LUTHAITEXTILECO.,LTD.ANNUALREPORT2024
April2025
ANNUALREPORT2024
PartIImportantNotes,TableofContentsandDefinitionsTheBoardofDirectors(orthe“Board”),theBoardofSupervisorsaswellasthedirectors,supervisorsandseniormanagementofLuThaiTextileCo.,Ltd.(hereinafterreferredtoasthe“Company”)herebyguaranteethefactuality,accuracyandcompletenessofthecontentsofthisReportanditssummary,andshallbejointlyandseverallyliableforanymisrepresentations,misleadingstatementsormaterialomissionstherein.LiuZibin,theCompany’slegalrepresentative,andZhangKeming,HeadofAccountingAffairsandHeadoftheAccountingDepartment(equivalenttoAccountingManager)herebyguaranteethattheFinancialStatementscarriedinthisReportarefactual,accurateandcomplete.AlltheCompany’sdirectorshaveattendedtheBoardmeetingforthereviewofthisReportanditssummary.TheCompanyhasdescribedindetailinthisReportthepossiblerisks.Pleaserefertothecontentsaboutthemajorrisksandcountermeasuresin“Prospects”in“PartIIIManagementDiscussionandAnalysis”ofthisReport.SecuritiesTimes,ShanghaiSecuritiesNews,ChinaSecuritiesJournal,TaKungPaoandwww.cninfo.com.cnhavebeendesignatedbytheCompanyforitsinformationdisclosurein2025.AndallinformationabouttheCompanyshallbesubjecttowhat’sdisclosedbytheCompanyontheaforesaidmedia.Investorsarekindlyremindedtoexercisecautionwhenmakinginvestmentdecisions.TheCompanyshallabidebyrelevantdisclosurerequirementsoftheSelf-RegulatoryGuidelinesofShenzhenStockExchangeforListedCompaniesNo.3-IndustryInformationDisclosureontextileandgarmentindustry.In2024,theglobaleconomicenvironmentwascomplexandchallenging,withcontinuedgeopoliticaltensions,frequentlocalconflicts,andthespreadofunilateralismandtradeprotectionism.Inthefaceofweakglobaleconomicgrowthandsluggishdomesticdemand,governmentsatthecentralandlocallevelshavecontinuouslyintroducedandimplementedpoliciesaimedat“protectingpeople’slivelihoods”and“stimulatingconsumption.”AccordingtodatafromtheNationalBureauofStatistics,China’sGDPin2024wasRMB134.91trillion,representingayear-on-yeargrowthof5%.TheChineseeconomycontinuestomoveforwardsteadilywithstrongresilienceandvitality.Ontheotherhand,Chinahasachievedgrowthinitsimportandexportbusiness,thankstoitsimportantpositionintheglobalindustrialchain,strongproductcompetitiveness,andthecontinuedadvancementofthe“BeltandRoad”initiative.AccordingtodatafromtheGeneralAdministrationofCustoms,China’stotalimportandexportvalueofgoodsin2024reachedUSD6.2trillion,ayear-on-yearincreaseof
3.8%.Lookingaheadto2025,therearestillnumerousrisksanduncertaintiesrelatedtoglobalgeopoliticalconflicts,inflationrebound,andthemonetarypoliciesofvariouscentralbanks.Export-orientedtextileenterpriseswillcontinuetoadheretoaninnovation-drivendevelopmentstrategyandaglobalisedindustriallayout,deepenstructuralreforms,optimiseassetstructures,andcontinuouslyenhancetheirabilitytocopewithgeopoliticalrisksandeconomicstructuraltransformation,inordertoachievesustainableandhigh-qualitydevelopment.Fordetails,pleaserefertoPartIIIManagementDiscussionandAnalysis.TheprofitdistributionplanapprovedbytheBoardofDirectorsisasfollows:Basedonatotalof817,306,010shares,acashdividendofRMB1.00(includingtax)willbedistributedforeverytensharestoallshareholders,withnobonusshares(includingtax)tobeissuedandno
capitalisationofreservesintosharecapital.ThisReportanditssummaryhavebeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionsshallprevail.
