98,651,608.07 | 78,564,584.05 |
Selling expenses
| Selling expenses | 3,002,418,651.54 | 2,613,626,073.89 |
Management costs
| Management costs | 469,622,072.60 | 430,968,403.74 |
Research and developmentexpenses
| Research and development expenses | 387,368,591.97 | 391,614,805.38 |
Financial expenses
| Financial expenses | -188,927,736.59 | -157,222,288.61 |
Including: interest expenditure
| Including: interest expenditure | 8,773,638.31 | 10,249,057.76 |
Interest revenue
| Interest revenue | 198,559,145.09 | 162,232,029.99 |
2023 Full Annual Report
| Plus: other incomes | 173,912,473.94 | 148,475,570.29 |
Income from investment (loss expressedwith "-")
| Income from investment (loss expressed with "-") | 82,963,414.69 | 98,961,069.15 |
Including: Income frominvestment of joint venture andcooperative enterprise
| Including: Income from investment of joint venture and cooperative enterprise | -291,055.38 | -826,624.29 |
Income from derecognition of financialassets measured at amortized cost
| Income from derecognition of financial assets measured at amortized cost |
Exchange gain (lossexpressed with "-")
| Exchange gain (loss expressed with "-") |
Net exposure hedging gain (lossexpressed with "-")
| Net exposure hedging gain (loss expressed with "-") |
Income from fair value changes (lossexpressed with "-")
| Income from fair value changes (loss expressed with "-") |
Credit impairment losses (loss expressedwith "-")
| Credit impairment losses (loss expressed with "-") | -102,136,793.39 | -224,114,601.65 |
Assets impairment losses (loss expressedwith "-")
| Assets impairment losses (loss expressed with "-") | -70,692,389.97 | -24,998,305.92 |
Income from disposal of assets (lossexpressed with "-")
| Income from disposal of assets (loss expressed with "-") | -1,211,854.70 | 143,437.75 |
III. Operating profits (loss expressed with"-")
| III. Operating profits (loss expressed with "-") | 1,987,948,730.96 | 1,775,047,404.06 |
Plus: Non-operating income
| Plus: Non-operating income | 4,742,209.59 | 3,268,479.05 |
Minus: non-operating expenditure
| Minus: non-operating expenditure | 6,580,896.29 | 5,343,278.82 |
IV. Total profits (total loss expressed with"-")
| IV. Total profits (total loss expressed with "-") | 1,986,110,044.26 | 1,772,972,604.29 |
Minus: Income tax expenses
| Minus: Income tax expenses | 271,452,597.98 | 214,666,153.99 |
V. Net profits (net loss expressed with "-")
| V. Net profits (net loss expressed with "-") | 1,714,657,446.28 | 1,558,306,450.30 |
(I) Classified by business continuity
| (I) Classified by business continuity |
1. Net profits from going concern (net
loss expressed with "-")
| 1. Net profits from going concern (net loss expressed with "-") | 1,714,657,446.28 | 1,558,306,450.30 |
2. Net profits from discontinuing
operation (net loss expressed with "-")
| 2. Net profits from discontinuing operation (net loss expressed with "-") |
(II) Classified by ownership
| (II) Classified by ownership |
1. Net profits attributable to shareholders
of parent company
| 1. Net profits attributable to shareholders of parent company | 1,732,789,332.13 | 1,572,404,918.21 |
2. * Minority interest income
| 2. * Minority interest income | -18,131,885.85 | -14,098,467.91 |
VI. Net of tax of other comprehensiveincome
| VI. Net of tax of other comprehensive income |
Net amount of other comprehensiveincome after tax attributed to parentcompany owners
| Net amount of other comprehensive income after tax attributed to parent company owners |
(I) Other comprehensive income that can'tbe reclassified into profit and loss
| (I) Other comprehensive income that can't be reclassified into profit and loss |
1. Remeasure the variation of net
indebtedness or net asset of definedbenefit plan
| 1. Remeasure the variation of net indebtedness or net asset of defined benefit plan |
2. Other comprehensive income that can't
be reclassified into profit and loss inthe invested enterprise under equitymethod
| 2. Other comprehensive income that can't be reclassified into profit and loss in the invested enterprise under equity method |
3. Fair value change of other equity
instrument investments
| 3. Fair value change of other equity instrument investments |
4. Fair value change of enterprise credit
risks
| 4. Fair value change of enterprise credit risks |
5. Other
| 5. Other |
(II) Other comprehensive income that will
| (II) Other comprehensive income that will |
2023 Full Annual Report
be reclassified into profit and loss
1. Other comprehensive income that will
be reclassified into profit and loss inthe invested enterprise under equitymethod
| 1. Other comprehensive income that will be reclassified into profit and loss in the invested enterprise under equity method |
2. Fair value change of other debt
investments
| 2. Fair value change of other debt investments |
3. Amount of financial assets reclassified
into other comprehensive income
| 3. Amount of financial assets reclassified into other comprehensive income |
4. Provision for credit impairment of
other debt investments
| 4. Provision for credit impairment of other debt investments |
5. Cash flow hedging reserve
| 5. Cash flow hedging reserve |
6. Balance arising from the translation of
foreign currency financial statements
| 6. Balance arising from the translation of foreign currency financial statements |
7. Other
| 7. Other |
Net amount of other comprehensiveincome after tax attributed to minorityshareholders
| Net amount of other comprehensive income after tax attributed to minority shareholders |
VII. Total comprehensive income
| VII. Total comprehensive income | 1,714,657,446.28 | 1,558,306,450.30 |
Total comprehensive income attributedto parent company owners
| Total comprehensive income attributed to parent company owners | 1,732,789,332.13 | 1,572,404,918.21 |
Total comprehensive income belongingto minority shareholders
| Total comprehensive income belonging to minority shareholders | -18,131,885.85 | -14,098,467.91 |
VIII. Earnings Per Share
| VIII. Earnings Per Share |
(I) Basic EPS
| (I) Basic EPS | 1.83 | 1.67 |
(II) Diluted EPS
| (II) Diluted EPS | 1.83 | 1.67 |
In case of business combination involving enterprises under common control in current period, the net profits achieved by themerged party before combination were RMB 0.00 and achieved by the merged party in previous period were RMB 0.00.Legal representative: Ren Jianhua Head of accounting work: Zhang Guofu Head of accounting body: Zhang Guofu
4. Income statement of parent company
Unit: yuan
| Item | Year 2023 | Year 2022 |
I. I. Operating income
| I. I. Operating income | 10,193,069,154.46 | 9,524,550,185.59 |
Minus: Operating costs
| Minus: Operating costs | 5,238,879,913.20 | 4,901,492,041.67 |
Taxes and surcharges
| Taxes and surcharges | 85,142,081.03 | 69,828,676.76 |
Selling expenses
| Selling expenses | 2,383,042,375.37 | 2,218,801,283.55 |
Management costs
| Management costs | 343,719,928.86 | 304,689,831.15 |
Research and developmentexpenses
| Research and development expenses | 378,521,686.25 | 376,891,023.54 |
Financial expenses
| Financial expenses | -191,174,106.65 | -156,113,652.92 |
Including: interestexpenditure
| Including: interest expenditure | 4,712,177.65 | 8,322,009.99 |
Interest revenue
| Interest revenue | 195,758,915.10 | 158,191,509.22 |
Plus: other incomes
| Plus: other incomes | 162,403,507.36 | 131,366,920.67 |
Income from investment (loss expressedwith "-")
| Income from investment (loss expressed with "-") | 83,122,617.59 | 107,771,898.15 |
Including: Income from investment ofjoint venture and cooperative enterprise
| Including: Income from investment of joint venture and cooperative enterprise | 71,218.69 | -514,676.57 |
Income from derecognition of financialassets measured at amortized cost (lossexpressed with “-")
| Income from derecognition of financial assets measured at amortized cost (loss expressed with “-") |
Net exposure hedging gain (lossexpressed with "-")
| Net exposure hedging gain (loss expressed with "-") |
Income from fair value changes (loss
| Income from fair value changes (loss |
2023 Full Annual Report
| Item | Year 2023 | Year 2022 |
expressed with "-")
expressed with "-")Credit impairment losses (loss expressedwith "-")
| Credit impairment losses (loss expressed with "-") | -81,329,927.58 | -165,304,249.28 |
Assets impairment losses (loss expressedwith "-")
| Assets impairment losses (loss expressed with "-") | -22,002,511.90 | -4,982,572.64 |
Income from disposal of assets (lossexpressed with "-")
| Income from disposal of assets (loss expressed with "-") | -1,303,213.39 | -157,339.21 |
II. Operating profits (loss expressed with "-")
| II. Operating profits (loss expressed with "-") | 2,095,827,748.48 | 1,877,655,639.53 |
Plus: Non-operating income
| Plus: Non-operating income | 3,523,977.82 | 3,023,087.48 |
Minus: non-operating expenditure
| Minus: non-operating expenditure | 5,908,300.05 | 4,201,871.53 |
III. Total profits (total loss expressed with"-")
| III. Total profits (total loss expressed with "-") | 2,093,443,426.25 | 1,876,476,855.48 |
Minus: Income tax expenses
| Minus: Income tax expenses | 267,153,435.77 | 219,250,083.01 |
IV. Net profits (net loss expressed with "-")
| IV. Net profits (net loss expressed with "-") | 1,826,289,990.48 | 1,657,226,772.47 |
(I) Net profits from going concern (net lossexpressed with "-")
| (I) Net profits from going concern (net loss expressed with "-") | 1,826,289,990.48 | 1,657,226,772.47 |
(II) Net profits from discontinuingoperation (net loss expressed with "-")
| (II) Net profits from discontinuing operation (net loss expressed with "-") |
V. Net of tax of other comprehensiveincome
| V. Net of tax of other comprehensive income |
(I) Other comprehensive income that can'tbe reclassified into profit and loss
| (I) Other comprehensive income that can't be reclassified into profit and loss |
1. Remeasure the variation of net
indebtedness or net asset of definedbenefit plan
| 1. Remeasure the variation of net indebtedness or net asset of defined benefit plan |
2. Other comprehensive income that can't
be reclassified into profit and loss inthe invested enterprise under equitymethod
| 2. Other comprehensive income that can't be reclassified into profit and loss in the invested enterprise under equity method |
3. Fair value change of other equity
instrument investments
| 3. Fair value change of other equity instrument investments |
4. Fair value change of enterprise credit
risks
| 4. Fair value change of enterprise credit risks |
5. Other
| 5. Other |
(II) Other comprehensive income that willbe reclassified into profit and loss
| (II) Other comprehensive income that will be reclassified into profit and loss |
1. Other comprehensive income that will
be reclassified into profit and loss inthe invested enterprise under equitymethod
| 1. Other comprehensive income that will be reclassified into profit and loss in the invested enterprise under equity method |
2. Fair value change of other debt
investments
| 2. Fair value change of other debt investments |
3. Amount of financial assets reclassified
into other comprehensive income
| 3. Amount of financial assets reclassified into other comprehensive income |
4. Provision for credit impairment of
other debt investments
| 4. Provision for credit impairment of other debt investments |
5. Cash flow hedging reserve
| 5. Cash flow hedging reserve |
6. Balance arising from the translation of
foreign currency financial statements
| 6. Balance arising from the translation of foreign currency financial statements |
7. Other
| 7. Other |
VI. Total comprehensive income
| VI. Total comprehensive income | 1,826,289,990.48 | 1,657,226,772.47 |
VII. Earnings Per Share
| VII. Earnings Per Share |
(I) Basic EPS
| (I) Basic EPS |
(II) Diluted EPS
| (II) Diluted EPS |
2023 Full Annual Report
5. Consolidated Statement of Cash Flow
Unit: yuan
| Item | Year 2023 | Year 2022 |
I. Cash flow from operating activities:
| I. Cash flow from operating activities: |
Cash from selling commodities oroffering labor
| Cash from selling commodities or offering labor | 12,266,993,968.64 | 11,217,554,991.80 |
Net increase of customer deposit anddeposit from other banks
| Net increase of customer deposit and deposit from other banks |
Net increase of borrowings from centralbank
| Net increase of borrowings from central bank |
Net increase of borrowing funds fromother financial institutions
| Net increase of borrowing funds from other financial institutions |
Cash from obtaining original insurancecontract premium
| Cash from obtaining original insurance contract premium |
Cash received from insurance premiumof original insurance contract
| Cash received from insurance premium of original insurance contract |
Net increase of deposit and investment ofinsured
| Net increase of deposit and investment of insured |
Cash from interest, handling charges andcommissions
| Cash from interest, handling charges and commissions |
Net increase of borrowing funds
| Net increase of borrowing funds |
Net increase of repurchase of businessfunds
| Net increase of repurchase of business funds |
Net cash from acting trading securities
| Net cash from acting trading securities |
Refund of tax and levies
| Refund of tax and levies | 46,868,485.73 | 52,622,361.53 |
Other cash received related to operatingactivities
| Other cash received related to operating activities | 272,254,801.18 | 302,574,783.30 |
Subtotal cash inflows from operatingactivities
| Subtotal cash inflows from operating activities | 12,586,117,255.55 | 11,572,752,136.63 |
Cash paid for selling commodities oroffering labor
| Cash paid for selling commodities or offering labor | 5,268,131,276.52 | 5,130,311,485.16 |
Net increase of customer loans andadvances
| Net increase of customer loans and advances |
Net increase of amount due from centralbank and interbank
| Net increase of amount due from central bank and interbank |
Cash paid for original insurance contractclaims payment
| Cash paid for original insurance contract claims payment |
Net increase of lending funds
| Net increase of lending funds |
Cash paid for interest, handling chargesand commissions
| Cash paid for interest, handling charges and commissions |
Cash paid for policy dividend
| Cash paid for policy dividend |
Cash paid to and for employees
| Cash paid to and for employees | 1,048,926,471.94 | 1,014,928,118.78 |
Taxes and fees paid
| Taxes and fees paid | 971,661,528.13 | 924,067,905.31 |
Other cash paid related to operatingactivities
| Other cash paid related to operating activities | 2,905,476,166.25 | 2,558,658,323.36 |
Subtotal cash outflows from operatingactivities
| Subtotal cash outflows from operating activities | 10,194,195,442.84 | 9,627,965,832.61 |
Net cash flow from operating activities
| Net cash flow from operating activities | 2,391,921,812.71 | 1,944,786,304.02 |
II. Cash flow from investment activities:
| II. Cash flow from investment activities: |
Cash from investment withdrawal
| Cash from investment withdrawal | 2,314,144,508.00 | 2,935,774,392.00 |
Cash from investment income
| Cash from investment income | 83,300,616.60 | 101,112,262.32 |
Net cash from disposal of fixed assets,intangible assets and other long-termassets
| Net cash from disposal of fixed assets, intangible assets and other long-term assets | 830,542.67 | 1,144,292.90 |
Net cash received from the disposal ofsubsidiaries and other business entities
| Net cash received from the disposal of subsidiaries and other business entities |
2023 Full Annual Report
| Item | Year 2023 | Year 2022 |
Other cash received related to investmentactivities
| Other cash received related to investment activities |
Subtotal cash inflows from investmentactivities
| Subtotal cash inflows from investment activities | 2,398,275,667.27 | 3,038,030,947.22 |
Cash paid for the purchase andconstruction of fixed assets, intangibleassets and other long term assets
| Cash paid for the purchase and construction of fixed assets, intangible assets and other long term assets | 327,437,806.87 | 502,585,886.40 |
Cash paid for investment
| Cash paid for investment | 3,012,300,000.00 | 2,579,500,000.00 |
Net cash received from reinsurancebusiness
| Net cash received from reinsurance business |
Net cash paid for obtaining subsidiariesand other business units
| Net cash paid for obtaining subsidiaries and other business units |
Other cash paid related to investmentactivities
| Other cash paid related to investment activities | 4,333,744,300.00 |
Subtotal cash outflows from investmentactivities
| Subtotal cash outflows from investment activities | 7,673,482,106.87 | 3,082,085,886.40 |
Net cash flow from investment activities
| Net cash flow from investment activities | -5,275,206,439.60 | -44,054,939.18 |
III. Cash flow from financing activities:
| III. Cash flow from financing activities: |
Receipts from equity securities
| Receipts from equity securities | 2,750,000.00 | 11,000,000.00 |
Including: Cash received from subsidies'absorption of minority shareholders'investment
| Including: Cash received from subsidies' absorption of minority shareholders' investment | 2,750,000.00 | 11,000,000.00 |
Cash received from borrowings
| Cash received from borrowings | 76,000,000.00 | 54,650,000.00 |
Other cash received related to financingactivities
| Other cash received related to financing activities | 13,510,296.65 | 1,012,732.06 |
Subtotal cash inflows from financingactivities
| Subtotal cash inflows from financing activities | 92,260,296.65 | 66,662,732.06 |
Cash repayments of amounts borrowed
| Cash repayments of amounts borrowed | 46,150,000.00 | 3,500,000.00 |
Cash paid for distribution of dividends orprofits and for interest expenses
| Cash paid for distribution of dividends or profits and for interest expenses | 474,928,024.93 | 482,408,349.01 |
Including: Dividends and profits paid bysubsidiaries to minority shareholders
| Including: Dividends and profits paid by subsidiaries to minority shareholders | 9,800,000.00 |
Other cash paid related to financingactivities
| Other cash paid related to financing activities | 7,123,465.99 | 10,759,837.34 |
Subtotal cash outflows from financingactivities
| Subtotal cash outflows from financing activities | 528,201,490.92 | 496,668,186.35 |
Net cash flow from financing activities
| Net cash flow from financing activities | -435,941,194.27 | -430,005,454.29 |
IV. Impact of exchange rate movements oncash and cash equivalents
| IV. Impact of exchange rate movements on cash and cash equivalents | 977,837.51 | 5,699,610.84 |
V. Net increase of cash and cashequivalents
| V. Net increase of cash and cash equivalents | -3,318,247,983.65 | 1,476,425,521.39 |
Plus: Balance of cash and cashequivalents at the beginning of the period
| Plus: Balance of cash and cash equivalents at the beginning of the period | 5,196,414,341.74 | 3,719,988,820.35 |
VI. Balance of cash and cash equivalents atthe beginning of the period
| VI. Balance of cash and cash equivalents at the beginning of the period | 1,878,166,358.09 | 5,196,414,341.74 |
6. Cash flow statement of parent company
Unit: yuan
| Item | Year 2023 | Year 2022 |
I. Cash flow from operating activities:
| I. Cash flow from operating activities: |
Cash from selling commodities oroffering labor
| Cash from selling commodities or offering labor | 11,177,115,048.54 | 10,511,492,286.98 |
Refund of tax and levies
| Refund of tax and levies | 45,894,461.03 | 45,959,892.74 |
Other cash received related to operatingactivities
| Other cash received related to operating activities | 243,673,487.58 | 244,654,467.09 |
2023 Full Annual Report
| Item | Year 2023 | Year 2022 |
Subtotal cash inflows from operatingactivities
| Subtotal cash inflows from operating activities | 11,466,682,997.15 | 10,802,106,646.81 |
Cash paid for selling commodities oroffering labor
| Cash paid for selling commodities or offering labor | 4,964,239,535.47 | 4,928,332,766.89 |
Cash paid to and for employees
| Cash paid to and for employees | 773,324,582.87 | 741,560,434.55 |
Taxes and fees paid
| Taxes and fees paid | 873,573,314.72 | 851,796,665.44 |
Other cash paid related to operatingactivities
| Other cash paid related to operating activities | 2,411,772,941.62 | 2,277,803,150.69 |
Subtotal cash outflows from operatingactivities
| Subtotal cash outflows from operating activities | 9,022,910,374.68 | 8,799,493,017.57 |
Net cash flow from operating activities
| Net cash flow from operating activities | 2,443,772,622.47 | 2,002,613,629.24 |
II. Cash flow from investment activities:
| II. Cash flow from investment activities: |
Cash from investment withdrawal
| Cash from investment withdrawal | 2,300,000,000.00 | 2,800,000,000.00 |
Cash from investment income
| Cash from investment income | 93,285,361.16 | 99,306,676.81 |
Net cash from disposal of fixed assets,intangible assets and other long-termassets
| Net cash from disposal of fixed assets, intangible assets and other long-term assets | 612,252.00 | 620,992.90 |
Net cash received from the disposal ofsubsidiaries and other business entities
| Net cash received from the disposal of subsidiaries and other business entities |
Other cash received related to investmentactivities
| Other cash received related to investment activities |
Subtotal cash inflows from investmentactivities
| Subtotal cash inflows from investment activities | 2,393,897,613.16 | 2,899,927,669.71 |
Cash paid for the purchase andconstruction of fixed assets, intangibleassets and other long term assets
| Cash paid for the purchase and construction of fixed assets, intangible assets and other long term assets | 284,465,179.85 | 448,805,021.56 |
Cash paid for investment
| Cash paid for investment | 3,013,588,900.00 | 2,510,000,000.00 |
Net cash paid for obtaining subsidiariesand other business units
| Net cash paid for obtaining subsidiaries and other business units |
Other cash paid related to investmentactivities
| Other cash paid related to investment activities | 4,333,744,300.00 |
Subtotal cash outflows from investmentactivities
| Subtotal cash outflows from investment activities | 7,631,798,379.85 | 2,958,805,021.56 |
Net cash flow from investment activities
| Net cash flow from investment activities | -5,237,900,766.69 | -58,877,351.85 |
III. Cash flow from financing activities:
| III. Cash flow from financing activities: |
Receipts from equity securities
| Receipts from equity securities |
Cash received from borrowings
| Cash received from borrowings |
Other cash received related to financingactivities
| Other cash received related to financing activities | 13,510,296.65 | 1,012,732.06 |
Subtotal cash inflows from financingactivities
| Subtotal cash inflows from financing activities | 13,510,296.65 | 1,012,732.06 |
Cash repayments of amounts borrowed
| Cash repayments of amounts borrowed |
Cash paid for distribution of dividends orprofits and for interest expenses
| Cash paid for distribution of dividends or profits and for interest expenses | 472,047,458.00 | 472,047,458.00 |
Other cash paid related to financingactivities
| Other cash paid related to financing activities | 4,030,091.57 |
Subtotal cash outflows from financingactivities
| Subtotal cash outflows from financing activities | 472,047,458.00 | 476,077,549.57 |
Net cash flow from financing activities
| Net cash flow from financing activities | -458,537,161.35 | -475,064,817.51 |
IV. Impact of exchange rate movements oncash and cash equivalents
| IV. Impact of exchange rate movements on cash and cash equivalents | 977,837.51 | 5,699,610.84 |
V. Net increase of cash and cashequivalents
| V. Net increase of cash and cash equivalents | -3,251,687,468.06 | 1,474,371,070.72 |
Plus: Balance of cash and cashequivalents at the beginning of the period
| Plus: Balance of cash and cash equivalents at the beginning of the period | 4,978,704,981.15 | 3,504,333,910.43 |
2023 Full Annual Report
| Item | Year 2023 | Year 2022 |
VI. Balance of cash and cash equivalents atthe beginning of the period
| VI. Balance of cash and cash equivalents at the beginning of the period | 1,727,017,513.09 | 4,978,704,981.15 |
7. Consolidated statement of change in equity
Current amount
Unit: yuan
| Item | Year 2023 | ||||||||||||||
| Owners' equities attributable to the owners of parent company | Minority equity | Total owners' equities | |||||||||||||
| Share capital | Other equity instruments | Capital reserve | Minus: treasury stock | Other comprehensive income | Special reserve | Surplus reserves | General risk preparation | Undistributed profit | Other | Subtotal | |||||
| Preferred stock | Perpetual bond | Other | |||||||||||||
I. Ending balance inprevious year
| I. Ending balance in previous year | 949,024,050.00 | 409,997,665.58 | 199,995,742.59 | -100,157,634.16 | 474,516,412.50 | 8,199,079,015.58 | 9,732,463,766.91 | 125,789,202.10 | 9,858,252,969.01 |
Plus: Changes inaccounting policies
| Plus: Changes in accounting policies |
Prior period errorcorrection
| Prior period error correction |
Other
| Other |
II. Beginning balancein current year
| II. Beginning balance in current year | 949,024,050.00 | 409,997,665.58 | 199,995,742.59 | -100,157,634.16 | 474,516,412.50 | 8,199,079,015.58 | 9,732,463,766.91 | 125,789,202.10 | 9,858,252,969.01 |
III. Increase/decreasein the current period(less to be filled outwith the minus sign"-")
| III. Increase/decrease in the current period (less to be filled out with the minus sign "-") | 1,780,548.64 | 788,694,416.13 | 790,474,964.77 | -18,131,885.85 | 772,343,078.92 |
(I) Totalcomprehensiveincome
| (I) Total comprehensive income | 1,732,789,332.13 | 1,732,789,332.13 | -18,131,885.85 | 1,714,657,446.28 |
(II) Owner's investedand decreased capital
| (II) Owner's invested and decreased capital | 1,780,548.64 | 1,780,548.64 | 1,780,548.64 |
1. Common share
invested by theowner
| 1. Common share invested by the owner |
2. Capital invested
by other equityinstrumentholders
| 2. Capital invested by other equity instrument holders |
3. Amount of
share-basedpaymentincluded in theowner's equity
| 3. Amount of share-based payment included in the owner's equity | 1,780,548.64 | 1,780,548.64 | 1,780,548.64 |
4. Other
| 4. Other |
(III) Profitdistribution
| (III) Profit distribution | -944,094,916.00 | -944,094,916.00 | -944,094,916.00 |
1. Withdrawal of
surplus reserves
| 1. Withdrawal of surplus reserves |
2. Withdrawal of
general riskpreparation
| 2. Withdrawal of general risk preparation |
3. Distribution of
owners (orshareholders)
| 3. Distribution of owners (or shareholders) | -944,094,916.00 | -944,094,916.00 | -944,094,916.00 |
4. Other
| 4. Other |
(IV) Internal transferof owner's equity
| (IV) Internal transfer of owner's equity |
1. Capital surplus
transfer to paid-in capital (orshare capital)
| 1. Capital surplus transfer to paid-in capital (or share capital) |
2. Earned surplus
transfer to paid-in capital (or
| 2. Earned surplus transfer to paid-in capital (or |
2023 Full Annual Report
| Item | Year 2023 | ||||||||||||||
| Owners' equities attributable to the owners of parent company | Minority equity | Total owners' equities | |||||||||||||
| Share capital | Other equity instruments | Capital reserve | Minus: treasury stock | Other comprehensive income | Special reserve | Surplus reserves | General risk preparation | Undistributed profit | Other | Subtotal | |||||
| Preferred stock | Perpetual bond | Other | |||||||||||||
share capital)
share capital)
3. Earned surplus
covering thedeficit
| 3. Earned surplus covering the deficit |
4. Carryforward
retained earningsin variation ofdefined benefitplan
| 4. Carryforward retained earnings in variation of defined benefit plan |
5. Carryforward
retained earningsof othercomprehensiveincome
| 5. Carryforward retained earnings of other comprehensive income |
6. Other
| 6. Other |
(V) Special reserve
| (V) Special reserve |
1. Draw in this
current
| 1. Draw in this current |
2. Use in this
current
| 2. Use in this current |
(VI) Other
| (VI) Other |
IV. Balance at theend of current period
| IV. Balance at the end of current period | 949,024,050.00 | 411,778,214.22 | 199,995,742.59 | -100,157,634.16 | 474,516,412.50 | 8,987,773,431.71 | 10,522,938,731.68 | 107,657,316.25 | 10,630,596,047.93 |
Last term amount
Unit: yuan
| Item | Year 2022 | ||||||||||||||
| Owners' equities attributable to the owners of parent company | Minority equity | Total owners' equities | |||||||||||||
| Share capital | Other equity instruments | Capital reserve | Minus: treasury stock | Other comprehensive income | Special reserve | Surplus reserves | General risk preparation | Undistributed profit | Other | Subtotal | |||||
| Preferred stock | Perpetual bond | Other | |||||||||||||
I. Ending balance inprevious year
| I. Ending balance in previous year | 949,024,050.00 | 404,918,098.15 | 199,995,742.59 | -100,157,634.16 | 474,516,412.50 | 7,098,721,555.37 | 8,627,026,739.27 | 139,031,776.96 | 8,766,058,516.23 |
Plus: Changes inaccounting policies
| Plus: Changes in accounting policies |
Prior period errorcorrection
| Prior period error correction |
Other
| Other |
II. Beginningbalance in currentyear
| II. Beginning balance in current year | 949,024,050.00 | 404,918,098.15 | 199,995,742.59 | -100,157,634.16 | 474,516,412.50 | 7,098,721,555.37 | 8,627,026,739.27 | 139,031,776.96 | 8,766,058,516.23 |
III. Increase/decrease in the currentperiod (less to befilled out with theminus sign "-")
| III. Increase/decrease in the current period (less to be filled out with the minus sign "-") | 5,079,567.43 | 1,100,357,460.21 | 1,105,437,027.64 | -13,242,574.86 | 1,092,194,452.78 |
(I) Totalcomprehensiveincome
| (I) Total comprehensive income | 1,572,404,918.21 | 1,572,404,918.21 | -14,098,467.91 | 1,558,306,450.30 |
(II) Owner's investedand decreased capital
| (II) Owner's invested and decreased capital | 5,079,567.43 | 5,079,567.43 | 10,655,893.05 | 15,735,460.48 |
1. Common share
invested by theowner
| 1. Common share invested by the owner | 344,106.95 | 344,106.95 | 10,655,893.05 | 11,000,000.00 |
2. Capital invested
by other equityinstrumentholders
| 2. Capital invested by other equity instrument holders |
3. Amount of
share-based
| 3. Amount of share-based | 4,735,460.48 | 4,735,460.48 | 4,735,460.48 |
2023 Full Annual Report
| Item | Year 2022 | ||||||||||||||
| Owners' equities attributable to the owners of parent company | Minority equity | Total owners' equities | |||||||||||||
| Share capital | Other equity instruments | Capital reserve | Minus: treasury stock | Other comprehensive income | Special reserve | Surplus reserves | General risk preparation | Undistributed profit | Other | Subtotal | |||||
| Preferred stock | Perpetual bond | Other | |||||||||||||
paymentincluded in theowner's equity
paymentincluded in theowner's equity
4. Other
| 4. Other |
(III) Profitdistribution
| (III) Profit distribution | -472,047,458.00 | -472,047,458.00 | -9,800,000.00 | -481,847,458.00 |
1. Withdrawal of
surplus reserves
| 1. Withdrawal of surplus reserves |
2. Withdrawal of
general riskpreparation
| 2. Withdrawal of general risk preparation |
3. Distribution of
owners (orshareholders)
| 3. Distribution of owners (or shareholders) | -472,047,458.00 | -472,047,458.00 | -9,800,000.00 | -481,847,458.00 |
4. Other
| 4. Other |
(IV) Internal transferof owner's equity
| (IV) Internal transfer of owner's equity |
1. Capital surplus
transfer to paid-in capital (orshare capital)
| 1. Capital surplus transfer to paid-in capital (or share capital) |
2. Earned surplus
transfer to paid-in capital (orshare capital)
| 2. Earned surplus transfer to paid-in capital (or share capital) |
3. Earned surplus
covering thedeficit
| 3. Earned surplus covering the deficit |
4. Carryforward
retainedearnings invariation ofdefined benefitplan
| 4. Carryforward retained earnings in variation of defined benefit plan |
5. Carryforward
retainedearnings ofothercomprehensiveincome
| 5. Carryforward retained earnings of other comprehensive income |
6. Other
| 6. Other |
(V) Special reserve
| (V) Special reserve |
1. Draw in this
current
| 1. Draw in this current |
2. Use in this
current
| 2. Use in this current |
(VI) Other
| (VI) Other |
IV. Balance at theend of current period
| IV. Balance at the end of current period | 949,024,050.00 | 409,997,665.58 | 199,995,742.59 | -100,157,634.16 | 474,516,412.50 | 8,199,079,015.58 | 9,732,463,766.91 | 125,789,202.10 | 9,858,252,969.01 |
8. Statement of change in equity of parent company
Current amount
Unit: yuan
| Item | Year 2023 | |||||||||||
| Share capital | Other equity instruments | Capital reserve | Minus: treasury stock | Other comprehensive income | Special reserve | Surplus reserves | Undistributed profit | Other | Total owners' equities | |||
| Preferred stock | Perpetual bond | Other | ||||||||||
I. Ending balance inprevious year
| I. Ending balance in previous year | 949,024,050.00 | 409,608,575.62 | 199,995,742.59 | -100,157,634.16 | 474,516,412.50 | 8,156,489,150.49 | 9,689,484,811.86 |
Plus: Changes inaccounting policies
| Plus: Changes in accounting policies |
2023 Full Annual Report
| Item | Year 2023 | |||||||||||
| Share capital | Other equity instruments | Capital reserve | Minus: treasury stock | Other comprehensive income | Special reserve | Surplus reserves | Undistributed profit | Other | Total owners' equities | |||
| Preferred stock | Perpetual bond | Other | ||||||||||
Prior period errorcorrection
| Prior period error correction |
Other
| Other |
II. Beginning balance incurrent year
| II. Beginning balance in current year | 949,024,050.00 | 409,608,575.62 | 199,995,742.59 | -100,157,634.16 | 474,516,412.50 | 8,156,489,150.49 | 9,689,484,811.86 |
III. Increase/decrease in thecurrent period (less to befilled out with the minussign "-")
| III. Increase/decrease in the current period (less to be filled out with the minus sign "-") | 1,780,548.64 | 882,195,074.48 | 883,975,623.12 |
(I) Total comprehensiveincome
| (I) Total comprehensive income | 1,826,289,990.48 | 1,826,289,990.48 |
(II) Owner's invested anddecreased capital
| (II) Owner's invested and decreased capital | 1,780,548.64 | 1,780,548.64 |
1. Common share
invested by the owner
| 1. Common share invested by the owner |
2. Capital invested by
other equityinstrument holders
| 2. Capital invested by other equity instrument holders |
3. Amount of share-
based paymentincluded in theowner's equity
| 3. Amount of share-based payment included in the owner's equity | 1,780,548.64 | 1,780,548.64 |
4. Other
| 4. Other |
(III) Profit distribution
| (III) Profit distribution | -944,094,916.00 | -944,094,916.00 |
1. Withdrawal of
surplus reserves
| 1. Withdrawal of surplus reserves |
2. Distribution of
owners (orshareholders)
| 2. Distribution of owners (or shareholders) | -944,094,916.00 | -944,094,916.00 |
3. Other
| 3. Other |
(IV) Internal transfer ofowner's equity
| (IV) Internal transfer of owner's equity |
1. Capital surplus
transfer to paid-incapital (or sharecapital)
| 1. Capital surplus transfer to paid-in capital (or share capital) |
2. Earned surplus
transfer to paid-incapital (or sharecapital)
| 2. Earned surplus transfer to paid-in capital (or share capital) |
3. Earned surplus
covering the deficit
| 3. Earned surplus covering the deficit |
4. Carryforward retained
earnings in variationof defined benefitplan
| 4. Carryforward retained earnings in variation of defined benefit plan |
5. Carryforward retained
earnings of othercomprehensiveincome
| 5. Carryforward retained earnings of other comprehensive income |
6. Other
| 6. Other |
(V) Special reserve
| (V) Special reserve |
1. Draw in this current
| 1. Draw in this current |
2. Use in this current
| 2. Use in this current |
(VI) Other
| (VI) Other |
IV. Balance at the end ofcurrent period
| IV. Balance at the end of current period | 949,024,050.00 | 411,389,124.26 | 199,995,742.59 | -100,157,634.16 | 474,516,412.50 | 9,038,684,224.97 | 10,573,460,434.98 |
Last term amount
Unit: yuan
| Item | Year 2022 | |||||||||||
| Share capital | Other equity instruments | Capital reserve | Minus: treasury stock | Other comprehensive income | Special reserve | Surplus reserves | Undistributed profit | Other | Total owners' equities | |||
| Preferred stock | Perpetual bond | Other | ||||||||||
I. Ending balance inprevious year
| I. Ending balance in previous year | 949,024,050.00 | 404,873,115.14 | 199,995,742.59 | -100,157,634.16 | 474,516,412.50 | 6,971,309,836.02 | 8,499,570,036.91 |
Plus: Changes inaccounting policies
| Plus: Changes in accounting policies |
2023 Full Annual Report
| Item | Year 2022 | |||||||||||
| Share capital | Other equity instruments | Capital reserve | Minus: treasury stock | Other comprehensive income | Special reserve | Surplus reserves | Undistributed profit | Other | Total owners' equities | |||
| Preferred stock | Perpetual bond | Other | ||||||||||
Prior period errorcorrection
| Prior period error correction |
Other
| Other |
II. Beginning balance incurrent year
| II. Beginning balance in current year | 949,024,050.00 | 404,873,115.14 | 199,995,742.59 | -100,157,634.16 | 474,516,412.50 | 6,971,309,836.02 | 8,499,570,036.91 |
III. Increase/decrease inthe current period (less tobe filled out with theminus sign "-")
| III. Increase/decrease in the current period (less to be filled out with the minus sign "-") | 4,735,460.48 | 1,185,179,314.47 | 1,189,914,774.95 |
(I) Total comprehensiveincome
| (I) Total comprehensive income | 1,657,226,772.47 | 1,657,226,772.47 |
(II) Owner's invested anddecreased capital
| (II) Owner's invested and decreased capital | 4,735,460.48 | 4,735,460.48 |
1. Common share
invested by theowner
| 1. Common share invested by the owner |
2. Capital invested by
other equityinstrument holders
| 2. Capital invested by other equity instrument holders |
3. Amount of share-
based paymentincluded in theowner's equity
| 3. Amount of share-based payment included in the owner's equity | 4,735,460.48 | 4,735,460.48 |
4. Other
| 4. Other |
(III) Profit distribution
| (III) Profit distribution | -472,047,458.00 | -472,047,458.00 |
1. Withdrawal of
surplus reserves
| 1. Withdrawal of surplus reserves |
2. Distribution of
owners (orshareholders)
| 2. Distribution of owners (or shareholders) | -472,047,458.00 | -472,047,458.00 |
3. Other
| 3. Other |
(IV) Internal transfer ofowner's equity
| (IV) Internal transfer of owner's equity |
1. Capital surplus
transfer to paid-incapital (or sharecapital)
| 1. Capital surplus transfer to paid-in capital (or share capital) |
2. Earned surplus
transfer to paid-incapital (or sharecapital)
| 2. Earned surplus transfer to paid-in capital (or share capital) |
3. Earned surplus
covering the deficit
| 3. Earned surplus covering the deficit |
4. Carryforward
retained earnings invariation of definedbenefit plan
| 4. Carryforward retained earnings in variation of defined benefit plan |
5. Carryforward
retained earnings ofother comprehensiveincome
| 5. Carryforward retained earnings of other comprehensive income |
6. Other
| 6. Other |
(V) Special reserve
| (V) Special reserve |
1. Draw in this current
| 1. Draw in this current |
2. Use in this current
| 2. Use in this current |
(VI) Other
| (VI) Other |
IV. Balance at the end ofcurrent period
| IV. Balance at the end of current period | 949,024,050.00 | 409,608,575.62 | 199,995,742.59 | -100,157,634.16 | 474,516,412.50 | 8,156,489,150.49 | 9,689,484,811.86 |
III. Basic status of companyHangzhou ROBAM Appliances Co., Ltd. (ROBAM or the Company) is a limited liability company established by HangzhouROBAM Home Appliances & Kitchen Sanitary Co., Ltd. by means of overall change on November 7, 2000. Approved by ChinaSecurities Regulatory Commission (ZJXK [2010] No.1512) in 2010, the Company issued 40 million RMB common shares to thepublic for the first time on November 23, 2010, with a par value of RMB 1 per share and an issue price of RMB 24.00 and thestock code of 002508.As of December 31, 2023, the total share capital of the Company was 949,024,050 shares, and the registered capital was RMB949,024,050. Unified social credit code: 91330000725252053F, legal representative: Ren Jianhua; registered address: No.592,
2023 Full Annual Report
Linping Av., Yuhang Economic Development Zone, Yuhang District, Hangzhou City; headquarters office address: No.592,Linping Av., Yuhang Economic Development Zone, Yuhang District, Hangzhou City. RMB-denominated common shares (Ashares) issued by the Company have been listed in the Shenzhen Stock Exchange.Business scope: general items: Home appliance manufacturing; Research and development of kitchenware, sanitary ware and dailynecessities; Wholesale of kitchenware, sanitary ware and daily necessities; Sales of daily glass products; Sales of home appliances;Home appliance installation services; Research and development of home appliances; Sales of household supplies; Sales of dailynecessities; Manufacturing of daily wooden products; Retail of household appliances; Repair of home appliances; Sales of electricheating food processing equipment; Wholesale of daily necessities; Technical services, development, consultation, exchange,transfer, and promotion; Sales of non-electric home appliances; Manufacturing of non-electric home appliances; Production of gasappliances; Sales of refrigeration and air conditioning equipment; Manufacturing of refrigeration and air conditioning equipment;Development of basic artificial intelligence software; Manufacturing of smart home consumer equipment; Sales of artificialintelligence hardware; Manufacturing of special equipment for business, catering and services; Sales of special equipment forbusiness, catering and services; Import and export of goods; Manufacturing of special equipment for environmental protection;Sales of special equipment for environmental protection (except for items subject to approval according to law, subject to activitiesshall be carried out independently with the business license according to law). License items: production of disinfection equipment;production of electric heating food processing equipment (Items subject to approval according to the law can only be carried outafter getting the approval of relevant departments. Specific operating projects are subject to the approval results of relevantdepartments).The Company is mainly engaged in the development, production, sales and comprehensive services of kitchen appliances in themanufacturing industry. Its main products include range hood, gas hob, sterilizer, steamer, oven, dishwasher, water purifier,microwave, integrated stove and purification tank.The scope of the Company's consolidated financial statements includes 10 subsidiaries: Beijing ROBAM Electric Appliance SalesCo., Ltd., Shanghai ROBAM Electric Appliance Sales Co., Ltd., Hangzhou Mingqi Electric Co., Ltd., Dize HomeAppliancesTrading (Shanghai) Co., Ltd., Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd., Hangzhou ROBAM FuchuangInvestment Management Co., Ltd., Zhejiang Cooking Future Technology Co., Ltd. Hangzhou Jinhe Electric Appliances Co., Ltd.,ROBAM Appliances (Hong Kong) Holdings Limited and ROBAM International (Hong Kong) Trading Co., Ltd. Compared withthe previous year, the consolidation scope of the Company was expanded due to the establishment of ROBAM Appliances (HongKong) Holdings Limited and ROBAM International (Hong Kong) Trading Co., Ltd.IV. Preparation Basis of Financial Statements
1. Preparation basis
The Company's financial statement is prepared based on actual transactions and matters, according to relevant regulations of theAccounting Standards for Business Enterprises issued by the Ministry of Finance and its application guidelines, interpretations andother relevant provisions (hereinafter collectively referred to as "Accounting Standards for Business Enterprises"), the No.15 ofCompilation Rules for Information Disclosure by Companies Offering Securities to the Public - General Provisions of FinancialReports (revised in 2023) issued by China Securities Regulatory Commission, and the accounting policies and accountingestimates set forth in Note "IV. Significant accounting policy and accounting estimate".
