LUTHAITEXTILECO.,LTD.
INTERIMREPORT2024
August2024
PartIImportantNotes,TableofContentsandDefinitionsTheBoardofDirectors(orthe“Board”),theSupervisoryCommitteeaswellasthedirectors,supervisorsandseniormanagementofLuThaiTextileCo.,Ltd.(hereinafterreferredtoasthe“Company”)herebyguaranteethefactuality,accuracyandcompletenessofthecontentsofthisReportanditssummary,andshallbejointlyandseverallyliableforanymisrepresentations,misleadingstatementsormaterialomissionstherein.LiuZibin,theCompany’slegalrepresentative,andZhangKeming,headofaccountingaffairsandheadoftheaccountingdepartment(equivalenttoaccountingmanager)herebyguaranteethattheFinancialStatementscarriedinthisReportarefactual,accurateandcomplete.AlltheCompany’sdirectorshaveattendedtheBoardmeetingforthereviewofthisReportanditssummary.TheCompanyissubjecttothedisclosurerequirementsforlistedcompaniesengagingintextileandapparelasstatedinGuidelineNo.3oftheShenzhenStockExchangeforSelf-regulationofListedCompanies—Industry-specificInformationDisclosure.InH12024,despitetheglobaleconomycontinuingtofacemultiplechallengessuchasinflationandgeopoliticaltensions,theoveralleconomiclandscapehasdisplayedamodestrecovery.AccordingtothedatareleasedbytheNationalBureauofStatistics,China'sgrossdomesticproduct(GDP)grewby5%yearonyearinthefirstsixmonths,andtheeconomicperformanceremainedgenerallystable.Thetextileindustryhasensureditscontinuedstabilityfromthepreviousperiod,withitsefficiencycontinuingtoimprove.StatisticsfromtheGeneralAdministrationofCustomsofChinashowthattheexportrevenueoftextileproductsincreasedby6.5%betweenJanuaryandJune2024.Amidstrelativelystabledemandincertainoverseasmarketsandamodestrestockingbyinternationalbrands,China'stextileandapparelexportshaveperformedbetterthanexpectedoverall,withthecompetitivenessoftheindustrychainremainingstable.However,fromtheoverallperspectiveofeconomicoperations,strongsupplycoexistswithweakdemand,andinsufficienteffectivedemandremainsaprominentissue.Thetextileindustryisfacingchangesintheglobaltradelandscapeandthereshapingofmarketopportunities.In2024,theglobaleconomyisstillconfrontedwithacomplicatedandgrimdevelopmentstatus.China'seconomywillcontinuetofacemanychallengesinconsolidatingthegoodmomentumofstablegrowth,aswellasinpersistentlypromotinghigh-qualitydevelopment.Fordetails,pleaserefertoPartIIIManagementDiscussionandAnalysis.TheBoardhasapprovedafinaldividendplanasfollows:basedonthesharecapitalof817,305,896shares,acashdividendofRMB1.00(taxinclusive)per10sharesistobedistributedtotheshareholders,withnobonusissuefromeitherprofitorcapitalreserves.ThisReportanditssummaryhavebeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionsshallprevail.
TableofContents
PartIImportantNotes,TableofContentsandDefinitions ...... 2
PartIICorporateInformationandKeyFinancialInformation ...... 6
PartIIIManagementDiscussionandAnalysis ...... 9
PartIVCorporateGovernance ...... 27
PartVEnvironmentalandSocialResponsibility ...... 30
PartVISignificantEvents ...... 33
PartVIIShareChangesandShareholderInformation ...... 40
PartVIIIPreferredShares ...... 49
PartIXBonds ...... 50
PartXFinancialStatements ...... 55
DocumentsAvailableforReference
1.ThefinancialstatementssignedandstampedbytheCompany’slegalrepresentativeandheadofaccountingaffairsandheadoftheaccountingdepartment;and
2.TheoriginalsofalltheCompany’sannouncementsanddocumentsdisclosedtothepublicduringtheReportingPeriodonSecuritiesTimes,ShanghaiSecuritiesNews,ChinaSecuritiesJournalandTaKungPao.
Definitions
| Term | Definition |
| The“Company”,“LTTC”,“Issuer”or“we” | LuThaiTextileCo.,Ltd.anditsconsolidatedsubsidiaries,exceptwherethecontextotherwiserequires |
| TheBoardofDirectors | TheBoardofDirectorsofLuThaiTextileCo.,Ltd. |
| TheSupervisoryCommittee | TheSupervisoryCommitteeofLuThaiTextileCo.,Ltd. |
| CSRC | TheChinaSecuritiesRegulatoryCommission |
| RMB,RMB’0,000 | ExpressedintheChinesecurrencyofRenminbi,expressedintenthousandRenminbi |
| The“CompanyLaw” | The“CompanyLawofthePeople‘sRepublicofChina” |
| The“SecuritiesLaw” | The“SecuritiesLawofthePeople‘sRepublicofChina” |
| The“ReportingPeriod”or“CurrentPeriod” | Theperiodfrom1January2024to30June2024 |
PartIICorporateInformationandKeyFinancialInformation
ICorporateInformation
| Stockname | LTTC,LTTC-B | Stockcode | 000726,200726 |
| Previousstockname(ifany) | N/A | ||
| Stockexchangeforstocklisting | ShenzhenStockExchange | ||
| CompanynameinChinese | 鲁泰纺织股份有限公司 | ||
| Abbr.(ifany) | 鲁泰纺织 | ||
| CompanynameinEnglish(ifany) | LUTHAITEXTILECO.，LTD | ||
| Abbr.(ifany) | LTTC | ||
| Legalrepresentative | LiuZibin | ||
IIContactInformation
| BoardSecretary | SecuritiesRepresentative | |
| Name | ZhengWeiyin | LiKun |
| Address | No.81,SonglingEastRoad,ZichuanDistrict,Zibo,Shandong,P.R.China | No.81,SonglingEastRoad,ZichuanDistrict,Zibo,Shandong,P.R.China |
| Tel. | 0533-5285166 | 0533-5285166 |
| Fax | 0533-5418805 | 0533-5418805 |
| Emailaddress | wyzheng@lttc.com.cn | likun@lttc.com.cn |
IIIOtherInformation
1.ContactInformationoftheCompanyIndicatebytickmarkwhetheranychangeoccurredtotheregisteredaddress,officeaddressandtheirzipcodes,websiteaddress,emailaddressandothercontactinformationoftheCompanyintheReportingPeriod.
□Applicable?NotapplicableNochangeoccurredtothesaidinformationintheReportingPeriod,whichcanbefoundinthe2023AnnualReport.
2.MediaforInformationDisclosureandPlacewherethisReportisLodgedIndicatebytickmarkwhetheranychangeoccurredtotheinformationdisclosuremediaandtheplaceforlodgingtheCompany’speriodicreportsintheReportingPeriod.
□Applicable?NotapplicableThewebsiteoftheShenzhenStockExchange,mediaandwebsitewheretheCompany’speriodicreportsaredisclosed,aswellastheplaceforlodgingsuchreportsdidnotchangeintheReportingPeriod.Thesaidinformationcanbefoundinthe2023AnnualReport.
3.OtherInformationIndicatebytickmarkwhetheranychangeoccurredtootherinformationintheReportingPeriod.
□Applicable?NotapplicableIVKeyFinancialInformation
Indicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow.
□Yes?No
| H12024 | H12023 | Change(%) | |
| Operatingrevenue(RMB) | 2,830,488,685.61 | 2,840,491,262.47 | -0.35% |
| Netprofitattributabletothelistedcompany’sshareholders(RMB) | 169,559,969.54 | 221,647,998.15 | -23.50% |
| Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalgainsandlosses(RMB) | 263,731,284.55 | 191,809,861.94 | 37.50% |
| Netcashgeneratedfrom/usedinoperatingactivities(RMB) | 451,421,652.69 | 148,610,216.98 | 203.76% |
| Basicearningspershare(RMB/share) | 0.21 | 0.26 | -19.23% |
| Dilutedearningspershare(RMB/share) | 0.19 | 0.23 | -17.39% |
| Weightedaveragereturnonequity(%) | 1.83% | 2.42% | -0.59% |
| 30June2024 | 31December2023 | Change(%) | |
| Totalassets(RMB) | 13,765,510,933.73 | 13,430,286,222.94 | 2.50% |
| Equityattributabletothelistedcompany’sshareholders(RMB) | 9,302,679,873.38 | 9,230,806,905.80 | 0.78% |
VAccountingDataDifferencesunderChina’sAccountingStandardsforBusinessEnterprises(CAS)andInternationalFinancialReportingStandards(IFRS)andForeignAccountingStandards
1.NetProfitandEquityunderCASandIFRS
□Applicable?NotapplicableNosuchdifferencesfortheReportingPeriod.
2.NetProfitandEquityDifferencesunderCASandForeignAccountingStandards
□Applicable?NotapplicableNosuchdifferencesfortheReportingPeriod.VIExceptionalGainsandLosses
?Applicable□Notapplicable
Unit:RMB
| Item | Amount | Note |
| Gainorlossondisposalofnon-currentassets(inclusiveofimpairmentallowancewrite-offs) | -399,351.02 |
| Governmentgrantsrecognisedinprofitorloss(exclusiveofthosethatarecloselyrelatedtotheCompany'snormalbusinessoperationsandgiveninaccordancewithdefinedcriteriaandincompliancewithgovernmentpolicies,andhaveacontinuingimpactontheCompany'sprofitorloss) | 15,013,138.75 |
| Gainorlossonfair-valuechangesinfinancialassetsandliabilitiesheldbyanon-financialenterprise,aswellasondisposaloffinancialassetsandliabilities(exclusiveoftheeffectiveportionofhedgesthatisrelatedtotheCompany'snormalbusinessoperations) | -125,669,854.28 |
| Non-operatingincomeandexpenseotherthantheabove | 677,817.46 |
| Less:Incometaxeffects | -16,056,262.30 |
| Non-controllinginterestseffects(netoftax) | -150,671.78 |
| Total | -94,171,315.01 |
Particularsaboutotheritemsthatmeetthedefinitionofexceptionalgain/loss:
□Applicable?NotapplicableNosuchcasesfortheReportingPeriod.ExplanationofwhytheCompanyreclassifiesasrecurrentanexceptionalgain/lossitemlistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—ExceptionalGain/LossItems:
□Applicable?NotapplicableNosuchcasesfortheReportingPeriod.
PartIIIManagementDiscussionandAnalysis
IPrincipalActivityoftheCompanyintheReportingPeriod
DuringtheReportingPeriod,theglobalpoliticalandeconomiclandscapecontinuedtopresentacomplexandvolatilesituation,withgeopoliticalconflicts,inflation,andmountingprotectionismposingmultidimensionalchallengestoeconomicrecovery.Inthefaceofthecomplexity,severity,anduncertaintyoftheexternalenvironment,theCompanysteadfastlyadheredtoa"customer-focused"philosophy,consolidatingitspositioninthedomesticmarketwhileconcurrentlyexpandingintooverseasmarkets.Continuouslyexecutingthestrategiesof"ImproveQualityandEfficiency"and"OverallInternationalization",theCompanyacceleratedthelaunchandsteadyoperationsofnewoverseasprojects,intensifiedtheexplorationofnewmarkets,anddedicatedtohigh-qualitydevelopmentanddisciplinedmanagementpracticesbyexpandingmarket,adjustingstructureandbuildingcapabilities.FortheReportingPeriod,theCompanyachievedoperatingrevenueofRMB2,830million,operatingprofitofRMB192million,anetprofitattributabletotheCompanyastheparentofRMB170million,andanetprofitattributabletotheCompanyastheparentbeforeexceptionalgainsandlossesofRMB264million,respectivelydown0.35%,down15.98%,down23.50%,andup37.50%whencomparedtothesameperiodoflastyear.NochangesoccurredtotheCompany’sprincipaloperations,primaryproducts,businessmodels,ortheprimaryfactorsdrivingtheCompany’sgrowthintheReportingPeriod.DuringtheReportingPeriod,theCompanywasselectedasthe"ChineseTextileandApparelBrandof2024withCompetitiveEdge"bytheChinaNationalTextileandApparelCouncilandnamedasan"InnovationUnitforDigitalTransformation"bytheShandongTextileandApparelAssociationin2023.TheCompanymainlyfocusedonthefollowingaspectsduringtheReportingPeriod:
(I)ContinuouslyimprovetheLuThaiProductionSystem(LTPS)anddeeplypromotecostreductionandefficiencyenhancementTheCompanydeeplyimplementedtheexcellentperformancemanagementmode,continuouslyimprovedtheLTPS,andpromotedleanproduction.Itcarriedoutsystematictrainingonleanproduction-relatedknowledgeandstimulatedtheenthusiasmandcreativityofitsemployeesthroughmanagementandtechnologyresearchrefinement,star-levelplantevaluation,technologycomparison,andothertasks,aswellasaseriesofteam-buildingactivities,therebyconstantlyenhancingitsmanagementcapabilitiesinqualitycontrol,productionoperations,andriskcontrol.Aimingtoactivelyrespondtomarketchangesandmeetcustomerdemands,theCompanyfurtherstrengtheneditsinternalmanagementmechanismsandcontinuedtomaintainitsadvantageouspositioninthecottontextileindustry.(II)ExpandtheglobalmarketingnetworkandimprovetheoverallproductionsolutioncapabilitiesTheCompanybuiltaglobalmarketingnetworkcenteredontheGroupheadquarters.Adheringtothebigcustomerstrategyandleveragingitsglobalindustryframeworkandadvantagesintheverticalindustrychain,theCompanyimproveditscooperationmodelfeaturinghigh-levelinteraction,middle-levelcommunication,andnodeinterconnectionwithstrategicandvaluablecustomers,stabilizedstrategicpartnerships,andfosteredawin-windevelopmentmodel.Itmaintainedgoodrelationshipswithandtrackedkeycustomers,promotedintegratedfabricandapparelservice,improvedtheverticalsupplychaincooperationsystemforfabricsandclothing,andprovidedcustomerswitha"one-stop"solutionforvarious"fabrics+apparel".(III)FocusoncustomervaluecreationandadvanceR&DinnovationandcooperationLeveragingitsadvantagesinthefullindustrychainand"domestic+overseas"productionframework,theCompanycontinuouslystrengtheneditsmarket-orientedproductdevelopmentandtechnologyresearchsystem.Inresponsetomarketconditions,theCompanyfurtherstreamlinedthemechanismforintroducingproductdevelopmentneedsandexecutingproductdevelopmenttasks,strengthenedjointdevelopmentwithupstreamanddownstreamindustrypartners,aswellasresearchinstitutions,andpromotedtheimplementationofresearchprojectsrelatedtothedesignofcasualwearandfunctionalfabrics,centeringaroundproductfunctionalityenhancement,greenandsustainableproductdevelopment,andprocessingtechnologyresearch.DuringtheReportingPeriod,theCompanywasgranted17patents,including13forinventionandfourforutilitymodels.(IV)Furtherrefinethecorporateculturesystemandenhancemarketcompetitiveawarenessonallfronts
Inordertofurtheremployee'sthinking,gathertheirstrength,andmotivatethem,theCompanyadvanceditscorporatecultureenhancementproject,activelyrespondingtochangesintheinternationalpoliticalandeconomiclandscapeandembracingmarketchallenges.Adheringtotheprinciplesof"pursuingexcellence"and"integrityforwin-win"withallstakeholders,theCompanypersistedinthesustainabledevelopmentapproachof"greenandlow-carbon,intelligentmanufacturing",proactivelyadaptingtoexternalenvironmentalchangesandcontinuouslymeetingcustomerandmarketdemands,whichhaslaidasolidideologicalandculturalfoundationforthenextstageofdevelopmentandsparednoeffortstobuildtheCompanyintoagreenandfashionablegroupinthetextileandapparelindustrycenteredonleadingfabrics.TheCompanyissubjecttothedisclosurerequirementsforlistedcompaniesengagingintextileandapparelasstatedinGuidelineNo.3oftheShenzhenStockExchangeforSelf-regulationofListedCompanies—Industry-specificInformationDisclosure.Thisyear,supportedbytheorderlyandstablefunctioningofthesupplychain,aswellastherecoveryofmarketdemandsathomeandabroad,theoverallproductionsituationinthetextileindustryhasremainedgenerallystable.AccordingtothedatafromtheNationalBureauofStatistics,theretailsalesofconsumergoodsinthefirsthalfof2024totaledRMB23.60trillion,up3.7%yearonyear.Specifically,thesalesofapparel,shoesandhats,andknitwearandtextilesabovethedesignatedsizerecordedRMB709.8billion,up1.3%yearonyear.AccordingtothestatisticsbulletinoftheGeneralAdministrationofCustoms,China'stextileandapparelexportscontinuedtomaintainastablerecoverytrendinthefirsthalfof2024,withcumulativeexportsoftextilesandapparelofUSD143.18billioninthefirsthalfofthisyear,ayear-on-yearincreaseof4.7%.Basedonthe2024H1economicoperationreportofChina'stextileindustryreleasedbytheChinaNationalTextileandApparelCouncil,astheefficiencyoftextileenterpriseshascontinuedtoimprove,theprofitabilityandsomeoperationalindicatorsofenterpriseshaveshownatrendofimprovement.However,intermsofdemand,thegrowthindomesticdemandisstillslightlylessthantheexportdata,andthedomesticdemandisinsufficientinitsstability,whichneedstobefurtherstrengthened.In2024,theinternationalpoliticalandeconomicenvironmentisbecomingincreasinglycomplicated.Instabilitiesanduncertaintiessuchasthedivergingmonetarypoliciesacrosstheworld,tighteninggeopoliticalenvironment,andtradeprotectionismwillconstraintheimprovementofinternationalmarketdemand.Accompaniedbyaseriesofregulatorypoliciesintensivelyintroducedandimplementedbythestate,thedomesticeconomyasawholewillcontinuetorecover,butintheshortterm,theintertwinedproblemsofinsufficienteffectivedemand,subduedmarketsentiment,andstructuraltransformationpressuresinthemediumandlongtermwillfurtherposechallengestosteadyeconomicgrowthandriskprevention.
IICoreCompetitivenessAnalysis
1.TheCompanyhasacomprehensiveverticalindustrialchainandinternationalizedlayout.Itpossessesthewholeindustrialchainintegratingspinning,bleachinganddyeing,neatening,testing,andgarmentmaking,aswellasexcellentqualitycontrolcapabilitiesthroughvariouslinksoftheproductionofhigh-endyarn-dyedfabrics.Inordertoleverageinternationalresources,giveplaytotheadvantageofinternationalizedindustrialdistributionandreinforcetheleadinginternationalstatusinmanufacturingtheyarn-dyedfabricsforshirts,theCompanyhasputinplaceproductionbases,designagency,andmarketserviceofficesoverseas.
2.TheCompanyhasbetterintegratedmanagementcapabilityandhigh-levelmanagementsystemarchitecture.Since1995,theCompanyhassuccessivelypassedthecertificationofISO9001qualitymanagementsystem,ISO14001environmentalmanagementsystem,ISO45001OccupationHealthSafetyManagementSystem,SA8000SocialResponsibilityManagementSystem,TheWorldwideResponsibleApparelProductionStandard(WRAP),SustainableTextileProduction(STeP),GlobalOrganicTextileStandard(GOTS),GlobalRecycleStandard(GRS),HIGG(FEMandFSLM)andChinaNationalAccreditationServiceforConformityAssessment(CNAS),andrealizedtheinternationalization,standardizationandnormalizationofthecorporatemanagement.Inordertomakeoutstandingachievementinitsoperatingmanagement,betterimprovetheCompany’sbusinessperformanceandcapabilities,theCompanyhasintroducedtheGB/T19580CriteriaforPerformanceExcellencestepbystep,setupthe“bigquality”system,promotedthemanagementinnovationandguaranteedthemanagementquality.
3.TheCompanyestablishesitshigh-leveltechnicalcooperationplatformbyvirtueofstrongR&Dcapability.Infact,theCompany
alwaysinsistsontheindependentinnovation,enhancesitstechnicalcooperationandjointproductdevelopmentwithvariousresearchinstitutes,collegesanduniversities,strategicclientsandimportantsuppliersbyrelyingonvarioustechnicalplatformsincludingthenationalenterprisetechnicalcentre,thenationalindustrialdesigncentre,thenationalpost-doctoralscientificresearchstationandShandongProvincialEngineeringTechnologyResearchCentre.Emphasisingbothcutting-edgetechnologicalreservesandtheinnovationofappliedtechnologies,theCompanycontinuouslystrengthensthedevelopmentofnewproductsorientedtowardsrealizingcommercialvalue.Graduallyenhancingitscapabilityintechnologicalresearchandintegratedproductdevelopment,theCompanycontinuallycontributesmoregreen,low-carbon,andsustainablenewtechnologiesandhigh-qualityproductstotheindustry,creatingmorevalueforcustomersandmaterialisinglow-carbon,green,andsustainabledevelopment.
IIICoreBusinessAnalysis
Overview:
Seecontentsundertheheading“IPrincipalActivityoftheCompanyintheReportingPeriod”above.Year-on-yearchangesinkeyfinancialdata:
Unit:RMB
| H12024 | H12023 | Change(%) | Mainreasonforchange | |
| Operatingrevenue | 2,830,488,685.61 | 2,840,491,262.47 | -0.35% | |
| Costofsales | 2,131,993,492.13 | 2,233,932,367.67 | -4.56% | |
| Sellingexpense | 63,286,721.28 | 66,411,247.30 | -4.70% | |
| Administrativeexpense | 158,805,160.69 | 175,308,361.39 | -9.41% | |
| Financecosts | 4,249,591.93 | -57,007,476.34 | 107.45% | Decreasednetexchangegainascomparedtothesameperiodoflastyear |
| Incometaxexpense | 18,864,805.79 | 20,991,415.51 | -10.13% | |
| R&Dinvestments | 115,374,597.19 | 131,290,032.04 | -12.12% | |
| Netcashgeneratedfrom/usedinoperatingactivities | 451,421,652.69 | 148,610,216.98 | 203.76% | Decreasedpaymentsforcommoditiesandservicesascomparedtothesameperiodoflastyear |
| Netcashgeneratedfrom/usedininvestingactivities | -358,741,366.46 | -751,734,011.96 | 52.28% | Decreasedpaymentsforinvestmentsascomparedtothesameperiodoflastyear |
| Netcashgeneratedfrom/usedinfinancingactivities | 195,943,296.16 | 51,586,090.91 | 279.84% | Increasedborrowingsraisedascomparedtothesameperiodoflastyear |
| Netincreaseincashandcashequivalents | 297,560,194.04 | -533,029,486.11 | 155.82% |
SignificantchangestotheprofitstructureorsourcesoftheCompanyintheReportingPeriod:
□Applicable?NotapplicableNosuchchangesintheReportingPeriod.Breakdownofoperatingrevenue:
Unit:RMB
| H12024 | H12023 | Change(%) |
| Operatingrevenue | As%oftotaloperatingrevenue(%) | Operatingrevenue | As%oftotaloperatingrevenue(%) | ||
| Total | 2,830,488,685.61 | 100% | 2,840,491,262.47 | 100% | -0.35% |
| Byoperatingdivision | |||||
| Textileandapparel | 2,626,711,642.70 | 92.80% | 2,634,843,253.53 | 92.76% | -0.31% |
| Electricityandsteam | 136,341,429.91 | 4.82% | 120,527,005.15 | 4.24% | 13.12% |
| Others | 67,435,613.00 | 2.38% | 85,121,003.79 | 3.00% | -20.78% |
| Byproductcategory | |||||
| Fabricproducts | 2,008,100,132.02 | 70.95% | 1,932,688,936.22 | 68.04% | 3.90% |
| Shirts | 618,611,510.68 | 21.86% | 702,154,317.31 | 24.72% | -11.90% |
| Electricityandsteam | 136,341,429.91 | 4.82% | 120,527,005.15 | 4.24% | 13.12% |
| Others | 67,435,613.00 | 2.38% | 85,121,003.79 | 3.00% | -20.78% |
| Byoperatingsegment | |||||
| JapanAndSouthKorea | 176,568,711.23 | 6.24% | 189,783,688.08 | 6.68% | -6.96% |
| SoutheastAsia | 806,827,260.35 | 28.50% | 825,289,532.25 | 29.05% | -2.24% |
| EuropeandAmerica | 428,358,783.88 | 15.13% | 488,539,769.45 | 17.20% | -12.32% |
| Others | 362,087,336.11 | 12.79% | 295,912,689.60 | 10.42% | 22.36% |
| China | 1,056,646,594.04 | 37.33% | 1,040,965,583.09 | 36.65% | 1.51% |
Operatingdivision,productcategoryoroperatingsegmentcontributingover10%ofoperatingrevenueoroperatingprofit:
□Applicable?NotapplicableTheCompanyissubjecttothedisclosurerequirementsforlistedcompaniesengagingintextileandapparelasstatedinGuidelineNo.3oftheShenzhenStockExchangeforSelf-regulationofListedCompanies—Industry-specificInformationDisclosure.
Unit:RMB
| Operatingrevenue | Costofsales | Grossprofitmargin | YoYchangeinoperatingrevenue(%) | YoYchangeincostofsales(%) | YoYchangeingrossprofitmargin(%) | |
| Byoperatingdivision | ||||||
| Textileandapparel | 2,626,711,642.70 | 1,945,761,309.53 | 25.92% | -0.31% | -4.25% | 3.05% |
| Byproductcategory | ||||||
| Fabricproducts | 2,008,100,132.02 | 1,479,411,285.60 | 26.33% | 3.90% | -1.54% | 4.08% |
| Shirts | 618,611,510.68 | 466,350,023.93 | 24.61% | -11.90% | -11.95% | 0.04% |
| Byoperatingsegment | ||||||
| SoutheastAsia | 806,827,260.35 | 594,777,301.00 | 26.28% | -2.24% | -7.20% | 3.94% |
| EuropeandAmerica | 428,358,783.88 | 320,745,427.54 | 25.12% | -12.32% | -13.67% | 1.17% |
| China | 1,056,646,594.04 | 816,702,834.58 | 22.71% | 1.51% | -3.68% | 4.16% |
CorebusinessdataoftheprioryearrestatedaccordingtothechangedstatisticalcaliberfortheReportingPeriod:
□Applicable?NotapplicablePhysicalstoresoftheCompany:
□Yes?NoNewphysicalstores:
□Yes?NoIndicatebytickmarkwhethertheCompanydisclosesitstopfivefranchisedstores.
□Yes?No
IVOtherInformationRequiredbyInformationDisclosureGuideforCompaniesEngagedinTextileandGarmentServices
1.Capacity
TheCompany'sowncapacity
| IndustryClassification | Item | H12024 | H12023 |
| Fabric | Totalcapacity(fabrics)(10,000meters) | 14,415.00 | 14,872.50 |
| Rateofcapacityutilization | 76% | 70% | |
| Plantsunderconstruction | TheCompany'sconvertiblebondfundraisingproject,the"OverseasProductLineProjectofHigh-gradeFabrics(PhaseI)",wasinprogress. | TheCompany'sconvertiblebondfundraisingprojects:The"FunctionalFabricIntelligentEco-parkProject(PhaseI)"withanannualcapacityof35millionmetersofhigh-gradefunctionalfabricsandthe"OverseasProductLineProjectofHigh-gradeFabrics(PhaseI)"wereinprogress. | |
| Apparel | Totalcapacity(apparel)(10,000pieces) | 1,220.00 | 1,115.00 |
| Rateofcapacityutilization | 82% | 84% | |
| Plantsunderconstruction |
Year-on-yearchangeintherateofcapacityutilizationabove10%
□Yes?NoOverseascapacity?Yes□No
| IndustryClassification | Item | Domestic | Overseas |
| Fabric | Percentageofcapacity | 74% | 26% |
| Capacitylayout | MainlyinShandongProvince | MainlyinSoutheastAsia | |
| Rateofcapacityutilization | 76% | 76% | |
| Apparel | Percentageofcapacity | 31% | 69% |
| Capacitylayout | MainlyinShandongProvince | MainlyinSoutheastAsia | |
| Rateofcapacityutilization | 83% | 82% |
2.Salesmodelandchannels
Productsaleschannelsandoperationmethodsa.SalesmodelTheCompanyadoptedtheorder-basedsalesmodel.Withtheself-ownedtrademark"Luthai"foritsfabricsales,itprovidedcustomerswithdevelopmentanddesignplansbasedoncustomerneeds,fabricsandpatternsleadingthemarket,fashionandtechnology,functionsandenvironmentalprotection.Shirtsweremainlymadeaccordingtotheordersofcustomersathomeand
abroad,andsoldbybrandowners.TheCompany'sself-ownedbrandwasoperatedthroughself-ownedexclusiveshopssuchasLuThaiExhibitionandSalesPavilion,countersofaffiliatedstoresinmallsande-networkingmarketing.Meanwhile,theCompanycouldprovidecustomerswithhigh-endcustomizedshirtsandcustomizedbusinessweartomeetthemarketdemandofthehigh-endserviceindustry.b.SaleschannelsDirectsales:TheheadquartersoftheCompanycarriedoutdirectinvestmentsandoperation,andoperatedandmanagedabrandattheheadquartersorbysettingupabranchcompanyinotherregionstoconcludetransactionswithcustomersoffline.Onlinesales:Throughself-developedplatformsandlargethird-partyonlineshoppingplatforms,theCompanyconcludedtransactionswithcustomersontheInternetanddeliveredgoodstocustomersbyexpressdeliveryservices.
Unit:RMB
| Saleschannels | Operatingrevenue | Costofsales | Grossprofitmargin | YoYchangeinoperatingrevenue | YoYchangeincostofsales | YoYchangeingrossprofitmargin |
| Onlinesales | 1,258,021.12 | 614,546.05 | 51.15% | -35.90% | -23.50% | -7.92% |
| Directsales | 2,013,366,369.87 | 1,481,150,559.52 | 26.43% | 3.86% | -1.54% | 4.03% |
| OEM/ODM | 612,087,251.71 | 463,996,203.96 | 24.19% | -11.86% | -11.98% | 0.10% |
3.Sellingexpenseandbreakdownthereof
Unit:RMB
| Item | H12024 | H12023 | Amountofchange | percentageofchange | Note |
| Salaries | 32,065,926.42 | 33,546,461.28 | -1,480,534.86 | -4.41% | |
| Marketingexpense | 16,111,399.23 | 16,171,875.20 | -60,475.97 | -0.37% | |
| Depreciationcosts | 3,344,566.64 | 3,510,556.38 | -165,989.74 | -4.73% | |
| Businesstravelexpenses | 3,231,195.05 | 3,906,192.17 | -674,997.12 | -17.28% | |
| Officecosts | 5,569,616.81 | 7,315,422.95 | -1,745,806.14 | -23.86% | |
| Others | 2,964,017.13 | 1,960,739.32 | 1,003,277.81 | 51.17% | Mainlyduetotheincreaseddesignandtestingcosts |
| Total | 63,286,721.28 | 66,411,247.30 | -3,124,526.02 | -4.70% |
4.Franchiseanddistribution
Franchiseesanddistributorsrecordedmorethan30%ofsalesrevenue
□Yes?No
5.Onlinesales
Onlinesalesrecordedmorethan30%ofsalesrevenue
□Yes?No
Self-developedsalesplatforms?Yes□No
| Startofoperation | 30March2009 |
| Numberofregisteredusers | 148,000 |
| Averagenumberofactivemonthlyusers(AMU) | 2,900 |
| Returnrateofmainbrands | 2.50% |
| Returnrateofmaintypes | 2.50% |
Cooperationwiththird-partysalesplatforms?Yes□NoOnlinesaleschannelsopenedorclosedbytheCompany
□Applicable?NotapplicableImpactontheCompanyinthecurrentperiodandsubsequentperiods:
Notapplicable.
6.AgencyoperationmodelAgencyoperationmodelinvolved
□Yes?No
7.Inventory
Inventory
| Mainproducts | Daysofturnoverofinventories | Quantityofinventory | Inventoryage | Year-on-yearchangeininventorybalance | Reason |
| Fabrics(10,000meters) | 98 | 3,688.24 | Within1year | 27.23% | Inventoriesincreasedyearonyearduetotheinputsduringthetrialproductionperiodoftheoverseasproductlineprojectofhigh-gradefabricsandlongerdeliverydaysforcertainorders. |
| Fabrics(10,000meters) | 717.69 | Over1year | -4.07% | ||
| Shirts(10,000pieces) | 31 | 142.35 | Within1year | 45.28% | Inventoriesincreasedtemporarilyduetotheneedtoroundupwholesaleshipmentsforsomeorders. |
| Shirts(10,000pieces) | 15.28 | Over1year | 8.52% |
Reservesforfallingpricesofinventory
| Item | Closingbalance | ||
| Grossamount | Fallingpricereservesorprovisionforimpairmentoncontractperformancecost | Carryingamount | |
| Rawmaterials | 920,639,465.98 | 48,933,964.67 | 871,705,501.31 |
| Goodsinprocess | 493,298,150.00 | 14,522,519.63 | 478,775,630.37 |
| Productsonhand | 946,421,769.26 | 186,436,309.51 | 759,985,459.75 |
| Commissionedproducts | 15,097,450.37 | 15,097,450.37 | |
| Materialsintransit | 16,942,695.35 | 16,942,695.35 | |
| Total | 2,392,399,530.96 | 249,892,793.81 | 2,142,506,737.15 |
Inventoryinformationofretailchannelssuchasfranchisedstoresordistributors:
Notapplicable.
8.Brandbuilding
Productionandsalesofbrandclothing,apparelandhometextileproducts?Yes□NoSelf-ownedbrands
| Brandname | Trademarkname | Mainproducttypes | Characteristics | Targetconsumergroup | Pricezoneofmainproducts | Mainsalesareas | Citylevels |
| LTGRFF | LTGRFF | Shirtsandsuits | Classicbusinessattire | Businesspeople | RMB500-3000 | EastChina,SouthChinaandSouthwestChina | Provincialcapitalcitiesandotherprefecture-levelcities |
Trademarkownershipdisputes
□Applicable?Notapplicable
9.Others
Engagedinbusinessrelatedtoappareldesign
□Yes?NoWhethertheCompanyheldmeetingsfortheplacementoforders
□Yes?No
VAnalysisofNon-CoreBusinesses
?Applicable□Notapplicable
Unit:RMB
| Amount | As%oftotalprofit | Source/Reason | Recurrentornot | |
| Returnoninvestment | -3,289,446.38 | -1.71% | Lossonheld-for-tradingfinancialassets | Not |
| Gain/lossonchangesinfairvalue | -112,539,827.27 | -58.34% | Lossonchangesinfairvalueofheld-for-tradingfinancialassets | Not |
| Assetimpairments | -34,719,445.19 | -18.00% | Inventoryvaluationallowances | Not |
| Non-operatingincome | 2,878,019.80 | 1.49% | Incomeofnon-operatingcompensation,etc | Not |
| Non-operatingexpense | 2,366,685.20 | 1.23% | Expensesonnon-operatingcompensation,etc | Not |
VIAnalysisofAssetsandLiabilities
1.SignificantChangesinAssetComposition
Unit:RMB
| 30June2024 | 31December2023 | Changeinpercentage(%) | Reasonforanysignificantchange | |||
| Amount | As%oftotalassets | Amount | As%oftotalassets | |||
| Monetaryassets | 1,670,720,493.53 | 12.14% | 1,558,252,048.03 | 11.60% | 0.54% | |
| Accountsreceivable | 725,190,840.90 | 5.27% | 826,467,684.78 | 6.15% | -0.88% | |
| Inventories | 2,142,506,737.15 | 15.56% | 2,124,139,574.70 | 15.82% | -0.26% | |
| Investmentproperty | 19,126,854.90 | 0.14% | 19,578,175.93 | 0.15% | -0.01% | |
| Long-termequityinvestments | 152,156,574.30 | 1.11% | 143,537,479.77 | 1.07% | 0.04% | |
| Fixedassets | 5,921,271,772.02 | 43.02% | 5,597,692,505.07 | 41.68% | 1.34% | |
| Constructioninprogress | 450,403,383.41 | 3.27% | 868,496,878.41 | 6.47% | -3.20% | |
| Right-of-useassets | 474,061,007.77 | 3.44% | 463,226,419.21 | 3.45% | -0.01% | |
| Short-termborrowings | 598,629,270.46 | 4.35% | 580,704,772.27 | 4.32% | 0.03% | |
| Contractliabilities | 165,982,780.07 | 1.21% | 188,073,335.89 | 1.40% | -0.19% | |
| Long-termborrowings | 706,355,559.41 | 5.13% | 259,992,974.40 | 1.94% | 3.19% | |
| Leaseliabilities | 99,631,923.14 | 0.72% | 86,580,224.41 | 0.64% | 0.08% | |
2.MajorAssetsOverseas
?Applicable□Notapplicable
| Asset | Source | Assetvalue(RMB) | Location | Managementmodel | Controlmeasurestoprotectassetsafety | Returngenerated(RMB) | As%oftheCompany’sequity | Materialimpairmentrisk(yes/no) |
| HongKongproject | Incorporated | 224,732,318.66 | HongKong | Marketing | MainmanagementpersonnelsentbytheCompanyastheparent | 8,466,357.71 | 2.32% | No |
| Americaproject | Incorporated | 1,301,982.12 | NewYork | Marketing | MainmanagementpersonnelsentbytheCompanyastheparent | 244,745.70 | 0.01% | No |
| SoutheastAsiaproject | Incorporated | 4,488,576,072.27 | SoutheastAsia | Investmentandproduction | MainmanagementpersonnelsentbytheCompanyastheparent | 104,476,137.30 | 46.30% | No |
3.AssetsandLiabilitiesatFairValue?Applicable□Notapplicable
Unit:RMB
| Item | Beginningamount | Gain/lossonfair-valuechangesintheReportingPeriod | Cumulativefair-valuechangeschargedtoequity | ImpairmentallowancefortheReportingPeriod | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Otherchange | Endingamount |
| Financialassets | ||||||||
| 1.Held-for-tradingfinancialassets(excludingderivativefinancialassets) | 713,539,243.86 | -73,666,442.19 | 672,455,029.38 | 572,017,773.95 | 740,310,057.10 | |||
| 2.Derivativefinancialassets | 10,261,031.53 | -4,942,381.29 | 2,108,000.00 | 6,125,900.00 | 1,300,750.24 | |||
| 5.Othernon-currentfinancialassets | 88,750,000.00 | 88,750,000.00 | ||||||
| Subtotaloffinancialassets | 812,550,275.39 | -78,608,823.48 | 674,563,029.38 | 578,143,673.95 | 830,360,807.34 | |||
| Others | 18,248,205.76 | -47,513.49 | -11,278,478.86 | 6,922,213.41 | ||||
| Totaloftheabove | 830,798,481.15 | -78,608,823.48 | -47,513.49 | 674,563,029.38 | 578,143,673.95 | -11,278,478.86 | 837,283,020.75 | |
| Financialliabilities | 46,785,831.47 | 33,931,003.79 | 218,400.00 | 218,400.00 | 80,716,835.26 |
Contentofotherchange:
Changesinaccountsreceivablefinancing.SignificantchangestothemeasurementattributesofthemajorassetsintheReportingPeriod:
□Yes?No
4.RestrictedAssetRightsasatthePeriod-End
Fordetails,seePartX.VII.22.AssetswithrestrictedownershipandusingrightinthisReport.VIIInvestmentsMade
1.TotalInvestmentAmount
□Applicable?Notapplicable
2.MajorEquityInvestmentsMadeintheReportingPeriod
□Applicable?Notapplicable
3.MajorNon-EquityInvestmentsOngoingintheReportingPeriod
□Applicable?Notapplicable
4.FinancialInvestments
(1)SecuritiesInvestments
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
(2)InvestmentsinDerivativeFinancialInstruments?Applicable□Notapplicable
1)DerivativeInvestmentsforHedgingPurposesduringtheReportingPeriod?Applicable□Notapplicable
Unit:RMB'0,000
| Typeofderivative | Initialinvestmentamount | Beginningamount | Gain/lossonfair-valuechangesintheReportingPeriod | Cumulativefair-valuechangesrecordedinequity | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Endingamount | ProportionofclosinginvestmentamountintheCompany’sendingnetassets |
| Foreignexchangeoption | 56,400 | 56,400 | 0 | 0 | 0 | 56,400 | 0 | 0.00% |
| Total | 56,400 | 56,400 | 0 | 0 | 0 | 56,400 | 0 | 0.00% |
| WhethersignificantchangesoccurredtotheCompany’saccountingpolicyandspecificaccountingprinciplesofderivativesintheReportingPeriodcomparedtothepreviousReportingPeriod | Nosignificantchanges | |||||||
| Actualgain/lossintheReportingPeriod | 1.Asof30June2024,theCompanyheld0unduefinancialderivativescontracts.2.FromJanuarytoJune2024,thetotalamountofallduefinancialderivativesoftheCompanywasequivalenttoUSD94million,whichwereallimplementedbasedoncontracts.USD94millionofthesecontractswassettled,incurringanetlossofRMB2.7570million. | |||||||
| Effectivenessofhedges | TheCompanyconductsforeignexchange(FX)derivativetransactionswiththeintentionofhedging.Specifically,thebusinessiscarriedouttofixcosts,avoidexchangeraterisksandimproveresistanceagainstFXratefluctuations.Asaresult,theCompanyhasgainedbettercapabilitiesofavoidingandpreventingtherisksofFXratefluctuations,andthefinancialrobustnessoftheCompanyhasbeenenhanced. | |||||||
| Capitalsourceforderivativeinvestment | TheCompany’sownmoney | |||||||
| Analysisonrisksandcontrol | TheCompanyconductedderivativesproductstransactioninorderforhedging.Andtheforwardsettlementhedgingwasoperatedbyinstallments,withtherelevantamountnotmorethantheplannedderivatives | |||||||
| measuresofderivativeproductsheldintheReportingPeriod(includingbutnotlimitedtomarketrisk,liquidityrisk,creditrisk,operationrisk,lawrisk,etc.) | productstransactions.Andallderivativesproductstransactionwaszero-deposit.Meanwhile,theCompanyhadacompleteriskcontrolsystemforsufficientanalysisandpreventionofpossibleriskssuchasmarketrisk,liquidityriskandcreditrisk,operationriskandriskoflawsandregulation.1.Marketrisk:Whentheinternationalanddomesticeconomicsituationschange,thecorrespondingchangesinexchangeratesandinterestratesmayhaveanadverseimpactonthefinancialderivativetransactionsoftheCompany.Precautions:TheCompanychoosesfinancialinstrumentswithsimplestructures,highliquidityandcontrollableriskandstrictlycontrolsthescaleofderivativetransactions,performingthembystagesandinbatches.Meanssuchasextensionandbalancesettlementcanbeadoptedtoensurecontractperformanceafterthecontractexpires.2.Liquidityriskandcreditrisk:CreditriskariseswhentheCompanyorcounterpartiesintransactionscouldn’tperformcontractsduenow,toliquidityorotherfactorsthatresultinfurthereconomicloss.Precautions:Thederivativetransactionscanonlybedonewithfinancialinstitutionsqualifiedforderivativetransactions,asauthorizedbyrelevantnationalauthoritiesorfinancialorforeignexchangeauthoritiesinthecountryorregionwheretheCompanyoperates.Derivativetransactionswithotherinstitutionsorindividualsarenotallowedsoastocontrolrelatedriskconcerningcounterparties.3.Internalriskcontrol:Derivativetransactionsarehighlyspecializedandcomplex.Therefore,thereisariskoflossinderivativetransactionsduetotheimperfectinternalcontrolsystemwhenbusinessisperformed.Precautions:TheCompanyshouldstrictlyimplementManagementPolicyforInvestmentsinSecuritiesandDerivativeTransactionsofLuThaiTextileCo.,Ltd.,continuouslyoptimizethebusinessoperationprocessandauthorizationmanagementsystem,strengthenprofessionalethicseducationandbusinesstrainingforrelevantpersonnel,clarifyjobresponsibilities,engageinderivativetransactionbusinessstrictlywithinthescopeofauthorization,andestablishatimelyreportingsystemforabnormalconditionstoavoidoperationalrisks.4.Riskoflawsandregulation:DerivativetransactionsoftheCompanymustbestrictlyincompliancewithrelevantnationallawsandregulations.Otherwise,signedcontracts,commitmentsandotherlegaldocumentsmayentailcomplianceriskandregulatoryriskintermsofeffectivenessandenforceability.Precautions:TheCompanyshouldstrengthenthesupervisionandinspectionofthestandardizationofderivativetransactions,theeffectivenessofinternalcontrolmechanism,andtheauthenticityofinformationdisclosuretoavoidpossiblelegalrisks.TheCompanyhasfulfilledrelevantapprovalproceduresforitsderivativetransactionsbusiness,whichisinlinewiththerelevantnationallaws,regulations,theArticlesofAssociation,theManagementRulesofLuThaiforDerivativesTrading,andtheProposalontheCompany'sDerivativeTransactionPlandeliberatedandadoptedattheninthmeetingofthe10thsessionoftheBoardofDirectorsheldon26May2023,andfulfilledtherelevantinformationdisclosureobligations. |
| ChangesofmarketpricesorfairvaluesintheReportingPeriodoftheinvestedderivatives.Andtheanalysisonthefairvalueofthederivativesshouldincludethespecificusemethodsandtherelevantassumptionsandparameters. | InaccordancewiththerelevantprovisionsandguidelinesoftheAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstrumentsandtheAccountingStandardsforBusinessEnterprisesNo.37-PresentationofFinancialInstrumentsissuedbytheMinistryofFinance,theCompanytooktherelevantaccountingmeasuresforitsbusinessofFXderivativetransactionstoreflecttherelevantitemsinthebalancesheetandtheincomestatement.DuringtheReportingPeriod,theCompanydeterminedthefairvalueofFXoptionsbasedonthebank’sforwardoptionquotationsattheendoftheperiod. |
| Lawsuit(ifapplicable) | N/A |
| Disclosuredateofboardofdirectorsannouncementonapprovalofderivativeinvestment(ifany) | 27May2023 |
2)DerivativeInvestmentsforSpeculativePurposesduringtheReportingPeriod
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
5.UseofFundsRaised
?Applicable□Notapplicable
(1)OverallUseofFundsRaised?Applicable□Notapplicable
Unit:RMB’0,000
| Raisingyear | Raisingmanner | Totalofraisedcapital | Netproceeds | Totalofraisedcapitalusedinthisperiod | Cumulativeamountofraisedcapitalused | Totalofraisedcapitalwhichpurposeischangedinthereportperiod | Cumulativeamountofraisedcapitalwhichpurposeischanged | Ratioofcumulativeamountwhichpurposeischanged | Totalofraisedcapitalunused | Purposeanddirectionofraisedcapitalunused | Amountofraisedcapitalunusedfortwoyears |
| 2020 | Convertiblebonds | 140,000 | 138,546 | 7,241.65 | 141,739.49 | 0 | 51,371.58 | 36.69% | 2,490.38 | Depositedintheraisedcapitalaccount | 0 |
| Total | -- | 140,000 | 138,546 | 7,241.65 | 141,739.49 | 0 | 51,371.58 | 36.69% | 2,490.38 | -- | 0 |
| Generalusesituationofraisedcapital | |||||||||||
| (I)AmountofactualraisedcapitalandarrivaldateUponapprovalbyChinaSecuritiesRegulatoryCommissioninthedocument“ZJXK[2020]299”,theCompanypublicallyissued14,000,000convertiblebondson9April2020atparvalueRMB100,theissuedamountwasRMB1.4billion,andtheCompanyactuallyreceivedtheamountofraisedcapitalRMB1.388billionafterdeductedtheunderwritingfeeRMB12million.TheaboveamountwasremittedincashinRMB.Afterdeductedlegalfee,accountantfee,creditratingfee,informationdisclosurefee,issuingcommissionandothercostsRMB2.54millionintotalfromtheaboveactuallyraisedcapital,thenetamountofraisedcapitalwasRMB1385.46million,whichenteredtheaccounton15April2020,andGrantThorntonInternationalLtd(SpecialGeneralPartnership)issuedthecapitalverificationreportwithreferenceNo.GrantThorntonVerification[2020]371ZC0090foritafterverification.(II)UsesituationandbalanceofraisedcapitalAsat30June2024,theCompanydirectlyinvestedRMB1,417.3949millionintotalfromtheraisedcapitalforitsraisedcapitalinvestmentprojects.TheunusedamountwasRMB24.9038million. | |||||||||||
(2)CommitmentsonProjectswithFundsRaised?Applicable□Notapplicable
Unit:RMB’0,000
| Committedinvestmentprojectsandusedirectionofoverraisedcapital | Whethertheprojectsarechanged(includingpartiallychangedprojects) | Totalofcommittedinvestmentofraisedcapital | Totalinvestmentaftermodification(1) | Amountinvestedinthisreportperiod | Cumulativeinvestmentamountbytheendofperiod(2) | Investmentprogressbytheendofperiod(3)＝(2)/(1) | Datewhentheprojectreachedtheintendedavailablestatus | Benefitrealizedinthisreportperiod | Whetherreachedtheexpectedbenefit | Whetherprojectfeasibilitychangedsignificantly |
| Committedinvestmentprojects | ||||||||||
| Functionalfabricsmarteco-park | Yes | 85,000 | 58,628.42 | 0 | 58,628.42 | 100.00% | 31December2024 | 0 | N/A | No |
| project(Phase1) | ||||||||||
| Overseashigh-endfabricproductlineproject(PhaseI) | Yes | 25,000 | 34,000 | 2,176.77 | 33,158.2 | 97.52% | 31December2024 | 0 | N/A | No |
| Supplementworkingcapital | Yes | 28,800 | 46,171.58 | 5,064.88 | 49,952.87 | 108.19% | 0 | N/A | No | |
| Subtotalofcommittedinvestmentprojects | -- | 138,800 | 138,800 | 7,241.65 | 141,739.49 | -- | -- | 0 | -- | -- |
| Usedirectionofoverraisedcapital | ||||||||||
| N/A | ||||||||||
| Repaymentofbankloans(ifany) | -- | 0 | 0 | 0 | 0 | 0.00% | -- | -- | -- | -- |
| Supplementworkingcapital(ifany) | -- | 0 | 0 | 0 | 0 | 0.00% | -- | -- | -- | -- |
| Subtotalofusedirectorofoverraisedcapital | -- | 0 | 0 | 0 | 0 | -- | -- | -- | -- | |
| Total | -- | 138,800 | 138,800 | 7,241.65 | 141,739.49 | -- | -- | 0 | -- | -- |
| Explainprojectbyprojectsituationandreasonsthatitdidnotreachtheplannedprogressorexpectedreturn(includingreasonforinputting“N/A”for“Whetherreachedtheexpectedbenefit”) | Thefunctionalfabricsmarteco-parkproject(Phase1)isinthetechnologyandproductionramp-upstage,andtheoverseashigh-endfabricproductlineproject(PhaseI)isintheproductionramp-upstage.Theseprojectshavenotyetformedalarge-scaleproductionorachievedtheexpectedrevenue. | |||||||||
| Noteforsignificantchangeofprojectfeasibility | N/A | |||||||||
| Amount,purposeanduseprogressofoverraisedcapital | N/A | |||||||||
| Changeofimplementati | N/A | |||||||||
| onsiteofcapitalraisingproject | |
| Adjustmentofimplementationmodeofcapitalraisingproject | N/A |
| Advanceinvestmentanddisplacementofcapitalraisingproject | Applicable |
| By30April2020,thetotalamountofdisplacedcapitalwasRMB191.4288million,includingtheamountRMB189.8388millioninvestedintheprojectwiththeself-raisedcapitaloftheCompanyinadvance,andpaymentofissuingcostRMB1.59millionwithitsself-raisedcapital. | |
| Temporarysupplementtoworkingcapitalwithunusedraisedcapital | N/A |
| Balanceofraisedcapitalafterimplementofprojectandrelevantreasons | N/A |
| Purposeandusedirectionofunusedraisedcapital | By30June2024,RMB24.9038millionofunusedraisedcapitalwasdepositedintheraisedcapitalaccount. |
| Problemsexistinginuseandinformationdisclosureofraisedcapitalorothersituation | None |
(3)ChangesinProjectswithFundsRaised?Applicable□Notapplicable
Unit:RMB’0,000
| Itemsafterchanges | Correspondingoriginalcommitteditems | Amountofplannedfundsinvestedafterchanges(1) | ActualinvestmentamountintheReportingPeriod | Accumulativeinvestmentamountastheperiod-end(2) | Investmentscheduleastheperiod-end(3)=(2)/(1) | Dateofreachingintendeduseoftheproject | RealizedincomeintheReportingPeriod | Whetherreachedanticipatedincome | Whetheroccurredsignificantchangesinprojectfeasibility |
| Overseas | High-end | 34,000 | 2,176.77 | 33,158.2 | 97.52% | 31December | 0 | N/A | No |
| high-endfabricproductionlineproject(PhaseI) | printinganddyeingfabricproductionlineproject,functionalfabricsmarteco-parkproject | 2024 | |||||||
| Total | -- | 34,000 | 2,176.77 | 33,158.2 | -- | -- | 0 | -- | -- |
| Notesofreasonsforchanges,decision-makingproceduresandinformationdisclosure(byspecificitems) | InaccordancewiththeCompany'sglobalstrategiclayoutandmarketdemand,theCompanyplannedtoadjustitscapacitystructure.1.On9June2022,thesecondextraordinarygeneralmeetingandthefirstbondholders'meetingof2022deliberatedandadoptedtheProposalonChangingthePurposeofPartialRaisedCapitalUnused.Theaimwastoterminatethe"High-endprintinganddyeingfabricproductionlineproject"andleveragetheraisedcapitalofthisprojectofRMB250millionforconstructionofoverseashigh-endfabricproductionlineproject(PhaseI),disclosedon10June2022onthecninfowebsite("www.cninfo.com.cn").2.On25September2023,thesecondextraordinarygeneralmeetingandthefirstbondholders'meetingof2023deliberatedandadoptedtheProposalonChangingthePurposeofPartialRaisedCapitalUnused.TheCompanydecidedtorepurposedtheremainingraisedfundsofthe“functionalfabricsmarteco-parkproject(PhaseI)implementedbyitsmajority-ownedsubsidiaryShandongLulianNewMaterialsCo.,Ltd.,usingRMB90millionoftheremainingraisedfundsforthe“overseashigh-endfabricproductionlineproject(PhaseI)”,whichhavebeendisclosedonthecninfowebsite("www.cninfo.com.cn")dated26September2023and27September2023,respectively. | ||||||||
| Conditionandreasonfornotreachingthescheduleandanticipatedincome(byspecificitems) | N/A | ||||||||
| Notesofconditionofsignificantchangesoccurredinprojectfeasibilityafterchanges | N/A | ||||||||
VIIISaleofMajorAssetsandEquityInterests
1.SaleofMajorAssets
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
2.SaleofMajorEquityInterests
□Applicable?Notapplicable
IXMajorSubsidiaries
?Applicable□NotapplicableMajorfully/majority-ownedsubsidiariesandthoseminority-ownedsubsidiarieswithanover10%effectontheCompany’snetprofit:
Unit:RMB
| Name | Relationshipwiththe | Principalactivity | Registeredcapital | Totalassets | Netassets | Operatingrevenue | Operatingprofit | Netprofit |
| Company | ||||||||
| LufengWeaving&DyeingCo.,Ltd. | Subsidiary | Fabric | 706160000 | 1,636,673,080.72 | 1,492,494,621.19 | 642,748,692.32 | 51,824,048.64 | 43,872,724.61 |
| ShandongLulianNewMaterialsCo.,Ltd. | Subsidiary | Fabric | 400000000 | 653,479,913.26 | 79,075,762.76 | 54,051,010.62 | -23,926,962.11 | -23,833,476.77 |
SubsidiariesobtainedordisposedintheReportingPeriod:
□Applicable?NotapplicableInformationaboutmajormajority-andminority-ownedsubsidiaries:
LuFengCompanyLimited(hereinafterreferredtoas“LuFeng”)istheholdingsubsidiaryoftheCompany.Registrationplace:Zibo,Shandong;registeredcapital:RMB706.160million.Themainlymanufacturingandsellingtextileprintinganddyeingproductsandtheproductsofclothingandgarments,anditwereauthenticatedtobehigh-techenterpriseinOctober2014.DuringtheReportingPeriod,LuFengincreaseditscapacityutilisationrateandenhancedtheeconomiesofscale.ShandongLulianNewMaterialsCo.,Ltd.(hereinafterreferredtoas"LulianNewMaterials")istheholdingsubsidiaryoftheCompany.Registrationplace:Zibo,Shandong;registeredcapital:RMB400million.ItwasestablishedinApril2019andmainlymanufacturingandsellingfunctionalfabrics.DuringtheReportingPeriod,therelevantexpenseswerereduced.Asapprovedatthe
rd
Meetingofthe10
thBoardofDirectors,theCompanyacquired25%equityinterestsinLulianNewMaterialsheldbytheHongKong-basedTALApparelLimitedwithitsownfundsofRMB25.9252million.Theregistrationofthechangeofequityinterestswascompletedon12July2024,andLulianNewMaterialshasbecomeawholly-ownedsubsidiaryoftheCompany.XStructuredBodiesControlledbytheCompany
□Applicable?Notapplicable
XIRisksFacingtheCompanyandCountermeasures
1.Impactofeconomicenvironment:undertheuncertaintyriskoftheglobaleconomicenvironment,thegeopoliticalconflictriskandtheweakeconomicgrowth,theCompanywillfacechallengesintermsofinternationaltradepoliciesandmarketchanges.Inresponse,theCompanywillrelyonitsglobalbusinessnetworkandverticalindustrialchain,furtherutilizevariousresourcesathomeandabroad,andkeepdevelopingdomesticandoverseasmarkets.