TableofContents
PartIImportantNotes,TableofContentsandDefinitions ...... 2
PartIICorporateInformationandKeyFinancialInformation ...... 7
PartIIIManagementDiscussionandAnalysis ...... 11
PartIVCorporateGovernance ...... 36
PartVEnvironmentalandSocialResponsibility ...... 64
PartVISignificantEvents ...... 68
PartVIIShareChangesandShareholderInformation ...... 77
PartVIIIPreferenceShares ...... 86
PartIXBonds ...... 86
PartXFinancialStatements ...... 90
DocumentsAvailableforReference
1.ThefinancialstatementssignedandstampedbytheCompany’slegalrepresentative,ChiefAccountantandFinancialManager;
2.TheoriginalIndependentAuditor’sReportstampedbytheCPAfirm,aswellassignedandstampedbytherelevantcertifiedpublicaccountants;and
3.TheoriginalsofalltheCompany’sannouncementsanddocumentsdisclosedtothepublicduringtheReportingPeriodonSecuritiesTimes,ShanghaiSecuritiesNews,ChinaSecuritiesJournalandTaKungPao.
Definitions
| Term | Refersto | Definition |
| The“Company”,“LTTC”,“Issuer”or“we” | Refersto | LuThaiTextileCo.,Ltd. |
| BoardofDirectors | Refersto | TheBoardofDirectorsofLuThaiTextileCo.,Ltd. |
| BoardofSupervisors | Refersto | TheBoardofSupervisorsofLuThaiTextileCo.,Ltd. |
| CSRC | Refersto | ChinaSecuritiesRegulatoryCommission |
| RMB,RMB’0,000 | Refersto | ExpressedintheChinesecurrencyofRenminbi,expressedintenthousandRenminbi |
| CompanyLaw | Refersto | CompanyLawofthePeople’sRepublicofChina |
| SecuritiesLaw | Refersto | SecuritiesLawofthePeople’sRepublicofChina |
| “ReportingPeriod”or“CurrentPeriod” | Refersto | 1January2024to31December2024 |
PartIICorporateInformationandKeyFinancialInformationI.CorporateInformation
| Stockname | LTTC,LTTC-B | Stockcode | 000726,200726 |
| Previousstockname(ifany) | N/A | ||
| Stockexchangeforstocklisting | ShenzhenStockExchange(“SZSE) | ||
| CompanynameinChinese | 鲁泰纺织股份有限公司 | ||
| Abbr. | 鲁泰纺织 | ||
| CompanynameinEnglish(ifany) | LUTHAITEXTILECO.,LTD | ||
| Abbr.(ifany) | LTTC | ||
| Legalrepresentative | LiuZibin | ||
| Registeredaddress | 61LuthaiBoulevard,High-techDevelopmentZone,ZiboCity,ShandongProvince,P.R.China | ||
| Zipcode | 255086 | ||
| Pastchangesofregisteredaddress | 11MingboRoad,ZiboHigh-techDevelopmentZone,ShandongProvince,P.R.China | ||
| Officeaddress | 81SonglingEastRoad,ZichuanDistrict,ZiboCity,ShandongProvince,P.R.China | ||
| Zipcode | 255100 | ||
| Companywebsite | www.lttc.com.cn | ||
| Emailaddress | lttc@lttc.com.cn | ||
II.ContactInformation
| BoardSecretary | SecuritiesRepresentative | |
| Name | ZhengWeiyin | LiKun |
| Address | 81SonglingEastRoad,ZichuanDistrict,ZiboCity,ShandongProvince,P.R.China | 81SonglingEastRoad,ZichuanDistrict,ZiboCity,ShandongProvince,P.R.China |
| Tel. | 0533-5285166 | 0533-5285166 |
| Fax | 0533-5418805 | 0533-5418805 |
| Emailaddress | wyzheng@lttc.com.cn | likun@lttc.com.cn |
III.MediaforInformationDisclosureandPlaceWhereThisReportIsLodged
| StockexchangewebsitewherethisReportisdisclosed | ShenzhenStockExchange:http://www.szse.cn |
| MediaandwebsitewherethisReportisdisclosed | SecuritiesTimes,ShanghaiSecuritiesNews,ChinaSecuritiesJournal,TaKungPao,andwww.cninfo.com.cn |
| PlacewherethisReportislodged | SecuritiesDepartmentoftheCompany |
IV.ChangetoCompanyRegisteredInformation
| Unifiedsocialcreditcode | 91370300613281175K |
| ChangetoprincipalactivityoftheCompanysincegoingpublic(ifany) | Nochange |
| Everychangeofcontrollingshareholdersinceincorporation(ifany) | Nochange |
V.OtherInformationTheindependentauditfirmhiredbytheCompany:
| Name | GrantThorntonZhitongCertifiedPublicAccountantsLLP |
| Officeaddress | 5/F,ScitechPalace,22JianguomenWaiAvenue,ChaoyangDistrict,Beijing |
| Accountantswritingsignatures | HeFeng,CuiXiaoli |
TheindependentsponsorhiredbytheCompanytoexerciseconstantsupervisionovertheCompanyintheReportingPeriod:
□Applicable?NotapplicableTheindependentfinancialadvisorhiredbytheCompanytoexerciseconstantsupervisionovertheCompanyintheReportingPeriod:
□Applicable?NotapplicableVI.KeyFinancialInformationIndicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow.