2. Going concern
The Company has evaluated its ability to continue as a going concern for the 12 months from December 31, 2023, and has notfound any matters and circumstances that may raise significant doubt on its ability to continue as a going concern. These financialstatements are presented on the basis of going concern assumption.V. Significant Accounting Policy and Accounting EstimateSpecific accounting policy and accounting estimate:
The specific accounting policies and accounting estimates formulated by the Company according to the actual production andoperation characteristics include the operating cycle, the recognition and measurement of bad debt provision of receivables, themeasurement of issued inventory, the classification and depreciation of fixed assets, the amortization of intangible assets, thecapitalization conditions of R&D expenses, the income recognition and measurement, etc.
1. Statement on complying with Accounting Standards for Business EnterprisesThe Company's financial statements comply with the requirements of the Accounting Standards for Business Enterprises and truly,accurately and completely reflect the Company's financial position as of December 31, 2023, the business performance, cash flowsand other relevant information for the year 2023.
2. Accounting period
The fiscal year of the Company runs from January 1 to December 31 of each calendar year.
2023 Full Annual Report
3. Operating cycle
The Company's normal operating cycle is one year (12 months).
4. Accounting standard money
The bookkeeping currency of the Company is RMB.
5. Importance criteria determination method and selection basis
? Applicable □ Not applicable
| Item | Importance criteria |
Important receivables for which provision for bad debts havebeen separately made
| Important receivables for which provision for bad debts have been separately made | The amount of a single item exceeds RMB 10 million |
The important items with amount of bad debt provision forreceivables recovered or transferred back
| The important items with amount of bad debt provision for receivables recovered or transferred back | The amount of a single item exceeds RMB 5 million |
Important accounts receivable write off/debt investment writeoff/other debt investment write off in the current period
| Important accounts receivable write off/debt investment write off/other debt investment write off in the current period | The amount of a single item exceeds RMB 5 million |
Important accounts payable with the aging more than 1 year
| Important accounts payable with the aging more than 1 year | The amount of a single item exceeds RMB 5 million |
Important contract liabilities with the aging more than 1 year
| Important contract liabilities with the aging more than 1 year | The amount of a single item exceeds RMB 10 million |
Important other payables with the aging more than 1 year
| Important other payables with the aging more than 1 year | The amount of a single item exceeds RMB 5 million |
Important projects under construction
| Important projects under construction | Increase or decrease in a single item during the year or the closing book value exceeds RMB 20 million |
Important investment activities
| Important investment activities | The amount of a single investment exceeds RMB 50 million |
Important non-wholly-owned subsidiaries/cooperative enterprisesand joint ventures, and important overseas business entitiesincluded in the scope of merger
| Important non-wholly-owned subsidiaries/cooperative enterprises and joint ventures, and important overseas business entities included in the scope of merger | The cost of investment in a single company is more than RMB 50 million; The income, net profit, net assets and total assets of a single entity account for more than 5% of the related items in the consolidated statements. |
6. Accounting process method of business combination involving enterprises under and not under
common controlThe assets and liabilities acquired by the Company as the combining party through business combination under common controlare measured on the combination date according to the book value of the combined party in the consolidated statements of thefinal controlling party. The difference between the book value of the net assets obtained and the consideration paid for thecombination is adjusted against capital reserve; if the capital reserve is not sufficient to absorb the difference, the retained earningsshall be adjusted.The acquiree's identifiable assets, liabilities and contingent liabilities acquired through business combination not under commoncontrol are measured at fair value on the acquisition date. The combined cost is the fair value of the cash or non-cash assets paid,liabilities incurred or assumed and equity securities issued by the acquirer on the acquiring date for acquisition of the control rightof the acquiree, as well as the sum of direct costs for the business combination (for the business combination realized by stepsthrough several times, the combined cost is the sum of the costs of each transaction). Where the combined cost exceeds theacquirer's interest in the fair value of the acquiree's net identifiable assets, the difference is recognized as goodwill; where thecombined cost is less than the acquirer's interest in the fair value of the acquiree's net identifiable assets, the acquirer firstreassesses the fair values of the acquiree's identifiable assets, liabilities and contingent liabilities in combination and the fair valuesof non-cash assets or equity securities issued for consolidation consideration. If after reassessment, the combined cost is still lessthan the acquirer's interest in the fair value of the acquiree's net identifiable assets, the difference is included in the current non-operating income.
7. Criteria for determining a control and methods for preparing consolidated financial statementsThe Company includes all subsidiaries under its control in the consolidated financial statements.The scope of consolidation in the consolidated financial statements of the Company is determined on the basis of control, andincludes the Company and all subsidiaries controlled by the Company. The Group believes that control means that the Companyhas the power over the invested entity, enjoys variable returns by participating in the relevant activities of the invested entity, andhas the ability to use the power to influence the amount of returns.In preparing the consolidated financial statements, where the accounting policies and the accounting periods of the Company andsubsidiaries are inconsistent, the financial statements of the subsidiaries are adjusted in accordance with the accounting policiesand the accounting period of the Company.All significant internal transactions, current balances and unrealized profits in the consolidation scope shall be set off when theconsolidated statements are prepared. The share of the owner's equity of the subsidiaries not attributable to the parent company and
2023 Full Annual Report
current net profits and losses, other comprehensive income, and the share of other comprehensive income attributable to theminority interests shall be presented in the consolidated financial statements under "minority equity, minority interest income,other comprehensive income attributed to minority shareholders and total comprehensive income attributed to minorityshareholders".For a subsidiary in the business combination under common control, its business performance and cash flows have beenconsolidated since the beginning of the consolidation year into the consolidated financial statements. When preparing andcomparing the consolidated financial statements, the Company shall adjust the relevant items of the previous year's financialstatements, which shall be regarded as the subject of the consolidated report that has been in existence since the beginning of thecontrol by the final controlling party.For a subsidiary in the business combination not under common control, its business performance and cash flows shall beincorporated into the consolidated financial statements from the date of the Company's acquisition of control. In preparing theconsolidated financial statements, the financial statements of the subsidiary shall be adjusted on the basis of the fair values of theidentifiable assets, liabilities and contingent liabilities as determined on the acquiring date.If the Company acquires the equity of the acquiree by steps through several deals and finally forms business combination notunder common control, in the compilation of the consolidated statements, as for the equity interests held in the acquiree before theacquiring date, they shall be re-measured according to their fair values at the acquiring date; the difference between their fairvalues and book value shall be recorded into the investment gains for the period including the acquiring date. Other relatedcomprehensive gains in relation to the equity interests held in the acquiree under the equity accounting before the acquiring date,and the changes in owners' equity other than net profit and loss, other comprehensive income and profit distribution shall becarried forward into profit and loss on investments in the period of the acquiring date, except for other comprehensive incomefrom the change caused by the remeasurement of the net liabilities or net assets of the defined benefit plan by the investee.In consolidated financial statements, when the Company disposes of part of long-term equity investment in the subsidiary beforelosing control rights, the difference between the disposal price and the long-term equity investment disposed of relative to theshare of the net assets to be enjoyed and continuously calculated from the acquiring date or combination date is adjusted againstcapital premium or capital stock premium; if the capital stock premium is not sufficient to absorb the difference, the retainedearnings shall be adjusted.When the Company loses the control right over the investee due to disposal of part of the equity investment or other reasons, theresidual equity shall be re-measured at its fair value on the date of losing the control right in preparing the consolidated financialstatements. The difference between the sum of the consideration acquired by disposal of the equity and the fair value of theresidual equity, and the share of the net assets of the original subsidiary continuously calculated from the acquiring day orcombination date according to the original shareholding ratio, shall be included in the profit and loss on investments in the periodof lose of the control right and written down against the goodwill. Other comprehensive income related to the equity investment ofthe original subsidiary is transferred into the current profit and loss on investments in the period of loss of control right.
8. Joint venture arrangements classification and Co-operation accounting treatmentThe Company's joint venture arrangements include cooperative enterprises. Joint venture means the joint venture arrangement inwhich the joint venture party has rights only to the net assets of the arrangement.The investment in the cooperative enterprise is subject to the accounting treatment by the Company as the joint venture partyaccording to the Accounting Standards for Business Enterprises No. 2 - Long-term Equity Investments.
9. Determining standards of cash and cash equivalents
The cash in the cash flow statement of the Company refers to the cash on hand and deposits readily available for payment. Thecash equivalents represent the short-term (no more than three months) and highly liquid investments that are readily convertibleinto known amounts of cash and that are subject to an insignificant risk of change in value.
10. Foreign currency transaction and foreign currency statement translationForeign currency transaction:
The foreign currency transaction of the Company is converted to Renminbi at the spot rate on the transaction date. The foreigncurrency project, on the balance sheet date, is converted to Renminbi at the spot rate. The resulting converted difference isincluded in current profit and loss except the balance of exchange of special foreign currency loan related to acquisition orconstruction of assets meeting the capitalization conditions. Non-monetary items in foreign currency measured at fair value areconverted by the spot rate on the recognition date of the fair value. The difference between the bookkeeping currency amount afterconversion and the original bookkeeping currency amount is recorded into the capital reserve if belonging to non-monetary itemsin foreign currency of available-for-sale financial assets, or recorded into current profit and loss if belonging to non-monetaryitems in foreign currency measured at fair value and with the changes included in current profit and loss. Non-monetary items inforeign currency measured by the historical cost are still converted by the spot rate on the transaction date without changing theRMB amount.Conversion of financial statements denominated in foreign currencies:
2023 Full Annual Report
The assets and liabilities in the balance sheet of a foreign operation are converted at the spot rate on the balance sheet date; allitems of owner's equity, except the "undistributed profit", are converted at the spot rate at the time of occurrence. The income andexpense items in the income statement of a foreign operation are converted at the approximate exchange rate of the spot rate on thedate of transaction. The converted difference of the foreign currency financial statements generated according to the abovetranslation shall be presented in other comprehensive income. For a foreign currency monetary item which constitutes a netinvestment in overseas operations, the exchange difference resulting from the change of exchange rate shall be presented as othercomprehensive income in the compilation of the consolidated financial statements. Upon disposal of an overseas operation, othercomprehensive income related to the overseas operation shall be transferred to the current profit and loss according to theproportion.The approximate exchange rate of the spot exchange rate on the date of the cash flows shall be based on for the translation of cashflows in a foreign currency and in an overseas subsidiary. The effect of a change in exchange rate on cash shall be separatelypresented in the cash flow statement.
11. Financial instruments
The Company recognizes a financial asset or financial liability when becoming a party of the financial instrument contract.
1. Financial assets
Classification, recognition basis and measurement method for financial assetsAccording to the business model of managing financial assets and the contractual cash flow characteristics of financial assets, thefinancial assets of the Company are classified into: financial assets measured at the amortized cost; financial assets measured atfair value of which changes are recorded into other comprehensive income; financial assets at fair value through profit or loss("FVTPL").The financial asset of the Company that meets the following conditions simultaneously is classified as financial asset measured atthe amortized cost: ① The business model for managing the financial asset is to collect contractual cash flows. ② According tothe contract terms of the financial asset, the cash flow generated on a specific date is only for the payment of the principal and theinterest based on the outstanding principal amount. Such financial asset is initially measured at the fair value and the relevanttransaction costs are charged to initially recognized amount; further measurement is made at the amortized cost. With theexception of the hedged item designated as such, the difference between the initial amount and the amount due shall be amortizedin accordance with the effective interest method, and the gains and losses arising from the amortization, impairment, exchangegains and losses and the derecognition shall be recorded into the current profit and loss.The financial asset of the Company that meets the following conditions simultaneously is classified as the financial asset measuredat fair value of which changes are recorded into other comprehensive income: ① The business model for managing such financialassets is to collect contractual cash flows and to sell the financial asset. ② According to the contract terms of the financial asset,the cash flow generated on a specific date is only for the payment of the principal and the interest based on the outstandingprincipal amount. Such financial asset is initially measured at the fair value and the relevant transaction costs are charged toinitially recognized amount. With the exception of the hedged item designated as such, the other gains or losses incurred from suchfinancial asset, except for credit impairment losses or gains, exchange gains and losses and interest on the financial assetcalculated by effective interest method, shall be included in other comprehensive income; when the financial asset is derecognized,the accumulated gains or losses previously recorded in other comprehensive income should be transferred from othercomprehensive income in current profit and loss.The Company recognizes interest income by effective interest method. The interest income is determined by multiplying the bookbalance of a financial asset by the effective interest rate, except as follows: ① For an acquired or originated financial asset withcredit impairment, the interest income shall be determined according to the amortized cost of the financial asset and the effectiveinterest rate adjusted by credit from the initial recognition. ② For an acquired or originated financial asset with credit impairment,but which has credit impairment in the subsequent period, the interest income of the financial asset shall be determined accordingto the amortized cost and the effective interest rate of the financial asset in the subsequent period.The Company designates the non-transactional equity instruments as the financial assets measured at fair value of which changesare recorded into other comprehensive income. Such designation, once made, shall not be revoked. The non-transactional equityinstruments measured at fair value of which changes are recorded into other comprehensive income are initially measured at thefair value and the relevant transaction costs are charged to initially recognized amount; except for the dividends (excluding the partof investment cost recovery) recorded into the current profit and loss, other related gains and losses (including exchange gains andlosses) are recorded into other comprehensive income and shall not be transferred into the current profit and loss subsequently.Upon derecognition, the accumulated gains or losses previously recorded in other comprehensive income should be transferredfrom other comprehensive income to the retained earnings.The above financial assets measured at the amortized cost and the financial assets measured at fair value of which changes arerecorded into other comprehensive income are classified as financial assets at fair value through profit or loss ("FVTPL"). Suchfinancial asset is initially measured at the fair value and the relevant transaction costs are directly charged to the current profit andloss. Gains or losses on such financial assets are charged to the current profit and loss.
2023 Full Annual Report
The financial assets recognized by the Company through business combination not under common control or constituted bycontingent consideration are classified as financial assets at fair value through profit or loss ("FVTPL").
1. Recognition basis and measurement method for transfer of financial assets
The financial asset is derecognized when meeting any of the following conditions: ① The contract right to charge the cash flow ofthe financial asset is terminated; ② The financial asset has been transferred and almost all risks and remuneration of the financialasset ownership are transferred; ③ The financial asset has been transferred and the Company does neither transfer nor retainalmost all risks and remuneration of the financial asset ownership but gives up the control over the financial asset.If the overall transfer of the financial asset meets the derecognition conditions, the difference of the book value of the transferredfinancial asset from the sum of the consideration received and the derecognized amount in the cumulative amount of the fair valuechanges originally included in other comprehensive income (according to the contract terms of the financial asset transferred, thecash flow generated on a specific date is only for the payment of the principal and the interest based on the outstanding principalamount) is charged to the current profit and loss.If the partial transfer of the financial asset meets the derecognition conditions, the overall book value of the transferred financialasset, between the derecognized part and non-derecognized part, is allocated according to the respective relative fair value. Thedifference of the sum of the consideration received from transfer and the derecognized amount in the cumulative amount of the fairvalue changes in the derecognized part originally included in other comprehensive income (according to the contract terms of thefinancial asset transferred, the cash flow generated on a specific date is only for the payment of the principal and the interest basedon the outstanding principal amount) from the overall book value of the above-mentioned financial asset allocated is charged tocurrent profit and loss.Financial liabilities
1. Classification, recognition basis and measurement method for financial liabilitiesFinancial liabilities, upon initial recognition, are divided into those measured with fair value and with the changes included incurrent profit and loss and other financial liabilities.Financial liabilities measured with fair value and with the changes included in current profit and loss, including the tradingfinancial liabilities and the financial liabilities measured with fair value and with the changes included in current profit and lossupon initial recognition. The financial liability is subsequently measured with the fair value. The gain or loss formed from thechanges in the fair value as well as the dividends and interest expenditure related to the financial liability is charged to currentprofit and loss.The other financial liabilities are subsequently measured with the amortized cost by means of effective interest method. Except forthe following items, the financial assets are classified as the financial liabilities measured at amortized cost: ① Financial liabilitiesmeasured with fair value and with the changes included in current profit and loss, including the trading financial liabilities(including derivative instruments belonging to financial liabilities) and the financial liabilities measured with fair value and withthe changes included in current profit and loss. ② Financial liabilities formed by the transfer of financial assets not conforming tothe derecognition conditions or by continuing to involve in the transferred financial assets. ③ Financial guarantee contracts that donot fall under the above ① or ② circumstances, and loan commitments to lend at a below-market rate that do not fall under theabove ① circumstance.The financial liabilities recognized by the Company as the acquirer through business combination not under common control orformed by contingent consideration are classified as financial liabilities at fair value through profit or loss for accounting.
2. Derecognition of financial liabilities
The Company derecognizes a financial liability (or part of it) only when the underlying present obligation (or part of it) isdischarged. An agreement between the Company and a creditor to replace the existing financial liability with a new one withsubstantially different terms is accounted for as the derecognition of the existing financial liability and the recognition of a newfinancial liability. When the Company makes material alteration to the contract terms of the existing financial liability (or part ofit), it derecognizes the existing financial liability (or part of it) and recognizes a new one according to the altered terms. Thedifference between the book value of the derecognized part and the consideration paid is charged to current profit and loss.
3. Fair value determination method of financial assets and financial liabilities
The fair value of the financial assets and financial liabilities is measured by the Company at the prices in the principal market. Ifno principal market exists, the fair value is measured at the most favorable market price by valuation techniques that are applicableat the time and are supported by sufficient data and other information available. The input value used in the fair valuemeasurement is divided into three levels. That is, the input value of the first level is the unadjusted quotation of the same assets orliabilities on the active market that can be obtained on the measurement day. The input value of the second level is the direct orindirect observable input value of related assets or liabilities other than the input value of the first level. The input value of thethird level is the non-observable input value of the relevant assets or liabilities. The Company prefers the input value of the firstlevel and finally the input value of the third level. The level of the measurement results of the fair value is determined by the
2023 Full Annual Report
lowest level of the input value that is of great significance to the measurement of fair value as a whole.The Company measures the equity instrument investment at fair value. However, in limited cases, if the recent information used todetermine the fair value is insufficient, or the possible estimated amount of the fair value is widely distributed, and the costrepresents the best estimate of the fair value within the range, the cost may represent the appropriate estimate of the fair valuewithin the range.
4. Offset of financial assets and financial liabilities
The financial assets and financial liabilities of the Company are listed respectively in the balance sheet and no mutually offset.However, when the following conditions are met at the same time, they are listed as net amount after offset in the balance sheet: (1)the Company has the legal right to offset the recognized amount and may execute the legal right currently; (2) the Company plansto settle with net amount or realize the financial asset and pay off the financial liability simultaneously.
5. Distinction between financial liabilities and equity instruments and relevant treatment methodThe Company distinguishes between a financial liability and an equity instrument in accordance with the following principles :(1)If the Company cannot unconditionally avoid performing a contractual obligation by delivering cash or other financial assets, thecontractual obligation is defined as a financial liability. Although some financial instruments do not explicitly contain terms andconditions for the obligation to deliver cash or other financial assets, they may indirectly form contractual obligations throughother terms and conditions. (2) If a financial instrument is to be settled by or with the Company's equity instrument, it is necessaryto consider whether the Company's equity instrument used to settle the financial instrument is to be used as a substitute for cash orother financial assets or to give the holder of the instrument a residual equity in the assets of the issuer after deducting all liabilities.In the former case, the financial instrument is a financial liability of the issuer; in the latter case, the instrument is the issuer'sequity instrument. If it is stipulated in a financial instrument contract that the Company shall or may settle the financial instrumentby its own equity instruments in some cases, in which, the amount of the contractual rights or contractual obligations is equal tothe number of its equity instruments available or to be delivered multiplied by its fair value at the time of settlement, the contract isclassified as a financial liability, whether the amount of the contractual rights or obligations is fixed or whether it is based in wholeor in part on changes in variables (such as the interest rate, the price of a commodity or the price of a financial instrument) otherthan the market price of the Company's equity instruments.In classifying a financial instrument (or its components) in the consolidated statements, the Company takes into account all termsand conditions agreed between the members of the Company and the financial instrument holder. The instrument shall beclassified as a financial liability if the Company as a whole is obligated to deliver cash, other financial assets, or settle accounts inother ways that cause the instrument to become a financial liability as a result of the instrument.The interest, dividends, profits or losses related to a financial instrument or its components classified as a financial liability, aswell as gains or losses from redemption or refinancing, shall be recorded into the Company's current profit and loss.The issuance (including refinancing), repurchase, sales or cancellation of financial instrument or its components classified asequity instruments is handled as the equity changes, and the fair value change of the equity instruments is not recognized.Impairment of financial instrumentsThe Company withdraws the provision for impairment for the financial assets measured at the amortized cost, financial assetsmeasured at fair value of which changes are recorded into other comprehensive income, and financial guarantee contracts based onthe expected credit loss, and recognizes the credit impairment loss.The expected credit loss refers to the weighted average credit loss of financial instruments weighted by the risk of default. Creditloss refers to the difference between all contract cash flows discounted by the Company at the original effective interest rate andreceivable according to the contract and all expected cash flows received, that is, the present value of all cash shortage. Thefinancial assets purchased or originated that have suffered from credit impairment shall be discounted at the effective interest rateof the financial assets through credit adjustment.The provision for loss on the accounts receivable from standard transactions in the income guidelines and not containing materialfinancing elements shall be measured by the Company by simplified measurement according to the amount equivalent to theexpected credit loss in the whole duration.For the financial assets purchased or originated that have suffered from credit impairment, only the cumulative changes of theexpected credit loss in the whole duration upon initial recognition are recognized as provision for loss on the balance sheet date.On each balance sheet date, the amount of change in the expected credit loss over the entire duration is recorded as an impairmentloss or gain in the current period. Favorable changes in the expected credit loss are recognized as impairment gains even if theexpected credit loss for the entire duration recognized on the balance sheet date is less than the amount of overdue credit lossreflected in the estimated cash flow upon initial recognition.For the financial assets other than those purchased or originated that have suffered from credit impairment by simplifiedmeasurement, the Company shall evaluate whether the credit risk of relevant financial instrument has increased significantly uponinitial recognition on each balance sheet date and measure its provision for loss and recognize the expected credit losses andchanges respectively in the following cases:
1. If the credit risk of the financial instrument has not increased significantly upon initial recognition and is in the first stage, its
2023 Full Annual Report
provision for loss is measured according to the amount equivalent to the expected credit loss of the financial instrument inthe next 12 months, and the interest income is calculated according to the book balance and the effective interest rate.
1) If the credit risk of the financial instrument has significantly increased without credit impairment upon initial recognition and
is in the second stage, its provision for loss is measured according to the amount equivalent to the expected credit loss of thefinancial instrument in the whole duration, and the interest income is calculated according to the book balance and theeffective interest rate.
2) If the financial instrument has suffered from credit impairment upon initial recognition and is in the third stage, its provisionfor loss is measured according to the amount equivalent to the expected credit loss of the financial instrument in the wholeduration, and the interest income is calculated according to the amortized cost and the effective interest rate.The amount increased or written back of the provision for credit loss of the financial instrument is recorded as an impairment lossor gain in the current period. Except for financial assets measured at fair value of which changes are recorded into othercomprehensive income, the book balance of financial assets is offset by the provision for credit losses. For financial assetsmeasured at fair value of which changes are recorded into other comprehensive income, the Company recognizes its provision forcredit losses in other comprehensive income and does not reduce the book value of the financial assets on the balance sheet.If the Company has measured the provision for loss in the previous accounting period according to the amount equivalent to theexpected credit loss of the financial instrument in the whole duration but the credit risk of the financial instrument has no longerbeen increased significantly upon initial recognition on the current balance sheet date, the Company shall measure the provisionfor loss on the financial instrument on the current balance sheet date according to the amount equivalent to the expected credit lossin the next 12 months and the resulting amount written back from the provision for loss is recorded as an impairment gain in thecurrent period.
① Significant increase in credit risk
By means of the reasonable and valid forward-looking information available, the Company determines whether the credit risks offinancial instruments have increased significantly upon initial recognition by comparing the default risk of the financialinstruments on the balance sheet date with the default risk on the initial recognition date. For financial guarantee contracts, whenthe Company applies the impairment provisions on financial instruments, the date on which the Company becomes a party to makean irrevocable commitment shall be the initial recognition date. The Company will consider the following factors when assessingwhether the credit risk has increased significantly: whether there are significant changes in the actual or overdue operating resultsof the debtor; whether there has been a significant adverse change in the regulatory, economic or technical environment in whichthe debtor resides; whether there are significant changes in the value of collateral as collateral for debt or in the quality ofguarantees or credit enhancements provided by third parties, as well as the probability that these changes are expected to reducethe financial incentive for the debtor to repay on the terms specified in the contract or affect the breach of contract; whether therehas been a significant change in the expected performance and repayment behavior of the debtor; whether the Company's creditmanagement methods for financial instruments have changed.For a financial instrument with low credit risk on the balance sheet date, the Company assumes that the credit risk has notincreased significantly upon the initial recognition. The financial instrument is considered to have a low credit risk if the financialinstrument has relatively low default risk, and the borrower has a strong ability to fulfill its contractual cash flow obligations in ashort term, which will not necessarily reduced even if there are adverse changes in the economic situation and operatingenvironment in a long term.
② Financial assets that have suffered from credit impairment
When one or more events occur that adversely affect the expected future cash flow of a financial asset, the financial asset becomesa financial asset with credit impairment. The evidence for credit impairment of financial assets includes: the debtor has incurredmajor financial difficulties; the debtor breaches a contract, such as by default or exceeding payment of default or late payment ofinterest or principal; the creditor gives the debtor concessions that he would not make under any circumstances for economic orcontractual reasons related to the debtor's financial difficulties; the debtor is likely to go bankrupt or undergo other financialrestructuring; the financial difficulties of the issuer or debtor cause the active market for the financial asset to disappear; asubstantial discount at which a financial asset is purchased or originated reflects the fact of credit loss.The credit impairment of the financial asset may be caused by the joint action of the above events, and may not necessarily becaused by the events that can be identified separately.