2.Pricefluctuationofrawmaterials:cottonisthemajorproductionmaterialoftheCompany,andthepriceofcottonisimpactedbymarketsupplyanddemand,climate,policy,exchangerateandotherfactors.Therefore,theCompanycoordinatesdomesticandoverseasproduction,deeplystudiestheinformationofglobalcottonmarket,properlyworksoutprocurementstrategyandgivesfullplaytotheadvantagesofglobalprocurementofhigh-qualityrawcotton.
3.Changeofexchangerate:theCompanyhasalargeratioinimportandexportbusiness,whichismostlysettledinUSD.Inrecentyears,thebi-directionalfluctuationsinRMBexchangeratehavebecomeincreasinglynormal,withasignificantincreaseinexchangerateflexibility.Tolowertheimpactofexchangeratefluctuations,theCompanystucktotherisk-neutralmanagementphilosophy.Basedonactualneedsarisingfromproductionandoperations,itincorporatedexchangeraterisksintoroutineoperationsmanagement,andflexiblyallocateddifferenttypesandmaturitiesofforeignexchangederivativesforhedgingpurposestominimizetheinfluenceofexchangeraterisksonitsoperatingresults.Firstly,theCompanyappropriatelyconductedforeignexchangehedging,usingfinancialderivativessuchasforwards,swaps,andoptionportfoliostoavoidcurrencyrisks.Secondly,the
Companymadereasonablearrangementonsettlementdayandcurrencyandvigorouslypromotedcross-bordersettlementwithRMBtoavoidexchangerate-relatedrisks.Thirdly,theCompanyadjustedtheRenminbiandforeign-currencyliabilitiesstructuretoactivelypreventcurrencyfluctuationrisks.XIIImplementationofthe“QualityandEarningsDualImprovement”ActionPlanIndicatewhethertheCompanyhasdisclosedthe“QualityandEarningsDualImprovement”ActionPlan.
□Yes?No
PartIVCorporateGovernanceIAnnualandExtraordinaryGeneralMeetingConvenedduringtheReportingPeriod
1.GeneralMeetingsConvenedduringtheReportingPeriod
| Meeting | Type | Investorparticipationratio | Conveneddate | Disclosuredate | Indextodisclosedinformation |
| TheFirstExtraordinaryGeneralMeetingof2024 | ExtraordinaryGeneralMeeting | 33.02% | 5February2024 | 6February2024 | 10proposalswereapproved,includingtheProposalonAmendingCertainProvisionsoftheArticlesofAssociationofLuThaiTextileCo.,Ltd. |
| The2023AnnualGeneralMeeting | AnnualGeneralMeeting | 35.28% | 15May2024 | 16May2024 | Sixproposalswereapproved,includingtheProposalon2023AnnualWorkReportoftheBoardofDirectors. |
| TheSecondExtraordinaryGeneralMeetingof2024 | ExtraordinaryGeneralMeeting | 34.62% | 14June2024 | 15June2024 | Twoproposalswereapproved,includingtheProposalontheBy-electionofMr.ShangChenggangasaSupervisorofthe10thSupervisoryCommittee. |
2.ExtraordinaryGeneralMeetingConvenedatRequestofPreferenceShareholderswithResumedVotingRights
□Applicable?Notapplicable
IIChangeofDirectors,SupervisorsandSeniorManagement
?Applicable□Notapplicable
| Name | Officetitle | Typeofchange | Date | Reason |
| FujiwaraMatsuzaka | Seniormanagement | Dismissed | 2January2024 | Jobarrangement |
| ZhangKeming | BoardSecretary | Dismissed | 19April2024 | Jobarrangement |
| ZhengWeiyin | BoardSecretary | Appointed | 25April2024 | |
| ShangChenggang | Seniormanagement | Dismissed | 25May2024 | Jobarrangement |
| ZhangShougang | ChairmanoftheSupervisoryCommittee | Resignation | 14June2024 | Personalreason |
| ShangChenggang | ChairmanoftheSupervisoryCommittee | Elected | 14June2024 |
IIIInterimDividendPlan
?Applicable□Notapplicable
| Bonussharesforevery10shares(share) | 0 |
| Dividendforevery10shares(RMB)(taxinclusive) | 1.00 |
| Totalsharesasthebasisfortheprofitdistributionproposal(share) | 817,305,896 |
| Cashdividends(RMB)(taxinclusive) | 81,730,589.60 |
| Cashdividendsinotherforms(suchassharerepurchase)(RMB) | 37,866,957.62 |
| Totalcashdividends(includingthoseinotherforms)(RMB) | 119597547.22 |
| Distributableprofit(RMB) | 5,894,332,490.12 |
| Totalcashdividends(includingthoseinotherforms)as%oftotalprofitdistribution | 100% |
| Cashdividendpolicy | |
| IftheCompanyisinamaturedevelopmentstageandhasplansforanysignificantexpenditure,inprofitallocation,theratioofcashdividendsintheprofitallocationshallbe40%orabove. | |
| Detailsabouttheproposalforprofitdistributionandconvertingcapitalreserveintosharecapital | |
| TheCompanyplanstodistributeacashdividendofRMB1.00(inclusiveoftax)forevery10shares,basedonacapitalbaseof817,305,896shares.ThetotalamountofdividendscalculatedonthisbasisisRMB81,730,589.60.TheindividualincometaxforAShareshallbesubjecttorelatedregulationsunderCS[2015]No.101NoticeonCertainQuestionabouttheDifferentiatedIndividualIncomeTaxPolicyforCashDividendofListedCompaniesjointlyissuedbyMinistryofFinance,SAT,andCSRC;andthatforBShareshallbeconversedtoHKDbasedonthecentralparityrateoninterbankexchangemarketreleasedbythePeople’sBankofChinaonthefollowingdayaftershareholder’smeeting(fordomesticindividualshareholders,taxispaidpursuanttoCS[2015]No.101;forforeignshareholders,taxisfreepursuanttoCSZ(1994)No.020regulations;andnon-residentialcorporateshareholdersisentitledtoa10%reductionofenterpriseincometaxaccordingtorelatedregulationsunderEnterpriseIncomeTaxLawofthePeople’sRepublicofChina).SincetheCompanyisintheperiodoftransferringconvertiblebondsintoshares,theprofitdistributionwillbeconductedbasedonthetotalsharecapitalontheequityregistrationdateforimplementingthisprofitdistributionplanwithnochangeintheamountpershare. | |
IVEquityIncentivePlans,EmployeeStockOwnershipPlansorOtherIncentiveMeasuresforEmployees?Applicable□Notapplicable
1.EquityIncentive
| No. | Deliberationtime | Relevantmeeting | Overviewofexecution | Disclosureindex |
| 1 | 19January2024 | 18thMeetingofthe10thBoardofDirectorsand12thMeetingofthe10thSupervisoryCommittee | TheBoardofDirectorsreviewedandapprovedtheProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveCondition.TheSupervisoryCommitteereviewedandapprovedtheforegoingproposalandissuedthewrittenreviewopinion.BeijingDHHLawFirmQingdaoOfficeissuedalegalopinion. | Fordetails,seetherelevantdocumentsdisclosedon20January2024onwww.cninfo.com.cn. |
| 2 | 5February2024 | FirstExtraordinaryGeneralMeetingof2024 | ItdeliberatedonandapprovedtheProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveConditionanddisclosedtheAnnouncementofCapitalReductiononRepurchaseandCancelPartialRestrictedShareson7February2024. | Fordetails,seetherelevantannouncement(No.:2024-012)disclosedon7February2024onwww.cninfo.com.cn. |
| 3 | 10April2024 | 20thMeetingofthe10thBoardofDirectorsand13thMeetingofthe10thSupervisoryCommittee | TheBoardofDirectorsreviewedandapprovedtheProposalontheAchievementofLiftingtheRestrictionConditionsintheSecondRestrictionPeriodfortheReservedSharesforGrantunderthe2021RestrictedShareIncentiveScheme.TheSupervisoryCommitteereviewedandapprovedtheforegoingproposalandissuedthewrittenreviewopinion.BeijingDHHLawFirmQingdaoOfficeissuedalegalopinion.Thenumberofsubjectsofincentivemeetingtherestrictionliftingconditionsinthesecondrestrictionperiodforthereservedsharesforgrantunderthe2021RestrictedShareIncentiveSchemeoftheCompanywasupto340,andatotalof2.9015millionrestrictedshareswereliftedoutofrestrictions. | Fordetails,seetherelevantannouncementdisclosedon12April2024onwww.cninfo.com.cn. |
| 4 | 24April2024 | - | AsauditedandconfirmedbyShenzhenStockExchangeandtheShenzhenBranchofChinaClear,theproceduresofrepurchasingandcanceling66,500sharesofauthorizedandunlockedrestrictedshareoftheincentivepersonnelnotconformingtotheincentiveconditionwerecompleted. | Fordetails,seetherelevantannouncement(No.:2024-030)disclosedon24April2024onwww.cninfo.com.cn. |
| 5 | 27April2024 | - | ItissuedtheIndicativeAnnouncementontheTradingontheMarketofLiftingtheRestrictionintheSecondRestrictionPeriodfortheReservedSharesforGrantofthe2021RestrictedShareIncentiveScheme.Thedatefortradingwasfrom6May2024. | Fordetails,seetherelevantannouncement(No.:2024-035)disclosedon27April2024onwww.cninfo.com.cn. |
| 6 | 28May2024 | 22ndMeetingofthe10thBoardofDirectorsand15thMeetingofthe10thSupervisoryCommittee | TheBoardofDirectorsreviewedandapprovedtheProposalontheAchievementofLiftingtheRestrictionConditionsintheThirdRestrictionPeriodfortheFirstGrantofthe2021RestrictedShareIncentiveSchemeandtheProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveCondition.TheSupervisoryCommitteereviewedandapprovedtheforegoingtwoproposalsandissuedthewrittenreviewopinions.BeijingDHHLawFirmQingdaoOfficeissuedalegalopinion.Thenumberofsubjectsofincentivemeetingtherestrictionliftingconditionsinthethirdrestrictionperiodforthefirstgrantofthe2021RestrictedShareIncentiveSchemeoftheCompanywasupto704,andatotalof6.9015millionrestrictedshareswereliftedoutofrestrictions. | Fordetails,seetherelevantannouncementdisclosedon29May2024onwww.cninfo.com.cn. |
| 7 | 4June2024 | - | ItissuedtheIndicativeAnnouncementontheTradingontheMarketofLiftingtheRestrictionintheThirdRestrictionPeriodfortheFirstGrantofthe2021RestrictedShareIncentiveScheme.Thedatefortradingwasfrom7June2024. | Fordetails,seetherelevantannouncement(No.:2024-047)disclosedon4June2024onwww.cninfo.com.cn. |
| 8 | 14June2024 | SecondExtraordinaryGeneralMeetingof2024 | ItdeliberatedonandapprovedtheProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveConditionanddisclosedtheAnnouncementofCapitalReductiononRepurchaseandCancelPartialRestrictedShareson15June2024. | Fordetails,seetherelevantannouncement(No.:2024-051)disclosedon15June2024onwww.cninfo.com.cn. |
2.ImplementationofEmployeeStockOwnershipPlan
□Applicable?Notapplicable
3.OtherIncentiveMeasuresforEmployees
?Applicable□NotapplicableForthesecondrestrictedperiodofthereservedgrantofsharesofthe2021restrictedshareincentivescheme,therestrictedshareswerereleasedfortradingon6May2024.Excludingdirectorsandseniorexecutives,theCompanyliftedtherestrictionson2.4265millionrestrictedsharesfor331mid-levelmanagersandcorepersonnel.Forthethirdrestrictedperiodoftheinitialgrantofsharesofthe2021restrictedshareincentivescheme,therestrictedshareswerereleasedfortradingon7June2024.Excludingdirectorsandseniorexecutives,theCompanyliftedtherestrictionson6.3915millionrestrictedsharesfor695mid-levelmanagersandcorepersonnel.
PartVEnvironmentalandSocialResponsibilityIMajorEnvironmentalIssues
IndicatebytickmarkwhethertheCompanyoranyofitssubsidiariesisaheavilypollutingbusinessidentifiedbytheenvironmentalprotectionauthoritiesofChina.?Yes□NoPoliciesandindustrystandardspertainingtoenvironmentalprotectionDuringproductionandoperation,LuThaiTextileCo.,Ltd.anditssubsidiaries,LuFengCompanyLimitedandShandongLulianNewMaterialsCo.,Ltd.,ZiboXinshengThermalPowerCo.,Ltd.,aresubjecttothefollowinglawsandregulationsandindustrystandardsrelatedtoenvironmentalprotection:TheEnvironmentalProtectionLawofthePeople’sRepublicofChina,theLawofthePeople’sRepublicofChinaonPreventionandControlofWaterPollution,theLawofthePeople’sRepublicofChinaonthePreventionandControlofAtmosphericPollution,theLawofthePeople’sRepublicofChinaonthePreventionandControlofSolidWastePollution,theContingencyManagementMeasuresforEnvironmentalEmergencies,theEmissionStandardsofWaterPollutantsinTextileDyeingandFinishingIndustry(GB4287-2012),theStandardforPollutionControlontheMunicipalSolidWasteIncineration(GB18485-2014),andtheEmissionStandardofAirPollutantsofThermalPowerPlants(DB37/664-2019).StatusofenvironmentalprotectionadministrativelicenseLuThaiTextileCo.,Ltd.anditssubsidiaries,includingLuFengCompanyLimited,ShandongLulianNewMaterialsCo.,Ltd.,andZiboXinshengThermalPowerCo.,Ltd.carriedoutpollutantdischargepermitmanagementandweregrantedthepollutantdischargepermitbytheEcologyandEnvironmentBureauofZibo.ThecurrentpollutantdischargepermitofLuThaiTextileCo.,Ltd.isvaliduntil9June2026;thatofLuFengCompanyLimitedisvaliduntil22November2026;thatofShandongLulianNewMaterialsCo.,Ltd.isvaliduntil25October2026;thatofZiboXinshengThermalPowerCo.,Ltd.isvaliduntil22June2025.Theregulationsforindustrialemissionsandtheparticularrequirementsforcontrollingpollutantemissionsthoseareassociatedwithproductionandoperationalactivities.
| Nameofpolluter | Typeofmajorpollutants | Nameofmajorpollutants | Wayofdischarge | Numberofdischargeoutlets | Distributionofdischargeoutlets | Dischargeconcentration/intensity | Dischargestandardsimplemented | Totaldischarge | Approvedtotaldischarge | Excessivedischarge |
| LuThaiTextileCo.,Ltd | Sewage | CODandammonianitrogen | Continuousdischarge | 2 | ChiefdischargeoutletofHuangjiapuIndustrialPark;chiefdischargeoutletofEastZone | COD≤200mg/L;ammonianitrogen≤20mg/L | EmissionstandardofwaterpollutantsintextiledyeingandfinishingindustryGB4287-2012 | COD：134.606t;ammonianitrogen1.346t | COD:1495.08t,ammonianitrogen:149.51t | No |
| LuFengCompanyLimited | Sewage | CODandammonianitrogen | Continuousdischarge | 1 | ChiefdischargeoutletofLuFengCompany | COD≤200mg/L;ammonianitrogen≤20mg/L | Emissionstandardofwaterpollutantsintextiledyeingandfinishing | COD：52.137t;ammonianitrogen0.508t | CODis653.53t,ammonianitrogenis65.3t | No |
| Limited | industryGB4287-2012 | |||||||||
| ShandongLulianNewMaterialsCo.,Ltd. | Sewage | CODandammonianitrogen | Continuousdischarge | 1 | ChiefdischargeoutletofLulianNewMaterials | COD≤200mg/L;ammonianitrogen≤20mg/L | EmissionstandardofwaterpollutantsintextiledyeingandfinishingindustryGB4287-2012 | COD：8.03t;ammonianitrogen0.189t | CODis175.30t,ammonianitrogenis17.5t | No |
| ZiboXinshengThermalPowerCo.,Ltd. | Wastegas | SO2,NQx,andPM | Organizedcontinuousdischarge | 4 | Productionplant | SO2：≤35mg/m3,NQx：≤50mg/m3,PM:≤5mg/m3 | EmissionstandardofairpollutantsofThermalPowerPlantinShandongProvinceDB37/664-2019 | SO2:11.16t,NQx:88.9t,PM:3.48t | SO2is236.13t/a,NQx:674.63t/a,PM:67.47t/a. | No |
TreatmentofpollutantsLuThaiTextileCo.,Ltd.(hereinafterreferredtoas“theCompany”)anditssubsidiaryLufengWeaving&DyeingCo.,Ltd.(hereinafterreferredtoas“LufengWeaving&Dyeing”)andShandongLulianNewMaterialsCo.,Ltd.(hereinafterreferredtoas“LulianNewMaterials”)strictlyimplementthe“ThreeSimultaneous”managementsystemforenvironmentalprotectioninprojectconstructions.Thecompaniesareequippedwithcompletefacilitiesforwastegasandwastewatertreatment.LuThaiTextileCo.,Ltd.anditsmajority-ownedsubsidiaryLufengWeaving&DyeingCo.,Ltd.andShandongLulianNewMaterialsCo.,Ltd.continuouslyoptimizethedyeingwastewatertreatmentprogress,improvethetreatedwaterquality,ensurethatthepollutantemissionconcentrationisbetterthanthenationalstandard,furtherimprovetheriverwaterqualityandlocalecologicalenvironment.TheCompanyandLufengWeaving&Dyeingcentralizedlycollectedandcopedwiththedyeingandfinishingwastegas,soastogreatlyreducethepollutantemissionconcentration.Onlinesupportingmonitoringfacilitieswerebuilt,whosedatawasuploadedtothegovernmentenvironmentalmonitoringsystem,tocomprehensivelymonitortheCompany'semissionpollutantssuchaswastewaterandwastegas.Supportteamsweresetuptoberesponsiblefordailyoperationmaintenanceandinspectiontoguaranteethenormaloperationoffacilities.Boththeexhaustemissionandwastewaterdischargemeettheemissionstandards.ThesubsidiaryZiboXinshengThermalPowerCo.,Ltd.(hereinafterreferredtoas“XinshengThermalPower”)enforcesthe“ThreeSimultaneous”managementsystemforenvironmentalprotectioninextensionprojectconstructioninaccordancewiththegovernmentrequirements,andadoptsthe“limestone-gypsummethod”toreduceemissionconcentrationofsulfurdioxide,the“Low-nitrogencombustion+SNCR”and“SNCR+SCRmethod”toreduceemissionconcentrationofnitrogenoxides,andthe“electric-bagelectrostaticprecipitator+wetelectrostaticprecipitator”toreducesootemissionconcentration.Theoverallsystemworkswell.EmergencyplanforenvironmentalincidentsInordertopreventenvironmentalpollutionaccidents,theCompanyandthesubsidiaryLufengWeaving&DyeingandLulianNewMaterialsrespectivelypreparedtheEmergencyPlanforEnvironmentalIncidents,whichwerefiledwithZiboEnvironmentalProtectionBureauZichuanBranch.ThePlanincludescontentssuchasenvironmentalrisksourcesidentificationandriskassessment,preventionandearlywarningmechanism,emergencysecurity,andsupervisionandmanagement.ThesubsidiaryZiboXinshengThermalPowerCo.,Ltd.hasformulatedthe“EmergencyPlanforEnvironmentalIncidents”andfileditwiththeecologicalandenvironmentalmanagementdepartment.Theidentificationandriskassessmentofenvironmentalrisksources,preventionandearlywarningmechanisms,emergencyprotectionandsupervisionandmanagementwereincludedintheplan.
InputinenvironmentgovernanceandprotectionandpaymentofenvironmentalprotectiontaxDuringtheReportingPeriod,theinputinenvironmentgovernanceandprotectionandpaymentofenvironmentalprotectiontaxfortheCompanyandthesubsidiaryLufengWeaving&Dyeing,LulianNewMaterialsandXinshengThermalPowerareRMB22.7273millionintotal,amongwhich,RMB22.0435millionforinputinenvironmentgovernanceandprotectionandRMB683,800forpaymentofenvironmentalprotectiontax.Environmentalself-monitoringprogramInaccordancewiththerequirementsofthecompetentenvironmentauthorities,theCompanyandthesubsidiaryLufengWeaving&DyeingandLulianNewMaterialsobservedtherequirementsofthesuperiorenvironmentalprotectiondepartmenttoinstallautomaticwastewatermonitoringfacilitiesandachievereal-timemonitoringofwastewaterdischarge.Besides,theautomaticenvironmentmonitoringplanwaspreparedasrequiredbyemissionpermit.Inaddition,theyinvitedaqualifiedtestinginstitutiontoconducttestsonsewageandwastegasbasedonthefrequencyofmonitoring,disclosedthemonitoringdataintime,andsubmittedthetestreportstothecompetentenvironmentauthoritiesensuringthemonitoringdataistrueandvalid.ThesubsidiaryZiboXinshengThermalPowerCo.,Ltd.hasimplementedonlinereal-timemonitoringofenvironmentaldatainaccordancewiththerequirementsofthesuperiorenvironmentalprotectiondepartment,andhasachievedemissionstandards.AdministrativepenaltiesimposedforenvironmentalissuesduringtheReportingPeriod
| Name | Reason | Case | Result | Influenceonproductionandoperation | Rectificationmeasures |
| N/A | N/A | N/A | N/A | N/A | N/A |
OtherenvironmentinformationthatshouldbedisclosedNoneMeasurestakentodecreasecarbonemissionintheReportingPeriodandcorrespondingeffects?Applicable□NotapplicableNoneOtherenvironmentalinformationNoneTheCompanyissubjecttothedisclosurerequirementsforlistedcompaniesengagingintextileandapparelasstatedinGuidelineNo.3oftheShenzhenStockExchangeforSelf-regulationofListedCompanies—Industry-specificInformationDisclosure.RelatedenvironmentalaccidentsinformationNoneIISocialResponsibility
Notapplicable
PartVISignificantEventsICommitmentsoftheCompany’sDeFactoController,Shareholders,RelatedPartiesandAcquirers,aswellastheCompanyItselfandOtherEntitiesFulfilledintheReportingPeriodorOngoingatthePeriod-End?Applicable□Notapplicable
| Commitment | Promisor | Typeofcommitment | Detailsofcommitment | Dateofcommitmentmaking | Termofcommitment | Fulfillment |
| CommitmentsmadeintimeofIPOorrefinancing | Controllingshareholder,actualcontroller | DilutionofatsightreturnsonpublicofferingA-shareconvertiblecorporatebonds | 1.NotintervenetheCompany’soperationandmanagementbeyondtheauthorityandnotoccupytheCompany’sinterests.2.FromtheissuancedateofthiscommitmenttothecompletionoftheimplementationoftheCompany'spublicofferingofA-shareconvertiblecorporatebonds,iftheCSRCmakesothernewregulatoryprovisionsonremedialmeasuresforreturnsandthecommitment,andtheabovecommitmentfailstomeettherequirementsoftheCSRC,thecompany/IpromisetoissuesupplementarycommitmenttheninaccordancewiththelatestregulationsofCSRC.3.CommitmentismadetofulfilltheCompany'srelevantremedialmeasuresforreturnsandanycommitmentmadehereinbythecompany/me.Ifthecompany/Iviolate(s)suchcommitmentandcause(s)lossestotheCompanyorinvestors,thecompany/IwillbearthecompensationresponsibilitytotheCompanyorinvestorsinaccordancewiththelaw. | 23May2019 | From23May2019to8April2026 | On-going |
| DirectorsandseniormanagementoftheCompany | DilutionofatsightreturnsonpublicofferingA-shareconvertiblecorporatebonds | 1.Commitmentismadenottotransferbenefitstootherunitsorindividualsfreeofchargeorunderunfairconditions,andnootherwaysdamagingtheinterestsoftheCompanywillbetaken.2.IwillstrictlyabidebythebudgetmanagementoftheCompany,andacceptthestrictsupervisionandmanagementoftheCompanytoavoidwasteorexcessiveconsumption.Anyposition-relatedconsumptionbehaviorsofmewilloccurwithinthescopenecessaryfortheperformanceofmyduties.3.CommitmentismadenottousetheCompany'sassetstoengageininvestmentandconsumptionactivitiesunrelatedtotheperformanceofduties.4.CommitmentismadethattheremunerationsystemdevelopedbytheBoardofDirectorsortheRemunerationCommitteeislinkedtotheimplementationoftheCompany'sremedialmeasuresforreturns.5.CommitmentismadethattheconditionsforexercisingtheEquityIncentivePlantobeissuedinthefuturewillbelinkedtotheimplementationoftheCompany'sremedialmeasuresforreturns.6.FromtheissuancedateofthiscommitmenttothecompletionoftheimplementationoftheCompany'spublicofferingofA-shareconvertiblecorporatebonds,iftheCSRCmakesothernewregulatory | 23May2019 | From23May2019to8April2026 | On-going |
| provisionsonremedialmeasuresforreturnsandthecommitment,andtheabovecommitmentfailstomeettherequirementsoftheCSRC,IpromisetoissuesupplementarycommitmenttheninaccordancewiththelatestregulationsofCSRC.7.CommitmentismadetofulfilltheCompany'srelevantremedialmeasuresforreturnsandanycommitmentmadehereinbyme.IfIviolatesuchcommitmentandcauseslossestotheCompanyorinvestors,IwillbearthecompensationresponsibilitytotheCompanyorinvestorsinaccordancewiththelaw. | ||||||
| Othercommitments | Controllingshareholder | Commitmenttonotreducecompanyshareholdingswithinthenextyear | BasedonconfidenceintheCompany'sfuturedevelopmentandvaluejudgment,tomaintainstabilityinthecapitalmarket,andtopromotetheCompany'scontinuous,stable,andhealthydevelopment,aswellastoprotecttheinterestsofthevastnumberofinvestors,theCompany'scontrollingshareholderscommit:Fromthedateofsigningthiscommitment,nottoreducetheirholdingsoftheCompany'ssharesforaperiodofoneyear,includinganyadditionalsharesarisingduringthecommitmentperiodduetocapitalreservecapitalisation,distributionofstockdividends,rightsissues,oradditionalissues,etc. | 23August2023 | 23August2023to22August2024 | On-going |
| Executedontimeornot | Not | |||||
IIOccupationoftheCompany’sCapitalbytheControllingShareholderoranyofItsRelatedPartiesforNon-OperatingPurposes
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
IIIIrregularitiesintheProvisionofGuarantees
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
IVEngagementandDisengagementofIndependentAuditorAretheinterimfinancialstatementsaudited?
□Yes?NoTheinterimfinancialstatementshavenotbeenaudited.
VExplanationsGivenbytheBoardofDirectorsandtheSupervisoryCommitteeRegardingtheIndependentAuditor's“ModifiedOpinion”ontheFinancialStatementsoftheReportingPeriod
□Applicable?Notapplicable
VIExplanationsGivenbytheBoardofDirectorsRegardingtheIndependentAuditor's“ModifiedOpinion”ontheFinancialStatementsofLastYear
□Applicable?Notapplicable
VIIInsolvencyandReorganization
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
VIIILegalMattersSignificantlawsuitsandarbitrations:
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.Otherlegalmatters:
□Applicable?Notapplicable
IXPunishmentsandRectifications
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
XCreditQualityoftheCompanyaswellasitsControllingShareholderandDeFactoController
□Applicable?Notapplicable
XIMajorRelated-PartyTransactions
1.ContinuingRelated-PartyTransactions
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
2.Related-PartyTransactionsRegardingPurchaseorSalesofAssetsorEquityInterests
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
3.Related-PartyTransactionsRegardingJointInvestmentsinThirdParties
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
4.CreditsandLiabilitieswithRelatedParties
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
5.TransactionswithRelatedFinanceCompanies
□Applicable?NotapplicableTheCompanydidnotmakedepositsin,receiveloansorcreditfromandwasnotinvolvedinanyotherfinancebusinesswithanyrelatedfinancecompanyoranyotherrelatedparties.
6.TransactionswithRelatedPartiesbyFinanceCompaniesControlledbytheCompany
□Applicable?NotapplicableThefinancecompanycontrolledbytheCompanydidnotmakedeposits,receiveloansorcreditfromandwasnotinvolvedinanyotherfinancebusinesswithanyrelatedparties.
7.OtherMajorRelated-PartyTransactions
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
XIIMajorContractsandExecutionthereof
1.Entrustment,ContractingandLeases
(1)Entrustment
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
(2)Contracting
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
(3)Leases
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
2.MajorGuarantees?Applicable□Notapplicable
Unit:RMB'0,000
| GuaranteesprovidedbytheCompanyastheparentanditssubsidiariesforexternalparties(exclusiveofthoseforsubsidiaries) | ||||||||||
| Obligor | Disclosure | Lineof | Actual | Actual | Typeof | Collate | Counter- | Termof | Having | Guarantee |
| dateoftheguaranteelineannouncement | guarantee | occurrencedate | guaranteeamount | guarantee | ral(ifany) | guarantee(ifany) | guarantee | expiredornot | forarelatedpartyornot | |
| GuaranteesprovidedbytheCompanyforitssubsidiaries | ||||||||||
| Obligor | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate | Actualguaranteeamount | Typeofguarantee | Collateral(ifany) | Counter-guarantee(ifany) | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
| Wholly-ownedsubsidiary | 26August2022 | 23,518.44 | 24August2022 | 204.82 | Joint-liability | N/A | N/A | ThreeyearssincetheapprovaloftheboardoftheCompany | No | Yes |
| Wholly-ownedsubsidiary | 1July2023 | 7,126.8 | 30June2023 | 4,902.53 | Joint-liability | N/A | N/A | ThreeyearssincetheapprovaloftheboardoftheCompany | No | Yes |
| TotalapprovedlineforsuchguaranteesintheReportingPeriod(B1) | 0 | TotalactualamountofsuchguaranteesintheReportingPeriod(B2) | 553.54 | |||||||
| TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(B3) | 30,645.24 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(B4) | 5,107.35 | |||||||
| Guaranteesprovidedbetweensubsidiaries | ||||||||||
| Obligor | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate | Actualguaranteeamount | Typeofguarantee | Collateral(ifany) | Counter-guarantee(ifany) | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
| Totalguaranteeamount(totalofthethreekindsofguaranteesabove) | ||||||||||
| TotalguaranteelineapprovedintheReportingPeriod(A1+B1+C1) | 0 | TotalactualguaranteeamountintheReportingPeriod(A2+B2+C2) | 553.54 | |||||||
| TotalapprovedguaranteelineattheendoftheReportingPeriod(A3+B3+C3) | 30,645.24 | TotalactualguaranteebalanceattheendoftheReportingPeriod(A4+B4+C4) | 5,107.35 | |||||||
| Totalactualguaranteeamount(A4+B4+C4)as%oftheCompany’snetassets | 0.55% | |||||||||
| Ofwhich: | ||||||||||
| Balanceofguaranteesprovidedforshareholders,actualcontrollerandtheirrelatedparties(D) | 0 | |||||||||
| Balanceofdebtguaranteesprovideddirectlyorindirectlyforobligorswithanover70%debt/assetratio(E) | 0 | |||||||||
| Amountbywhichthetotalguaranteeamountexceeds50%oftheCompany’snetassets(F) | 0 | |||||||||
| Totalofthethreeamountsabove(D+E+F) | 0 | |||||||||
| JointresponsibilitiespossiblyborneoralreadyborneintheReportingPeriodforundueguarantees(ifany) | N/A |
| Explanationaboutexternalguaranteeviolatingestablishedprocedure(ifany) | N/A |
Compoundguarantees:
N/ATheCompanyissubjecttothedisclosurerequirementsforlistedcompaniesengagingintextileandapparelasstatedinGuidelineNo.3oftheShenzhenStockExchangeforSelf-regulationofListedCompanies—Industry-specificInformationDisclosure.WhethertheCompanyprovidesguaranteesorfinancialassistancefordealers
□Yes?No
3.CashEntrustedforWealthManagement
?Applicable□Notapplicable
RMB’0,000
| Specifictype | Capitalresources | Amountincurred | UndueBalance | Overdueamount | Overdueamountwithprovisionforimpairment |
| Bank’sfinancialproducts | Self-ownedfunds | 29,500 | 15,000 | 0 | 0 |
| Bank’sfinancialproducts | Raisedfunds | 5,000 | 0 | 0 | 0 |
| Brokeragefinancialproducts | Self-ownedfunds | 24,000 | 15,000 | 0 | 0 |
| Others | Self-ownedfunds | 0 | 40,000 | 0 | 0 |
| Total | 58,500 | 70,000 | 0 | 0 | |
Particularsofentrustedcashmanagementwithsinglesignificantamountorlowsecurity,badliquidity,andnocapitalpreservation
□Applicable?NotapplicableWhetherthereisthecasewheretheprincipalcannotberecoveredatmaturityorothercasewhichmaycauseimpairmentforentrustedassetmanagement
□Applicable?Notapplicable
4.OtherMajorContracts
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
XIIIOtherSignificantEvents
?Applicable□NotapplicableTheProposalonRepurchaseofDomesticallyListedForeignShares(B-Share)wasapprovedatthe10
th
Meetingofthe10
th
BoardofDirectorsandtheFirstExtraordinaryGeneralMeetingof2023.Assuch,anamountofnomorethanRMB200millionwouldbeusedtorepurchaseshares,withapricelimitofHKD4.80pershare,within12monthsfromthedatewhenthesharerepurchaseplanwasapprovedatthegeneralmeeting.On21August2023,theCompanycarriedoutthefirstrepurchase.Asof21February2024,theCompanyhadcompletedtheimplementationofabove-mentionedRepurchasePlanofDomesticallyListedForeignShares(B-Share).TheCompanyaccumulativelyrepurchased46,176,428B-shares(5.35%oftheCompany’stotalsharecapital).WiththehighestrepurchasepricebeingHKD4.80/shareandthelowestbeingHKD4.53/share,thetotalpaymentforthisrepurchaseplanwasHKD218,386,229.84(inclusiveofcommissionsandalike).
TheCompanycompletedtheformalitiesforcancellationoftheforegoingrepurchasedsharesattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimitedon1March2024.XIVSignificantEventsofSubsidiaries
□Applicable?Notapplicable
PartVIIShareChangesandShareholderInformationIShareChanges
1.ShareChanges
Unit:share
| Before | Increase/decreaseintheReportingPeriod(+/-) | After | |||||||
| Shares | Percentage(%) | Newissues | Sharesasdividendconvertedfromprofit | Sharesasdividendconvertedfromcapitalreserves | Other | Subtotal | Shares | Percentage(%) | |
| I.Restrictedshares | 11,467,817 | 1.33% | -8,712,150 | -8,712,150 | 2,755,667 | 0.34% | |||
| 1.SharesheldbyState | |||||||||
| 2.Sharesheldbystate-ownedlegalperson | |||||||||
| 3.Sharesheldbyotherdomesticinvestors | 11,467,817 | 1.33% | -8,712,150 | -8,712,150 | 2,755,667 | 0.34% | |||
| Amongwhich:Sharesheldbydomesticlegalperson | |||||||||
| Sharesheldbydomesticnaturalperson | 11,467,817 | 1.33% | -8,712,150 | -8,712,150 | 2,755,667 | 0.34% | |||
| 4.Sharesheldbyotherforeigninvestors | |||||||||
| Amongwhich:Sharesheldbyforeigncorporations | |||||||||
| Sharesheldbyforeignnaturalperson | |||||||||
| II.Unrestrictedshares | 852,139,817 | 98.67% | -37,530,588 | -37,530,588 | 814,609,229 | 99.66% | |||
| 1.RMBordinaryshares | 579,894,874 | 67.15% | 8,649,115 | 8,649,115 | 588,543,989 | 72.00% | |
| 2.Domesticallylistedforeignshares | 272,244,943 | 31.52% | -46,179,703 | -46,179,703 | 226,065,240 | 27.66% | |
| 3.Overseaslistedforeignshares | |||||||
| 4.Other | |||||||
| III.Totalshares | 863,607,634 | 100.00% | -46,242,738 | -46,242,738 | 817,364,896 | 100.00% |
Reasonsforsharechanges:
?Applicable□Notapplicable
①DuetothefactthattheCompanyhadissuedconvertibleA-sharebondson9April2020,convertiblebondswereconvertedto190sharesintheperiodfromthebeginningof2024to30June2024.
②On6Mayand7June2024,2,901,500and6,901,500sharesofequityincentiverestrictedshareswereliftedfromrestriction,respectively.
③On1March2024,46,176,428domesticallylistedforeignshares(Bshares)wererepurchasedandcanceled.
④66,500sharesofequityincentiverestrictedshareswererepurchasedandcancelled.
⑤Thesharesheldbythedirectors,supervisorsandseniormanagementshallbelockedandadjustedinaccordancewithrelevantregulationsonexecutivesharemanagement.Approvalofsharechanges:
?Applicable□Notapplicable
①On10April2024,theCompanyheldthe20thMeetingofthe10thBoardofDirectorsandthe13thMeetingofthe10thSupervisoryCommittee,andreviewedandapprovedtheProposalontheAchievementofLiftingtheRestrictionConditionsintheSecondRestrictionPeriodfortheReservedSharesforGrantunderthe2021RestrictedShareIncentiveScheme.Also,theCompanyagreedtoprocesstherestrictionliftingmattersfor2,901,500restrictedsharesheldby340incentivepersonnelwhomettherestrictionliftingconditionsinthesecondrestrictionperiodforthereservedsharesforgrantunderthe2021RestrictedShareIncentiveScheme.
②On28May2024,theCompanyheldthe22ndMeetingofthe10thBoardofDirectorsandthe15thMeetingofthe10thSupervisoryCommittee,andreviewedandapprovedtheProposalontheAchievementoftheLiftingRestrictionConditionsintheThirdRestrictionPeriodfortheFirstGrantofthe2021RestrictedShareIncentiveScheme.Also,theCompanyagreedtoprocesstherestrictionliftingmattersfor6,901,500restrictedsharesheldby704incentivepersonnelwhomettherestrictionliftingconditionsinthethirdrestrictionperiodforthefirstgrantofthe2021RestrictedShareIncentiveScheme.
③TheCompanyheldthe10thMeetingofthe10thBoardofDirectorson19June2023andthe1stExtraordinaryGeneralMeetingof2023on6July2023,reviewingandapprovingtheProposalonRepurchaseoftheCompany’sDomesticallyListedForeignShares(BShare).TheCompanyrepurchased46,176,428BsharesintotalthroughcallauctionviaitssecuritiesaccountforrepurchaseandcompletedtheformalitiesforcancellationoftheforegoingrepurchasedsharesattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimitedon1March2024.
④On19January2024,theProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveConditionwasdeliberatedandapprovedatthe18thMeetingofthe10thBoardofDirectorsoftheCompany,astenoftheincentivepersonnelofthe2021restrictedshareincentiveschemenolongermettheconditionofbeingincentivepersonnelduetoresignation,retirement,orpositionchanges.Therestrictedsharesheldbythetenpersonnelwithavolumeof66,500shares,whichwereauthorizedbutnotliftedfromrestrictedsales,shallberepurchasedandcancelledbytheCompanyinaccordancewiththe2021RestrictedShareIncentiveScheme(hereinafterreferredtoasthe"IncentiveScheme")oftheCompanyandrelevantprovisionsoflawsandregulation.Theaforesaidmattersweredeliberatedandapprovedatthe1stExtraordinaryGeneralMeetingin2024thatwasheldon5February2024.Transferofshareownership:
?Applicable□NotapplicableTheCompanycompletedtheformalitiesforrepurchaseandcancellationofthe46,176,428repurchasedB-sharesand66,500sharesofequityincentiverestrictedsharesattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimitedrespectivelyon1March2024and22April2024.Progressonanysharerepurchases:
?Applicable□Notapplicable
①TheCompanyfirstrepurchasedBshareson21August2023anddisclosedrelevantprogressduringtherepurchaseperiodasrequiredbyrelevantlawsandregulations.Asat21February2024,alltherepurchasedshareshadbeendelivered,andthetotalamountoffundsusedhadhittheceilingontherepurchasefundasstipulatedintherepurchaseprogram.TheCompanyrepurchased46,176,428Bsharesintotalthroughcallauctionviaitssecuritiesaccountforrepurchase,accountingforapproximately16.96%oftheCompany’sBsharesand5.35%oftheCompany’stotalsharecapital.ThehighesttransactionpriceoftherepurchasereachedHKD4.80pershare,andthelowestreachedHKD4.53pershare.ThetotalamountpaidwasHKD218,386,229.84(includingthetransactioncost),equivalenttoRMB199,999,670.86,nomorethanRMB200million.TheforegoingrepurchasedshareswerecanceledattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimitedon1March2024.
②66,500sharesofequityincentiverestrictedshareswererepurchasedandcancelledcompletelybytheCompanyon22April2024.Progressonreducingtherepurchasedsharesbymeansofcentralizedbidding:
□Applicable?NotapplicableEffectsofsharechangesonthebasicanddilutedearningspershare,equitypershareattributabletotheCompany’sordinaryshareholdersandotherfinancialindicatorsoftheprioryearandtheprioraccountingperiod,respectively:
?Applicable□NotapplicableSeerelevantcontentsof"IVKeyFinancialInformation"under"PartIICorporateInformationandKeyFinancialInformation".OtherinformationthattheCompanyconsidersnecessaryorisrequiredbythesecuritiesregulatortobedisclosed:
□Applicable?Notapplicable
2.ChangesinRestrictedShares
?Applicable□Notapplicable
Unit:share
| Nameoftheshareholders | Restrictedsharesamountattheperiod-begin | Restrictedsharesrelievedoftheperiod | Restrictedsharesincreasedoftheperiod | Restrictedsharesamountattheperiod-end | Restrictedreasons | Restrictedsharesrelieveddate |
| ZhangZhanqi | 435,225 | 190,000 | 190,000 | 435,225 | Lockedpublicsharesheldbyseniormanagement | 100000shareson6May2024and90000shareson7June2024 |
| ShangChenggang | 247,500 | 110,000 | 192,500 | 330,000 | Lockedpublicsharesheldbyseniormanagement | 50000shareson6May2024and60000shareson7June2024 |
| Yu | 287,325 | 110,000 | 110,000 | 287,325 | Locked | 50000shareson6May |
| Shouzheng | publicsharesheldbyseniormanagement | 2024and60000shareson7June2024 | ||||
| ZhangKeming | 283,275 | 110,000 | 110,000 | 283,275 | Lockedpublicsharesheldbyseniormanagement | 50000shareson6May2024and60000shareson7June2024 |
| WangJiabin | 313,700 | 168,425 | 90,000 | 235,275 | Lockedpublicsharesheldbyseniormanagement | 78425shareson12January2024and90000shareson7June2024 |
| GuoHeng | 225,000 | 110,000 | 110,000 | 225,000 | Lockedpublicsharesheldbyseniormanagement | 50000shareson6May2024and60000shareson7June2024 |
| LiWenji | 195,000 | 110,000 | 110,000 | 195,000 | Lockedpublicsharesheldbyseniormanagement | 50000shareson6May2024and60000shareson7June2024 |
| DuLixin | 187,500 | 110,000 | 110,000 | 187,500 | Lockedpublicsharesheldbyseniormanagement | 50000shareson6May2024and60000shareson7June2024 |
| LyuWenquan | 150,000 | 70,000 | 70,000 | 150,000 | Lockedpublicsharesheldbyseniormanagement | 25000shareson6May2024and45000shareson7June2024 |
| XuFeng | 142,500 | 95,000 | 95,000 | 142,500 | Lockedpublicsharesheldbyseniormanagement | 50000shareson6May2024and45000shareson7June2024 |
| Otherrestrictedshareholders | 9,000,792 | 8,698,000 | 48,275 | 284,567 | LockedpublicsharesheldbyseniormanagementandRestrictedsharesfromequityincentive | 2426500shareson6May2024and6271500shareson7June2024;while66500shareswerecancelledon22April2024 |
| Total | 11,467,817 | 9,881,425 | 1,235,775 | 2,755,667 | -- | -- |
II.IssuanceandListingofSecurities
□Applicable?NotapplicableIIITotalNumberofShareholdersandTheirShareholdings
Unit:share
| Totalnumberofordinaryshareholdersattheperiod-end | 45,713 | Totalnumberofpreferenceshareholderswithresumedvotingrightsattheperiod-end(ifany)(seeNote8) | 0 | |||||
| 5%orgreaterordinaryshareholdersorthetop10ordinaryshareholders(exclusiveofshareslentinrefinancing) | ||||||||
| Nameofshareholder | Natureofshareholder | Shareholdingpercentage(%) | Totalsharesheldattheperiod-end | Increase/decreaseduringtheReportingPeriod | Numberofrestrictedsharesheld | Numberofnon-restrictedsharesheld | Pledged,markedorfrozenshares | |
| Status | Number | |||||||
| ZiboLuchengTextileInvestmentCo.,Ltd. | Domesticnon-state-ownedlegalperson | 17.17% | 140,353,583 | 0 | 0 | 140,353,583 | N/A | 0 |
| Tailun(Thailand)TextileCo.,Ltd. | Foreignlegalperson | 14.10% | 115,232,400 | -3000000 | 0 | 115,232,400 | N/A | 0 |
| CentralHuijinAssetsManagementCo.,Ltd. | State-ownedlegalperson | 2.43% | 19,884,100 | 0 | 0 | 19,884,100 | N/A | 0 |
| NationalSocialSecurityFundPortfolio413 | Other | 1.81% | 14,760,051 | 570000 | 0 | 14,760,051 | N/A | 0 |
| ICBCCreditSuisseInnovationPowerStockTypeSecuritiesInvestmentFund | Other | 1.36% | 11,100,000 | -810000 | 0 | 11,100,000 | N/A | 0 |
| DongfanghongZhihuaThree-YearHoldingMixedSecuritiesInvestmentFund | Other | 0.90% | 7,394,950 | 943200 | 0 | 7,394,950 | N/A | 0 |
| NationalSocialSecurityFundPortfolio502 | Other | 0.80% | 6,537,940 | 6537940 | 0 | 6,537,940 | N/A | 0 |
| DongfanghongJingdongBigDataDynamicAssetAllocationMixedSecuritiesInvestmentFund | Other | 0.77% | 6,324,582 | 1324500 | 0 | 6,324,582 | N/A | 0 |
| FEDERATED | Foreign | 0.77% | 6,309,111 | 108928 | 0 | 6,309,111 | N/A | 0 |
| HERMESGLOBALINVESTMENTFD(CAYMAN)MASTER,SPCOBOAFTAOFEDERATEDHERMESEMGASIAEQUITYFDMASTERS.P. | legalperson | |||||||
| DongfanghongDingyuan3-MonthFixedTermOpenMixedInitiatingSecuritiesInvestmentFund | Other | 0.73% | 5,927,800 | 651400 | 0 | 5,927,800 | N/A | 0 |
| Strategicinvestorsorgeneralcorporationsbecomingtop-tenshareholdersduetoplacingofnewshares(ifany)(seeNote3) | Naught | |||||||
| Relatedoracting-in-concertpartiesamongtheshareholdersabove | ZiboLuchengTextileInvestmentCo.,Ltd.isthelargestshareholderoftheCompanyandtheactualcontroller.Tailun(Thailand)TextileCo.,Ltd.isthesecondlargestshareholderaswellassponsorofforeigncapitaloftheCompany.AllofothershareholdersarepeopleholdingpublicAshareorpublicBshareandtheCompanyisnotabletoconfirmwhetherthereisassociatedrelationshiporconcertedactionamongothershareholders. | |||||||
| Explainifanyoftheshareholdersabovewasinvolvedinentrusting/beingentrustedwithvotingrightsorwaivingvotingrights | Naught | |||||||
| Specialaccountforsharerepurchases(ifany)amongthetop10shareholders(seenote11) | Naught | |||||||
| Shareholdingsofthetoptennon-restrictedordinaryshareholders(exclusiveofshareslentinrefinancingandexecutivelock-upshares) | ||||||||
| Nameofshareholder | Numberofnon-restrictedsharesheldattheperiod-end | Typeofshares | ||||||
| Type | Shares | |||||||
| ZiboLuchengTextileInvestmentCo.,Ltd. | 140,353,583 | RMBordinaryshare | 140,353,583 | |||||
| Tailun(Thailand)TextileCo.,Ltd. | 115,232,400 | Domesticallylistedforeignshares | 115,232,400 | |||||
| CentralHuijinAssetsManagementCo.,Ltd. | 19,884,100 | RMBordinaryshare | 19,884,100 | |||||
| NationalSocialSecurityFundPortfolio413 | 14,760,051 | RMBordinaryshare | 14,760,051 | |||||
| ICBCCreditSuisseInnovationPowerStockTypeSecuritiesInvestmentFund | 11,100,000 | RMBordinaryshare | 11,100,000 | |||||
| DongfanghongZhihuaThree- | 7,394,950 | RMB | 7,394,950 | |||||
| YearHoldingMixedSecuritiesInvestmentFund | ordinaryshare | ||
| NationalSocialSecurityFundPortfolio502 | 6,537,940 | RMBordinaryshare | 6,537,940 |
| DongfanghongJingdongBigDataDynamicAssetAllocationMixedSecuritiesInvestmentFund | 6,324,582 | RMBordinaryshare | 6,324,582 |
| FEDERATEDHERMESGLOBALINVESTMENTFD(CAYMAN)MASTER,SPCOBOAFTAOFEDERATEDHERMESEMGASIAEQUITYFDMASTERS.P. | 6,309,111 | Domesticallylistedforeignshares | 6,309,111 |
| DongfanghongDingyuan3-MonthFixedTermOpenMixedInitiatingSecuritiesInvestmentFund | 5,927,800 | RMBordinaryshare | 5,927,800 |
| Explanationonconnectedrelationshipamongthetoptenshareholdersoftradablesharenotsubjecttotradingmoratorium,aswellasamongthetoptenshareholdersoftradablesharenotsubjecttotradingmoratoriumandtoptenshareholders,orexplanationonacting-in-concert | ZiboLuchengTextileInvestmentCo.,Ltd.isthelargestshareholderandtheactualcontrolleroftheCompany.Tailun(Thailand)TextileCo.,Ltd.isthesecondlargestshareholderandtheforeignsponsoroftheCompany.AlltheothershareholdersareholdingtradableA-sharesorB-shares.Anditisunknownwhetherthereisanyrelatedpartyoracting-in-concertpartyamongthem. | ||
| Particularaboutshareholderparticipateinthesecuritieslendingandborrowingbusiness(ifany)(note4) | Naught | ||
5%orgreatershareholders,top10shareholdersandTop10unrestrictedshareholdersinvolvedinrefinancingshareslending
□Applicable?NotapplicableChangesintop10shareholdersandtop10unrestrictedshareholdersduetorefinancingshareslending/returncomparedwiththepriorperiod
□Applicable?NotapplicableIndicatebytickmarkwhetheranyofthetop10ordinaryshareholdersorthetop10unrestrictedordinaryshareholdersoftheCompanyconductedanypromissoryrepoduringtheReportingPeriod.