□Yes?No
| 2024 | 2023 | 2024-Over-2023Change(%) | 2022 | |
| Operatingrevenue(RMB) | 6,090,615,025.20 | 5,961,477,252.98 | 2.17% | 6,938,342,135.90 |
| Netprofitattributabletothelistedcompany’sshareholders(RMB) | 410,321,398.17 | 403,444,254.42 | 1.70% | 963,864,819.43 |
| Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalgainsandlosses(RMB) | 482,338,741.63 | 386,135,437.00 | 24.91% | 795,473,953.21 |
| Netcashgeneratedfrom/usedinoperatingactivities(RMB) | 1,244,212,151.94 | 854,864,537.42 | 45.54% | 1,422,310,774.26 |
| EPS-basic | 0.50 | 0.47 | 6.38% | 1.10 |
| EPS-diluted | 0.47 | 0.42 | 11.90% | 0.95 |
| WeightedaverageROE(%) | 4.39% | 4.40% | -0.01% | 11.31% |
| 31December2024 | 31December2023 | Changeof31December2024over31December2023(%) | 31December2022 | |
| Totalassets(RMB) | 13,929,715,649.21 | 13,430,286,222.94 | 3.72% | 13,351,097,602.03 |
| Equityattributabletothelistedcompany’sshareholders(RMB) | 9,438,728,389.28 | 9,230,806,905.80 | 2.25% | 9,014,156,872.71 |
Indicatebytickmarkwhetherthelowerofthenetprofitattributabletothelistedcompany’sshareholdersbeforeandafterexceptionalgainsandlosseswasnegativeforthelastthreeaccountingyears,andthelatestindependentauditor’sreportindicatedthattherewasuncertaintyabouttheCompany’sabilitytocontinueasagoingconcern.
□Yes?NoIndicatebytickmarkwhetherthelowerofthenetprofitattributabletothelistedcompany’sshareholdersbeforeandafterexceptionalgainsandlosseswasnegative.
□Yes?No
VII.AccountingDataDifferencesunderChineseAccountingStandards(CAS)andInternationalAccountingStandards(IAS)andForeignAccountingStandards
1.NetProfitandEquityunderIASandCAS
□Applicable?NotapplicableNodifferencefortheReportingPeriod.
2.NetProfitandEquityunderForeignAccountingStandardsandCAS
□Applicable?NotapplicableNodifferencefortheReportingPeriod.VIII.KeyFinancialInformationbyQuarter
Unit:RMB
| Q1 | Q2 | Q3 | Q4 | |
| Operatingrevenue | 1,382,655,063.47 | 1,447,833,622.14 | 1,570,583,102.90 | 1,689,543,236.69 |
| Netprofitattributabletothelistedcompany’sshareholders | 68,241,726.33 | 101,318,243.21 | 118,293,394.86 | 122,468,033.77 |
| Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalgainsandlosses | 122,504,699.15 | 141,226,585.40 | 87,100,142.55 | 131,507,314.53 |
| Netcashflowfromoperatingactivities | 93,395,090.36 | 358,026,562.33 | 309,665,213.19 | 483,125,286.06 |
IndicatebytickmarkwhetheranyofthequarterlyfinancialdatainthetableaboveortheirsummationsdiffersmateriallyfromwhathavebeendisclosedintheCompany’squarterlyorinterimreports.