③ Determination of expected credit loss
The Company evaluates the expected credit losses of financial instruments on the basis of individual and combined instruments,and in assessing the expected credit losses, takes into account reasonable and valid information about past events, currentconditions and projections of future economic conditions.Based on the characteristics of common credit risks, the Company divides financial instruments into different combinations. Theindividual assessment standards and the characteristics of the combination credit risks of relevant financial instruments are detailedin the accounting policies of relevant financial instruments.The Company shall determine the expected credit losses of the relevant financial instruments in the following ways:
2023 Full Annual Report
In the case of a financial asset, the credit loss is the present value of the difference between the contract cash flow receivable bythe Company and the expected cash flow receivable;In the case of a financial guarantee contract, the credit loss is the present value of the difference between the estimated amount ofpayment to be made by the Company in respect of any credit loss incurred under the contract, and the amount that the Companyexpects to receive from the contract holder, debtor or anywhere else;In the case of a financial asset with credit impairment on the balance sheet date but not purchased or originated with creditimpairment, the credit loss is the difference between the book balance of the financial asset and the present value of the estimatedfuture cash flow discounted at the original effective interest rate.
12. Notes receivable
Based on the acceptor credit risk of notes receivable as a common risk feature, the Company divides the notes receivable intodifferent combinations and determines the expected credit loss accounting estimation policy:
| Combination classification | Basis for recognition of combination | Accrual method |
Banker's acceptance billcombination
| Banker's acceptance bill combination | The acceptor is a banking financial institution | The Company believes that the banker's acceptance bill held does not have significant credit risk and will not cause major losses due to bank default. |
Commercial acceptance billcombination
| Commercial acceptance bill combination | The acceptor is a financial company or other non-bank financial institution or enterprise unit | The Company measures the provision for bad debt of commercial acceptance bills receivable according to the expected credit loss of the entire duration |
13. Accounts receivable
The provision for loss on the accounts receivable (whether or containing material financing elements) from standard transactionsin the Accounting Standards for Enterprises No.14 - Revenues and on the lease receivables regulated in the Accounting Standardsfor Enterprises No. 21 - Lease shall be measured by the Company by simplified measurement according to the amount equivalentto the expected credit loss in the whole duration.The Company shall evaluate whether the credit risks of accounts receivable have increased significantly on the basis of a singlefinancial instrument or a financial instrument combination. The Company makes single assessment of the credit risks for theaccounts receivable with significantly different credit risks and the following features: accounts receivable in dispute with theother party or involving litigation or arbitration; accounts receivable with obvious signs that the debtor is likely to be unable toperform the repayment obligations. It is feasible for the Company to evaluate whether the credit risks increase significantly on thebasis of financial instrument combination if it is unable to obtain sufficient evidence for significant increase in credit risks atreasonable cost at the level of single financial instrument. The Company can classify financial instruments based on thecharacteristics of common credit risk in assessment based on the financial instrument combination.The Company divides the accounts receivable into the following combinations based on their credit risk characteristics:
| Combination classification | Basis for recognition of combination | Accrual method |
Credit loss withdrawn on accountsreceivable by aging analysis method
| Credit loss withdrawn on accounts receivable by aging analysis method | The receivables with the same aging have similar credit risk characteristics | Expected credit loss rate |
Related parties in the consolidationscope
| Related parties in the consolidation scope | Funds of subsidiaries in the consolidation scope of controlling shareholders | Generally no expected credit loss |
If there is objective evidence that a credit impairment has occurred in an account receivable, the Company shall withdraw theprovision for bad debts for that account receivable and recognize the expected credit loss.For the accounts receivable with the credit loss drawn by aging analysis method, based on the actual credit losses of the previousyear and taking into account the forward-looking information of the current year, the Company's accounting estimation policy formeasuring expected credit losses is as follows:
| Aging | Expected credit loss rate |
Within 1 year
| Within 1 year | 5.00% |
1~2 years
| 1~2 years | 10.00% |
2~3 years
| 2~3 years | 20.00% |
3~4 years
| 3~4 years | 50.00% |
4~5 years
| 4~5 years | 80.00% |
More than 5 years
| More than 5 years | 100.00% |
The Company shall calculate the expected credit loss of the accounts receivable on the balance sheet date. If the expected creditloss is greater than the book amount of the provision for impairment of current accounts receivable, the Company recognizes thedifference as the provision for impairment of accounts receivable, debits the "credit impairment loss" and credits the "provision for
2023 Full Annual Report
bad debt". On the contrary, the Company recognizes the difference as an impairment gain and records the opposite.Where the Company has actually incurred a credit loss and the relevant accounts receivable are determined to be irrecoverable,and the write-off is approved, the "provision for bad debt" shall be debited and the "accounts receivable" shall be creditedaccording to the approved write-off amount. If the write-off amount is greater than the provision for loss which has beencalculated, the "credit impairment loss" shall be debited according to the difference.
14. Receivables financing
The financial asset of the Company that meets the following conditions simultaneously is classified as the financial asset measuredat fair value of which changes are recorded into other comprehensive income: the business model for managing such financialassets is to collect contractual cash flows and to sell the financial asset; according to the contract terms of the financial asset, thecash flow generated on a specific date is only for the payment of the principal and the interest based on the outstanding principalamount.The Company transfers the accounts receivable held in the form of discount or endorsement. Such accounts receivable withfrequent business and large amount involved are measured at fair value and their changes are recorded into other comprehensiveincome according to relevant regulations in the financial instrument standards if the management business model is to collect andsell contractual cash flows.
15. Other receivables
The Company divides the process of credit impairment of other receivables into three stages, and has different accountingtreatment methods for other receivables impairment in different stages:
? The credit risks has not increased significantly upon initial recognition (first stage).For the financial instruments in this stage, the Company should measure the provision for loss according to the expected credit lossover the next 12 months.The Company takes aging as the credit risk characteristic to group other receivables and measures them on the basis ofcombination, which is equivalent to the expected credit loss in the next 12 months.
? The credit risk has significantly increased without credit impairment upon initial recognition (second stage).For the financial instruments in this stage, the Company should measure the provision for loss according to the expected credit lossin the whole duration.
? Credit impairment upon initial recognition (third stage)
For the financial instruments in this stage, the Company should measure the provision for loss according to the expected credit lossin the whole duration.
16. Contract assets
Methods and standards for the recognition of contract assetsContract assets refer to the Company's rights to receive consideration for the transfer of goods to the customer, and such rights aresubject to factors other than the passage of time. If the Company sells two clearly distinguishable commodities to customers, and ithas the right to receive payment due to the delivery of one of the commodities, but the receipt of such payment also depends on thedelivery of another commodity, the Company regards the right to receive payment as a contract asset.Recognition method and accounting treatment method of the expected credit loss of contract assetsFor the recognition method of expected credit loss of contract assets, refer to the above 10. Financial assets and financial liabilities,
12. Notes receivable and 13. Accounts receivable.
The Company shall calculate the expected credit loss of the contract assets on the balance sheet date. If the expected credit loss isgreater than the book amount of the provision for impairment of current contract assets, the Company recognizes the difference asthe provision for impairment, debits the "assets impairment loss" and credits the "provision for impairment of contract assets". Onthe contrary, the Company recognizes the difference as an impairment gain and records the opposite.Where the Company has actually incurred a credit loss and the relevant contract assets are determined to be irrecoverable, and thewrite-off is approved, the "provision for impairment of contract assets" shall be debited and the "contract assets" shall be creditedaccording to the approved write-off amount. If the write-off amount is greater than the provision for loss which has beencalculated, the "assets impairment loss" shall be debited according to the difference.
17. Inventory
The Company's inventory mainly includes low priced and easily worn articles, raw materials, work in process, merchandiseinventory and goods shipped in transit, etc.
2023 Full Annual Report
Inventory is initially measured according to the cost. The inventory cost includes purchase cost, processing cost and other costs.The perpetual inventory system is adopted for the inventories and the inventories are price according to the actual cost whenobtained; the cost of the inventories is recognized by the weighted average method when received or issued. The low priced andeasily worn articles and packages are amortized by one-time writing-off method.The year-end inventory is priced according to the cost of inventories or net realizable value, whichever is lower. In case ofinventory damage, full or partial obsolescence or selling price below the cost, the non-recoverable part of its cost is expected andthe inventory falling price reserves are withdrawn. The inventory falling price reserves of the merchandise inventory and rawmaterials are withdrawn according to the difference between the cost of a single inventory item and its net realizable value; for theinventories with large quantity and low unit price, the inventory falling price reserves are withdrawn according to the inventorycategory.For the merchandise inventory, work in process, materials for sale and other merchandise inventories directly used for sale, the netrealizable value is recognized by the amount of the estimated sale price of the inventories subtracted by the estimated sellingexpenses and related taxes; for the material inventory possessed for production, the net realizable value is recognized by theamount of the estimated sale price of the finished products subtracted by the estimated cost about to occur in completion,estimated selling expenses and related taxes.
18. Assets held for sales
If the Company recovers the book value of an asset mainly through the sale (including the non-monetary assets exchange ofcommercial nature, the same hereinafter) rather than continuous use of a non-current asset or disposal group, such asset isclassified as an asset held for sales
1. The Company classifies non-current assets or disposal groups as held for sale if they meet the following conditions
simultaneously: (1) immediately available for sale under current conditions in accordance with the usual practice of sellingsuch type of assets or disposal groups in similar transactions; (2) the sale is highly likely, that is, the Company has resolved asale plan and obtained a firm purchase commitment, and the sale is expected to be completed within one year. Whererelevant provisions require the approval of relevant authority or regulatory before the sale, such approval should beindispensable. Before the Company classifies non-current asset or disposal group as held for sale for the first time, itmeasures the book value of non-current asset or each asset and liability in the disposal group in accordance with relevantaccounting standards. Upon initial measurement or remeasurement of the non-current asset and disposal group held for saleon the balance sheet date, if the book value is higher than the net amount of the fair value minus the selling expense, thebook value is written down to the net amount of the fair value minus the selling expense, the amount written down isrecognized as the assets impairment loss and included in the current profit and loss. The provision for impairment ofavailable for sale assets is withdrawn.
2. The non-current assets or disposal groups acquired by the Company exclusively for resale are classified as held for sale at
the date of acquisition if, at the date of acquisition, they meet the specified conditions of "sale is expected to be completedwithin one year" and are likely to meet other conditions for classification as held for sale within a short period of time(usually three months). At initial measurement, the lower of the initial measurement amount and the net amount afterdeducting selling expenses from fair value, assuming it is not classified as held for sale, is measured. Except for non-currentassets or disposal groups acquired in a business combination, the difference arising from the initial measurement amount of anon-current asset or disposal group at fair value less selling expenses is recognized in profit or loss.
3. If the Company loses control over the subsidiary due to the sale of its investment in the subsidiary or other reasons, no
matter whether the Company retains part of the equity investment after the sale, when the investment in the subsidiary to besold meets the conditions for classification of held for sale, the overall investment in the subsidiary is classified as held forsale in the individual financial statements of the parent company, and all assets and liabilities of the subsidiary are classifiedas held for sale in the consolidated financial statements.
4. If on the subsequent balance sheet date, the net amount of non-current assets held for sale after deducting the sellingexpenses increases, the previously written-down amount shall be restored and reversed in the amount of assets impairmentloss recognized after classification as held for sale, with the reversed amount included in current profit and loss. The assetsimpairment losses recognized before classification as held for sale shall not be reversed.
5. The amount of asset impairment loss recognized for disposal groups held for sale is offset against the book value of goodwillin the disposal group, and then against the book value of each non-current asset on a pro rata basis according to itsproportionate of the book value.If on the subsequent balance sheet date, the net amount of assets in disposal group held for sale after deducting the sellingexpenses increases, the previously written-down amount shall be restored and reversed in the amount of the assets impairment lossrecognized for non-current assets applicable to relevant measurement regulations after classification as held for sale, with thereversed amount included in current profit and loss. The book value of the goodwill written down, and the assets impairment lossrecognized for the non-current assets before classification as held for sale shall not be reversed.The amount of subsequent reversal of impairment losses recognized for assets in disposal groups held for sale is increasedproportionately to the book value of each non-current asset in the disposal group, other than goodwill, based on its proportionateshare of the carrying amount of the asset.
2023 Full Annual Report
The depreciation or amortization is not withdrawn for the non-current assets held for sale or for those in the disposal group, andthe interest and other expenses on liabilities held for sale in the disposal group continue to be recognized.When the non-current assets or disposal group held for sale are no longer classified as held for sale because they no longer meetthe classification conditions of held for sale, or the non-current assets are removed from the disposal group held for sale, they willbe measured at the lower of the following:
(1) the amount after adjustment according to the depreciation, amortization, or impairment that would have been recognized if ithad not been classified as held for sale category, as for the book value before classified as held for sale category; (2) recoverableamount. When the non-current assets or disposal groups held for sale are derecognized, the unrecognized gains or losses shall beincluded in the current profit and loss.
19. Debt investment
N/A
20. Other debt investments
N/A
21. Long-term receivables
N/A
22. Long-term equity investment
The Company's long-term equity investment mainly consists of investment in subsidiaries, investment in joint ventures and equityinvestment in cooperative enterprises.The Company's judgment on common control is based on the collective control of the arrangement by all participants or acombination of participants, and the policy on the activities related to the arrangement must be agreed upon by all participants inthe collective control of the arrangement.When the Company directly or indirectly owns more than 20% (including) but less than 50% voting rights of the investee throughits subsidiaries, it is generally considered to have a significant impact on the investee. When the Company owns less than 20%voting rights of the investee, it shall be judged to have a significant impact on the investee with comprehensive consideration todispatching representatives in the board of directors of the investee or similar authority, participating in the formulation process ofthe financial and business policy of the investee, conducting important transactions with the investee, dispatching management tothe investee or providing key technical data for the investee.The company that forms control over the investee shall be a subsidiary of the Company. For the long-term equity investmentacquired through business combination under common control, the share of the book value of the net assets of the combined partyin the consolidated statements of the final controlling party, on the combination date, is regarded as the initial cost of the long-termequity investment. If the book value of the net assets of the combined party on the combination date is negative, the long-termequity investment cost shall be determined as zero.If the Company acquires the equity of the investee under common control by steps through several deals, finally forms businesscombination and such deals belong to package deal, the deals shall be subject to accounting treatment as a deal to obtain thecontrol right. If the deals do not belong to the package deal, the share of the book value of the net assets of the combined party inthe consolidated financial statements of the final controlling party, on the combination date, is regarded as the initial cost of thelong-term equity investment. The difference between the initial cost of the long-term equity investment and the sum of the bookvalue of the long-term equity investment before the combination plus the book value of the new consideration for shares on thecombination date is adjusted against capital reserve; if the capital reserve is not sufficient to absorb the difference, the retainedearnings shall be written down.For the long-term equity investment acquired through business combination not under common control, the combined cost is theinitial investment cost.If the Company acquires the equity of the investee not under common control by steps through several deals, finally formsbusiness combination and such deals belong to package deal, the deals shall be subject to accounting treatment as a deal to obtainthe control right. If the deals do not belong to the package deal, the sum of the book value of the equity investment originally heldand newly increased investment cost shall be considered as initial cost of the investment that calculates according to cost method.If the equity held before the acquiring date is calculated by the equity method, other comprehensive income calculated by theequity method is not adjusted and shall be subject to accounting treatment when disposing of the investment through adopting thebasis for the direct disposal of relevant assets or liabilities of the investee. If the original equity held before the acquiring date iscalculated at fair value in the available-for-sale financial assets, the change in the cumulative fair value originally included in othercomprehensive income is transferred to the current investment profit and loss on the combination date.Except for the long-term equity investment acquired through business combination, for the long-term equity investment made bypaying cash, the investment cost shall be the purchase price actually paid; for the long-term equity investment acquired by issuing
2023 Full Annual Report
equity securities, the investment cost shall be the fair value of the equity securities issued; for the long-term equity investmentacquired through the exchange of non-monetary assets, the initial investment cost shall be recognized in accordance with therelevant provisions of the Accounting Standards for Business Enterprises No.7 - Exchange of Non-monetary Assets; for the long-term equity investment acquired by debt restructuring, the initial investment cost shall be recognized in accordance with therelevant provisions of the Accounting Standards for Business Enterprises No.12 - Debt Restructuring.The investment in subsidiaries is measured by the cost method and the investment in joint ventures and cooperative enterprises ismeasured by equity method.For the long-term equity investment calculated by cost method subsequently, the long-term equity investment cost is adjustedwhen the investment is added or recovered. The cash dividends or profits declared to be distributed by the investee should berecognized as current investment income.The book value of the long-term equity investment measured subsequently by equity method shall be increased or decreased withthe change in the owner's equity of the investee. The share of the net profits and losses of the investee to be enjoyed shall berecognized after offsetting of the part of the internal deal profits and losses attributable to the Company between the joint ventureand cooperative enterprise according to the shareholding ratio and after adjustment of the new profits of the investee on the basisof the fair value of the identifiable assets of the investee when the investment is obtained and according to the Company'saccounting policy and accounting period.In disposal of the long-term equity investment, the balance between the book value and the actual price obtained is charged tocurrent investment income. If a long-term equity investment calculated by the equity method is included in the owner's equity dueto changes in the owner's equity other than the net profit and loss of the investee, the part originally included in the owner's equityin the disposal of the investment shall be transferred to the current investment profit and loss by the corresponding proportion.If the deals for disposal of the equity by steps until the loss of the control right do not belong to the package deal, each deal shallbe subject to accounting treatment respectively. If they belong to a package deal, the deals shall be subject to accounting treatmentas a deal for disposal of subsidiary and loss of the control right; however, the difference between each disposal price and the bookvalue of the long-term equity investment corresponding to the equity disposed of before the loss of control right is recognized asother comprehensive income and then transferred into the current profit and loss in the period of loss of control right.
23. Investment properties
Measurement mode of investment propertiesCost methodMethod of depreciation or amortizationThe Company's investment properties refer to the properties held for rent gain or capital gain or the both thereof, which aremeasured by cost model.The Company's investment properties are depreciated or amortized by the straight-line depreciation method. The estimated servicelife, net residual rate and yearly depreciation (amortization) ratio of all types of investment properties are as follows:
| Category | Depreciation life (year) | Expected residual rate (%) | Yearly depreciation (%) |
Houses and buildings
| Houses and buildings | 20 | 5.00 | 4.75 |
Land use right
| Land use right | 50 | 0.00 | 2.00 |
24. Fixed assets
(1) Recognition conditions
The Company's fixed assets refer to the tangible assets with a service life of more than one year and a unit value of more thanRMB 5,000, and are held for production of goods, provision of labor, lease (excluding lease of buildings or molds) or operatingmanagement.The fixed assets can be recognized when the economic benefits related to the fixed assets are likely to flow to the Company andwhen the cost of the fixed assets can be reliably measured. The fixed assets, including buildings, machinery equipment,transportation equipment and other equipment, are entered into the account by actual cost when obtained, in which, the cost ofpurchased fixed assets includes buying price, import tariff and other relevant taxes, as well as other expenses incurred before thefixed assets reach the extended usable status and directly attributable to the assets; cost of self-constructed fixed assets, consistingof necessary expenses incurred from construction of the asset to the intended serviceable conditions; the cost invested by theinvestors in the fixed assets is determined according to the value stipulated in the investment contracts or agreements, except thevalue stipulated in the contracts or agreements is not fair; the fixed assets under financing lease shall be recorded in the accountsaccording to the lower present value between the fair value of the leased asset on the lease commencement date and the minimumlease payment.
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(2) Depreciation method
| Category | Depreciation method | Depreciation life | Residual rate | Yearly depreciation |
Houses and buildings
| Houses and buildings | Straight-line method | 20 | 5.00% | 4.75% |
Machinery equipment
| Machinery equipment | Straight-line method | 10 | 5.00% | 9.50% |
Transportationequipment
| Transportation equipment | Straight-line method | 5 | 5.00% | 19.00% |
Other equipment
| Other equipment | Straight-line method | 5 | 5.00% | 19.00% |
25. Construction in progress
The construction in progress is measured according to the actual cost. The self-run construction shall be measured by directmaterials, direct wages and direct construction costs; the outsourced construction shall be measured according to the paid projectcost; the equipment installation project cost shall be determined according to the value, installation cost and test run expenses ofthe equipment installed. The cost of the construction in progress should also include the capitalized borrowing costs.The fixed assets of the construction shall be carried forward to the fixed assets by the estimated value according to the constructionbudget, cost or actual construction cost from the date when they reach the intended usable state, and the depreciation shall becalculated and withdrawn from the following month. The original value difference of the fixed assets is adjusted after thecompletion settlement procedures.The construction in progress is carried forward to the fixed assets when it reaches the intended serviceable condition, based on thefollowing criteria:
| Item | Criteria for carrying forward fixed assets |
Houses and building
| Houses and building | If (1) the physical construction, including installation, has been fully completed or substantially completed; (2) the amount of money spent on the purchased and constructed houses and buildings is very small or almost no longer occurs; (3) the purchased and constructed houses and buildings have met the design or contract requirements, or are basically in line with the design or contract requirements; (4) the construction work has reached the predetermined usable state but has not yet completed the final settlement, it will be carried forward as fixed asset at its estimated value based on the actual cost of the construction from the date of reaching the intended serviceable condition. |
Machinery equipment
| Machinery equipment | The equipment management department and the equipment manufacturer are jointly responsible for equipment installation and debugging, including equipment hardware debugging, process condition debugging, etc. When the debugging is completed to reach the intended serviceable condition, the equipment will be carried forward as fixed asset after approval according to the process. |
Transportation means
| Transportation means | When it reaches the intended serviceable condition, it will be carried forward as fixed asset after approval according to the process |
Other equipment
| Other equipment | When it reaches the intended serviceable condition, it will be carried forward as fixed asset after approval according to the process |
26. Borrowing costs
The construction or production borrowing costs incurred and directly attributable to the assets meeting the capitalizationconditions are capitalized and included in relevant asset costs; other borrowing costs are included in the current profit and loss.Recognition principle of capitalization of borrowing costs: the construction or production borrowing costs incurred and directlyattributable to the assets meeting the capitalization conditions are capitalized and charged to relevant asset costs; other borrowingcosts shall be recognized as costs according to the amount incurred when they occur and shall be included in the current profit andloss. Assets meeting the capitalization conditions refer to the fixed assets, intangible assets, inventories and other assets which canreach the intended usable or marketable status only after quite a long time (generally more than 1 year) of construction orproduction activities.Capitalization period of borrowing costs: the borrowing costs related to the assets that meet the capitalization conditions start to becapitalized when the expenditure to acquire and the borrowing costs have occurred and the construction or production activitiesrequired to make the assets reach the usable or marketable status have started. In case of abnormal interrupt of the assets meetingthe capitalization conditions for more than 3 consecutive months in the construction or production process, the capitalization of theborrowing costs is suspended; the borrowing costs stop capitalization when the construction or production assets meeting thecapitalization conditions reach the usable or marketable status.Calculation method for capitalized amount of borrowing costs: when special borrowings are borrowed for construction orproduction of the assets meeting the capitalization conditions, the difference between the interest incurred in the period of specialborrowings and the interest income from the unused borrowing fund in the bank or the investment income of temporary
2023 Full Annual Report
investment is deemed as the capitalized amount of the interest on the special borrowings. When general borrowings are occupiedfor construction or production of assets meeting the capitalized conditions, the weighted average of the expenditure to acquireexceeding the special borrowings in the cumulative expenditure to acquire is multiplied by the weighted average interest rate ofthe general borrowings occupied to calculate and determine the amount of interest to be capitalized on the general borrowings.
27. Biological assets
N/A
28. Oil and gas assets
N/A
29. Intangible assets
(1) Service life and its determination basis, estimation, amortization method or review procedure
The Company's intangible assets mainly include land use rights, software, trademarks, patents, etc. The actual cost of thepurchased intangible assets shall be the actual cost and other relevant expenses. The actual cost of the intangible assets invested bythe investors is determined according to the value stipulated in the investment contracts or agreements. If the value stipulated inthe contracts or agreements is not fair, the actual cost is determined according to the fair value. The intangible assets are amortizedby the straight-line method. The classification and amortization period of the Company's intangible assets are as follows:
| Category | Amortization period |
Land use right
| Land use right | 50 |
Patent
| Patent | 10 |
Software
| Software | 3~5 years |
Trademark and domain name
| Trademark and domain name | 10 |
The Company's land use right is amortized averagely according to the transfer life from the date of transfer; the Company's patentright, non-patented technology, the right to use the special software and other intangible assets are amortized averagely by theshortest of the estimated service life, the beneficial life stipulated in the contract and the effective life stipulated by law. Theamortization amount shall be recorded into the current profit and loss or the cost of related assets according to its beneficiaryobject.The expected useful life and amortization methods of the intangible assets with limited useful life are reviewed at the end of eachyear and adjusted accordingly in case of change; the expected useful life of the intangible assets with uncertain useful life arereviewed in each accounting period. If there is evidence that the service life of intangible assets is limited, the service life shall beestimated and amortized within the expected useful life.
(2) Collection scope of R&D expenditure and related accounting treatment methodsThe expenditure of the Company's internal R&D projects is classified into the expenditure at the research stage and theexpenditure at the development stage according to its nature and great uncertainty of the intangible assets eventually formed byR&D activities.For intangible assets developed independently, the expenditure in the research stage shall be included in the current profit and losswhen it occurs; The expenditures in the development stage shall be recognized as assets if they meet the following conditions atthe same time:
? Technically feasible to complete the intangible assets, so that they can be used or sold;? It is intended to finish and use or sell the intangible assets;? The products generated by the intangible assets can be sold or the intangible assets themselves can be sold;? It is able to finish the development of the intangible assets, and able to use or sell the intangible assets, with the support
of sufficient technologies, financial resources and other resources; and? The development expenditures of the intangible assets can be reliably measured.
The expenses at the development stage not meeting above conditions are included in current profits and losses when obtained. Thedevelopment expenses included in profits and losses in previous periods are not recognized as assets in subsequent periods. Thecapitalized expenses at the development stage are listed as development expenses in the balance sheet and transferred to intangibleassets when the project reaches the intended usable state.If the expenditure at the research stage and the expenditure at the development stage cannot be distinguished, the R&D
2023 Full Annual Report
expenditure incurred is fully charged to the current profit and loss. The cost of intangible assets formed by internal developmentactivities consists only of the total expenditure incurred between the point at which the conditions for capitalization are met andthe time at which the intangible assets reach their intended use. The expenditure that has been expensed and included in the profitand loss for the same intangible asset before reaching the capitalization conditions in the development process is no longeradjusted.
30. Long-term assets impairment
The Company checks the intangible assets determined for the long-term equity investment, fixed assets, construction in progressand service life of the subsidiaries, joint ventures and cooperative enterprises on each balance sheet date. When there are thefollowing signs, indicating that the assets may be impaired, the Company will conduct impairment test; for intangible assets withuncertain goodwill and beneficial life and development expenditure that has not yet reached its intended usable state, impairmenttest shall be conducted at the end of each year whether there is any sign of impairment or not. Where it is difficult to test therecoverable amount of a single asset, the test shall be based on the asset group or the combination of asset groups to which theasset belongs.After the impairment test, if the book value of the asset exceeds the recoverable amount, the difference is recognized as animpairment loss. Once the impairment loss of the said asset is recognized, it will not be carried back in the subsequent accountingperiod. The recoverable amount of an asset is the higher of the net amount of the assets fair value subtracted by the disposal costsand the present value of the expected future cash flow of the assets. Signs of impairment are as follows:
The market price of assets has fallen sharply in the current period, and its decline is significantly higher than the expected declinedue to the passage of time or normal use;? The economic, technical or legal environment in which the enterprise operates and the market in which its assets are
located are undergoing or will undergo significant changes in the current period or in the near future, thus adverselyaffecting the enterprise;
? The market interest rate or other market return on investment has increased in the current period, which affects thediscount rate of the enterprise in calculating the present value of the expected future cash flow of assets, resulting in asignificant reduction in the recoverable amount of asset;? There is evidence that the assets have become obsolete or its entity has been damaged;? The assets have been or will be idle, terminated or disposed of in advance;? The evidence in the internal report of the enterprise indicates that the economic performance of the assets has been or
will be lower than the expectation, such as the net cash flow created by the assets or the realized operating profit (or loss)is far lower (or higher) than the expected amount;? Other signs indicating that the assets may have been impaired.
31. Long-term unamortized expenses
The long-term unamortized expenses of the Company refer to the expenses that have been paid, but should be borne in the currentperiod and subsequent periods with the amortization period of more than one year (excluding one year). Such expenses areamortized on average in the benefit period. If a long-term unamortized expense item cannot benefit a later accounting period, theamortized value of the item that has not been amortized is transferred to the current profit and loss.
32. Contract liabilities
Contract liabilities reflect the obligations of the Company to transfer goods to customers for consideration has been received orreceivable from customers. If the customer has paid the contract consideration or the Company has obtained the right to receivethe contract consideration unconditionally before the Company transfers the goods to the customer, the contract liabilities shall berecognized according to the amount received or receivable at the earlier of the actual payment made by the customer and the duepayment.
33. Employee compensation
(1) Short-term compensation accounting method
The short-term compensation mainly includes salary, bonus, allowances and subsidies, employee services and benefits, housingfund, labor union expenditure and personnel education fund, medical insurance premiums, industrial injury insurance premium,birth insurance premium and other social insurance premiums. The short-term compensation actually happened during theaccounting period when the staff offering the service for the Company shall be recognized as liabilities and included in the currentgains and losses or relevant assets cost by the beneficiary object.
(2) Post-employment benefits accounting method
Post-employment benefits mainly include basic endowment insurance, unemployment insurance and enterprise annuity payment
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and are classified as defined contribution plans according to the risks and obligations undertaken by the Company. The sinkingfunds made to a separate entity on the balance sheet date in exchange for services rendered by the employee during the accountingperiod shall be recognized as liabilities and included in the current gains and losses or relevant assets cost by the beneficiary object.
(3) Termination benefits accounting method
The Company puts forward compensation for an employee to terminate the labor relationship with the employee before expiry ofthe employee labor contract. When failing to unilaterally withdraw the dismission welfare due to termination of labor relation planor downsizing suggestions, or when recognizing the costs related to restructuring involving payment of dimission welfare(whichever comes first), the Company recognizes the employee compensation liabilities from the dismission welfare and includesin current profit and loss. The compensation that is paid beyond a year is included in current profit and loss after discount.
(4) Other long-term employee benefits accounting method
Other long-term employee benefits mainly include the long-term incentive plan and long-term benefits and shall be subject to theaccounting treatment according to relevant provisions in the defined contribution plans.
34. Estimated liabilities
Any business related to contingencies such as external guarantee, pending litigation or arbitration, product quality assurance, staffreduction plan, loss contract, restructuring obligation, environmental pollution remediation, commitment and fixed asset disposalobligation, if meeting all of the following conditions, is recognized as a liability: the obligation is the current obligation undertakenby the Company; performance of the obligation is likely to lead to the outflow of economic benefits; the amount of the obligationcan be reliably measured.The estimated liabilities are initially recognized according to the best estimate number of the expenditure required to performrelevant current obligations with consideration to the contingency related risks, uncertainty, time value of money and other factors.The Company reviews the current best estimate on the balance sheet date, and adjust the book value of estimated liabilities.Contingent liabilities of the acquiree acquired in a business combination not under the same control are measured at fair value atthe time of initial recognition, and subsequently measured at the higher of the amount expected to be recognized for the liabilityand the amount initially recognized less the accumulated amortization determined in accordance with the principles of revenuerecognition.
35. Share-based payment
The term share-based payment refers to a transaction in which the Company grants equity instruments or undertakes equity-instrument-based liabilities in return for services from employee or other parties. The share-based payments shall consist of equity-settled share-based payments and cash-settled share-based payments.The equity-settled share-based payment in return for employee services is measured at the fair value of the equity instrumentsgranted to the employees. The amount of fair value shall be recognized as relevant costs or expenses and capital reserves on eachbalance sheet date during the waiting period, based on the best estimate of the number of equity instruments with exercisablerights, at the fair value of equity instrument on the grant date, provided that the services obtained during the waiting period arecompleted or the prescribed performance conditions are met. The Company shall include the service obtained at the current periodinto relevant costs or expenses, and increase the capital reserve accordingly.If the equity-settled share-based payment is cancelled, it will be treated as an accelerated exercise on the cancellation date, and theunconfirmed amount will be recognized immediately. If the employee or other party can choose to satisfy the non-exercisablecondition but failed to do so in the waiting period, it will be treated as a cancellation of equity-settled share-based payment.However, if a new equity instrument is granted and the new equity instrument granted is deemed to be a replacement for thecancelled equity instrument on the grant date, the granted replacement equity instrument will be handled in the same manner asany amendment to the terms and conditions of the original equity instrument.The cash-settled share-based payment settled will be measured according to the fair value of the liability confirmed basing on theshares borne by the Company and other equity instruments. If the rights can be exercised immediately after being granted, thepayment will be counted into relevant costs or expenses at the fair value of the liabilities assumed and the liability will beincreased correspondingly. If the rights can only be exercised after the situation that service within the waiting period is completedand set performance is achieved, the service obtained at the current period, according to the fair value amount of the liability borneby the Company, and basing on the optimum estimation for the condition of exercising rights, will be counted into costs orexpenses on each and every balance sheet date during the waiting period, and the liability will be increased correspondingly.Each and every balance sheet date and settlement before relevant liability settlement, the fair value of liability will be remeasured,of which changes occurred will be counted into the current period.
36. Preferred shares, perpetual bonds and other financial instruments
N/A
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37. Income
Accounting policies for disclosure of income recognition and measurement based on business typesThe Company's operating income mainly includes income from selling commodities, income from offering labor and transfer ofasset use right.Income recognition principleThe Company has fulfilled its contractual obligation to recognize income when the customer acquires control of the relevant goodsor services. Obtaining control of the relevant goods or services is the ability to dominate the use of the goods or provision ofservices and gain almost all economic benefits from them.The Company evaluates the contract on the contract commencement date, identifies each individual performance obligationcontained in the contract, and determines whether each individual performance obligation is performed within a certain period oftime or at a certain point in time.If one of the following conditions is satisfied, the Company shall be deemed to have performed its performance obligation within acertain period of time; otherwise, it shall be deemed to have performed its performance obligation at a certain time point:
1) The customer obtains and consumes the economic benefits arising from the Company's performance at the same time of theCompany's performance.
2) The customer can control the goods under construction during the Company's performance.
3) The goods produced by the Company during the performance are of irreplaceable use, and the Company shall be entitled toreceive payment for the accumulated part of the performance completed so far during the whole contract period.For the performance obligations performed within a certain period of time, the Company shall recognize the income in accordancewith the performance progress during that period. If the performance schedule cannot be reasonably determined and the costalready incurred by the Company is expected to be compensated, the Company shall recognize the income according to the costalready incurred until the performance schedule can be reasonably determined.For performance obligations performed at a certain time point, the Company recognizes income at the time point when thecustomer acquires control of the relevant goods or services. In determining whether the customer has acquired control of goods orservices, the Company considers the following indications:
1) The Company has the current collection right for the goods or services.