□Yes?NoNosuchcasesintheReportingPeriod.
IVChangeinShareholdingsofDirectors,SupervisorsandSeniorManagement
?Applicable□Notapplicable
| Name | Officetitle | Incumbent/former | Beginningshareholding(share) | IncreaseintheCurrentPeriod(share) | DecreaseintheCurrentPeriod(share) | Endingshareholding(share) | Numberofgrantedrestrictedsharesattheperiod-begin(share) | NumberofrestrictedsharesgrantedintheCurrentPeriod(share) | Numberofgrantedrestrictedsharesattheperiod-end(share) |
| LiuZibin | ChairmanandPresident | Incumbent | 148,290 | 148,290 | ||||
| XuZhinan | ViceChairman | Incumbent | ||||||
| XuJianlyu | Director | Incumbent | ||||||
| ZhengHuisheng | Director | Incumbent | ||||||
| LiuDeming | Director,ViceControllerofGlobalMarketingDepartment | Incumbent | ||||||
| ZhangZhanqi | Director,Vicepresident,ControllerofGlobalMarketingDepartment | Incumbent | 580,300 | 580,300 | 190,000 | 0 | ||
| ZhangKeming | Director,ChiefAccountant,ControllerofFinancialManagementDepartment | Incumbent | 377,700 | 377,700 | 110,000 | 0 | ||
| DuLixin | Director,ChiefEngineer,ExecutiveDeanofLuThaiEngineeringTechnologyResearchInstitute | Incumbent | 250,000 | 250,000 | 110,000 | 0 | ||
| ZhouZhiji | IndependentDirector | Incumbent | ||||||
| QuDongmei | IndependentDirector | Incumbent | ||||||
| PengYanli | IndependentDirector | Incumbent | ||||||
| QuanYuhua | IndependentDirector | Incumbent | ||||||
| ShangChenggang | ChairmanoftheSupervisoryCommittee,PresidentAssistant,HeadofGarmentProductLine | Incumbent | 330,000 | 330,000 | 110,000 | 0 | ||
| LiuZilong | Supervisor | Incumbent | 10,000 | 10,000 | ||||
| DongShibing | Supervisor,ManagerofLogisticsManagementDepartment | Incumbent | 5,000 | 5,000 | ||||
| Yu | PresidentAssistant, | Incumbe | 383,100 | 383,100 | 110,000 | 0 |
| Shouzheng | ControllerofEnergyandEnvironmentProtectionDepartment | nt | |||||||
| LiWenji | DeanofLuThaiEngineeringTechnologyResearchInstitute | Incumbent | 260,000 | 260,000 | 110,000 | 0 | |||
| GuoHeng | ControllerofFunctionalFabricProductLine | Incumbent | 300,000 | 300,000 | 110,000 | 0 | |||
| LyuWenquan | ViceControllerofYarnDyedFabricProductLine,ManagerofYarnDyedProductionManagementDepartment | Incumbent | 200,000 | 200,000 | 70,000 | 0 | |||
| XuFeng | ViceControllerofYarnDyedFabricProductLine | Incumbent | 190,000 | 190,000 | 95,000 | 0 | |||
| ZhengWeiyin | BoardSecretary | Incumbent | 40,000 | 40,000 | 40,000 | 0 | |||
| ZhangShougang | ChairmanoftheSupervisoryCommittee | Former | 73,100 | 73,100 | |||||
| Total | -- | -- | 3,147,490 | 0 | 0 | 3,147,490 | 1,055,000 | 0 | 0 |
VChangeoftheControllingShareholderortheDeFactoController
ChangeofthecontrollingshareholderintheReportingPeriod
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.ChangeofthedefactocontrollerintheReportingPeriod
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
PartVIIIPreferenceShares
□Applicable?NotapplicableNopreferencesharesintheReportingPeriod.
PartIXBonds?Applicable□Notapplicable
IEnterpriseBonds
□Applicable?NotapplicableNoenterprisebondsintheReportingPeriod.
IICorporateBonds
□Applicable?NotapplicableNocorporatebondsintheReportingPeriod.
IIIDebtFinancingInstrumentsofNon-financialEnterprises
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
IVConvertibleCorporateBonds?Applicable□Notapplicable
1.PreviousAdjustmentsandCorrectionofConversionPriceOn9April2020,theCompanypubliclyissued14millionA-shareconvertiblecorporatebonds(shortname:LuThaiConvertibleBonds,bondcode:127016)onShenzhenStockExchangewithanissuepriceofRMB100pershareandashareconversionpriceofRMB9.01pershare.ThebondswerelistedonShenzhenStockExchangeon13May2020.Inaccordancewithrelatedtermsofthe“ProspectusforthePublicOfferingofA-ShareConvertibleCorporateBondsofLuThaiTextileCo.,Ltd.”,aswellastheregulationsofChinaSecuritiesRegulatoryCommissiononthepublicofferingofconvertiblecorporatebonds,iftheCompanyhasanydistributionofsharedividends,conversionintosharecapital,additionalissueofnewshares(excludingsharecapitalincreaseduetoconversionintosharesfromtheconvertiblecorporatebondsissuedthistime),shareallotmentanddistributionofcashdividendsaftertheissueof“LuThaiConvertibleBonds”,adjustmentshallbemadetotheshareconversionprice.On21May2020,theCompanyheldtheAnnualGeneralMeetingof2019,wherethe“ProposalontheCompany’sProfitDistributionPlanfor2019”wasconsideredandapproved.AccordingtotheProposal,acashamountofRMB1.00(inclusiveoftax)wouldbedistributedtoevery10shares,withthe858,121,541sharesofsharecapitalon31December2019asthebase.TheshareregistrationdatefortheCompany’sequitydistributionof2019was8July2020andtheex-rightsandex-dividenddatewas9July2020.Therefore,theshareconversionpriceof“LuThaiConvertibleBonds”wasadjustedfromRMB9.01persharetoRMB8.91pershare,andthenewpriceaftertheadjustmenttookeffectonandasof9July2020(theex-rightsandex-dividenddate).
On3June2021,theCompanycompletedtheregistrationoffirst-grantedrestrictedstocksofrestrictedshareincentiveschemeattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimited(ChinaClear).7June2021isdesignatedasthelistingdateoffirst-grantedrestrictedstocksoftheCompanyin2021.TheCompanygrants750subjectsofincentive24,285,000restrictedsharesatapriceofRMB3.31pershare,accountingfor2.83%oftotalsharecapitaloftheCompany.ThesourceofthestockisRMBA-shareordinarysharesissuedbytheCompanytosubjectsofincentive.Therefore,theconversionpriceofLuThaiConvertibleBondwillbeadjustedfromRMB8.91persharetoRMB8.76pershare,withtheadjustedconversionpricecomingintoforcefrom7June2021.The2020annualgeneralmeetingconvenedon20April2021deliberatedonandadoptedtheCompany'sProposalonProfitAppropriationPlanin2020,whichdistributescashofRMB0.50per10shares(includingtax)withtotalsharecapitalattherecorddateofthisdistributionschemeasbase.TherecorddateoftheCompany'sinterestdistributionin2020isseton17June2021.Theex-dateisseton18June2021.Therefore,theconversionpriceofLuThaiConvertibleBondwillbeadjustedfromRMB8.76persharetoRMB8.71pershare,withtheadjustedconversionpricecomingintoforcefrom18June2021(theex-date).On22March2022,theCompanycompletedtheregistrationofgrantingreservedsharesunderthe2021restrictedshareincentiveschemeattheShenzhenBranchofChinaClear.22March2022wasdesignatedasthelistingdateforgrantingreservedrestrictedsharesoftheCompany.TheCompanygranted343incentivepersonnel5,838,000restrictedsharesatapriceofRMB3.56pershare,accountingfor0.66%oftotalsharecapitaloftheCompany.ThesourceofthestockisRMBA-shareordinarysharesissuedbytheCompanytoincentivepersonnel.Therefore,theconversionpriceofLuThaiconvertiblebondwillbeadjustedfromRMB8.71persharetoRMB8.68pershare,withtheadjustedconversionpricecomingintoforcefrom22March2022.The2021annualgeneralmeetingconvenedon20May2022deliberatedandadoptedtheCompany'sProposalonProfitAppropriationPlanin2021,whichdistributescashofRMB0.70pertenshares(includingtax)withtotalsharecapitalattherecorddateofthisdistributionschemeasbase.TherecorddateoftheCompany'sinterestdistributionin2021wasseton22June2022.Theex-datewasseton23June2022.Therefore,theconversionpriceofLuThaiconvertiblebondwillbeadjustedfromRMB8.68persharetoRMB8.61pershare,withtheadjustedconversionpricecomingintoforcefrom23June2022.TheCompanycompletedtheformalitiesforcancellationofthe23,935,748repurchasedBsharesattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimitedon25May2023.InaccordancewiththeissuanceclausesintheCompany’sProspectusandrelevantregulationsoftheChinaSecuritiesRegulatoryCommission(CSRC)ontheissuanceofconvertiblebonds,theconversionpriceofLuThaiconvertiblebondshallbeadjustedfromRMB8.61persharetoRMB8.73pershare.Theadjustedconversionpricecameintoforceon26May2023.TheCompanyimplementedthe2022EquityDistributionPlanon16June2023.InaccordancewiththeissuanceclausesintheCompany’sProspectusandrelevantregulationsoftheCSRContheissuanceofconvertiblebonds,theconversionpriceofLuThaiconvertiblebondshallbeadjustedfromRMB8.73persharetoRMB8.63pershare.Theadjustedconversionpricecameintoforceon16June2023.TheCompanycompletedtheformalitiesforcancellationofthe46,176,428repurchasedBsharesattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimitedon1March2024.Inaccordancewith
theissuanceclausesintheCompany’sProspectusandrelevantregulationsoftheChinaSecuritiesRegulatoryCommission(CSRC)ontheissuanceofconvertiblebonds,theconversionpriceofLuThaiconvertiblebondshallbeadjustedfromRMB8.63persharetoRMB8.87pershare.Theadjustedconversionpricecameintoforceon4March2024.TheCompanyimplementedthe2023EquityDistributionPlanon19June2024.InaccordancewiththeissuanceclausesintheCompany’sProspectusandrelevantregulationsoftheCSRContheissuanceofconvertiblebonds,theconversionpriceofLuThaiconvertiblebondshallbeadjustedfromRMB8.87persharetoRMB8.74pershare.Theadjustedconversionpricecameintoforceon19June2024.
2.AccumulativeConversion?Applicable□Notapplicable
| Abbreviation | Startdate | Totalcirculation(piece) | Totalamount(RMB) | Accumulativeamountconverted(RMB) | Accumulativesharesconverted(share) | Convertedsharesas%oftotalsharesissuedbytheCompanybeforethestartdateofconversion | Unconvertedamount(RMB) | Unconvertedamountas%oftotalamount |
| LuThaiConvertibleBonds | From15October2020to8April2026 | 14,000,000 | 1,400,000,000.00 | 152,300.00 | 17,031 | 0.00% | 1,399,847,700.00 | 99.99% |
3.Top10ConvertibleBondHolders
| No. | Nameofholders | Natureofholders | Numberofconvertiblebondsheldattheperiod-end(share) | Amountofconvertiblebondsheldattheperiod-end(RMB) | As%ofconvertiblebondsheldattheperiod-end |
| 1 | ChinaConstructionBank-EFundEnhancedIncomeBondSecuritiesInvestmentFund | Other | 694,212 | 69,421,200.00 | 4.96% |
| 2 | FuguoFuminFixedIncomePensionProduct-ChinaConstructionBankCorporation | Other | 640,009 | 64,000,900.00 | 4.57% |
| 3 | BankofChinaCo.,Ltd.-GFJuxinBond-TypeSecuritiesInvestmentFund | Other | 526,285 | 52,628,500.00 | 3.76% |
| 4 | ShanghaiPudongDevelopmentBankCo.,Ltd.-EFundYuxiangReturnBondSecuritiesInvestmentBond | Other | 485,552 | 48,555,200.00 | 3.47% |
| 5 | ChinaMerchantsBankCo.,Ltd.-DongfanghongJuliBondSecuritiesInvestmentFund | Other | 327,356 | 32,735,600.00 | 2.34% |
| 6 | AgriculturalBankofChinaCo.,Ltd.-PenghuaConvertibleBondsBondSecuritiesInvestmentBond | Other | 312,470 | 31,247,000.00 | 2.23% |
| 7 | TruValueAssetManagement-ChinaMerchantsBank-TruValueAssetManagementZhaoyiNo.3CollectiveAssetManagementPlan | Other | 266,898 | 26,689,800.00 | 1.91% |
| 8 | PingAnFund-PingAnLifeInsuranceCompanyofChina,Ltd.-Dividend-IndividualInsuranceDividend-PingAnLife-PingAnFundFixedIncomeEntrustedInvestmentNo.1-AssetManagementPlan | Other | 264,697 | 26,469,700.00 | 1.89% |
| 9 | HuataiYoushengConvertibleBondFixedIncomePensionProduct－ChinaMerchantsBankCo.,Ltd. | Other | 246,800 | 24,680,000.00 | 1.76% |
| 10 | CPIC-Dividend-IndividualDividend | Other | 241,283 | 24,128,300.00 | 1.72% |
4.SignificantChangesinProfitability,AssetsConditionandCreditStatusofGuarantors
□Applicable?Notapplicable
5.TheCompany’sLiabilities,CreditChangesatthePeriod-endandCashArrangementstoRepayDebtsinFutureYears
Fortherelevantindicators,pleaserefertothePartIXBonds-VITheMajorAccountingDataandtheFinancialIndicatorsoftheRecent2YearsoftheCompanyupthePeriod-end.ThecreditratingoftheCompany'sconvertiblebondsforthereportingperiodisAA+,whichhasnotchangedcomparedwiththatofthesameperiodoflastyear.VLossesofScopeofConsolidatedFinancialStatementsduringtheReportingPeriodExceeding10%ofNetAssetsupthePeriod-endofLastYear
□Applicable?Notapplicable
VITheMajorAccountingDataandtheFinancialIndicatorsoftheRecent2YearsoftheCompanyupthePeriod-end
Unit:RMB’0,000
| Item | 30June2024 | 31December2023 | Increase/decrease |
| Currentratio | 3.93 | 3.43 | 14.58% |
| Debt/assetratio | 29.58% | 28.39% | 1.19% |
| Quickratio | 2.43 | 2.12 | 14.62% |
| H12024 | H12023 | YoYincrease/decrease | |
| Netprofitbeforeexceptionalgainsandlosses | 26,373.13 | 19,180.99 | 37.50% |
| EBITDA/debtratio | 17.30% | 20.29% | -2.99% |
| Interestcover(times) | 4.76 | 5.49 | -13.30% |
| Cash-to-interestcover(times) | 9.47 | 2.95 | 221.02% |
| EBITDA-to-interestcover(times) | 9.85 | 10.90 | -9.63% |
| Loanrepaymentratio | 100.00% | 100.00% | |
| Interestpaymentratio | 100.00% | 100.00% |
PartXFinancialStatements
IIndependentAuditor’sReport
Aretheseinterimfinancialstatementsauditedbyanindependentauditor?
□Yes?NoTheyareunauditedbysuchanauditor.
IIFinancialStatementsCurrencyunitforthefinancialstatementsandthenotesthereto:RMB
1.ConsolidatedBalanceSheet
PreparedbyLuThaiTextileCo.,Ltd.
30June2024
Unit:RMB
| Item | 30June2024 | 1January2024 |
| Currentassets: | ||
| Monetaryassets | 1,670,720,493.53 | 1,558,252,048.03 |
| Held-for-tradingfinancialassets | 741,610,807.34 | 723,800,275.39 |
| Notesreceivable | 76,158,996.20 | 99,642,708.67 |
| Accountsreceivable | 725,190,840.90 | 826,467,684.78 |
| Accountsreceivablefinancing | 6,922,213.41 | 18,248,205.76 |
| Prepayments | 88,309,101.31 | 51,863,447.56 |
| Otherreceivables | 24,299,740.14 | 22,168,807.43 |
| Including:Interestreceivable | ||
| Dividendsreceivable | ||
| Inventories | 2,142,506,737.15 | 2,124,139,574.70 |
| Othercurrentassets | 144,860,987.32 | 145,112,114.03 |
| Totalcurrentassets | 5,620,579,917.30 | 5,569,694,866.35 |
| Non-currentassets: | ||
| Long-termreceivables | ||
| Long-termequityinvestment | 152,156,574.30 | 143,537,479.77 |
| Otherequityinstrumentinvestment | ||
| Othernon-currentfinancialassets | 88,750,000.00 | 88,750,000.00 |
| Investmentproperty | 19,126,854.90 | 19,578,175.93 |
| Fixedassets | 5,921,271,772.02 | 5,597,692,505.07 |
| Constructioninprogress | 450,403,383.41 | 868,496,878.41 |
| Right-of-useassets | 474,061,007.77 | 463,226,419.21 |
| Intangibleassets | 337,998,823.87 | 343,347,879.42 |
| Goodwill | 20,563,803.29 | 20,563,803.29 |
| Long-termdeferredexpenses | 4,443,686.50 | 1,815,838.60 |
| Deferredincometaxassets | 157,913,267.50 | 157,892,110.06 |
| Othernon-currentassets | 518,241,842.87 | 155,690,266.83 |
| Totalnon-currentassets | 8,144,931,016.43 | 7,860,591,356.59 |
| Totalassets | 13,765,510,933.73 | 13,430,286,222.94 |
| Currentliabilities: | ||
| Short-termborrowings | 598,629,270.46 | 580,704,772.27 |
| Held-for-tradingfinancialliabilities | 80,716,835.26 | 46,785,831.47 |
| Derivativefinancialliabilities | ||
| Notespayable | ||
| Accountspayable | 221,724,967.80 | 275,502,915.05 |
| Advancesfromcustomers | ||
| Contractliabilities | 165,982,780.07 | 188,073,335.89 |
| Payrollpayable | 234,219,345.20 | 284,344,973.72 |
| Taxespayable | 30,381,726.69 | 42,633,232.55 |
| Otherpayables | 18,715,402.34 | 47,549,373.52 |
| Including:Interestpayable | ||
| Dividendspayable | 441,113.64 | 441,113.64 |
| Currentportionofnon-currentliabilities | 23,319,201.45 | 96,207,192.49 |
| Othercurrentliabilities | 57,471,030.54 | 63,646,908.11 |
| Totalcurrentliabilities | 1,431,160,559.81 | 1,625,448,535.07 |
| Non-currentliabilities: | ||
| Long-termborrowings | 706,355,559.41 | 259,992,974.40 |
| Bondspayable | 1,482,171,331.99 | 1,476,572,070.79 |
| Leaseliabilities | 99,631,923.14 | 86,580,224.41 |
| Long-termpayables | ||
| Long-termpayrollpayable | 57,276,675.61 | 57,276,675.61 |
| Provisions | ||
| Deferredincome | 148,386,995.71 | 151,768,947.92 |
| Deferredincometaxliabilities | 146,711,645.69 | 155,178,797.04 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 2,640,534,131.55 | 2,187,369,690.17 |
| Totalliabilities | 4,071,694,691.36 | 3,812,818,225.24 |
| Owners’equity: | ||
| Sharecapital | 817,364,896.00 | 863,607,634.00 |
| Otherequityinstruments | 71,383,591.09 | 71,383,677.78 |
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Capitalreserves | 184,401,293.30 | 334,792,614.76 |
| Less:Treasurystock | 186,060.00 | 193,438,720.78 |
| Othercomprehensiveincome | 140,719,631.20 | 131,343,141.63 |
| Specificreserve | 2,567,760.32 | |
| Surplusreserves | 1,260,661,015.34 | 1,260,661,015.34 |
| Generalreserve | ||
| Retainedearnings | 6,825,767,746.13 | 6,762,457,543.07 |
| TotalequityattributabletoownersoftheCompanyastheparent | 9,302,679,873.38 | 9,230,806,905.80 |
| Non-controllinginterests | 391,136,368.99 | 386,661,091.90 |
| Totalowners’equity | 9,693,816,242.37 | 9,617,467,997.70 |
| Totalliabilitiesandowners’equity | 13,765,510,933.73 | 13,430,286,222.94 |
Legalrepresentative:LiuZibinChiefAccountant:ZhangKemingFinancialManager:ZhangKeming
2.BalanceSheetoftheCompanyastheParent
Unit:RMB
| Item | 30June2024 | 1January2024 |
| Currentassets: | ||
| Monetaryassets | 1,035,981,981.57 | 932,232,103.80 |
| Held-for-tradingfinancialassets | 472,701,594.27 | 446,874,251.41 |
| Derivativefinancialassets | ||
| Notesreceivable | 44,283,816.54 | 54,622,178.42 |
| Accountsreceivable | 283,809,495.22 | 356,483,425.59 |
| Accountsreceivablefinancing | 5,289,974.58 | 11,214,873.48 |
| Prepayments | 59,005,416.11 | 21,426,761.45 |
| Otherreceivables | 1,886,991,725.68 | 2,064,459,414.54 |
| Including:Interestreceivable | ||
| Dividendsreceivable | ||
| Inventories | 952,786,915.28 | 955,634,154.13 |
| Including:Dataresources | ||
| Contractassets | ||
| Available-for-saleassets | ||
| Currentportionofnon-currentassets | ||
| Othercurrentassets | 7,315,243.72 | 2,443,246.51 |
| Totalcurrentassets | 4,748,166,162.97 | 4,845,390,409.33 |
| Non-currentassets: | ||
| Investmentondebtobligations | ||
| Investmentonotherdebtobligations | ||
| Long-termreceivables | ||
| Long-termequityinvestments | 3,588,116,900.80 | 3,579,497,806.27 |
| Investmentsinotherequityinstruments | ||
| Othernon-currentfinancialassets | 76,750,000.00 | 76,750,000.00 |
| Investmentproperty | 62,990,492.40 | 64,745,052.00 |
| Fixedassets | 1,960,953,873.80 | 2,048,332,131.98 |
| Constructioninprogress | 8,210,097.62 | 3,320,771.05 |
| Right-of-useassets | 101,770,445.49 | 90,043,845.90 |
| Intangibleassets | 194,564,640.89 | 197,852,690.71 |
| Including:Dataresources | ||
| Developmentcosts | ||
| Including:Dataresources | ||
| Goodwill | ||
| Long-termdeferredexpenses | 471,697.33 | 689,403.73 |
| Deferredincometaxassets | 78,576,889.45 | 80,728,077.79 |
| Othernon-currentassets | 495,059,935.69 | 153,767,959.47 |
| Totalnon-currentassets | 6,567,464,973.47 | 6,295,727,738.90 |
| Totalassets | 11,315,631,136.44 | 11,141,118,148.23 |
| Currentliabilities: | ||
| Short-termborrowings | 3,215,018.43 | 3,180,000.00 |
| Held-for-tradingfinancialliabilities | ||
| Derivativefinancialliabilities | ||
| Notespayable | ||
| Accountspayable | 93,633,814.85 | 108,266,517.50 |
| Advancesfromcustomers | ||
| Contractliabilities | 106,810,242.63 | 106,140,758.76 |
| Payrollpayable | 155,389,864.88 | 188,784,236.01 |
| Taxespayable | 16,759,691.55 | 23,490,180.58 |
| Otherpayables | 14,399,709.94 | 133,819,575.89 |
| Including:Interestpayable | ||
| Dividendspayable | 441,113.64 | 441,113.64 |
| Liabilitiesheldforsale | ||
| Currentportionofnon-currentliabilities | 23,277,160.10 | 95,832,728.97 |
| Othercurrentliabilities | 43,691,327.71 | 44,293,993.88 |
| Totalcurrentliabilities | 457,176,830.09 | 703,807,991.59 |
| Non-currentliabilities: | ||
| Long-termborrowings | 706,355,559.41 | 259,992,974.40 |
| Bondspayable | 1,482,171,331.99 | 1,476,572,070.79 |
| Leaseliabilities | 102,196,701.55 | 89,388,836.15 |
| Long-termpayables | ||
| Long-termpayrollpayable | 57,276,675.61 | 57,276,675.61 |
| Provisions | ||
| Deferredincome | 111,948,953.74 | 114,149,056.16 |
| Deferredincometaxliabilities | 112,306,913.16 | 120,804,925.25 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 2,572,256,135.46 | 2,118,184,538.36 |
| Totalliabilities | 3,029,432,965.55 | 2,821,992,529.95 |
| Owners’equity: | ||
| Sharecapital | 817,364,896.00 | 863,607,634.00 |
| Otherequityinstruments | 71,383,591.09 | 71,383,677.78 |
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Capitalreserves | 245,781,327.54 | 396,172,649.00 |
| Less:Treasurystock | 186,060.00 | 193,438,720.78 |
| Othercomprehensiveincome | -30,349.56 | -41,439.79 |
| Specificreserve | ||
| Surplusreserves | 1,257,552,275.70 | 1,257,552,275.70 |
| Retainedearnings | 5,894,332,490.12 | 5,923,889,542.37 |
| Totalowners’equity | 8,286,198,170.89 | 8,319,125,618.28 |
| Totalliabilitiesandowners’equity | 11,315,631,136.44 | 11,141,118,148.23 |
3.ConsolidatedIncomeStatement
Unit:RMB
| Item | H12024 | H12023 |
| 1.Revenue | 2,830,488,685.61 | 2,840,491,262.47 |
| Including:Operatingrevenue | 2,830,488,685.61 | 2,840,491,262.47 |
| 2.Costsandexpenses | 2,502,834,949.04 | 2,584,294,892.42 |
| Including:Costofsales | 2,131,993,492.13 | 2,233,932,367.67 |
| Taxesandsurcharges | 29,125,385.82 | 34,360,360.36 |
| Sellingexpense | 63,286,721.28 | 66,411,247.30 |
| Administrativeexpense | 158,805,160.69 | 175,308,361.39 |
| Developmentcost | 115,374,597.19 | 131,290,032.04 |
| Financecosts | 4,249,591.93 | -57,007,476.34 |
| Including:Interestexpense | 48,731,472.34 | 39,502,439.47 |
| Interestincome | 24,797,577.48 | 30,385,764.21 |
| Add:Otherincome | 14,929,113.83 | 27,724,922.40 |
| Returnoninvestment(“-”forloss) | -3,289,446.38 | 46,798,662.00 |
| Including:Shareofprofitorlossofjointventuresandassociates | 8,619,094.53 | -1,333,148.86 |
| Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
| Exchangegain(“-”forloss) | ||
| Netgainonexposurehedges(“-”forloss) | ||
| Gainonchangesinfairvalue(“-”forloss) | -112,539,827.27 | -42,471,705.81 |
| Creditimpairmentloss(“-”forloss) | 587,454.42 | 16,809,724.05 |
| Assetimpairmentloss(“-”forloss) | -34,719,445.19 | -75,665,553.95 |
| Assetdisposalincome(“-”forloss) | -232,868.16 | -404,759.16 |
| 3.Operatingprofit(“-”forloss) | 192,388,717.82 | 228,987,659.58 |
| Add:Non-operatingincome | 2,878,019.80 | 4,231,250.89 |
| Less:Non-operatingexpense | 2,366,685.20 | 2,464,360.53 |
| 4.Profitbeforetax(“-”forloss) | 192,900,052.42 | 230,754,549.94 |
| Less:Incometaxexpense | 18,864,805.79 | 20,991,415.51 |
| 5.Netprofit(“-”fornetloss) | 174,035,246.63 | 209,763,134.43 |
| 5.1Byoperatingcontinuity | ||
| 5.1.1Netprofitfromcontinuingoperations(“-”fornetloss) | 174,035,246.63 | 209,763,134.43 |
| 5.1.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
| 5.2Byownership | ||
| 5.2.1NetprofitattributabletoshareholdersoftheCompanyastheparent(“-”fornetloss) | 169,559,969.54 | 221,647,998.15 |
| 5.2.1Netprofitattributabletonon-controllinginterests(“-”fornetloss) | 4,475,277.09 | -11,884,863.72 |
| 6.Othercomprehensiveincome,netoftax | 9,376,489.57 | 70,872,279.88 |
| AttributabletoownersoftheCompanyastheparent | 9,376,489.57 | 70,872,279.88 |
| 6.1Itemsthatwillnotbereclassifiedtoprofitorloss | ||
| 6.1.1Changescausedbyre-measurementsondefinedbenefitschemes | ||
| 6.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
| 6.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments |
| 6.1.4Changesinthefairvaluearisingfromchangesinowncreditrisk | ||
| 6.1.5Other | ||
| 6.2Itemsthatwillbereclassifiedtoprofitorloss | 9,376,489.57 | 70,872,279.88 |
| 6.2.1Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod | ||
| 6.2.2Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
| 6.2.3Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 6.2.4Creditimpairmentallowanceforinvestmentsinotherdebtobligations | ||
| 6.2.5Reserveforcashflowhedges | ||
| 6.2.6Differencesarisingfromthetranslationofforeigncurrency-denominatedfinancialstatements | 9,340,942.61 | 70,961,260.92 |
| 6.2.7Other | 35,546.96 | -88,981.04 |
| Attributabletonon-controllinginterests | ||
| 7.Totalcomprehensiveincome | 183,411,736.20 | 280,635,414.31 |
| AttributabletoownersoftheCompanyastheparent | 178,936,459.11 | 292,520,278.03 |
| Attributabletonon-controllinginterests | 4,475,277.09 | -11,884,863.72 |
| 8.Earningspershare | ||
| 8.1Basicearningspershare | 0.21 | 0.26 |
| 8.2Dilutedearningspershare | 0.19 | 0.23 |
Wherebusinesscombinationsundercommoncontroloccurredinthecurrentperiod,thenetprofitachievedbytheacquireesbeforethecombinationswasRMB0.00,withtheamountforthesameperiodoflastyearbeingRMB0.00.Legalrepresentative:LiuZibinChiefAccountant:ZhangKemingFinancialManager:ZhangKeming
4.IncomeStatementoftheCompanyastheParent
Unit:RMB
| Item | H12024 | H12023 |
| 1.Operatingrevenue | 1,468,386,291.35 | 1,609,909,822.43 |
| Less:Costofsales | 1,111,556,899.05 | 1,277,031,824.62 |
| Taxesandsurcharges | 18,109,295.49 | 21,096,525.14 |
| Sellingexpense | 41,139,342.57 | 43,132,295.18 |
| Administrativeexpense | 96,570,932.90 | 109,290,133.53 |
| R&Dexpense | 79,830,730.20 | 89,977,015.81 |
| Financecosts | -3,675,230.34 | -76,975,133.92 |
| Including:Interestexpense | 27,601,294.75 | 17,569,729.67 |
| Interestincome | 19,298,232.20 | 22,004,783.28 |
| Add:Otherincome | 11,824,461.76 | 8,593,238.09 |
| Returnoninvestment(“-”forloss) | 14,834,483.02 | 219,763,969.54 |
| Including:Shareofprofitorlossofjointventuresandassociates | 8,619,094.53 | -1,333,148.86 |
| Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
| Netgainonexposurehedges(“-”forloss) | ||
| Gainonchangesinfairvalue(“-”forloss) | -73,211,657.14 | -45,480,664.13 |
| Creditimpairmentloss(“-”forloss) | 2,881,097.53 | 6,259,781.13 |
| Assetimpairmentloss(“-”forloss) | -2,519,219.13 | -19,582,479.49 |
| Assetdisposalincome(“-”forloss) | 1,256,454.63 | -295,512.79 |
| 2.Operatingprofit(“-”forloss) | 79,919,942.15 | 315,615,494.42 |
| Add:Non-operatingincome | 2,179,686.89 | 2,814,084.00 |
| Less:Non-operatingexpense | 56,573.70 | 792,483.54 |
| 3.Profitbeforetax(“-”forloss) | 82,043,055.34 | 317,637,094.88 |
| Less:Incometaxexpense | 5,350,341.11 | 8,203,834.07 |
| 4.Netprofit(“-”fornetloss) | 76,692,714.23 | 309,433,260.81 |
| 4.1Netprofitfromcontinuingoperations(“-”fornetloss) | 76,692,714.23 | 309,433,260.81 |
| 4.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
| 5.Othercomprehensiveincome,netoftax | 11,090.23 | -77,408.91 |
| 5.1Itemsthatwillnotbereclassifiedtoprofitorloss | ||
| 5.1.1Changescausedbyre-measurementsondefinedbenefitschemes | ||
| 5.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
| 5.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | ||
| 5.1.4Changesinthefairvaluearisingfromchangesinowncreditrisk | ||
| 5.1.5Other | ||
| 5.2Itemsthatwillbereclassifiedtoprofitorloss | 11,090.23 | -77,408.91 |
| 5.2.1Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod | ||
| 5.2.2Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
| 5.2.3Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 5.2.4Creditimpairmentallowanceforinvestmentsinotherdebt |
| obligations | ||
| 5.2.5Reserveforcashflowhedges | ||
| 5.2.6Differencesarisingfromthetranslationofforeigncurrency-denominatedfinancialstatements | ||
| 5.2.7Other | 11,090.23 | -77,408.91 |
| 6.Totalcomprehensiveincome | 76,703,804.46 | 309,355,851.90 |
| 7.Earningspershare | ||
| 7.1Basicearningspershare | 0.09 | 0.36 |
| 7.2Dilutedearningspershare | 0.10 | 0.32 |
5.ConsolidatedCashFlowStatement
Unit:RMB
| Item | H12024 | H12023 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 2,870,197,776.21 | 2,809,154,113.13 |
| Taxrebates | 34,473,335.94 | 75,305,681.28 |
| Cashgeneratedfromotheroperatingactivities | 15,241,585.40 | 68,114,428.99 |
| Subtotalofcashgeneratedfromoperatingactivities | 2,919,912,697.55 | 2,952,574,223.40 |
| Paymentsforcommoditiesandservices | 1,495,937,361.55 | 1,823,197,285.44 |
| Cashpaidtoandforemployees | 815,258,158.98 | 849,321,563.91 |
| Taxespaid | 84,393,030.40 | 64,065,437.19 |
| Cashusedinotheroperatingactivities | 72,902,493.93 | 67,379,719.88 |
| Subtotalofcashusedinoperatingactivities | 2,468,491,044.86 | 2,803,964,006.42 |
| Netcashgeneratedfrom/usedinoperatingactivities | 451,421,652.69 | 148,610,216.98 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestment | 366,961,000.00 | 1,525,821,962.14 |
| Returnoninvestment | 1,477,671.32 | 22,361,582.82 |
| Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 5,007,425.81 | 1,794,347.29 |
| Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | ||
| Cashgeneratedfromotherinvestingactivities | 55,092,528.36 | 61,197,806.89 |
| Subtotalofcashgeneratedfrominvestingactivities | 428,538,625.49 | 1,611,175,699.14 |
| Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 133,899,391.95 | 352,801,937.92 |
| Paymentsforinvestments | 466,000,000.00 | 2,006,213,736.27 |
| Cashusedinotherinvestingactivities | 187,380,600.00 | 3,894,036.91 |
| Subtotalofcashusedininvestingactivities | 787,279,991.95 | 2,362,909,711.10 |
| Netcashgeneratedfrom/usedininvestingactivities | -358,741,366.46 | -751,734,011.96 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | 1,312,631,494.80 | 590,526,602.96 |
| Including:Capitalcontributionsbynon-controllingintereststosubsidiaries | ||
| Borrowingsraised | 1,312,631,494.80 | 590,526,602.96 |
| Cashgeneratedfromotherfinancingactivities | 919,859,118.54 | 416,309,860.45 |
| Subtotalofcashgeneratedfromfinancingactivities | 149,684,828.86 | 113,125,135.43 |
| Repaymentofborrowings | ||
| Interestanddividendspaid | 47,144,251.24 | 9,505,516.17 |
| Including:Dividendspaidbysubsidiariestonon-controllinginterests | 1,116,688,198.64 | 538,940,512.05 |
| Cashusedinotherfinancingactivities | 195,943,296.16 | 51,586,090.91 |
| Subtotalofcashusedinfinancingactivities | 8,936,611.65 | 18,508,217.96 |
| Netcashgeneratedfrom/usedinfinancingactivities | 297,560,194.04 | -533,029,486.11 |
| 4.Effectofforeignexchangerateschangesoncashandcashequivalents | 1,353,615,305.93 | 1,822,897,270.16 |
| 5.Netincreaseincashandcashequivalents | 1,651,175,499.97 | 1,289,867,784.05 |
6.CashFlowStatementoftheCompanyastheParent
Unit:RMB
| Item | H12024 | H12023 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 1,488,240,200.81 | 1,621,793,418.78 |
| Taxrebates | 6,378,709.40 | 35,559,906.66 |
| Cashgeneratedfromotheroperatingactivities | 19,682,005.66 | 56,719,401.33 |
| Subtotalofcashgeneratedfromoperatingactivities | 1,514,300,915.87 | 1,714,072,726.77 |
| Paymentsforcommoditiesandservices | 832,282,435.46 | 1,259,042,871.11 |
| Cashpaidtoandforemployees | 404,265,209.55 | 459,317,676.05 |
| Taxespaid | 42,371,401.25 | 24,388,725.60 |
| Cashusedinotheroperatingactivities | 41,833,676.11 | 33,086,342.08 |
| Subtotalofcashusedinoperatingactivities | 1,320,752,722.37 | 1,775,835,614.84 |
| Netcashgeneratedfrom/usedinoperatingactivities | 193,548,193.50 | -61,762,888.07 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestment | 320,961,000.00 | 1,395,821,962.14 |
| Returnoninvestment | 5,054,535.92 | 21,094,108.64 |
| Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 798,733.70 | 2,637,307.50 |
| Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | 431,493,365.00 | |
| Cashgeneratedfromotherinvestingactivities | 1,388,052,365.00 | 1,200,787,279.07 |
| Subtotalofcashgeneratedfrominvestingactivities | 1,714,866,634.62 | 3,051,834,022.35 |
| Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 14,125,317.07 | 32,526,882.27 |
| Paymentsforinvestments | 420,000,000.00 | 2,318,818,000.00 |
| Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits | ||
| Cashusedinotherinvestingactivities | 1,316,340,560.00 | 1,238,001,959.48 |
| Subtotalofcashusedininvestingactivities | 1,750,465,877.07 | 3,589,346,841.75 |
| Netcashgeneratedfrom/usedininvestingactivities | -35,599,242.45 | -537,512,819.40 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | ||
| Borrowingsraised | 763,875,061.70 | 188,065,597.90 |
| Cashgeneratedfromotherfinancingactivities | 92,001,000.00 | |
| Subtotalofcashgeneratedfromfinancingactivities | 855,876,061.70 | 188,065,597.90 |
| Repaymentofborrowings | 387,245,597.90 | 13,868,839.85 |
| Interestanddividendspaid | 137,445,683.64 | 110,643,219.41 |
| Cashusedinotherfinancingactivities | 229,318,998.82 | 92,590,001.16 |
| Subtotalofcashusedinfinancingactivities | 754,010,280.36 | 217,102,060.42 |
| Netcashgeneratedfrom/usedinfinancingactivities | 101,865,781.34 | -29,036,462.52 |
| 4.Effectofforeignexchangerateschangesoncashandcashequivalents | 1,982,612.10 | 8,061,427.42 |
| 5.Netincreaseincashandcashequivalents | 261,797,344.49 | -620,250,742.57 |
| Add:Cashandcashequivalents,beginningoftheperiod | 765,705,926.26 | 1,283,846,116.80 |
| 6.Cashandcashequivalents,endoftheperiod | 1,027,503,270.75 | 663,595,374.23 |
7.ConsolidatedStatementsofChangesinOwners’Equity
H12024
Unit:RMB
| Item | H12024 | ||||||||||||||
| EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | Other | Subtotal | |||||
| Preferredshares | Perpetualbonds | Other | |||||||||||||
| 1.Balancesasattheendoftheprioryear | 863,607,634.00 | 71,383,677.78 | 334,792,614.76 | 193,438,720.78 | 131,343,141.63 | 1,260,661,015.34 | 6,762,457,543.07 | 9,230,806,905.80 | 386,661,091.90 | 9,617,467,997.70 | |||||
| Add:Adjustmentsforchangedaccountingpolicies | |||||||||||||||
| Adjustmentsforcorrectionsofpreviouserrors | |||||||||||||||
| Otheradjustments | |||||||||||||||
| 2.Balancesasatthebeginningoftheyear | 863,607,634.00 | 71,383,677.78 | 334,792,614.76 | 193,438,720.78 | 131,343,141.63 | 1,260,661,015.34 | 6,762,457,543.07 | 9,230,806,905.80 | 386,661,091.90 | 9,617,467,997.70 | |||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | -46,242,738.00 | -86.69 | -150,391,321.46 | -193,252,660.78 | 9,376,489.57 | 2,567,760.32 | 63,310,203.06 | 71,872,967.58 | 4,475,277.09 | 76,348,244.67 | |||
| 3.1Totalcomprehensiveincome | 9,376,489.57 | 169,559,969.54 | 178,936,459.11 | 4,475,277.09 | 183,411,736.20 | ||||||||
| 3.2Capitalincreasedandreducedbyowners | -46,242,738.00 | -86.69 | -150,391,321.46 | -193,252,660.78 | -3,381,485.37 | -3,381,485.37 | |||||||
| 3.2.1Ordinarysharesincreasedbyshareholders | -46,242,738.00 | -153,711,878.22 | -199,954,616.22 | -199,954,616.22 | |||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | |||||||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | 3,320,515.96 | 3,320,515.96 | 3,320,515.96 | ||||||||||
| 3.2.4Other | -86.69 | 40.80 | -193,252,660.78 | 193,252,614.89 | 193,252,614.89 | ||||||||
| 3.3Profitdistribution | -106,249,766.48 | -106,249,766.48 | -106,249,766.48 | ||||||||||
| 3.3.1Appropriationtosurplusreserves | |||||||||||||
| 3.3.2Appropriationto |
| generalreserve | ||||||
| 3.3.3Appropriationtoowners(orshareholders) | -106,249,766.48 | -106,249,766.48 | -106,249,766.48 | |||
| 3.3.4Other | ||||||
| 3.4Transferswithinowners’equity | ||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | ||||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | ||||||
| 3.4.3Lossoffsetbysurplusreserves | ||||||
| 3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings | ||||||
| 3.4.5Other |
| comprehensiveincometransferredtoretainedearnings | ||||||||||||||
| 3.4.6Other | ||||||||||||||
| 3.5Specificreserve | 2,567,760.32 | 2,567,760.32 | 2,567,760.32 | |||||||||||
| 3.5.1Increaseintheperiod | 4,090,000.00 | 4,090,000.00 | 4,090,000.00 | |||||||||||
| 3.5.2Usedintheperiod | 1,522,239.68 | 1,522,239.68 | 1,522,239.68 | |||||||||||
| 3.6Other | ||||||||||||||
| 4.Balancesasattheendoftheperiod | 817,364,896.00 | 71,383,591.09 | 184,401,293.30 | 186,060.00 | 140,719,631.20 | 2,567,760.32 | 1,260,661,015.34 | 6,825,767,746.13 | 9,302,679,873.38 | 391,136,368.99 | 9,693,816,242.37 |
H12023
Unit:RMB
| Item | H12023 | ||||||||||||||
| EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | Other | Subtotal | |||||
| Preferredshares | Perpetualbonds | Other | |||||||||||||
| 1.Balancesasat | 887,633,151.00 | 71,383,830.75 | 395,872,135.71 | 154,396,198.73 | 107,628,898.09 | 1,215,124,336.54 | 6,490,910,719.35 | 9,014,156,872.71 | 393,749,387.23 | 9,407,906,259.94 | |||||
| theendoftheprioryear | ||||||||||||||
| Add:Adjustmentsforchangedaccountingpolicies | ||||||||||||||
| Adjustmentsforcorrectionsofpreviouserrors | ||||||||||||||
| Otheradjustments | ||||||||||||||
| 2.Balancesasatthebeginningoftheyear | 887,633,151.00 | 71,383,830.75 | 395,872,135.71 | 154,396,198.73 | 107,628,898.09 | 1,215,124,336.54 | 6,490,910,719.35 | 9,014,156,872.71 | 393,749,387.23 | 9,407,906,259.94 | ||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | -23,935,632.00 | -50.99 | -64,785,911.20 | -122,552,833.73 | 70,872,279.88 | 2,777,410.71 | 135,287,246.25 | 242,768,176.38 | -11,884,863.72 | 230,883,312.66 |
| 3.1Totalcomprehensiveincome | 70,872,279.88 | 221,647,998.15 | 292,520,278.03 | -11,884,863.72 | 280,635,414.31 | |||||||
| 3.2Capitalincreasedandreducedbyowners | -23,935,632.00 | -50.99 | -64,785,911.20 | -122,552,833.73 | 33,831,239.54 | 33,831,239.54 | ||||||
| 3.2.1Ordinarysharesincreasedbyshareholders | 116.00 | 923.91 | 1,039.91 | 1,039.91 | ||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | 11,076,415.02 | 11,076,415.02 | 11,076,415.02 | |||||||||
| 3.2.4Other | -23,935,748.00 | -50.99 | -75,863,250.13 | -122,552,833.73 | 22,753,784.61 | 22,753,784.61 | ||||||
| 3.3 | - | - | - |
| Profitdistribution | 86,360,751.90 | 86,360,751.90 | 86,360,751.90 | |||
| 3.3.1Appropriationtosurplusreserves | ||||||
| 3.3.2Appropriationtogeneralreserve | ||||||
| 3.3.3Appropriationtoowners(orshareholders) | -86,360,751.90 | -86,360,751.90 | -86,360,751.90 | |||
| 3.3.4Other | ||||||
| 3.4Transferswithinowners’equity | ||||||
| 3.4.1Increaseincapital(orsharecapital |
| )fromcapitalreserves |
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves |
| 3.4.3Lossoffsetbysurplusreserves |
| 3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings |
| 3.4.5Othercompr |
| ehensiveincometransferredtoretainedearnings | ||||||||||||||
| 3.4.6Other | ||||||||||||||
| 3.5Specificreserve | 2,777,410.71 | 2,777,410.71 | 2,777,410.71 | |||||||||||
| 3.5.1Increaseintheperiod | 5,275,200.00 | 5,275,200.00 | 5,275,200.00 | |||||||||||
| 3.5.2Usedintheperiod | 2,497,789.29 | 2,497,789.29 | 2,497,789.29 | |||||||||||
| 3.6Other | ||||||||||||||
| 4.Balancesasattheendoftheperiod | 863,697,519.00 | 71,383,779.76 | 331,086,224.51 | 31,843,365.00 | 178,501,177.97 | 2,777,410.71 | 1,215,124,336.54 | 6,626,197,965.60 | 9,256,925,049.09 | 381,864,523.51 | 9,638,789,572.60 |
8.StatementsofChangesinOwners’EquityoftheCompanyastheParent
H12024
Unit:RMB
| Item | H12024 | |||||||||
| Sharecapital | Otherequityinstruments | Capital | Less:Treasury | Other | Specific | Surplusreserves | Retained | Other | Totalowners’ | |
| Preferredshares | Perpetualbonds | Other | reserves | stock | comprehensiveincome | reserve | earnings | equity | ||||
| 1.Balancesasattheendoftheprioryear | 863,607,634.00 | 71,383,677.78 | 396,172,649.00 | 193,438,720.78 | -41,439.79 | 1,257,552,275.70 | 5,923,889,542.37 | 8,319,125,618.28 | ||||
| Add:Adjustmentsforchangedaccountingpolicies | ||||||||||||
| Adjustmentsforcorrectionsofpreviouserrors | ||||||||||||
| Otheradjustments | ||||||||||||
| 2.Balancesasatthebeginningoftheyear | 863,607,634.00 | 71,383,677.78 | 396,172,649.00 | 193,438,720.78 | -41,439.79 | 1,257,552,275.70 | 5,923,889,542.37 | 8,319,125,618.28 | ||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | -46,242,738.00 | -86.69 | -150,391,321.46 | -193,252,660.78 | 11,090.23 | -29,557,052.25 | -32,927,447.39 | |||||
| 3.1Totalcomprehensiveincome | 11,090.23 | 76,692,714.23 | 76,703,804.46 | |||||||||
| 3.2Capitalincreasedandreducedbyowners | -46,242,738.00 | -86.69 | -150,391,321.46 | -193,252,660.78 | -3,381,485.37 | |||||||
| 3.2.1Ordinarysharesincreasedbyshareholders | -46,242,738.00 | -153,711,878.22 | -199,954,616.22 | |||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||||||||||
| 3.2.3Share-basedpaymentsincludedin | 3,320,515.96 | 3,320,515.96 |
| owners’equity | ||||||||
| 3.2.4Other | -86.69 | 40.80 | -193,252,660.78 | 193,252,614.89 | ||||
| 3.3Profitdistribution | -106,249,766.48 | -106,249,766.48 | ||||||
| 3.3.1Appropriationtosurplusreserves | ||||||||
| 3.3.2Appropriationtoowners(orshareholders) | -106,249,766.48 | -106,249,766.48 | ||||||
| 3.3.3Other | ||||||||
| 3.4Transferswithinowners’equity | ||||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | ||||||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | ||||||||
| 3.4.3Lossoffsetbysurplusreserves | ||||||||
| 3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings | ||||||||
| 3.4.5Othercomprehensiveincometransferredto |
| retainedearnings | |||||||||||
| 3.4.6Other | |||||||||||
| 3.5Specificreserve | |||||||||||
| 3.5.1Increaseintheperiod | |||||||||||
| 3.5.2Usedintheperiod | |||||||||||
| 3.6Other | |||||||||||
| 4.Balancesasattheendoftheperiod | 817,364,896.00 | 71,383,591.09 | 245,781,327.54 | 186,060.00 | -30,349.56 | 1,257,552,275.70 | 5,894,332,490.12 | 8,286,198,170.89 |
H12023
Unit:RMB
| Item | H12023 | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedearnings | Other | Totalowners’equity | |||
| Preferredshares | Perpetualbonds | Other | ||||||||||
| 1.Balancesasattheendoftheprioryear | 887,633,151.00 | 71,383,830.75 | 457,252,169.95 | 154,396,198.73 | -30,162.34 | 1,212,015,596.90 | 5,600,420,185.06 | 8,074,278,572.59 | ||||
| Add:Adjustmentsforchangedaccountingpolicies | ||||||||||||
| Adjustmentsforcorrectionsofpreviouserrors | ||||||||||||
| Otheradjustments | ||||||||||||
| 2.Balancesasatthebeginningoftheyear | 887,633,151.00 | 71,383,830.75 | 457,252,169.95 | 154,396,198.73 | -30,162.34 | 1,212,015,596.90 | 5,600,420,185.06 | 8,074,278,572.59 | ||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | -23,935,632.00 | -50.99 | -64,785,911.20 | -122,552,833.73 | -77,408.91 | 223,072,508.91 | 256,826,339.54 | |||||
| 3.1Totalcomprehensiveincome | -77,408.91 | 309,433,260.81 | 309,355,851.90 | |||||||
| 3.2Capitalincreasedandreducedbyowners | -23,935,632.00 | -50.99 | -64,785,911.20 | -122,552,833.73 | 33,831,239.54 | |||||
| 3.2.1Ordinarysharesincreasedbyshareholders | 116.00 | 923.91 | 1,039.91 | |||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | 11,076,415.02 | 11,076,415.02 | ||||||||
| 3.2.4Other | -23,935,748.00 | -50.99 | -75,863,250.13 | -122,552,833.73 | 22,753,784.61 | |||||
| 3.3Profitdistribution | -86,360,751.90 | -86,360,751.90 | ||||||||
| 3.3.1Appropriationtosurplusreserves | ||||||||||
| 3.3.2Appropriationtoowners(orshareholders) | -86,360,751.90 | -86,360,751.90 | ||||||||
| 3.3.3Other | ||||||||||
| 3.4Transferswithinowners’equity | ||||||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | ||||||||||
| 3.4.2Increasein |
| capital(orsharecapital)fromsurplusreserves | |||||||||||
| 3.4.3Lossoffsetbysurplusreserves | |||||||||||
| 3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings | |||||||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | |||||||||||
| 3.4.6Other | |||||||||||
| 3.5Specificreserve | |||||||||||
| 3.5.1Increaseintheperiod | |||||||||||
| 3.5.2Usedintheperiod | |||||||||||
| 3.6Other | |||||||||||
| 4.Balancesasattheendoftheperiod | 863,697,519.00 | 71,383,779.76 | 392,466,258.75 | 31,843,365.00 | -107,571.25 | 1,212,015,596.90 | 5,823,492,693.97 | 8,331,104,912.13 |
IIICompanyProfile
LuThaiTextileCo.,Ltd.(hereinafterreferredtoasthe“Company”)isajointventureinvestedbyZiboLuchengTextileInvestmentCo.,Ltd(originallynamedZiboLuchengTextileCo.,Ltd,hereinafterreferredtoasLuchengTextile)andThailandTailunTextileCo.,Ltd.On3February1993,theCompanyisapprovedbytheformerMinistryofForeignTradeandEconomyoftheState(1993)inWJMZEHZNo.59toconvertintoajoint-stockenterprise.ZiboAdministrationforIndustryandCommerceissuedtheCompanycorporatebusinesslicensewiththeregistrationNo.ofQGLZZZNo.000066.InJuly1997,theCompanyisapprovedbytheSecuritiesCommitteeoftheDepartmentoftheStateintheZWF(1997)No.47toissue80millionsharesofdomesticallylistedforeignshare(B-shares)atthepriceofRMB1.00pershare.UponapprovedbyShenzhenStockExchangewithNo.(1997)296ListingNotice,theCompanyislistedontheShenzhenStockExchangeon19August1997withB-sharesstockcodeof200726.On24November2000,approvedbyZJGSZ[2000]No.199byCSRC,theCompanyincreasedpublicationof50millionsharesofgeneralshare(A-shares)atthebookvalueofRMB1.00,whicharelistedontheShenzhenStockExchangeon25December2000withA-sharesstockcodeof000726throughapprovalbyShenzhenStockExchangewithNo.(2000)162ListingNotice.Asapprovedby2000AnnualGeneralMeetinginMay2001,theCompanycarriedoutthedistributionplanthat10sharesofcapitalpublicreserveareconvertedto3moresharesforeach10shares.AsapprovedbyResolutionsof2001AnnualGeneralMeetinginJune2002,theCompanyimplementedthedistributionplanthat10sharesofcapitalpublicreserveareconverted3moresharesforeach10sharesagain.Asapprovedby2002AnnualGeneralMeetinginMay2003,theCompanyimplementedthedistributionplanthat10sharesofcapitalpublicreserveare2moresharesforeach10shares,andinneremployees’sharedincreasedto40.56millionshares.AsexaminedandapprovedbyZJGSZNo.[2000]199ofCSRC,theinneremployees’shareswillstartcirculation3yearslatersincelistingontheA-sharemarket.On25December2003,theinneremployees’sharesreach3yearssincelistingontheA-sharestockmarket,andtheysetoutcirculationon26December2003.AsapprovedbytheAnnualGeneralMeeting2006heldinJune2007,theCompanyimplementedtheplanonconverting10sharestoallitsshareholderswithcapitalreservesforevery10shares.Aftercapitalization,theregisteredcapitaloftheCompanywasRMB844.8648million.TheCompany,inaccordancewiththeofficialreplyonapprovingLuThaiTextileCo.,Ltd.toissueadditionalshares(ZJXK[2008]No.890document)fromCSRC,issuedtheRenminbicommonshares(Ashares)amountingto150millionshareson8December2008.Accordingtotherelevantresolutionofthe2ndSpecialExtraordinaryGeneralMeetingof2011,therelevantresolutionofthe15thMeetingofthe6thBoardofDirectors,theOpinionofChinaSecuritiesRegulatoryCommissionontheRestrictedShareIncentivePlanofLuThaiTextileCo.,Ltd.(Shang-Shi-Bu-Han[2011]No.206),theCompanyappliedforaregisteredcapitalincrementofRMB14.09million,whichwascontributedbyrestrictedshareincentivereceiverswithmonetaryfunds.InaccordancewiththeresolutionofProposalonRepurchasingandCancelingPartialRestrictedSharesalreadyGrantedfortheOriginalIncentiveTargetsnotReachingtheIncentiveConditionsmadeatthe23rdSessionofthe6thBoardofDirectorson13August2012,theCompanycancelingatotalof60,000.00sharesalreadygrantedfortheoriginalincentivetargetsnotreachingtheincentiveconditions.AccordingtothesecondtemporaryresolutionofProposaloncounterpurchaseofpartofthedomesticlistedforeignshare(Bshare)on25June2012,theCompanycounterpurchasedomesticlistedforeignshare(Bshare)48,837,300shares.AccordingtotheProposalonRepurchaseandCancelPartofUnlockedRestrictedShareoftheOriginalIncentivePersonnelnot
ConformingtotheIncentiveCondition,ProposalonRepurchaseandCancelunlockedRestrictedShareinSecondUnlockedPeriodofalltheIncentivePersonnelreviewedandapprovedbythe26thMeetingofthe6thBoardofDirectorson27March2013,theCompanyrepurchaseandcancel4,257,000sharesownedbyoriginalpeoplewhomtomotivate.AccordingtotheProposalonRepurchaseandWrite-offofPartlyoftheOriginalIncentiveTargetsNotMetwiththeIncentiveConditionsbutGrantedRestrictedSharesapprovedonthe11thMeetingofthe7thBoardofDirectorson11June2014,toexecuterepurchaseandwrite-offofthewholegrantedsharesof42,000sharesoftheoriginalincentivetargetsnotmetwiththeincentivetargetsoftheCompany.AspertheProposalonBuy-backofSomeA-andB-sharesconsideredandapprovedasaresolutionatthe1stspecialmeetingofshareholderson5August2015,theCompanyrepurchased33,156,200domesticallylistedforeignshares(B-shares).AspertheProposalonBuy-backofSomeB-sharesconsideredandapprovedasaresolutionatthe2ndExtraordinaryGeneralMeetingon23March2018,theCompanyrepurchased64,480,800domesticallylistedforeignshares(B-shares).Therewere10,800sharesoftheCompanywhichwereconvertedfromtheconvertiblebondsin2020.Inlinewiththeresolutionofthe1stExtraordinaryGeneralMeetingoftheCompanyon13May2021andtheresolutionofthe24thMeetingofthe9thBoardofDirectorson17May2021,theCompanyimplementedtherestrictedshareincentiveschemeandappliedforaregisteredcapitalincrementofRMB24,285,000whichwascontributedbyrestrictedshareincentivereceiverswithmonetaryfunds.Inlinewiththeresolutionsofthe26thMeetingofthe9thBoardofDirectorsandthe2ndExtraordinaryGeneralMeetingof2021convenedbytheCompanyrespectivelyon26August2021and13September2021thattheProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveCondition,theCompanyappliedtoreducetheregisteredcapitalofRMB80,000.Therewere4,000sharesoftheCompanywhichwereconvertedfromtheconvertiblebondsin2021.InlinewiththeresolutionofthefirstExtraordinaryGeneralMeetingoftheCompanyon13May2021andtheresolutionofthe30thsessionoftheNinthBoardofDirectorson18February2022,theCompanyappliedforanincreaseofthesharecapitalbyRMB5,838,000,whichwascontributedby343restrictedshareincentivereceiverswithmonetaryfunds.Inconformitywiththeresolutionofthe30thsessionoftheNinthBoardofDirectorsoftheCompanyon18February2022andtheresolutionofthe1stExtraordinaryGeneralMeetingof2022oftheCompanyon7March2022,theProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveCondition,allthe240,000sharesauthorizedtotheoriginalincentivepersonnelwhodidnotconformtotheincentiveconditionoftheCompanywererepurchasedandcancelled.InconformitywiththeresolutionofthesecondsessionoftheTenthBoardofDirectorson29June2022andtheresolutionofthethirdExtraordinaryGeneralMeetingoftheCompanyon15July2022,theProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveCondition,allthe308,000sharesauthorizedtotheoriginalincentivepersonnelwhodidnotconformtotheincentiveconditionoftheCompanywererepurchasedandcancelled.Therewere1,900sharesoftheCompanywhichwereconvertedfromtheconvertiblebondsin2022.Inlinewiththeresolutionofthe3rdExtraordinaryGeneralMeetingoftheCompanyon15July2022,theProposalonRepurchasingtheDomesticallyListedForeignShares(BShares)oftheCompany,theCompanyrepurchased23,935,700Bshares.Inconformitywiththeresolutionofthe7thsessionoftheTenthBoardofDirectorson10April2023andtheresolutionofthe
2022GeneralMeetingoftheCompanyon12May2023,theProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveCondition,allthe90,000sharesauthorizedtotheoriginalincentivepersonnelwhodidnotconformtotheincentiveconditionoftheCompanywererepurchasedandcancelled.Therewere200sharesoftheCompanywhichwereconvertedfromtheconvertiblebondsin2023.Inlinewiththeresolutionofthe1stExtraordinaryGeneralMeetingoftheCompanyon6July2023,theProposalonRepurchasingtheDomesticallyListedForeignShares(BShares)oftheCompany,theCompanyrepurchased46,176,400Bshares.Inconformitywiththeresolutionofthe18thsessionoftheTenthBoardofDirectorson19January2024andtheresolutionoftheFirstExtraordinaryGeneralMeetingoftheCompanyon5February2024,theProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveCondition,allthe665,00sharesauthorizedtotheoriginalincentivepersonnelwhodidnotconformtotheincentiveconditionoftheCompanywererepurchasedandcancelled.Therewere200sharesoftheCompanywhichwereconvertedfromtheconvertiblebondsinH12024.Asat30June2024,theCompany'sregisteredcapitalstoodatRMB817,364,900.TheCompany’sregisteredaddress:No.61,LuthaiAvenue,Hi-techDevelopmentZone,Zibo,ShandongTheCompany’sunifiedsocialcreditcode:91370300613281175KTheCompany’slegalrepresentative:LiuZibinTheCompanyestablishesthecorporategovernancestructureconsistingoftheshareholdersmeeting,theBoardofDirectorsandtheSupervisoryCommittee.Atpresent,theCompanyhassetupvariousdepartmentsincludingtheYarn-dyedFabricProductLine,GarmentProductLine,theClothingMarketingDepartment,theGlobalMarketingDepartment,theSupplyChainDepartment,LuThaiEngineeringTechnologyInstitute,theEnterpriseManagementDepartment,theFinancialManagementDepartmentandtheStrategyandMarketDepartmentetc.ThescopeofbusinessoftheCompanyanditssubsidiariesshallincludegeneralprojects:Fabrictextileprocessing;fabricprintinganddyeingprocessing;garmentmanufacturing;thesalesoftextilesandrawmaterials;clothingwholesale;clothingretail;Internetsales(exceptforthesaleofgoodsrequiringalicense);theproductionofClassImedicaldevices;theproductionofroutinemasks(non-medical);theproductionoflabourprotectionappliances;softwaredevelopment;technicalservices,developmentoftechnology,technologyconsulting,technicalexchange,technologytransferandtechnologypromotion;thesalesoftextilespecialequipment;thesalesofmechanicalandelectricalequipment;theprocurementofprimaryagriculturalproducts;businesstraining(trainingsthatrequireapprovalsuchaseducationaltrainingandvocationalskilltrainingexclusive);housinglease;theleaseofnon-residentialrealestate;theleaseoflandusageright;thesalesofspecialchemicalproducts(dangerouschemicalsexclusive);andthesalesofbuildingmaterials.Itshallalsoincludelicensedprojects(businessactivitiescanbecarriedoutlegallyandindependentlywithbusinesslicenseinadditiontoprojectsthatmustbeapprovedbylaw):Inspectionandtestingservice;cateringservice;powergenerationbusiness,powertransmissionbusiness,andpowersupply(distribution)business.(Forprojectsthatmustbeapprovedbylaw,thebusinessactivitiescanonlybecarriedoutuponapprovalbytherelevantdepartments,andthespecificbusinessprojectsshallbesubjecttotheapprovaldocumentorlicenseofrelevantdepartments)TheCompany’sfinancialstatementsandNotesthereofhavebeenapprovedbythe24thMeetingofthe10thBoardofDirectorsheldon28August2024.
IVBasisforPreparationofFinancialStatements
1.PreparationBasis
Thisfinancialstatementispreparedinaccordancewiththeaccountingstandardsforbusinessenterprises,andtheapplicationguide,interpretationandotherrelevantregulations(hereinaftercollectivelyreferredtoas“AccountingStandardsforBusinessEnterprises”)issuedbytheMinistryofFinance.Inaddition,theCompanyalsodisclosedrelevantfinancialinformationinaccordancewiththeRegulationsonInformationDisclosureandCompilationforCompaniesPublicOfferingSecuritiesNo.15-GeneralProvisionsonFinancialReport(revisedin2023)issuedbyChinaSecuritiesRegulatoryCommission.TheCompany'saccountingisbasedontheaccrualbasis.Exceptforcertainfinancialinstruments,thisfinancialstatementismeasuredonthebasisofhistoricalcost.Iftheassetisimpaired,thecorrespondingimpairmentprovisionshallbemadeinaccordancewithrelevantregulations.
2.Going-concern
Thefinancialstatementsarepresentedonthebasisofcontinuingoperations.
VSignificantAccountingPoliciesandEstimatesSpecificaccountingpoliciesandaccountingestimatesindicators:
TheCompanydeterminesincomerecognitionpolicyaccordingtoitsproductionandoperationcharacteristics,andthespecificaccountingpoliciesareshowninNoteV(27).
1.StatementofCompliancewiththeAccountingStandardsforBusinessEnterprises
ThefinancialstatementspreparedbytheCompanyareincompliancewithincompliancewiththeAccountingStandardsforBusinessEnterprises,whichfactuallyandcompletelypresenttheconsolidated,andtheCompany’sfinancialpositionsasat30June2024,businessresultsandcashflowsforH12024,andotherrelevantinformation.
2.FiscalYearTheCompany’sfiscalyearstartson1Januaryandendson31DecemberofeveryyearaccordingtotheGregoriancalendar.
3.OperatingCycleTheCompanyregards12monthsasanoperatingcycle.
4.RecordingCurrency
TheCompanyanditsdomesticsubsidiariesadoptRMBastherecordingcurrency.TheCompany’soverseassubsidiariesconfirmtoadoptHKDollarandUSDollarastherecordingcurrencyaccordingtheirmajoreconomicenvironmentoftheoperating.WhenpreparingthefinancialstatementsfortheReportingPeriod,theCompanyadoptedRMBastherecordingcurrency.
5.MethodsforDeterminingMaterialityStandardsandSelectionCriteria
?Applicable□Notapplicable
| Item | Materialitycriteria |
| Significantreceivableswithdrawalofbaddebtprovisionseparatelyaccrued | Individualreceivablesexceeding0.3%oftotalassets |
| SignificantreceivablesreversedorrecoveredduringtheReportingPeriod | Individualreceivablesexceeding0.3%oftotalassets |
| Significantwritten-offofreceivablesduringtheReportingPeriod | Individualreceivablesexceeding0.3%oftotalassets |
| Significantprepaymentsagingoveroneyear | Individualprepaymentamountsexceeding0.3%oftotalassets |
| Significantconstructioninprogress | Individualinvestmentamountsexceeding1%oftotalassets |
| Significantaccountspayableagingoveroneyear | Individualaccountspayableamountsexceeding0.3%oftotalassets |
| Significantnon-wholly-ownedsubsidiary | Asubsidiarywhosetotalassets,operatingincome,ortotalprofit(orabsolutelossamount)exceeds10%ofthecorrespondingitemintheconsolidatedfinancialstatementsisconsideredasignificantnon-whollyownedsubsidiary |
| Significantinvestmentactivityprojects | Individualinvestmentamountsexceeding5%oftotalassets |
6.AccountingTreatmentforBusinessCombinationsundertheCommonControlandNotundertheCommonControl
(1)BusinesscombinationsunderthesamecontrolForbusinesscombinationsunderthesamecontrol,theassetsandliabilitiesofthemergedpartyacquiredbythemergerpartyinthemerger,shallbemeasuredatthecarryingvalueofthemergedpartyintheconsolidatedfinancialstatementofthefinalcontrolleronthecombinationdate.Asforthedifferencebetweenthecarryingvalueofthemergerconsiderationandcarryingvalueofthenetassetsobtainedinthemerger,thecapitalreserve(capitalstockpremium)shallbeadjusted,andifthecapitalreserve(capitalstockpremium)isinsufficienttooffset,theretainedearningsshallbeadjusted.RealizebusinesscombinationunderthesamecontrolinstepsbytransactionseveraltimesTheassetsandliabilitiesofthecombinedpartyacquiredbythecombiningpartyinthecombination,shallbemeasuredatthebookvalueofthecombinedpartyintheconsolidatedfinancialstatementofthefinalcontrolleronthecombinationdate;thedifferencebetweenthesumofthebookvalueofinvestmentheldbeforecombinationplusthebookvaluenewlypaidonthecombinationdate,andthebookvalueofthenetassetsacquiredincombination,isusedforadjustingthecapitalreserve(capitalstockpremium),andifthecapitalreserve(capitalstockpremium)isinsufficienttooffset,theretainedearningsshallbeadjusted.Thelong-termequityinvestmentheldbythecombiningpartybeforeacquiringthecontrolrightofthecombinedparty,ifrelevantgainsandlosses,othercomprehensiverevenuesandchangesinotherowner’sequityhavebeenconfirmedfromthedateofacquiringequityandthedatewhenthecombiningpartyandthecombinedpartyunderthefinalcontrolofthesameparty,whicheverislater,tothecombinationdate,shalloffsettheretainedearningsatthebeginningorcurrentprofitsandlossesintheperiodofcomparingstatements.
(2)BusinesscombinationsnotunderthesamecontrolForabusinesscombinationnotunderthesamecontrol,thecostofthecombinationistheassetspaid,liabilitiesincurredorassumed,andthefairvalueoftheequitysecuritiesissuedontheacquisitiondatetoobtaincontroloverthepurchasedparty.Onthepurchasedate,theacquiredassets,liabilitiesandcontingentliabilitiesofthepurchasedpartyarerecognizedatfairvalue.
Thedifferencebetweenthemergercostandthefairvalueoftheidentifiablenetassetsoftheacquiredpartyacquiredinthemerger(theformerisgreaterthanthelatter)isrecognizedasgoodwill,andsubsequentmeasurementismadebasedonthecostdeductingtheaccumulatedimpairmentprovision;thedifferencebetweenthemergercostandthefairvalueoftheidentifiablenetassetsoftheacquiredpartyacquiredinthemerger(theformerislessthanthelatter)shallberecordedintothecurrentprofitorlossaftertherecheck.AchievebusinesscombinationnotunderthesamecontrolstepbystepthroughmultipletransactionsThecostofconsolidationisthesumoftheconsiderationpaidatthepurchasedateandthefairvalueatthepurchasedateoftheequityalreadyheldbytheacquiredpartybeforethepurchasedate.Forequityoftheacquiredpartythatisalreadyheldbeforethepurchasedate,itshallbere-measuredaccordingtothefairvalueoftheequityonthepurchasedate,andthedifferencebetweenthefairvalueanditsbookvalueshallbeincludedinthecurrentinvestmentincome.Iftheequityoftheacquiredpartyheldbeforethepurchasedateinvolvesothercomprehensiveincomeandthechangesofotherowner'sequity,itshallbetransferredtocurrentincomeonthepurchasedate,othercomprehensiveincomearisingfromtheremeasurementofthenetliabilityornetassetofadefinedbenefitplanbytheinvestee,aswellasothercomprehensiveincomerelatedtoinvestmentsinnon-tradingequityinstrumentsdesignatedatfairvaluethroughothercomprehensiveincome,areexcluded.
(3)TreatmentoftransactioncostsinbusinesscombinationsIntermediaryexpensessuchasauditing,legalservices,evaluationandconsultingandotherrelatedmanagementexpensesincurredforthebusinesscombinationshallbeincludedinthecurrentprofitandlosswhenincurred.Thetransactioncostsofequitysecuritiesordebtsecuritiesissuedasthemergerconsiderationshallbeincludedintheinitialrecognitionamountofequitysecuritiesordebtsecurities.
7.CriteriaforJudgingControlandMethodsforPreparingConsolidatedFinancialStatements
(1)CriteriaforjudgingcontrolTheconsolidationscopeoftheconsolidatedfinancialstatementsisdeterminedonthebasisofcontrol.ControlmeansthattheCompanyhasthepowerovertheinvestedunit,enjoysvariablereturnsbyparticipatingintherelatedactivitiesoftheinvestedunit,andhastheabilitytousethepowerovertheinvestedunittoinfluencetheamountofitsreturn.Whenchangesinrelevantfactsandcircumstancesleadtochangesintheelementsinvolvedinthedefinitionofcontrol,theCompanywillreassess.Indeterminingwhethertoincludeastructuredentitywithintheconsolidationscope,theCompanyconsidersallfactsandcircumstances,includingassessingthepurposeanddesignofthestructuredentity'sestablishment,identifyingthetypesofvariablereturns,andevaluatingwhethertheCompanycontrolsthestructuredentitybasedonwhetherithasassumedsomeorallofthevariabilityinreturnsbyparticipatinginitsrelevantactivities.
(2)PreparationmethodofconsolidatedfinancialstatementsTheconsolidatedfinancialstatementsarepreparedbytheCompanybasedonthefinancialstatementsoftheCompanyanditssubsidiariesandotherrelevantmaterials.Whenpreparingtheconsolidatedfinancialstatements,theaccountingpoliciesandaccountingfiscaloftheCompanyandthoseofsubsidiariesshallbeconsistentandthelargetransactionsandintercoursebalanceamongcompaniesshallbeoffset.SubsidiariesandbusinessesincreasedduetobusinesscombinationsunderthesamecontrolduringtheReportingPeriodshallbeincludedintotheCompany’scombinationscopesincethedatewhentheyarejointlycontrolledbythefinalcontroller,andtheoperatingresultandcashflowsincethenshallberespectivelyincludedintotheconsolidatedincomestatementandconsolidatedcashflowstatement.AsforsubsidiariesandbusinessesincreaseduetobusinesscombinationsnotunderthesamecontrolduringtheReportingPeriod,therevenue,expensesandprofitorthosesubsidiariesandbusinessesfromthepurchasedatetotheendoftheReportingPeriodshallbeincludedintotheconsolidatedincomestatementandthecashflowthereofshallbeincludedintotheconsolidatedcashflowstatement.Theshareofshareholders’equityinsubsidiariesnotbelongingtotheCompanyshallberegardedastheminorityinterestsandseparatelylistedundertheitemofshareholders’equityintheconsolidatedbalancesheet.Theshareofcurrentportionofnetprofitorlossinsubsidiariesbelongingtominorityinterestsshallpresentedastheitemofminorityinterestsundertheitemofnetprofitintheconsolidatedincomestatement.The
differencebetweenthelossesofsubsidiariesbornbynot-controllingshareholdersandtheshareofthecompany’sowners’equityattheperiod-beginningthenot-controllingshareholdersenjoy(theformerislargerthanthelatter)shallbeoffsettheminorityinterests.
8.ClassificationofJointArrangementsandAccountingTreatmentofJointOperations
Jointarrangementreferstoanarrangementunderthejointcontroloftwoormoreparticipants.TheCompany'sjointarrangementsaredividedintojointoperationsandjointventures.
(1)JointoperationsAjointoperationreferstoajointarrangementwherebytheCompanyenjoysrelevantassetsofthearrangement,andassumesobligationsrelevantliabilitiesofthearrangement.TheCompanyrecognizesthefollowingitemsrelatedtotheinterestshareinjointoperation,andconductsaccountingtreatmentinaccordancewithrelevantprovisionsoftheAccountingStandardforBusinessEnterprises:
A.Itrecognizesseparatelyheldassetsandjointlyheldassetsaccordingtotheproportion;B.Itrecognizesseparatelyassumedliabilitiesandjointlyassumedliabilitiesaccordingtotheproportion;C.Incomefromthesaleoftheproportionofjointoperationoutputisrecognized;D.Incomefromthesaleofthejointoperationoutputisrecognizedaccordingtotheproportion.E.Whiletheseparatelyincurredfeeisrecognized,theincurredfeeforjointoperationisrecognizedaccordingtotheproportion.
(2)JointventuresAjointventurereferstoajointarrangementwherebytheCompanyenjoystherightofthenetassetsofthearrangementonly.AccountingtreatmentoftheinvestmentofajointventureisconductedbytheCompanyinlinewiththeprovisionsofrelevantequitymethodofaccountingforlong-termequityinvestment.
9.ConfirmationStandardforCashandCashEquivalent
Theterm“cash”referstocashonhandanddepositsthatareavailableforpaymentatanytime.CashequivalentsrefertoinvestmentsheldbytheCompanythatareshort-term,highlyliquid,easilyconvertibleintoknownamountsofcash,andhavelittleriskofchangeinvalue.
10.ForeignCurrencyBusinessesandTranslationofForeignCurrencyFinancialStatements
(1)ForeigncurrencybusinessTheCompany'sforeigncurrencybusinessistranslatedintotheamountoftherecordingcurrencyattheapproximateexchangerateofthespotexchangerateonthetransactiondate.Onthebalancesheetdate,foreigncurrencymonetaryitemsaretranslatedatthespotexchangerateonthebalancesheetdate.Theexchangedifferencearisingfromthedifferencebetweenthespotexchangerateonthebalancesheetdateandthespotexchangerateatthetimeofinitialrecognitionorthepreviousbalancesheetdateisincludedinthecurrentprofitandloss;forforeigncurrencynon-monetaryitemsmeasuredathistoricalcost,thetranslationadoptsthespotexchangerateonthedaythetransactionoccurs;forforeigncurrencynon-monetaryitemsmeasuredatfairvalue,thetranslationadoptsthespotexchangerateonthedaywhenthefairvalueisconfirmed,andthedifferencebetweentheamountofrecordingcurrencyandtheamountoforiginalrecordingcurrencyshallbeincludedintothecurrentprofitorlossorothercomprehensiveincomebasedonthenatureofnon-monetaryitems.
(2)ConversionofforeigncurrencyfinancialstatementsWhenconvertingtheforeigncurrencyfinancialstatementsofoverseassubsidiariesonthebalancesheetdate,theassetsandliabilitiesitemsinthebalancesheetshallbeconvertedatthespotexchangerateonthebalancesheetdate.Otheritemsofshareholders'equityexceptfor"undistributedprofits"shallbeconvertedatthespotexchangerateontheoccurrencedate.
Incomeandexpenseitemsintheincomestatementshallbeconvertedusingtheapproximatespotexchangerateonthetransactiondate.Allitemsinthecashflowstatementareconvertedaccordingtotheapproximatespotexchangerateontheoccurrencedateofcashflow.Theimpactofexchangeratechangesoncashistakenasareconcilingitem,andtheitem"impactofexchangeratechangesoncashandcashequivalents"isseparatelylistedinthecashflowstatementtoreflect.Thedifferencearisingfromtheconversionoffinancialstatementsisreflectedinthe"othercomprehensiveincome"undertheshareholders'equityinthebalancesheet.Whendisposingoftheoverseasoperationandlosingcontrolrights,theforeigncurrencystatementconversiondifferencerelatedtotheoverseasoperationshownundertheshareholders'equityinthebalancesheetshallbetransferredtocurrentprofitandlossofdisposalinwholeorinproportiontothedisposalofoverseasoperation.
11.FinancialInstruments
Financialinstrumentsrefertocontractsthatformoneparty’sfinancialassetsandformotherparties’financialliabilitiesorequityinstruments.
(1)RecognitionandderecognitionoffinancialinstrumentsTheCompanyrecognizesafinancialassetorliabilitywhenitbecomesapartyoftherelevantfinancialinstrumentcontract.Whereafinancialassetsatisfiesanyofthefollowingrequirements,therecognitionofitisterminated:
①Thecontractualrightsforcollectingthecashflowofthesaidfinancialassetareterminated;
②Thesaidfinancialassethasbeentransferredandmeetthefollowingderecognitionconditionsfortransferoffinancialassets.Onlywhentheprevailingobligationsofafinancialliabilityarerelievedinallorinpartmaytherecognitionofthefinancialliabilitybeterminatedinallorpartly.WheretheCompany(debtor)entersintoanagreementwithacreditorsoastosubstitutetheexistingfinancialliabilitiesbywayofanynewfinancialliability,andifthecontractualstipulationsregardingthenewfinancialliabilityissubstantiallydifferentfromthatregardingtheexistingfinancialliability,itterminatestherecognitionoftheexistingfinancialliability,andatthesametimerecognizesthenewfinancialliability.Thepurchaseandsaleoffinancialassetsunderthenormalwaysshallberecognizedandstoppedtoberecognizedrespectivelyatthepriceoftransactiondate.
(2)ClassificationandmeasurementoffinancialassetsTheCompanyclassifiesfinancialassetsintothefollowingthreecategoriesaccordingtothebusinessmodeofmanagingfinancialassetsandthecontractualcashflowcharacteristicsoffinancialassetsuponinitialrecognition:financialassetsmeasuredatamortizedcost,financialassetsmeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincome,andfinancialassetsmeasuredatfairvalueandwhosechangesareincludedincurrentprofitandloss.Financialassetsaremeasuredatfairvalueuponinitialrecognition.Forfinancialassetsmeasuredatfairvalueandwhosechangesareincludedincurrentprofitandloss,relevanttransactionexpensesaredirectlyincludedincurrentprofitandloss;forothertypesoffinancialassets,relevanttransactionexpensesareincludedintheinitialrecognitionamount.Foraccountsreceivablearisingfromthesaleofproductsortheprovisionoflaborservices,whichdonotincludeordonotconsidersignificantfinancingcomponents,theamountofconsiderationtheCompanyisexpectedtobeentitledtoreceiveistakenastheinitialrecognitionamount.FinancialassetsmeasuredatamortizedcostTheCompanyclassifiesfinancialassetsthatmeetthefollowingconditionsandarenotdesignatedtobemeasuredatfairvalueandwhosechangesareincludedincurrentprofitandlossasfinancialassetsmeasuredatamortizedcost:
TheCompany'sbusinessmodelformanagingthisfinancialassetisaimedatcollectingcontractualcashflow;Thecontractualtermsofthisfinancialassetstipulatethatthecashflowgeneratedonthespecificdateisonlythepaymentofprincipalandinterestbasedontheprincipalamountoutstanding.
Suchfinancialassetsaremeasuredinamortizedcostbytheeffectiveinterestmethodafterinitialrecognition.Gainsorlossesarisingfromfinancialassetsmeasuredinamortizedcostthatarenotpartofanyhedgingrelationshipareincludedincurrentprofitandlosswhenderecognition,amortizationaccordingtotheeffectiveinterestmethod,orimpairmentisrecognized.FinancialassetsmeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincomeTheCompanyclassifiesfinancialassetsthatmeetthefollowingconditionsandarenotdesignatedtobemeasuredatfairvalueandwhosechangesareincludedincurrentprofitandlossasfinancialassetsmeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincome:
TheCompany'sbusinessmodelformanagingthisfinancialassetisaimedatbothcollectingthecontractualcashflowandsellingthisfinancialasset;Thecontractualtermsofthisfinancialassetstipulatethatthecashflowgeneratedonthespecificdateisonlythepaymentofprincipalandinterestbasedontheprincipalamountoutstanding.Suchfinancialassetsaresubsequentlymeasuredatfairvalueafterinitialrecognition.Interest,impairmentlossesorgainsandexchangegainsandlossescalculatedbytheeffectiveinterestmethodareincludedincurrentprofitandloss,whileothergainsorlossesareincludedinothercomprehensiveincome.Whenthefinancialassetisderecognized,theaccumulatedgainsorlossespreviouslyincludedinothercomprehensiveincomearetransferredoutandincludedincurrentprofitandloss.FinancialassetsmeasuredatfairvalueandwhosechangesareincludedincurrentprofitandlossExceptfortheabovefinancialassetsmeasuredatamortizedcostandatfairvaluewithchangesincludedinothercomprehensiveincome,theCompanyclassifiesallotherfinancialassetsasfinancialassetsmeasuredatfairvaluewithchangesincludedincurrentprofitandloss.Uponinitialrecognition,inordertoeliminateorsignificantlyreduceaccountingmismatches,theCompanyirrevocablydesignatessomefinancialassetsthatshouldhavebeenmeasuredatamortizedcostoratfairvalueandwhosechangesareincludedinothercomprehensiveincomeasfinancialassetsmeasuredatfairvalueandwhosechangesareincludedincurrentprofitandloss.Suchfinancialassetsaresubsequentlymeasuredatfairvalueafterinitialrecognition,andtheresultinggainsorlosses(includinginterestanddividendincome)areincludedincurrentprofitandlossunlessthefinancialassetsarepartofthehedgingrelationship.ThebusinessmodelofmanagingfinancialassetsreferstohowtheCompanymanagesfinancialassetstogeneratecashflow.ThebusinessmodeldetermineswhetherthecashflowofthefinancialassetsmanagedbytheCompanycomesfromthecollectionofcontractualcashflow,thesaleoffinancialassetsorboth.TheCompanydeterminesthebusinessmodelformanagingfinancialassetsonthebasisofobjectivefactsandspecificbusinessobjectivesdecidedbykeymanagementpersonneltomanagefinancialassets.TheCompanyevaluatesthecontractualcashflowcharacteristicsoffinancialassetstodeterminewhetherthecontractualcashflowgeneratedbytherelevantfinancialassetsonthespecificdateisonlythepaymentofprincipalandinterestbasedontheprincipalamountoutstanding.Amongthem,theprincipalreferstothefairvalueoffinancialassetsuponinitialrecognition;interestincludesconsiderationforthetimevalueofmoney,creditrisksrelatedtotheprincipalamountoutstandinginthespecificperiod,andotherbasiclendingrisks,costsandprofits.Inaddition,theCompanyevaluatesthecontracttermsthatmayleadtochangesinthetimedistributionoramountofcontractualcashflowoffinancialassetstodeterminewhethertheymeettherequirementsoftheabove-mentionedcontractualcashflowcharacteristics.OnlywhentheCompanychangesthebusinessmodeofmanagingfinancialassetswillallaffectedrelatedfinancialassetsbereclassifiedonthefirstdayofthefirstreportingperiodafterbusinessmodelchanges,otherwisefinancialassetscannotbereclassifiedafterinitialrecognition.
(3)ClassificationandmeasurementoffinancialliabilitiesTheCompany'sfinancialliabilitiesareclassifieduponinitialrecognitionas:financialliabilitiesmeasuredatfairvalueandwhosechangesareincludedincurrentprofitandloss,andfinancialliabilitiesmeasuredatamortizedcost.Forfinancialliabilitiesthatarenotclassifiedasmeasuredatfairvalueandwhosechangesareincludedincurrentprofitandloss,relevanttransactioncostsareincludedintheinitialrecognitionamount.
FinancialliabilitiesmeasuredatfairvalueandwhosechangesareincludedincurrentprofitandlossFinancialliabilitiesmeasuredatfairvalueandwhosechangesareincludedincurrentprofitandlossincludetransactionalfinancialliabilitiesandfinancialliabilitiesdesignatedasmeasuredatfairvalueuponinitialrecognitionandwhosechangesareincludedincurrentprofitandloss.Subsequentmeasurementshallbecarriedoutaccordingtofairvalueforsuchfinancialliabilities.Gainsorlossesresultingfromchangesinfairvalueanddividendsandinterestexpensesrelatedtosuchfinancialliabilitiesshallbeincludedincurrentprofitandloss.FinancialliabilitiesmeasuredatamortizedcostOtherfinancialliabilitiesaresubsequentlymeasuredatamortizedcostbyusingtheeffectiveinterestmethod.Gainsorlossesresultingfromderecognitionoramortizationareincludedincurrentprofitandloss.DistinctionbetweenfinancialliabilitiesandequityinstrumentsFinancialliabilitiesrefertoliabilitiesthatmeetoneofthefollowingconditions:
①Thecontractualobligationtodelivercashorotherfinancialassetstootherparties.②Thecontractualobligationtoexchangefinancialassetsorfinancialliabilitieswithotherpartiesunderpotentiallyunfavorableconditions.③Non-derivativecontractsthatmustbeorcanbesettledwiththeenterprise'sownequityinstrumentsinthefuture,andtheenterprisewilldeliveravariablenumberofitsownequityinstrumentsaccordingtothecontract.④Derivativecontractsthatmustbeorcanbesettledwiththeenterprise'sownequityinstrumentsinthefuture,exceptderivativescontractsthatexchangeafixedamountofcashorotherfinancialassetswithafixedamountofitsownequityinstruments.Equityinstrumentsrefertocontractsthatcanprovethatanenterprisehastheresidualequityinitsassetsafterdeductingallliabilities.IftheCompanycannotunconditionallyavoidperformingacontractualobligationbydeliveringcashorotherfinancialassets,thecontractualobligationmeetsthedefinitionoffinancialliability.IfafinancialinstrumentmustbeorcanbesettledwiththeCompany'sownequityinstruments,itisnecessarytoconsiderwhethertheCompany'sownequityinstrumentsusedtosettletheinstrumentareusedassubstitutesforcashorotherfinancialassetsortoenabletheholderofthisinstrumenttoenjoytheresidualequityintheassetsafterdeductingallliabilitiesfromtheissuer.Ifitistheformer,thisinstrumentistheCompany'sfinancialliability;ifthelatteristhecase,thisinstrumentistheCompany'sequityinstrument.
(4)DerivativefinancialinstrumentsandembeddedderivativesTheCompany'sderivativefinancialinstrumentsincludeforwardforeignexchangecontractsandexchangeoptioncontracts,etc.Initially,thefairvalueonthedatewhenthederivativetransactioncontractissignedshallbeusedformeasurement,andthefairvalueshallbeusedforsubsequentmeasurement.Derivativefinancialinstrumentswithpositivefairvaluearerecognizedasanasset,whilethosewithnegativefairvalueareindeedrecognizedasaliability.Anygainsorlossesarisingfromchangesinfairvaluethatdonotconformtotheprovisionsofhedgeaccountingaredirectlyincludedincurrentprofitandloss.Forhybridinstrumentscontainingembeddedderivatives,suchasthemaincontractisafinancialasset,therelevantprovisionsonclassificationoffinancialassetsshallapplytothehybridinstrumentsasawhole.Ifthemaincontractisnotafinancialasset,andthehybridinstrumentisnotmeasuredatfairvalueanditschangesareincludedincurrentprofitandlossforaccountingtreatment,theembeddedderivativeinstrumenthasnocloserelationshipwiththemaincontractintermsofeconomiccharacteristicsandrisks,andhasthesameconditionsastheembeddedderivativeinstrument,andtheseparateexistinginstrumentmeetsthedefinitionofderivativeinstrument,theembeddedderivativeinstrumentshallbeseparatedfromthehybridinstrumentandtreatedasaseparatederivativefinancialinstrument.Ifitisnotpossibletoseparatelymeasureembeddedderivativeinstrumentsatthetimeofacquisitionorthesubsequentbalancesheetdate,thehybridinstrumentsasawholearedesignatedasfinancialassetsorfinancialliabilitiesmeasuredatfairvalueandtheirchangesareincludedincurrentprofitandloss.
(5)FairvalueoffinancialinstrumentsSeeNoteV(12)forthemethodofdeterminingthefairvalueoffinancialassetsandliabilities.
(6)ImpairmentoffinancialassetsTheCompanyconductsimpairmentaccountingtreatmentforthefollowingitemsandconfirmsthelossprovisionbasedontheexpectedcreditlosses:
Financialassetsmeasuredatamortizedcost;Receivablesanddebtinstrumentinvestmentsmeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincome;ContractassetsdefinedintheAccountingStandardsforBusinessEnterprisesNo.14-Revenue;Leasereceivables;Financialguaranteecontracts(exceptthosethataremeasuredatfairvalueandwhosechangesareincludedincurrentprofitandloss,thetransferoffinancialassetsdoesnotmeettheconditionsforderecognitionorcontinuetoinvolveinthetransferredfinancialassets).MeasurementofexpectedcreditlossExpectedcreditlossreferstotheweightedaverageofthecreditlossesoffinancialinstrumentsweightedbytheriskofdefault.CreditlossreferstothedifferencebetweenallcontractualcashflowsdiscountedattheoriginaleffectiveinterestrateandreceivableaccordingtothecontractandallcashflowsexpectedtobecollectedoftheCompany,i.e.thepresentvalueofallcashshortfalls.Consideringthereasonableandreliableinformationaboutpastevents,currentsituationandtheforecastoffutureeconomicsituation,thecompanytakestheriskofdefaultastheweight,calculatestheprobabilityweightedamountofthepresentvalueofthedifferencebetweenthecashflowreceivablefromthecontractandthecashflowexpectedtobereceived,andconfirmstheexpectedcreditloss.TheCompanyseparatelymeasurestheexpectedcreditlossesoffinancialinstrumentsatdifferentstages.Ifthecreditriskoffinancialinstrumentshasnotincreasedsignificantlysincetheinitialrecognition,itisinthefirststage.TheCompanymeasuresthelossreserveaccordingtotheexpectedcreditlossinthenext12months;ifthecreditriskoffinancialinstrumentshasincreasedsignificantlysinceitsinitialrecognitionbutnocreditimpairmenthasoccurred,itisinthesecondstage.TheCompanymeasuresthelossreserveaccordingtotheexpectedcreditlossduringthewholedurationofthisinstrument;ifthefinancialinstrumenthassufferedcreditimpairmentsinceitsinitialrecognition,itisinthethirdstage.TheCompanymeasuresthelossreserveaccordingtotheexpectedcreditlossduringthewholedurationofthisinstrument.Forfinancialinstrumentswithlowcreditriskonthebalancesheetdate,theCompanyassumesthattheircreditriskhasnotincreasedsignificantlysincetheinitialrecognition,andmeasuresthelossreserveaccordingtotheexpectedcreditlossinthenext12months.Theexpectedcreditlossduringthewholedurationreferstotheexpectedcreditlosscausedbyallpossibledefaulteventsduringthewholeexpecteddurationoffinancialinstruments.Theexpectedcreditlossinthenext12monthsreferstotheexpectedcreditlosscausedbythepossibledefaulteventsoffinancialinstrumentswithin12months(ortheexpecteddurationiftheexpecteddurationoffinancialinstrumentsislessthan12months)afterthebalancesheetdate,whichispartoftheexpectedcreditlossinthewholeduration.Whenmeasuringtheexpectedcreditloss,thelongesttermthattheCompanyneedstoconsideristhelongestcontracttermthattheenterprisefacescreditrisk(includingtheoptiontorenewthecontract).TheCompanycalculatesinterestincomebasedonthebookbalancebeforedeductingimpairmentprovisionsandtheeffectiveinterestrateforfinancialinstrumentsinthefirstandsecondstagesandwithlowcreditrisk.Theinterestincomeshallbecalculatedaccordingtotheirbookbalanceminustheamortizedcostafterimpairmentprovisionandtheeffectiveinterestrateforfinancialinstrumentsinthethirdstage.Forreceivablessuchasnotesreceivable,accountsreceivable,accountsreceivablefinancing,otherreceivables,andcontractassets,ifthecreditriskcharacteristicsofaparticularcustomersignificantlydifferfromthoseofothercustomersintheportfolio,orifthereisasignificantchangeinthecustomer'screditriskcharacteristics,theCompanywillmakereceivableswithdrawalofbad
debtprovisionseparatelyaccrued.Apartfromreceivableswithdrawalofbaddebtprovisionseparatelyaccruedaremade,theCompanyclassifiesreceivablesintoportfoliosbasedoncreditriskcharacteristicsandcalculatestheallowancefordoubtfuldebtsonaportfoliobasis.Notesreceivable,accountsreceivableandcontractassetsTheCompanyalwaysmeasuresitslossreservesatanamountequivalenttotheexpectedcreditlossduringtheentiredurationfornotesreceivable,contractassetsandaccountsreceivable,regardlessofwhetherthereisanysignificantfinancingcomponent.Ifasinglefinancialassetorcontractassetscannotbeusedtoevaluatetheexpectedcreditlossinformationatareasonablecost,theCompanywilldividethenotesreceivable,accountsreceivableandcontractassetsintoportfolioonthebasisofthecreditriskfeatures,andcalculatetheexpectedcreditlossbasedontheportfolio.Thebasisfordeterminingtheportfolioisasfollows:
A.Notesreceivable
Notesreceivableportfolio1:bankacceptancebillswithlowcreditratingNotesreceivableportfolio2:commercialacceptancebillsB.Accountsreceivable
Accountsreceivableportfolio1:paymentnotoverdue(withL/C)Accountsreceivableportfolio2:paymentnotoverdue(withcreditinsurance)Accountsreceivableportfolio3:paymentoverdue(withoutcreditinsurance)Accountsreceivableportfolio4:paymentoverdue(withcreditinsurance)Accountsreceivableportfolio5:paymentoverdue(withoutcreditinsurance)Fornotesreceivableandcontractassetsdividedintoportfolios,withreferencetohistoricalcreditlossexperience,combinedwithcurrentconditionsandpredictionsoffutureeconomicconditions,theCompanyhascalculatedexpectedcreditlossesthroughdefaultriskexposureandexpectedcreditlossratefortheentireduration.Foraccountsreceivabledividedintoportfolios,withreferencetohistoricalcreditlossexperience,combinedwithcurrentconditionsandpredictionsoffutureeconomicconditions,theCompanyhaspreparedacomparisontablebetweenthenumberofaging/overduedaysofaccountsreceivableandtheexpectedcreditlossrateovertheentireduration,andhascalculatedtheexpectedcreditloss.Theagingofaccountsreceivableiscalculatedfromthedateofrecognition/thenumberofdaysoverdueiscalculatedfromtheexpirydateofthecreditperiod.OtherreceivablesTheCompanydividesotherreceivablesintoseveralportfoliosbasedonthefeaturesofcreditrisk,andcalculatestheexpectedcreditlossesonthebasisofthecombination.Thebasisfordeterminingtheportfolioisasfollows:
Otherreceivablesportfolio1:ReceivablesfromrelatedpartieswithinthescopeofconsolidationOtherreceivablesportfolio2:TaxrefundreceivableOtherreceivablesportfolio3:DepositreceivableandsecuritydepositOtherreceivablesportfolio4:otherreceivablesForotherreceivablesthataredividedintoportfolios,theCompanycalculatestheexpectedcreditlosswiththedefaultriskexposureandtheexpectedcreditlossratewithinthenext12monthsortheentireduration.Forotherreceivablesclassifiedintoportfoliosbyaging,theagingiscalculatedfromthedateofrecognition.Creditors'investmentandothercreditors'investmentForcreditors'investmentandothercreditors'investment,theCompanycalculatestheexpectedcreditbasedonthenatureoftheinvestment,aswellaskindsoftypesofcounterpartiesandriskexposures,thedefaultriskexposureandtheexpectedcreditlossratewithinthenext12monthsortheentiredurationloss.AssessmentonsignificantincreaseofcreditriskInordertodeterminetherelativechangesinthedefaultriskoffinancialinstrumentsduringtheirexpectedlifeandtoassesswhetherthecreditriskoffinancialinstrumentshasincreasedsignificantlysinceinitialrecognition,theCompanycomparesthedefaultriskoffinancialinstrumentsonthebalancesheetdatewiththedefaultriskontheinitialrecognitiondate.
Whendeterminingwhetherthecreditriskhasrisengreatlysincetheinitialrecognition,theCompanyconsidersreasonableandreliableinformation(forward-lookinginformationinclusive)thatcanbeobtainedwithoutunnecessaryextracostsorefforts.TheinformationtheCompanyconsidersshallinclude:
Thedebtorfailstopaytheprincipalandinterestaccordingtothecontractexpirationdate;Theexternalorinternalcreditratings(ifany)offinancialinstruments,whichhaveoccurredorareexpected,deterioratesignificantly;Thedebtor’soperatingresults,whichhaveoccurredorareexpected,deterioratesignificantly;Existingorexpectedchangesintechnology,market,economyorlegalenvironmentwillleadtoagreatadverseeffectonthedebtor'sabilitytorepaytheCompany.Basedonthenatureoffinancialinstruments,theCompanyassesseswhetherthereisgreatriskincreditriskonthebasisofindividualfinancialinstrumentsorfinancialinstrumentportfolios.Duringassessmentbasedonfinancialinstrumentportfolios,theCompanycandividefinancialinstrumentsonthebasisofcommoncreditriskcharacteristics,suchasoverdueinformationandcreditriskratings.Incasethattheperiodoverdueexceeds30days,theCompanydeterminesthatthereisasignificantincreaseinthecreditriskoffinancialinstruments.FinancialassetswithdepreciationofcreditTheCompanyassesses,onthebalancesheetdate,whetherthereisanycreditimpairmenttofinancialassetsmeasuredatamortizedcostandcreditors'investmentmeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincome.Incaseofoneormoreeventsthatadverselyaffecttheexpectedfuturecashflowofafinancialassetoccur,thefinancialassetwillbecomefinancialassetswithdepreciationofcredit.Theobservableinformationbelowcanbetreatedasevidenceforcreditimpairmenttofinancialassets:
Theissuerordebtoriscaughtinaseriousfinancialdifficulty;Thedebtorbreachestheagreementofcontract,suchasdefaultoroverduepaymentofinterestorprincipal,orotherdefault;Duetoeconomicorcontractualconsiderationsrelatedtothedebtor'sfinancialdifficulties,theCompanygivesconcessionstothedebtor;andtheconcessionswillnotbemadeunderanyothercircumstances;Thereliesagreatprobabilityofbankruptcyorotherfinancialrestructuringforthedebtor;Theissuerordebtoriscaughtinfinancialdifficulties,whichleadstothedisappearanceoftheactivemarketofthefinancialasset;PresentationofexpectedcreditlossprovisionTheCompanyremeasuresexpectedcreditlossesoneachbalancesheetdatetoreflectthechangesinthecreditriskoffinancialinstrumentssinceinitialrecognition;theincreaseorreversalamountofthelossreserveformedtherefromshallbeincludedinthecurrentprofitandlossasimpairmentlossesorgains.Forfinancialassetsmeasuredatamortizedcost,thelossallowanceoffsetsthecarryingamountofthefinancialassetlistedinthebalancesheet;forcreditors’investmentthataremeasuredatfairvalueanditschangesareincludedinothercomprehensiveincome,theCompanyrecognizesitslossreserveinothercomprehensiveincomeandwillnotoffsetthecarryingamountofthefinancialasset.Write-offsIncasethattheCompanyfailstoreasonablyexpectthecontractcashflowofthefinancialassettoberecoveredinafullorpartialscale,thebookbalanceofthefinancialassetwillbewrittenoffdirectly.Suchwrite-downsmayconstitutethederecognitionforrelatedfinancialassets.ThissituationoccursfrequentlywhentheCompanydeterminesthatthedebtordoesnothaveanyassetsoranysourceofincometogeneratesufficientcashflowtorepaytheamountthatwillbewrittenoff.However,inaccordancewiththeproceduresforrecoveringduepaymentsoftheCompany,thewritten-offfinancialassetsmaystillbeaffectedbytheexecutionactivities.Incasethatthefinancialassetwrittenoffisrecoveredlater,itshallbeincludedinthecurrentprofitandlossasthereversaloftheimpairmentloss.