2) The Company has transferred legal ownership to the goods to the customer.
3) The Company has transferred the goods in kind to the customer.
4) The Company has transferred the main risks and rewards on the property in the goods to the customer;
5) The customer has accepted the goods or services, etc.
The Company's right to receive consideration for the transfer of goods or services to the customer is listed as the contract assets,and the contract assets are depreciated on the basis of expected credit losses. The rights that the Company owns andunconditionally to collect consideration from the customer are listed as receivables. The obligations of the Company to transfergoods or services to customers for which consideration has been received or receivable are listed as contractual liabilities.Income measurement principle
1) If the contract contains two or more performance obligations, the Company shall, at the beginning of the contract, apportionthe transaction price to each individual performance obligation according to the relative proportion of the individual sellingprice of the goods or services committed by each individual performance obligation, and measure the income according tothe transaction price apportioned to each single performance obligation.
2) The transaction price means the amount of consideration that the Company is expected to be entitled to collect for the
transfer of goods or services to the customer, excluding payments collected on behalf of third parties. The transaction pricerecognized by the Company does not exceed the amount of accumulated recognized income which is highly unlikely to bematerially reversed when the relevant uncertainty is eliminated. The amount expected to be returned to the customer is notincluded in the transaction price as a liability.
3) If there is a material financing component in the contract, the Company shall determine the transaction price based on theamount payable in cash when the customer acquires control of the goods or services. The difference between the transactionprice and the contract consideration shall be amortized by the effective interest method during the contract period. On thecommencement date of the contract, if the Company expects that the interval between the customer's acquisition of controlof the goods or services and the customer's payment of the price will not exceed one year, the material financing elements inthe contract will not be considered.
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Specific methods of revenue recognition
1) Revenue recognized on time
The Company's sales of electrical products, accessories and materials belong to the performance obligation to be performed at acertain point in time.Recognition conditions of income from domestic goods: the Company has delivered the products to the customers according to thecontract, the customers have received the goods, the payment for goods has been recovered or the receipt voucher has beenobtained, and the relevant economic benefits are likely to flow into the Company, the main risks and rewards of the ownership ofthe goods have been transferred, and the legal ownership and control of the goods have been transferred.Recognition conditions of income from export goods: the Company has declared the products to leave the port according to thecontract, obtained the bill of lading, recovered the payment for goods or obtained the receipt voucher, and the relevant economicbenefits are likely to flow into the Company, the main risks and rewards of the ownership of the goods have been transferred, andthe legal ownership and control of the goods have been transferred.
2) Revenue recognized according to performance progress
The Company's technical service income and business contracts between operating leases and customers belong to theperformance obligations performed within a certain period of time, and the income shall be recognized according to theperformance progress.The situation where different business models are used for similar businesses and involve different revenue recognition methodsand measurement methods
38. Contract cost
(1) Recognition method of asset amount related to contract cost
The Company's assets related to contract cost include the contract performance cost and the contract acquisition cost.The contract performance cost, that is, the cost incurred by the Company for the performance of the contract, which is not withinthe scope of other accounting standards for business enterprises and meets the following conditions at the same time, is recognizedas an asset as the contract performance cost: such cost is directly related to a current or prospective contract, including direct labor,direct materials, manufacturing expenses (or similar expenses), costs clearly borne by the customer and other costs incurred solelyas a result of the contract; Such cost increases the resources used by the Company to fulfill its performance obligations in thefuture; And such cost is expected to be recovered.The contract acquisition cost, that is, the incremental cost incurred by the Company to acquire the contract, which is expected to berecovered, is recognized as an asset as the contract acquisition cost; If the amortization period of such asset does not exceed oneyear, it shall be recorded into the current profit and loss when it occurs. Incremental cost refers to the cost that will not occur if theCompany does not acquire the contract (such as sales commission, etc.). Other expenses incurred by the Company to acquire thecontract other than the expected recoverable incremental costs (such as travel expenses incurred regardless of whether the contractis acquired or not) shall be recorded into the current profit and loss when it occurs, except those clearly borne by the customer.
(2) Amortization of assets related to contract cost
Assets related to contract costs are amortized on the same basis as income recognition of goods related to the asset, and arerecorded into the current profit and loss when it occurs.
(3) Impairment of assets related to contract cost
When determining the impairment loss of assets related to the contract cost, the Company first determines the impairment loss ofother assets related to the contract recognized in accordance with other relevant accounting standards for business enterprises;Then, if the book value is higher than the difference between the residual consideration expected to be obtained by the Companydue to the transfer of goods related to the asset and the estimated cost to be incurred for the transfer of relevant goods, the excesspart shall be accrued for impairment provision and recognized as asset impairment loss.If the factors of impairment in the previous period change so that the difference above is higher than the book value of the asset,the Company shall reverse the withdrawn asset impairment provision and include it into the current profit and loss, but the bookvalue of the reversed asset shall not exceed the book value of such asset on the reversal date if the impairment provision is notwithdrawn.
39. Government subsidies
Government subsidies will be recognized when the conditions attached to them are met and received. The Company's governmentsubsidies include financial allocations. The asset related government subsidies refer to the government subsidies obtained by theCompany and used for acquisition or construction or for formation of long-term assets in other ways; the income relatedgovernment subsidies refer to the government subsidies other than the asset related government subsidies. The governmentsubsidies without subsidy objects specified in government documents shall be judged by the Company according to the above
2023 Full Annual Report
principle, or classified into income related government subsidies as a whole if it is difficult to judge.The government subsidies as the monetary assets are measured according to the amount received. For subsidies allocated inaccordance with fixed quota standards, or if there is evidence at the end of year that the Company can meet relevant conditionsstipulated in the financial support policy and can be expected to receive the financial support fund, the government subsidies aremeasured according to receivables. The government subsidies not as the monetary assets are measured according to the fair value,or measured according to the nominal amount (RMB 1) if the fair value cannot be obtained reliably.The government subsidies related to assets are recognized as deferred income and equally distributed and charged to the currentprofit and loss in the service life of relevant assets.If the related asset is sold, transferred, scrapped or damaged before the end of the useful life, the deferred income balance not yetdistributed is transferred in the profits and losses in the period of assets disposal.The income related government subsidies, if used to compensate for related costs or losses in subsequent periods, are recognizedas the deferred income and charged to the current profit and loss when related costs or losses are recognized. The governmentsubsidies pertinent to the daily activities of the Company shall be included in other income or used to offset relevant costs andexpenses according to the substance of the economic business. The government subsidies irrelevant with the daily activities of theCompany shall be included in non-operating revenues and expenditures.Where the Company has obtained discount interest on preferential loans, it shall distinguish between the two situations in whichthe financial department allocates discount interest funds to the lending bank and the financial department directly allocatesdiscount interest funds to the Company, and conduct accounting treatment according to the following principles:
1. Where the financial department allocates the discount interest funds to the lending bank, and the lending bank provides theloan to the Company at the preferential policy interest rate, the Company shall take the actual amount of the loan received asthe entry value of the loan, and calculate the relevant borrowing costs according to the loan principal and the preferentialpolicy interest rate.
2. Where the financial department directly allocates discount interest funds to the Company, the Company will write down thecorresponding discount interest against the relevant borrowing costs.If the government subsidy confirmed by the Company needs to be returned, the accounting treatment shall be carried out inaccordance with the following provisions in the current situation of the return:
1) The book value of related assets is adjusted if it is offset upon initial recognition.
2) For those with related deferred income, the book balance of related deferred income is written down and the excess is
accounted into the current profits and losses.
3) In the other cases, they are directly accounted into the current profits and losses.
40. Deferred income tax assets / deferred income tax liabilities
The Company's deferred income tax assets and deferred income tax liabilities are calculated and recognized according to thedifference (temporary difference) between the tax base and book value of the assets and liabilities. For the deductible loss that canbe carried forward to the subsequent year according to the tax law, the corresponding deferred income tax assets are recognized.For the deductible temporary differences related to the initial recognition of the goodwill, the corresponding deferred income taxliabilities are not recognized. For the temporary differences related to the initial recognition of the assets or liabilities incurred inthe transaction not for business combination that will not affect the accounting profits and income tax payable (or deductible loss),the corresponding deferred income tax assets and liabilities are not recognized. The deferred income tax assets and deferredincome tax liabilities are measured on the balance sheet date according to the applicable tax rate in the period of expected recoveryof relevant assets of liquidation of relevant liabilities.The Company recognizes the deferred income tax assets by deductible temporary differences, within the limit of the income taxpayable that may be obtained in the future and used to offset the deductible temporary differences, the deductible loss and taxdeduction.
41. Lease
(1) Accounting treatment method of lease as lessee
1) Lease recognition
On the beginning date of the lease term, the Company recognizes the right-of-use assets and lease liabilities. See Note IV "24.Right-of-use assets" and "31. Lease liabilities" for the recognition and measurement of right-of-use assets and lease liabilities.
2) Lease change
Lease change refers to the change of lease scope, lease consideration and lease term beyond the terms of the original contract,including adding or terminating the right to use one or more leased assets, extending or shortening the lease term specified in the
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contract, etc. The effective date of the lease change refers to the date when both parties reach an agreement on the lease change.If the lease changes and meets the following conditions, the Company will treat the lease change as a separate lease for accounting:
① the lease change expands the lease scope or extends the lease term by adding the right to use one or more leased assets; ② Theincreased consideration is equivalent to the amount of the separate price of the extended part of the lease scope or the extendedpart of the lease term as adjusted according to the conditions of the contract.If the lease change is not treated as a separate lease, on the effective date of the lease change, the Company will apportion theconsideration of the changed contract in accordance with the relevant provisions of the lease standards and re-determine the leaseterm after the change; The revised discount rate is adopted to discount the changed lease payment to re-measure the lease liabilities.When calculating the present value of the lease payment after the change, the Company adopts the interest rate implicit in leaseduring the remaining lease period as the discount rate; If the interest rate implicit in lease cannot be determined for the remaininglease period, the Company will adopt the lessee's incremental loan interest rate on the effective date of the lease change as thediscount rate. With regard to the impact of the above adjustment of lease liabilities, the Company shall distinguish the followingcircumstances for accounting treatment: ① if the lease scope is reduced or the lease term is shortened due to the lease change, thelessee shall reduce the book value of the right-of-use assets, and include the relevant gain or loss of lease under partial or completetermination into the current profit and loss. ② If the lease liabilities are re-measured due to other lease changes, the lessee shalladjust the book value of the right-of-use assets accordingly.
3) Short-term lease and low-value asset lease
The Company chooses not to recognize the right-of-use assets and lease liabilities for short-term lease with a lease term of nomore than 12 months and low-value asset lease with a lower value when the single leased asset is a brand-new asset. TheCompany will record the lease payment of short-term lease and low-value asset lease into the relevant asset cost or current profitand loss according to the straight-line method or other systematic and reasonable methods during each period of the lease term.
(2) Accounting treatment method of lease as lessor
On the basis that (1) the evaluated contract is related to lease or includes a lease, the Company, as the lessor, divides the lease intofinance lease and operating lease on the commencement date of the lease.If a lease substantially transfers almost all the risks and rewards related to the ownership of the leased assets, the lessor classifiessuch lease as a finance lease, and other leases other than finance leases as operating leases.For a lease under one or more of the following circumstances, the Company usually classifies it as a finance lease: ① when thelease term expires, the ownership of the leased asset is transferred to the lessee; ② The lessee has the option to purchase the leasedasset, and the purchase price is low enough compared with fair value of the leased asset when the option is expected to beexercised, so it can be reasonably determined that the lessee will exercise the option on the commencement date of the lease; ③Although the ownership of the asset is not transferred, the lease term accounts for most of the service life of the leased asset (noless than 75% of the service life of the leased asset); ④ On the commencement date of the lease, the present value of the leasereceipts is almost equal to fair value of the leased asset (no less than 90% of the fair value of the leased asset) ; ⑤ The property ofthe leased asset is special. If no major transformation is made, only the lessee can use it. In case of one or more of the followingsigns in a lease, the Company may also classify it as a finance lease: ① if the lessee cancels the lease, and the loss to the lessorcaused by the thereby is borne by the lessee; ② The gains or losses arising from the fluctuation of the fair value of the residualvalue of assets belong to the lessee; ③ The lessee has the ability to continue the lease for the next period at a rent far below themarket level.
1) Finance lease accounting treatment
Initial measurementOn the beginning date of the lease term, the Company recognizes the finance lease receivables for the finance lease and terminatesthe recognition of the finance lease assets. When the Company initially measures the finance lease receivables, the net amount ofthe lease investment is taken as the entry value of the finance lease receivables.The net amount of the lease investment is the sum of the unguaranteed residual value and the present value of the lease receipts notreceived on the beginning date of the lease term discounted at the interest rate implicit in lease. Lease receipts refer to the amountthat the lessor should collect from the lessee due to the assignment of the right to use the leased assets during the lease term,including: ① The fixed payment and substantial fixed payment to be paid by the lessee. In case of a lease incentive, the amountrelated to lease incentive shall be deducted; ② The amount of variable lease payments depending on the index or ratio, which isdetermined at the initial measurement according to the index or ratio on the beginning date of the lease term; ③ The exercise priceof the call option, provided that it is reasonably determined that the lessee will exercise the option; ④ The amount to be paid bythe lessee to exercise the option to terminate the lease, provided that the lease term reflects that the lessee will exercise thetermination option; ⑤ The guarantee residual value provided by the lessee, the party related to the lessee and an independent thirdparty with the financial ability to perform the guarantee obligation to the lessor.Subsequent measurement
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The Company calculates and recognizes the interest income of each period within the lease term according to the fixed periodicinterest rate. The periodic interest rate refers to the implicit discount rate used to determine the net investment of the lease (in thecase of sublease, if the interest rate implicit in lease of the sublease cannot be determined, the discount rate of the original leaseshall be adopted (adjusted according to the initial direct expenses related to the sublease)), or the change of the finance lease is notaccounted for as a separate lease, and if the change takes effect on the commencement date of the lease, the revised discount rateas determined according to relevant regulations is adopted when the lease will be classified as finance lease conditions.Accounting treatment of lease changeIf the financial lease changes and meets the following conditions, the Company will treat the change as a separate lease foraccounting: ① the change expands the lease scope by adding the right to use one or more leased assets; ② The increasedconsideration is equivalent to the amount of the separate price of the extended part of the lease scope as adjusted according to theconditions of the contract.If the change of a finance lease is not accounted for as a separate lease and meets the conditions that if the change takes effect onthe commencement date of the lease and the lease will be classified as an operating lease, the Company will account for it as a newlease from the effective date of the lease change, and take the net investment of the lease before the effective date of the leasechange as the book value of the leased asset.
2) Accounting treatment of operating lease
Treatment of rentDuring each period of the lease term, the Company adopts the straight-line method / other systematic and reasonable methods torecognize the lease receipts of operating lease as rental income.Incentives providedIf the rent-free period is provided, the Company will apportioned the total rent according to the straight-line method / otherreasonable methods in the whole lease period without deducting the rent-free period, and the rent income shall be recognizedduring the rent-free period. If the Company bears some expenses of the lessee, the expenses shall be deducted from the total rentalincome and apportioned within the lease term according to the balance of rental income after deduction.Initial direct costsThe initial direct expenses incurred by the Company in connection with the operating lease shall be capitalized to the cost of theunderlying assets of the lease and included in the current profit and loss by stages on the same recognition basis as the rentalincome during the lease term.DepreciationFor the fixed assets in the operating leased assets, the Company adopts the depreciation policy of similar assets for depreciation;Other operating leased assets are amortized in systematic and reasonable methods.Variable lease paymentsThe variable lease payments obtained by the Company related to operating lease that are not included in the lease receipts areincluded in the current profit and loss when actually incurred.Change of operating leaseIf the operating lease is changed, the Company will treat it as a new lease for accounting since the effective date of the change.The amount of advance receipts or lease receivables related to the lease before the change is regarded as the amount of new leasereceipts.
42. Other significant accounting policy and accounting estimate
When preparing the financial statements, the management of the Company is required to use estimates and assumptions, whichwill have an impact on the application of accounting policies and the amount of assets, liabilities, income and expenses. The actualsituation may differ from these estimates. The management of the Company continuously evaluates the judgment of keyassumptions and uncertainties involved in the estimates. The impact of changes in accounting estimates shall be recognized in thecurrent and future periods of the changes.The following accounting estimates and key assumptions have significant risks that will lead to major adjustments to the bookvalue of assets and liabilities in the future periods:
(1) Financial assets impairment
The expected credit loss model is adopted to evaluate the impairment of financial instruments in the financial assets impairment,which requires major judgment and estimates and requires considering all reasonable and substantiated information, includingforward-looking information. In making such judgments and estimates, the Company deduces the expected changes of the debtor'scredit risks based on historical data combined with economic policies, macroeconomic indicators, industrial risks, external market
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environment, technical environment, changes in customer conditions and other factors.
(2) Provision for inventory impairment
Basis for determining the net realizable value of inventories: the net realizable value of merchandise inventory, materials for saleand other merchandise inventories directly used for sale is recognized by the amount of the estimated sale price of the inventoriessubtracted by the estimated selling expenses and related taxes; For the inventories held to perform the sales contract or laborcontract, the net realizable value is calculated on the basis of contract price; If the number of the inventories held by the enterpriseis greater than the quantity ordered in the sales contract, the net realizable value of the excessive inventories is calculated on thebasis of general sale price.The method for inventory falling price reserves: it is priced according to the lower of the year-end inventory and the net realizablevalue. At the end of the period, on the basis of a comprehensive inventory of the inventories, the inventory falling price reservesare withdrawn for the part of its cost is expected to be non-recoverable due to the inventory damage, full or partial obsolescence orselling price below the cost.If the influence factors writing down the inventory value before have disappeared, resulting in the net realizable value of theinventories higher than the book value, the amount written down shall be restored and reversed within the originally withdrawnamount of inventory falling price reserves and the amount reversed is included in current profit and loss.
(3) Accounting estimates of provision for impairment of goodwill
The Company conducts impairment test on goodwill every year. The recoverable amount of asset group or the combination ofasset groups containing goodwill is the present value of its estimated future cash flows, which need to be calculated usingaccounting estimates.If the management revises the gross margin ratio used in the calculation of future cash flows of asset group and the combination ofasset groups, and the revised gross margin ratio is lower than the current gross margin ratio, the Company needs to withdrawimpairment provision for the increase of goodwill.If the management revises the pre-tax discount rate used for cash flow discount, and the revised gross margin ratio is higher thanthe current gross margin ratio, the Company needs to withdraw impairment provision for the increase of goodwill.If the actual gross margin ratio or pre-tax discount rate is higher or lower than the management's estimates, the Company cannotreverse the originally accrued goodwill impairment loss.
(4) Accounting estimates of impairment provisions for fixed assets
The Company conducts impairment test on fixed assets such as houses, buildings, machinery and equipment with signs ofimpairment on the balance sheet date. The recoverable amount of fixed assets is the higher of the present value of its estimatedfuture cash flows and the net value of the fair value of the assets minus the disposal expense, which need to be calculated usingaccounting estimates.If the management revises the gross margin ratio used in the calculation of future cash flows of asset group and the combination ofasset groups, and the revised gross margin ratio is lower than the current gross margin ratio, the Company needs to withdrawimpairment provision for the increase of fixed assets.If the management revises the pre-tax discount rate used for cash flow discount, and the revised gross margin ratio is higher thanthe current gross margin ratio, the Company needs to withdraw impairment provision for the increase of fixed assets.If the actual gross margin ratio or pre-tax discount rate is higher or lower than the management's estimates, the Company cannotreverse the originally accrued impairment provisions for fixed assets.
(5) Accounting estimates for deferred income tax asset recognition
The estimation of deferred income tax assets requires an estimate of the taxable income and applicable tax rate of each year in thefuture. The realization of deferred income tax assets depends on whether the Group is likely to obtain sufficient taxable income inthe future. Changes in future tax rates and the reversal time of temporary differences may also affect income tax expenses (income)and the balance of deferred income tax. Changes in the above estimates may result in significant adjustments to deferred incometax.
(6) Useful life of fixed assets and intangible assets
The Company shall review the expected service life of fixed assets and intangible assets at least at the end of each year. Theestimated service life is determined by the management based on the historical experience of similar assets, with reference to theestimates commonly used in the same industry and in combination with the expected technical updates. When there are significantchanges in previous estimates, the depreciation expenses and amortization expenses for the future period shall be adjustedaccordingly.
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43. Significant accounting policy and accounting estimate change
(1) Changes in significant accounting policies
? Applicable □ Not applicable
Unit: yuan
| Content and reasons of changes in accounting policies | Name item significantly affected | Amount affected |
On December 13, 2022, the Ministry of Finance issued the Notice onIssuance of Interpretation of Accounting Standards for BusinessEnterprises No.16 (C.K. [2022] No. 31), in which: "the deferred incometax related to assets and liabilities arising from individual transactions shallnot be applicable to the accounting treatment of initial recognitionexemption" takes effect on January 1, 2023; The contents of "accountingtreatment for the income tax impact of dividends related to financialinstruments classified by the issuer as equity instruments" and "accountingtreatment on the modification of cash-settled share-based payments toequity-settled share-based payments" come into force from the date ofpromulgation. The Company has implemented the Standard InterpretationNo.16 since January 01, 2023.
| On December 13, 2022, the Ministry of Finance issued the Notice on Issuance of Interpretation of Accounting Standards for Business Enterprises No.16 (C.K. [2022] No. 31), in which: "the deferred income tax related to assets and liabilities arising from individual transactions shall not be applicable to the accounting treatment of initial recognition exemption" takes effect on January 1, 2023; The contents of "accounting treatment for the income tax impact of dividends related to financial instruments classified by the issuer as equity instruments" and "accounting treatment on the modification of cash-settled share-based payments to equity-settled share-based payments" come into force from the date of promulgation. The Company has implemented the Standard Interpretation No.16 since January 01, 2023. | Deferred income tax assets, deferred income tax liabilities | 0 |
(2) Significant accounting estimate change
□ Applicable ? Not applicable
(3) Adjustment of relevant items in financial statements at the beginning of first implementation year asa result of first implementation of new accounting standards from 2023
□ Applicable ? Not applicable
44. Other
VI. Tax
1. Main tax categories and tax rates
| Tax category | Taxation basis | Tax rate |
Added value tax
| Added value tax | Income from selling commodities, technical service income, and income from house lease | 13%, 16%, 15% |
Urban maintenance and construction tax
| Urban maintenance and construction tax | Turnover tax payable | 7% |
Corporate income tax
| Corporate income tax | Income tax payable | 15%, 25%, 20% |
Education surcharge
| Education surcharge | Turnover tax payable | 3% |
Surcharge for local education
| Surcharge for local education | Turnover tax payable | 2% |
Housing property tax
| Housing property tax | 70% of original value of the property, rental income | 1.2%, 12% |
Land use tax
| Land use tax | Total land area | 5-10 yuan/m2 |
If there are taxpayers with different enterprise income tax rates, the disclosure statement shall present
| Name of taxpayer | Income tax rate |
Hangzhou ROBAM Appliances Co., Ltd.
| Hangzhou ROBAM Appliances Co., Ltd. | 15% |
Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd.
| Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. | 15% |
Zhejiang Cooking Future Technology Co., Ltd.
| Zhejiang Cooking Future Technology Co., Ltd. | 15% |
Beijing ROBAM Electric Appliance Sales Co., Ltd.
| Beijing ROBAM Electric Appliance Sales Co., Ltd. | 25% |
Shanghai ROBAM Electric Appliance Sales Co., Ltd.
| Shanghai ROBAM Electric Appliance Sales Co., Ltd. | 25% |
Hangzhou Mingqi Electric Co., Ltd.
| Hangzhou Mingqi Electric Co., Ltd. | 25% |
Dize Home Appliances Trading (Shanghai) Co., Ltd.
| Dize Home Appliances Trading (Shanghai) Co., Ltd. | 25% |
Hangzhou ROBAM Fuchuang Investment Management Co., Ltd.
| Hangzhou ROBAM Fuchuang Investment Management Co., Ltd. | 20% |
Hangzhou Jinhe Electric Appliances Co., Ltd
| Hangzhou Jinhe Electric Appliances Co., Ltd | 25% |
2023 Full Annual Report
| ROBAM Appliances (Hong Kong) Holdings Limited*1 | Two-tier tax system |
ROBAM International (Hong Kong) Trading Co., Ltd. *1
| ROBAM International (Hong Kong) Trading Co., Ltd. *1 | Two-tier tax system |
*1: ROBAM Appliances (Hong Kong) Holdings Limited and ROBAM International (Hong Kong) Trading Co.,Ltd., the subsidiaries of the Company, are subject to the profit tax policy in Hong Kong, China, and are subjectto a two-tier system of profit tax. That is, the taxable profits not exceeding HKD 2,000,000 are subject to aprofit tax rate of 8.25%, and the portion of taxable profits exceeding HKD 2,000,000 is subject to a profit taxrate of 16.50%.
2. Tax preference
Preferential policies for income taxOn December 08, 2023, the Science Technology Department of Zhejiang Province, Zhejiang Provincial Department of Finance,Zhejiang Provincial Tax Service of State Taxation Administration and Zhejiang Taxation Bureau jointly issued a high-techenterprise certificate (No. GR202333003384) and the Company passed the high-tech enterprise identification for 3 years.According to relevant regulations, after passing the high-tech enterprise identification, the Company can enjoy the relevantpreferential policies of the state on high-tech enterprises for three consecutive years (i.e., the income tax preference period fromJanuary 01, 2023 to December 31, 2025), and the enterprise income tax shall be levied at the rate of 15%.Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. (hereinafter referred to as Shengzhou Kinde), a subsidiary of the Company,obtained the high-tech enterprise certificate (No. GR202233010421) jointly issued by the Science Technology Department ofZhejiang Province, Zhejiang Provincial Department of Finance and Zhejiang Provincial Tax Service of State TaxationAdministration on December 24, 2022 and passed the high-tech enterprise identification. The Company can enjoy the relevantpreferential policies of the state on high-tech enterprises for three consecutive years (i.e., the income tax preference period fromJanuary 1, 2022 to December 31, 2024), and the enterprise income tax shall be levied at the rate of 15%.Hangzhou ROBAM Fuchuang Investment Management Co., Ltd., a subsidiary of the Company, reduced the taxable income ofsmall and micro enterprises by 25% according to the Announcement on Tax Policies for Further Supporting the Development ofSmall and Micro Enterprises and Individual Business Owners (Announcement [2023] No.12) issued by of the Ministry of Financeand the State Administration of Taxation, and continued to pay corporate income tax at a rate of 20% until December 31, 2027.Preferential policies for added-value taxAccording to the Notice of the Ministry of Finance and the State Administration of Taxation on VAT Policies for SoftwareProducts (C.S. [2011] No. 100), the Company's embedded software sales products enjoy the value-added tax refunded as soon as
they are collected.According to the Announcement on VAT Credit Policy for Advanced Manufacturing Enterprises (Announcement [2023] No.43)issued by of the Ministry of Finance and the State Administration of Taxation, from January 1, 2023 to December 31, 2027, theCompany will be entitled to an additional credit policy for advanced manufacturing enterprises to offset the VAT payable byadding 5% to the deductible input tax in the current period.