(7)Transferoffinancialassets
Thetransferoffinancialassetsreferstothetransferordeliveryoffinancialassetstoanotherparty(transferee)otherthantheissuerofthefinancialasset.IftheCompanyhastransferredalmostalltherisksandrewardsoftheownershipoffinancialassetstothetransferee,derecognizethefinancialasset;ifitretainsalmostalltherisksandrewardsoftheownershipoffinancialassets,thefinancialassetwillnotbederecognized.IftheCompanyhasneithertransferrednorretainedalmostalltherisksandrewardsoftheownershipoffinancialassets,itshallbedealtwithinthefollowingsituations:ifthecontrolofthefinancialassetisabandoned,theconfirmationofthefinancialassetshallbeterminatedandthegeneratedassetsandliabilitiesshallbeconfirmed;Ifthefinancialassetsarecontrolled,therelevantfinancialassetsshallberecognizedaccordingtotheextentoftheircontinuedinvolvementinthetransferredfinancialassets,andtherelevantliabilitiesshallberecognizedaccordingly.
(8)OffsettingfinancialassetsandfinancialliabilitiesWhentheCompanyhasalegalrightthatiscurrentlyenforceabletosetofftherecognizedfinancialassetsandfinancialliabilities,andintendseithertosettleonanetbasis,ortorealizethefinancialassetandsettlethefinancialliabilitysimultaneously,afinancialassetandafinancialliabilityshallbeoffsetandthenetamountispresentedinthebalancesheet.Exceptfortheabovecircumstances,financialassetsandfinancialliabilitiesshallbepresentedseparatelyinthebalancesheetandshallnotbeoffset.
12.MeasurementofFairValue
Fairvaluereferstothepricethatmarketparticipantscanreceivefromsalesofaassetorshallpayfortransferofaliabilityintheorderlytransactionthatoccursonthemeasurementdate.TheCompanymeasuresrelatedassetsorliabilitiesatfairvalue,assumingthattheorderlytransactionofsellingassetsortransferringliabilitiesisconductedinthemainmarketofrelatedassetsorliabilities;ifthereisnomainmarket,theCompanyassumesthatthetransactionisconductedinthemostbeneficialmarket.Themainmarket(orthemostfavorablemarket)isthetradingmarketthattheCompanycanenteronthemeasurementdate.TheCompanyusestheassumptionsusedbymarketparticipantstomaximizetheireconomicbenefitswhenpricingtheassetorliability.Forfinancialassetsorfinancialliabilitieswithactivemarkets,theCompanyusesthequotationinactivemarketstodetermineitsfairvalue.Ifthereisnoactivemarketforfinancialinstruments,theCompanyusesvaluationtechniquestodetermineitsfairvalue.Whenmeasuringnon-financialassetsatfairvalue,theabilityofmarketparticipantstobestusetheassetforgeneratingeconomicbenefits,ortheabilitytoselltheassettoothermarketparticipantsthatcanbestusetheassettogenerateeconomicbenefitsshallbeconsidered.TheCompanyadoptsvaluationtechniquesthatareapplicableinthecurrentsituationandhavesufficientavailabledataandotherinformationtosupportit.Priorityisgiventousingrelevantobservableinputvalues.Onlywhenobservableinputvalues??areunavailableorarenotfeasibletoobtain,theunobservableinputvaluescanbeused.Forassetsandliabilitiesmeasuredordisclosedatfairvalueinthefinancialstatements,thefairvaluehierarchytowhichtheybelongisdeterminedbasedonthelowestlevelinputvaluethatisimportanttothefairvaluemeasurementasawhole:thefirstlevelinputvalueistheunadjustedquotationofthesameassetsorliabilitiesabletobeobtainedinanactivemarketonthemeasurementdate;thesecondlevelinputvalueisthedirectlyorindirectlyobservableinputvalueoftherelevantassetorliabilityexceptthefirstlevelinputvalue;thethirdlevelinputvalueisunobservableinputvalueofrelatedassetsorliabilities.Oneachbalancesheetdate,theCompanyreassessedtheassetsandliabilitiescontinuouslymeasuredatfairvalueconfirmedinthefinancialstatementstodeterminewhetherthereisatransitionamonglevelsoffairvaluemeasurement.
13.Inventory
(1)ClassificationInventoriesmainlyincluderawmaterials,work-in-progress,stockproducts,productsprocessedonentrustmentandetc.
(2)ValuationmethodofinventoriesacquiringandissuingInventoriesshallbemeasuredatactualcostwhenacquired,andthecostoftheinventoriesincludingtheprocurementcost,processingcostandothercosts.Greyyarn,dyedyarn,andplusmaterialshallbemeasuredatfirst-infirst-outmethodwhenacquiredanddelivered;otherinventoriesshallbemeasuredaspertheweightedaveragemethod
(3)BasisfordeterminingnetrealizablevalueofinventoriesandprovisionmethodsfordeclineinvalueofinventoriesOnthebalancesheetdate,theinventoriesshallbemeasuredatthelowerofcostandnetrealizablevalue.Whentheirnetrealizablevaluefallsbelowcost,anallowanceforinventoryimpairmentisprovided.Netrealizablevalueistheestimatedsellingpriceintheordinarycourseofbusinesslesstheestimatedcostsofcompletion,theestimatedcostsnecessarytomakethesaleandrelevanttaxes.Netrealizablevalueisdeterminedonthebasisofclearevidenceobtained,andtakesintoconsiderationthepurposeofholdinginventoriesandeffectofpostbalancesheetevents.TheCompanygenerallyprovidesforinventorydepreciationonaper-itembasis.Forinventoriesthatarenumerousinquantityandlowinunitprice,anallowanceforinventoryimpairmentisprovidedbasedoninventorycategories.Onthebalancesheetdate,ifthefactorsaffectingthevalueofinventoriespreviouslywrittendownhavedisappeared,theprovisionforinventorywrite-downsisreversedtotheextentoftheoriginalamountprovided.
(4)Theperpetualinventorysystemismaintainedforstocksystem.
(5)Amortizationmethodofthelow-valueconsumptiongoodsandpackingarticlesFortheLow-valueconsumptiongoodsandthepackingarticlesshouldbeamortizedbyone-offamortizationmethodwhenconsuming.
14.Long-termEquityInvestments
Long-termequityinvestmentsincludeequityinvestmentsinsubsidiaries,jointventuresandassociatedenterprises.TheinvesteethattheCompanyisabletoexertsignificantinfluenceisanassociatedenterpriseoftheCompany.
(1)DeterminationofinitialinvestmentcostLong-termequityinvestmentthatformsabusinesscombination:Long-termequityinvestmentobtainedbybusinesscombinationunderthesamecontrol,onthemergerdate,basedonthebookvalueshareofthemergedparty’sowners’equityinthefinalcontroller’sconsolidatedfinancialstatementsasinvestmentcost;Thelong-termequityinvestmentacquiredbyabusinesscombinationshallbetheinvestmentcostofthelong-termequityinvestmentaccordingtothecostofthecombination.Forlong-termequityinvestmentsobtainedbyothermeans:thelong-termequityinvestmentobtainedbypayingcashshallbetheinitialinvestmentcostaccordingtotheactualpurchaseprice;thelong-termequityinvestmentobtainedbyissuingequitysecuritiesshallbetheinitialinvestmentcostofthefairvalueoftheequitysecuritiesissued.
(2)SubsequentmeasurementandprofitandlossconfirmationmethodInvestmentinsubsidiariesisaccountedforusingthecostmethodunlesstheinvestmentmeetstheconditionsforholdingforsale;investmentinassociatesandjointventuresisaccountedforusingtheequitymethod.Forlong-termequityinvestmentsthatareaccountedforusingthecostmethod,inadditiontothecashdividendsorprofitsthathavebeendeclaredbutnotyetincludedintheactualpaymentorconsiderationincludedintheinvestment,thecashdividendsorprofitsdeclaredbytheinvestedentityarerecognizedasinvestmentincomeandrecordedintothecurrentprofitandloss.Forlong-termequityinvestmentsaccountedforusingtheequitymethod,wheretheinitialinvestmentcostisgreaterthanthefairvalueshareoftheinvestee’sidentifiablenetassetsatthetimeofinvestment,theinvestmentcostofthelong-termequityinvestmentisnotadjusted;whentheinitialinvestmentcostislessthantheinvestment,theinvestee’sIfthefairvalueshareofnetassetsisidentified,thebookvalueofthelong-termequityinvestmentisadjusted,andthedifferenceisincludedinthecurrentprofitandlossoftheinvestment.Whenusingtheequitymethodofaccounting,theinvestmentincomeandothercomprehensiveincomearerecognizedseparatelyaccordingtotheshareofnetprofitandlossandothercomprehensiveincomerealizedbytheinvestedunitthatshouldbeenjoyedorshared,andthebookvalueofthelong-termequityinvestmentisadjustedatthesametime;Thedistributionofprofitsorcash
dividendsshouldbecalculatedtoreducethebookvalueoflong-termequityinvestment;theinvestee'sotherchangesinowner'sequityotherthannetprofitandloss,othercomprehensiveincomeandprofitdistribution,adjustthebookvalueoflong-termequityinvestmentandIncludedincapitalreserves(othercapitalreserves).Whenconfirmingtheshareoftheinvestee’snetprofitorloss,basedonthefairvalueoftheinvestee’sidentifiableassetsatthetimeofinvestment,andinaccordancewiththeCompany’saccountingpoliciesandaccountingperiod,thenetprofitoftheinvesteeConfirmaftermakingadjustments.Iftheadditionalinvestmentandotherreasonscanexertsignificantinfluenceontheinvesteeorexercisejointcontrolbutdonotconstitutecontrol,ontheconversiondate,thesumofthefairvalueoftheoriginalequityplustheadditionalinvestmentcostwillbeusedastheinitialaccountingfortheequitymethodcostofinvestment.Iftheoriginalequityisclassifiedasnon-tradingequityinstrumentinvestmentmeasuredatfairvaluewhosechangesareincludedinothercomprehensiveincome,therelevantoriginalandaccumulativechangesinfairvalueincludedinothercomprehensiveincomeshallbetransferredtoretainedearningswhenaccountingbyequitymethod.Ifthejointcontrolorsignificantinfluenceontheinvestedunitislostduetothedisposalofpartoftheequityinvestment,etc.,theremainingequityafterthedisposalshallbechangedtotheAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstrumentsisperformed,andthedifferencebetweenfairvalueandbookvalueisincludedinthecurrentprofitandloss.Othercomprehensiveincomerecognizedbytheoriginalequityinvestmentduetotheequitymethodofaccountingshallbeaccountedforonthesamebasisastheinvestee’sdirectdisposalofrelatedassetsorliabilitieswhentheequitymethodofaccountingisterminated;changesinotherowners’equityrelatedtotheoriginalequityinvestmentTransfertocurrentprofitandloss.Ifthecontroloftheinvestedunitislostduetothedisposalofpartoftheequityinvestment,iftheremainingequityafterthedisposalcanexercisejointcontrolorexertsignificantinfluenceontheinvestedunit,theequitymethodisusedforaccountingandtheremainingequityistreatedasWhenacquiring,theequitymethodisadoptedforadjustment;iftheremainingequityafterdisposalcannotexercisejointcontrolorexertsignificantinfluenceontheinvestee,theaccountingshallbechangedaccordingtotherelevantprovisionsof"AccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstrumentsThedifferencebetweenthefairvalueandthebookvalueonthedateoflossofcontrolisincludedinthecurrentprofitandloss.Iftheshareholdingratioofthecompanydecreasesduetothecapitalincreaseofotherinvestors,therebylosingcontrolbutbeingabletoexercisejointcontrolorexertsignificantinfluenceontheinvestee,thenewshareholdingratioshallbeusedtoconfirmthatthecompanyshouldenjoythecapitalincreaseoftheinvestee.Thedifferencebetweentheincreaseinshareandtheincreaseintheshareofnetassetsandtheoriginalbookvalueofthelong-termequityinvestmentcorrespondingtothedecreaseintheproportionoftheshareholdingthatshouldbecarriedforwardareincludedinthecurrentprofitandloss;Thatis,adjustmentsaremadeusingtheequitymethodofaccounting.TheunrealizedinternaltransactiongainsandlossesthatoccurbetweentheCompanyandassociatesandjointventuresarecalculatedaccordingtotheshareholdingratioandareattributedtotheCompany,andtheinvestmentgainsandlossesarerecognizedonthebasisofoffset.However,theunrealizedinternaltransactionlossesincurredbytheCompanyandtheinvesteearetheimpairmentlossesofthetransferredassetsandshallnotbeoffset.
(3)DeterminethebasisforjointcontrolandsignificantinfluenceontheinvestedunitJointcontrolreferstothecommoncontrolofanarrangementinaccordancewiththerelevantagreement,andrelatedactivitiesofthearrangementmustbeagreeduponbythepartiessharingcontrolrightsbeforetheycanmakedecisions.Whenjudgingwhetherthereisjointcontrol,firstdeterminewhetherallparticipantsoracombinationofparticipantscollectivelycontrolthearrangement,andsecondlydeterminewhetherthedecision-makingrelatedactivitiesofthearrangementmustbeunanimouslyagreedbytheparticipantswhocollectivelycontrolthearrangement.IfallparticipantsoraCompanyofparticipantsmustactinconcerttodeterminetherelevantactivitiesofanarrangement,itisconsideredthatallparticipantsoraCompanyofparticipantscollectivelycontrolthearrangement;ifthereisacombinationoftwoormoreparticipantscancollectivelyControllinganarrangementdoesnotconstitutejointcontrol.Whenjudgingwhetherthereisjointcontrol,theprotectiverightsenjoyedarenotconsidered.
Significantinfluencemeansthattheinvestorhastherighttoparticipateinthedecision-makingofthefinancialandoperatingpoliciesoftheinvestedunit,butcannotcontrolorjointlycontroltheformulationofthesepolicieswithotherparties.Whendeterminingwhetheritcanexertsignificantinfluenceontheinvestedunit,considerthattheinvestordirectlyorindirectlyholdsthevotingsharesoftheinvestedunitandthecurrentexecutablepotentialvotingrightsheldbytheinvestorandotherpartiesareassumedtobeconvertedintotheinvestedunitAftertheequityofthecompany,theimpactincludesthecurrentconvertiblewarrants,stockoptionsandconvertiblecorporatebondsissuedbytheinvestee.WhentheCompanydirectlyorindirectlyownsmorethan20%(including20%)butlessthan50%ofthevotingsharesoftheinvestedunit,itisgenerallyconsideredtohaveasignificantimpactontheinvestedunit,unlessthereisclearevidencethatsuchcircumstancescannotparticipateintheproductionandoperationdecisionsoftheinvestedunit,anddoesnothaveasignificantimpact;whentheCompanyownslessthan20%(excluding)votingrightsoftheinvestedunit,itgenerallydoesnotconsiderittohaveasignificantimpactontheinvestedunitunlessthereisclearevidencethatUnderthesecircumstances,itcanparticipateintheproductionandoperationdecisionsoftheinvestedunitandhaveasignificantimpact.
(4)ImpairmenttestmethodandimpairmentprovisionmethodFortheinvestmentsinsubsidiaries,associatesandjointventures,themethodofaccruingassetimpairmentisshownintheNoteV-22.
15.InvestmentProperty
MeasurementmodelofinvestmentrealestateCostingmethodmeasurementDepreciationoramortizationmethodTheinvestmentrealestatereferstotherealestategainingtherentorcapitalappreciationorboth.Itincludesrentedlanduseright,holdinglanduserighttobetransferredaftertheappreciationandrentedbuilding,etc.Theinvestmentrealestateismeasuredinitiallyaccordingtothecostandwithdrawndepreciationoramortizationasregulationsoffixedassetsorintangibleassets.TheCompanyadoptsthecostmodetoconductthesubsequentmeasurementontheinvestmentrealestate,seetheNoteV-22forthemethodofwithdrawingassetimpairmentprovision.Thedifferencebetweenthedisposalincomeofinvestmentrealestatesales,transfer,scrapordamageafterdeductingitsbookvalueandrelatedtaxesisincludedinthecurrentprofitandloss.
16.FixedAssets
(1)ConditionsforRecognitionTheterm“fixedassets”referstothetangibleassetsthatsimultaneouslypossessthefeaturesasfollows:(a)theyareheldforthesakeofproducingcommodities,renderinglaborservice,rentingorbusinessmanagement;and(b)theirusefullifeisinexcessofonefiscalyear.ThefixedassetsareonlyrecognizedwhentherelevanteconomicbenefitsprobablyflowintheCompanyanditscostcouldbereliablemeasured.ThefixedassetsoftheCompanyareinitiallymeasuredattheactualcostatthetimeofacquisition.ThesubsequentexpendituresrelatedtothefixedassetsshallbeincludedinthecostofthefixedassetswhentheeconomicbenefitsrelatedtothefixedassetsarelikelytoflowintotheCompanyandthecostscanbemeasuredreliably.Thedailyrepairexpensesoffixedassetsthatdonotmeettheconditionsofcapitalizedsubsequentexpendituresoffixedassetsshallbeincludedinthecurrentprofitandlossorthecostofrelevantassetsaccordingtothebeneficiarieswhenincurred.Thebookvalueofthereplacedpartshallbeterminated.
(2)DepreciationMethods
| Categoryoffixedassets | Method | Usefullife | Salvagevalue(%) | Annualdeprecation(%) |
| Housingandbuilding | Averagemethodofusefullife | 5-30 | 0-10 | 20.00-3.00 |
| Machineryequipments | Averagemethodofusefullife | 10-18 | 0-10 | 10.00-5.00 |
| Transportationvehicle | Averagemethodofusefullife | 5 | 0-10 | 20.00-18.00 |
| Electronicequipmentsandothers | Averagemethodofusefullife | 5 | 0-10 | 20.00-18.00 |
(3)RecognitionBasis,PricingandDepreciationMethodofFixedAssetunderFinanceLease
SeetheNoteV-22fordetails.
(4)Attheendofeachyear,reviewiscarriedoutbytheCompanyfortheservicelife,estimatednetresidualvalueanddepreciationmethodoffixedassets.Ifthereisanydifferencebetweentheexpectedservicelifeandtheoriginalestimatedservicelife,theservicelifeoffixedassetswillbeadjusted;ifthereisanydifferencebetweentheexpectednetresidualvalueandtheoriginalestimatednetresidualvalue,theexpectednetresidualvaluewillbeadjusted
(5)DisposalofFixedAssets
Afixedassetshallbederecognizedwhenitisdisposedoforitisexpectedthatnoeconomicbenefitcanbegeneratedbyusingordisposingofit.Theamountofthedisposalincomeofsales,transfer,scrapordamageofthefixedassetafterdeductingitsbookvalueandrelatedtaxesisincludedinthecurrentprofitandloss.
17.ConstructioninProgress
Constructioninprocessismeasuredatactualcost.Actualcostcomprisesconstructioncosts,borrowingcoststhatareeligibleforcapitalizationbeforethefixedassetsbeingreadyfortheirintendedusandotherrelevantcosts.Constructioninprocessistransferredtofixedassetswhentheassetsarereadyfortheirintendeduse.SeethedetailsoftheimpairmentprovisionwithdrawalmethodoftheconstructioninprogresstoNotesV-22.
18.EngineeringMaterialsEngineeringmaterialsoftheCompanyrefertovariousmaterialspreparedforprojectsunderconstruction,includingengineeringmaterials,equipmentnotyetinstalled,toolsandinstrumentspreparedforproduction,etc.Thepurchasedengineeringmaterialswillbemeasuredaccordingtothecost.Thereceivedengineeringmaterialswillbetransferredtotheprojectunderconstruction,andtheremainingengineeringmaterialsafterthecompletionoftheprojectwillbestoredasinventory.PleaserefertoNoteV(22)forthemethodofprovisionforimpairmentofassetsforengineeringmaterials.Inthebalancesheet,theendingbalanceofengineeringmaterialsislistedinthe"projectunderconstruction"item.
19.BorrowingCosts
(1)ConfirmationprincipleofCapitalizedBorrowingExpenseTheborrowingexpensesincurredbytheCompany,ifcandirectlybelongtoacquisition,constructionorproductionofassetsmeetingcapitalizationconditions,arecapitalizedandincludedinrelevantassetcost;otherborrowingexpensesareconfirmedasexpenseaccordingtoitsamountatthetimeofoccurrenceandincludedinthecurrentprofitsandlosses.Iftheborrowingexpensesmeetthefollowingconditions,capitalizationstarts:
①Assetsexpenditurehasoccurred,andassetexpenditureincludestheexpenditureoccurringintheformofpaymentincash,transferringnoncashassetorassuminginterestbearingdebtforacquiring,constructingorproducingtheassetsmeetingcapitalizationconditions;
②Borrowingexpenseshaveoccurred;
③Theacquisition,constructionorproductionactivitiesrequiredformakingassetsusableorsaleableasintendedhavestarted.
(2)CapitalizationperiodofborrowingexpensesWhentheCompanyacquires,constructsorproducesassets,whichmeetcapitalizationconditionsandreachtheintendedusableorsaleablestatus,theborrowingexpensesstopcapitalization.Theborrowingexpensesthatoccuraftertheassetsmeetingcapitalizationconditionsreachtheintendedusableorsaleablestatusareconfirmedasexpensesaccordingtoitsamountatthetimeofoccurrenceandareincludedinthecurrentprofitsandlosses.Iftheassetsmeetingcapitalconditionsgenerateimproperinterruptioninthecourseofacquisition,constructionorproduction,andtheinterruptiontimecontinuouslyexceedsthreemonths,capitalizationofborrowingexpensessuspends;theborrowingexpensesinthenormalinterruptionperiodarecontinuallycapitalized.
(3)CapitalizationrateofborrowingexpensesandcalculationmethodofcapitalizedamountTheinterestexpensesofspecialborrowingactuallyoccurringinthecurrentperiod,minustheinterestincomeoftheunusedborrowedcapitalobtainedfromdepositinginbankorthegainontemporaryinvestment,arecapitalized;forcommonborrowing,theweightedaverageofassetexpenditureofthepartthatthecumulativeassetexpenditureexceedsspecialborrowingismultipliedbythecapitalizationrateoftheoccupiedcommonborrowingtodeterminecapitalizationamount.Capitalizationrateiscalculatedanddeterminedaccordingtotheweightedaveragerateofcommonborrowing.Intheperiodofcapitalization,theexchangedifferenceofspecialborrowinginforeigncurrencyisfullycapitalized;theexchangedifferenceofspecialborrowinginforeigncurrencyisincludedinthecurrentprofitsandlosses.
20.IntangibleAssets
(1)Servicelifeanditsbasisfordetermination,estimate,amortizationmethodorreviewprocedureTheintangibleassetsoftheCompanyincludelanduseright,patentright,etc.Intangibleassetsareinitiallymeasuredatcost,andtheirservicelifeisanalyzedanddeterminedwhenintangibleassetsareacquired.Iftheservicelifeofintangibleassetsislimited,theintangibleassetsshallbeamortizedbythemethodthatcanreflecttheexpectedrealizationmethodoftheeconomicbenefitsrelatedtotheassetswithintheexpectedservicelifesincetheyareavailableforuse.Thestraight-linemethodshallbeusedforamortizationifnoexpectedrealizationmethodcanbedeterminedreliably.Intangibleassetswithuncertainservicelifeshallnotbeamortized.Theamortizationmethodofintangibleassetswithlimitedservicelifeisasfollows:
| Category | Servicelife | Amortizationmethod | Note |
| Landuseright | Stipulatedinthelandcertificate | Methodofline | |
| Patentuseright | 10years | Methodofline |
| Softwareuseright | 1-3years | Methodofline |
| Branduseright | 10years | Methodofline |
Attheendofeachyear,theCompanyreviewstheservicelifeandamortizationmethodofintangibleassetswithlimitedservicelife.Iftheestimateisdifferentfromthepreviousone,theoriginalestimateshallbeadjustedandtreatedasperaccountingestimatechange.Ifitisestimatedthatanintangibleassetcannolongerbringfutureeconomicbenefitstotheenterpriseonthedateofbalancesheet,thiscarryingamountoftheintangibleassetshallbetransferredintothecurrentprofitandloss.ThemethodofwithdrawingimpairmentonintangibleassetswasstatedintheNoteV-22.
21.ResearchandDevelopmentExpendituresTheCompany'sR&DexpenditurerelatesdirectlytoR&Dactivities,includingR&Dpersonnel'semployeeremuneration,directinputexpenses,depreciationexpensesandlong-termamortizationexpenses,designexpenses,equipmentcommissioningexpenses,amortizationexpensesofintangibleassets,commissionedexternalresearchanddevelopmentexpenses,andotherexpenses,etc.ThewagesofR&DpersonnelareallocatedtoR&Dexpenditurebasedonprojecthours.R&Dactivitiesthatshareequipment,productionlines,orsiteswithotherproductionandoperationalactivitiesareallocatedtoR&Dexpenditurebasedontheproportionofhoursorareaused.Theexpendituresforinternalresearchanddevelopmentprojectsofanenterpriseshallbeclassifiedintoresearchexpendituresanddevelopmentexpenditures.Theresearchexpendituresshallberecordedintotheprofitorlossforthecurrentperiod.Thedevelopmentexpenditurescanbecapitalizedonlywhentheysatisfythefollowingconditionssimultaneously:①Itisfeasibletechnicallytofinishintangibleassetsforuseorsale;②Itisintendedtofinishanduseorselltheintangibleassets;③Theusefulnessofmethodsforintangibleassetstogenerateeconomicbenefitsshallbeproved,includingbeingabletoprovethatthereisapotentialmarketfortheproductsmanufacturedbyapplyingtheintangibleassetsorthereisapotentialmarketfortheintangibleassetsitselfortheintangibleassetswillbeusedinternally;④Itisabletofinishthedevelopmentoftheintangibleassets,andabletouseorselltheintangibleassets,withthesupportofsufficienttechnologies,financialresourcesandotherresources;⑤Thedevelopmentexpendituresoftheintangibleassetscanbereliablymeasured.Thedevelopmentexpendituresshallberecordedintoprofitorlossforthecurrentperiodwhentheydon’tsatisfythefollowingconditions.TheresearchanddevelopmentprojectoftheCompanywillenterthedevelopmentstageaftermeetingtheaboveconditionsandtheprojectisapprovedandinitiatedthroughtechnicalfeasibilityandeconomicfeasibilitystudy.Thecapitalizedexpenditureinthedevelopmentstageislistedasexpenditurefordevelopmentonthebalancesheet,anditwillbetransferredtointangibleassetsfromthedatewhentheprojectreachestheintendedpurpose.
22.ImpairmentofLong-termAssetsForlongtermequityinvestmentinsubsidiaries,associatedenterprisesandjointventures,investmentrealestatewhichfollow-upmeasurementiscarriedoutbycostpattern,fixedassets,constructioninprogress,right-of-useassets,intangibleassets,businessreputation,etc.(excludinginventory,investmentpropertymeasuredatfairvaluepattern,deferredincometaxassets,financialassets),theimpairmentofassetsshallbedeterminedaccordingtothefollowingmethods:
Onthedateofthebalancesheet,determinationshallbemadetoseewhetherthereisanysignofpossibleimpairmentofassets.Ifthereis,theCompanywillestimateitsrecoverableamountandconductimpairmenttest.Forgoodwill,intangibleassetswithuncertainservicelifeandintangibleassetsthathavenotreachedtheserviceablestateduetobusinessmerger,impairmenttestshallbecarriedouteveryyearregardlessofwhetherthereisanysignofimpairment.
Therecoverableamountisdeterminedaccordingtothenetamountofthefairvalueoftheassetminusthedisposalexpensesandthepresentvalueoftheexpectedfuturecashflowoftheasset,thehigheramountshallbeprevail.TheCompanyestimatestherecoverableamountonthebasisofasingleasset.Ifitisdifficulttoestimatetherecoverableamountofasingleasset,therecoverableamountoftheassetgroupshallbedeterminedbasedontheassetgrouptowhichtheassetbelongs.Theassetgroupisdeterminedonthebasisofwhetherthemaincashinflowgeneratedbytheassetgroupisindependentofthecashinflowofotherassetsorassetgroups.Whentherecoverableamountofanassetorassetgroupislowerthanitscarryingamount,thegroupwillwritedownitscarryingamounttotherecoverableamount,andthewrittendownamountwillbeincludedinthecurrentprofitandloss,andthecorrespondingassetimpairmentreservewillbeaccrued.Regardingtheimpairmenttestofbusinessreputation,thecarryingamountofbusinessreputationformedbybusinessmergershallbeapportionedtotherelevantassetgroupinareasonablewayfromthedateofpurchase.Ifitisdifficulttoapportiontotherelevantassetgroup,itshallbeapportionedtotherelevantcombinationofassetgroup.Therelevantassetgrouporcombinationofassetgroupsistheonethatcanbenefitfromthesynergyeffectofbusinessmerger,andistheonesmallerthanthereportablesegmentdeterminedbytheCompany.Intheimpairmenttest,ifthereisanysignofimpairmentintheassetgrouporcombinationofassetgroupsrelatedtobusinessreputation,first,impairmenttestshallbecarriedoutontheassetgrouporcombinationofassetgroupsnotcontainingbusinessreputation,tocalculatetherecoverableamountandrecognizethecorrespondingimpairmentloss.Thenimpairmenttestshallbecarriedoutontheassetgrouporcombinationofassetgroupcontainingbusinessreputationtocomparethecarryingamountwiththerecoverableamount.Iftherecoverableamountislowerthanthecarryingamount,theimpairmentlossofbusinessreputationshallberecognized.Oncetheimpairmentlossofassetsisrecognized,itwillnotbereversedinthefutureaccountingperiod.
23.Long-termDeferredExpensesThelong-termexpensestobeamortizedincurredbytheCompanyarevaluedattheactualcostandamortizedaveragelyaccordingtotheexpectedbenefitperiod.Forlong-termexpensestobeamortized,theamortizedvaluethatcannotbenefitthefutureaccountingperiodshallbeincludedinthecurrentprofitandloss.
24.Payroll
(1)AccountingTreatmentofShort-termCompensationDuringtheaccountingperiodinwhichemployeesprovideservices,theCompanyrecognizestheactualemployeewages,bonuses,socialinsurancepremiumssuchasmedicalinsurancepremiums,industrialinjuryinsurancepremiums,andmaternityinsurancepremiumsandhousingprovidentfundspaidtoemployeesaccordingtotheprescribedstandardsandproportionsasliabilitiesandincludedtheminthecurrentprofitandlossorrelatedassetcosts.
(2)AccountingTreatmentoftheWelfareafterDeparture
Thepost-employmentbenefitplanincludesadefinedcontributionplanandadefinedbenefitplan.Amongthem,thedefinedcontributionplanreferstothepost-employmentbenefitplanthattheenterprisenolongerassumesfurtherpaymentobligationsafterthefixedfundhaspaidafixedfee;thedefinedbenefitplanreferstothepost-employmentbenefitplanotherthantheestablishedcontributionplan.SetwithdrawalplanThesetcontributionplanincludesbasicpensioninsuranceandunemploymentinsurance.
Duringtheaccountingperiodinwhichemployeesprovideservices,theamountofdepositpayablecalculatedaccordingtothesetwithdrawalplanisrecognizedasaliabilityandincludedinthecurrentprofitandlossorrelatedassetcosts.
(3)AccountingTreatmentoftheDemissionWelfareTheCompanyrelievesthelaborrelationwiththeemployeesbeforetheduedateofthelaborcontactsorputsforwardtheadviceofprovidingthecompensationforurgingtheemployeesvolunteeredtoreceivethedownsizingandwhentheCompanycouldnotunilaterallywithdrawthedemissionwelfareowningtotherelievingplanofthelaborrelationorthedownsizingadvice,shouldconfirmtheliabilitiesoftheemployees’salaryfromthedemissionwelfareontheearlierdaybetweenthecostconfirmedbytheCompanyandthecostrelatedtothereorganizationofthepaymentofthedemissionwelfareandincludeswhichinthecurrentgainsandlosses.
(4)AccountingTreatmentoftheWelfareofOtherLong-termStaffs
Otherlong-termemployeebenefitsprovidedbytheCompanytoemployeesthatmeettheconditionsofdefinedcontributionplansshallbehandledinaccordancewiththeabove-mentionedrelevantprovisionsondefinedcontributionplans.Thoseinlinewiththedefinedbenefitplanshallbehandledinaccordancewiththeabove-mentionedrelevantprovisionsonthedefinedbenefitplan.However,thepartof"changescausedbyremeasuringthenetliabilitiesornetassetsofthedefinedbenefitplan"inthesalarycostofrelevantemployeesshallbeincludedinthecurrentprofitandlossortherelevantassetcost.
25.Provisions
Iftheobligationrelatedtocontingencymeetsthefollowingconditionsatthesametime,theCompanywillrecognizeitasaprovision.
(1)TheobligationisthecurrentobligationassumedbytheCompany;
(2)TheperformanceoftheobligationislikelytocauseanoutflowofeconomicbenefitsoftheCompany;
(3)Theamountoftheobligationcanbemeasuredreliably.Theprovisionsareinitiallymeasuredinaccordancewiththeoptimalestimateofthenecessaryexpendituresforthefulfillmentofthecurrentobligation,withfactorssuchasrisks,uncertaintyandthetimevalueofmoneyrelatedtocontingenciestakenintoconsiderationcomprehensively.Wherethetimevalueofmoneyhasasignificantimpact,thebestestimateisdeterminedbydiscountingtherelevantfuturecashoutflow.TheCompanyre-checksthebookvalueoftheprovisionsonthebalancesheetdateandadjuststhebookvaluetoreflectthecurrentbestestimate.Ifallorpartoftheexpenditurerequiredtosettlerecognizedprovisionsisexpectedtobecompensatedbyathirdpartyorotherparties,theamountofcompensationshallberecognizedseparatelyasanassetonlywhenitissubstantiallycertainthatitwillbereceived.Therecognizedamountofcompensationshallnotexceedthebookvalueoftherecognizedliabilities.
26.Share-basedPaymentsandEquityInstruments
(1)Categoryofshare-basedpaymentTheshare-basedpaymentsoftheCompanyaredividedintoequity-settledsharepaymentsandcash-settledsharepayments.
(2)MethodofdeterminingthefairvalueofequityinstrumentsTheCompanyshalldeterminethefairvalueofequityinstrumentssuchasoptionsgrantedinactivemarketsaccordingtothequotationsinactivemarkets.Forgrantedequityinstrumentssuchasoptionswithoutactivemarkets,thefairvalueisdeterminedbyoptionpricingmodel.Thefollowingfactorsshallbeconsideredfortheselectedoptionpricingmodel:A.Exercisepriceofthe
option;B.Expirationdateoftheoption;C.Currentpriceoftheobjectshares;D.Expectedfluctuationrateofstockprice;E.Estimateddividendsofshares;F.Risk-freeinterestratewithintheoptionterm.
(3)GroundforrecognizingtheoptimalestimationoffeasiblerightequityinstrumentsOneachbalancesheetdateduringthewaitingperiod,theCompanyshallmaketheoptimalestimatebasedonsubsequentinformationsuchasthelatestchangeinthenumberofemployeeswithfeasiblerights,andrevisethenumberofequityinstrumentsfortheestimatedfeasiblerights.Onthefeasiblerightdate,thefinalestimatednumberoffeasiblerightequityinstrumentsshallbethesameastheactualnumberoffeasiblerights.
(4)Relevantaccountingtreatmentforimplementing,modifyingandterminatingshare-basedpaymentplanEquity-settledshare-basedpaymentsshallbemeasuredatthefairvalueoftheequityinstrumentsgrantedtoemployees.Wheretherightisexercisedimmediatelyafterthegrant,relevantcostsorfeesshallbeincludedinaccordancewiththefairvalueoftheequityinstrumentsonthegrantdatetoaccordinglyincreasethecapitalreserve.Wheretherightisexerciseduponthecompletionoftheservicesduringthewaitingperiodortheachievementofthespecifiedresultconditions,theservicesobtainedinthecurrentperiodshallbeincludedintherelevantcostsorfeesandthecapitalreserveaccordingtothefairvalueoftheequityinstrumentsonthegrantdatebasedontheoptimalestimateofthenumberoffeasiblerightequityinstrumentsoneachbalancesheetdateduringthewaitingperiod.Therecognizedrelatedcostsorfeesandtotalowner'sequityafterthefeasiblerightdateshallnotbeadjustedanymore.WhentheCompanymodifiesashare-basedpaymentplan,ifthemodificationincreasesthefairvalueoftheequityinstrumentsgranted,theincreaseintheservicesacquiredshallberecognizedaccordinglyaccordingtotheincreaseinthefairvalueoftheequityinstruments;ifthemodificationincreasesthenumberofequityinstrumentsgranted,thefairvalueoftheincreasedequityinstrumentsshallberecognizedaccordinglyastheincreaseintheservicesacquired.Theincreaseinthefairvalueoftheequityinstrumentsreferstothedifferencebetweenthefairvaluesoftheequityinstrumentsbeforeandafterthemodificationonthemodificationdate.Ifthemodificationreducesthetotalfairvalueoftheshare-basedpaymentoranyothermethodnotconducivetotheemployeesisadoptedtomodifythetermsandconditionsoftheshare-basedpaymentplan,theaccountingtreatmentoftheservicesacquiredwouldcontinue,asifsuchchangehadneveroccurred,unlesstheCompanycancelssomeorallofthegrantedequityinstruments.Duringthewaitingperiod,ifthegrantedequityinstrumentiscanceled(Excludingthosecancelledduetofailuretomeetnon-market-basedvestingconditions,suchasserviceconditionsornon-market-basedperformanceconditions.),theCompanyshalltreatthecanceledequityinstrumentasanacceleratedexercise,immediatelyincludetheleftamounttoberecognizedduringthewaitingperiodinthecurrentprofitandloss,andrecognizethecapitalreserveatthesametime.Wheretheemployeeorotherpartycanchoosetomeetthenon-feasiblerightconditionbutfailsduringthewaitingperiod,itshallbetreatedasthecancellationofthegrantedequityinstrument.
(5)RestrictedSharesIntheequityincentiveplan,theCompanygrantsrestrictedstockstotheincentivepersonnel,whofirstlysubscribethestocks.Iftheunlockingconditionsspecifiedintheequityincentiveplanarenotmet,theCompanywillrepurchasethestocksatthepreviouslyagreedprice.Wheretherestrictedstocksissuedtotheemployeeshasgonethroughcapitalincreaseproceduressuchasregistrationinaccordancewithrelevantprovisions,theCompanyshall,onthegrantdate,recognizethesharecapitalandthecapitalreserveinconformitywiththesubscriptionpaymentreceivedfromtheemployees.Meanwhile,itshallrecognizethetreasurystocksandotherpayableswithrespecttorepurchaseobligations.
27.Revenue
Accountingpoliciesadoptedfortherecognitionandmeasurementofrevenuedisclosedbytypeofbusiness
(1)GeneralprincipleTheCompanyrecognizesrevenuewhenithasfulfilleditscontractperformanceobligationinacontract,namely,whenthecustomerobtainsthecontrolovertherelatedcommodityorservice.
Ifacontractcontainstwoormoreperformanceobligations,theCompanyallocatestransactionpricetosingleperformanceobligationsonthecontractcommencementdateaccordingtotherelativeratioofseparatepriceofgoodsorservicescommittedbysingleperformanceobligation,andincomeismeasuredaccordingtothetransactionpriceallocatedtosingleperformanceobligation.Whenmeetingoneofthefollowingconditions,theCompanybelongstoperformanceofcontractperformingobligationsinaperiod,orotherwise,theCompanybelongstoperformanceofcontractperformingobligationsatapointoftime:
①WhiletheCompanyisperformingthecontract,thecustomeracquiresandconsumestheeconomicbenefitarisingfromperformancebytheCompany.②ThecustomercancontrolthegoodsinconstructioninthecourseofperformancebytheCompany.③ThegoodsoutputtedinthecourseofperformancebytheCompanyhaveirreplaceablepurpose,andtheCompanyhastherighttocollectionofmoneyforthecompletedperformancepartcumulativeuptonowinthewholetermofcontract.Fortheperformanceobligationperformedinaperiod,theCompanyconfirmsincomeaccordingtotheperformanceprogressinsuchperiod.Whentheperformanceprogresscannotbereasonablydetermined,ifthecostthattheCompanyhasincurredisexpectedtobecompensated,incomeisconfirmedaccordingtothecostamountthathasoccurred,untiltheperformanceprogresscanbereasonablydetermined.Fortheperformanceobligationperformedatapointoftime,incomeisconfirmedatthepointoftimewhenthecustomeracquiresthecontrolrighttorelevantgoodsorservices.Whenitjudgeswhetherthecustomerhasacquiredthecontrolrighttothegoodsorservices,theCompanywillconsiderthefollowingindications:
①TheCompanyenjoysthecurrentcollectionrighttothegoodsorservices,i.e.thecustomerundertakescurrentpaymentobligationtothegoods.②TheCompanyhastransferredthelegalownershipofthegoodstothecustomer,thatis,thecustomerhasownedthelegalownershipofthegoods.③TheCompanyhastransferredthekindofthegoodstothecustomer,namely,thecustomerhaspossessedthegoodinkind.④TheCompanyhastransferredthemajorrisksandremunerationontheownershipofthegoods,i.e.thecustomerhasacquiredthemajorrisksandremunerationontheownershipofthegoods.⑤Thecustomerhasacceptedthegoodsorservices.⑥Otherindicationsshowingthatthecustomerhasacquiredthecontrolrighttothegoods.TheCompanyhastransferredgoodsorservicesandhastherighttocollectconsideration(andtherightdependsonfactorsotherthantimeelapse)ascontractassets,andcontractassetisaccruedimpairmentonthebasisofexpectedcreditloss(refertoNoteV-11.TherightoftheCompany,unconditionally(onlydependingontimeelapse)chargingconsiderationfromthecustomer,islistedasreceivable.TheobligationoftheCompanythatshalltransfergoodsorservicestothecustomerfortheconsiderationthathasbeenorshallbecollectedisliabilitytothecontract.Thecontractassetsandcontractliabilitiesunderthesamecontractarelistedinnetamount.Ifnetamountisdebitbalance,itislistedintheitems“contractasset”or“othernon-currentasset”accordingtoitsfluidity;ifnetamountiscreditbalance,itislistedintheitems“contractliability”or“othernon-currentliability”accordingtoitsfluidity.
(2)SpecificmethodsThespecificincomeconfirmingmethodsoftheCompanyarefollowing:
Forincomeofdomesticproducts,aftertheCompanydeliversproductstothepurchaseraccordingtotheprovisionsofthecontractandthepurchaserconfirmsreceipt,thepurchaseracquiresthecontrolrightofproducts,andtheCompanyconfirmsincome.Forincomeofexportableproducts,aftertheCompanycompletescustomsdeclarationofproducts,departureandobtainsbillofladingaccordingtotheprovisionsofthecontract,thepurchaseracquiresthecontrolrightofproducts,andtheCompanyconfirmsincome.Differencesinmethodsfortherecognitionandmeasurementofrevenuecausedbydifferentbusinessmodelsforthesametypeofbusiness
28.ContractCostsContractcostincludestheincrementalcostincurredforacquiringcontractandcontractperformancecost.TheincrementalcostincurredforacquiringcontractreferstothecostthatwillnotoccuriftheCompanyhasnotacquiredcontract(forexample,salescommission).Ifthecostisexpectedtoberecovered,theCompanyregardsitascontractacquiringcostandconfirmsitasanasset.TheexpensesincurredbytheCompanyforacquiringcontract,otherthantheincrementalcostexpectedtoberecovered,areincludedinthecurrentprofitsandlossesatthetimeofoccurrence.Ifthecostincurredforperformanceofcontractdoesnotbelongtoinventoryandotherscopeofothercorporateaccountingstandardsandmeetsthefollowingconditions,theCompanywillregarditascontractperformancecostandconfirmitasanasset:
①Thecostisdirectlyrelatedtoacopyofcontractcurrentlyacquiredorexpectedtobeacquired,includingdirectlabor,directmaterials,manufactureexpenses(orsimilarexpenses),costdeterminedtobeundertakenbythecustomerandothercostincurredduetothecontract;
②ThecostincreasestheresourcesoftheCompanythatwillbeusedforperformanceofcontractobligationsinthefuture;
③Thecostisexpectedtoberecovered.Theassetsconfirmedbythecontractacquiringcostandtheassetsconfirmedbythecontractperformancecost(“assetsrelatedtocontractcost”)areamortizedaccordingtothesamebasisasconfirmationofgoodsorserviceincomerelatedtotheassetandareincludedinthecurrentprofitsandlosses.Iftheamortizationtermdoesnotexceedoneyear,itwillbeincludedinthecurrentprofitsandlossesatthetimeofoccurrence.Whenthebookvalueofanassetrelatedtocontractcostishigherthanthedifferencebetweenthefollowingtwoitems,theCompanyaccruesprovisionforimpairmenttotheexcessivepartandconfirmsitasimpairmentloss:
①TheremainingconsiderationthattheCompanyexpectstoacquirefromtransferofgoodsorservicesrelatedtotheasset;
②Thecostthatwilloccurfortransferofsuchrelatedgoodsorservicesasestimated.
29.GovernmentGrants
Governmentgrantsarerecognizedwhentheymeettheconditionsattachedtogovernmentgrantsandwhentheycanbereceived.Governmentgrantsformonetaryassetsshallbemeasuredaccordingtotheamountreceivedorreceivable.Governmentgrantsfornon-monetaryassetsshallbemeasuredbyfairvalue.AssetrelatedgovernmentgrantsrefertothegovernmentgrantsobtainedbytheCompanyforacquisitionandconstructionorotherformsoflong-termassets.Inaddition,theyaregovernmentgrantsrelatedtoincome.Regardingthegovernmentgrantsthatthegovernmentdocumentdoesnotspecifytheobjectofsubsidyandcanformlong-termassets,thepartofgovernmentsubsidycorrespondingtotheassetvalueshallberegardedastheasset-relatedgovernmentsubsidyandtherestshallberegardedasincome-relatedgovernmentsubsidy.Ifitisdifficulttodistinguish,thegovernmentsubsidyshallberegardedastheincome-relatedgovernmentsubsidy.Thegovernmentgrantsrelatedtoassetsshallberecognizedasthedeferredincome,whichshallbeincludedintheprofitandlossininstallmentinareasonableandsystematicwaywithintheservicelifeoftherelevantassets.Income-relatedgovernmentgrantswhichareusedtocompensatetherelevantcostsorlossesincurredshallbeincludedinthecurrentprofitandloss.Thoseusedtocompensatetherelevantcostsorlossesinthelaterperiodshallbeincludedinthedeferredincome,andshallbeincludedinthecurrentprofitandlossduringtherecognitionperiodoftherelevantcostsorlosses.Thegovernmentgrantsmeasuredaccordingtothenominalamountshallbedirectlyincludedinthecurrentprofitandloss.ThesamemethodisadoptedforthesameorsimilargovernmentsubsidybusinessesoftheCompany.Governmentgrantsrelatedtodailyactivitiesshallbeincludedinotherincomesaccordingtotheessenceofbusinesstransactions.Governmentgrantsirrelevanttodailyactivitiesareincludedinnon-businessincome.Whentherecognizedgovernmentgrantsneedtobereturned,andareusedtooffsetthecarryingvalueofrelatedassetswheninitiallyrecognized,thecarryingvalueoftheassetsshallbeadjusted;thebookbalanceofrelevantdeferredincomeshallbeoffset
ifthereisabalanceofrelevantdeferredincome,andtheexcesspartshallbeincludedinthecurrentprofitandloss.Otherwise,itshallbedirectlyincludedinthecurrentprofitandloss.Regardingtheinterestsubsidyofthepolicypreferentialloanobtained,iftheMinistryofFinanceallocatestheinterestsubsidytotheloanbank,theactualreceivedloanamountshallbetakenastheentryvalueoftheloan,andtheloancostshallbecalculatedaccordingtotheloanprincipalandthepolicypreferentialinterestrate.IftheMinistryofFinanceallocatestheinterestsubsidydirectlytotheCompany,theinterestsubsidywilloffsettheborrowingcosts.
30.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities
Incometaxincludescurrentincometaxanddeferredincometax.Allshallbeincludedinthecurrentprofitandlossasincometaxexpenseexcepttheadjustmentbusinessreputationarisingfrombusinessmerger,orthedeferredincometaxrelatedtothetransactionsoreventsdirectlyincludedintheowner'sequityisincludedintheowner'sequity.Pursuanttothetemporarydifferencebetweenthecarryingamountofassetsandliabilitiesonthedateofbalancesheetandthetaxbasis,theCompanyrecognizesthedeferredincometaxbybalancesheetliabilitymethod.Foralltaxabletemporarydifferences,relateddeferredincometaxliabilitiesarerecognized,unlessthetaxabletemporarydifferencesaregeneratedinthefollowingtransactions:
(1)Theinitialrecognitionofbusinessreputationortheinitialrecognitionofassetsorliabilitiesarisingfromtransactionswiththefollowingcharacteristics:Thetransactionisnotabusinessmerger,anddoesnotaffecttheaccountingprofitortaxableincomewhenitoccurs(Excludingtransactionsthatinitiallyrecognisedassetsandliabilitiesresultinginequaltaxabletemporarydifferencesanddeductibletemporarydifferences.);
(2)Regardingthetaxabletemporarydifferencerelatedtotheinvestmentofsubsidiaries,jointventuresandassociatedenterprises,thetimeofreversalofthetemporarydifferencecanbecontrolledandthetemporarydifferenceisunlikelytobereversedintheforeseeablefuture.Fordeductibletemporarydifferences,deductiblelossesandtaxcreditsthatcanbecarriedforwardinsubsequentyears,theCompanyislikelytoobtainthefuturetaxableincomeasthelimittooffsetthedeductibletemporarydifferences,deductiblelossesandtaxcredits,inwhichwaytorecognizethedeferredincometaxassetsarisingfromthedeductibletemporarydifferences,deductiblelossesandtaxcredits,unlessthedeductibletemporarydifferencesaregeneratedinthefollowingtransactions:
(1)Thetransactionisnotabusinessmerger,anddoesnotaffecttheaccountingprofitnortaxableincomewhenitoccurs(Excludingtransactionsthatinitiallyrecognisedassetsandliabilitiesresultinginequaltaxabletemporarydifferencesanddeductibletemporarydifferences.);
(2)Thecorrespondingdeferredincometaxassetsshallberecognizedifthedeductibletemporarydifferencesrelatedtotheinvestmentofsubsidiaries,jointventuresandassociatedenterprisesmeetthefollowingconditionssimultaneously:Thetemporarydifferencesarelikelytobereversedintheforeseeablefuture,andthetaxableincomeusedtodeductthedeductibletemporarydifferencesislikelytobeobtainedinthefuture.Onthedateofthebalancesheet,theincometaxassetsanddeferredincometaxliabilitiesshallbemeasuredbytheCompanyonthebasisoftheapplicabletaxrateduringtheperiodwhentheassetsareexpectedtoberecoveredortheliabilitiesareexpectedtobepaidoff,andtheincometaximpactontheexpectedrecoveryofassetsonthedateofthebalancesheetoronthemethodtopayofftheliabilitiesshallbereflected.Thebookvalueofdeferredincometaxassetsshallbereviewedateachbalancesheetdate.Ifitisunlikelytoobtainsufficienttaxableincometooffsetagainstthebenefitofthedeferredincometaxasset,thebookvalueofthedeferredincometaxassetsshallbewrittendown.Anysuchwrite-downshouldbesubsequentlyreversedwhereitbecomesprobablethatsufficienttaxableincomewillbeavailable.Asatthebalancesheetdate,deferredincometaxassetsanddeferredincometaxliabilitiesarepresentedasanetamountwhenthefollowingconditionsaresimultaneouslymet:
(1)ThetaxentitywithintheCompanyhasalegallyenforceablerighttosetoffcurrentincometaxassetsagainstcurrentincometaxliabilities;
(2)ThedeferredincometaxassetsanddeferredincometaxliabilitiesarerelatedtoincometaxesleviedbythesametaxationauthorityonthesametaxableentitywithintheCompany.
31.Lease
(1)IdentificationofleaseOnthestartdateofthecontract,theCompanyassessedasthelesseeorthelessorwhetherthecustomersinthecontractareentitledtoobtainalmostalltheeconomicbenefitsarisingfromtheuseoftheidentifiedassetsduringtheuseperiod,andhavetherighttodominatetheuseoftheidentifiedassetsduringtheuseperiod.Ifapartytothecontracttransferredtherightallowingthecontrolovertheuseofoneormoreassetsthathavebeenidentifiedwithinacertainperiod,inexchangeforaconsideration,suchcontractisdeterminedbytheCompanytobealeaseorincludesalease.
(2)Asthelessee
Onthecommencementdateoftheleaseterm,theCompanyrecognizestheright-of-useassetsandleaseliabilitiesforallleases,exceptforshort-termleasesandlow-valueassetleaseswithsimplifiedtreatment.Foraccountingpoliciesfortheright-of-useassets,seeNoteV-32.Leaseliabilitiesareinitiallymeasuredinlinewiththeleasepaymentsnotyetpaidonthecommencementdateoftheleasetermusingthepresentvaluecalculatedbytheinterestrateimplicitinlease.Iftheinterestrateimplicitinleasecannotbedetermined,theincrementalborrowingrateshallbeusedasthediscountrate.Leasepaymentsinclude:Fixedpaymentandsubstantialfixedpayment,andtherelevantamountafterdeductingtheleaseincentiveifany;variableleasepaymentsdependingonindexorratio;exercisepriceofthepurchasedoption,providedthatthelesseereasonablydeterminesthattheoptionwillbeexercised;theamounttobepaidfortheexerciseoftheleaseterminationoptions,providedthattheleasetermreflectsthatthelesseewillexercisetheoptionstoterminatethelease;andestimatedpaymentsduetotheguaranteedresidualvalueprovidedbythelessee.Subsequently,itcalculatestheinterestexpensesoftheleaseliabilitiesduringeachperiodoftheleasetermatafixedperiodicinterestrate,andincludesthemincurrentprofitandloss.Variableleasepaymentsthatarenotcoveredinthemeasurementoftheleaseliabilitiesareincludedincurrentprofitorlosswhenactuallyincurred.Short-termleaseAshort-termleasereferstoaleaseforaperiodnotexceeding12monthsonthecommencementdateofthelease,exceptforleaseswithapurchaseoption.TheCompanyincludestheshort-termleasepaymentinthecostofrelevantassetsorthecurrentprofitandlossineachperiodoftheleasetermbythestraight-linemethod.Low-valueassetleaseAlow-valueassetleasereferstoaleasewherethevalueislowerthanRMB40,000andasingleleasedassetisanewasset.TheCompanyincludestheleasepaymentofthelow-valueassetleaseinthecostofrelevantassetsorthecurrentprofitandlossineachperiodoftheleasetermbythestraight-linemethod.Forlow-valueassetlease,itchoosestoadopttheaforesaidsimplifiedtreatmentmethodinlinewiththespecificstatusofeachlease.LeasechangeIfaleasechangesandmeetsthefollowingconditionssimultaneously,theleasechangeshallberegardedasaseparateleaseforaccountingtreatment:a)Theleasechangeexpandsitsleasecopebyincreasingoneormultipleuserightsofleaseassets;andb)Theincreasedconsiderationisequivalenttotheamountoftheseparatepricefortheexpandedpartofthelease,whichisadjustedaccordingtothecontract.
Wheretheleasechangeisnotregardedasaseparateleaseforaccountingtreatment,ontheeffectivedateoftheleasechange,bytheCompany,theconsiderationofthecontractisamortizedagainuponchange,theleasetermisredetermined,andtheleaseliabilitiesareremeasuredaccordingtothepresentvaluethatiscalculatedbytheleasepaymentsandthereviseddiscountrateuponchange.TheCompanyshallcorrespondinglyreducethebookvalueoftheright-of-useassetsandincludetheprofitorlossoftheleaseterminatedinpartorwholeinthecurrentprofitorloss,iftheleasechangenarrowsthescopeofleaseorshortenstheleaseterm.TheCompanyshallcorrespondinglyadjustthebookvalueoftheright-of-useassets,ifotherleasechangesresultinthere-calculationoftheleaseliability.
(3)Asthelessor
WhentheCompanyisalessor,itshallrecognizeleasesthatsubstantiallytransferallrisksandremunerationrelatedtotheownershipofassetsasfinanceleases,andleasesotherthanfinanceleasesasoperatingleases.FinancialleaseInafinancelease,theCompanyrecognizesthenetleaseinvestmentasthebookvalueoffinanceleasereceivablesonthecommencementdateoftheleaseterm.Thenetleaseinvestmentisthesumoftheunguaranteedresidualvalueandthepresentvalueofleasereceivablesnotyetreceivedonthecommencementdateoftheleasetermattheinterestrateimplicitinlease.TheCompanycalculatesandconfirmstheinterestincomeatafixedperiodicinterestrateineachperiodintheleaseterm.Variableleasepaymentsobtainedthatarenotincludedinthenetleaseinvestmentformeasurement,wheretheCompanyisthelessor,areincludedintheprofitorlossofthecurrentperiodwhenactuallyincurred.AccountingtreatmentshallbeconductedforthederecognitionandimpairmentoffinanceleasereceivablesinaccordancewiththeprovisionsoftheAccountingStandardforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstrumentsandtheAccountingStandardforBusinessEnterprisesNo.23-TransferofFinancialAssets.OperatingleasesTheCompanyshallrecognizethecurrentprofitandlossoftherentoftheoperatingleaseineachperiodoftheleasetermbythestraight-linemethod.Theinitialdirectcostsrelatedtotheoperatingleaseshallbecapitalized,amortizedwithintheleasetermonthesamebasisastherecognitionofrentalearning,andincludedinprofitorlossforthecurrentperiod.Thereceivedvariableleasepaymentsrelatedtotheoperatingleasethatarenotincludedintheleasepaymentsreceivableareincludedinprofitorlossforthecurrentperiodwhentheyareactuallyincurred.LeasechangeWhereanoperatingleasechanges,theaccountingtreatmentisconductedforitwhichisregardedasanewleasefromtheeffectivedateofthechange,andreceivablesinadvanceorleasereceivablesrelatedtoleasebeforechangearedeemedasthereceivablesinthenewlease.Whereafinanceleasechangesandmeetsthefollowingconditionssimultaneously,thechangeisregardedasaseparateleasebytheCompanyforaccountingtreatment:a)Thechangeexpandsitsleasecopebyincreasingoneormultipleuserightsofleaseassets;andb)Theincreasedconsiderationisequivalenttotheamountoftheseparatepricefortheexpandedpartofthelease,whichisadjustedaccordingtothecontract.Whereafinanceleasechangesandisnotregardedasaseparateleaseforaccountingtreatment,theCompanytreatsthechangedleaseunderthefollowingcircumstances:a)Ifthechangecomesintoforceonthecommencementdateoftheleaseterm,theleasewillbeclarifiedasanoperatinglease,whileitwillberegardedasanewleaseforaccountingtreatmentbytheCompanyontheeffectivedateoftheleasechange,andthenetleaseinvestmentbeforetheeffectivedateofleasechangewillberegardedasthebookvalueofleaseassets;andb)Ifthechangecomesintoforceonthecommencementdateoftheleaseterm,theleasewillbeclarifiedasafinancelease,theCompanywillcarryoutaccountingtreatmentinaccordancewiththeprovisionsonmodificationorrenegotiationofacontractoftheAccountingStandardforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstruments.
32.Right-of-UseAssets
(1)Recognitionconditionsforright-of-useassetsTheterm“right-of-useassets”referstotherightofthelesseetousetheleasedassetsduringtheleaseterm.Atthestartdateoftheleaseterm,theCompanyinitiallymeasurestheright-of-useassetsatcost.Thecostincludes:theinitialmeasurementamountofleaseobligations;theleasepaymentamountpaidonorpriortotheinceptionofthelease(lesstherelatedamountofleaseincentivesalreadyenjoyedifany);theinitialdirectcostincurredbythelessee;andtheanticipatedcostofdismantlingandremovingtheleaseholdproperty,restoringthesitewheretheleaseholdpropertyislocated,orbringingtheleaseholdpropertybacktothestateagreeduponintheleaseterms.Asthelessee,theCompanyshallrecognizeandmeasurethecostofdemolitionandrestorationinaccordancewiththeAccountingStandardsforBusinessEnterprisesNo.13-Contingencies.Subsequentadjustmentsaremadeforanyre-measurementoftheleaseliabilities.
(2)Depreciationmethodofright-of-useassetsTheCompanyusesthestraight-linemethodfordepreciation.WhereitcanbereasonablycertainthattheCompany,thelessee,canobtainownershipoftheleasedassetsattheexpiryoftheleaseterm,theleasedassetsaredepreciatedovertheresidualservicelife.WhereitcannotbereasonablycertainthattheCompanycanobtainownershipoftheleasedassetsattheendoftheleaseterm,theleasedassetsaredepreciatedattheshorteroftheleasetermandtheresidualservicelifeoftheleasedassets.
(3)Impairmenttestmethodandimpairmentprovisionmethodofright-of-useassetsSeeNoteV-22.
33.CostofSafetyProductionandMaintenanceInaccordancewiththeregulationsoftheNoticeonIssuingtheManagementMeasuresfortheProvisionandUseofEnterpriseProductionSafetyCosts(C.Z.[2022]No.136)issuedbytheMinistryofFinanceandtheMinistryofEmergency,andbasedontheaboveactualannualoperatingrevenueofpowergenerationandsupplyenterprises,theCompanyadoptsthemethodwherethedeductionratedeclineswhentheoperatingrevenueincreasestodeductsafetyproductioncostsaccordingtothefollowingstandards:
| Annualactualsalesrevenuestandard | Proportionofsafetyproductioncost(%) |
| NotexceedingRMB10million | 3 |
| RMB10milliontoRMB100million | 1.5 |
| RMB100milliontoRMB1billion | 1 |
| RMB1billiontoRMB5billion | 0.8 |
Safetyproductioncostsandcostsforsustainingsimplereproductionareincludedinthecostofrelevantproductionorcurrentlossandprofitwhendeducted,andaresimultaneouslyincludedinthe“specificreserve”.Whenusingthedeductedsafetyproductioncostsandthecostsforsustainingsimplereproductioninconformitywithregulations,theoutgoingexpendituresshalldirectlybeusedtooffsetthespecificreserve;thecostsbecomingfixedassetsshallbeaggregatedunder“constructioninprogress”andthenberecognizedasfixedassetswhenthesafetyprojectiscompletedandreachestheintendedavailablestatus;Theaforesaidfixedassetswillnotbedepreciatedasaccruedinthefutureperiod.
34.RepurchaseofShares
BeforethesharesrepurchasedbytheCompanyarecancelledortransferred,theyaremanagedastreasuryshares,andallexpendituresfortherepurchaseofsharesaretransferredtothecostoftreasuryshares.Considerationandtransactioncostspaidinsharerepurchasereduceshareholders'equity.Whenbuyingback,transferringorcancellingsharesintheCompany,noprofitsorlossesarerecognized.Thetransferofinventorysharesshallbecreditedtothecapitalreserveonthebasisofthedifferencebetweentheamountactuallyreceivedandthecarryingamountofthetreasurystock.Writeoffsurplusreservesandundistributedprofitsifcapitalreservesare
insufficienttooffset.Write-offoftreasurystockscanreducesharesinparwithparvalueandnumberofwrite-outstocks.Thecapitalreserveisoffsetbasedonthedifferencebetweenbookbalanceandfacevalueofcancelledtreasurystocks.Writeoffsurplusreservesandundistributedprofitsifcapitalreservesareinsufficienttooffset.
35.MaterialAccountingJudgmentsandEstimates
TheCompanyevaluatestheimportantaccountingestimatesandkeyassumptionsadoptedonanongoingbasis,basedonhistoricalexperienceandotherfactors,includingreasonableexpectationsoffutureevents.Importantaccountingestimatesandcriticalassumptionsthathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfiscalyeararelistedasfollows:
ClassificationoffinancialassetsThesignificantjudgmentsinvolvedwhentheCompanydeterminestheclassificationoffinancialassetsincludeanalysisofbusinessmodelsandcontractualcashflowcharacteristics.TheCompanydeterminesthebusinessmodelformanagingfinancialassetsatthelevelofthefinancialassetportfolio,takingintoaccountfactorssuchastheapproachofevaluatingandreportingtheperformanceoffinancialassetstokeymanagementpersonnel,therisksaffectingtheperformanceoffinancialassetsandthemannerinwhichtheyaremanaged,andwayinwhichtherelevantbusinessmanagementpersonnelarecompensated.Thefollowingmainjudgmentsexistinassessingwhetherthecontractualcashflowsoffinancialassetsareconsistentwiththebasiclendingarrangements:
Whetherthetimedistributionoramountoftheprincipalamountduringthedurationmaychangeduetoearlyrepaymentorforotherreasons;whethertheinterestincludesonlythetimevalueofmoney,creditrisk,otherbasiclendingrisksandconsiderationagainstcostsandprofits.Forexample,whethertheamountofearlyrepaymentreflectsonlytheoutstandingprincipalandinterestbasedontheoutstandingprincipal,aswellasreasonablecompensationpaidforearlyterminationofthecontract.MeasurementofexpectedcreditlossesofaccountsreceivableTheCompanycalculatestheexpectedcreditlossofaccountsreceivableusingtheexposuretodefaultriskofaccountsreceivableandtheexpectedcreditlossratio,anddeterminestheexpectedcreditlossratiobasedontheprobabilityofdefaultandthedefaultlossratio.Whendeterminingtheexpectedcreditlossratio,theCompanyusesdatasuchasinternalhistoricalcreditlossexperienceandadjustshistoricaldatatotakeintoaccountcurrentconditionsandforward-lookinginformation.Whenconsideringforward-lookinginformation,theCompanyusesindicatorssuchastheriskofeconomicdownturnandchangesintheexternalmarketenvironment,technologicalenvironmentandcustomerprofile.TheCompanyregularlymonitorsandreviewstheassumptionsrelatedtothecalculationofexpectedcreditlosses.GoodwillimpairmentWeshallassesswhetherthereisimpairmentofgoodwillatleastannually.Thisrequiresestimatingtheusevalueoftheassetgrouptowhichgoodwillhasbeenassigned.Whenestimatingtheusevalue,theCompanyshallestimatethefuturecashflowsfromtheassetgroupandselecttheappropriatediscountratetocalculatethepresentvalueoffuturecashflowsatthesametime.DeferredincometaxassetsTotheextentthatitisprobablethatsufficienttaxableprofitwillbeavailabletooffsetthelosses,theCompanyrecognizesdeferredincometaxassetsforallunusedtaxlosses.ThisrequirestheCompany'smanagementtousemanyjudgmentstoestimatethetimingandamountoffuturetaxableprofits,takingintoaccounttaxplanningstrategies,soastodeterminetheamountofdeferredincometaxassetstoberecognized.DeterminationoffairvalueofunlistedequityinvestmentThefairvalueofunlistedequityinvestmentistheexpectedfuturecashflowsdiscountedatthecurrentdiscountrateforitemswithsimilartermsandriskcharacteristics.SuchvaluationrequirestheCompanytoestimateexpectedfuturecashflowsanddiscountratesandisthereforesubjecttouncertainty.Underlimitedcircumstances,iftheinformationusedtodeterminefairvalueisinsufficient,oriftherangeofpossibleestimatesoffairvalueiswideandthecostrepresentsthebestestimateoffairvaluewithinthatrange,thecostmayrepresentitsappropriateestimateoffairvaluewithinthatrangeofdistribution.
36.ChangesinMainAccountingPoliciesandEstimates
(1)SignificantChangesinAccountingPolicies
□Applicable?Notapplicable
(2)SignificantChangesinAccountingEstimates
□Applicable?Notapplicable
(3)AdjustmentstoFinancialStatementItemsattheBeginningoftheYearoftheFirstImplementationoftheNewAccountingStandardsImplementedsince2024
□Applicable?Notapplicable
VITaxation
1.MainTaxesandTaxRate
| Categoryoftaxes | Taxbasis | Taxrate |
| VAT | Taxablevalue-addedamount(thetaxableamountiscalculatedbymultiplyingthetaxablesalesbytheapplicabletaxrateanddeductingtheinputtaxallowedtobedeductedinthecurrentperiod) | 13%,9%,6%,5%,3%,0 |
| Urbanmaintenanceandconstructiontax | Turnovertaxactuallypaid | 7%,5% |
| Enterpriseincometax | Incometaxpayable | 0,11%,15%,16.5%,20%,25% |
Notesofthedisclosuresituationofthetaxpayingbodieswithdifferententerprisesincometaxrate
| Taxpayer | Incometaxrate |
| TheCompany | 15% |
| LufengWeaving&Dyeing | 15% |
| LulianNewMaterials | 15% |
| LuThaiHongKong | 16.50% |
| LuqunTextile | 25% |
| XinshengPower | 25% |
| ShanghaiLuThai | 20% |
| ShanghaiZhinuo | 20% |
| LujiaImport&Export | 20% |
| ZhishuConsulting | 20% |
| LuThaiVocationalTrainingSchool | 0% |
| BanyangVilla | 20% |
| HuilinInternational | 15% |
| VACL | 11% |
2.TaxPreferenceInaccordancewiththeNoticeforAnnouncingtheFirstBatchofHi-techEnterpriseIdentificationListofShandongProvincein2023withreferenceNo.LuKeZi[2024]4,theCompanywasidentifiedasahi-techenterprise,andthecertificateissuingdatewas29November2023;themajority-ownedsubsidiaryLuFengCompanyLimitedwasidentifiedasahi-techenterprise,andthecertificateissuingdatewas29November2023.InaccordancewiththeNoticeforAnnouncingHi-techEnterpriseListofShandongProvincein2022,themajority-ownedsubsidiaryLulianNewMaterialswasidentifiedasahi-techenterprise,andthecertificateissuingdatewas12December2022.Therefore,inaccordancewithArticle28oftheEnterpriseIncomeTaxLawofthePeople’sRepublicofChinaandtheAnnouncementoftheStateAdministrationofTaxationonIssuesConcerningtheImplementationofPreferentialIncomeTaxPoliciesforHigh-techEnterprises(AnnouncementNo.24[2017]oftheStateAdministrationofTaxation),theapplicableenterpriseincometaxrateshallbe15%.Thewholly-ownedsubsidiaries,includingShanghaiLuthai,ShanghaiZhinuo,LujiaImport&Export,ZhishuConsulting,andBanyangVilla,havebeenrecognizedassmall,low-profitenterprises.AccordingtotheAnnouncementoftheMinistryofFinanceandtheStateTaxationAdministrationonPreferentialIncomeTaxPoliciesforSmall,Low-profitEnterprisesandPrivatelyorIndividually-ownedBusinesses(AnnouncementNo.6[2023]oftheMinistryofFinanceandtheStateTaxationAdministration)andAnnouncementoftheMinistryofFinanceandtheStateTaxationAdministrationonFurtherImplementingthePreferentialIncomeTaxPoliciesforMicroandSmallEnterprises(AnnouncementNo.13[2022]oftheMinistryofFinanceandtheStateTaxationAdministration),theportionoftheannualtaxableincomeofsmall,low-profitenterprisesnotexceedingRMB3millionshallbeincludedinthetaxableincomeatareducedrateof25%,andtheenterpriseincometaxshallbepaidatthetaxrateof20%.Thewholly-ownedsubsidiary,LuThaiVocationalTrainingSchool,hasbeenrecognizedasanon-profitmakingorganizationexemptfromtaxbetween2021and2025.AccordingtoArticle26,Item4oftheEnterpriseIncomeTaxLawofthePeople’sRepublicofChina,thepolicywherebyeligiblenon-profitmakingorganizationsareexemptfromenterpriseincometaxshallapplytotheforegoingsubsidiary.LuThai(HongKong)TextileCo.,Ltd.(hereinafterrefersasLuThai(HongKong)Textile),thewholly-ownedsubsidiaryoftheCompany,wasincorporatedinHongKongSAR,whoseprofittaxshallbepaidattaxrateof16.5%.ThewhollyownsubsidiaryVACL,accordingtotheBurma’sSpecialEconomicZoneLawissuedbyPyidaungsuHluttaw,VACLenjoystaxpreferenceoncorporateincometaxof7(7yearstaxholiday)+5(5yearstaxrevenuesdropbyhalf)+5(re-investtheprofitswithin1yearandcontinuestoenjoythehalftaxrevenues5yearsafterwards).Aftergraceperiod,enterpriseincometaxratewasof22%.Year2024isthesecondyearoftaxhalvingperiodwiththeenterpriseincometaxrateat11%.Thewholly-ownedsubsidiary,HuilinInternational,whichwasregisteredintheHainanFreeTradePortandoperatesintheencouragedindustry,shallpayenterpriseincometaxatareducedtaxrateof15%between1January2020and31December2024,accordingtotheAnnouncementoftheMinistryofFinanceandtheStateTaxationAdministrationonthePreferentialIncomeTaxPoliciesforEnterprisesRegisteredintheHainanFreeTradePort(AnnouncementNo.31[2020]oftheMinistryofFinanceandtheStateTaxationAdministration).
VII.NotestoMainItemsofConsolidatedFinancialStatements
1.MonetaryAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Cashonhand | 6,112,136.39 | 2,633,018.72 |
| Bankdeposits | 1,661,897,030.36 | 1,280,487,534.58 |
| Othermonetaryfunds | 2,711,326.78 | 275,131,494.73 |
| Total | 1,670,720,493.53 | 1,558,252,048.03 |
| Ofwhich:totalamountdepositedoverseas | 292,192,477.99 | 271,126,295.17 |
Othernotes:
(1)On30June2024,themonetaryassetswithrestrictedownershipwereofRMB2,459,213.57,whichwerethedepositforforeignguaranteebusinessofDONG5,380,232,505.00(equivalenttoRMB1,509,213.57),andlitigationfreezesofRMB950,000.
(2)TheinterestreceivableinbankdepositswasRMB8,670,454.55.
2.TradingFinancialAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Financialassetsatfairvaluethroughprofitorloss | 741,610,807.34 | 723,800,275.39 |
| Ofwhich: | ||
| Debtinstrumentinvestment | 303,432,546.27 | 203,706,725.51 |
| Equityinstrumentinvestment | 436,877,510.83 | 509,832,518.35 |
| Derivativefinancialassets | 1,300,750.24 | 10,261,031.53 |
| Ofwhich: | ||
| Total | 741,610,807.34 | 723,800,275.39 |
3.NotesReceivable
(1)NotesReceivableListedbyCategory
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Bankacceptancebill | 69,855,754.75 | 99,642,708.67 |
| Tradeacceptance | 6,303,241.45 | |
| Total | 76,158,996.20 | 99,642,708.67 |
(2)DisclosurebyWithdrawalMethodsforBadDebts
Unit:RMB
| Category | Endingbalance | Beginningbalance | ||||||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
| Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
| Ofwhich: | ||||||||||
| Notesreceivabl | 76,490,745.75 | 100.00% | 331,749.55 | 0.43% | 76,158,996.20 | 99,642,708.67 | 100.00% | 99,642,708.67 | ||
| eofbaddebtprovisionwithdrawnbygroups | |||||||||
| Ofwhich: | |||||||||
| Tradeacceptance | 6,634,991.00 | 8.67% | 331,749.55 | 5.00% | 6,303,241.45 | ||||
| Bankacceptancebillswithlowcreditratings | 69,855,754.75 | 91.33% | 69,855,754.75 | 99,642,708.67 | 100.00% | 99,642,708.67 | |||
| Total | 76,490,745.75 | 100.00% | 331,749.55 | 76,158,996.20 | 99,642,708.67 | 100.00% | 99,642,708.67 |
Ifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofnotesreceivable:
□Applicable?Notapplicable
(3)BadDebtProvisionWithdrawal,ReversedorRecoveredintheCurrentPeriodWithdrawalofbaddebtprovision:
Unit:RMB
| Category | Beginningbalance | Changesinthecurrentperiod | Endingbalance | |||
| Withdrawal | Reversedorrecovered | Verification | Others | |||
| Tradeacceptance | 0.00 | 331,749.55 | 331,749.55 | |||
| Total | 0.00 | 331,749.55 | 0.00 | 0.00 | 0.00 | 331,749.55 |
Ofwhichsignificantamountofrecoveredortransferred-backbaddebtprovisionforthecurrentperiod:
□Applicable?Notapplicable
(4)NotesReceivableWhichHadEndorsedbytheCompanyorhadDiscountedandhadnotDueontheBalanceSheetDateatthePeriod-end
Unit:RMB
| Item | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
| Bankacceptancebill | 98,285,689.07 | |
| Total | 98,285,689.07 |
4.AccountsReceivable
(1)DisclosurebyAging
Unit:RMB
| Aging | Endingcarryingamount | Beginningcarryingamount |
| Withinoneyear(including1year) | 775,687,291.66 | 878,555,822.01 |
| Onetotwoyears | 3,603,815.12 | 3,129,451.20 |
| Twotothreeyears | 542,137.00 | 143,033.80 |
| Morethanthreeyears | 4,450,803.48 | 7,777,701.22 |
| Threetofouryears | 43,641.97 | 3,717,366.06 |
| Fourtofiveyears | 4,257,186.18 | 4,037,499.15 |
| Over5years | 149,975.33 | 22,836.01 |
| Total | 784,284,047.26 | 889,606,008.23 |
(2)DisclosurebyWithdrawalMethodsforBadDebts
Unit:RMB
| Category | Endingbalance | Beginningbalance | ||||||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
| amount | Proportion | amount | Withdrawalproportion | amount | Proportion | amount | Withdrawalproportion | |||
| AccountsreceivablewithdrawalofBaddebtprovisionseparatelyaccrued | 2,823,309.36 | 0.36% | 2,823,309.36 | 100.00% | 5,481,360.70 | 0.62% | 5,481,360.70 | 100.00% | ||
| Ofwhich: | ||||||||||
| Accountsreceivablewithdrawalofbaddebtprovisionofbygroup | 781,460,737.90 | 99.64% | 56,269,897.00 | 7.20% | 725,190,840.90 | 884,124,647.53 | 99.38% | 57,656,962.75 | 6.52% | 826,467,684.78 |
| Ofwhich: | ||||||||||
| Group1:Undueaccounts(L/C) | 171,222,254.88 | 21.83% | 0.00% | 171,222,254.88 | 158,223,236.80 | 17.79% | 158,223,236.80 | |||
| Group2:Undueaccounts(credit | 160,719,645.02 | 20.49% | 1,687,556.30 | 1.05% | 159,032,088.72 | 137,080,593.18 | 15.41% | 1,439,346.21 | 1.05% | 135,641,246.97 |
| insuranceinsured) | ||||||||||
| Group3:Undueaccounts(nocreditinsurance) | 278,195,552.48 | 35.47% | 13,909,777.60 | 5.00% | 264,285,774.88 | 447,692,502.26 | 50.32% | 22,384,625.09 | 5.00% | 425,307,877.17 |
| Group4:Overdueaccounts(creditinsuranceinsured) | 48,465,747.15 | 6.18% | 7,609,122.38 | 15.70% | 40,856,624.77 | 47,975,300.48 | 5.39% | 7,532,122.16 | 15.70% | 40,443,178.32 |
| Group5:Overdueaccounts(nocreditinsurance) | 122,857,538.37 | 15.66% | 33,063,440.72 | 26.91% | 89,794,097.65 | 93,153,014.81 | 10.47% | 26,300,869.29 | 28.23% | 66,852,145.52 |
| Total | 784,284,047.26 | 100.00% | 59,093,206.36 | 7.53% | 725,190,840.90 | 889,606,008.23 | 100.00% | 63,138,323.45 | 7.10% | 826,467,684.78 |
Thecategorynameofbaddebtprovisionseparatelyaccrued:June2024
Unit:RMB
| Name | Beginningbalance | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | Withdrawalproportion | Reasonforwithdraw | |
| Customer1 | 2,751,489.34 | 2,751,489.34 | ||||
| Customer2 | 2,729,871.36 | 2,729,871.36 | 2,823,309.36 | 2,823,309.36 | 100.00% | Customerinfinancialdifficulty |
| Total | 5,481,360.70 | 5,481,360.70 | 2,823,309.36 | 2,823,309.36 | ||
Ifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivable:
□Applicable?Notapplicable
(3)BadDebtProvisionWithdrawal,ReversedorRecoveredintheReportingPeriod
Withdrawalofbaddebtprovision:
Unit:RMB
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |||
| Withdrawal | Reversedorrecovered | Verification | Others | |||
| Baddebtprovisionseparatelyaccrued | 5,481,360.70 | 93,438.00 | 2,751,489.34 | 2,823,309.36 | ||
| Withdrawalofbaddebtprovisionbygroup | 57,656,962.75 | -985,111.39 | 401,954.36 | 56,269,897.00 | ||
| Total | 63,138,323.45 | -891,673.39 | 0.00 | 3,153,443.70 | 0.00 | 59,093,206.36 |
(4)AccountsReceivableWritten-offinCurrentPeriod
Unit:RMB
| Item | Written-offamount |
| Written-offaccountsreceivable | 3,153,443.70 |
(5)Top5oftheEndingBalanceoftheAccountsReceivableandtheContractAssetsCollectedaccordingtoArrearsParty
Unit:RMB
| Nameoftheentity | EndingbalanceoftheAccountsReceivable | Endingbalanceofcontractassets | Endingbalanceofaccountsreceivableandcontractassets | Proportiontototalendingbalanceofaccountsreceivableandcontractassets | Endingbalanceofbaddebtprovisionofaccountsreceivableandimpairmentprovisionforcontractassets |
| CustomerA | 80,799,894.31 | 80,799,894.31 | 10.30% | 82,503.37 | |
| CustomerB | 44,344,478.10 | 44,344,478.10 | 5.65% | 10,509,641.31 | |
| CustomerC | 36,707,812.31 | 36,707,812.31 | 4.68% | 1,835,390.62 | |
| CustomerD | 28,723,648.68 | 28,723,648.68 | 3.66% | 1,582,874.01 | |
| CustomerE | 28,017,191.64 | 28,017,191.64 | 3.57% | 1,519,757.53 | |
| Total | 218,593,025.04 | 218,593,025.04 | 27.86% | 15,530,166.84 |
5.AccountsReceivableFinancing
(1)AccountsReceivableFinancingListedbyCategory
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| NotesReceivable | 6,969,726.90 | 18,336,324.55 |
| Less:Othercomprehensiveincome-fairvaluechange | -47,513.49 | -88,118.79 |
| Total | 6,922,213.41 | 18,248,205.76 |
(2)AccountsReceivableFinancingWhichHadEndorsedbytheCompanyorhadDiscountedandhadnotDueontheBalanceSheetDateatthePeriod-end
Unit:RMB
| Item | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
| Bankacceptancebills | 98,285,689.07 | |
| Total | 98,285,689.07 |
6.OtherReceivables
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Otherreceivables | 24,299,740.14 | 22,168,807.43 |
| Total | 24,299,740.14 | 22,168,807.43 |
(1)OtherReceivables
1)OtherReceivablesClassifiedbyNature
Unit:RMB
| Nature | Endingcarryingamount | Beginningcarryingamount |
| Exportrebates | 4,283,605.34 | 3,798,857.69 |
| VATtobereturned | 6,988,086.96 | 7,283,733.09 |
| Paymentonbehalf | 8,918,452.52 | 8,669,608.81 |
| Guaranteedepositandcashdeposit | 3,686,139.18 | 1,613,961.78 |
| Borrowingsandpettycash | 1,685,356.49 | 1,962,604.48 |
| Others | 4,948,700.92 | 5,078,173.43 |
| Total | 30,510,341.41 | 28,406,939.28 |
2)DisclosurebyAging
Unit:RMB
| Aging | Endingbalance | Beginningcarryingamount |
| Withinoneyear(including1year) | 19,853,929.16 | 17,090,150.86 |
| Onetotwoyears | 1,492,108.57 | 7,685,279.13 |
| Twotothreeyears | 5,667,629.23 | 177,000.00 |
| Morethanthreeyears | 3,496,674.45 | 3,454,509.29 |
| Threetofouryears | 128,000.00 | 35,020.00 |
| Fourtofiveyears | 78,300.00 | |
| Over5years | 3,368,674.45 | 3,341,189.29 |
| Total | 30,510,341.41 | 28,406,939.28 |
3)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriodWithdrawalofbaddebtprovision:
Unit:RMB
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |||
| Withdrawal | Reversedorrecovered | Charged-off/Verification | Others | |||
| Expectedcreditlossofthenext12monthsatthefirststage | 880,263.44 | 127,478.05 | 1,007,741.49 | |||
| Expectedlossintheduration(creditimpairmentnotoccurred)atthesecondstage | 5,194,856.36 | -217,859.01 | 4,976,997.35 | |||
| Expectedlossintheduration(creditimpairmentoccurred)atthethirdstage | 163,012.05 | 62,850.38 | 225,862.43 | |||
| Total | 6,238,131.85 | -27,530.58 | 0.00 | 0.00 | 0.00 | 6,210,601.27 |
4)Top5OtherAccountsReceivableinEndingBalanceCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameoftheentity | Nature | Endingbalance | Aging | Proportiontototalendingbalanceofotherreceivables% | Endingbalanceofbaddebtprovision |
| Customer1 | RebateofVAT | 6,988,086.96 | Within1year,1to2yearsand2to3years | 22.90% | 3,171,659.26 |
| Customer2 | Advancepayments | 5,031,042.62 | Within1year | 16.49% | 251,552.13 |
| Customer3 | Exportrebates | 4,283,605.34 | Within1year | 14.04% | 214,180.27 |
| Customer4 | Advancepayments | 1,282,841.36 | Within1year | 4.20% | 64,142.07 |
| Customer5 | Advancepayments | 1,149,200.40 | Within1year | 3.77% | 57,460.02 |
| Total | 18,734,776.68 | 61.40% | 3,758,993.75 |
7.Prepayment
(1)PrepaymentListedbyAgingAnalysis
Unit:RMB
| Aging | Endingbalance | Beginningbalance | ||
| Amount | Proportion | Amount | Proportion | |
| Within1year | 88,205,641.91 | 99.88% | 51,843,880.46 | 99.96% |
| Onetotwoyears | 101,808.00 | 0.12% | 17,437.82 | 0.04% |
| Twotothreeyears | 1,651.40 | 0.00% | ||
| Morethanthreeyears | 0.00% | 2,129.28 | ||
| Total | 88,309,101.31 | 51,863,447.56 | ||
(2)Top5PrepaymentinEndingBalanceCollectedaccordingtothePrepaymentTarget
TheadvancestosuppliersfromthetopfiveofprepaidpartiesclassifiedbasedontheendingbalancetotalsRMB51,649,142.86inthecurrentperiod,accountingfor58.49%ofthetotalendingbalanceoftheadvancestosuppliers.
8.Inventory
WhethertheCompanyneedstocomplywiththedisclosurerequirementsfortherealestateindustryNo
(1)CategoryofInventory
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreservesofinventoriesorimpairment | Carryingvalue | Carryingamount | Depreciationreservesofinventoriesorimpairment | Carryingvalue | |
| provisionforcontractperformancecosts | provisionforcontractperformancecosts | |||||
| Rawmaterials | 920,639,465.98 | 48,933,964.67 | 871,705,501.31 | 961,742,257.63 | 48,846,493.37 | 912,895,764.26 |
| Goodsinprocess | 493,298,150.00 | 14,522,519.63 | 478,775,630.37 | 504,407,562.92 | 11,183,192.80 | 493,224,370.12 |
| Inventorygoods | 946,421,769.26 | 186,436,309.51 | 759,985,459.75 | 886,717,966.10 | 181,209,030.54 | 705,508,935.56 |
| Commissionedproducts | 15,097,450.37 | 15,097,450.37 | 12,510,504.76 | 12,510,504.76 | ||
| Materialsintransit | 16,942,695.35 | 16,942,695.35 | ||||
| Total | 2,392,399,530.96 | 249,892,793.81 | 2,142,506,737.15 | 2,365,378,291.41 | 241,238,716.71 | 2,124,139,574.70 |
(2)FallingPriceReservesofInventoryandImpairmentReservesforContractPerformanceCosts
Unit:RMB
| Item | Beginningbalance | Increasedamountofthecurrentperiod | Decreasedamountforthecurrentperiod | Endingbalance | ||
| Withdrawal | Others | Transferred-backorcharged-off | Others | |||
| Rawmaterials | 48,846,493.37 | 87,471.30 | 48,933,964.67 | |||
| Goodsinprocess | 11,183,192.80 | 3,308,741.99 | 30,584.84 | 14,522,519.63 | ||
| Inventorygoods | 181,209,030.54 | 31,410,703.20 | 152,690.05 | 26,336,114.28 | 186,436,309.51 | |
| Total | 241,238,716.71 | 34,719,445.19 | 270,746.19 | 26,336,114.28 | 249,892,793.81 | |
9.OtherCurrentAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Othertax | 9,624,603.07 | 801,750.09 |
| Prepaidincometax | 7,854,160.90 | 2,774,815.63 |
| Prepaidothertaxes | 3,453,982.70 | |
| Convertiblebrokenlotfund | 199,666.07 | 199,680.79 |
| Refundabledeposits | 127,182,557.28 | 137,881,884.82 |
| Total | 144,860,987.32 | 145,112,114.03 |
10.Long-termEquityInvestment
Unit:RMB
| Investee | Beginningbalance(carryingvalue) | Beginningbalanceofdepreciationreserve | Increase/decreaseforthecurrentperiod | EndingBalance(CarryingValue | Endingbalanceofdepreciationreser | |||||||
| Additiona | Reducedinvestment | Gainsandlossesrecognizedundertheequitymethod | Adjustmentofothercomprehensi | Changesofotherequity | Cashbonusorprofitsannouncedto | Withdrawalofimpairmentprovis | Others | |||||
| linvestment | veincome | issue | ion | ) | ve | |||||||
| I.Jointventures | ||||||||||||
| II.Associatedenterprises | ||||||||||||
| NingboMeishanBondedPortAreaHaohongEquityInvestmentPartnership(L.P)(hereinafterreferredtoas“HaohongInvestment”) | 48,257,699.71 | 9,232,654.55 | 57,490,354.26 | |||||||||
| NingboHaoyingEquityInvestmentPartnership(L.P)(hereinafterreferredtoas“HaoyingInvestment”) | 95,279,780.06 | -613,560.02 | 94,666,220.04 | |||||||||
| Subtotal | 143,537,479.77 | 8,619,094.53 | 152,156,574.30 | |||||||||
| Total | 143,537,479.77 | 8,619,094.53 | 152,156,574.30 | |||||||||
Therecoverableamountisdeterminedbasedonthenetamountofthefairvalueminusdisposalcosts
□Applicable?NotapplicableTherecoverableamountisdeterminedbythepresentvalueoftheforecastedfuturecashflow.
□Applicable?Notapplicable
11.OtherNon-currentFinancialAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Equityinstrumentinvestment | 76,750,000.00 | 76,750,000.00 |
| Financialassetsassignedmeasuredbyfairvalueandthechangesbeincludedinthecurrentgainsandlosses | 12,000,000.00 | 12,000,000.00 |
| Total | 88,750,000.00 | 88,750,000.00 |
12.InvestmentProperty
(1)InvestmentPropertyAdoptingtheCostMeasurementMode?Applicable□Notapplicable
Unit:RMB
| Item | Housesandbuildings | Landuseright | Constructioninprogress | Total |
| I.Originalcarryingvalue | ||||
| 1.Beginningbalance | 33,708,658.12 | 33,708,658.12 | ||
| 2.Increasedamountforthecurrentperiod | ||||
| (1)Outsourcing | ||||
| (2)Transferfrominventory/fixedassets/constructioninprogress | ||||
| (3)Businesscombinationincrease | ||||
| 3.Decreasedamountforthecurrentperiod | ||||
| (1)Disposal | ||||
| (2)Othertransfer | ||||
| 4.Endingbalance | 33,708,658.12 | 33,708,658.12 | ||
| II.Accumulativedepreciationandaccumulativeamortization | ||||
| 1.Beginningbalance | 14,130,482.19 | 14,130,482.19 | ||
| 2.Increasedamountforthecurrentperiod | 451,321.03 | 451,321.03 | ||
| (1)Withdrawaloramortization | 451,321.03 | 451,321.03 | ||
| 3.Decreasedamountforthecurrentperiod | ||||
| (1)Disposal | ||||
| (2)Othertransfer | ||||
| 4.Endingbalance | 14,581,803.22 | 14,581,803.22 | ||
| III.Depreciationreserves | ||||
| 1.Beginningbalance | ||||
| 2.Increasedamountforthecurrentperiod | ||||
| (1)Withdrawal | ||||
| 3.Decreasedamountforthecurrentperiod | ||||
| (1)Disposal | ||||
| (2)Othertransfer | ||||
| 4.Endingbalance | ||||
| IV.Carryingvalue | ||||
| 1.Endingcarryingvalue | 19,126,854.90 | 19,126,854.90 | ||
| 2.Beginningcarryingvalue | 19,578,175.93 | 19,578,175.93 |
Therecoverableamountisdeterminedbasedonthenetamountofthefairvalueminusdisposalcosts
□Applicable?NotapplicableTherecoverableamountisdeterminedbythepresentvalueoftheforecastedfuturecashflow.
□Applicable?Notapplicable
(2)InvestmentPropertyAdoptingtheFairValueMeasurementMode
□Applicable?Notapplicable
13.FixedAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Fixedassets | 5,921,271,772.02 | 5,597,692,505.07 |
| Total | 5,921,271,772.02 | 5,597,692,505.07 |
(1)ListofFixedAssets
Unit:RMB
| Item | Housesandbuildings | Machineryequipment | Transportationequipment | Electronicequipmentandothers | Total |
| I.Originalcarryingvalue: | |||||
| 1.Beginningbalance | 3,771,409,356.61 | 7,498,350,318.66 | 55,476,805.41 | 130,828,101.77 | 11,456,064,582.45 |
| 2.Increasedamountforthecurrentperiod | 334,943,999.89 | 232,905,088.73 | 2,744,364.11 | 9,759,151.37 | 580,352,604.10 |
| (1)Purchase | 1,074,574.37 | 221,287,730.88 | 2,672,427.51 | 9,599,615.82 | 234,634,348.58 |
| (2)Transferfromconstructioninprogress | 327,295,942.32 | 2,429,190.48 | 329,725,132.80 | ||
| (3)Businesscombinationincrease | |||||
| (4)Otherincrease | 6,573,483.20 | 9,188,167.37 | 71,936.60 | 159,535.55 | 15,993,122.72 |
| 3.Decreasedamountforthecurrentperiod | 1,424,083.05 | 22,916,780.17 | 1,882,139.07 | 639,682.32 | 26,862,684.61 |
| (1)Disposalorscrap | 526,546.40 | 21,481,746.22 | 1,882,139.07 | 639,682.32 | 24,530,114.01 |
| (2)Otherdecrease | 897,536.65 | 1,435,033.95 | 2,332,570.60 | ||
| 4.Endingbalance | 4,104,929,273.45 | 7,708,338,627.22 | 56,339,030.45 | 139,947,570.82 | 12,009,554,501.94 |
| II.Accumulativedepreciation | |||||
| 1.Beginningbalance | 1,343,515,450.34 | 4,311,518,011.89 | 43,379,836.82 | 116,797,266.54 | 5,815,210,565.59 |
| 2.Increasedamountforthecurrentperiod | 66,063,431.88 | 168,254,719.08 | 1,881,916.88 | 3,132,621.07 | 239,332,688.91 |
| (1)Withdrawal | 63,928,600.93 | 165,157,534.42 | 1,756,793.61 | 3,022,285.59 | 233,865,214.55 |
| (2)OtherIncreases | 2,134,830.95 | 3,097,184.66 | 125,123.27 | 110,335.48 | 5,467,474.36 |
| 3.Decreasedamountforthecurrentperiod | 204,161.51 | 6,948,932.34 | 1,606,293.21 | 452,092.87 | 9,211,479.93 |
| (1)Disposalorscrap | 204,161.51 | 6,794,414.73 | 1,606,293.21 | 452,092.87 | 9,056,962.32 |
| (2)OtherIncreases | 154,517.61 | 154,517.61 | |||
| 4.Endingbalance | 1,409,374,720.71 | 4,472,823,798.63 | 43,655,460.49 | 119,477,794.74 | 6,045,331,774.57 |
| III.Depreciationreserves | |||||
| 1.Beginningbalance | 429,416.16 | 42,691,703.55 | 5,671.30 | 34,720.78 | 43,161,511.79 |
| 2.Increasedamountforthecurrentperiod |
| (1)Withdrawal | |||||
| 3.Decreasedamountforthecurrentperiod | 210,556.44 | 0.00 | 210,556.44 | ||
| (1)Disposalorscrap | 210,556.44 | 210,556.44 | |||
| 4.Endingbalance | 429,416.16 | 42,481,147.11 | 5,671.30 | 34,720.78 | 42,950,955.35 |
| IV.Carryingvalue | |||||
| 1.Endingcarryingvalue | 2,695,125,136.58 | 3,193,033,681.48 | 12,677,898.66 | 20,435,055.30 | 5,921,271,772.02 |
| 2.Beginningcarryingvalue | 2,427,464,490.11 | 3,144,140,603.22 | 12,091,297.29 | 13,996,114.45 | 5,597,692,505.07 |
(2)FixedAssetsLeasedoutbyOperationLease
Unit:RMB
| Item | Endingcarryingamount |
| Houses | 4,707,078.93 |
(3)FixedAssetsFailedtoAccomplishCertificationofProperty
Unit:RMB
| Item | Carryingvalue | Reason |
| Lufengweavingdyegrayyarnwarehouse | 11,646,853.92 | Undertherelevantcertificateproceduresofacceptance,measurement,examinationbytherealestatetradingcenterandotherdepartments |
| LulianNewMaterialsYarnWarehouse | 7,678,077.17 | Thesameasabove |
| LuThaiTextileWarehouse01,02 | 6,048,928.22 | Thesameasabove |
(4)ImpairmentTestofFixedAssets
□Applicable?Notapplicable
14.ConstructioninProgress
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Constructioninprogress | 107,413,563.18 | 383,113,337.09 |
| Engineeringmaterials | 342,989,820.23 | 485,383,541.32 |
| Total | 450,403,383.41 | 868,496,878.41 |
(1)ListofConstructioninProgress
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Productionlineproject | 86,614,488.90 | 86,614,488.90 | 375,973,427.49 | 375,973,427.49 | ||
| ofhigh-gradefabrics(PhaseI) | ||||||
| ReformprojectofXinshengThermalPower | 4,350,657.38 | 4,350,657.38 | 4,783,916.38 | 4,783,916.38 | ||
| DoubletwistingprojectphaseII | 13,209,509.32 | 13,209,509.32 | ||||
| Othersporadicprojects | 3,238,907.58 | 3,238,907.58 | 2,355,993.22 | 2,355,993.22 | ||
| Total | 107,413,563.18 | 107,413,563.18 | 383,113,337.09 | 383,113,337.09 |
(2)ChangesinSignificantConstructioninProgressduringtheReportingPeriod
Unit:RMB
| ProjectName | Budget | Beginningbalance | Increasedamountofthecurrentperiod | Transferredinfixedassets | Otherdecreasedamountforthecurrentperiod | Endingbalance | Proportionofaccumulatedinvestmentinconstructionstobudget | Jobschedule | Accumulatedamountofinterestcapitalization | Ofwhich:amountofcapitalizedinterestsfortheReportingPeriod | CapitalizationrateofinterestsfortheReportingPeriod | Capitalresources |
| Productionlineprojectofhigh-gradefabrics(PhaseI) | 464,800,000.00 | 375,973,427.49 | 35,366,233.62 | 326,445,784.54 | -1,720,612.33 | 86,614,488.90 | 102.86% | 99.00% | 13,626,674.11 | 2,028,489.95 | 3.68% | Publicofferingfundandself-raisedfund |
| ReformprojectofXinshengThermalPower | 8,000,000.00 | 4,783,916.38 | 1,995,931.48 | 2,429,190.48 | 0.00 | 4,350,657.38 | 62.93% | 90.00% | Other | |||
| DoubletwistingprojectphaseII | 13,209,509.32 | 0.00 | 0.00 | 13,209,509.32 | 42.34% | 42.34% | Other | |||||
| Othersporadicprojects | 2,355,993.22 | 1,735,690.00 | 850,157.78 | 2,617.86 | 3,238,907.58 | Other | ||||||
| Total | 472,800,000.00 | 383,113,337.09 | 52,307,364.42 | 329,725,132.80 | -1,717,994.47 | 107,413,563.18 | 13,626,674.11 | 2,028,489.95 |
(3)ImpairmentTestofConstructioninProgress
□Applicable?Notapplicable
(4)EngineeringMaterials
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Specialmaterials | 871,768.43 | 871,768.43 | ||||
| Equipmenttobeinstalled | 342,989,820.23 | 342,989,820.23 | 484,511,772.89 | 484,511,772.89 | ||
| Total | 342,989,820.23 | 342,989,820.23 | 485,383,541.32 | 485,383,541.32 | ||
15.Right-of-useAssets
(1)ListofRight-of-useAssets
Unit:RMB
| Item | Housesandbuildings | Landuseright | Total |
| I.Originalcarryingvalue | |||
| 1.Beginningbalance | 57,851,702.69 | 452,496,166.65 | 510,347,869.34 |
| 2.Increasedamountforthecurrentperiod | 19,491,168.76 | 4,004,412.22 | 23,495,580.98 |
| (1)Rent | 19,475,524.63 | 1,519,034.73 | 20,994,559.36 |
| (2)Otherincrease | 15,644.13 | 2,485,377.49 | 2,501,021.62 |
| 3.Decreasedamountforthecurrentperiod | 535,874.95 | 0.00 | 535,874.95 |
| (1)Otherdecrease | 535,874.95 | 535,874.95 | |
| 4.Endingbalance | 76,806,996.50 | 456,500,578.87 | 533,307,575.37 |
| II.Accumulativedepreciation | |||
| 1.Beginningbalance | 14,623,691.51 | 32,497,758.62 | 47,121,450.13 |
| 2.Increasedamountforthecurrentperiod | 5,560,748.84 | 7,100,243.58 | 12,660,992.42 |
| (1)Withdrawal | 5,547,430.30 | 6,975,734.38 | 12,523,164.68 |
| (2)OtherIncreases | 13,318.54 | 124,509.20 | 137,827.74 |
| 3.Decreasedamountforthecurrentperiod | 535,874.95 | 0.00 | 535,874.95 |
| (1)Disposal | |||
| (2)Otherdecrease | 535,874.95 | 535,874.95 | |
| 4.Endingbalance | 19,648,565.40 | 39,598,002.20 | 59,246,567.60 |
| III.Depreciationreserves | |||
| 1.Beginningbalance | |||
| 2.Increasedamountforthecurrentperiod | |||
| (1)Withdrawal | |||
| 3.Decreasedamountforthe |
| currentperiod | |||
| (1)Disposal | |||
| 4.Endingbalance | |||
| IV.Carryingvalue | |||
| 1.Endingcarryingvalue | 57,158,431.10 | 416,902,576.67 | 474,061,007.77 |
| 2.Beginningcarryingvalue | 43,228,011.18 | 419,998,408.03 | 463,226,419.21 |
16.Intangibleassets
(1)Listofintangibleassets
Unit:RMB
| Item | Landuseright | Patentright | Non-patenttechnologies | Softwareuserights | Total |
| I.Originalcarryingvalue | |||||
| 1.Beginningbalance | 470,338,494.00 | 409,550.00 | 2,137,122.72 | 472,885,166.72 | |
| 2.Increasedamountforthecurrentperiod | 973.97 | 973.97 | |||
| (1)Purchase | |||||
| (2)InternalR&D | |||||
| (3)Businesscombinationincrease | |||||
| (4)Otherincrease | 973.97 | 973.97 | |||
| 3.Decreasedamountforthecurrentperiod | 53,097.35 | 53,097.35 | |||
| (1)Disposal | 53,097.35 | 53,097.35 | |||
| 4.Endingbalance | 470,338,494.00 | 409,550.00 | 2,084,999.34 | 472,833,043.34 | |
| II.Accumulatedamortization | |||||
| 1.Beginningbalance | 128,418,319.87 | 112,626.36 | 1,006,341.07 | 129,537,287.30 | |
| 2.Increasedamountforthecurrentperiod | 5,048,199.62 | 20,477.52 | 281,352.38 | 5,350,029.52 | |
| (1)Withdrawal | 5,048,199.62 | 20,477.52 | 280,905.97 | 5,349,583.11 | |
| (2)OtherIncreases | 446.41 | 446.41 | |||
| 3.Decreasedamountforthecurrentperiod | 53,097.35 | 53,097.35 | |||
| (1)Disposal | 53,097.35 | 53,097.35 | |||
| 4.Endingbalance | 133,466,519.49 | 133,103.88 | 1,234,596.10 | 134,834,219.47 | |
| III.Depreciationreserves | |||||
| 1.Beginningbalance | |||||
| 2.Increasedamountforthecurrentperiod | |||||
| (1)Withdrawal | |||||
| 3.Decreasedamountforthecurrentperiod | |||||
| (1)Disposal | |||||
| 4.Endingbalance |
| IV.Carryingvalue | |||||
| 1.Endingcarryingvalue | 336,871,974.51 | 276,446.12 | 850,403.24 | 337,998,823.87 | |
| 2.Beginningcarryingvalue | 341,920,174.13 | 296,923.64 | 1,130,781.65 | 343,347,879.42 |
TheproportionofintangibleassetsformedfromtheinternalR&DoftheCompanyatthePeriod-endtotheendingbalanceofintangibleassetswas0.00%.