3. Other
VII. Notes to Items in Consolidated Financial Statements
1. Monetary capital
Unit: yuan
| Item | Ending balance | Beginning balance |
Cash on hand
| Cash on hand | 62,267.64 | 85,806.05 |
Bank deposit
| Bank deposit | 1,877,703,911.46 | 5,194,887,841.18 |
Other monetary capital
| Other monetary capital | 107,284,566.01 | 97,789,023.71 |
Total
| Total | 1,985,050,745.11 | 5,292,762,670.94 |
Including: Total amount depositedabroad
| Including: Total amount deposited abroad | 3,588,900.00 |
Other description:
Note: Other monetary capital is RMB 107,284,566.01, of which the L/C deposit of RMB 83,153,343.90, bill acceptance deposit ofRMB 23,717,043.12 and ETC deposit of RMB 14,000.00 are limited funds, Alipay balance and Wechat balance of RMB400,178.99 are non-limited funds that can be withdrawn at any time.Use of restricted monetary funds
2023 Full Annual Report
| Item | Year-end balance | Year-beginning balance |
Guarantee deposit
| Guarantee deposit | 83,153,343.90 | 76,092,305.89 |
Bill deposit
| Bill deposit | 23,717,043.12 | 20,243,023.31 |
ETC deposit
| ETC deposit | 14,000.00 | 13,000.00 |
Total
| Total | 106,884,387.02 | 96,348,329.20 |
2. Trading financial assets
Unit: yuan
| Item | Ending balance | Beginning balance |
Financial assets measured with fair valueand with the changes included in currentprofit and loss
| Financial assets measured with fair value and with the changes included in current profit and loss | 2,730,000,000.00 | 2,511,844,508.00 |
Where:
| Where: |
Financial products
| Financial products | 2,730,000,000.00 | 2,511,844,508.00 |
Where:
| Where: |
Total
| Total | 2,730,000,000.00 | 2,511,844,508.00 |
3. Notes receivable
(1) Classified presentation of notes receivable
Unit: yuan
| Item | Ending balance | Beginning balance |
Bank acceptance bill
| Bank acceptance bill | 690,184,154.22 | 609,791,571.72 |
Trade acceptance
| Trade acceptance | 6,100,777.42 | 271,981,769.99 |
Total
| Total | 696,284,931.64 | 881,773,341.71 |
(2) Classified disclosure by bad debt provision method
Unit: yuan
| Category | Ending balance | Beginning balance | ||||||||
| Book balance | Provision for bad debt | Book value | Book balance | Provision for bad debt | Book value | |||||
| Amount | Proportion | Amount | Accruing proportion | Amount | Proportion | Amount | Accruing proportion | |||
Notes receivable ofprovision for baddebt by single item
| Notes receivable of provision for bad debt by single item | 12,553,205.80 | 1.39% | 6,659,943.22 | 53.05% | 5,893,262.58 |
Where:
| Where: |
Notes receivable ofprovision for baddebt bycombination
| Notes receivable of provision for bad debt by combination | 696,606,025.20 | 100.00% | 321,093.56 | 0.05% | 696,284,931.64 | 889,884,737.69 | 98.61% | 14,004,658.56 | 1.57% | 875,880,079.13 |
Where:
| Where: |
Bank acceptancebill
| Bank acceptance bill | 690,184,154.22 | 99.08% | 690,184,154.22 | 609,791,571.72 | 67.57% | 609,791,571.72 |
Trade acceptance
| Trade acceptance | 6,421,870.98 | 0.92% | 321,093.56 | 5.00% | 6,100,777.42 | 280,093,165.97 | 31.04% | 14,004,658.56 | 5.00% | 266,088,507.41 |
Total
| Total | 696,606,025.20 | 100.00% | 321,093.56 | 0.05% | 696,284,931.64 | 902,437,943.49 | 100.00% | 20,664,601.78 | 2.29% | 881,773,341.71 |
Provision for bad debt by single item: Notes receivable are provided for bad debts by single item
2023 Full Annual Report
Unit: yuan
| Name | Beginning balance | Ending balance | ||||
| Book balance | Provision for bad debt | Book balance | Provision for bad debt | Accruing proportion | Reasons for provision | |
Unit 1
| Unit 1 | 9,336,504.18 | 4,668,252.09 |
Unit 2
| Unit 2 | 1,300,000.00 | 650,000.00 |
Unit 3
| Unit 3 | 1,042,901.00 | 730,030.70 |
Unit 4
| Unit 4 | 750,731.20 | 525,511.84 |
Unit 5
| Unit 5 | 123,069.42 | 86,148.59 |
Total
| Total | 12,553,205.80 | 6,659,943.22 |
Provision for bad debt by combination: Notes receivable are provided for bad debts by combination
Unit: yuan
| Name | Ending balance | ||
| Book balance | Provision for bad debt | Accruing proportion | |
Banker's acceptance billcombination
| Banker's acceptance bill combination | 690,184,154.22 |
Commercial acceptance billcombination
| Commercial acceptance bill combination | 6,421,870.98 | 321,093.56 | 5.00% |
Total
| Total | 696,606,025.20 | 321,093.56 |
Description of the basis for determining the combination:
If the bad debt provision of notes receivable is withdrawn according to the general model of expected credit loss:
□ Applicable ? Not applicable
(3) Provision, recovery or reversal of bad debt reserves in the current periodProvision for bad debts in current period:
Unit: yuan
| Category | Beginning balance | Changes in amount in current period | Ending balance | |||
| Provision | Recovered or reversed | Canceled after verification | Other | |||
Commercialacceptance bill
| Commercial acceptance bill | 20,664,601.78 | -20,343,508.22 | 321,093.56 |
Total
| Total | 20,664,601.78 | -20,343,508.22 | 321,093.56 |
Where the amount of bad debt provision recovered or transferred back is important:
□ Applicable ? Not applicable
4. Accounts receivable
(1) Disclosure by aging
Unit: yuan
| Aging | Ending book balance | Beginning book balance |
Within 1 year (including 1 year)
| Within 1 year (including 1 year) | 1,557,020,494.66 | 1,414,611,796.19 |
1 to 2 years
| 1 to 2 years | 541,557,234.61 | 1,310,592,988.91 |
2 to 3 years
| 2 to 3 years | 886,738,162.41 | 52,140,042.25 |
More than 3 years
| More than 3 years | 48,881,334.70 | 15,604,054.43 |
3 to 4 years
| 3 to 4 years | 35,197,495.87 | 8,167,899.77 |
4 to 5 years
| 4 to 5 years | 6,690,817.20 | 5,260,654.01 |
More than 5 years
| More than 5 years | 6,993,021.63 | 2,175,500.65 |
Total
| Total | 3,034,197,226.38 | 2,792,948,881.78 |
2023 Full Annual Report
(2) Classified disclosure by bad debt provision method
Unit: yuan
| Category | Ending balance | Beginning balance | ||||||||
| Book balance | Provision for bad debt | Book value | Book balance | Provision for bad debt | Book value | |||||
| Amount | Proportion | Amount | Accruing proportion | Amount | Proportion | Amount | Accruing proportion | |||
Accountsreceivable ofprovision for baddebt by single item
| Accounts receivable of provision for bad debt by single item | 1,645,394,906.63 | 54.23% | 1,131,734,880.57 | 68.78% | 513,660,026.06 | 1,639,679,315.79 | 58.71% | 1,030,780,696.17 | 62.86% | 608,898,619.62 |
Where:
| Where: |
Accountsreceivable ofprovision for baddebt bycombination
| Accounts receivable of provision for bad debt by combination | 1,388,802,319.75 | 45.77% | 92,446,749.48 | 6.66% | 1,296,355,570.27 | 1,153,269,565.99 | 41.29% | 72,561,356.67 | 6.29% | 1,080,708,209.32 |
Where:
| Where: |
Aging combination
| Aging combination | 1,388,802,319.75 | 45.77% | 92,446,749.48 | 6.66% | 1,296,355,570.27 | 1,153,269,565.99 | 41.29% | 72,561,356.67 | 6.29% | 1,080,708,209.32 |
Total
| Total | 3,034,197,226.38 | 100.00% | 1,224,181,630.05 | 40.35% | 1,810,015,596.33 | 2,792,948,881.78 | 100.00% | 1,103,342,052.84 | 39.50% | 1,689,606,828.94 |
Provision for bad debt by single item: Accounts receivable are provided for bad debts by single item
Unit: yuan
| Name | Beginning balance | Ending balance | ||||
| Book balance | Provision for bad debt | Book balance | Provision for bad debt | Accruing proportion | Reasons for provision | |
Unit 1
| Unit 1 | 657,344,204.78 | 657,344,204.78 | 660,039,726.23 | 660,039,726.23 | 100.00% | Expected to be difficult to recover |
Unit 2
| Unit 2 | 607,891,265.65 | 182,367,379.68 | 388,093,418.16 | 116,428,025.44 | 30.00% | Expected to be difficult to fully recover |
Unit 3
| Unit 3 | 201,626,455.66 | 86,259,958.01 | 42.78% | Expected to be difficult to fully recover |
Unit 4
| Unit 4 | 112,811,043.19 | 42,342,003.78 | 103,644,563.87 | 62,549,255.29 | 60.35% | Expected to be difficult to fully recover |
Unit 5
| Unit 5 | 80,690,330.78 | 56,483,231.55 | 78,105,963.23 | 78,105,963.23 | 100.00% | Expected to be difficult to recover |
Unit 6
| Unit 6 | 26,306,236.78 | 5,261,247.36 | 29,833,027.36 | 20,883,119.15 | 70.00% | Expected to be difficult to fully recover |
Unit 7
| Unit 7 | 20,263,294.09 | 5,751,727.45 | 28,796,628.81 | 12,808,177.77 | 44.48% | Expected to be difficult to fully recover |
Unit 8
| Unit 8 | 27,754,259.57 | 18,956,340.20 | 25,826,189.64 | 17,748,183.70 | 68.72% | Expected to be difficult to fully recover |
Unit 9
| Unit 9 | 21,370,090.54 | 14,959,063.38 | 22,983,529.61 | 15,004,193.26 | 65.28% | Expected to be difficult to fully recover |
Unit 10
| Unit 10 | 15,100,611.29 | 8,471,506.90 | 56.10% | Expected to be difficult to fully recover |
Unit 11
| Unit 11 | 14,139,851.56 | 8,965,986.59 | 13,643,117.43 | 7,265,607.25 | 53.25% | Expected to be difficult to fully recover |
Unit 12
| Unit 12 | 16,210,905.78 | 11,325,134.05 | 11,403,482.66 | 6,897,017.86 | 60.48% | Expected to be difficult to fully recover |
Unit 13
| Unit 13 | 10,185,685.90 | 2,157,682.25 | 9,391,156.30 | 4,698,425.06 | 50.03% | Expected to be difficult to fully recover |
Unit 14
| Unit 14 | 8,009,318.82 | 2,345,903.11 | 8,175,007.62 | 3,440,071.29 | 42.08% | Expected to be difficult to fully recover |
2023 Full Annual Report
| Name | Beginning balance | Ending balance | ||||
| Book balance | Provision for bad debt | Book balance | Provision for bad debt | Accruing proportion | Reasons for provision | |
Unit 15
| Unit 15 | 9,475,265.17 | 6,632,685.62 | 7,305,800.75 | 5,114,060.53 | 70.00% | Expected to be difficult to fully recover |
Unit 16
| Unit 16 | 4,025,730.93 | 2,818,011.65 | 3,921,670.93 | 2,745,169.65 | 70.00% | Expected to be difficult to fully recover |
Unit 17
| Unit 17 | 3,616,362.19 | 2,531,453.53 | 70.00% | Expected to be difficult to fully recover |
Unit 18
| Unit 18 | 3,317,253.79 | 1,554,840.55 | 46.87% | Expected to be difficult to fully recover |
Unit 19
| Unit 19 | 3,310,609.08 | 1,715,551.82 | 51.82% | Expected to be difficult to fully recover |
Unit 20
| Unit 20 | 3,056,422.32 | 1,145,907.85 | 37.49% | Expected to be difficult to fully recover |
Unit 21
| Unit 21 | 23,201,832.25 | 13,070,094.72 | 24,203,909.70 | 16,328,666.20 | 67.46% | Expected to be difficult to fully recover |
Total
| Total | 1,639,679,315.79 | 1,030,780,696.17 | 1,645,394,906.63 | 1,131,734,880.57 |
Provision for bad debt by combination: accounts receivable of provision for bad debt by expected credit loss combination based onaging features
Unit: yuan
| Name | Ending balance | ||
| Book balance | Provision for bad debt | Accruing proportion | |
Within 1 year
| Within 1 year | 1,194,156,033.42 | 59,707,801.66 | 5.00% |
1~2 years
| 1~2 years | 134,766,796.33 | 13,476,679.63 | 10.00% |
2~3 years
| 2~3 years | 43,529,531.79 | 8,705,906.36 | 20.00% |
3~4 years
| 3~4 years | 10,346,739.51 | 5,173,369.76 | 50.00% |
4~5 years
| 4~5 years | 3,101,133.17 | 2,480,906.54 | 80.00% |
More than 5 years
| More than 5 years | 2,902,085.53 | 2,902,085.53 | 100.00% |
Total
| Total | 1,388,802,319.75 | 92,446,749.48 |
Description of the basis for determining the combination:
If the bad debt provision of accounts receivable is withdrawn according to the general model of expected credit loss:
□ Applicable ? Not applicable
(3) Provision, recovery or reversal of bad debt reserves in the current period
Provision for bad debts in current period:
Unit: yuan
| Category | Beginning balance | Changes in amount in current period | Ending balance | |||
| Provision | Recovered or reversed | Canceled after verification | Other | |||
Provision forbad debt ofaccountsreceivable
| Provision for bad debt of accounts receivable | 1,103,342,052.84 | 220,247,079.47 | 98,986,397.46 | 421,104.80 | 1,224,181,630.05 |
Total
| Total | 1,103,342,052.84 | 220,247,079.47 | 98,986,397.46 | 421,104.80 | 1,224,181,630.05 |
2023 Full Annual Report
Where the amount of bad debt provision recovered or transferred back is important:
Unit: yuan
| Unit name | Recovered or reversed amount | Reason for reversal | Recovery mode | The basis and rationality for determining the proportion of the original bad debt provision |
Unit 1
| Unit 1 | 221,825,902.65 | Bank transfer, deduction of fees |
Unit 2
| Unit 2 | 15,782,678.82 | Bank transfer, house mortgage |
Unit 3
| Unit 3 | 7,084,588.48 | Bank transfer, house mortgage |
Unit 4
| Unit 4 | 6,187,078.87 | Bank transfer, house mortgage |
Unit 5
| Unit 5 | 6,076,928.75 | Bank transfer, house mortgage |
Unit 6
| Unit 6 | 3,888,813.74 | Bank transfer, house mortgage |
Unit 7
| Unit 7 | 3,883,348.75 | Bank transfer, house mortgage |
Unit 8
| Unit 8 | 2,483,437.46 | Bank transfer, house mortgage |
Unit 9
| Unit 9 | 1,849,551.00 | Bank transfer, house mortgage |
Unit 10
| Unit 10 | 1,773,645.05 | Bank transfer, house mortgage |
Unit 11
| Unit 11 | 1,392,336.16 | Bank transfer, house mortgage |
Unit 12
| Unit 12 | 891,142.34 | Bank transfer, house mortgage |
Unit 13
| Unit 13 | 848,351.74 | Bank transfer, house mortgage |
Unit 14
| Unit 14 | 1,709,927.91 | Bank transfer, house mortgage |
Total
| Total | 275,677,731.72 |
(4) Accounts receivable actually written off at the current period
Unit: yuan
| Item | Write-off amount |
Accounts receivable written off actually
| Accounts receivable written off actually | 421,104.80 |
Write-off of important accounts receivable:
Unit: yuan
| Name of creditor | Nature of accounts receivable | Write-off amount | Cause for write-off | Write-off procedures | Arising from related transactions |
| Unit 1 | payment for goods | 115,502.00 | Expected irrecoverable | Approval by management | No |
| Unit 2 | payment for goods | 92,977.60 | Expected irrecoverable | Approval by management | No |
| Unit 3 | payment for goods | 87,416.37 | Expected irrecoverable | Approval by management | No |
| Unit 4 | payment for goods | 41,159.00 | Expected irrecoverable | Approval by management | No |
2023 Full Annual Report
| Unit 5 | payment for goods | 27,800.00 | Expected irrecoverable | Approval by management | No |
| Subtotal of other accounts receivable | payment for goods | 56,249.83 | Expected irrecoverable | Approval by management | No |
| Total | -- | 421,104.80 | -- | -- | -- |
(5) Account receivable and contract assets with top 5 ending balances by debtor
Unit: yuan
| Unit name | Ending balance of accounts receivable | Ending balance of contract assets | Ending balance of accounts receivable and contract assets | Proportion in total ending balance of accounts receivable and contract assets | Ending balance of bad debt provision of accounts receivable and impairment provisions of contract assets |
Unit 1
| Unit 1 | 452,376,997.98 | 452,376,997.98 | 14.91% | 452,376,997.98 |
Unit 2
| Unit 2 | 388,093,418.16 | 388,093,418.16 | 12.79% | 116,428,025.45 |
Unit 3
| Unit 3 | 193,644,110.23 | 193,644,110.23 | 6.38% | 9,682,205.51 |
Unit 4
| Unit 4 | 171,043,456.25 | 171,043,456.25 | 5.64% | 8,552,172.81 |
Unit 5
| Unit 5 | 140,791,195.62 | 140,791,195.62 | 4.64% | 72,571,251.10 |
Total
| Total | 1,345,949,178.24 | 1,345,949,178.24 | 44.36% | 659,610,652.85 |
5. Other receivables
Unit: yuan
| Item | Ending balance | Beginning balance |
Other receivables
| Other receivables | 53,368,667.34 | 80,429,057.84 |
Total
| Total | 53,368,667.34 | 80,429,057.84 |
1) Other receivables classified by nature
Unit: yuan
| Nature of payment | Ending book balance | Beginning book balance |
Deposit and margin
| Deposit and margin | 35,077,788.86 | 38,184,552.92 |
Collection by third party
| Collection by third party | 26,915,796.30 | 50,695,825.81 |
Withheld amount
| Withheld amount | 4,274,188.53 | 4,898,268.76 |
Imprest
| Imprest | 2,365,967.91 | 2,601,040.33 |
Project mortgage property
| Project mortgage property | 2,094,110.00 |
Other
| Other | 330,098.34 | 519,033.02 |
Total
| Total | 71,057,949.94 | 96,898,720.84 |
2) Disclosure by aging
Unit: yuan
| Aging | Ending book balance | Beginning book balance |
Within 1 year (including 1 year)
| Within 1 year (including 1 year) | 42,909,446.18 | 70,253,063.08 |
1 to 2 years
| 1 to 2 years | 6,665,944.46 | 9,080,735.82 |
2 to 3 years
| 2 to 3 years | 6,322,210.28 | 4,279,573.74 |
More than 3 years
| More than 3 years | 15,160,349.02 | 13,285,348.20 |
3 to 4 years
| 3 to 4 years | 3,591,477.42 | 2,965,976.80 |
4 to 5 years
| 4 to 5 years | 2,146,271.80 | 3,046,691.50 |
More than 5 years
| More than 5 years | 9,422,599.80 | 7,272,679.90 |
Total
| Total | 71,057,949.94 | 96,898,720.84 |
3) Classified disclosure by bad debt provision plan
| Category | Ending balance | Beginning balance | ||||||||
| Book balance | Provision | Book value | Book balance | Provision for | Book value | |||||
2023 Full Annual Report
| for bad debt | bad debt |
Amount
| Amount | Proportion | Amount | Accruing proportion | Amount | Proportion | Amount | Accruing proportion |
Provision for baddebt by single item
| Provision for bad debt by single item | 2,362,320.00 | 3.32% | 945,141.50 | 40.01% | 1,417,178.50 |
Where:
| Where: |
Provision for baddebt by combination
| Provision for bad debt by combination | 68,695,629.94 | 96.68% | 16,744,141.10 | 24.37% | 51,951,488.84 | 96,898,720.84 | 100.00% | 16,469,663.00 | 17.00% | 80,429,057.84 |
Where:
| Where: |
Aging combination
| Aging combination | 68,695,629.94 | 96.68% | 16,744,141.10 | 24.37% | 51,951,488.84 | 96,898,720.84 | 100.00% | 16,469,663.00 | 17.00% | 80,429,057.84 |
Total
| Total | 71,057,949.94 | 100.00% | 17,689,282.60 | 24.89% | 53,368,667.34 | 96,898,720.84 | 100.00% | 16,469,663.00 | 17.00% | 80,429,057.84 |
4) Other receivables of which bad debt provision are made in accordance with the general model of
expected credit loss
| Provision for bad debt | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit losses over the next 12 months | Expected credit losses over the entire duration (without credit impairment) | Expected credit losses over the entire duration (with credit impairment) |
Balance on January 1, 2023
| Balance on January 1, 2023 | 16,469,663.00 | 16,469,663.00 |
Balance on January 1, 2023 incurrent period
| Balance on January 1, 2023 in current period |
-- Transferred to stage 2
| -- Transferred to stage 2 |
-- Transferred to stage 3
| -- Transferred to stage 3 |
-- Reserved to stage 2
| -- Reserved to stage 2 |
-- Reserved to stage 1
| -- Reserved to stage 1 |
Withdrawn in current period
| Withdrawn in current period | 274,478.10 | 756,941.50 | 188,200.00 | 1,219,619.60 |
Reversal in current period
| Reversal in current period |
Writing-off in current period
| Writing-off in current period |
Canceled after verification incurrent period
| Canceled after verification in current period |
Other alterations
| Other alterations |
Balance on December 31, 2023
| Balance on December 31, 2023 | 16,744,141.10 | 756,941.50 | 188,200.00 | 17,689,282.60 |
5) Provision, recovery or reversal of bad debt reserves in the current period
Provision for bad debts in current period:
Unit: yuan
| Category | Beginning balance | Changes in amount in current period | Ending balance | |||
| Provision | Recovered or reversed | Write-off or verification | Other | |||
Provision for baddebt of otherreceivables
| Provision for bad debt of other receivables | 16,469,663.00 | 1,219,619.60 | 17,689,282.60 |
Total
| Total | 16,469,663.00 | 1,219,619.60 | 17,689,282.60 |
2023 Full Annual Report
6) Other receivables with top 5 ending balances by debtor
Unit: yuan
| Unit name | Nature of payment | Ending balance | Aging | Proportion in total other ending balance receivable | Ending balance of bad debt provision |
Unit 1
| Unit 1 | Third party Collections | 16,946,133.99 | Within 1 year | 23.85% | 847,306.70 |
Unit 2
| Unit 2 | Deposit | 4,928,000.00 | More than 5 years | 6.94% | 4,928,000.00 |
Unit 3
| Unit 3 | Withheld amount | 3,442,166.31 | Within 1 year | 4.84% | 172,108.32 |
Unit 4
| Unit 4 | Third party Collections | 2,228,080.41 | Within 1 year | 3.14% | 111,404.02 |
Unit 5
| Unit 5 | Third party Collections/cash deposit | 1,899,454.80 | 0~2 years | 2.67% | 100,572.74 |
Total
| Total | 29,443,835.51 | 41.44% | 6,159,391.78 |
6. Advances to suppliers
(1) Presentation of advances to suppliers by aging
Unit: yuan
| Aging | Ending balance | Beginning balance | ||
| Amount | Proportion | Amount | Proportion | |
| Within 1 year | 136,637,538.73 | 97.80% | 176,828,710.59 | 99.62% |
| 1 to 2 years | 3,055,581.83 | 2.19% | 331,685.80 | 0.19% |
| 2 to 3 years | 15,823.01 | 0.01% | 309,887.50 | 0.17% |
| More than 3 years | 4,528.01 | 30,069.48 | 0.02% | |
| Total | 139,713,471.58 | 177,500,353.37 | ||
(2) Advances to suppliers with top 5 ending balances by prepayment object
The total amount of advances to suppliers with top 5 ending balances by prepayment object in the current year was RMB73,292,748.68, accounting for 52.46% of total number of ending balance of advances to suppliers.
7. Inventory
Does the Company need to follow the disclosure requirements of real estate industryNo
(1) Inventory classification
Unit: yuan
| Item | Ending balance | Beginning balance | ||||
| Book balance | Inventory falling price reserves or provision for impairment of contract | Book value | Book balance | Inventory falling price reserves or provision for impairment of contract | Book value | |
2023 Full Annual Report
| performance costs | performance costs |
Raw materials
| Raw materials | 81,308,915.01 | 81,308,915.01 | 124,228,344.80 | 124,228,344.80 |
Work in process
| Work in process | 98,820,705.86 | 98,820,705.86 | 110,725,274.36 | 110,725,274.36 |
Merchandiseinventory
| Merchandise inventory | 434,195,084.18 | 33,339,505.13 | 400,855,579.05 | 433,960,199.87 | 38,422,564.56 | 395,537,635.31 |
Contractperformance cost
| Contract performance cost | 35,371,916.75 | 35,371,916.75 | 44,135,708.88 | 44,135,708.88 |
Semi-finishedproducts shippedin transit
| Semi-finished products shipped in transit | 891,904,804.32 | 30,351,019.85 | 861,553,784.47 | 946,934,786.68 | 34,166,612.43 | 912,768,174.25 |
Low priced andeasily wornarticles andwrappage
| Low priced and easily worn articles and wrappage | 46,363,819.10 | 46,363,819.10 | 22,715,660.50 | 22,715,660.50 |
Total
| Total | 1,587,965,245.22 | 63,690,524.98 | 1,524,274,720.24 | 1,682,699,975.09 | 72,589,176.99 | 1,610,110,798.10 |
(2) Inventory falling price reserves and provision for impairment of contract performance costs
Unit: yuan
| Item | Beginning balance | Amount increased in current period | Amount decreased in current period | Ending balance | ||
| Provision | Other | Reversed or written off | Other | |||
Merchandiseinventory
| Merchandise inventory | 38,422,564.56 | 585,473.49 | 5,668,532.92 | 33,339,505.13 |
Semi-finishedproducts shippedin transit
| Semi-finished products shipped in transit | 34,166,612.43 | 5,351,784.20 | 9,167,376.78 | 30,351,019.85 |
Total
| Total | 72,589,176.99 | 5,937,257.69 | 14,835,909.70 | 63,690,524.98 |
(3) Other debt investment due within one year
8. Other current assets
Unit: yuan
| Item | Ending balance | Beginning balance |
Time deposit within one year
| Time deposit within one year | 2,563,744,300.00 |
Accrued interest on time deposits
| Accrued interest on time deposits | 81,146,657.65 |
Prepaid tax
| Prepaid tax | 2,917,663.05 | 1,334.25 |
Pending deduct VAT on purchase
| Pending deduct VAT on purchase | 333,014.51 |
Total
| Total | 2,647,808,620.70 | 334,348.76 |
9. Other equity instrument investments
Unit: yuan
| Item name | Ending balance | Beginning balance | Gains included in other comprehensive income in current period | Losses included in other comprehensive income in current period | Gains accumulated in other comprehensive income at the end of current period | Losses accumulated in other comprehensive income at the end of current period | Dividend income recognized in current period | Cause for designation to measure at fair value of which changes are recorded into other comprehensive income |
SuzhouIndustrialPark RuicanInvestment
| Suzhou Industrial Park Ruican Investment | 100,000,000.00 |
2023 Full Annual Report
Enterprise(limitedpartnership)ShanghaiMXCHIPInformationTechnologyCo., Ltd.
| Shanghai MXCHIP Information Technology Co., Ltd. | 2,116,023.22 | 2,116,023.22 | 17,832,510.78 |
Total
| Total | 2,116,023.22 | 2,116,023.22 | 117,832,510.78 |
10. Long-term equity investment
Unit: yuan
| Invested unit | Beginning balance (book value) | Beginning balance of impairment provision | Increase or decrease in current period | Ending balance (book value) | Balance of impairment provision at the end of period | |||||||
| Further investment | Capital reduction | Investment gains and losses recognized by the equity method | Adjustment of other comprehensive income | Changes in other equity | Declared payment of cash dividends or profits | Provision for impairment | Other | |||||
I. Cooperative enterprise
I. Cooperative enterpriseDe DietrichTrade(Shanghai) Co.,Ltd.
| De Dietrich Trade (Shanghai) Co., Ltd. | 3,824,460.03 | 497,269.36 | 4,321,729.39 |
Subtotal
| Subtotal | 3,824,460.03 | 497,269.36 | 4,321,729.39 |
II. Joint venture
II. Joint ventureZhejiangTingshuo BrandOperationManagementCo., Ltd.
| Zhejiang Tingshuo Brand Operation Management Co., Ltd. | 1,065,993.31 | -426,050.67 | 639,942.64 |
ShaoxingShuaige Kitchenand BathroomTechnology Co.,Ltd.
| Shaoxing Shuaige Kitchen and Bathroom Technology Co., Ltd. | 3,828,052.28 | -362,274.07 | 3,465,778.21 |
Subtotal
| Subtotal | 4,894,045.59 | -788,324.74 | 4,105,720.85 |
Total
| Total | 8,718,505.62 | -291,055.38 | 8,427,450.24 |
The recoverable amount is determined by the net of fair value less disposal costs
□ Applicable ? Not applicable
The recoverable amount is determined by the present value of expected future cash flow.
□ Applicable ? Not applicable
Reasons for significant discrepancies between the above information and the information used for impairment tests in previousyears or external informationReasons for significant discrepancies between the information used for Company's impairment tests in the previous years and theactual situation in current year
11. Other non-current financial assets
Unit: yuan
| Item | Ending balance | Beginning balance |
Financial assets measured with fair value
| Financial assets measured with fair value | 480,000,000.00 |
2023 Full Annual Report
and with the changes included in currentprofit and lossTotal
| Total | 480,000,000.00 |
12. Investment properties
(1) Investment properties using cost measurement mode
? Applicable □ Not applicable
Unit: yuan
| Item | Houses and buildings | Land use right | Construction in progress | Total |
I. Original book value
| I. Original book value |
1. Beginning balance
| 1. Beginning balance | 61,641,757.01 | 1,062,744.00 | 62,704,501.01 |
2. Amount increased in
current period
| 2. Amount increased in current period | 41,510,951.28 | 41,510,951.28 |
(1) Purchased
| (1) Purchased |
(2) Transfer from
inventory/fixedassets/construction inprogress
| (2) Transfer from inventory/fixed assets/construction in progress | 41,510,951.28 | 41,510,951.28 |
(3) Increase by business
combination
| (3) Increase by business combination |
3. Amount decreased in
current period
| 3. Amount decreased in current period |
(1) Disposal
| (1) Disposal |
(2) Other transfer-out
| (2) Other transfer-out |
4. Ending balance
| 4. Ending balance | 103,152,708.29 | 1,062,744.00 | 104,215,452.29 |
II. Accumulateddepreciation andamortization
| II. Accumulated depreciation and amortization |
1. Beginning balance
| 1. Beginning balance | 6,480,766.87 | 336,535.60 | 6,817,302.47 |
2. Amount increased in
current period
| 2. Amount increased in current period | 6,245,376.35 | 15,941.16 | 6,261,317.51 |
(1) Accrual or
amortization
| (1) Accrual or amortization | 4,791,280.96 | 15,941.16 | 4,807,222.12 |
(2) Other transfer-in
| (2) Other transfer-in | 1,454,095.39 | 1,454,095.39 |
3. Amount decreased in
current period
| 3. Amount decreased in current period |
(1) Disposal
| (1) Disposal |
(2) Other transfer-out
| (2) Other transfer-out |
4. Ending balance
| 4. Ending balance | 12,726,143.22 | 352,476.76 | 13,078,619.98 |
III. Provision forimpairment
| III. Provision for impairment |
1. Beginning balance
| 1. Beginning balance |
2. Amount increased in
current period
| 2. Amount increased in current period |
(1) Provision
| (1) Provision |
3. Amount decreased in
current period
| 3. Amount decreased in current period |
(1) Disposal
| (1) Disposal |
(2) Other transfer-out
| (2) Other transfer-out |
2023 Full Annual Report
| Item | Houses and buildings | Land use right | Construction in progress | Total |
4. Ending balance
| 4. Ending balance |
IV. Book value
| IV. Book value |
1. Ending book value
| 1. Ending book value | 90,426,565.07 | 710,267.24 | 91,136,832.31 |
2. Beginning book value
| 2. Beginning book value | 55,160,990.14 | 726,208.40 | 55,887,198.54 |
The recoverable amount is determined by the net of fair value less disposal costs
□ Applicable ? Not applicable
The recoverable amount is determined by the present value of expected future cash flow.
□ Applicable ? Not applicable
Reasons for significant discrepancies between the above information and the information used for impairment tests in previousyears or external informationReasons for significant discrepancies between the information used for Company's impairment tests in the previous years and theactual situation in current yearOther description: The increase in investment properties was mainly due to the further expansion of new plant leasing ofShengzhou Kinde, a subsidiary of the Company.
(2) Investment properties using fair value measurement mode
□ Applicable ? Not applicable
13. Fixed assets
Unit: yuan
| Item | Ending balance | Beginning balance |
Fixed assets
| Fixed assets | 1,720,724,257.46 | 1,622,235,227.74 |
Liquidation of fixed assets
| Liquidation of fixed assets |
Total
| Total | 1,720,724,257.46 | 1,622,235,227.74 |
(1) Fixed assets
Unit: yuan
| Item | Houses and building | Machinery equipment | Transportation equipment | Other equipment | Total |
I. Original bookvalue:
| I. Original book value: |
1. Beginning
balance
| 1. Beginning balance | 1,523,220,278.27 | 772,545,629.62 | 22,374,395.72 | 100,291,571.58 | 2,418,431,875.19 |
2. Amount
increased incurrent period
| 2. Amount increased in current period | 171,644,314.46 | 78,302,805.96 | 3,361,392.98 | 38,515,056.66 | 291,823,570.06 |
(1) Purchase
| (1) Purchase | 26,518,379.39 | 4,773,128.55 | 3,361,392.98 | 6,146,062.35 | 40,798,963.27 |
(2) Transfer from
construction inprogress
| (2) Transfer from construction in progress | 145,125,935.07 | 73,529,677.41 | 32,368,994.31 | 251,024,606.79 |
(3) Increase by
businesscombination
| (3) Increase by business combination |
3. Amount
decreased incurrent period
| 3. Amount decreased in current period | 41,510,951.28 | 3,966,698.25 | 2,682,647.57 | 884,947.74 | 49,045,244.84 |
(1) Disposal or
scrap
| (1) Disposal or scrap | 3,966,698.25 | 2,682,647.57 | 884,947.74 | 7,534,293.56 |
(2) Other decreases
| (2) Other decreases | 41,510,951.28 | 41,510,951.28 |
4. Ending balance
| 4. Ending balance | 1,653,353,641.45 | 846,881,737.33 | 23,053,141.13 | 137,921,680.50 | 2,661,210,200.41 |
2023 Full Annual Report
| Item | Houses and building | Machinery equipment | Transportation equipment | Other equipment | Total |
II. Accumulateddepreciation
| II. Accumulated depreciation |
1. Beginning
balance
| 1. Beginning balance | 321,138,425.43 | 395,184,441.84 | 14,716,378.28 | 65,157,401.90 | 796,196,647.45 |
2. Amount
increased incurrent period
| 2. Amount increased in current period | 73,041,059.80 | 62,760,024.37 | 2,187,833.83 | 12,975,612.72 | 150,964,530.72 |
(1) Provision
| (1) Provision | 73,041,059.80 | 62,760,024.37 | 2,187,833.83 | 12,975,612.72 | 150,964,530.72 |
3. Amount
decreased incurrent period
| 3. Amount decreased in current period | 1,454,095.39 | 1,885,170.57 | 1,835,890.73 | 1,500,078.53 | 6,675,235.22 |
(1) Disposal or
scrap
| (1) Disposal or scrap | 1,885,170.57 | 1,835,890.73 | 1,500,078.53 | 5,221,139.83 |
(2) Other decreases
| (2) Other decreases | 1,454,095.39 | 1,454,095.39 |
4. Ending balance
| 4. Ending balance | 392,725,389.84 | 456,059,295.64 | 15,068,321.38 | 76,632,936.09 | 940,485,942.95 |
III. Provision forimpairment
| III. Provision for impairment |
1. Beginning
balance
| 1. Beginning balance |
2. Amount
increased incurrent period
| 2. Amount increased in current period |
(1) Provision
| (1) Provision |
3. Amount
decreased incurrent period
| 3. Amount decreased in current period |
(1) Disposal or
scrap
| (1) Disposal or scrap |
4. Ending balance
| 4. Ending balance |
IV. Book value
| IV. Book value |
1. Ending book
value
| 1. Ending book value | 1,260,628,251.61 | 390,822,441.69 | 7,984,819.75 | 61,288,744.41 | 1,720,724,257.46 |
2. Beginning book
value
| 2. Beginning book value | 1,202,081,852.84 | 377,361,187.78 | 7,658,017.44 | 35,134,169.68 | 1,622,235,227.74 |
(2) Impairment test of fixed assets
□ Applicable ? Not applicable
14. Construction in progress
Unit: yuan
| Item | Ending balance | Beginning balance |
Construction in progress
| Construction in progress | 359,768,699.68 | 406,258,146.69 |
Total
| Total | 359,768,699.68 | 406,258,146.69 |
(1) Construction in progress
Unit: yuan
| Item | Ending balance | Beginning balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
ROBAMBuilding project
| ROBAM Building project | 336,704,853.10 | 336,704,853.10 | 192,286,508.04 | 192,286,508.04 |
2023 Full Annual Report
| Maoshan intelligent manufacturing base infrastructure project | 192,769,369.56 | 192,769,369.56 |
Project ofproductiondepartment 4
| Project of production department 4 | 14,080,754.69 | 14,080,754.69 |
Customizedmanagementsoftware
| Customized management software | 3,182,235.79 | 3,182,235.79 | 5,505,845.75 | 5,505,845.75 |
Project ofproductiondepartment 1
| Project of production department 1 | 941,946.89 | 941,946.89 | 5,941,592.92 | 5,941,592.92 |
Project ofproductiondepartment 3
| Project of production department 3 | 761,150.44 | 761,150.44 | 3,855,078.16 | 3,855,078.16 |
Project ofproductiondepartment 2
| Project of production department 2 | 130,973.44 | 130,973.44 | 1,387,610.64 | 1,387,610.64 |
Other sporadicprojects
| Other sporadic projects | 3,966,785.33 | 3,966,785.33 | 4,512,141.62 | 4,512,141.62 |
Total
| Total | 359,768,699.68 | 359,768,699.68 | 406,258,146.69 | 406,258,146.69 |
(2) Current changes in major projects under construction
Unit: yuan
| Item name | Budget number | Beginning balance | Amount increased in current period | Amount carried forward to fixed assets in current period | Other decreases in current period | Ending balance | Proportion of total project input to the budget | Progress of works | Source of funds |
ROBAMBuildingproject
| ROBAM Building project | 724,750,000.00 | 192,286,508.04 | 144,418,345.06 | 336,704,853.10 | 46.46% | 46.46 | Owned fund |
Maoshanintelligentmanufacturing
| Maoshan intelligent manufacturing | 954,238,416.50 | 192,769,369.56 | 17,206,715.24 | 209,976,084.80 | 100.00% | 100.00 | Owned fund |
Total
| Total | 1,678,988,416.50 | 385,055,877.60 | 161,625,060.30 | 209,976,084.80 | 336,704,853.10 |
(3) Impairment test of construction in progress
□ Applicable ? Not applicable
15. Right-of-use assets
(1) Right-of-use assets
Unit: yuan
| Item | Houses and buildings | Total |
I. Original book value
| I. Original book value |
1. Beginning balance
| 1. Beginning balance | 33,078,049.02 | 33,078,049.02 |
2. Amount increased in current period
| 2. Amount increased in current period |
3. Amount decreased in current period
| 3. Amount decreased in current period | 3,620,141.00 | 3,620,141.00 |
2023 Full Annual Report
| Item | Houses and buildings | Total |
Disposal
| Disposal | 3,620,141.00 | 3,620,141.00 |
4. Ending balance
| 4. Ending balance | 29,457,908.02 | 29,457,908.02 |
II. Accumulated depreciation
| II. Accumulated depreciation |
1. Beginning balance
| 1. Beginning balance | 10,857,904.89 | 10,857,904.89 |
2. Amount increased in current period
| 2. Amount increased in current period | 4,975,042.57 | 4,975,042.57 |
(1) Provision
| (1) Provision | 4,975,042.57 | 4,975,042.57 |
3. Amount decreased in current period
| 3. Amount decreased in current period | 177,498.42 | 177,498.42 |
(1) Disposal
| (1) Disposal | 177,498.42 | 177,498.42 |
4. Ending balance
| 4. Ending balance | 15,655,449.04 | 15,655,449.04 |
III. Provision for impairment
| III. Provision for impairment |
1. Beginning balance
| 1. Beginning balance |
2. Amount increased in current period
| 2. Amount increased in current period |
(1) Provision
| (1) Provision |
3. Amount decreased in current period
| 3. Amount decreased in current period |
(1) Disposal
| (1) Disposal |
4. Ending balance
| 4. Ending balance |
IV. Book value
| IV. Book value |
1. Ending book value
| 1. Ending book value | 13,802,458.98 | 13,802,458.98 |
2. Beginning book value
| 2. Beginning book value | 22,220,144.13 | 22,220,144.13 |
(2) Impairment test of right-of-use assets
□ Applicable ? Not applicable
16. Intangible assets
(1) Intangible assets
Unit: yuan
| Item | Land use right | Patent right | Nonpatented technology | Software | Trademark | Patent | Total |
I. Original book value
| I. Original book value |
1. Beginning balance
| 1. Beginning balance | 224,593,935.95 | 66,054,963.42 | 24,624,622.64 | 7,300,000.00 | 322,573,522.01 |
2. Amount increased
in current period
| 2. Amount increased in current period | 7,153,296.11 | 7,153,296.11 |
(1) Purchase
| (1) Purchase | 1,411,820.03 | 1,411,820.03 |
(2) Internal R&D
| (2) Internal R&D |
(3) Increase by
business combination
| (3) Increase by business combination |
(4) Transfer from
construction inprogress
| (4) Transfer from construction in progress | 5,741,476.08 | 5,741,476.08 |
3. Amount decreased
in current period
| 3. Amount decreased in current period |
(1) Disposal
| (1) Disposal |
4. Ending balance
| 4. Ending balance | 224,593,935.95 | 73,208,259.53 | 24,624,622.64 | 7,300,000.00 | 329,726,818.12 |
II. Accumulatedamortization
| II. Accumulated amortization |
2023 Full Annual Report
| 1. Beginning balance | 34,355,786.06 | 50,741,829.14 | 11,065,502.28 | 5,053,846.15 | 101,216,963.63 |
2. Amount increased
in current period
| 2. Amount increased in current period | 4,497,696.17 | 5,872,879.84 | 2,462,462.24 | 1,123,076.93 | 13,956,115.18 |
(1) Provision
| (1) Provision | 4,497,696.17 | 5,872,879.84 | 2,462,462.24 | 1,123,076.93 | 13,956,115.18 |
3. Amount decreased
in current period
| 3. Amount decreased in current period |
(1) Disposal
| (1) Disposal |
4. Ending balance
| 4. Ending balance | 38,853,482.23 | 56,614,708.98 | 13,527,964.52 | 6,176,923.08 | 115,173,078.81 |
III. Provision forimpairment
| III. Provision for impairment |
1. Beginning balance
| 1. Beginning balance |
2. Amount increased
in current period
| 2. Amount increased in current period |
(1) Provision
| (1) Provision |
3. Amount decreased
in current period
| 3. Amount decreased in current period |
(1) Disposal
| (1) Disposal |
4. Ending balance
| 4. Ending balance |
IV. Book value
| IV. Book value |
1. Ending book value
| 1. Ending book value | 185,740,453.72 | 16,593,550.55 | 11,096,658.12 | 1,123,076.92 | 214,553,739.31 |
2. Beginning book
value
| 2. Beginning book value | 190,238,149.89 | 15,313,134.28 | 13,559,120.36 | 2,246,153.85 | 221,356,558.38 |
The proportion of intangible assets formed through internal research and development of the Company to the balance of intangibleassets at the end of this period.