(2)ImpairmentTestofIntangibleAssets
□Applicable?Notapplicable
17.Developmentcosts
| Item | Beginningbalance | Increasedamountofthecurrentperiod | Decreasedamountforthecurrentperiod | Endingbalance | ||
| Internaldevelopmentcosts | Other | Recognizedasintangibleassets | Transferredtocurrentprofitorloss | |||
| R&Dofproducts | 115,374,597.19 | 115,374,597.19 | ||||
| Total | 115,374,597.19 | 115,374,597.19 | ||||
18.Goodwill
(1)OriginalCarryingValueofGoodwill
Unit:RMB
| Nameoftheinvestedunitsoreventsgeneratinggoodwill | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance | ||
| Formedbybusinesscombination | Disposal | |||||
| XinshengPower | 20,563,803.29 | 20,563,803.29 | ||||
| Total | 20,563,803.29 | 20,563,803.29 | ||||
19.Long-termPrepaidExpense
Unit:RMB
| Item | Beginningbalance | Increasedamountofthecurrentperiod | Amortizationamountofthecurrentperiod | Otherdecreasedamount | Endingbalance |
| Decorationfee | 1,694,425.58 | 3,299,180.52 | 587,479.50 | 4,406,126.60 | |
| Technicalservicecharges | 44,220.80 | 17,688.30 | 26,532.50 | ||
| Otherprepaidexpense | 77,192.22 | 66,164.82 | 11,027.40 | ||
| Total | 1,815,838.60 | 3,299,180.52 | 671,332.62 | 4,443,686.50 |
20.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities
(1)DeferredIncomeTaxAssetsHadNotBeenOff-set
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||
| Deductibletemporarydifferences | Deferredincometaxassets | Deductibletemporarydifferences | Deferredincometaxassets | |
| Provisionforimpairmentofassets | 255,649,910.10 | 36,973,317.30 | 230,431,449.02 | 36,029,044.63 |
| Internalunrealizedprofit | 114,194,656.47 | 15,598,842.28 | 107,060,058.13 | 14,691,107.03 |
| Deductiblelosses | 65,999,393.32 | 11,811,995.92 | 109,351,504.69 | 19,934,589.31 |
| Payrollpayable | 67,324,258.61 | 10,109,806.74 | 67,324,258.61 | 10,109,806.74 |
| Deferredincome | 148,127,211.72 | 22,982,884.87 | 151,500,472.11 | 23,556,894.11 |
| Contractliabilities | 81,956,025.16 | 20,489,006.29 | 89,450,421.20 | 22,157,141.99 |
| Thechangesofaccountsreceivablefinancinginfairvalue | 47,513.49 | 7,127.03 | 81,235.81 | 12,185.37 |
| Leaseliabilities | 106,288,784.47 | 15,943,317.67 | 93,523,870.95 | 14,028,580.65 |
| Restrictedstockincentivefees | 27,488,845.13 | 4,123,326.77 | 27,488,845.13 | 4,123,326.77 |
| Convertiblecorporatebonds | 46,083,362.73 | 6,912,504.41 | 46,083,362.71 | 6,912,504.41 |
| Associate | 4,472,052.48 | 670,807.87 | 13,704,707.03 | 2,055,706.05 |
| Fundlosses | 81,935,535.64 | 12,290,330.35 | 28,541,486.65 | 4,281,223.00 |
| Total | 999,567,549.32 | 157,913,267.50 | 964,541,672.04 | 157,892,110.06 |
(2)DeferredIncomeTaxLiabilitiesHadNotBeenOff-set
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||
| Taxabletemporarydifference | Deferredincometaxliabilities | Taxabletemporarydifference | Deferredincometaxliabilities | |
| Depreciationoffixedassets | 637,989,146.71 | 100,190,241.09 | 632,363,989.77 | 99,342,402.95 |
| Changesinfairvalueoftradingfinancialassets | 172,623,723.47 | 25,893,558.52 | 245,835,380.61 | 36,875,307.09 |
| Changesinthefairvalueofothernon-currentfinancialassets | 19,467,400.00 | 2,920,110.00 | 19,467,400.00 | 2,920,110.00 |
| Associatedenterprises | 18,908,403.55 | 2,836,260.53 | 19,521,963.57 | 2,928,294.54 |
| Right-of-useassets | 99,143,170.40 | 14,871,475.55 | 87,417,883.01 | 13,112,682.46 |
| Total | 948,131,844.13 | 146,711,645.69 | 1,004,606,616.96 | 155,178,797.04 |
(3)Deferredincometaxassetsorliabilitieshadbeenoff-setlistedinnetamount
Unit:RMB
| Item | Endingoff-setamountofdeferredincometaxassetsandliabilities | Endingbalanceofdeferredincometaxassetsandliabilities | Beginningoff-setamountofdeferredincometaxassetsand | Beginningbalanceofdeferredincometaxassetsandliabilities |
| liabilities | ||||
| Deferredincometaxassets | 157,913,267.50 | 157,892,110.06 | ||
| Deferredincometaxliabilities | 146,711,645.69 | 155,178,797.04 |
(4)Listofunrecognizeddeferredincometaxassets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Deductibletemporarydifference | 103,981,497.90 | 65,448,810.95 |
| Deductiblelosses | 282,890,915.21 | 257,150,469.99 |
| Total | 386,872,413.11 | 322,599,280.94 |
(5)Deductiblelossesofunrecognizeddeferredincometaxassetswilldueinthefollowingyears
Unit:RMB
| Years | Endingamount | Beginningamount | Note |
| Y2025 | 299.83 | ||
| Y2026 | 71,235,558.18 | 71,235,558.18 | |
| Y2027 | 96,904,257.37 | 96,904,257.37 | |
| Y2028 | 89,010,354.61 | 89,010,354.61 | |
| Y2029 | 25,740,745.05 | ||
| Total | 282,890,915.21 | 257,150,469.99 |
21.OtherNon-currentAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Projectprepayment | 672,659.25 | 672,659.25 | ||||
| Prepaymentforequipment | 8,345,688.43 | 8,345,688.43 | 2,008,677.98 | 2,008,677.98 | ||
| Prepaymentforland | 14,836,218.75 | 14,836,218.75 | ||||
| Termdepositsover1year | 485,000,000.00 | 485,000,000.00 | 150,000,000.00 | 150,000,000.00 | ||
| Interestreceivablefromtermdepositsover1year | 10,059,935.69 | 10,059,935.69 | 3,008,929.60 | 3,008,929.60 | ||
| Total | 518,241,842.87 | 518,241,842.87 | 155,690,266.83 | 155,690,266.83 | ||
22.AssetswithRestrictedOwnershiporRighttoUse
Unit:RMB
| Item | Period-end | Period-beginning | ||||||
| Carryingamount | Carryingvalue | Typeofrestriction | Statusofrestriction | Carryingamount | Carryingvalue | Typeofrestriction | Statusofrestriction | |
| Monetary | 2,459,213.5 | 2,459,213.5 | Deposit,frozen | 4,024,123.1 | 4,024,123.1 | Deposit,frozen | ||
| capital | 7 | 7 | 4 | 4 | |||
| Notesreceivable | 64,533,654.20 | 64,533,654.20 | Endorsedordiscountedbutnotyetdueforderecognization | 51,979,653.25 | 51,979,653.25 | Endorsedordiscountedbutnotyetdueforderecognization | |
| Othercurrentassets | 127,182,557.28 | 127,182,557.28 | Refundabledeposits | 137,881,884.82 | 137,881,884.82 | Refundabledeposits | |
| Total | 194,175,425.05 | 194,175,425.05 | 193,885,661.21 | 193,885,661.21 |
23.Short-termBorrowings
(1)CategoryofShort-termBorrowings
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Borrowingssecuredbyguarantee | 49,025,275.16 | 68,275,604.36 |
| Creditloan | 549,603,995.30 | 512,429,167.91 |
| Total | 598,629,270.46 | 580,704,772.27 |
Notesofthecategoryforshort-termloans:
Theshort-termborrowingincludesinterestpayableofRMB512,249.66.
24.Tradingfinancialliabilities
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Tradingfinancialliabilities | 80,716,835.26 | 46,785,831.47 |
| Ofwhich: | ||
| Derivativefinancialliabilities | 80,716,835.26 | 46,785,831.47 |
| Ofwhich: | ||
| Total | 80,716,835.26 | 46,785,831.47 |
25.AccountsPayable
(1)Listofaccountspayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Paymentforgoods | 109,074,933.12 | 127,198,717.36 |
| Engineeringequipment | 72,532,063.65 | 106,150,377.55 |
| Others | 40,117,971.03 | 42,153,820.14 |
| Total | 221,724,967.80 | 275,502,915.05 |
(2)SignificantAccountsPayableAgingoverOneYearorOverdueNosignificantaccountspayableoveroneyearoldattheendoftheCurrentPeriod.
26.OtherPayables
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Dividendspayable | 441,113.64 | 441,113.64 |
| Otherpayables | 18,274,288.70 | 47,108,259.88 |
| Total | 18,715,402.34 | 47,549,373.52 |
(1)Dividendspayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Dividendspayabletoindividualshareholders | 441,113.64 | 441,113.64 |
| Total | 441,113.64 | 441,113.64 |
Othernotes:includingsignificantdividendspayableunpaidforoveroneyear,theunpaidreasonshallbedisclosed:
(2)OtherPayables
1)Otherpayableslistedbynature
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Depositsandcashdepositsetc. | 5,758,066.92 | 5,026,687.70 |
| Collectingpaymentonbehalfofothers | 366,641.34 | 213,812.12 |
| Restrictedstockrepurchaseobligations | 186,060.00 | 31,556,265.00 |
| Others | 11,963,520.44 | 10,311,495.06 |
| Total | 18,274,288.70 | 47,108,259.88 |
27.ContractLiabilities
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Advancefromsales | 171,441,953.96 | 203,270,689.03 |
| Less:contractliabilityrecordedinothercurrentliabilities | -5,459,173.89 | -15,197,353.14 |
| Total | 165,982,780.07 | 188,073,335.89 |
Significantcontractliabilitiesagingoveroneyear
Unit:RMB
| Item | Endingbalance | Unpaid/Un-carry-overreason |
| Customer1 | 18,565,812.13 | Heatingfacilitiessupportingfeesnotyetcarriedforward |
| Customer2 | 18,808,502.64 | Heatingfacilitiessupportingfeesnotyetcarriedforward |
| Total | 37,374,314.77 |
28.PayrollPayable
(1)Listofpayrollpayable
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance |
| I.Short-termsalary | 284,329,504.63 | 703,391,825.99 | 753,763,303.47 | 233,958,027.15 |
| II.Post-employmentbenefit-definedcontributionplans | 15,469.09 | 86,717,708.13 | 86,471,859.17 | 261,318.05 |
| III.Terminationbenefits | 420,365.94 | 420,365.94 | 0.00 | |
| Total | 284,344,973.72 | 790,529,900.06 | 840,655,528.58 | 234,219,345.20 |
(2)ListofShort-termSalary
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance |
| 1.Salary,bonus,allowance,subsidy | 213,425,517.98 | 626,356,613.26 | 678,504,314.76 | 161,277,816.48 |
| 2.Employeewelfare | 211,683.08 | 20,641,385.86 | 20,644,898.57 | 208,170.37 |
| 3.Socialinsurance | 32,536.50 | 39,356,951.74 | 39,314,439.07 | 75,049.17 |
| Ofwhich:Medicalinsurancepremiums | 31,411.48 | 35,713,302.82 | 35,670,714.40 | 73,999.90 |
| Work-relatedinjuryinsurancepremiums | 375.01 | 3,639,148.86 | 3,639,224.61 | 299.26 |
| Maternityinsurance | 750.01 | 4,500.06 | 4,500.06 | 750.01 |
| 4.Housingfund | 7,024,438.65 | 7,024,438.65 | 0.00 | |
| 5.Laborunionbudgetandemployeeeducationbudget | 70,659,767.07 | 10,012,436.48 | 8,275,212.42 | 72,396,991.13 |
| Total | 284,329,504.63 | 703,391,825.99 | 753,763,303.47 | 233,958,027.15 |
(3)Listofdefinedcontributionplans
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance |
| 1.Basicpensioninsurance | 15,000.32 | 82,470,541.76 | 82,246,835.56 | 238,706.52 |
| 2.Unemploymentinsurancepremiums | 468.77 | 4,247,166.37 | 4,225,023.61 | 22,611.53 |
| Total | 15,469.09 | 86,717,708.13 | 86,471,859.17 | 261,318.05 |
Othernotes:
TheCompany,inlinewiththerequirement,participatesinendowmentinsurance,unemploymentinsuranceplans,andsoon.Undertheseplans,theCompanymakesmonthlycontributionstotheseplansat16%and0.70%ofthesocialsecuritycontributionbase,respectively.NofurtherpaymentobligationswillbeincurredbytheCompanybeyondtheabovemonthlycontributionfees.Therelevant
expenseoccurredwasrecordedintocurrentprofitsandlossesorrelatedassetcosts.
29.TaxesPayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| VAT | 1,834,511.62 | 15,261,850.74 |
| Enterpriseincometax | 15,600,828.02 | 14,347,230.63 |
| Personalincometax | 2,401,078.42 | 1,266,426.62 |
| Urbanmaintenanceandconstructiontax | 957,813.27 | 2,753,492.14 |
| Stampduty | 586,514.43 | 848,769.75 |
| Realestatetax | 5,500,763.31 | 5,059,177.21 |
| Landusetax | 2,388,606.80 | 668,899.85 |
| Educationalfee | 443,622.54 | 1,253,814.31 |
| Localeducationsurcharge | 299,448.37 | 843,626.22 |
| Taxonnaturalresources | 154,950.00 | 31,938.00 |
| Environmentalprotectiontax | 213,589.91 | 298,007.08 |
| Total | 30,381,726.69 | 42,633,232.55 |
30.CurrentPortionofNon-currentLiabilities
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Long-termborrowingsmaturedwithin1year | 16,326,401.72 | 88,930,000.00 |
| Leaseobligationmaturedwithin1year | 6,992,799.73 | 7,277,192.49 |
| Total | 23,319,201.45 | 96,207,192.49 |
31.Othercurrentliabilities
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Taxtobechargedoff | 5,459,173.89 | 15,197,353.14 |
| Endorsedunduebillundernon-derecognition | 52,011,856.65 | 48,449,554.97 |
| Total | 57,471,030.54 | 63,646,908.11 |
32.Long-termBorrowings
(1)Categoryoflong-termborrowings
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Creditloan | 722,681,961.13 | 348,922,974.40 |
| Less:currentportionoflong-termborrowings | -16,326,401.72 | -88,930,000.00 |
| Total | 706,355,559.41 | 259,992,974.40 |
Notetothecategoryoflong-termborrowings:
Thelong-termborrowingsincludedinterestpayableofRMB621,917.86Othernotes,includinginterestraterange:
| Item | Endingbalance | Interestraterange(%) | Beginningbalance | Interestraterange(%) |
| Creditloans | 722,681,961.13 | 2.30%-2.50% | 348,922,974.40 | 2.50%-2.80% |
33.BondsPayable
(1)Bondspayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Convertiblecorporatebonds | 1,482,171,331.99 | 1,476,572,070.79 |
| Total | 1,482,171,331.99 | 1,476,572,070.79 |
(2)Changesofbondspayable(excludingotherfinancialinstrumentsdividedasfinancialliabilitiessuchaspreferredsharesandperpetualbonds)
Unit:RMB
| Name | Parvalue | Couponrate | Issuedate | Bondduration | Issueamount | Beginningbalance | IssuedintheReportingPeriod | Interestaccruedatparvalue | Amortizationofpremiumanddepreciation | RepaidintheReportingPeriod | Currentsharesconverted | Endingbalance | Defaultornot |
| LuThaiConvertibleBond(127016) | 1,400,000,000.00 | 9April2020 | 6years | 1,400,000,000.00 | 1,476,572,070.79 | 0.00 | 11,408,486.94 | 15,190,197.87 | 20,997,723.61 | 1,700.00 | 1,482,171,331.99 | No | |
| Total | 1,400,000,000.00 | 1,476,572,070.79 | 0.00 | 11,408,486.94 | 15,190,197.87 | 20,997,723.61 | 1,700.00 | 1,482,171,331.99 |
(3)Notestotheconvertiblecorporatebonds
AccordingtotheApprovalofthePublicIssueofConvertibleCorporateBondsofLuThaiTextileCo.,Ltd.(ZH.J.X.K[2020]No.
299)oftheChinaSecuritiesRegulatoryCommission,theCompanyissued14millionconvertiblebondswithafacevalueofRMB100eachforatotalissueamountofRMB1.4billionwithamaturityof6years,i.e.from9April2020to8April2026.ThecouponratesoftheconvertiblebondsissuedbytheCompanyare0.3%,0.6%,1%,1.5%,1.8%and2%inthefollowingorder
fromthefirststagetothesixthstage,withinterestpayableannually.Theconversionperiodshallcommencefrom(andinclude)thefirsttradingdayon15October2020,sixmonthsafterthedateofissue,andshallendon(andinclude)thetradingdaypriortothematuritydateoftheconvertiblebonds(8April2026).Holdersmayapplyforconversionduringtheconversionperiod.TheinitialconversionpriceofconvertiblecorporatebondswasRMB9.01persharewhenitwasissuedbutwasadjustedtoRMB8.91persharesinceJuly9,2020,aftertheCompanyimplementedthe2019profitsharingagreementonJuly8,2020.AftertheCompanyimplementedtherestrictedstockincentiveplanin2021,thepricewasadjustedtoRMB8.76pershareaccordinglysinceJune7,2021.Upontheimplementationofthe2020profitsharingagreementbytheCompanyonJune18,2021,itwasadjustedtoRMB8.71pershareaccordinglyagainsinceJune18,2021.Upontheimplementationofthe2021profitsharingagreementbytheCompanyonJune23,2022,itwasadjustedtoRMB8.61pershareaccordinglyagainsinceJune23,2022.TheCompanycompletedtheformalitiesforcancellationoftherepurchasedshareson25May2023,andtheconversionpriceoftheconvertiblebondwasadjustedaccordinglytoRMB8.73pershareon26May2023.Upontheimplementationofthe2022ProfitDistributionPlanbytheCompanyon16June2023,theconversionpriceoftheconvertiblebondwasadjustedtoRMB8.63pershareaccordinglyon16June2023.TheCompanycompletedtheformalitiesforcancellationoftherepurchasedshareson1March2024,andtheconversionpriceoftheconvertiblebondwasadjustedaccordinglytoRMB8.87pershareon4March2024.Upontheimplementationofthe2023ProfitDistributionPlanbytheCompanyon19June2024,theconversionpriceoftheconvertiblebondwasadjustedtoRMB8.74pershareaccordinglyon19June2024.
34.Leaseobligation
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Leasepayments | 134,961,194.73 | 123,608,615.06 |
| Unrecognizedfinancingcosts | -28,336,471.86 | -29,751,198.16 |
| Less:Currentportionofleaseliabilities | -6,992,799.73 | -7,277,192.49 |
| Total | 99,631,923.14 | 86,580,224.41 |
OthernotesTheamountofinterestexpenseonleaseliabilitiesaccruedinH12024wasRMB2,405,053.32,whichwasincludedinfinancialcosts-interestexpense.
35.Long-termPayrollPayable
(1)Listoflong-termpayrollpayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| III.Otherlong-termwelfare | 57,276,675.61 | 57,276,675.61 |
| Total | 57,276,675.61 | 57,276,675.61 |
36.DeferredIncome
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance | Reasonforformation |
| Governmentgrants | 151,768,947.92 | 350,000.00 | 3,731,952.21 | 148,386,995.71 | Governmentgrants |
| Total | 151,768,947.92 | 350,000.00 | 3,731,952.21 | 148,386,995.71 |
37.ShareCapital
Unit:RMB
| Beginningbalance | Increase/decrease(+/-) | Endingbalance | |||||
| Newsharesissued | Bonusshares | Sharesconvertedfromcapitalreserve | Others | Subtotal | |||
| Totalshares | 863,607,634.00 | -46,242,738.00 | -46,242,738.00 | 817,364,896.00 | |||
Othernotes:
(1)InaccordancewiththeProposalonRepurchaseoftheCompany’sDomesticallyListedForeignShares(BShare).reviewedandapprovedbytheCompanyatthe10thMeetingofthe10thBoardofDirectorson19June2023andthe1stExtraordinaryGeneralMeetingof2023on6July2023,theCompanyrepurchased46,176,428BsharesandcompletedtheformalitiesforcancellationoftheforegoingrepurchasedsharesattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimitedon1March2024.ThischangeinsharecapitalhasbeenauditedbyZhitongAccountingFirm(SpecialGeneralPartnership)andthecapitalverificationreportZTYZ(2024)No.371C000075wasissuedon26February2024.
(2)Inconformitywiththeresolutionofthe18thMeetingoftheTenthBoardofDirectorson19January2024andtheresolutionoftheGeneralMeetingoftheCompanyon5February2024,theProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveCondition,allthe66,500sharesauthorizedtotheoriginalincentivepersonnelwhodidnotconformtotheincentiveconditionoftheCompanywererepurchasedandcancelled.
(3)Atotalof190sharesofconvertiblebondsoftheCompanycanbeconvertedintheReportingPeriod.
38.OtherEquityInstruments
(1)Changesofoutstandingfinancialinstrumentssuchaspreferredsharesandperpetualbondsattheperiod-end
Unit:RMB
| Outstandingfinancialinstruments | Period-beginning | Increase | Decrease | Period-end | ||||
| Number | Carryingvalue | Number | Carryingvalue | Number | Carryingvalue | Number | Carryingvalue | |
| Convertibledebttoequity | 71,383,677.78 | 86.69 | 71,383,591.09 | |||||
| Total | 71,383,677.78 | 86.69 | 71,383,591.09 | |||||
ChangesofotherequityinstrumentsintheCurrentPeriod,reasonsthereofandbasisofrelatedaccountingtreatment:
ThedecreaseofotherequityinstrumentsintheReportingPeriodwasduetoconvertibledebttoequity
39.CapitalReserves
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance |
| Capitalpremium(premiumonstock) | 249,154,010.40 | 30,051,192.18 | 153,713,470.40 | 125,491,732.18 |
| Othercapitalreserves | 85,638,604.36 | 3,320,556.76 | 30,049,600.00 | 58,642,016.12 |
| Total | 334,792,614.76 | 33,371,748.94 | 183,763,070.40 | 184,401,293.30 |
Othernotes,includingadescriptionoftheincreaseordecreaseforthecurrentperiodandthereasonsforthechange:
(1)Thecapitalreserves-capitalpremiumdecreasedbyRMB153,572,985.40duetorepurchaseofBsharesintheReportingPeriod;
(2)IntermsoftherestrictedstockincentivefeesintheReportingPeriod,thecapitalreserve-othercapitalreserveincreasedbyRMB2,994,814.61.TheportionofrestrictedsharesofRMB30,049,600.00duetobeunlockedwastransferredfromthecapitalreserve-othercapitalreservetothecapitalreserve-capitalpremium.
(3)Thecapitalreserves-capitalpremiumdecreasedbyRMB140,485duetorepurchaseofrestrictedshares.
40.Treasurystocks
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance |
| Restrictedstock | 31,556,265.00 | 31,370,205.00 | 186,060.00 | |
| Bsharesrepurchase | 161,882,455.78 | 37,866,957.62 | 199,749,413.40 | |
| Total | 193,438,720.78 | 37,866,957.62 | 231,119,618.40 | 186,060.00 |
Othernotes,includingadescriptionoftheincreaseordecreaseforthecurrentperiodandthereasonsforthechange:
1.RMB31,370,205.00wasdecreasedforthecurrentperiodduetotheunlockingandrepurchaseofrestrictedshares.
2.RMB37,886,957.62oftreasurystocksduetoBsharerepurchasewasincreased.
3.RMB199,749,413.40ofBshareswascancelled.
41.Othercomprehensiveincome
Unit:RMB
| Item | Beginningbalance | Amountofthecurrentperiod | Endingbalance | |||||
| Amountbeforedeductingincometaxforthecurrentperiod | Less:recordedinothercomprehensiveincomeinpriorperiodandtransferredinprofitorlossintheCurrentPeriod | Less:recordedinothercomprehensiveincomeinpriorperiodandtransferredinretainedearningsintheCurrentPeriod | Less:Incometaxexpense | AttributabletotheCompanyastheparentaftertax | Attributableminorityshareholdersaftertax | |||
| II.Othercomprehensiveincomethatmaysubsequentlybereclassifiedtoprofitorloss | 131,343,141.63 | 9,381,547.91 | 5,058.34 | 9,376,489.57 | 0.00 | 140,719,631.20 | ||
| Differencesarisingfromtranslationofforeigncurrency-denominatedfinancialstatements | 131,410,451.64 | 9,340,942.61 | 9,340,942.61 | 140,751,394.25 | |||
| Thechangesofaccountsreceivablefinancinginfairvalue | -67,310.01 | 40,605.30 | 5,058.34 | 35,546.96 | -31,763.05 | ||
| Totalofothercomprehensiveincome | 131,343,141.63 | 9,381,547.91 | 5,058.34 | 9,376,489.57 | 140,719,631.20 |
42.SpecialReserve
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance |
| Safetyproductioncosts | 4,090,000.00 | 1,522,239.68 | 2,567,760.32 | |
| Total | 4,090,000.00 | 1,522,239.68 | 2,567,760.32 |
43.Surplusreserves
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance |
| Statutorysurplusreserves | 1,257,319,442.76 | 1,257,319,442.76 | ||
| Discretionalsurplusreserves | 3,341,572.58 | 3,341,572.58 | ||
| Total | 1,260,661,015.34 | 1,260,661,015.34 |
44.RetainedEarnings
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Beginningbalanceofretainedprofitsbeforeadjustments | 6,762,457,543.07 | 6,490,910,719.35 |
| Beginningbalanceofretainedprofitsafteradjustments | 6,762,457,543.07 | 6,490,910,719.35 |
| Add:NetprofitattributabletoownersoftheCompanyastheparent | 169,559,969.54 | 221,647,998.15 |
| Dividendsofcommonsharespayable | 106,249,766.48 | 86,360,751.90 |
| Endingretainedprofits | 6,825,767,746.13 | 6,626,197,965.60 |
Listofadjustmentofbeginningretainedprofits:
1)RMB0.00beginningretainedprofitswasaffectedbyretrospectiveadjustmentconductedaccordingtotheAccountingStandardsforBusinessEnterprisesandrelevantnewregulations.
2)RMB0.00beginningretainedprofitswasaffectedbychangesinaccountingpolicies.
3)RMB0.00beginningretainedprofitswasaffectedbycorrectionofsignificantaccountingerrors.
4)RMB0.00beginningretainedprofitswasaffectedbychangesincombinationscopearisingfromsamecontrol.
5)RMB0.00beginningretainedprofitswasaffectedtotallybyotheradjustments.
45.Operatingrevenueandcostofsales
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear | ||
| OperatingRevenue | CostofSales | OperatingRevenue | CostofSales | |
| Mainoperations | 2,763,053,072.61 | 2,078,775,369.49 | 2,755,370,258.68 | 2,166,155,297.68 |
| Otheroperations | 67,435,613.00 | 53,218,122.64 | 85,121,003.79 | 67,777,069.99 |
| Total | 2,830,488,685.61 | 2,131,993,492.13 | 2,840,491,262.47 | 2,233,932,367.67 |
Informationaboutperformanceobligations:none.Informationinrelationtothetransactionpriceapportionedtotheresidualcontractperformanceobligation:
TheamountofrevenuecorrespondingtoperformanceobligationsofcontractssignedbutnotperformedornotfullyperformedyetwasRMB0.00attheperiod-end,amongwhichRMB0.00wasexpectedtoberecognizedinXXX,RMB0.00wasexpectedtoberecognizedinXXX,andRMB0.00wasexpectedtoberecognizedinXXX.
46.Taxesandsurtaxes
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Urbanmaintenanceandconstructiontax | 6,289,033.04 | 7,809,806.48 |
| Educationalfee | 2,739,134.65 | 3,269,199.52 |
| Taxonnaturalresources | 501,124.97 | 461,899.63 |
| Realestatetax | 11,076,205.06 | 10,749,586.45 |
| Landusetax | 4,779,301.36 | 7,639,050.17 |
| Vehicleandvesselusagetax | 44,897.44 | 47,802.52 |
| Stampduty | 1,184,777.08 | 1,545,453.42 |
| Localeducationsurcharge | 1,826,088.21 | 2,364,499.69 |
| Environmentalprotectiontax | 684,824.01 | 473,062.48 |
| Total | 29,125,385.82 | 34,360,360.36 |
Othernotes:
PleaserefertoNoteVI.Taxesfordetailsofvarioustaxesandadditionalstandardsforcalculationandpayment.
47.Administrativeexpense
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Salary | 77,230,152.38 | 80,911,708.29 |
| Depreciationcharge | 20,703,778.67 | 19,438,392.08 |
| Warehousefunding | 18,344,401.07 | 18,862,735.72 |
| Labor-unionexpenditure | 5,236,534.53 | 5,566,260.80 |
| Employeeeducationbudget | 3,801,648.86 | 3,894,091.42 |
| Amortizationofintangibleassets | 6,729,562.66 | 5,795,577.62 |
| Carriagecharges | 4,767,761.97 | 3,694,751.74 |
| Others | 21,991,320.55 | 37,144,843.72 |
| Total | 158,805,160.69 | 175,308,361.39 |
48.Sellingexpense
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Salary | 32,065,926.42 | 33,546,461.28 |
| Marketingexpenses | 16,111,399.23 | 16,171,875.20 |
| Depreciationcharge | 3,344,566.64 | 3,510,556.38 |
| Travelexpenses | 3,231,195.05 | 3,906,192.17 |
| Officecost | 5,569,616.81 | 7,315,422.95 |
| Others | 2,964,017.13 | 1,960,739.32 |
| Total | 63,286,721.28 | 66,411,247.30 |
49.R&Dexpense
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Laborcost | 63,810,510.13 | 74,856,472.66 |
| Materialexpense | 32,672,913.93 | 36,990,187.47 |
| Depreciationcharge | 9,704,000.88 | 8,755,526.54 |
| Other | 9,187,172.25 | 10,687,845.37 |
| Total | 115,374,597.19 | 131,290,032.04 |
50.Financialcosts
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Interestexpense | 50,759,962.29 | 49,206,191.44 |
| Less:Capitalizedinterestexpense | 2,028,489.95 | 9,703,751.96 |
| Interestincome | 24,797,577.49 | 30,385,764.22 |
| Foreignexchangegainsorlosses | -22,788,175.63 | -70,727,318.85 |
| Other | 3,103,872.71 | 4,603,167.24 |
| Total | 4,249,591.93 | -57,007,476.34 |
51.Otherincome
Unit:RMB
| Sources | Reportingperiod | Sameperiodoflastyear |
| Governmentgrants | 11,197,161.62 | 6,960,772.36 |
| Transferofdeferredrevenuetogovernmentgrants | 3,731,952.21 | 20,764,150.04 |
| Total | 14,929,113.83 | 27,724,922.40 |
52.Gainonchangesinfairvalue
Unit:RMB
| Sources | Reportingperiod | Sameperiodoflastyear |
| Tradingfinancialassets | -78,608,823.48 | -31,900,187.41 |
| Ofwhich:Incomefromchangesinfairvaluegeneratedbyderivativefinancialinstruments | -4,942,381.29 | -10,603,652.37 |
| Tradingfinancialliabilities | -33,931,003.79 | -10,571,518.40 |
| Total | -112,539,827.27 | -42,471,705.81 |
53.Investmentincome
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Long-termequityinvestmentincomeaccountedbyequitymethod | 8,619,094.53 | -1,333,148.86 |
| Investmentincomefromdisposalofheld-for-tradingfinancialasset | -11,908,540.91 | 48,131,810.86 |
| Total | -3,289,446.38 | 46,798,662.00 |
54.Creditimpairmentloss
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Lossonuncollectiblenotesreceivable | -331,749.55 | 0.00 |
| Lossonuncollectibleaccountsreceivable | 891,673.39 | 14,959,740.60 |
| Lossonuncollectibleotherreceivables | 27,530.58 | 1,849,983.45 |
| Total | 587,454.42 | 16,809,724.05 |
55.Assetimpairmentloss
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| I.Inventoryfallingpricelossandimpairmentprovisionforcontractperformancecosts | -34,719,445.19 | -75,665,553.95 |
| Total | -34,719,445.19 | -75,665,553.95 |
56.Assetdisposalincome
Unit:RMB
| Sources | Reportingperiod | Sameperiodoflastyear |
| Fixedassetdisposalincome("-"forloss) | -232,868.16 | -404,759.16 |
57.Non-operatingincome
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
| Claimincome | 2,268,221.27 | 2,140,794.59 | |
| Other | 609,798.53 | 2,090,456.30 | |
| Total | 2,878,019.80 | 4,231,250.89 |
58.Non-operatingexpense
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
| Donations | 699,531.71 | 438,626.02 | |
| Other | 1,667,153.49 | 2,025,734.51 | |
| Total | 2,366,685.20 | 2,464,360.53 |
59.Incometaxexpense
(1)Listofincometaxexpense
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Currentincometaxexpense | 20,223,864.33 | 10,575,366.34 |
| Deferredincometaxexpense | -1,359,058.54 | 10,416,049.17 |
| Total | 18,864,805.79 | 20,991,415.51 |
(2)Adjustmentprocessofaccountingprofitandincometaxexpense
Unit:RMB
| Item | Reportingperiod |
| Profitbeforetaxation | 192,900,052.42 |
| Currentincometaxexpenseaccountedatstatutory/applicabletaxrate | 28,935,007.86 |
| Influenceofapplyingdifferenttaxratesbysubsidiaries | 5,809,810.29 |
| Influenceofincometaxbeforeadjustment | -1,045,158.00 |
| Effectofdeductibletemporarydifferencesordeductiblelossesondeferredincometaxassetsnotrecognizedintheperiod | -3,956,472.26 |
| InfluenceofadditionaldeductionofR&Dexpenses | -10,878,382.10 |
| Incometaxexpense | 18,864,805.79 |
60.OtherComprehensiveIncomeRefertoNoteVII-41fordetails.
61.Cashflowstatement
(1)CashrelatedtooperatingactivitiesCashgeneratedfromotheroperatingactivities
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Governmentsubsidy | 3,216,502.43 | 21,278,038.60 |
| Claimincome | 2,414,067.12 | 1,680,611.12 |
| Recoveryofemployeeborrowings,pettycashanddeposit | 8,194,771.46 | 5,065,850.80 |
| Collectionforemployees | 346,822.55 | 1,913,782.89 |
| Others | 1,069,421.84 | 38,176,145.58 |
| Total | 15,241,585.40 | 68,114,428.99 |
Cashusedinotheroperatingactivities
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Businesstravelcharges | 18,759,630.87 | 24,090,673.70 |
| Insurance | 3,018,009.97 | 2,214,458.96 |
| Agencyservicefee | 7,462,933.03 | 3,463,173.10 |
| Decoration&repairexpenses | 6,256,818.44 | 1,205,617.14 |
| Donation | 689,277.94 | 954,843.00 |
| Paymentofemployeeborrowings,pettycashanddeposit | 6,682,473.24 | 5,533,763.00 |
| Others | 30,033,350.44 | 29,917,190.98 |
| Total | 72,902,493.93 | 67,379,719.88 |
(2)Cashrelatedtoinvestingactivities
Cashgeneratedfromotherinvestingactivities
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Interestincome | 25,561,955.08 | 21,207,422.84 |
| Incomefromforwardforeignexchange | 623,600.00 | 16,005,350.00 |
| Recoveryofcashdeposit | 1,457,909.57 | 805,891.25 |
| Recoveryoffixedtimedeposits | 25,054,958.83 | 23,179,142.80 |
| Proceedsfromfinancingsecurities | 2,394,104.88 | |
| Total | 55,092,528.36 | 61,197,806.89 |
Cashgeneratedfromimportantinvestingactivities
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Governmentbondreverserepo | 140,961,000.00 | 1,131,816,000.00 |
| Structuraldeposits | 226,000,000.00 | 314,000,000.00 |
| Wealthmanagementproducts | 80,000,000.00 | |
| Total | 366,961,000.00 | 1,525,816,000.00 |
Cashusedinotherinvestingactivities
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Fixedtimedeposits | 184,000,000.00 | 2,506,369.87 |
| Forwardsettlementexchangeloss | 3,380,600.00 | |
| Paymentofdeposit | 1,387,667.04 | |
| Total | 187,380,600.00 | 3,894,036.91 |
Cashusedinsignificantinvestingactivities
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Governmentbondreverserepo | 90,000,000.00 | 1,151,818,000.00 |
| Structuraldeposits | 226,000,000.00 | 629,000,000.00 |
| Wealthmanagementproducts | 150,000,000.00 | |
| Total | 466,000,000.00 | 1,780,818,000.00 |
(3)CashRelatedtoFinancingActivities
Cashusedinotherfinancingactivities
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Repaymentofleaseliabilitiesandprepaidrent | 9,319,173.11 | 9,505,516.17 |
| RepurchaseofB-shares | 37,825,078.13 | |
| Total | 47,144,251.24 | 9,505,516.17 |
Changesinliabilitiesarisingfromfinancingactivities?Applicable□Notapplicable
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance | ||
| Cashfluctuations | Non-cashfluctuations | Cashfluctuations | Non-cashfluctuations | |||
| Short-termloan | 580,704,772.27 | 551,971,451.53 | 2,822,842.62 | 535,641,270.74 | 1,228,525.22 | 598,629,270.46 |
| Long-termloans | 348,922,974.40 | 760,660,043.27 | 4,648,004.83 | 391,549,061.37 | 722,681,961.13 | |
| Bondspayable | 1,476,572,070.79 | 26,598,701.96 | 20,997,730.50 | 700.00 | 1,482,172,342.25 | |
| Leaseliabilities | 93,857,416.90 | 21,709,794.02 | 8,942,488.05 | 106,624,722.87 | ||
| Total | 2,500,057,234.36 | 1,312,631,494.80 | 55,779,343.43 | 957,130,550.66 | 1,229,225.22 | 2,910,108,296.71 |
62.Supplementalinformationforcashflowstatement
(1)Supplementalinformationforcashflowstatement
Unit:RMB
| Supplementalinformation | Amountduringthecurrentperiod | Sameperiodoflastyear |
| 1.Reconciliationofnetprofittonetcashflowsgeneratedfromoperatingactivities | ||
| NetProfit | 174,035,246.63 | 209,763,134.43 |
| Add:Provisionforimpairmentofassets | 34,131,990.77 | 58,855,829.90 |
| Depreciationoffixedassets,oil-gasassets,andproductivebiologicalassets | 239,784,009.94 | 247,686,260.65 |
| Depreciationofright-of-useassets | 12,660,992.42 | 12,250,817.48 |
| Amortizationofintangibleassets | 5,350,029.52 | 5,551,488.76 |
| Amortizationoflong-termprepaidexpenses | 671,332.62 | 605,167.80 |
| Lossesfromdisposaloffixedassets,intangibleassetsandotherlong-livedassets(gains:negative) | -232,868.16 | -404,759.16 |
| Lossesfromscrapoffixedassets(gains:negative) | ||
| Lossesfromchangesinfairvalue(gainsrepresentedby"-") | 112,539,827.27 | 42,471,705.81 |
| Financecosts(gains:negative) | 1,145,719.22 | -61,610,643.58 |
| Investmentloss(gainsrepresentedby"-") | 3,289,446.38 | -46,798,662.00 |
| Decreaseindeferredincometaxassets(gains:negative) | -21,157.44 | 10,213,915.11 |
| Increaseindeferredincometaxliabilities("-"meansdecrease) | -8,467,151.35 | -1,011,200.04 |
| Decreaseininventory(gains:negative) | -27,021,239.55 | -136,941,690.32 |
| Decreaseinaccountsreceivablegeneratedfromoperatingactivities(gainsrepresentedby"-") | 101,833,736.62 | 70,267,472.18 |
| Increaseinaccountspayableusedinoperatingactivities(decreaserepresentedby"-") | -198,278,262.20 | -262,288,620.04 |
| Others | ||
| Netcashflowfromoperatingactivities | 451,421,652.69 | 148,610,216.98 |
| 2.Significantinvestingandfinancingactivitieswithoutinvolvementofcashreceiptsandpayments | ||
| Conversionofdebttocapital | ||
| Convertiblecorporatebondsmaturedwithinoneyear | ||
| Fixedassetunderfinancelease | ||
| 3.Netincrease/decreaseofcashandcashequivalent: | ||
| Closingbalanceofcash | 1,651,175,499.97 | 1,289,867,784.05 |
| Less:Openingbalanceofcash | 1,353,615,305.93 | 1,822,897,270.16 |
| Plus:Closingbalanceofcashequivalents | ||
| Less:Openingbalanceofcashequivalents | ||
| Netincreaseincashandcashequivalents | 297,560,194.04 | -533,029,486.11 |
(2)Cashandcashequivalents
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| I.Cash | 1,651,175,499.97 | 1,353,615,305.93 |
| Including:Cashonhand | 6,112,136.39 | 2,633,018.72 |
| Bankdepositsondemand | 1,644,811,250.37 | 1,079,820,776.67 |
| Othermonetaryassetsondemand | 252,113.21 | 271,161,510.54 |
| III.Endingbalanceofcashandcashequivalents | 1,651,175,499.97 | 1,353,615,305.93 |
63.Foreigncurrencymonetaryitems
(1)Foreigncurrencymonetaryitems
Unit:RMB
| Item | Closingforeigncurrencybalance | Exchangerate | EndingbalanceconvertedtoRMB |
| Monetarycapital | |||
| Ofwhich:USD | 107,875,142.77 | 7.1268 | 768,804,567.49 |
| EUR | 267,020.24 | 7.6617 | 2,045,828.97 |
| HKD | 425,531.80 | 0.9127 | 388,382.87 |
| JPY | 6,248,113.00 | 0.0447 | 279,290.65 |
| GBP | 57.18 | 9.0430 | 517.08 |
| Dong | 92,455,628,509.00 | 0.0003 | 27,736,688.55 |
| MMK | 1,767,692,887.54 | 0.0034 | 6,010,155.82 |
| Riel | 690,222,041.00 | 0.0017 | 1,173,377.47 |
| Accountsreceivable | |||
| Ofwhich:USD | 77,427,161.79 | 7.1268 | 551,807,896.64 |
| EUR | 133,289.94 | 7.6617 | 1,021,227.53 |
| HKD | |||
| Dong | 12,883,056,313.00 | 0.0003 | 3,864,916.89 |
| MMK | 365,746,398.78 | 0.0034 | 1,243,537.76 |
| Long-termborrowings | |||
| Ofwhich:USD | |||
| EUR | |||
| HKD | |||
| Otherreceivables: | |||
| Ofwhich:USD | 1,738,515.89 | 7.1268 | 12,390,055.04 |
| EUR | 28,700.00 | 7.6617 | 219,890.79 |
| HKD | 145,549.00 | 0.9127 | 132,842.57 |
| JPY | 2,548,040.00 | 0.0447 | 113,897.39 |
| Dong | 4,428,556,372.00 | 0.0003 | 1,328,566.91 |
| MMK | 113,900,600.00 | 0.0034 | 387,262.04 |
| Accountspayable: | |||
| Ofwhich:USD | 6,639,755.29 | 7.1268 | 47,320,208.00 |
| EUR | 70,673.00 | 7.6617 | 541,475.32 |
| JPY | 23,950,590.00 | 0.0447 | 1,070,591.37 |
| CHF | 4,400.00 | 7.9471 | 34,967.24 |
| Dong | 34,114,626,928.80 | 0.0003 | 10,234,388.08 |
| MMK | 25,366,340.90 | 0.0034 | 86,245.56 |
| Otherpayables: | |||
| Ofwhich:Dong | 305,566,528.00 | 0.0003 | 91,669.96 |
| MMK | 1,030,000.00 | 0.0034 | 3,502.00 |
| Short-termborrowings: |
| Ofwhich:USD | 79,625,169.75 | 7.1268 | 567,472,659.77 |
| Dong | 66,431,701,942.00 | 0.0003 | 19,929,510.58 |
(2)Notestooverseasentitiesincluding:forsignificantoverseaentities,mainoperatingplace,recordingcurrencyandselectionbasisshallbedisclosed;iftherearechangesinrecordingcurrency,relevantreasonsshallbedisclosed.
?Applicable□NotapplicableTheoperatingplacesoftheCompany'ssubsidiarieswereHongKong,Burma,America,Vietnam,SingaporeandCambodia,andtherecordingcurrencywasHKDforHongKongandUSDforotheroverseascompanies.
64.Leases
(1)TheCompanyWasLessee:
?Applicable□NotapplicableVariableleasepaymentsthatarenotcoveredinthemeasurementoftheleaseliabilities
□Applicable?NotapplicableSimplifiedshort-termleaseorleaseexpenseforlow-valueassets?Applicable□Notapplicable
| Item | Amountforthecurrentperiod |
| Expenserelatingtoshort-termleases | 99,113.33 |
| Low-valueleaseexpenses | |
| Variableleasepaymentsthatarenotcoveredinthemeasurementoftheleaseliabilities | |
| Total | 99,113.33 |
(2)TheCompanyWasLessor:
OperatingleaseswiththeCompanyaslessor?Applicable□Notapplicable
Unit:RMB
| Item | Rentalincome | Ofwhich:Incomerelatedtovariableleasepaymentsnotincludedinleasereceipts |
| Rentalincome | 1,677,429.22 | 0.00 |
| Total | 1,677,429.22 | 0.00 |
FinanceleaseswiththeCompanyaslessor
□Applicable?NotapplicableUndiscountedleasereceiptsforeachofthenextfiveyears?Applicable□Notapplicable
Unit:RMB
| Item | Undiscountedleasereceiptsperyear | |
| Investmentsattheendoftheperiod | Investmentsatthebeginningoftheperiod | |
| Thefirstyear | 1,419,202.00 | 1,215,336.80 |
| Thesecondyear | 510,993.00 | 310,390.00 |
| Thethirdyear | 15,254.40 |
(3)RecognitionofGainorLossonSalesunderFinanceLeaseswiththeCompanyasaManufacturerorDistributor
□Applicable?Notapplicable
VIII.ResearchandDevelopmentExpenditure
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepreviousperiod |
| Laborcost | 63,810,510.13 | 74,856,472.66 |
| Materialexpense | 32,672,913.93 | 36,990,187.47 |
| Depreciationcharge | 9,704,000.88 | 8,755,526.54 |
| Others | 9,187,172.25 | 10,687,845.37 |
| Total | 115,374,597.19 | 131,290,032.04 |
| Ofwhich:Expensedresearchanddevelopmentexpenditure | 115,374,597.19 | 131,290,032.04 |
IX.ChangeofConsolidationScope
1.DisposalofSubsidiaryWhethertherewereanytransactionsoreventsduringtheperiodinwhichcontrolofthesubsidiarywaslost
□Yes?NoWhethertherewasastep-by-stepdisposalofinvestmentinasubsidiarythroughmultipletransactionsandlossofcontrolduringthecurrentperiod
□Yes?No
2.Otherreasonsforchangesofconsolidationscope
Notesofotherchangesinthecombinationscope(e.g.,newsubsidiaries,liquidationofsubsidiaries,etc.)andrelevantsituations:
TherewerenochangesintheconsolidationscopeoftheCompanyduringtheReportingPeriod.
X.EquityinOtherEntities
1.EquityinSubsidiary
(1)CompositionsoftheGroup
Unit:RMB
| Name | Registeredcapital | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | ||||||
| LuThai(HongKong)Textile | 128,771,800.00 | Hong | Hong | Wholesaleand | 100.00% | Set-up | |
| Co.,Ltd.(hereinafterreferredtoas"LuThai(HK)") | Kong | Kong | retailindustry | ||||
| ShanghaiLuThaiTextileGarmentCo.,Ltd.(hereinafterreferredtoas"ShanghaiLuThai") | 20,000,000.00 | Shanghai | Shanghai | Wholesaleandretailindustry | 100.00% | Set-up | |
| LuFengCompanyLimited(hereinafterreferredtoas"LuFengCompany") | 706,160,000.00 | Zibo | Zibo | Manufacturingindustry | 75.00% | Set-up | |
| ZiboLuqunTextileCo.,Ltd.(hereinafterreferredtoas"LuqunTextile") | 168,220,000.00 | Zibo | Zibo | Manufacturingindustry | 100.00% | Set-up | |
| ZiboXinshengThermalPowerCo.,Ltd.(hereinafterreferredtoas"XinshengThermalPower") | 162,435,600.00 | Zibo | Zibo | Manufacturingindustry | 100.00% | Businesscombinationnotunderthesamecontrol | |
| ShanghaiZhinuoTextileNewMaterialsCo.,Ltd.(hereinafterreferredtoas"ShanghaiZhinuo") | 100,000,000.00 | Shanghai | Shanghai | Technologydevelopment,technicalconsultancyandtransferoftechnologies | 100.00% | Set-up | |
| ShandongLulianNewMaterialsCo.,Ltd.(hereinafterreferredtoas"LulianNewMaterials") | 400,000,000.00 | Zibo | Zibo | Manufacturingindustry | 75.00% | Set-up | |
| ShandongLujiaIMP.&EXP.Co.,Ltd.(hereinafterreferredtoas"LujiaIMP.&EXP.") | 10,000,000.00 | Zibo | Zibo | Importandexporttrade | 100.00% | Set-up | |
| BeijingZhishuManagementConsultingCo.,Ltd.(hereinafterreferredtoas"ZhishuConsulting") | 3,000,000.00 | Beijing | Beijing | Managementconsulting | 100.00% | Set-up | |
| LuThaiOccupationalTrainingSchool | 100,000.00 | Zibo | Zibo | Skilltraining | 100.00% | Set-up | |
| ZiboBanyangVillaHotelCo.,Ltd.(hereinafterreferredtoas"BanyangVilla") | 5,000,000.00 | Zibo | Zibo | Cateringservices | 100.00% | Set-up | |
| HainanHuilinInternationalHoldingsCo.,Ltd.("HuilinInternational") | 880,000,000.00 | Wenchang | Wenchang | Modernserviceindustry | 100.00% | Set-up | |
| TPCompany | 398,203,876.00 | Singapore | Singapore | Wholesaletextilesandleather,holdingcompany | 100.00% | Set-up | |
| VanguardApparelCo.,Ltd.(hereinafterreferredtoas"VanguardApparel") | 62,337,887.93 | Burma | Burma | Manufacturingindustry | 100.00% | Set-up | |
| LuThai(USA)TextileCo.,Ltd.(hereinafterreferredtoas"LuThai(USA)") | 6,139,710.00 | America | America | Wholesaleandretailindustry | 100.00% | Set-up | |
| YuanhuiDividendNo.2PrivateSecuritiesInvestmentFund("YuanhuiFund") | 100.00% | Subscribe |
Basisofcontrollingsignificantstructuralentitiesincorporatedinthescopeofcombination:
ThestructuralentityincorporatedinthescopeofconsolidationoftheGroupisYuanhuiDividendNo.2PrivateSecuritiesInvestmentFund.TheGroupassessesitsshareofinvestmentholdings,thepoweritenjoysandvariablereturnscomprehensivelyandincludesthestructuralentitythattheCompanyhascontrolpowerintotheconsolidationscope.
(2)Significantnon-wholly-ownedsubsidiary
Unit:RMB
| Name | Shareholdingproportionofnon-controllinginterests | Theprofitorlossattributabletothenon-controllinginterests | Declaringdividendsdistributedtonon-controllinginterests | Balanceofnon-controllinginterestsattheperiod-end |
| LufengCompanyLimited | 25.00% | 10,448,552.82 | 371,359,873.15 | |
| LulianNewMaterials | 25.00% | -5,973,275.73 | 19,776,495.84 |
(3)Themainfinancialinformationofsignificantnotwholly-ownedsubsidiary
Unit:RMB
| Name | Endingbalance | Beginningbalance | ||||||||||
| Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliability | Totalliabilities | Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliability | Totalliabilities | |
| LufengCompanyLimited | 1,002,124,043.58 | 634,549,037.14 | 1,636,673,080.72 | 91,752,027.31 | 52,426,432.22 | 144,178,459.53 | 925,170,025.16 | 666,351,350.97 | 1,591,521,376.13 | 89,644,274.83 | 53,272,778.47 | 142,917,053.30 |
| LulianNewMaterials | 97,975,733.63 | 555,504,179.63 | 653,479,913.26 | 571,330,312.81 | 3,073,837.69 | 574,404,150.50 | 83,522,389.78 | 568,103,983.74 | 651,626,373.52 | 545,641,487.47 | 3,082,529.50 | 548,724,016.97 |
Unit:RMB
| Name | Reportingperiod | Sameperiodoflastyear | ||||||
| Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | |
| LufengCompanyLimited | 642,748,692.32 | 43,872,724.61 | 43,890,298.36 | 131,109,720.07 | 630,672,258.24 | 6,009,887.37 | 5,998,315.24 | 111,673,719.55 |
| LulianNewMaterials | 54,051,010.62 | -23,833,476.77 | -23,826,593.79 | -5,114,273.60 | 59,510,967.89 | -57,542,354.11 | -57,542,354.11 | -50,620,961.20 |
2.Equityinjointventuresorassociatedenterprises
(1)Significantjointventuresorassociatedenterprises
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Accountingtreatmentoftheinvestmenttojointventureorassociatedenterprise | |
| Directly | Indirectly | |||||
| I.Jointventures | ||||||
| II.Associatedenterprises | ||||||
| HaohongInvestment | Ningbo | Ningbo | Equityinvestment | 33.33% | Equitymethod | |
| HaoyingInvestment | Ningbo | Ningbo | Equityinvestment | 47.62% | Equitymethod |
(2)Mainfinancialinformationofsignificantassociatedenterprises
Unit:RMB
| Endingbalance/reportingperiod | Beginningbalance/thesameperiodoflastyear | |||
| HaohongInvestment | HaoyingInvestment | HaohongInvestment | HaoyingInvestment | |
| Currentassets | 4,483,167.29 | 1,804,930.34 | 7,472,853.32 | 3,415,493.18 |
| Non-currentassets | 171,240,419.76 | 206,920,000.00 | 140,550,000.00 | 206,920,000.00 |
| Totalassets | 175,723,587.05 | 208,724,930.34 | 148,022,853.32 | 210,335,493.18 |
| Currentliabilities | 3,253,866.05 | 3,253,866.05 | ||
| Non-currentliability | ||||
| Totalliabilities | 3,253,866.05 | 3,253,866.05 | ||
| Netassets | 172,469,721.00 | 208,724,930.34 | 144,768,987.27 | 210,335,493.18 |
| Equityofnon-controllinginterests | ||||
| EquityattributabletoshareholdersoftheCompanyastheparent | 172,469,721.00 | 208,724,930.34 | 144,768,987.27 | 210,335,493.18 |
| Netassetssharescalculatedattheshareholdingproportion | 57,490,354.26 | 99,394,811.83 | 48,257,699.71 | 100,161,761.85 |
| Adjusteditems | ||||
| -Goodwill | ||||
| -Unrealizedprofitofinternaltransactions | ||||
| -Others | -4,728,591.79 | -4,881,981.79 | ||
| Carryingvalueofinvestmenttoassociatedenterprises | 57,490,354.26 | 94,666,220.04 | 48,257,699.71 | 95,279,780.06 |
| Fairvalueofequityinvestmentsinassociatedenterpriseswithpubliclyquotedprices | ||||
| OperatingRevenue | ||||
| Netprofit | 27,700,733.73 | -1,610,562.84 | -1,053,910.87 | -2,577,384.40 |
| Netprofitfromdiscontinuedoperations | ||||
| Othercomprehensiveincome | ||||
| Totalcomprehensiveincome | 27,700,733.73 | -1,610,562.84 | -1,053,910.87 | -2,577,384.40 |
| Dividendsreceivedfromtheassociatesinthecurrentperiod | ||||
XI.GovernmentGrants
1.GovernmentGrantsRecognizedattheEndoftheReportingPeriodattheAmountReceivable
□Applicable?NotapplicableReasonsforfailingtoreceivegovernmentgrantsintheestimatedamountattheestimatedpointintime
□Applicable?Notapplicable
2.LiabilityItemsInvolvingGovernmentGrants
□Applicable?Notapplicable
3.GovernmentGrantsIncludedinDeferredIncome?Applicable□Notapplicable
Unit:RMB
| Accountingitems | Amountforthecurrentperiod | Amountforthepreviousperiod |
| Otherincome | 14,929,113.83 | 27,724,922.40 |
| Financecosts | 84,024.92 | 83,416.67 |
XII.RisksAssociatedwithFinancialInstruments
1.VariousTypesofRisksArisingfromFinancialInstrumentsTheCompany'smajorfinancialinstrumentsincludemonetarycapital,notesreceivable,accountsreceivable,accountsreceivablefinancing,otherreceivables,othercurrentassets,tradingfinancialassets,investmentindebtobligations,othernon-currentfinancialassets,long-termreceivables,notespayable,accountspayable,otherpayables,short-termborrowings,currentportionofnon-currentliabilities,long-termborrowings,bondspayable,andleaseliabilities.DetailsofvariousfinancialinstrumentsaredisclosedinrelevantNotes.Risksrelatedtothesefinancialinstruments,andriskmanagementpoliciestheCompanyhasadoptedtoreducetheserisksaredescribedasfollows.TheCompanymanagementmanagesandmonitorstheriskexposuretoensuretheaboverisksarecontrolledinalimitedscope.
1.RiskmanagementobjectivesandpoliciesTheCompanyhasconductedtheriskmanagementtoachieveanappropriatebalancebetweentheriskandtheincomeandtominimizetheadverseinfluenceoffinancialrisksontheCompany’sfinancialperformance.Accordingtosuchriskmanagementobjective,theCompanyhasformulatedcorrespondingriskmanagementpolicytorecognizeandanalyzepossiblerisksencounteredbytheCompany,settheappropriateacceptablerisklevelanddesignedcorrespondinginternalcontrolprocedurestomonitortheCompany’srisklevel.Meanwhile,theCompanywillregularlyreviewtheseriskmanagementpoliciesandrelevantinternalcontrolsystemsoastocaterforthemarketorrespondtoanychangeintheCompany’sbusinessoperations.Accordingly,theCompany’sinternalauditdepartmentwillalsoregularlyorrandomlycheckwhethertheinternalcontrolsystemisimplementedinconformitywithrelevantriskmanagementpolicies.ThemajorriskscausedbyfinancialinstrumentsoftheCompanyarecreditrisk,liquidityriskandmarketrisk(includingforeignexchangeriskandinterestraterisk).TheBoardofDirectorsshallberesponsibleforplanningandestablishingtheriskmanagementframeworkfortheCompany,determiningtheCompany’sriskmanagementpoliciesandrelevantguidelinesandmonitoringtheimplementationofvariousriskmanagementmeasures.However,theCompanyhasestablishedcorrespondingriskmanagementpoliciestorecognizeandanalyzepossiblerisksencounteredbytheCompany.Besides,variousrisksarespecifiedintheseriskmanagementpolicies,includingthecreditrisk,theliquidityriskandthemarketriskmanagementetc.Onaregularbasis,theCompanywillevaluatethespecificmarketingenvironmentandvariouschangesintheCompany’sbusinessoperationssoastodeterminewhetheranyriskmanagementpolicyandsystemneedbeupdated.
(1)Creditrisk
CreditRiskmeansthattheCompanywillsufferanyfinanciallossesduetothecounterparty’sfailureinfulfillingthecontractobligations.TheCompanyshallmanagethecreditriskbasedonthespecificGroupClassification,andthecreditriskmainlyarisesfrombankdeposit,notesreceivable,accountsreceivable,otherreceivablesandlong-termreceivablesetc.TheGroup’sbankdepositsaremainlysavedinstate-ownedbanksandotherlargeandmedium-sizedlistedbanks.TheGroup’sbankdepositsareexpectednottosufferanymajorcreditrisks.Fornotesreceivable,accountsreceivable,otheraccountsreceivableandlong-termreceivables,theCompanyhasestablishedrelevantpoliciestocontrolthecreditriskexposure.Accordingtotheclient’sfinancialstatus,creditrecordandotherfactors(includingthecurrentmarketcondition),theCompanywillevaluatetheclient’screditqualificationandsetcorrespondingcreditperiod.TheCompanyregularlymonitorsthecreditrecordsofcustomers.Forcustomerswithbadcreditrecords,theCompanyadoptedcorrespondingmethods,suchaswrittenpressingforpayment,shorteningcreditperiod,andcancelingcreditperiod,soastoensuretheCompany'soverallcreditriskiscontrollable.ThehugestcreditriskexposurebornebytheCompanyisthebookvalueofeachfinancialassetreflectedinthebalancesheet.Intermsofaccountsreceivable,thetop5customersinaccountsreceivablewereaccountedfor27.87%ofthetotalamountofaccountsreceivableoftheCompany(24.80%in2023).Asforotherreceivables,thetop5oftheendingbalanceaccordingtothearrearspartywasaccountedfor61.40%ofthetotalamountofotherreceivablesoftheCompany(69.38%in2023).InvestmentindebtobligationsTheGroupsupervisedthechangesofcreditriskthroughtrackingthepublishedexternalcreditratings.Inordertomakesurewhetherthecreditratingwasthelatest,andwhetherthecreditriskhasincreasedobviouslyofevaluationreportdatebutnotbeenreflectedinthepublishedexternalratings,theCompanyhassupplementedthroughexaminingthechangesofbondyieldandtheavailablenewsandsupervisioninformation.Onthebalancesheetdate,thecarryingvalueofinvestmentindebtobligationsoftheCompanyarelistedasfollowsaccordingtoreportitems.(Unit:RMB’0,000)
| 2024.6.30 | 2023.12.31 | |
| TradingFinancialAssets | 30,343.25 | 20,370.67 |
| Total | 30,343.25 | 20,370.67 |
(2)LiquidityriskLiquidityRiskreferstotheriskofcapitalshortageencounteredbytheCompanyduringthecashpaymentorthesettlementofotherfinancialassets.Duringthemanagementofliquidityrisk,theCompanyshallreserveandmonitorcorrespondingcashandcashequivalentdeemedsufficientbythemanagementsoastomeettheCompany’soperationalrequirementsandmitigatetheimpactcausedbythecashflowfluctuation.TheGroup’smanagementwillmonitortheuseofbankloansandguaranteethefulfillmentofloanagreement.
Meanwhile,majorfinancialinstitutionsshallpromisetoprovidetheGroupwithsufficientreservefundsinordertosatisfytheshort-termandlong-termfunddemand.TheGroupshallraiseitsworkingcapitalbasedonthecapitalgeneratedfrombusinessoperationsandbankloans.
(3)MarketriskThefinancialinstrument’smarketriskreferstothefluctuationriskoffairvalueoffinancialinstrumentorfuturecashflowcausedbythechangesofmarketprice,includingtheinterestrateriskandtheexchangeraterisk.InterestrateriskInterestrateriskreferstotheriskoffluctuationsinthefairvalueorfuturecashflowsoffinancialinstrumentsarisingfromchangesinmarketinterestrates.Theinterestratecanderivefromtherecognizedinterest-bearingfinancialinstrumentsandunrecognizedfinancialinstruments(includingcertainloancommitment).TheCompany’sinterestrateriskmainlyarisesfromthebankloanandbondspayable.FinancialliabilitiesbasedonthefloatinginterestratewillcausethecashflowinterestraterisktotheCompany,andfinancialliabilitiesbasedonthefixedinterestratethefairvalueinterestraterisk.However,theCompanyhaspaidcloseattentiontheimpactofinterestratefluctuationsontheCompany’sinterestraterisk.Atpresent,theCompanyhasnottakenanyinterestratehedgingmeasures.Theriseofinterestratewillincreasethecostofnewly-addedinterest-bearingdebtsandtheinterestcostoftheCompany’sunsettledinterest-bearingdebtsbasedonthefloatinginterestrate,andcausemajoradverseinfluenceontheCompany’sfinancialperformance.Themanagementwilltimelymakecorrespondingadjustmentaccordingtothelatestmarketsituation,andcorrespondinginterestrateswapwillbearrangedtoreducetheinterestraterisk.Theinterest-bearingfinancialinstrumentsheldbytheCompanyareasfollows(Unit:RMB’0,000):
| Item | 30June2024 | 31December2023 |
| Fixed-interestfinancialinstruments | ||
| Including:short-termborrowings | 54,830.44 | 46,535.28 |
| Currentportionoflong-termborrowings | 882.64 | 230.00 |
| Long-termborrowings | 10,623.36 | 6,174.19 |
| BondsPayable | 148,217.23 | 147,657.21 |
| Total | 214,553.67 | 200,596.68 |
| Floating-interestfinancialinstruments | ||
| Financialassets | 30,343.25 | 20,370.67 |
| Including:tradingfinancialassets | 30,343.25 | 20,370.67 |
| Financialliabilities | 65,681.26 | 40,023.31 |
| Including:short-termborrowings | 4,981.26 | 11,535.20 |
| Currentportionoflong-termborrowings | 750.00 | 8,663.00 |
| Long-termborrowings | 59,950.00 | 19,825.11 |
| Total | 96,024.51 | 60,393.98 |
On30June2024,ifthelendingratecalculatedatfloatinginterestrateupordown100basispointswithothervariablesunchanged,
thenetprofitandshareholders’equitywillbedecreasedorincreasedaboutRMB5,657,600.On30June2024,ifthefloatinginterestrateofheld-for-tradingfinancialassetsupordown100basispointswithothervariablesunchanged,thenetprofitandshareholders’equitywillbedecreasedorincreasedaboutRMB2,579,200.ForeignexchangeriskForeignexchangeriskisreferredtothefluctuationriskoffairvalueoffinancialinstrumentsorfuturecashflowsresultedfromthechangeofforeignexchangerate.Theforeignexchangeratewasoriginatedfromthefinancialinstrumentsdenominatedinforeigncurrenciesotherthantherecordingcurrency.On30June2024,theamountofforeigncurrencyfinancialassetsandforeigncurrencyfinancialliabilitiesconvertedtorenminbiisasfollows(Unit:RMB’0,000):
| Item | Foreigncurrencyliabilities | Foreigncurrencyassets | ||
| Period-end | Period-begin | Period-end | Period-begin | |
| USD | 61,479.29 | 61,952.45 | 133,300.25 | 121,933.38 |
| EUR | 54.15 | 154.36 | 328.69 | 386.82 |
| JPY | 107.06 | 248.23 | 39.32 | 123.83 |
| HKD | 52.12 | 2,124.70 | ||
| GBP | 0.05 | 0.05 | ||
| CHF | 3.50 | 0.01 | ||
| Dong | 3,025.56 | 5,439.51 | 3,293.02 | 6,351.53 |
| MMK | 8.97 | 22.97 | 764.10 | 292.27 |
| Riel | 117.34 | 13.27 | ||
| Total | 64,678.53 | 67,817.52 | 137,894.89 | 131,225.86 |
TheGrouphaspaidcloseattentiontheimpactofexchangeratefluctuationsontheGroup’sexchangeraterisk.Asattheendofeachreportingperiod,fortheGroup'smonetarycapital,billsreceivable,accountsreceivable,accountspayable,short-termborrowingsandlong-termborrowingsdenominatedinforeigncurrencies,assuminga10%appreciationordepreciationofRMBagainstforeigncurrencies,whileotherfactorsremainunchanged,theimpactofpossiblereasonablechangesintheCompany'sforeigncurrencyexchangerateagainstRMBontheCompany'sprofitandlossforthecurrentperiodisasfollows(Unit:
RMB’0,000):
| Exchangeratefluctuations | ReportingPeriod | Thesameperiodoflastyear | ||
| Impactonafter-taxprofit | Impactonshareholders'equity | Impactonafter-taxprofit | Impactonshareholders'equity | |
| 10%appreciationagainstRMB | -5,706.30 | -5,706.30 | -4,202.10 | -4,202.10 |
| 10%depreciationagainstRMB | 5,706.30 | 5,706.30 | 4,202.10 | 4,202.10 |
2.CapitalmanagementTheobjectivesofcapitalmanagementpoliciesoftheCompanyaretoensurethecontinuousoperationoftheCompanysoastoprovidereturntoshareholdersandbenefitotherstakeholders,aswellastoreducecapitalcostbymaintainingtheoptimalcapitalstructure.Inordertomaintainoradjustcapitalstructure,theCompanymightadjustfinancingmethodandthedividendspaidtoshareholders,
returncapitaltoshareholders,issuenewsharesandotherequityinstrumentorsellassetstoreducedebts.TheGroupsupervisedthecapitalstructurebasedontheasset-liabilityratio(namelytotalliabilitiesdividetotalassets).On30June2024,theasset-liabilityratiowas29.58%oftheCompany(28.39%on31December2023).XIII.DisclosureofFairValue
1.EndingFairValueofAssetsandLiabilitiesatFairValue
Unit:RMB
| Item | Closingfairvalue | |||
| Fairvaluemeasurementitemsatlevel1 | Fairvaluemeasurementitemsatlevel2 | Fairvaluemeasurementitemsatlevel3 | Total | |
| I.Consistentfairvaluemeasurement | -- | -- | -- | -- |
| (I)Held-for-tradingfinancialassets | 169,269,048.00 | 572,341,759.34 | 741,610,807.34 | |
| 1.Financialassetsatfairvaluethroughprofitorloss | 169,269,048.00 | 572,341,759.34 | 741,610,807.34 | |
| (1)Investmentindebtinstruments | 303,432,546.27 | 303,432,546.27 | ||
| (2)Equityinvestments | 169,269,048.00 | 267,608,462.83 | 436,877,510.83 | |
| (3)Derivativefinancialassets | 1,300,750.24 | 1,300,750.24 | ||
| (VI)Accountsreceivablefinancing | 6,922,213.41 | 6,922,213.41 | ||
| (VII)Othernon-currentfinancialassets | 88,750,000.00 | 88,750,000.00 | ||
| Thetotalamountofassetsconsistentlymeasuredatfairvalue | 169,269,048.00 | 572,341,759.34 | 95,672,213.41 | 837,283,020.75 |
| (VI)Held-for-tradingfinancialliabilities | 80,716,835.26 | 80,716,835.26 | ||
| Derivativefinancialliabilities | 80,716,835.26 | 80,716,835.26 | ||
| Thetotalamountofliabilitiesconsistentlymeasuredatfairvalue | 80,716,835.26 | 80,716,835.26 | ||
| Derivativefinancialliabilities | -- | -- | -- | -- |
2.MarketPriceRecognitionBasisforConsistentandInconsistentFairValueMeasurementItemsatLevel1TheCompanydeterminesthefairvalueofsharesoflistedcompaniesbasedonthepriceontheopenmarket.
3.Valuationtechniqueadoptedandnatureandamountdeterminationofimportantparametersforconsistentandinconsistentfairvaluemeasurementitemsatlevel2TheCompanydeterminesthefairvalueofwealthmanagementproductsbasedontheprospectiveearningrateasagreedinthecontract.TheCompanydeterminesthefairvalueoffundproductsbasedonthenetvaluepublishedbyfundmanagers.TheCompanydeterminesthefairvalueofforwardoptionsbasedonbankforwardforeignexchangequotationsattheendoftheperiod.
4.Valuationtechniqueadoptedandnatureandamountdeterminationofimportantparametersforconsistentandinconsistentfairvaluemeasurementitemsatlevel3
Fortheunlistedequityinvestment,theCompanyadoptsthecomparablelistedcompanycomparisonmethod,andthenon-observableinputvalueofthecomparablelistedcompanycomparisonmethodincludestheliquiditydiscount.TheinvestmentintoShandongHongqiaoThermoelectricCo.,Ltd.madebyLuqunTextile(theCompany’ssubsidiary)isexpectedtobeheldinthelongrunforobtainingthediscountonpowerpurchase.Asnorevenuedistributionrightisvestedintheinvestment,theinvestedunit’soperatingprofitandlossarenotsharedorborne,andtheequitytransferisnotproposed,theCompanyregardsitasthefinancialassetwhichshallbemeasuredbasedonthefairvalueandwhosevariationsareincludedinthecurrentprofitandloss,andtheinvestmentcostisdeemedasthefairvalueofthefinancialasset.Foraccountsreceivablesfinancingatfairvalueandthechangesincludedinothercomprehensiveincome,itsfairvalueshallbedeterminedbythediscountcashflowmethod.
5.FairValueofFinancialAssetsandLiabilitiesNotMeasuredatFairValue
Thefinancialassetsandfinancialliabilitiesmeasuredatamortizedcostmainlyincludemonetaryassets,notesreceivable,accountsreceivable,otherreceivables,short-termborrowings,notespayable,accountspayables,otherpayables,currentportionoflong-termborrowings,long-termborrowings,andbondspayable.XIV.RelatedPartyandRelated-partyTransactions
1.InformationrelatedtothecompanyastheparentoftheCompany
| Name | Registrationplace | Natureofbusiness | Registeredcapital | Proportionofshareheldbythecompanyastheparentagainstthecompany(%) | Proportionofvotingrightsownedbythecompanyastheparentagainstthecompany(%) |
| LuchengTextile | Zibo | Textile,chemistryandinvestment | RMB63,260,000 | 17.17% | 17.17% |
Notes:informationontheCompanyastheparentThefinalcontrollersoftheCompanyareMr.LiuZibinandMr.LiuDeming.
2.SubsidiariesoftheCompanyRefertoNoteX-1.
3.InformationonthejointventuresandassociatedenterprisesoftheCompany
RefertoNoteX-2.
4.Informationonotherrelatedparties
| Name | Relationshipwiththecompany |
| ZiboLiminPurifiedWaterCo.,Ltd.(hereinafterreferredtoas"LiminPurifiedWater") | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| ZiboLuqunLandCo.,Ltd(hereinafterreferredtoas"LuqunLand") | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| ZiboLuruiFineChemicalCo.,Ltd.(hereinafterreferredtoas"LuruiChemical") | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| ZiboLujiaPropertyManagementCo.,Ltd.(hereinafterreferredtoas"LujiaProperty") | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| HongKongTungHoiInternationalCompanyLimited(hereinafterreferredtoas"TungHoiInternational") | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| ZiboChengshunHosieryCo.,Ltd.(hereinafterreferredtoas"ChengshunHosiery") | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| ZiboChengshunEconomicandTradeCo.,Ltd.(hereinafterreferredtoas"ChengshunEconomicandTrade") | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| ChengshunPetrochemical(Zhoushan)Co.,Ltd.(hereinafterreferredtoas"ChengshunPetrochemical") | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| ZiboLuchengPetrochemicalSalesCo.,Ltd.(hereinafterreferredtoas"LuchengPetrochemical") | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| ShanghaiHengjiuTextileNewMaterialsCo.,Ltd.(hereinafterreferredtoas"HengjiuTextile") | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| ShandongXiruiNewMaterialCo.,Ltd.(hereinafterreferredtoas"XiruiNewMaterial") | Wholly-ownedsubsidiaryoftheparentcompany'swholly-ownedsubsidiary |
| ZiboLumeiEconomicandTradeCo.,Ltd.(hereinafterreferredtoas"LumeiEconomicandTrade") | Wholly-ownedsubsidiaryoftheCompanyastheparent |
5.Listofrelated-partytransactions
(1)InformationonacquisitionofgoodsandreceptionoflaborserviceInformationonacquisitionofgoodsandreceptionoflaborservice
Unit:RMB
| Relatedparty | Content | Reportingperiod | Theapprovaltradecredit | Whetherexceedtradecreditornot | Sameperiodoflastyear |
| LiminPurifiedWater | Recycledwater,sewagetreatment | 12,481,784.67 | 18,960,000.00 | Not | 13,016,170.41 |
| LuruiFineChemical | Auxiliaries | 32,529,628.10 | 40,150,000.00 | Not | 30,532,002.97 |
| TungHoiInternational | Auxiliaries | 18,168,676.77 | 22,500,000.00 | Not | 18,138,767.89 |
| ChengshunHosieryandLuqunProperty | Papercore,hosiery,purchaseofmaterialssuchashose,electrical,etc. | 4,153,331.37 | 5,633,333.33 | Not | 3,511,793.11 |
| ChengshunEconomicandTrade | Supermarketretail | 339,217.59 | 1,880,000.00 | Not | 781,733.59 |
| LuchengPetrochemicalPetrochemical | Oil | 2,080,671.55 | 3,827,333.33 | Not | 1,997,076.22 |
| ChengshunPetrochemical | Oil,naturalgas | 23,800,279.70 | 36,625,000.00 | Not | 25,248,021.93 |
Informationofsalesofgoodsandprovisionoflaborservice
Unit:RMB
| Relatedparty | Content | Reportingperiod | Sameperiodoflastyear |
| ChengshunHosiery | Yarn,yarn-dyedfabric,etc. | 246,017.94 | 211,763.04 |
| ChengshunHosiery | Materials,electricity,runningwater,heating,steam | 122,866.93 | 128,111.06 |
| ChengshunTrading | Materials,electricity,runningwater,yarn,garments,food,heating,steam | 246,399.80 | 61,083.89 |
| LuchengPetrochemical | Materials,electricity | 6,695.10 | 6,733.58 |
| LiminPurifiedWater | Materials,electricity,garments,mealserviceinclasses,foods | 3,983,115.40 | 2,764,696.42 |
| LuruiFineChemical | Garments,fabrics,foods | 157,715.38 | 153,643.21 |
| LujiaProperty | Materials,garments | 18,563.66 | 17,773.07 |
| XiruiNewMaterials | Cateringandaccommodationservice | 13,441.51 | 9,917.94 |
| XiruiNewMaterials | Materials,garments,etc. | 16,635.31 | 54,623.19 |
| LuqunProperty | Materials,garments | 365,076.11 | |
| LumeiEconomicandTrade | Garments | 63.72 |
(2)Informationonrelated-partylease
TheCompanywaslessor:
Unit:RMB
| Nameoflessee | Categoryofleasedassets | Theleaseincomeconfirmedinthecurrentperiod | Theleaseincomeconfirmedinthesameperiodoflastyear |
| ChengshunEconomicandTrade | Rentofhousesandbuildings | 40,950.67 | 36,108.00 |
| ChengshunHosiery | Rentofhousesandbuildings | 8,400.00 | 8,400.00 |
TheCompanywaslessee:
Unit:RMB
| Nameoflessor | Categoryofleasedassets | Rentalexpenseofsimplifiedshort-termleasesandlow-valueassetleases(ifapplicable) | Variableleasepaymentsthatarenotcoveredinthemeasurementoftheleaseliabilities(ifapplicable) | Rentpayable | Interestexpenseonleaseliabilitiesborne | Addedright-of-useassets | |||||
| Amountofthecurrentperiod | Amountofthepreviousperiod | Amountofthecurrentperiod | Amountofthepreviousperiod | Amountofthecurrentperiod | Amountofthepreviousperiod | Amountofthecurrentperiod | Amountofthepreviousperiod | Amountofthecurrentperiod | Amountofthepreviousperiod | ||
| LuchengTextile | Rentofland | 1,807,428.60 | 1,807,428.60 | 502,383.97 | 561,567.29 | ||||||
| LuchengTextile | Rentofgasstation | 116,571.42 | 116,571.42 | 50,622.80 | 53,613.54 | ||||||
| LuchengTextile | Rentofbuildings | 5,511,114.30 | 5,511,114.30 | 1,012,510.71 | 962,595.71 | ||||||
| LuqunProperty | Rentoflandandbuildings | 985,714.26 | 985,714.26 | 549,099.27 | 568,899.59 | ||||||
6.Accountsreceivableandpayableofrelatedparty
(1)Accountspayable
Unit:RMB
| Item | Relatedparty | Endingcarryingamount | Beginningcarryingamount |
| Accountspayable | LuruiFineChemical | 398,433.04 | |
| Accountspayable | TungHoiInternational | 110,347.81 | 5,597,739.70 |
XV.StockPayment
1.Theoverallsituationofshare-basedpayments?Applicable□Notapplicable
Unit:RMB
| Categoryofgrantrecipients | Awardedinthecurrentperiod | Optionexerciseinthecurrentperiod | Unlockedinthecurrentperiod | Lapsedinthecurrentperiod | ||||
| Number | Amount | Number | Amount | Number | Amount | Number | Amount | |
| Management,coretechnicalandbusinessbackbone | 9,803,000 | 9,803,000.00 | 66,500 | 66,500.00 | ||||
| Total | 9,803,000 | 9,803,000.00 | 66,500 | 66,500.00 | ||||
Stockoptionsorotherequityinstrumentsoutstandingattheendoftheperiod
□Applicable?Notapplicable
2.Equity-settledshare-basedpayments?Applicable□Notapplicable
Unit:RMB
| Methodsfordeterminingthefairvalueofequityinstrumentsonthegrantdate | Differencebetweenthemarketpriceofthestockandthegrantpriceonthegrantdate |
| Basisfordeterminingthenumberoffeasiblerightequityinstruments | Optimalestimationofexpectedfeasiblerightinthefuture |
| Reasonsforthesignificantdiscrepancybetweenthecurrentperiodestimatesandthepreviousestimates | N/A |
| Accumulatedamountofequity-settledshare-basedpaymentincludedincapitalreserves | 88,054,345.13 |
| Thetotalamountoftheexpenserecognizedforthecurrentperiodpaidonequity-settledshares | 2,994,814.61 |
3.Cash-settledshare-basedpayments
□Applicable?Notapplicable
4.Share-BasedPaymentExpensesforthePeriod
?Applicable□Notapplicable
Unit:RMB
| Categoryofgrantrecipients | Equity-settledshare-basedpayments | Cash-settledshare-basedpayments |
| Management,coretechnicalandbusinessbackbone | 2,994,814.61 | 0.00 |
| Total | 2,994,814.61 | 0.00 |
XVI.CommitmentsandContingency
1.SignificantCommitments
Significantcommitmentsonbalancesheetdate
| Commitmentssignedbuthasn’tbeenrecognizedinfinancialstatements | Endingbalance(RMB’0,000) | Beginningbalance(RMB’0,000) |
| Commitmentonconstructingandpurchasinglong-livedassets | 12,157.12 | 5,147.75 |
2.Contingency
(1)SignificantContingencyonBalanceSheetDate
Asat30June2024,theCompanyprovidedguaranteetoloansofthefollowingsubsidiaries:
| Name | Item | Amount(USD) | Amount(RMB) | Duration | Notes |
| Wholly-ownedSubsidiaries | Short-termloan | 1,309,320.00 | 9,331,261.79 | 2023.9.8-2024.9.4 | |
| Wholly-ownedSubsidiaries | Short-termloan | 1,711,480.00 | 12,197,375.66 | 2023.9.15-2024.9.9 | |
| Wholly-ownedSubsidiaries | Short-termloan | 170,429.00 | 1,214,613.40 | 2023.9.29-2024.9.23 | |
| Wholly-ownedSubsidiaries | Short-termloan | 320,733.00 | 2,285,799.94 | 2023.10.5-2024.9.30 | |
| Wholly-ownedSubsidiaries | Short-termloan | 102,204.85 | 728,393.52 | 2023.10.5-2024.9.30 | |
| Wholly-ownedSubsidiaries | Short-termloan | 122,486.00 | 872,933.22 | 2023.10.10-2024.10.4 | |
| Wholly-ownedSubsidiaries | Short-termloan | 79,513.00 | 566,673.25 | 2024.4.24-2024.10.21 | |
| Wholly-ownedSubsidiaries | Short-termloan | 2,188,363.67 | 15,596,030.20 | 2023.10.30-2024.10.24 | |
| Wholly-ownedSubsidiaries | Short-termloan | 345,131.00 | 2,459,679.61 | 2023.11.2-2024.10.28 | |
| Wholly-ownedSubsidiaries | Short-termloan | 529,342.00 | 3,772,514.57 | 2024.5.6-2024.11.2 | |
| Total | 6,879,002.52 | 49,025,275.16 |
(2)ExplanationshallbegivenevenifthereisnosignificantcontingencyfortheCompanytodisclose
TherewasnosignificantcontingencyintheCompanytodisclose.
XVII.EventsafterBalanceSheetDate
1.DistributionofProfit
| Amounttobedistributedforeverytenshares(RMB) | 1.00 |
| Dividendsharestobedistributedforeverytenshares(share) | 0 |
| Numberofsharestobeconvertedintosharecapitalforeverytenshares(share) | 0 |
| Amounttobedistributedforeverytensharesafterconsiderationandapproval(RMB) | 1.00 |
| Dividendsharestobedistributedforeverytensharesafterconsiderationandapproval(share) | 0 |
| Numberofsharestobeconvertedintosharecapitalforeverytensharesafterconsiderationandapproval(share) | 0 |
| Profitdistributionplan | On28August2024,the24thmeetingofthe10thBoardofDirectorsoftheCompanyapprovedtheprofitdistributionplanforH12024asfollows:TheCompanyplanstodistributeacashdividendofRMB1.00(inclusiveoftax)forevery10shares,basedonacapitalbaseof817,305,896shares.ThetotalamountofdividendscalculatedonthisbasisisRMB81,730,589.60.Theabovedistributionplanwillbeimplementedafteritissubmittedtothe3rdExtraordinaryGeneralMeetingof2024forconsiderationandapproval. |
2.Notestoothereventsafterbalancesheetdate
Asat28August2024,theCompanyhasnoothereventsafterbalancesheetdatethatshouldbedisclosed.
XVIII.NotesofMainItemsintheFinancialStatementsoftheCompanyastheParent
1.AccountsReceivable
(1)Disclosurebyaging
Unit:RMB
| Aging | Endingcarryingamount | Beginningcarryingamount |
| Withinoneyear(including1year) | 306,110,656.50 | 380,684,242.95 |
| Onetotwoyears | 1,427,439.39 | 2,423,615.15 |
| Twotothreeyears | 216,360.00 | 13,571.80 |
| Morethanthreeyears | 264,034.12 | 3,026,023.60 |
| Threetofouryears | 31,034.12 | 20,913.49 |
| Fourtofiveyears | 233,000.00 | 3,005,110.11 |
| Total | 308,018,490.01 | 386,147,453.50 |
(2)DisclosurebyWithdrawalMethodsforBadDebts
Unit:RMB
| Category | Endingbalance | Beginningbalance | ||||||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
| amount | Proportion | amount | Withdrawalproportion | amount | Proportion | amount | Withdrawalproportion | |||
| AccountsreceivablewithdrawalofBaddebtprovisionseparatelyaccrued | 2,823,309.36 | 0.92% | 2,823,309.36 | 100.00% | 5,481,360.70 | 1.42% | 5,481,360.70 | 100.00% | ||
| Ofwhich: | ||||||||||
| Accountsreceivablewithdrawalofbaddebtprovisionofbygroup | 305,195,180.65 | 99.08% | 21,385,685.43 | 7.01% | 283,809,495.22 | 380,666,092.80 | 98.58% | 24,182,667.21 | 6.35% | 356,483,425.59 |
| Ofwhich: | ||||||||||
| Undueaccounts(L/C) | 32,478,666.50 | 10.54% | 32,478,666.50 | 35,791,868.54 | 9.27% | 35,791,868.54 | ||||
| Undueaccounts(creditinsuranceinsured) | 31,995,381.13 | 10.39% | 335,951.50 | 1.05% | 31,659,429.63 | 23,003,716.87 | 5.96% | 241,539.03 | 1.05% | 22,762,177.84 |
| Undueaccounts(nocreditinsurance) | 184,564,647.94 | 59.92% | 9,228,232.39 | 5.00% | 175,336,415.55 | 275,912,255.37 | 71.45% | 13,795,612.77 | 5.00% | 262,116,642.60 |
| Overdueaccounts(creditinsuranc | 23,690,058.36 | 7.69% | 3,719,339.16 | 15.70% | 19,970,719.20 | 15,309,159.83 | 3.96% | 2,403,538.09 | 15.70% | 12,905,621.74 |
| einsured) | ||||||||||
| Overdueaccounts(nocreditinsurance) | 32,466,426.72 | 10.54% | 8,102,162.38 | 24.96% | 24,364,264.34 | 30,649,092.19 | 7.94% | 7,741,977.32 | 25.26% | 22,907,114.87 |
| Total | 308,018,490.01 | 100.00% | 24,208,994.79 | 7.86% | 283,809,495.22 | 386,147,453.50 | 100.00% | 29,664,027.91 | 7.68% | 356,483,425.59 |
Categorynameofbaddebtprovisionseparatelyaccrued:June2024
Unit:RMB
| Name | Beginningbalance | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | Withdrawalproportion | Reasonforwithdraw | |
| Customer1 | 2,751,489.34 | 2,751,489.34 | ||||
| Customer2 | 2,729,871.36 | 2,729,871.36 | 2,823,309.36 | 2,823,309.36 | 100.00% | Customerinfinancialdifficulty |
| Total | 5,481,360.70 | 5,481,360.70 | 2,823,309.36 | 2,823,309.36 | ||
Ifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivable.
□Applicable?Notapplicable
(3)BadDebtProvisionWithdrawal,ReversedorRecoveredintheReportingPeriod
Withdrawalofbaddebtprovision:
Unit:RMB
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |||
| Withdrawal | Reversedorrecovered | Verification | Others | |||
| Baddebtprovision | 29,664,027.91 | -2,688,749.25 | 2,766,283.87 | 24,208,994.79 | ||
| Total | 29,664,027.91 | -2,688,749.25 | 2,766,283.87 | 24,208,994.79 | ||
(4)AccountsReceivableWritten-offinCurrentPeriod
Unit:RMB
| Item | Written-offamount |
| Written-offaccountsreceivable | 2,766,283.87 |
(5)Top5oftheEndingBalanceoftheAccountsReceivableandtheContractAssetsCollectedaccordingtoArrearsParty
Unit:RMB
| Nameoftheentity | Endingbalanceofaccountsreceivable | Endingbalanceofcontractassets | Endingbalanceofaccountsreceivableandcontractassets | Proportiontototalendingbalanceofaccountsreceivableandcontractassets | Endingbalanceofbaddebtprovisionofaccountsreceivableandimpairmentprovisionforcontract |
| assets | |||||
| CustomerA | 32,856,172.54 | 32,856,172.54 | 10.67% | 1,642,808.63 | |
| CustomerB | 23,284,829.48 | 23,284,829.48 | 7.56% | 1,164,241.47 | |
| CustomerC | 13,642,340.99 | 13,642,340.99 | 4.43% | 682,117.05 | |
| CustomerD | 10,312,600.40 | 10,312,600.40 | 3.35% | 577,708.68 | |
| CustomerE | 9,961,061.08 | 9,961,061.08 | 3.23% | 68,004.83 | |
| Total | 90,057,004.49 | 90,057,004.49 | 29.24% | 4,134,880.66 |
2.OtherReceivables
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Otherreceivables | 1,886,991,725.68 | 2,064,459,414.54 |
| Total | 1,886,991,725.68 | 2,064,459,414.54 |
(1)OtherReceivables
1)Otherreceivablesclassifiedbycategory
Unit:RMB
| Nature | Endingcarryingamount | Beginningcarryingamount |
| Intercoursefunds | 1,882,234,185.39 | 2,060,091,836.09 |
| Paymentonbehalf | 6,571,563.35 | 6,736,525.76 |
| Guaranteedepositandcashdeposit | 1,954,086.48 | 1,549,661.78 |
| Borrowingsandpettycash | 1,222,193.47 | 1,533,557.54 |
| Other | 2,658,225.33 | 2,720,459.54 |
| Total | 1,894,640,254.02 | 2,072,632,040.71 |
2)Disclosurebyaging
Unit:RMB
| Aging | Endingbalance | Beginningcarryingamount |
| Withinoneyear(including1year) | 1,604,661,419.68 | 1,629,128,024.64 |
| Onetotwoyears | 31,217,690.99 | 184,755,200.00 |
| Twotothreeyears | 147,000.00 | 79,555,623.95 |
| Morethanthreeyears | 258,614,143.35 | 179,193,192.12 |
| Threetofouryears | 256,071,026.05 | 176,599,422.10 |
| Fourtofiveyears | 78,000.00 | |
| Over5years | 2,543,117.30 | 2,515,770.02 |
| Total | 1,894,640,254.02 | 2,072,632,040.71 |
3)DisclosurebyWithdrawalMethodsforBadDebts
Unit:RMB
| Category | Endingbalance | Beginningbalance | ||||||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
| Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
| Baddebtprovisionseparatelyaccrued | 163,012.05 | 0.01% | 163,012.05 | 100.00% | 0.00 | 163,012.05 | 0.01% | 163,012.05 | 100.00% | 0.00 |
| Ofwhich: | ||||||||||
| Customer1 | 163,012.05 | 0.01% | 163,012.05 | 100.00% | 0.00 | 163,012.05 | 0.01% | 163,012.05 | 100.00% | 0.00 |
| Withdrawalofbaddebtprovisionbygroup | 1,894,477,241.97 | 99.99% | 7,485,516.29 | 0.40% | 1,886,991,725.68 | 2,072,469,028.66 | 99.99% | 8,009,614.12 | 0.39% | 2,064,459,414.54 |
| Ofwhich: | ||||||||||
| Receivablesfromrelatedpartieswithinthescopeofconsolidation | 1,882,234,185.39 | 99.35% | 5,646,702.56 | 0.30% | 1,876,587,482.83 | 2,060,091,836.09 | 99.40% | 6,180,275.51 | 0.30% | 2,053,911,560.58 |
| Securitydepositandmarginreceivable | 1,953,086.48 | 0.10% | 97,654.32 | 5.00% | 1,855,432.16 | 1,549,661.78 | 0.07% | 77,483.09 | 5.00% | 1,472,178.69 |
| Otherreceivables | 10,289,970.10 | 0.54% | 1,741,159.41 | 16.92% | 8,548,810.69 | 10,827,530.79 | 0.52% | 1,751,855.52 | 16.18% | 9,075,675.27 |
| Total | 1,894,640,254.02 | 100.00% | 7,648,528.34 | 0.40% | 1,886,991,725.68 | 2,072,632,040.71 | 100.00% | 8,172,626.17 | 0.39% | 2,064,459,414.54 |
Categorynameofbaddebtprovisionseparatelyaccrued:June2024
Unit:RMB
| Name | Beginningbalance | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | Withdrawalproportion | Reasonforwithdraw | |
| Customer1 | 163,012.05 | 163,012.05 | 163,012.05 | 163,012.05 | 100.00% | Customerinfinancialdifficulty |
| Total | 163,012.05 | 163,012.05 | 163,012.05 | 163,012.05 | ||
Withdrawalofbaddebtprovisionbyadoptingthegeneralmodeofexpectedcreditloss:
Unit:RMB
| Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
| Expectedcreditlossofthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
| Balanceof1January2024 | 6,661,047.19 | 1,348,566.93 | 163,012.05 | 8,172,626.17 |
| Balanceof1January2024intheCurrentPeriod | ||||
| WithdrawaloftheCurrentPeriod | -542,125.74 | 18,027.91 | 0.00 | -524,097.83 |
| Balanceof30June2024 | 6,118,921.45 | 1,366,594.84 | 163,012.05 | 7,648,528.34 |
Changesofcarryingamountwithsignificantamountchangedoflossprovisioninthecurrentperiod
□Applicable?Notapplicable
4)BadDebtProvisionWithdrawn,ReversedorRecoveredintheCurrentPeriodWithdrawalofbaddebtprovision:
Unit:RMB
| Category | Beginningbalance | Changesinthecurrentperiod | Endingbalance | |||
| Withdrawal | Reversedorrecovered | Charged-off/Written-off | Others | |||
| Baddebtprovision | 8,172,626.17 | -524,097.83 | 7,648,528.34 | |||
| Total | 8,172,626.17 | -524,097.83 | 7,648,528.34 | |||
5)Top5oftheEndingBalanceoftheOtherReceivablesCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameofentity | Nature | Endingbalance | Aging | Proportiontoendingbalanceoftotalotherreceivables | Endingbalanceofbaddebtprovision |
| Unit1 | Intercoursefunds | 805,711,346.27 | Within1yearand1to2years | 42.53% | 2,417,134.04 |
| Unit2 | Intercoursefunds | 454,105,243.28 | Within1year,2to3yearsandover3years | 23.97% | 1,362,315.73 |
| Unit3 | Intercoursefunds | 429,877,715.90 | Within1year | 22.69% | 1,289,633.15 |
| Unit4 | Intercoursefunds | 180,497,518.38 | Within1year | 9.53% | 541,492.56 |
| Unit5 | Intercoursefunds | 12,000,000.00 | Within1year | 0.63% | 36,000.00 |
| Total | 1,882,191,823.83 | 99.35% | 5,646,575.48 |
3.Long-termEquityInvestment
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Investmenttosubsidiaries | 3,446,169,376.50 | 10,209,050.00 | 3,435,960,326.50 | 3,446,169,376.50 | 10,209,050.00 | 3,435,960,326.50 |
| Investmenttojointventuresandassociatedenterprises | 152,156,574.30 | 152,156,574.30 | 143,537,479.77 | 143,537,479.77 | ||
| Total | 3,598,325,950.80 | 10,209,050.00 | 3,588,116,900.80 | 3,589,706,856.27 | 10,209,050.00 | 3,579,497,806.27 |
(1)Investmenttosubsidiaries
Unit:RMB
| Investee | Beginningbalance(carryingvalue) | Beginningbalanceofdepreciationreserve | Increase/decrease | Endingbalance(carryingvalue) | Endingbalanceofdepreciationreserve | |||
| Additionalinvestment | Reducedinvestment | Withdrawalofimpairmentprovision | Other | |||||
| XinshengPower | 176,340,737.93 | 176,340,737.93 | ||||||
| LufengCompanyLimited | 529,620,000.00 | 529,620,000.00 | ||||||
| LuqunTextile | 171,784,550.00 | 171,784,550.00 | ||||||
| Luthai(HongKong) | 128,771,800.00 | 128,771,800.00 | ||||||
| ShanghaiLuthai | 20,000,000.00 | 20,000,000.00 | ||||||
| LuThai(America) | 0.00 | 10,209,050.00 | 0.00 | 10,209,050.00 | ||||
| VACL | 62,337,238.57 | 62,337,238.57 | ||||||
| LulianNewMaterials | 300,000,000.00 | 300,000,000.00 | ||||||
| LujiaImport&Export | 10,000,000.00 | 10,000,000.00 | ||||||
| LuThaiOccupationalTrainingSchool | 100,000.00 | 100,000.00 | ||||||
| ShanghaiZhinuo | 6,000.00 | 6,000.00 | ||||||
| ZhishuConsulting | 2,000,000.00 | 2,000,000.00 | ||||||
| HuilinInternational | 1,630,000,000.00 | 1,630,000,000.00 | ||||||
| BanyangMountainVilla | 5,000,000.00 | 5,000,000.00 | ||||||
| YuanhuiFund | 400,000,000.00 | 400,000,000.00 | ||||||
| Total | 3,435,960,326.50 | 10,209,050.00 | 3,435,960,326.50 | 10,209,050.00 | ||||
(2)Investmenttojointventuresandassociatedenterprises
Unit:RMB
| Investee | Beginningbalance(carryingvalue) | Beginning | Increase/decrease | Endingbalance(carryingvalue) | Endingbalan | |||||||
| Additi | Redu | Gainsandlosses | Adjustme | Changes | Cashbonus | Withdr | Other | |||||
| balanceofdepreciationreserve | onalinvestment | cedinvestment | recognizedundertheequitymethod | ntofothercomprehensiveincome | ofotherequity | orprofitsannouncedtoissue | awalofimpairmentprovision | ceofdepreciationreserve | ||||
| I.Jointventures | ||||||||||||
| II.Associatedenterprises | ||||||||||||
| HaohongInvestment | 48,257,699.71 | 9,232,654.55 | 57,490,354.26 | |||||||||
| HaoyingInvestment | 95,279,780.06 | -613,560.02 | 94,666,220.04 | |||||||||
| Subtotal | 143,537,479.77 | 8,619,094.53 | 152,156,574.30 | |||||||||
| Total | 143,537,479.77 | 8,619,094.53 | 152,156,574.30 | |||||||||
Therecoverableamountisdeterminedbasedonthenetamountofthefairvalueminusdisposalcosts
□Applicable?NotapplicableTherecoverableamountisdeterminedbythepresentvalueoftheforecastedfuturecashflow.
□Applicable?Notapplicable
4.OperatingRevenueandCostofSales
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod | ||
| Revenue | Cost | Revenue | Cost | |
| Principalbusiness | 1,343,767,089.55 | 1,031,390,146.40 | 1,487,391,745.52 | 1,187,994,259.75 |
| Others | 124,619,201.80 | 80,166,752.65 | 122,518,076.91 | 89,037,564.87 |
| Total | 1,468,386,291.35 | 1,111,556,899.05 | 1,609,909,822.43 | 1,277,031,824.62 |
Informationinrelationtothetransactionpriceapportionedtotheresidualcontractperformanceobligation:
TheamountofrevenuecorrespondingtoperformanceobligationsofcontractssignedbutnotperformedornotfullyperformedyetwasRMB0.00attheperiod-end,amongwhichRMB0.00wasexpectedtoberecognizedinXXX,RMB0.00wasexpectedtoberecognizedinXXX,andRMB0.00wasexpectedtoberecognizedinXXX.
5.InvestmentIncome
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod |
| Long-termequityinvestmentincomeaccountedbycostmethod | 3,668,556.38 | 167,571,836.72 |
| Long-termequityinvestmentincomeaccountedbyequitymethod | 8,619,094.53 | -1,333,148.86 |
| Investmentincomefromdisposaloflong-termequityinvestment | 22,374,515.10 | |
| Investmentincomefromdisposaloftradingfinancialassets | 2,546,832.11 | 31,150,766.58 |
| Total | 14,834,483.02 | 219,763,969.54 |
XIX.SupplementaryMaterials
1.ItemsandAmountsofNon-recurringProfitorLoss
?Applicable□Notapplicable
Unit:RMB
| Item | Amount | Note |
| Gainsandlossesondisposalofnon-currentassets | -399,351.02 | |
| Governmentgrantsrecognizedinprofitorlossforthecurrentperiod(exceptforgovernmentgrantscloselyrelatedtotheCompany'snormaloperatingbusiness,incompliancewithnationalpoliciesandinaccordancewithdefinedcriteria,andhavingacontinuousimpactontheCompany'sprofitorloss) | 15,013,138.75 | |
| Gainsandlossesarisingfromchangesinfairvalueoffinancialassetsandfinancialliabilitiesheldbynon-financialenterprisesandgainsandlossesarisingfromthedisposaloffinancialassetsandfinancialliabilities,otherthaneffectivehedgingbusinessrelatedtotheCompany'snormaloperatingbusiness | -125,669,854.28 | |
| Othernon-operatingincomeandexpenseotherthantheabove | 677,817.46 | |
| Less:Incometaxeffects | -16,056,262.30 | |
| Non-controllinginterestseffects(aftertax) | -150,671.78 | |
| Total | -94,171,315.01 | -- |
Detailsofotherprofitandlossitemsinlinewiththedefinitionofnon-recurringgainsandlosses:
□Applicable?NotapplicableTherearenootherprofitandlossitemsinlinewiththedefinitionofnon-recurringgainsandlossesintheCompany.Notetodefinethenon-recurringprofitandlossitemslistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—Non-recurringGainsandLossesasrecurringprofitandlossitems.
□Applicable?Notapplicable
2.ReturnonEquityandEarningsPerShare
| ProfitasofReportingPeriod | WeightedaverageROE(%) | EPS | |
| EPS-basic | EPS-diluted | ||
| NetprofitattributabletoordinaryshareholdersoftheCompany | 1.83% | 0.21 | 0.19 |
| NetprofitattributabletoordinaryshareholdersoftheCompanyafterdeductionofnon-recurringprofitorloss | 2.84% | 0.33 | 0.29 |
ChairmanoftheBoard:LiuZibin
LuThaiTextileCo.,Ltd.
30August2024