(2) Impairment test of intangible assets
□ Applicable ? Not applicable
17. Goodwill
(1) Original book value of goodwill
Unit: yuan
| Investee name or goodwill forming matter | Beginning balance | Increase in current period | Decrease in current period | Ending balance | ||
| By business combination | Disposal | |||||
Shengzhou KindeIntelligent KitchenElectric Co., Ltd.
| Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. | 80,589,565.84 | 80,589,565.84 |
Total
| Total | 80,589,565.84 | 80,589,565.84 |
(2) Provision for impairment of goodwill
Unit: yuan
| Investee name or goodwill forming matter | Beginning balance | Increase in current period | Decrease in current period | Ending balance | ||
| Provision | Disposal | |||||
Shengzhou KindeIntelligent KitchenElectric Co., Ltd.
| Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. | 20,015,733.28 | 48,350,560.89 | 68,366,294.17 |
Total
| Total | 20,015,733.28 | 48,350,560.89 | 68,366,294.17 |
2023 Full Annual Report
18. Long-term unamortized expenses
Unit: yuan
| Item | Beginning balance | Amount increased in current period | Amortization amount in current period | Other decreases | Ending balance |
Office decorationfee
| Office decoration fee | 4,975,535.19 | 2,644,373.55 | 2,331,161.64 |
Service charge
| Service charge | 568,331.27 | 5,272,541.46 | 3,757,582.94 | 2,083,289.77 |
Consulting fee
| Consulting fee | 78,916.67 | 537,431.46 | 348,615.03 | 267,733.10 |
Advertising andpromotion expenses
| Advertising and promotion expenses | 184,204.48 | 3,911,850.12 | 3,966,838.47 | 129,216.10 |
Other
| Other | 45,912.29 | 6,280,310.56 | 6,102,964.14 | 223,258.76 |
Total
| Total | 5,852,899.90 | 16,002,133.60 | 16,820,374.13 | 5,034,659.37 |
Other description:
19. Deferred income tax assets / deferred income tax liabilities
(1) Unoffset deferred income tax assets
Unit: yuan
| Item | Ending balance | Beginning balance | ||
| Deductible temporary differences | Deferred income tax assets | Deductible temporary differences | Deferred income tax assets | |
Provision for creditimpairment
| Provision for credit impairment | 1,228,253,675.11 | 191,913,813.81 | 1,140,080,421.22 | 177,937,345.82 |
Recognition for provisionalestimate cost
| Recognition for provisional estimate cost | 744,083,389.27 | 111,612,508.39 | 775,373,813.20 | 116,306,071.98 |
Fair value change of otherequity instrumentinvestments
| Fair value change of other equity instrument investments | 117,832,510.80 | 17,674,876.62 | 117,832,510.80 | 17,674,876.62 |
Recognition for deferredincome
| Recognition for deferred income | 101,473,668.87 | 15,221,050.33 | 86,923,728.33 | 13,038,559.25 |
Provision for impairmentof assets
| Provision for impairment of assets | 97,315,669.06 | 14,597,350.36 | 75,904,924.33 | 11,385,738.65 |
Unrealized profit ofinternal transaction
| Unrealized profit of internal transaction | 9,265,235.74 | 2,316,308.94 |
Recognition for equityincentive
| Recognition for equity incentive | 9,730,756.23 | 1,510,663.99 | 7,950,207.60 | 1,239,475.54 |
Income that should berecognized according to taxlaws but not yet recognizedby the accountant
| Income that should be recognized according to tax laws but not yet recognized by the accountant | 60,810,075.93 | 9,121,511.39 |
Lease liabilities
| Lease liabilities | 4,984,267.98 | 1,246,067.00 | 3,651,876.63 | 912,969.16 |
Total
| Total | 2,364,484,013.25 | 362,897,841.89 | 2,216,982,717.85 | 340,811,345.96 |
(2) Unoffset deferred income tax liabilities
Unit: yuan
| Item | Ending balance | Beginning balance | ||
| Taxable temporary differences | Deferred income tax liabilities | Taxable temporary differences | Deferred income tax liabilities | |
Appreciation of assetsappraisal for businesscombination not undercommon control
| Appreciation of assets appraisal for business combination not under common control | 17,528,191.69 | 2,629,228.75 | 21,533,616.61 | 3,230,042.49 |
Right-of-use assets
| Right-of-use assets | 3,260,199.24 | 815,049.81 |
Taxable temporarydifferences due to thepretax deduction of fixed
| Taxable temporary differences due to the pretax deduction of fixed | 112,448,544.27 | 16,867,281.64 | 125,852,613.90 | 18,877,892.09 |
2023 Full Annual Report
assetsAccrued interest on timedeposits
| Accrued interest on time deposits | 54,046,698.73 | 8,107,004.81 |
Total
| Total | 187,283,633.93 | 28,418,565.01 | 147,386,230.51 | 22,107,934.58 |
(3) Deferred income tax assets or liabilities presented as net amount after offset
Unit: yuan
| Item | Ending offset amount of deferred income tax assets and liabilities | Ending balance of deferred income tax assets and liabilities after offset | Beginning offset amount of deferred income tax assets and liabilities | Beginning balance of deferred income tax assets and liabilities after offset |
Deferred income taxassets
| Deferred income tax assets | 362,897,841.89 | 340,811,345.96 |
Deferred income taxliabilities
| Deferred income tax liabilities | 28,418,565.01 | 22,107,934.58 |
(4) Details of unrecognized deferred income tax assets
Unit: yuan
| Item | Ending balance | Beginning balance |
Deductible temporary differences
| Deductible temporary differences | 13,929,952.65 |
Deductible loss
| Deductible loss | 102,787,541.49 | 44,298,409.84 |
Total
| Total | 116,717,494.14 | 44,298,409.84 |
(5) Deductible losses on unrecognized deferred income tax assets will expire in the following year
Unit: yuan
| Year | Ending amount | Beginning amount | Remark |
2023
| 2023 | 6,714.34 |
2024
| 2024 | 5,602.28 | 5,602.28 |
2025
| 2025 | 9,556,499.12 | 9,556,499.12 |
2026
| 2026 | 10,380,561.57 | 10,380,561.57 |
2027
| 2027 | 24,349,032.53 | 24,349,032.53 |
2028
| 2028 | 58,495,845.99 |
Total
| Total | 102,787,541.49 | 44,298,409.84 |
Other description:
20. Other non-current assets
Unit: yuan
| Item | Ending balance | Beginning balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
Time deposit overone year
| Time deposit over one year | 1,770,000,000.00 | 1,770,000,000.00 |
Project mortgageproperty *1 Note 1
| Project mortgage property *1 Note 1 | 97,041,317.94 | 33,964,461.28 | 63,076,856.66 | 48,666,572.69 | 3,315,747.32 | 45,350,825.37 |
Advance paymentfor house purchase
| Advance payment for house purchase | 76,602,510.25 | 76,602,510.25 |
Advance paymentfor equipment
| Advance payment for equipment | 12,455,961.74 | 12,455,961.74 | 4,082,671.76 | 4,082,671.76 |
Advance paymentfor engineering
| Advance payment for engineering | 194,000.00 | 194,000.00 |
Total
| Total | 1,956,293,789.93 | 33,964,461.28 | 1,922,329,328.65 | 52,749,244.45 | 3,315,747.32 | 49,433,497.13 |
Other description:
*1. At the end of the year, the Company signed the debt restructuring agreement and completed the real estate transfer proceduresfor the purchase of project mortgage property and parking space with a total price of RMB 97,041,300, and the impairment
2023 Full Annual Report
provision of RMB 33,964,500. See "XVIII. Other important matters 1. Debt restructuring matters" in this report for details.
21. Assets with ownership or use rights restricted
Unit: yuan
| Item | At the end of the period | At the beginning of the period | ||||||
| Book balance | Book value | Type of restriction | Restriction details | Book balance | Book value | Type of restriction | Restriction details | |
Monetarycapital
| Monetary capital | 83,153,343.90 | 83,153,343.90 | Guarantee deposit | 76,092,305.89 | 76,092,305.89 | Guarantee deposit |
Fixed assets
| Fixed assets | 108,455,603.60 | 99,401,869.39 | Mortgage loan |
Intangibleassets
| Intangible assets | 28,181,534.50 | 25,884,399.80 | Mortgage loan |
Monetarycapital
| Monetary capital | 23,717,043.12 | 23,717,043.12 | Bill deposit | 20,243,023.31 | 20,243,023.31 | Bill deposit |
Monetarycapital
| Monetary capital | 14,000.00 | 14,000.00 | ETC deposit | 13,000.00 | 13,000.00 | ETC deposit |
Total
| Total | 243,521,525.12 | 232,170,656.21 | 96,348,329.20 | 96,348,329.20 |
22. Short-term borrowing
(1) Classification of short-term borrowing
Unit: yuan
| Item | Ending balance | Beginning balance |
Mortgage loan
| Mortgage loan | 49,500,000.00 |
Credit loan
| Credit loan | 31,500,000.00 | 51,150,000.00 |
Accounts receivable factoring
| Accounts receivable factoring | 14,003,320.70 | 573,429.99 |
Total
| Total | 95,003,320.70 | 51,723,429.99 |
Description of classification of short-term borrowingCredit loan: It is the working capital loan of Shengzhou Kinde (a subsidiary of the Company) and Cooking Future (a subsidiary ofShengzhou Kinde) from Shaoxing Shengzhou Sub-branch of Bank of Communications Co., Ltd., Shaoxing Shengzhou Sub-branchof China Construction Bank Co., Ltd., Shaoxing Shengzhou Sub-branch of China Minsheng Banking Corporation Limited andShaoxing Shengzhou Small and Micro Enterprise Specialized Sub-branch of Zhejiang Tailong Commercial Bank Co., Ltd. Theloan term is 1 year, and the interest rate range is 3.25%-6.18%.Mortgage loan: Shengzhou Kinde, a subsidiary of the Company, signed a mortgage loan contract with Shaoxing Shengzhou Sub-branch of Bank of Communications Co., Ltd. on June 1, 2023, and obtained a loan credit line of RMB 160 million from Bank ofCommunications, which was utilized in the current year to the extent of RMB 49.5 million, with the loan interest rate of 3.25%-
3.35%. The collateral is the house and land of Plant No. 1 located at No. 888 Ruanpeng Road, Shengzhou City, with a total netvalue of RMB 125 million.
23. Notes payable
Unit: yuan
| Type | Ending balance | Beginning balance |
Banker's acceptance bill
| Banker's acceptance bill | 1,098,720,000.58 | 872,550,306.86 |
Total
| Total | 1,098,720,000.58 | 872,550,306.86 |
2023 Full Annual Report
24. Accounts payable
(1) Presentation of accounts payable
Unit: yuan
| Item | Ending balance | Beginning balance |
Payment for materials
| Payment for materials | 1,267,081,255.68 | 1,179,804,339.04 |
Costs
| Costs | 1,107,539,973.00 | 1,004,448,565.06 |
Project payment
| Project payment | 164,258,188.72 | 202,679,315.68 |
Payment for equipment
| Payment for equipment | 9,864,344.66 | 31,822,947.53 |
Total
| Total | 2,548,743,762.06 | 2,418,755,167.31 |
(2) Important accounts payable with the aging over 1 year or overdue
Note: As of December 31, 2023, the Company's balance of important accounts payable with an age over one year were RMB68,156,576.35, mainly for the outstanding project funds and fees.
25. Other payables
Unit: yuan
| Item | Ending balance | Beginning balance |
Dividends payable
| Dividends payable | 472,047,458.00 |
Other payables
| Other payables | 283,917,461.76 | 281,878,208.25 |
Total
| Total | 755,964,919.76 | 281,878,208.25 |
(1) Dividends payable
Unit: yuan
| Item | Ending balance | Beginning balance |
Common stock dividends
| Common stock dividends | 472,047,458.00 |
Total
| Total | 472,047,458.00 |
(2) Other payables
1) Other payables listed by nature
Unit: yuan
| Item | Ending balance | Beginning balance |
Margin payable
| Margin payable | 266,137,376.14 | 265,582,978.77 |
Collections for others
| Collections for others | 4,941,205.70 | 7,285,543.45 |
Deposit payable
| Deposit payable | 6,600,507.19 | 6,122,832.30 |
Other
| Other | 6,238,372.73 | 2,886,853.73 |
Total
| Total | 283,917,461.76 | 281,878,208.25 |
2) Important other payables with the aging over 1 year
Unit: yuan
| Item | Ending balance | Reasons for failure of payment or carryover |
Sales deposit
| Sales deposit | 68,156,576.35 |
Total
| Total | 68,156,576.35 |
26. Contract liabilities
Unit: yuan
| Item | Ending balance | Beginning balance |
Advances from customers
| Advances from customers | 1,019,942,923.58 | 959,915,567.03 |
Total
| Total | 1,019,942,923.58 | 959,915,567.03 |
2023 Full Annual Report
(1) Presentation of payroll payable
Unit: yuan
| Item | Beginning balance | Increase in current period | Decrease in current period | Ending balance |
I. Short-termcompensation
| I. Short-term compensation | 150,070,271.37 | 994,720,896.44 | 975,802,464.20 | 168,988,703.61 |
II. Welfare afterdismission - definedcontribution plan
| II. Welfare after dismission - defined contribution plan | 3,696,456.80 | 76,510,989.51 | 71,385,186.08 | 8,822,260.23 |
III. Dismission welfare
| III. Dismission welfare | 175,601.71 | 1,675,298.12 | 1,738,821.66 | 112,078.17 |
Total
| Total | 153,942,329.88 | 1,072,907,184.07 | 1,048,926,471.94 | 177,923,042.01 |
(2) Presentation of short-term compensation
Unit: yuan
| Item | Beginning balance | Increase in current period | Decrease in current period | Ending balance |
1. Wages, bonuses,
allowances andsubsidies
| 1. Wages, bonuses, allowances and subsidies | 144,681,781.61 | 843,221,721.35 | 825,487,750.12 | 162,415,752.84 |
2. Employee welfare
expenses
| 2. Employee welfare expenses | 37,954,488.12 | 37,954,488.12 |
3. Social insurance
premium
| 3. Social insurance premium | 4,319,168.44 | 51,052,801.81 | 49,564,928.90 | 5,807,041.35 |
Including: medicalinsurance premium
| Including: medical insurance premium | 4,212,988.20 | 48,489,005.68 | 47,209,079.68 | 5,492,914.20 |
Industrial injuryinsurance premium
| Industrial injury insurance premium | 106,180.24 | 2,563,796.13 | 2,355,849.22 | 314,127.15 |
4. Housing fund
| 4. Housing fund | 664,905.00 | 46,150,383.55 | 46,468,148.55 | 347,140.00 |
5. Labor union
expenditure andpersonnel educationfund
| 5. Labor union expenditure and personnel education fund | 404,416.32 | 16,341,501.61 | 16,327,148.51 | 418,769.42 |
Total
| Total | 150,070,271.37 | 994,720,896.44 | 975,802,464.20 | 168,988,703.61 |
(3) Presentation of defined contribution plans
Unit: yuan
| Item | Beginning balance | Increase in current period | Decrease in current period | Ending balance |
1. Basic endowment
insurance
| 1. Basic endowment insurance | 3,571,259.19 | 73,962,963.40 | 69,009,336.27 | 8,524,886.32 |
2. Unemployment
insurance premium
| 2. Unemployment insurance premium | 125,197.61 | 2,548,026.11 | 2,375,849.81 | 297,373.91 |
Total
| Total | 3,696,456.80 | 76,510,989.51 | 71,385,186.08 | 8,822,260.23 |
27. Tax payable
Unit: yuan
| Item | Ending balance | Beginning balance |
Added value tax
| Added value tax | 61,072,058.37 | 56,957,133.24 |
Corporate income tax
| Corporate income tax | 61,750,915.22 | 70,376,526.39 |
Individual income tax
| Individual income tax | 3,100,246.18 | 2,226,988.94 |
Urban maintenance and construction tax
| Urban maintenance and construction tax | 4,330,476.87 | 3,805,759.15 |
Housing property tax
| Housing property tax | 13,625,288.12 | 10,345,173.49 |
Land use tax
| Land use tax | 5,696,022.16 | 4,382,947.50 |
Education surcharge
| Education surcharge | 1,855,918.59 | 1,631,039.59 |
2023 Full Annual Report
| Item | Ending balance | Beginning balance |
Stamp duty
| Stamp duty | 1,697,472.12 | 1,538,692.42 |
Surcharge for local education
| Surcharge for local education | 1,237,279.17 | 1,087,359.86 |
Total
| Total | 154,365,676.80 | 152,351,620.58 |
28. Non-current liabilities due within a year
Unit: yuan
| Item | Ending balance | Beginning balance |
Lease liabilities due within one year
| Lease liabilities due within one year | 4,522,658.42 | 5,720,175.21 |
Total
| Total | 4,522,658.42 | 5,720,175.21 |
Other description:
29. Other current liabilities
Unit: yuan
| Item | Ending balance | Beginning balance |
Output tax to be carried forward
| Output tax to be carried forward | 118,041,351.23 | 120,126,501.73 |
Total
| Total | 118,041,351.23 | 120,126,501.73 |
30. Lease liabilities
Unit: yuan
| Item | Ending balance | Beginning balance |
Lease payments
| Lease payments | 17,643,054.87 | 28,173,738.18 |
Unrecognized financing expenses
| Unrecognized financing expenses | -2,369,603.55 | -3,864,596.28 |
Non-current liabilities reclassified to duewithin a year
| Non-current liabilities reclassified to due within a year | -4,522,658.42 | -5,720,175.23 |
Total
| Total | 10,750,792.90 | 18,588,966.67 |
31. Deferred income
Unit: yuan
| Item | Beginning balance | Increase in current period | Decrease in current period | Ending balance | Causes |
Governmentsubsidies
| Government subsidies | 123,912,110.43 | 32,914,193.20 | 20,288,048.89 | 136,538,254.74 | Government grant |
Total
| Total | 123,912,110.43 | 32,914,193.20 | 20,288,048.89 | 136,538,254.74 | -- |
32. Share capital
Unit: yuan
| Beginning balance | Increase/decrease (+, -) | Ending balance | |||||
| New issue of shares | Share donation | Share capital increase from reserved funds | Other | Subtotal | |||
Totalamount ofshares
| Total amount of shares | 949,024,050.00 | 949,024,050.00 |
33. Capital reserve
Unit: yuan
| Item | Beginning balance | Increase in current period | Decrease in current period | Ending balance |
Capital premium (capitalstock premium)
| Capital premium (capital stock premium) | 401,799,332.67 | 401,799,332.67 |
Other capital surplus
| Other capital surplus | 8,198,332.91 | 1,780,548.64 | 9,978,881.55 |
Total
| Total | 409,997,665.58 | 1,780,548.64 | 411,778,214.22 |
2023 Full Annual Report
34. Treasury stock
Unit: yuan
| Item | Beginning balance | Increase in current period | Decrease in current period | Ending balance |
Share repurchase
| Share repurchase | 199,995,742.59 | 199,995,742.59 |
Total
| Total | 199,995,742.59 | 199,995,742.59 |
35. Other comprehensive income
Unit: yuan
| Item | Beginning balance | Amount incurred in current period | Ending balance | |||||
| Amount before current income tax | Minus: amount included in other comprehensive income in previous period and carried forward to profit and loss in current period | Minus: amount included in other comprehensive income in previous period and included in carried forward to retained earnings in current period | Minus: Income tax expenses | Attributable to the parent company after tax | Attributable to minority shareholders after tax | |||
I. Othercomprehensiveincome that can't bereclassified intoprofit and loss
| I. Other comprehensive income that can't be reclassified into profit and loss | -100,157,634.16 | -100,157,634.16 |
Fair value change ofother equityinstrumentinvestments
| Fair value change of other equity instrument investments | -100,157,634.16 | -100,157,634.16 |
Total othercomprehensiveincome
| Total other comprehensive income | -100,157,634.16 | -100,157,634.16 |
36. Surplus reserves
Unit: yuan
| Item | Beginning balance | Increase in current period | Decrease in current period | Ending balance |
Statutory surplusreserves
| Statutory surplus reserves | 474,516,412.50 | 474,516,412.50 |
Total
| Total | 474,516,412.50 | 474,516,412.50 |
37. Undistributed profit
Unit: yuan
| Item | Current period | Prior period |
Undistributed profit at the end of previousperiod before adjustment
| Undistributed profit at the end of previous period before adjustment | 8,199,079,015.58 | 7,098,721,555.37 |
Undistributed profits at the beginning ofthe period after adjustment
| Undistributed profits at the beginning of the period after adjustment | 8,199,079,015.58 | 7,098,721,555.37 |
Plus: Net profits attributable to the ownersof parent company in the current period
| Plus: Net profits attributable to the owners of parent company in the current period | 1,732,789,332.13 | 1,572,404,918.21 |
Common stock dividends payable
| Common stock dividends payable | 944,094,916.00*1 | 472,047,458.00 |
Undistributed profits at the end of theperiod
| Undistributed profits at the end of the period | 8,987,773,431.71 | 8,199,079,015.58 |
2023 Full Annual Report
*1. According to the Proposal on the Profit Distribution Plan for 2022 passed at the Company's 14th meetingof the fifth Board of Directors on April 25, 2023, based on the total share capital of 944,094,916.00 as atDecember 31, 2022, the Company intends to pay a cash dividend of RMB 5.00 (tax inclusive) per 10 shares toall shareholders, totaling RMB 472,047,458.00. On May 18, 2023, the Profit Distribution Plan for 2022 wasapproved at the Company's 2022 Annual General Meeting, and the profit distribution was made on May 30,2023.According to the Proposal on the Special Dividend Plan for Returning Shareholders passed at the Company's4th meeting of the sixth Board of Directors on December 14, 2023, based on the existing 944,094,916 shares ofthe Company, the Company intends to pay a cash dividend of RMB 5.00 (tax inclusive) per 10 shares to allshareholders, totaling RMB 472,047,458.00. On December 29, 2023, at the second extraordinary generalmeeting of shareholders of the Company, the Special Dividend Plan for Returning Shareholders was adopted.
38. Operating income and operating cost
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period | ||
| Income | Cost | Income | Cost | |
Main business
| Main business | 10,897,226,245.68 | 5,369,816,850.21 | 9,981,652,062.48 | 5,021,006,447.26 |
Other businesses
| Other businesses | 304,669,528.59 | 157,831,856.08 | 289,848,508.56 | 116,362,310.89 |
Total
| Total | 11,201,895,774.27 | 5,527,648,706.29 | 10,271,500,571.04 | 5,137,368,758.15 |
39. Taxes and surcharges
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period |
Urban maintenance and construction tax
| Urban maintenance and construction tax | 44,475,351.96 | 36,866,764.88 |
Education surcharge
| Education surcharge | 31,768,105.78 | 26,333,403.43 |
Housing property tax
| Housing property tax | 15,227,067.94 | 10,952,011.11 |
Land use tax
| Land use tax | 1,342,982.99 |
Vehicle and vessel use tax
| Vehicle and vessel use tax | 24,240.12 | 31,382.80 |
Stamp duty
| Stamp duty | 5,801,185.42 | 4,372,007.14 |
Other
| Other | 12,673.86 | 9,014.69 |
Total
| Total | 98,651,608.07 | 78,564,584.05 |
40. Management costs
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period |
Employee compensation
| Employee compensation | 256,829,379.16 | 232,915,393.30 |
Depreciation and amortization
| Depreciation and amortization | 79,272,827.17 | 57,769,379.05 |
Consulting service charge
| Consulting service charge | 36,819,646.61 | 30,328,558.67 |
Office allowance
| Office allowance | 22,833,298.74 | 19,173,287.07 |
Rental and property fees
| Rental and property fees | 10,388,619.24 | 16,857,502.46 |
Business entertainment expenses
| Business entertainment expenses | 10,338,970.38 | 9,589,758.62 |
Maintenance expense
| Maintenance expense | 7,741,520.94 | 20,325,200.99 |
Traveling expense
| Traveling expense | 7,407,518.81 | 8,655,474.80 |
Material consumption
| Material consumption | 6,869,407.96 | 2,329,956.33 |
Communication expense
| Communication expense | 6,067,385.51 | 5,882,277.89 |
Car fare
| Car fare | 3,940,649.91 | 3,990,965.03 |
Equity incentive fee
| Equity incentive fee | 1,780,548.64 | 4,735,460.49 |
Other
| Other | 19,332,299.53 | 18,415,189.04 |
Total
| Total | 469,622,072.60 | 430,968,403.74 |
41. Selling expenses
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period |
2023 Full Annual Report
| Item | Amount incurred in current period | Amount incurred in previous period |
Sales and service fees
| Sales and service fees | 1,198,898,829.94 | 1,025,589,168.39 |
Advertising and promotion expenses
| Advertising and promotion expenses | 777,479,186.47 | 742,763,089.08 |
Employee compensation
| Employee compensation | 406,543,689.72 | 377,046,127.44 |
Booth decoration fee
| Booth decoration fee | 277,267,106.80 | 193,012,956.27 |
Promotion fees
| Promotion fees | 111,160,033.93 | 101,079,371.35 |
Material consumption
| Material consumption | 82,469,966.99 | 67,685,473.69 |
Traveling expense
| Traveling expense | 34,611,784.09 | 27,632,789.17 |
Intermediary service charge
| Intermediary service charge | 33,461,629.22 | 21,405,980.86 |
Office allowance
| Office allowance | 29,564,756.90 | 14,226,573.69 |
Business entertainment expenses
| Business entertainment expenses | 19,119,295.57 | 16,132,300.29 |
Rental fees
| Rental fees | 17,937,109.93 | 16,347,878.64 |
Other
| Other | 13,905,261.98 | 10,704,365.02 |
Total
| Total | 3,002,418,651.54 | 2,613,626,073.89 |
42. Research and development expenses
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period |
Employee compensation
| Employee compensation | 231,392,266.56 | 200,367,321.67 |
Direct investment
| Direct investment | 118,236,087.05 | 153,846,595.26 |
Depreciation and amortization
| Depreciation and amortization | 14,079,387.74 | 15,626,975.33 |
Design fee
| Design fee | 4,601,868.90 | 6,949,423.09 |
Other expenses
| Other expenses | 19,058,981.72 | 14,824,490.03 |
Total
| Total | 387,368,591.97 | 391,614,805.38 |
43. Financial expenses
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period |
Interest expenditure
| Interest expenditure | 8,773,638.31 | 10,249,057.76 |
Minus: Interest income
| Minus: Interest income | 198,559,145.09 | 162,232,029.99 |
Plus: Exchange gain or loss
| Plus: Exchange gain or loss | -1,275,825.96 | -7,158,057.38 |
Plus: Other income
| Plus: Other income | 2,133,596.15 | 1,918,741.00 |
Total
| Total | -188,927,736.59 | -157,222,288.61 |
44. Other income
Unit: yuan
| Other sources of income | Amount incurred in current period | Amount incurred in previous period |
Embedded software tax rebate
| Embedded software tax rebate | 45,894,461.03 | 45,959,892.74 |
VAT and surcharges exemption orreduction
| VAT and surcharges exemption or reduction | 44,786,595.84 | 10,643.41 |
Financial support funds for enterprisecultivation
| Financial support funds for enterprise cultivation | 39,208,547.00 | 52,042,148.00 |
Amortization of deferred income
| Amortization of deferred income | 20,288,048.89 | 18,704,207.99 |
Special financial funds
| Special financial funds | 11,173,750.00 | 10,005,040.00 |
Performance award of Shanghai HongkouDistrict Finance Bureau
| Performance award of Shanghai Hongkou District Finance Bureau | 4,730,000.00 | 3,010,000.00 |
Special fund for industrial development
| Special fund for industrial development | 2,587,200.00 | 3,626,125.00 |
Job subsidies and social insurancesubsidies
| Job subsidies and social insurance subsidies | 2,499,238.39 | 3,508,713.85 |
Service charge refund
| Service charge refund | 684,354.91 | 541,758.65 |
Training allowance
| Training allowance | 360,600.00 | 706,097.00 |
Intelligent manufacturing, integratedstandardization and new mode application
| Intelligent manufacturing, integrated standardization and new mode application | 6,497,000.00 |
2023 Full Annual Report
projectPatent reward fund
| Patent reward fund | 141,278.00 | 367,040.00 |
Subsidies for R&D investment
| Subsidies for R&D investment | 138,500.00 | 2,788,200.00 |
Other subsidies
| Other subsidies | 1,419,899.88 | 708,703.65 |
Total
| Total | 173,912,473.94 | 148,475,570.29 |
45. Investment income
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period |
long-term equity investment gainsmeasured by employing the equity method
| long-term equity investment gains measured by employing the equity method | -291,055.38 | -826,624.29 |
Investment income from trading financialassets during the holding period
| Investment income from trading financial assets during the holding period | 83,254,470.07 | 99,787,693.44 |
Total
| Total | 82,963,414.69 | 98,961,069.15 |
46. Credit impairment loss
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period |
Loss on bad debts of notes receivable
| Loss on bad debts of notes receivable | 20,343,508.22 | 225,624,086.48 |
Loss on bad debts of accounts receivable
| Loss on bad debts of accounts receivable | -121,260,682.01 | -453,885,249.57 |
Loss on bad debts of other receivables
| Loss on bad debts of other receivables | -1,219,619.60 | 4,146,561.44 |
Total
| Total | -102,136,793.39 | -224,114,601.65 |
47. Assets impairment losses
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period |
I. Inventory falling price loss andimpairment loss of contract performancecosts
| I. Inventory falling price loss and impairment loss of contract performance costs | 8,898,652.01 | -1,666,825.32 |
II. Loss on impairment of goodwill
| II. Loss on impairment of goodwill | -48,350,560.89 | -20,015,733.28 |
III. Other
| III. Other | -31,240,481.09 | -3,315,747.32 |
Total
| Total | -70,692,389.97 | -24,998,305.92 |
48. Income from disposal of assets
Unit: yuan
| Source of income from disposal of assets | Amount incurred in current period | Amount incurred in previous period |
Income from disposal of non-current assets
| Income from disposal of non-current assets | 396,961.78 | 143,437.75 |
Income from disposal of non-current assetsnot classified as held for sale
| Income from disposal of non-current assets not classified as held for sale | 396,961.78 | 143,437.75 |
Including: income from disposal of fixedassets
| Including: income from disposal of fixed assets | 405,470.76 | -113,948.48 |
Income from disposal of right-of-use assets
| Income from disposal of right-of-use assets | -8,508.98 | 257,386.23 |
Income from disposal of non-current assetsin debt restructuring
| Income from disposal of non-current assets in debt restructuring | -1,608,816.48 |
Total
| Total | -1,211,854.70 | 143,437.75 |
49. Non-operating income
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period | Amounts recorded in the non-recurring gains and losses of the current period |
Liquidated damages and fines
| Liquidated damages and fines | 2,361,476.53 | 2,661,012.65 | 2,361,476.53 |
Gain on retirement of non-current assets
| Gain on retirement of non-current assets | 410.00 | 33,060.29 | 410.00 |
2023 Full Annual Report
| Other | 2,380,323.06 | 574,406.11 | 2,380,323.06 |
Total
| Total | 4,742,209.59 | 3,268,479.05 | 4,742,209.59 |
50. Non-operating expenditure
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period | Amounts recorded in the non-recurring gains and losses of the current period |
External donations
| External donations | 5,676,407.70 | 3,734,913.97 | 5,676,407.70 |
Abnormal loss
| Abnormal loss | 239,238.29 | 506,839.36 | 239,238.29 |
Penalty expenditure
| Penalty expenditure | 14,750.00 | 5,300.00 | 14,750.00 |
Loss on damage and scrap ofnon-current assets
| Loss on damage and scrap of non-current assets | 26,133.99 | 63,041.78 | 26,133.99 |
Overdue fines
| Overdue fines | 62,175.03 | 62,175.03 |
Other
| Other | 562,191.28 | 1,033,183.71 | 562,191.28 |
Total
| Total | 6,580,896.29 | 5,343,278.82 | 6,580,896.29 |
51. Income tax expenses
(1) Table of income tax expenses
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period |
Current income tax expenses
| Current income tax expenses | 287,228,463.48 | 253,156,740.77 |
Deferred income tax expenses
| Deferred income tax expenses | -15,775,865.50 | -38,490,586.78 |
Total
| Total | 271,452,597.98 | 214,666,153.99 |
(2) Accounting profit and income tax expense adjustment process
Unit: yuan
| Item | Amount incurred in current period |
Total profit
| Total profit | 1,986,110,044.26 |
Income tax expenses calculated at the appropriate/applicable taxrate
| Income tax expenses calculated at the appropriate/applicable tax rate | 297,916,506.64 |
Impact of different tax rates applied on subsidiaries
| Impact of different tax rates applied on subsidiaries | -3,465,374.20 |
Impact of income tax before adjustment
| Impact of income tax before adjustment | 5,357,429.48 |
Impact of non-deductible costs, expenses and losses
| Impact of non-deductible costs, expenses and losses | 6,577,716.13 |
Impact of deductible losses on the use of deferred income taxassets not previously recognized
| Impact of deductible losses on the use of deferred income tax assets not previously recognized | -374,321.32 |
Impact of temporary difference or deductible losses onunrecognized deferred income tax assets in the current period
| Impact of temporary difference or deductible losses on unrecognized deferred income tax assets in the current period | 14,941,398.18 |
Unrealized internal gains and losses
| Unrealized internal gains and losses | 2,284,592.48 |
Income tax expenses calculated at the appropriate/applicable taxrate
| Income tax expenses calculated at the appropriate/applicable tax rate | 297,916,506.64 |
Tax impact of additional deduction for research and developmentexpenses (express with "-")
| Tax impact of additional deduction for research and development expenses (express with "-") | -51,608,963.73 |
Other
| Other | -176,385.69 |
Income tax expenses
| Income tax expenses | 271,452,597.98 |
52. Cash flow statement items
(1) Cash related to operating activities
Other cash received related to operating activities
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period |
Income from deposit interest
| Income from deposit interest | 147,368,118.86 | 162,232,029.99 |
Government subsidies
| Government subsidies | 94,765,559.58 | 94,665,016.15 |
2023 Full Annual Report
| Agent business | 1,261,456.84 | 1,173,444.43 |
Imprest
| Imprest | 6,208,476.48 | 3,448,325.00 |
Margin and deposit
| Margin and deposit | 20,750,488.76 | 30,208,569.09 |
Other payments
| Other payments | 1,900,700.66 | 10,847,398.64 |
Total
| Total | 272,254,801.18 | 302,574,783.30 |
Other cash paid related to operating activities
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period |
Period charge
| Period charge | 2,813,698,592.70 | 2,472,346,407.79 |
Agent business
| Agent business | 61,222,865.12 | 38,185,746.87 |
Deposit for L/C and acceptance bill
| Deposit for L/C and acceptance bill | 15,438,060.63 | 28,100,235.97 |
Margin and deposit
| Margin and deposit | 8,589,104.00 | 9,124,879.36 |
Imprest
| Imprest | 775,895.75 | 3,431,848.41 |
Other
| Other | 5,751,648.05 | 7,469,204.96 |
Total
| Total | 2,905,476,166.25 | 2,558,658,323.36 |
(2) Cash related to investment activities
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period |
Time deposit
| Time deposit | 4,333,744,300.00 |
Total
| Total | 4,333,744,300.00 |
(3) Cash related to financing activities
Other cash received related to financing activities
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period |
Accounts receivable factoring income
| Accounts receivable factoring income | 13,510,296.65 | 1,012,732.06 |
Total
| Total | 13,510,296.65 | 1,012,732.06 |
Other cash paid related to financing activities
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period |
Factoring refund with recourse
| Factoring refund with recourse | 4,030,091.57 |
Rent
| Rent | 7,123,465.99 | 6,729,745.77 |
Total
| Total | 7,123,465.99 | 10,759,837.34 |
Changes in liabilities arising from financing activities
□ Applicable ? Not applicable
53. Further information on cash flow statement
(1) Further information on cash flow statement
Unit: yuan
| Further information | Current amount | Last term amount |
1. Reconciliation from net profits to cash
flows from operating activities
| 1. Reconciliation from net profits to cash flows from operating activities |
Net profit
| Net profit | 1,714,657,446.28 | 1,558,306,450.30 |
Plus: Provision for impairment of assets
| Plus: Provision for impairment of assets | 70,692,389.97 | 24,998,305.92 |
Depreciation of fixed assets, oil andgas assets and productive biologicalassets
| Depreciation of fixed assets, oil and gas assets and productive biological assets | 157,225,848.23 | 129,112,131.14 |
Depreciation of Right-of-use assets
| Depreciation of Right-of-use assets | 4,975,042.57 | 5,561,093.48 |
Amortization of intangible assets
| Amortization of intangible assets | 13,956,115.18 | 13,484,372.99 |
2023 Full Annual Report
| Amortization of long-term deferred expenses | 16,820,374.13 | 21,378,537.46 |
Loss on disposal of fixed assets,intangible assets and other long-termassets (gains expressed with "-")
| Loss on disposal of fixed assets, intangible assets and other long-term assets (gains expressed with "-") | 1,211,854.70 | -143,437.75 |
Loss on retirement of fixed assets(gains expressed with "-")
| Loss on retirement of fixed assets (gains expressed with "-") | 26,133.99 | 29,981.49 |
Loss from fair value changes (gainsexpressed with "-")
| Loss from fair value changes (gains expressed with "-") |
Financial expenses (gains expressedwith "-")
| Financial expenses (gains expressed with "-") | 7,816,211.50 | 4,582,493.50 |
Investment losses (gains expressedwith "-")
| Investment losses (gains expressed with "-") | -82,963,414.69 | -98,961,069.15 |
Decreased in deferred income taxassets (increase expressed with "-")
| Decreased in deferred income tax assets (increase expressed with "-") | -22,086,495.93 | -54,463,308.92 |
Increase in deferred income taxliabilities (decrease expressed with "-")
| Increase in deferred income tax liabilities (decrease expressed with "-") | 6,310,630.43 | 15,853,171.82 |
Decrease in inventories (increaseexpressed with "-")
| Decrease in inventories (increase expressed with "-") | 94,734,729.87 | 160,454,008.83 |
Decrease in operating receivables(increase expressed with "-")
| Decrease in operating receivables (increase expressed with "-") | 39,094,727.26 | 59,527,120.84 |
Increase in operating payables(decrease expressed with "-")
| Increase in operating payables (decrease expressed with "-") | 267,313,425.83 | -119,048,149.58 |
Other
| Other | 102,136,793.39 | 224,114,601.65 |
Net cash flow from operating activities
| Net cash flow from operating activities | 2,391,921,812.71 | 1,944,786,304.02 |
2. Significant investment and financing
activities not involving cash depositand withdrawal
| 2. Significant investment and financing activities not involving cash deposit and withdrawal |
Conversion of debt into capital
| Conversion of debt into capital |
Convertible bonds due within one year
| Convertible bonds due within one year |
Fixed assets under financing lease
| Fixed assets under financing lease |
3. Net changes in cash and cash
equivalents:
| 3. Net changes in cash and cash equivalents: |
Ending balance of cash
| Ending balance of cash | 1,878,166,358.09 | 5,196,414,341.74 |
Minus: Beginning balance of cash
| Minus: Beginning balance of cash | 5,196,414,341.74 | 3,719,988,820.35 |
Plus: Beginning balance of cashequivalents
| Plus: Beginning balance of cash equivalents |
Minus: Ending balance of cashequivalents
| Minus: Ending balance of cash equivalents |
Net increase of cash and cash equivalents
| Net increase of cash and cash equivalents | -3,318,247,983.65 | 1,476,425,521.39 |
(2) Composition of cash and cash equivalents
Unit: yuan
| Item | Ending balance | Beginning balance |
I. Cash
| I. Cash | 1,878,166,358.09 | 5,196,414,341.74 |
Including: cash on hand
| Including: cash on hand | 62,267.64 | 85,806.05 |
Bank deposit readily available forpayment
| Bank deposit readily available for payment | 1,877,703,911.46 | 5,194,874,841.18 |
Other monetary capital readily availablefor payment
| Other monetary capital readily available for payment | 400,178.99 | 1,453,694.51 |
III. Balance of cash and cash equivalents atthe beginning of the period
| III. Balance of cash and cash equivalents at the beginning of the period | 1,878,166,358.09 | 5,196,414,341.74 |
2023 Full Annual Report
54. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: yuan
| Item | Ending balance in foreign currency | Conversion exchange rate | Ending balance converted to RMB |
Monetary capital
| Monetary capital |
Including: USD
| Including: USD | 1,756,700.54 | 7.0827 | 12,442,182.91 |
EUR
| EUR | 1,669.52 | 7.8592 | 13,121.09 |
HKD
| HKD |
AUD
| AUD | 858.81 | 4.8484 | 4,163.85 |
Accounts receivable
| Accounts receivable |
Including: USD
| Including: USD | 4,336,447.28 | 7.0827 | 30,713,755.15 |
EUR
| EUR |
HKD
| HKD |
AUD
| AUD | 30.00 | 4.8484 | 145.45 |
Long-term borrowing
| Long-term borrowing |
Including: USD
| Including: USD |
EUR
| EUR |
HKD
| HKD |
(2) Description of overseas operating entities, including disclosure of main place of business overseas,
bookkeeping currency and selection basis for important overseas operating entities, and disclosureof the reasons for any change in the bookkeeping currency.
□ Applicable ? Not applicable
VIII. R&D Expenditure
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period |
| Total | 387,368,591.97 | 391,614,805.38 |
| Including: Expensed R&D expenditure | 387,368,591.97 | 391,614,805.38 |
IX. Consolidation Scope Changes
1. Change of merger scope for other reasons
Explain the changes in the scope of combination caused by other reasons (such as the establishment of new subsidiaries,liquidation of subsidiaries, etc.) and relevant information:
On May 29, 2023, the Company invested in the establishment of ROBAM Appliances (Hong Kong) Holdings Limited, with aregistered capital of US$500,000 and a shareholding ratio of 100%. The scope of business is asset and investment management,and the registered capital has been paid up. As of the end of the reporting period, it is in the preparatory period and has not yetbeen actually operated.On June 7, 2023, ROBAM Appliances (Hong Kong) Holdings Limited, a subsidiary of the Company, invested in the establishmentof ROBAM International (Hong Kong) Trading Co., Ltd., with a registered capital of US$500,000 and a shareholding ratio of100%, which is mainly engaged in the sales of the Company's kitchen appliance products. Currently, its registered capital of thecompany has not been fully paid up, and as of the end of the reporting period, it is in the preparatory period and has not yet beenactually operated.
2023 Full Annual Report
X. Interests in Other Entities
1. Interests in a subsidiary
(1) Composition of enterprise group
Unit: yuan
| Subsidiary name | Registered capital | Main operation site | Registration place | Business nature | Shareholding ratio | Way of obtaining | |
| Direct | Indirect | ||||||
Beijing ROBAMElectric ApplianceSales Co., Ltd.
| Beijing ROBAM Electric Appliance Sales Co., Ltd. | 5,000,000.00 | Beijing | Beijing | Sales of kitchen appliance products | 100.00% | Business combination under common control |
Shanghai ROBAMElectric ApplianceSales Co., Ltd.
| Shanghai ROBAM Electric Appliance Sales Co., Ltd. | 5,000,000.00 | Shanghai | Shanghai | Sales of kitchen appliance products | 100.00% | Business combination under common control |
Hangzhou MingqiElectric Co., Ltd.
| Hangzhou Mingqi Electric Co., Ltd. | 50,000,000.00 | Hangzhou | Hangzhou | Sales of kitchen appliance products | 100.00% | Acquisition by establishment |
Dize HomeAppliances Trading(Shanghai) Co., Ltd.
| Dize Home Appliances Trading (Shanghai) Co., Ltd. | 80,000,000.00 | Shanghai | Shanghai | Sales of kitchen appliance products | 51.00% | Acquisition by establishment |
Shengzhou KindeIntelligent KitchenElectric Co., Ltd.
| Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. | 32,653,061.00 | Shengzhou | Shengzhou | Production and sales of kitchen appliance products | 51.00% | Business combination not under common control |
Hangzhou ROBAMFuchuang InvestmentManagement Co., Ltd.
| Hangzhou ROBAM Fuchuang Investment Management Co., Ltd. | 10,000,000.00 | Hangzhou | Hangzhou | Assets and investment management | 100.00% | Acquisition by establishment |
Zhejiang CookingFuture TechnologyCo., Ltd.
| Zhejiang Cooking Future Technology Co., Ltd. | 50,000,000.00 | Shengzhou | Shengzhou | Intelligent kitchen design | 32.13% | Acquisition by establishment |
Hangzhou JinheElectric Appliances
Co., Ltd
| Hangzhou Jinhe Electric Appliances Co., Ltd | 10,000,000.00 | Hangzhou | Hangzhou | Sales of kitchen appliance products | 100.00% | Acquisition by establishment |
ROBAM Appliances
(Hong Kong)
Holdings Limited
| ROBAM Appliances (Hong Kong) Holdings Limited | 500,000.00 | Hong Kong | Hong Kong | Assets and investment management | 100.00% | Acquisition by establishment |
ROBAM International(Hong Kong) Trading
Co., Ltd.
| ROBAM International (Hong Kong) Trading Co., Ltd. | 0.00 | Hong Kong | Hong Kong | International trade of kitchen appliance products | 100.00% | Acquisition by establishment |
Unit: yuanDifference between the shareholding ratio and the voting right ratio in the subsidiary:
The basis that the Company holds half or less of the voting rights of Zhejiang Cooking Future Technology Co., Ltd., but stillcontrols Zhejiang Cooking Future Technology Co., Ltd. basis: since the Company forms a control relationship with ShengzhouKinde, it also forms a control relationship with its holding subsidiary Zhejiang Cooking Future Technology Co., Ltd.On January 6, 2022, the Company's subsidiary, Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. signed the Equity TransferContract with Gongqingcheng Binglan Investment Partnership (limited partnership) , to stipulate that Shengzhou Kinde IntelligentKitchen Electric Co., Ltd. will transfer the subscribed 7% equity of Zhejiang Cooking Future Technology Co., Ltd. toGongqingcheng Binglan Investment Partnership (limited partnership) to change its shareholding ratio from 70% to 63%, andchange the shareholding ratio of the Company from 35.70% to 32.13%.
(2) Important non-wholly owned subsidiary
Unit: yuan
| Subsidiary name | Minority shareholding ratio | Current profits and losses attributable to minority shareholders | Current dividends declared to minority shareholders | Ending balance of minority equity |
Shengzhou KindeIntelligent KitchenElectric Co., Ltd.
| Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. | 49.00% | -13,460,789.98 | 101,499,182.34 |
Zhejiang Cooking Future
| Zhejiang Cooking Future | 37.00% | -4,671,095.87 | 6,158,133.91 |
2023 Full Annual Report
Technology Co., Ltd.
(3) Main financial information of important non-wholly owned subsidiaries
Unit: yuan
| Subsidiary name | 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 | |
Shengzhou KindeIntelligent KitchenElectric Co., Ltd.
| Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. | 109,441,329.81 | 341,074,155.13 | 450,515,484.94 | 188,644,246.55 | 41,769,390.83 | 230,413,637.38 | 152,256,797.00 | 348,855,702.41 | 501,112,499.41 | 203,576,227.80 | 45,292,175.50 | 248,868,403.30 |
Zhejiang CookingFutureTechnology Co.,Ltd.
| Zhejiang Cooking Future Technology Co., Ltd. | 17,730,954.22 | 7,438,578.53 | 25,169,532.75 | 8,525,927.58 | 8,525,927.58 | 25,723,850.48 | 6,669,996.33 | 32,393,846.81 | 3,125,658.21 | 3,125,658.21 |
Unit: yuan
| Subsidiary name | Amount incurred in current period | Amount incurred in previous period | ||||||
| Operating income | Net profit | Total comprehensive income | Cash flow from financing activities | Operating income | Net profit | Total comprehensive income | Cash flow from financing activities | |
Shengzhou KindeIntelligent KitchenElectric Co., Ltd.
| Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. | 148,506,855.32 | -32,142,248.55 | -32,142,248.55 | -44,183,591.86 | 170,999,666.69 | -24,500,532.58 | -24,500,532.58 | -53,403,723.94 |
Zhejiang CookingFuture TechnologyCo., Ltd.
| Zhejiang Cooking Future Technology Co., Ltd. | 10,310,628.73 | -12,624,583.43 | -12,624,583.43 | -16,944,395.45 | 1,291,219.22 | -11,092,961.31 | -11,092,961.31 | -19,686,152.21 |
2. Equity in joint venture arrangement or joint venture
(1) Summary of financial information of unimportant cooperative enterprises and joint ventures
Unit: yuan
| Ending balance/amount incurred in current period | Beginning balance/amount incurred in previous period |
Cooperative enterprise:
| Cooperative enterprise: |
Total book value of investment
| Total book value of investment | 4,321,729.39 | 3,824,460.03 |
Total number of following items byshareholding ratio
| Total number of following items by shareholding ratio |
- Net profit
| - Net profit | 497,269.36 | 162,760.00 |
- Total comprehensive income
| - Total comprehensive income | 497,269.36 | 162,760.00 |
Joint venture:
| Joint venture: |
Total book value of investment
| Total book value of investment | 4,105,720.85 | 4,894,045.59 |
Total number of following items byshareholding ratio
| Total number of following items by shareholding ratio |
- Net profit
| - Net profit | -788,324.74 | -989,384.29 |
- Total comprehensive income
| - Total comprehensive income | -788,324.74 | -989,384.29 |
| Name of cooperative enterprise and joint venture | Main operation site | Registration place | Business nature | Shareholding ratio (%) | Accounting treatment method of investment in cooperative enterprises and joint ventures |
| Direct | Indirect |
De Dietrich Trade(Shanghai) Co., Ltd.
| De Dietrich Trade (Shanghai) Co., Ltd. | Shanghai | Shanghai | Sales of kitchen appliances | 51.00 | Equity method |
Zhejiang TingshuoBrand OperationManagement Co.,
| Zhejiang Tingshuo Brand Operation Management Co., | Hangzhou | Hangzhou | Retail industry | 40.00 | Equity method |
2023 Full Annual Report
Ltd.Shaoxing ShuaigeKitchen andBathroomTechnology Co., Ltd.
| Shaoxing Shuaige Kitchen and Bathroom Technology Co., Ltd. | Shaoxing City | Shaoxing City | Manufacture of kitchen appliances | 40.00 | Equity method |
XI. Government Subsidies
1. Government subsidies recognized in accounts receivable at the end of the reporting period
□ Applicable ? Not applicable
Reasons for a failure of receiving the expected amount of government subsidies at the expected time point
□ Applicable ? Not applicable
2. Liabilities involving government subsidies
? Applicable □ Not applicable
Unit: yuan
| Accounting subject | Beginning balance | Amount of additional subsidy in current period | Amount included in current non-operating income | Amount transferred to other income in current period | Other changes in current period | Ending balance | Asset/income related |
Deferredincome
| Deferred income | 123,912,110.43 | 32,914,193.20 | 20,288,048.89 | 136,538,254.74 | Asset related |
Total
| Total | 123,912,110.43 | 32,914,193.20 | 20,288,048.89 | 136,538,254.74 |
3. Government subsidies included in current profit and loss
? Applicable □ Not applicable
Unit: yuan
| Accounting subject | Amount incurred in current period | Amount incurred in previous period |
Other income
| Other income | 173,912,473.94 | 148,475,570.29 |
Other description:
XII. Risks Associated with Financial Instruments
1. Various types of risks arising from financial instruments
The main financial instruments of the Company include accounts receivable, accounts payable, etc. The detailed description of thefinancial instruments is shown in Note VI. The risks associated with these financial instruments and the risk management policiesadopted by the Company to mitigate these risks are described below. The management of the Company shall manage and monitorthese risk exposures to ensure that the above risks are controlled within the limited scope.
1. The Company's various risk management objectives and policies are as follows:
The Company's risk management is to strike an appropriate balance between risks and benefits, minimize the negative impact ofrisks on the Company's business performance and maximize the interests of shareholders and other equity investors. Based on thisrisk management objective, the basic strategy of the Company's risk management is to determine and analyze various risks facedby the Company, establish an appropriate bottom line for risk tolerance, make risk management and timely and reliably supervisevarious risks to control the risks within the limited scope.
? Market risk - price riskThe Company sells the products at market prices and are therefore subject to fluctuations in these prices.? Credit riskThe largest credit risk exposure that may cause financial losses of the Company on December 31, 2023 mainly comes from theloss of financial assets of the Company caused by the failure of the other party to fulfill its obligations, including the book value offinancial assets recognized in the consolidated balance sheet.In order to reduce credit risks, the Company shall assign special personnel to determine the credit limit, conduct credit
2023 Full Annual Report
examination and approval, and implement other monitoring procedures to ensure that necessary measures are taken to recoveroverdue claims. Moreover, the Company shall review the recovery of each single receivable on each balance sheet date to ensurethat adequate bad debt provisions are withdrawn for unrecoverable amounts. Therefore, the Company's management believes thatthe Company's credit risk has been greatly reduced.The Company's working capital is deposited in banks with high credit rating, so the credit risk of working capital is low.There is no significant credit concentration risk due to the Company's risk exposure to multiple parties and customers.The Company has adopted the necessary policies to ensure that all sales customers have good credit records. The Company has nosignificant credit concentration risk.Total amount of the top 5 accounts receivable: RMB 1,345,949,178.24.Total amount of the top 5 other receivables: RMB 29,443,835.51.? Liquidity risk:
The risk that the Company is unable to perform its financial obligations at maturity. The Company manages its liquidity risk byensuring that it has sufficient liquidity to meet maturing obligations without causing unacceptable losses or damage to thecredibility of the business. The management of the Company has conducted a detailed inspection on the working capital of theCompany and regularly analyzed the debt structure, term and bank line of credit to ensure sufficient funds. The conclusion is thatthe Company has sufficient funds to meet the needs of the Company's short-term debts and capital expenditures. The financialassets and financial liabilities held by the Company are analyzed as follows according to the maturity of undiscounted remainingcontractual obligations:
Amount on December 31, 2023:
| Item | Within one year | One to two years | Two to five years | More than five years | Total |
Financial assets
| Financial assets |
Monetary capital
| Monetary capital | 1,985,050,745.11 | 1,985,050,745.11 |
Trading financialassets
| Trading financial assets | 2,730,000,000.00 | 2,730,000,000.00 |
Notes receivable
| Notes receivable | 696,284,931.64 | 696,284,931.64 |
Accountsreceivable
| Accounts receivable | 1,810,015,596.33 | 1,810,015,596.33 |
Other receivables
| Other receivables | 53,368,667.34 | 53,368,667.34 |
Other current assets
| Other current assets | 2,644,890,957.65 | 2,644,890,957.65 |
Other non-currentfinancial assets
| Other non-current financial assets | 480,000,000.00 | 480,000,000.00 |
Other non-currentassets
| Other non-current assets | 1,400,000,000.00 | 370,000,000.00 | 1,770,000,000.00 |
Financialliabilities
| Financial liabilities |
Short-termborrowing
| Short-term borrowing | 95,003,320.70 | 95,003,320.70 |
Notes payable
| Notes payable | 1,098,720,000.58 | 1,098,720,000.58 |
Accounts payable
| Accounts payable | 2,548,743,762.06 | 2,548,743,762.06 |
Other payables
| Other payables | 283,917,461.76 | 283,917,461.76 |
Payroll payable
| Payroll payable | 177,923,042.01 | 177,923,042.01 |
Other currentliabilities
| Other current liabilities | 118,041,351.23 | 118,041,351.23 |
Non-currentliabilities duewithin a year
| Non-current liabilities due within a year | 4,522,658.42 | 4,522,658.42 |
Lease liabilities
| Lease liabilities | 1,570,819.57 | 5,628,481.00 | 3,551,492.33 | 10,750,792.90 |
? Sensitivity analysis of foreign exchange risk
The Company's exchange rate risk is mainly related to US dollar, Euro, Australian dollar and other currencies. The foreign
2023 Full Annual Report
exchange risk borne by the Company is mainly related to USD (which shall be modified according to the actual situation), and themain business activities of the Company are denominated and settled in RMB. As of December 31, 2023, the Company's assetsand liabilities were RMB balance, except the foreign currency balance of the assets and liabilities in Note "VI. Foreign currencymonetary items". The foreign exchange risks arising from the assets and liabilities of such foreign currency balance may have animpact on the Company's business performance.The Company pays close attention to the exchange rate movement on its foreign exchange risks, and has not taken any measures toavoid foreign exchange risks.XIII. Fair Value Disclosure
1. Ending fair value of assets and liabilities measured with fair value
Unit: yuan
| Item | Ending fair value | |||
| Measurement of fair value at the first level | Measurement of fair value at the second level | Measurement of fair value at the third level | Total | |
I. Continuous fair valuemeasurement
| I. Continuous fair value measurement | -- | -- | -- | -- |
(I) Trading financialassets
| (I) Trading financial assets | 2,730,000,000.00 | 2,730,000,000.00 |
1. Financial assets
measured with fairvalue and with thechanges included incurrent profit andloss
| 1. Financial assets measured with fair value and with the changes included in current profit and loss | 2,730,000,000.00 | 2,730,000,000.00 |
(2) Equity instrument
investments
| (2) Equity instrument investments | 2,116,023.22 | 2,116,023.22 |
Other non-currentfinancial assets
| Other non-current financial assets | 480,000,000.00 | 480,000,000.00 |
Total assets continuouslymeasured at fair value
| Total assets continuously measured at fair value | 3,212,116,023.22 | 3,212,116,023.22 |
II. Non-continuous fairvalue measurement
| II. Non-continuous fair value measurement | -- | -- | -- | -- |
2. Continuous and non-continuous measurement items of fair value at first level and recognition basisfor market price
3. Continuous and non-continuous measurement items of fair value at second level, qualitative and
quantitative information on valuation techniques adopted and important parameters
4. Continuous and non-continuous measurement items of fair value at third level, qualitative andquantitative information on valuation techniques adopted and important parameters
| Item | December 31, 2023 Fair value | Valuation technique | Significant unobservable value | Relationship between unobservable value and fair value |
| Financial products | 3,210,000,000.00 | Best estimate of fair value | Investment cost | — |
| Other equity instrument investments | 2,116,023.22 | Best estimate of fair value | Investment cost | — |
XIV. Related Parties and Related Transactions
1. Parent company of the Company
| Parent company name | Registration place | Business nature | Registered capital | Shareholding ratio of the parent company in the Company | Voting right ratio of the parent company in the Company |
Hangzhou Robam
| Hangzhou Robam | Hangzhou, Zhejiang | Investment and | RMB 60 million | 49.68% | 49.68% |
2023 Full Annual Report
| Industrial Group Co., Ltd. | industrial management |
Description of the parent company of the CompanyThe ultimate controlling party of the Company is Ren Jianhua.
2. Subsidiaries of the Company
See Note X.1 for details of the Company's subsidiaries.
3. Cooperative enterprises and joint ventures
See Note X.2 for important cooperative enterprises or joint ventures of the Company.Other cooperative enterprises or joint ventures that made related party transactions with the Company in the current period, orformed the balance of related party transactions with the Company in the previous periods are as follows:
| Name of cooperative enterprise or joint venture | Relationship with the Company |
Hangzhou Amblem Kitchenware Co., Ltd.
| Hangzhou Amblem Kitchenware Co., Ltd. | Controlled by the same final controller |
Hangzhou ROBAM Gas Station Co., Ltd.
| Hangzhou ROBAM Gas Station Co., Ltd. | Controlled by the same final controller |
Hangzhou Nbond Nonwoven Co., Ltd.
| Hangzhou Nbond Nonwoven Co., Ltd. | Controlled by the same final controller |
Hangzhou Yuhang Matt Spray Painting Factory
| Hangzhou Yuhang Matt Spray Painting Factory | Other related parties |
Garden Hotel Hangzhou
| Garden Hotel Hangzhou | Other related parties |
Hangzhou Bonyee Daily Necessity Technology Co., Ltd.
| Hangzhou Bonyee Daily Necessity Technology Co., Ltd. | Controlled by the same final controller |
Shaoxing Kinde Electric Appliance Co., Ltd.
| Shaoxing Kinde Electric Appliance Co., Ltd. | Other related parties |
Hangzhou Guoguang Touring Commodity Co., Ltd.
| Hangzhou Guoguang Touring Commodity Co., Ltd. | Controlled by the same final controller |
Hangzhou Seazons Health Care Products Co., Ltd.
| Hangzhou Seazons Health Care Products Co., Ltd. | Controlled by the same final controller |
Hangzhou Linping ROBAM Charity Foundation
| Hangzhou Linping ROBAM Charity Foundation | Other related parties |
Hangzhou Runqun Hardware Co., Ltd.
| Hangzhou Runqun Hardware Co., Ltd. | Other related parties |
4. Related transaction
(1) Related transaction of purchases and sales of goods, provision and acceptance of servicesPurchase of goods/acceptance of services
Unit: yuan
| Related party | Related transaction content | Amount incurred in current period | Approved transaction quota | Whether the transaction quota is exceeded | Amount incurred in previous period |
Hangzhou AmblemKitchenware Co.,Ltd.
| Hangzhou Amblem Kitchenware Co., Ltd. | Product purchase | 2,800,166.35 | No | 28,302,583.22 |
Hangzhou YuhangMatt Spray PaintingFactory
| Hangzhou Yuhang Matt Spray Painting Factory | Labor receiving | 805,737.87 | No | 9,589,975.85 |
Hangzhou SeazonsHealth CareProducts Co., Ltd.
| Hangzhou Seazons Health Care Products Co., Ltd. | Product purchase | 2,148,302.12 | No | 2,704,152.47 |
Hangzhou NbondNonwoven Co., Ltd.
| Hangzhou Nbond Nonwoven Co., Ltd. | Product purchase | 100,617.26 | No | 95,302.65 |
HangzhouGuoguang TouringCommodity Co.,Ltd.
| Hangzhou Guoguang Touring Commodity Co., Ltd. | Product purchase | 22,643.45 | No | 106,473.99 |
Hangzhou BonyeeDaily NecessityTechnology Co.,Ltd.
| Hangzhou Bonyee Daily Necessity Technology Co., Ltd. | Product purchase | 27,036.46 | No | 8,728.42 |
Shaoxing ShuaigeKitchen andBathroom
| Shaoxing Shuaige Kitchen and Bathroom | Product purchase | 26,672.57 | No | 1,983,294.00 |
2023 Full Annual Report
Technology Co.,Ltd.Hangzhou ROBAMGas Station Co.,Ltd.
| Hangzhou ROBAM Gas Station Co., Ltd. | Product purchase | 1,052,126.35 | No | 995,343.75 |
Hangzhou RunqunHardware Co., Ltd.
| Hangzhou Runqun Hardware Co., Ltd. | Product purchase | 10,698,089.17 | No |
Zhejiang TingshuoBrand OperationManagement Co.,Ltd.
| Zhejiang Tingshuo Brand Operation Management Co., Ltd. | Labor receiving | No | 400,760.00 |
Selling commodities/offering labor
Unit: yuan
| Related party | Related transaction content | Amount incurred in current period | Amount incurred in previous period |
Hangzhou AmblemKitchenware Co., Ltd.
| Hangzhou Amblem Kitchenware Co., Ltd. | Selling goods | 3,531,669.93 | 5,814,674.29 |
Hangzhou Linping ROBAMCharity Foundation
| Hangzhou Linping ROBAM Charity Foundation | Selling goods | 4,809,131.50 | 3,914,955.70 |
De Dietrich Trade (Shanghai)Co., Ltd.
| De Dietrich Trade (Shanghai) Co., Ltd. | Selling goods | 930,819.37 | 1,326,580.82 |
Hangzhou Nbond NonwovenCo., Ltd.
| Hangzhou Nbond Nonwoven Co., Ltd. | Selling goods | 20,202.78 | 10,746.90 |
Hangzhou Runqun HardwareCo., Ltd.
| Hangzhou Runqun Hardware Co., Ltd. | Selling goods | 30,097.35 |
(2) Related-party lease
The Company as the lessor:
Unit: yuan
| Name of lessee | Type of leased assets | Lease income recognized in the current period | Lease income recognized in the previous period |
Hangzhou Robam IndustrialGroup Co., Ltd.
| Hangzhou Robam Industrial Group Co., Ltd. | House | 28,800.00 | 28,800.00 |
The Company as the lessee:
Unit: yuan
| Name of lessor | Type of leased assets | Simplified treatment of rental costs for short-term lease and low-value asset lease (if applicable) | Variable lease payments not included in the measurement of lease liabilities (if applicable) | Rent paid | Interest expenses incurred on lease liabilities | Increased right-of-use assets | |||||
| Amount incurred in current period | Amount incurred in previous period | Amount incurred in current period | Amount incurred in previous period | Amount incurred in current period | Amount incurred in previous period | Amount incurred in current period | Amount incurred in previous period | Amount incurred in current period | Amount incurred in previous period | ||
HangzhouRobam IndustrialGroup Co., Ltd.
| Hangzhou Robam Industrial Group Co., Ltd. | House | 550,024.57 | 550,024.57 |
2023 Full Annual Report
5. Accounts receivable and payable by related parties
(1) Receivables
Unit: yuan
| Item name | Related party | Ending balance | Beginning balance | ||
| Book balance | Provision for bad debt | Book balance | Provision for bad debt | ||
Accounts receivable
| Accounts receivable | De Dietrich Trade (Shanghai) Co., Ltd. | 1,051,825.87 |
Accounts receivable
| Accounts receivable | Hangzhou Amblem Kitchenware Co., Ltd. | 1,432,274.00 |
Advance to supplier
| Advance to supplier | Hangzhou Seazons Health Care Products Co., Ltd. | 3,769.89 |
Total
| Total | 1,051,825.87 | 1,436,043.89 |
(2) Payables
Unit: yuan
| Item name | Related party | Ending book balance | Beginning book balance |
Accounts payable
| Accounts payable | Hangzhou Yuhang Matt Spray Painting Factory | 3,043,849.87 |
Accounts payable
| Accounts payable | Hangzhou ROBAM Gas Station Co., Ltd. | 3,736,997.95 | 2,548,095.18 |
Accounts payable
| Accounts payable | Hangzhou Guoguang Touring Commodity Co., Ltd. | 6,963.19 |
Accounts payable
| Accounts payable | Hangzhou Amblem Kitchenware Co., Ltd. | 1,366,001.27 | 4,386,391.83 |
Accounts payable
| Accounts payable | Shaoxing Shuaige Kitchen and Bathroom Technology Co., Ltd. | 298,021.70 |
Accounts payable
| Accounts payable | Hangzhou Runqun Hardware Co., Ltd. | 4,936,378.35 |
Other payables
| Other payables | Hangzhou Amblem Kitchenware Co., Ltd. | 5,000.00 |
Other payables
| Other payables | Hangzhou Runqun Hardware Co., Ltd. | 200,000.00 |
Other payables
| Other payables | Hangzhou Yuhang Matt Spray Painting Factory | 200,000.00 |
Other payables
| Other payables | Hangzhou Guoguang Touring Commodity Co., Ltd. | 2,000.00 | 2,000.00 |
Total
| Total | 10,246,377.57 | 10,485,321.77 |
XV. Share-based Payment
1. Overall status of share-based payment
? Applicable □ Not applicable
Unit: yuan
| Granted to | Granted in current period | Exercised in current period | Unlocked in current period | Invalidated in current period | ||||
| Quantity | Amount | Quantity | Amount | Quantity | Amount | Quantity | Amount | |
Management
| Management | 5,520,000 | 27,577,900.00 | 4,319,000 | 10,340,400.00 |
Total
| Total | 5,520,000 | 27,577,900.00 | 4,319,000 | 10,340,400.00 |
2. Equity-settled share-based payments
? Applicable □ Not applicable
2023 Full Annual Report
Unit: yuan
| Method for determining the fair value of equity instruments on the grant date | The Company evaluates the fair value of the stock options with the internationally recognized BlackScholes option pricing model |
Important parameters of the fair value of equity instruments onthe grant date
| Important parameters of the fair value of equity instruments on the grant date | Optimum estimation for the number of equity instruments with exercisable rights |
Basis for the determination of the number of equity instrumentswith exercisable rights
| Basis for the determination of the number of equity instruments with exercisable rights | N/A |
Reasons for significant differences between the current estimateand the previous estimate
| Reasons for significant differences between the current estimate and the previous estimate | N/A |
Accumulated amount of equity-settled share-based paymentsrecorded in capital reserves
| Accumulated amount of equity-settled share-based payments recorded in capital reserves | 9,634,774.60 |
Total amount of expenses recognized by equity-settled share-based payments in current period
| Total amount of expenses recognized by equity-settled share-based payments in current period | 1,780,548.64 |
3. Share-based payments in current period
? Applicable □ Not applicable
Unit: yuan
| Granted to | Equity-settled share-based payments | Cash-settled share-based payment |
Management
| Management | 1,780,548.64 |
Total
| Total | 1,780,548.64 |
XVI. Commitment and Contingencies
1. Important commitment issues
Important commitments on balance sheet date
1. Investment commitments to subsidiaries and associated companies
The Company has committed to invest RMB 4 million in Zhejiang Tingshuo Brand Operation Management Co., Ltd., anassociated company of the Company. At present, RMB 2 million has been paid in, accounting for 40% of the equity, and RMB 2million has not been paid.Except for the above commitment, the Company has no other major commitments.
2. Contingencies
(1) Important contingencies on balance sheet date
The Company had no significant contingencies to be disclosed as of December 31, 2023.
(2) Explanation even if the Company has no important contingencies to be disclosedThe Company has no important contingencies to be disclosed.XVII. Post-balance Sheet Events
1. Important non-adjustment items
Unit: yuan
| Item | Contents | Impact on financial condition and operating results | Reasons for inability to estimate impact |
Issuance of stocksand bonds
| Issuance of stocks and bonds | On April 24, 2024, the 5th meeting of the sixth Board of Directors of the Company deliberated and approved the Company's Proposal on 2024 Stock Option Incentive Plan (draft) of the Company and its Abstract. The incentive plan mainly takes the operating income from 2024 to 2026 as the performance evaluation target, and provides stock option incentive to middle management and core technology (business) backbones working in the Company (including subsidiaries). The proposal still shall be subject to the deliberation and approval by the Company's annual general meeting of shareholders in 2023. |
2023 Full Annual Report
| Item | Contents | Impact on financial condition and operating results | Reasons for inability to estimate impact |
Important foreigninvestment
| Important foreign investment | 1. On January 26, 2024, the General Manager's Office passed the following resolutions: ROBAM Appliances (Hong Kong) Holdings Limited will hold 100% of the newly established Robam Appliances US Holding INC. with a registered capital of US$ 5,000; The newly established ROBAM Appliances (Angeles) Trading Co., Ltd., which is held by Robam Appliances US Holding INC. and WGSZ HOLDING LLC with ownership of 70% and 30% respectively, has a registered capital of US$ 10,000, and is mainly engaged in the sales of large household kitchen appliances. On January 29, 2024, Robam Appliances US Holding INC was formally established with a registration certificate at 8 The Green, Ste A, Dover DE 19901. 2. On March 11, 2024, the General Manager's Office passed the resolution of establishing a subsidiary in Chengdu. On March 27, 2024, Chengdu ROBAM Innovation Technology Co., Ltd. was established with a registered capital of RMB 5,000,000, social unified credit code: of 91510100MADF89W069, legal representative of Ge Hao, and registered address of No. 2902, 2903 and 2904, Block A, No. 500, middle section of Tianfu Avenue, Chengdu Hi-tech Zone, China (Sichuan) Pilot Free Trade Zone. It is mainly engaged in technology development and services. |
Important debtrestructuring
| Important debt restructuring | As of the reporting date, the newly signed accounts receivable debt repayment agreement of the Company amounted to RMB 120,903,600, including RMB 7,210,100 for which online signing and delivery procedures have been completed; The amount of debt repayment agreement entered into in 2023 and earlier for which online signing and delivery procedures have been completed between the balance sheet date and the reporting date is RMB 5,269,000. |
2. Profit distribution
| Dividend to be distributed for every 10 shares (yuan) | 5 |
Bonus shares to be distributed for every 10 shares (shares)
| Bonus shares to be distributed for every 10 shares (shares) | 0 |
Increase shares to be distributed for every 10 shares (shares)
| Increase shares to be distributed for every 10 shares (shares) | 0 |
Dividend declared for every 10 shares after deliberation andapproval (yuan)
| Dividend declared for every 10 shares after deliberation and approval (yuan) | 472,047,458.00 |
Bonus shares declared for every 10 shares after deliberation andapproval (shares)
| Bonus shares declared for every 10 shares after deliberation and approval (shares) | 0 |
Increase shares declared for every 10 shares after deliberation andapproval (shares)
| Increase shares declared for every 10 shares after deliberation and approval (shares) | 0 |
Profit distribution scheme
| Profit distribution scheme | On April 24, 2024, according to the Proposal on 2023 Annual Profit Distribution Plan deliberated and adopted by the 5th meeting of the sixth Board of Directors of the Company, based on the total share capital of 944,094,916 (the existing total share capital is 949,024,050 shares, excluding the repurchased 4,929,134 shares), the Company intends to pay a cash dividend of RMB 5 (tax inclusive) per 10 shares to all shareholders, for a total of RMB 472,047,458.00. The proposal still shall be subject to the deliberation and approval by the Company's annual general meeting of shareholders in 2023. |
2023 Full Annual Report
XVIII. Other Important Matters
1. Debt restructuring matters
As of December 31, 2023, the Company has signed the following project mortgage property agreementsand completed the online signing procedures of the property as follows:
| Item | Amount of debt agreement signed | Including: Amount of those completing the online signing and delivery procedures | Amount of those not completing the online signing or delivery procedures |
| Real estate customers (45) | 438,424,074.19 | 113,254,178.18 | 325,169,896.01 |
| Total | 438,424,074.19 | 113,254,178.18 | 325,169,896.01 |
The total amount of accounts receivable involved in the project mortgage property agreements signed between the Company andthe aforementioned real estate customers is RMB 438,424,100, of which RMB 113,254,200 has been completed with onlinesigning and delivery procedures, the recognition of claims receivable of which has been terminated. The fair value of themortgaged property at the time of debt restructuring is reported in other non-current assets. The fair value of the property is RMB118,637,900, which was confirmed through public market inquiry. The Company pays the difference of RMB 5,383,700 in cash,the debt restructuring matters do not generate any restructuring gains or losses at the time of restructuring; The remaining RMB325,169,900 has not yet been completed with online registration of the house and the Company has not terminated the recognitionof claims receivable, and make the provision for bad debts based on an expected credit loss rate of 35%.XIX. Notes on Main Items of Parent Company's Financial Statement
1. Accounts receivable
(1) Disclosure by aging
Unit: yuan
| Aging | Ending book balance | Beginning book balance |
Within 1 year (including 1 year)
| Within 1 year (including 1 year) | 1,489,994,730.67 | 1,304,372,596.67 |
1 to 2 years
| 1 to 2 years | 472,477,129.39 | 1,288,794,867.92 |
2 to 3 years
| 2 to 3 years | 885,752,898.72 | 51,406,707.51 |
More than 3 years
| More than 3 years | 45,010,462.60 | 12,311,962.78 |
3 to 4 years
| 3 to 4 years | 34,537,581.13 | 7,674,961.53 |
4 to 5 years
| 4 to 5 years | 6,215,681.25 | 3,585,776.77 |
More than 5 years
| More than 5 years | 4,257,200.22 | 1,051,224.48 |
Total
| Total | 2,893,235,221.38 | 2,656,886,134.88 |
(2) Classified disclosure by bad debt provision method
Unit: yuan
| Category | Ending balance | Beginning balance | ||||||||
| Book balance | Provision for bad debt | Book value | Book balance | Provision for bad debt | Book value | |||||
| Amount | Proportion | Amount | Accruing proportion | Amount | Proportion | Amount | Accruing proportion | |||
Accountsreceivable ofprovision forbad debt bysingle item
| Accounts receivable of provision for bad debt by single item | 1,550,300,627.39 | 53.58% | 1,053,487,050.41 | 67.95% | 496,813,576.98 | 1,543,955,986.32 | 58.11% | 972,062,395.33 | 62.96% | 571,893,590.99 |
Where:
| Where: |
Accountsreceivable ofprovision for
| Accounts receivable of provision for | 1,342,934,593.99 | 46.42% | 83,899,580.41 | 6.25% | 1,259,035,013.58 | 1,112,930,148.56 | 41.89% | 64,280,210.58 | 5.78% | 1,048,649,937.98 |
2023 Full Annual Report
bad debt bycombinationWhere:
| Where: |
Combinationof relatedparty
| Combination of related party | 98,882,576.05 | 3.42% | 98,882,576.05 | 99,792,768.36 | 3.76% | 99,792,768.36 |
Agingcombination
| Aging combination | 1,244,052,017.94 | 43.00% | 83,899,580.41 | 6.74% | 1,160,152,437.53 | 1,013,137,380.20 | 38.13% | 64,280,210.58 | 6.34% | 948,857,169.62 |
Total
| Total | 2,893,235,221.38 | 100.00% | 1,137,386,630.82 | 39.31% | 1,755,848,590.56 | 2,656,886,134.88 | 100.00% | 1,036,342,605.91 | 39.01% | 1,620,543,528.97 |
Provision for bad debt by single item:
Unit: yuan
| Name | Beginning balance | Ending balance | ||||
| Book balance | Provision for bad debt | Book balance | Provision for bad debt | Accruing proportion | Reasons for provision | |
Unit 1
| Unit 1 | 657,344,204.78 | 657,344,204.78 | 660,039,726.23 | 660,039,726.23 | 100.00% | Expected irrecoverable |
Unit 2
| Unit 2 | 585,673,768.95 | 175,702,130.69 | 364,027,062.34 | 109,208,118.70 | 30.00% | Expected to be difficult to fully recover |
Unit 3
| Unit 3 | 201,626,455.66 | 86,259,958.01 | 42.78% | Expected to be difficult to fully recover |
Unit 4
| Unit 4 | 112,811,043.19 | 42,342,003.78 | 103,644,563.87 | 62,549,255.29 | 60.35% | Expected to be difficult to fully recover |
Unit 5
| Unit 5 | 26,306,236.78 | 5,261,247.36 | 29,833,027.36 | 20,883,119.15 | 70.00% | Settlement on house mortgage |
Unit 6
| Unit 6 | 20,263,294.09 | 5,751,727.45 | 28,796,628.81 | 12,808,177.77 | 44.48% | Expected to be difficult to fully recover |
Unit 7
| Unit 7 | 27,754,259.57 | 18,956,340.20 | 25,826,189.64 | 17,748,183.70 | 68.72% | Expected to be difficult to fully recover |
Unit 8
| Unit 8 | 21,370,090.54 | 14,959,063.38 | 22,983,529.61 | 15,004,193.26 | 65.28% | Expected to be difficult to fully recover |
Unit 9
| Unit 9 | 15,100,611.29 | 8,471,506.90 | 56.10% | Expected to be difficult to fully recover |
Unit 10
| Unit 10 | 14,139,851.56 | 8,965,986.59 | 13,643,117.43 | 7,265,607.25 | 53.25% | Expected to be difficult to fully recover |
Unit 11
| Unit 11 | 16,210,905.78 | 11,325,134.05 | 11,403,482.66 | 6,897,017.86 | 60.48% | Expected to be difficult to fully recover |
Unit 12
| Unit 12 | 10,185,685.90 | 2,157,682.25 | 9,391,156.30 | 4,698,425.06 | 50.03% | Expected to be difficult to fully recover |
Unit 13
| Unit 13 | 9,181,060.96 | 6,426,742.67 | 9,180,961.06 | 9,180,961.06 | 100.00% | Expected to be difficult to recover |
Unit 14
| Unit 14 | 8,009,318.82 | 2,345,903.11 | 8,175,007.62 | 3,440,071.29 | 42.08% | Expected to be difficult to fully recover |
Unit 15
| Unit 15 | 9,475,265.17 | 6,632,685.62 | 7,305,800.75 | 5,114,060.53 | 70.00% | Expected to be difficult to fully recover |
2023 Full Annual Report
| Name | Beginning balance | Ending balance | ||||
| Book balance | Provision for bad debt | Book balance | Provision for bad debt | Accruing proportion | Reasons for provision | |
Unit 16
| Unit 16 | 4,025,730.93 | 2,818,011.65 | 3,921,670.93 | 2,745,169.65 | 70.00% | Expected to be difficult to fully recover |
Unit 17
| Unit 17 | 3,616,362.19 | 2,531,453.53 | 70.00% | Expected to be difficult to fully recover |
Unit 18
| Unit 18 | 3,317,253.79 | 1,554,840.55 | 46.87% | Expected to be difficult to fully recover |
Unit 19
| Unit 19 | 3,310,609.08 | 1,715,551.82 | 51.82% | Expected to be difficult to fully recover |
Unit 20
| Unit 20 | 3,056,422.32 | 1,145,907.85 | 37.49% | Expected to be difficult to fully recover |
Unit 21
| Unit 21 | 21,205,269.30 | 11,073,531.75 | 22,100,988.45 | 14,225,744.95 | 64.37% | Expected to be difficult to fully recover |
Total
| Total | 1,543,955,986.32 | 972,062,395.33 | 1,550,300,627.39 | 1,053,487,050.41 |
Provision for bad debt by combination: Provision for bad debt of accounts receivable was made by combination of related parties
Unit: yuan
| Name | Ending balance | ||
| Book balance | Provision for bad debt | Accruing proportion | |
Within 1 year
| Within 1 year | 98,882,576.05 |
1~2 years
| 1~2 years |
2~3 years
| 2~3 years |
3~4 years
| 3~4 years |
4~5 years
| 4~5 years |
More than 5 years
| More than 5 years |
Total
| Total | 98,882,576.05 |
Provision for bad debt by combination: Provision for bad debt of accounts receivable was made by aging combination
Unit: yuan
| Name | Ending balance | ||
| Book balance | Provision for bad debt | Accruing proportion | |
Within 1 year
| Within 1 year | 1,054,069,514.58 | 52,703,475.72 | 5.00% |
1~2 years
| 1~2 years | 132,363,246.03 | 13,236,324.60 | 10.00% |
2~3 years
| 2~3 years | 42,612,764.05 | 8,522,552.81 | 20.00% |
3~4 years
| 3~4 years | 9,947,056.51 | 4,973,528.26 | 50.00% |
4~5 years
| 4~5 years | 2,978,688.77 | 2,382,951.02 | 80.00% |
More than 5 years
| More than 5 years | 2,080,748.00 | 2,080,748.00 | 100.00% |
Total
| Total | 1,244,052,017.94 | 83,899,580.41 |
(3) Provision, recovery or reversal of bad debt reserves in the current periodProvision for bad debts in current period:
Unit: yuan
| Category | Beginning balance | Changes in amount in current period | Ending balance | |||
| Provision | Recovered or reversed | Canceled after verification | Other | |||
Provision for bad
| Provision for bad | 1,036,342,605.91 | 200,397,088.17 | 98,986,397.46 | 366,665.80 | 1,137,386,630.82 |
2023 Full Annual Report
| Category | Beginning balance | Changes in amount in current period | Ending balance | |||
| Provision | Recovered or reversed | Canceled after verification | Other | |||
debt of accountsreceivable
debt of accountsreceivableTotal
| Total | 1,036,342,605.91 | 200,397,088.17 | 98,986,397.46 | 366,665.80 | 1,137,386,630.82 |
Where the amount of bad debt provision recovered or transferred back is important:
Unit: yuan
| Unit name | Recovered or reversed amount | Reason for reversal | Recovery mode | The basis and rationality for determining the proportion of the original bad debt provision |
Unit 1
| Unit 1 | 221,825,902.65 | Bank transfer, deduction of fees |
Unit 2
| Unit 2 | 15,782,678.82 | Bank transfer, house mortgage |
Unit 3
| Unit 3 | 7,084,588.48 | Bank transfer, house mortgage |
Unit 4
| Unit 4 | 6,187,078.87 | Bank transfer, house mortgage |
Unit 5
| Unit 5 | 6,076,928.75 | Bank transfer, house mortgage |
Unit 6
| Unit 6 | 3,888,813.74 | Bank transfer, house mortgage |
Unit 7
| Unit 7 | 3,883,348.75 | Bank transfer, house mortgage |
Unit 8
| Unit 8 | 2,483,437.46 | Bank transfer, house mortgage |
Unit 9
| Unit 9 | 1,849,551.00 | Bank transfer, house mortgage |
Unit 10
| Unit 10 | 1,773,645.05 | Bank transfer, house mortgage |
Unit 11
| Unit 11 | 1,392,336.16 | Bank transfer, house mortgage |
Unit 12
| Unit 12 | 3,449,421.99 | Bank transfer, house mortgage |
Total
| Total | 275,677,731.72 |
(4) Accounts receivable actually written off at the current period
Unit: yuan
| Item | Write-off amount |
Accounts receivable written off actually
| Accounts receivable written off actually | 366,665.80 |
Write-off of important accounts receivable:
Unit: yuan
| Unit name | Nature of accounts receivable | Write-off amount | Cause for write-off | Write-off procedures | Whether the account is generated by related party transaction |
Unit 1
| Unit 1 | payment for goods | 115,502.00 | Expected irrecoverable | Approval by management | No |
Unit 2
| Unit 2 | payment for goods | 92,977.60 | Expected irrecoverable | Approval by management | No |
Unit 3
| Unit 3 | payment for goods | 87,416.37 | Expected irrecoverable | Approval by management | No |
Unit 4
| Unit 4 | payment for goods | 27,800.00 | Expected irrecoverable | Approval by management | No |
2023 Full Annual Report
| Unit 5 | payment for goods | 42,969.83 | Expected irrecoverable | Approval by management | No |
Total
| Total | 366,665.80 |
(5) Account receivable and contract assets with top 5 ending balances by debtor
Unit: yuan
| Unit name | Ending balance of accounts receivable | Ending balance of contract assets | Ending balance of accounts receivable and contract assets | Proportion in total ending balance of accounts receivable and contract assets | Ending balance of bad debt provision of accounts receivable and impairment provisions of contract assets |
Unit 1
| Unit 1 | 452,376,997.98 | 452,376,997.98 | 452,376,997.98 |
Unit 2
| Unit 2 | 364,027,062.34 | 364,027,062.34 | 109,208,118.70 |
Unit 3
| Unit 3 | 169,627,424.37 | 169,627,424.37 | 8,481,371.22 |
Unit 4
| Unit 4 | 140,791,195.62 | 140,791,195.62 | 72,571,251.10 |
Unit 5
| Unit 5 | 121,830,942.68 | 121,830,942.68 | 6,091,547.13 |
Total
| Total | 1,248,653,622.99 | 1,248,653,622.99 | 648,729,286.13 |
2. Other receivables
Unit: yuan
| Item | Ending balance | Beginning balance |
Dividends receivable
| Dividends receivable | 10,200,000.00 |
Other receivables
| Other receivables | 46,761,052.06 | 73,700,676.77 |
Total
| Total | 46,761,052.06 | 83,900,676.77 |
(1) Interest receivable
(2) Dividends receivable
1) Classification of dividends receivable
Unit: yuan
| Project (or invested unit) | Ending balance | Beginning balance |
Shengzhou Kinde Intelligent KitchenElectric Co., Ltd.
| Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. | 10,200,000.00 |
Total
| Total | 10,200,000.00 |
(3) Other receivables
1) Other receivables classified by nature
Unit: yuan
| Nature of payment | Ending book balance | Beginning book balance |
Collection by third party
| Collection by third party | 26,915,796.30 | 50,695,825.81 |
Margin and deposit
| Margin and deposit | 26,557,958.62 | 30,213,932.48 |
Associated contact
| Associated contact | 4,064,000.00 | 4,064,000.00 |
Imprest
| Imprest | 1,409,298.88 | 1,972,794.63 |
Withheld amount
| Withheld amount | 3,488,318.88 | 4,337,682.15 |
Project mortgage property
| Project mortgage property | 2,094,110.00 |
Other
| Other | 83,894.77 | 6,022.00 |
Total
| Total | 64,613,377.45 | 91,290,257.07 |
2) Disclosure by aging
Unit: yuan
| Aging | Ending book balance | Beginning book balance |
Within 1 year (including 1 year)
| Within 1 year (including 1 year) | 39,791,252.20 | 66,837,836.02 |
2023 Full Annual Report
| 1 to 2 years | 5,238,428.30 | 6,804,424.74 |
2 to 3 years
| 2 to 3 years | 4,102,774.20 | 3,014,521.11 |
More than 3 years
| More than 3 years | 15,480,922.75 | 14,633,475.20 |
3 to 4 years
| 3 to 4 years | 2,411,698.15 | 2,701,746.80 |
4 to 5 years
| 4 to 5 years | 1,924,707.80 | 1,591,300.00 |
More than 5 years
| More than 5 years | 11,144,516.80 | 10,340,428.40 |
Total
| Total | 64,613,377.45 | 91,290,257.07 |
3) Classified disclosure by bad debt provision method
Unit: yuan
| Category | Ending balance | Beginning balance | ||||||||
| Book balance | Provision for bad debt | Book value | Book balance | Provision for bad debt | Book value | |||||
| Amount | Proportion | Amount | Accruing proportion | Amount | Proportion | Amount | Accruing proportion | |||
Provisionfor baddebt bysingleitem
| Provision for bad debt by single item | 2,094,110.00 | 3.24% | 732,938.50 | 35.00% | 1,361,171.50 |
Where:
| Where: |
Provisionfor baddebt bycombination
| Provision for bad debt by combination | 62,519,267.45 | 96.76% | 17,119,386.89 | 27.38% | 45,399,880.56 | 91,290,257.07 | 100.00% | 17,589,580.30 | 19.27% | 73,700,676.77 |
Where:
| Where: |
Agingcombination
| Aging combination | 62,519,267.45 | 96.76% | 17,119,386.89 | 27.38% | 45,399,880.56 | 91,290,257.07 | 100.00% | 17,589,580.30 | 19.27% | 73,700,676.77 |
Total
| Total | 64,613,377.45 | 100.00% | 17,852,325.39 | 27.63% | 46,761,052.06 | 91,290,257.07 | 100.00% | 17,589,580.30 | 19.27% | 73,700,676.77 |
Provision for bad debt by single item:
Unit: yuan
| Name | Beginning balance | Ending balance | ||||
| Book balance | Provision for bad debt | Book balance | Provision for bad debt | Accruing proportion | Reasons for provision | |
Unit 1
| Unit 1 | 800,000.00 | 280,000.00 | 35.00% | 预计发生减值 |
Unit 2
| Unit 2 | 636,327.00 | 222,714.45 | 35.00% | 预计发生减值 |
Unit 3
| Unit 3 | 657,783.00 | 230,224.05 | 35.00% | 预计发生减值 |
Total
| Total | 2,094,110.00 | 732,938.50 |
Provision for bad debt by combination: provision for bad debt was made by aging combination
Unit: yuan
| Name | Ending balance | ||
| Book balance | Provision for bad debt | Accruing proportion | |
Within 1 year (including 1
year)
| Within 1 year (including 1 year) | 37,697,142.20 | 1,884,857.10 | 5.00% |
1--2 years
| 1--2 years | 5,238,428.30 | 523,842.83 | 10.00% |
2--3 years
| 2--3 years | 4,102,774.20 | 820,554.84 | 20.00% |
3--4 years
| 3--4 years | 2,411,698.15 | 1,205,849.08 | 50.00% |
4--5 years
| 4--5 years | 1,924,707.80 | 1,539,766.24 | 80.00% |
More than 5 years
| More than 5 years | 11,144,516.80 | 11,144,516.80 | 100.00% |
Total
| Total | 62,519,267.45 | 17,119,386.89 |
2023 Full Annual Report
Provision for bad debt was made based on general model of expected credit loss
Unit: yuan
| Provision for bad debt | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit losses over the next 12 months | Expected credit losses over the entire duration (without credit impairment) | Expected credit losses over the entire duration (with credit impairment) |
Balance on January 1,2023
| Balance on January 1, 2023 | 17,589,580.30 | 17,589,580.30 |
Balance on January 1,2023 in current period
| Balance on January 1, 2023 in current period |
Withdrawn in currentperiod
| Withdrawn in current period | -470,193.41 | 732,938.50 | 262,745.09 |
Balance on December31, 2023
| Balance on December 31, 2023 | 17,119,386.89 | 732,938.50 | 17,852,325.39 |
4) Provision, recovery or reversal of bad debt reserves in the current period
Provision for bad debts in current period:
Unit: yuan
| Category | Beginning balance | Changes in amount in current period | Ending balance | |||
| Provision | Recovered or reversed | Write-off or verification | Other | |||
Provision for baddebt of otherreceivables
| Provision for bad debt of other receivables | 17,589,580.30 | 262,745.09 | 17,852,325.39 |
Total
| Total | 17,589,580.30 | 262,745.09 | 17,852,325.39 |
5) Other receivables with top 5 ending balances by debtor
Unit: yuan
| Unit name | Nature of payment | Ending balance | Aging | Proportion in total other ending balance receivable | Ending balance of bad debt provision |
Unit 1
| Unit 1 | Collection by third party | 16,946,133.99 | Within 1 year | 26.23% | 847,306.70 |
Unit 2
| Unit 2 | Deposit | 4,928,000.00 | More than 5 years | 7.63% | 4,928,000.00 |
Unit 3
| Unit 3 | Loan | 4,064,000.00 | More than 5 years | 6.29% | 4,064,000.00 |
Unit 4
| Unit 4 | Withheld amount | 3,442,166.31 | Within 1 year | 5.33% | 172,108.32 |
Unit 5
| Unit 5 | Collection by third party | 2,228,080.41 | Within 1 year | 3.45% | 111,404.02 |
Total
| Total | 31,608,380.71 | 48.93% | 10,122,819.04 |
3. Long-term equity investment
Unit: yuan
| Item | Ending balance | Beginning balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
Investmentinsubsidiaries
| Investment in subsidiaries | 270,909,357.60 | 20,400,000.00 | 250,509,357.60 | 267,279,396.10 | 20,400,000.00 | 246,879,396.10 |
Investmentin associatedenterprisesand jointenterprises
| Investment in associated enterprises and joint enterprises | 4,961,672.03 | 4,961,672.03 | 4,890,453.34 | 4,890,453.34 |
Total
| Total | 275,871,029.63 | 20,400,000.00 | 255,471,029.63 | 272,169,849.44 | 20,400,000.00 | 251,769,849.44 |
2023 Full Annual Report
(1) Investment in subsidiaries
Unit: yuan
| Invested unit | Beginning balance (book value) | Beginning balance of impairment provision | Increase or decrease in current period | Ending balance (book value) | Balance of impairment provision at the end of period | |||
| Further investment | Capital reduction | Provision for impairment | Other | |||||
Shengzhou KindeIntelligent KitchenElectric Co., Ltd.
| Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. | 162,320,000.00 | 162,320,000.00 |
Hangzhou MingqiElectric Co., Ltd.
| Hangzhou Mingqi Electric Co., Ltd. | 52,275,243.18 | 41,061.50 | 52,316,304.68 |
Dize HomeAppliances Trading(Shanghai) Co., Ltd.
| Dize Home Appliances Trading (Shanghai) Co., Ltd. | 630,900.00 | 20,400,000.00 | 630,900.00 | 20,400,000.00 |
Shanghai ROBAMElectric ApplianceSales Co., Ltd.
| Shanghai ROBAM Electric Appliance Sales Co., Ltd. | 5,838,272.10 | 5,838,272.10 |
Beijing ROBAMElectric ApplianceSales Co., Ltd.
| Beijing ROBAM Electric Appliance Sales Co., Ltd. | 5,814,980.82 | 5,814,980.82 |
Hangzhou ROBAMFuchuang InvestmentManagement Co.,Ltd.
| Hangzhou ROBAM Fuchuang Investment Management Co., Ltd. | 10,000,000.00 | 10,000,000.00 |
Hangzhou JinheElectric AppliancesCo., Ltd
| Hangzhou Jinhe Electric Appliances Co., Ltd | 10,000,000.00 | 10,000,000.00 |
ROBAM Appliances(Hong Kong)Holdings Limited
| ROBAM Appliances (Hong Kong) Holdings Limited | 3,588,900.00 | 3,588,900.00 |
Total
| Total | 246,879,396.10 | 20,400,000.00 | 3,629,961.50 | 250,509,357.60 | 20,400,000.00 |
(2) Investment in associated enterprises and joint enterprises
Unit: yuan
| Invested unit | Beginning balance (book value) | Beginning balance of impairment provision | Increase or decrease in current period | Ending balance (book value) | Balance of impairment provision at the end of period | |||||||
| Further investment | Capital reduction | Investment gains and losses recognized by the equity method | Adjustment of other comprehensive income | Changes in other equity | Declared payment of cash dividends or profits | Provision for impairment | Other | |||||
I. Cooperative enterprise
I. Cooperative enterpriseDe DietrichTrade(Shanghai) Co.,Ltd.
| De Dietrich Trade (Shanghai) Co., Ltd. | 3,824,460.03 | 497,269.36 | 4,321,729.39 |
Subtotal
| Subtotal | 3,824,460.03 | 497,269.36 | 4,321,729.39 |
II. Joint venture
II. Joint ventureZhejiangTingshuo BrandOperationManagementCo., Ltd.
| Zhejiang Tingshuo Brand Operation Management Co., Ltd. | 1,065,993.31 | -426,050.67 | 639,942.64 |
Subtotal
| Subtotal | 1,065,993.31 | -426,050.67 | 639,942.64 |
2023 Full Annual Report
| Total | 4,890,453.34 | 71,218.69 | 4,961,672.03 |
4. Operating income and operating cost
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period | ||
| Income | Cost | Income | Cost | |
Main business
| Main business | 9,896,457,532.30 | 5,078,924,538.77 | 9,254,790,315.93 | 4,792,994,074.50 |
Other businesses
| Other businesses | 296,611,622.16 | 159,955,374.43 | 269,759,869.66 | 108,497,967.17 |
Total
| Total | 10,193,069,154.46 | 5,238,879,913.20 | 9,524,550,185.59 | 4,901,492,041.67 |
Information related to the transaction price apportioned to the remaining performance obligations:
The amount of income corresponding to the performance obligations signed but not yet performed or completed at the end of thisreporting period is RMB 1,019,942,923.58.
5. Investment income
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period |
Long-term equity investment incomechecked by cost method
| Long-term equity investment income checked by cost method | 10,200,000.00 |
long-term equity investment gainsmeasured by employing the equity method
| long-term equity investment gains measured by employing the equity method | 71,218.69 | -514,676.57 |
Investment income from trading financialassets during the holding period
| Investment income from trading financial assets during the holding period | 83,051,398.90 | 98,086,574.72 |
Total
| Total | 83,122,617.59 | 107,771,898.15 |
6. Other
XX. Further Information
1. Current non-recurring gain and loss statement
? Applicable □ Not applicable
Unit: yuan
| Item | Amount | Description |
Profit and loss on disposal of non-currentassets
| Profit and loss on disposal of non-current assets | -1,212,528.65 |
Government subsidies included intocurrent profits and losses (except thosegovernment subsidies that are closelyrelated to normal business of the Company,comply with national policies andregulations, enjoyed according to definedcriteria, and have an ongoing impact on theCompany's profit or loss)
| Government subsidies included into current profits and losses (except those government subsidies that are closely related to normal business of the Company, comply with national policies and regulations, enjoyed according to defined criteria, and have an ongoing impact on the Company's profit or loss) | 82,547,062.16 |
Reversal of impairment provision forreceivables subject to separate impairmenttest
| Reversal of impairment provision for receivables subject to separate impairment test | 98,986,397.46 |
Income and expenditure other than thosementioned above
| Income and expenditure other than those mentioned above | -1,838,686.70 |
Minus: Amount affected by income tax
| Minus: Amount affected by income tax | 27,437,027.69 |
Amount of minority shareholders' equityaffected (after tax)
| Amount of minority shareholders' equity affected (after tax) | 1,823,927.09 |
Total
| Total | 149,221,289.49 | -- |
Details of other profit and loss items that meet the definition of non-recurring profit and loss:
□ Applicable ? Not applicable
The Company does not have any other profit and loss items that meet the definition of non-recurring profit and loss.
2023 Full Annual Report
Description of defining the non-recurring profit and loss items enumerated in the Interpretative Announcement No. 1 onInformation Disclosure of Public Securities Issuing Companies - Non-recurrent Profits and Losses as recurrent profit and lossitems? Applicable □ Not applicable
| Item | Amount involved (yuan) | Cause |
VAT exemption or reduction or refund
| VAT exemption or reduction or refund | 90,681,056.87 | National tax policies, recurring business |
Individual income tax service chargerefund
| Individual income tax service charge refund | 684,354.91 | National tax policies, recurring business |
2. Return on net assets and earnings per share
| Reporting profit | Weighted average return on net assets | Earnings Per Share | |
| Basic EPS (yuan/share) | Diluted EPS (yuan/share) | ||
Net profit attributable tocommon shareholders of theCompany
| Net profit attributable to common shareholders of the Company | 16.78% | 1.83 | 1.83 |
Net profit attributable tocommon shareholders of theCompany after deduction ofnon-recurring profits and losses
| Net profit attributable to common shareholders of the Company after deduction of non-recurring profits and losses | 15.29% | 1.66 | 1.66 |
3. Differences in Accounting Data under Domestic and Foreign Accounting Standards
(1) Differences between net profits and net assets in financial statements disclosed according to theInternational Accounting Standards (IAS) and Chinese Accounting Standards simultaneously
□ Applicable ? Not applicable
(2) Differences between net profits and net assets in financial statements disclosed according to the
Overseas Accounting Standards and Chinese Accounting Standards simultaneously
□ Applicable ? Not applicable
(3) Causes for differences in accounting data under domestic and foreign accounting standards. If the
difference adjustment has been made to the data audited by the overseas audit institution, the nameof the overseas audit institution shall be indicated