□Yes?NoIX.ExceptionalGainsandLosses?Applicable□Notapplicable
Unit:RMB
| Item | 2024 | 2023 | 2022 | Note |
| Gainorlossondisposalofnon-currentassets(inclusiveofimpairmentallowancewrite-offs) | -5,481,717.67 | -9,741,769.37 | -228,367.44 | |
| Governmentgrantsrecognisedinprofitorlossforthecurrentperiod(exceptforgovernmentgrantscloselyrelatedtotheCompany’snormaloperatingbusiness,incompliancewithnationalpoliciesandinaccordancewithdefinedcriteria,andhavingacontinuousimpactontheCompany’sprofitorloss) | 34,326,278.48 | 45,294,185.95 | 50,298,092.20 | |
| Gainsandlossesarisingfromchangesinfairvalueoffinancialassetsandfinancialliabilitiesheldbynon-financialenterprisesandgainsandlossesarisingfromthedisposaloffinancialassetsandfinancialliabilities,otherthaneffectivehedgingbusinessrelatedtotheCompany’snormaloperatingbusiness | -116,104,499.14 | -18,190,072.86 | 154,877,757.70 | |
| Reversalofprovisionforimpairmentofreceivablesseparatelytestedforimpairment | 1,349,345.50 | 163,992.17 |
| Othernon-operatingincomeandexpenseotherthantheabove | 3,383,103.88 | 4,819,447.10 | -1,810,393.39 | |
| Less:Incometaxeffects | -11,186,738.74 | 4,629,001.56 | 33,015,346.77 | |
| Non-controllinginterestseffects(aftertax) | 676,593.25 | 407,964.01 | 1,730,876.08 | |
| Total | -72,017,343.46 | 17,308,817.42 | 168,390,866.22 | -- |
Detailsofotherprofitandlossitemsinlinewiththedefinitionofnon-recurringgainsandlosses:
□Applicable?NotapplicableTherearenootherprofitandlossitemsinlinewiththedefinitionofnon-recurringgainsandlossesintheCompany.Notetodefinethenon-recurringprofitandlossitemslistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—Non-recurringGainsandLossesasrecurringprofitandlossitems.
□Applicable?NotapplicableNosuchcasesfortheReportingPeriod.
PartIIIManagementDiscussionandAnalysisI.IndustryOverviewfortheReportingPeriodTheCompanyshallabidebyrelevantdisclosurerequirementsoftheSelf-RegulatoryGuidelinesofShenzhenStockExchangeforListedCompaniesNo.3-IndustryInformationDisclosureontextileandgarmentindustry.In2024,China’stextileindustrydemonstratedstrongdevelopmentresilience,withtheoveralleconomicperformanceoftheindustryremainingstable.Keyoperatingindicatorsshowedrecovery,andtextileandapparelexportsachievedsteadygrowth.AccordingtostatisticsfromtheGeneralAdministrationofCustoms,China’stextileandapparelexportvaluein2024wasUSD301.1billion,markingayear-on-yearincreaseof2.8%.Ofthis,textileexportsamountedtoUSD141.96billion,ayear-on-yearincreaseof5.7%,whileapparelexportstotalledUSD159.14billion,reflectingayear-on-yearincreaseof0.3%.Thetextileindustryhasdevelopedintoahighlyglobalisedandfullymarket-orientedsector.Inthefaceofthecurrentcomplexandchallengingmarketsituation,theimpactofgeopolitics,andinsufficienteffectivedemand,China’stextileindustrywillleverageitscompleteindustrialchainandefficientsupplychaincapabilities.Bystrengtheningsystematicresearchontechnologicaltrends,marketchanges,andglobaldevelopments,theindustrywillstrivetofindtheoptimalbalanceinareassuchasscaleandstructure,speedandquality,developmentandsecurity,internationalanddomesticmarkets,resourcesandtheenvironment,aswellascompetitionandcooperation.Thiswillensuretheindustry’scontinuedgreen,fashionable,andsustainabledevelopment.II.PrincipalActivityoftheCompanyintheReportingPeriodTheCompanyshallabidebyrelevantdisclosurerequirementsoftheSelf-RegulatoryGuidelinesofShenzhenStockExchangeforListedCompaniesNo.3-IndustryInformationDisclosureontextileandgarmentindustry.In2024,amidstthesevereandcomplexexternalsituation,China’stextileindustryremainedcommittedtodeepeningitstransformationandupgrading,continuouslyenhancingitsdevelopmentresilience.Inresponsetothechangesintheinternationaltradelandscapeandinsufficienteffectivedemand,theCompanyadheredtothephilosophyof“customer-centricity,”focusingonthedomesticmarketwhileexpandingintooverseasmarkets.TheCompanycontinuedtoadvancethestrategiesof“ImproveQualityandEfficiency”and“OverallInternationalization,”whileadjustingitsstructureandbuildingcapacity.Effortswereintensifiedtoexplorenewmarkets,andnewoverseasprojectswerepushedforwardforrapidcommissioningandstableoperation.Focusingoncorebusinesses,theCompanyincreasedinvestmentinresearchanddevelopmentinnovation,drovetheupgradinganditerationofproductsandservices,andensuredthatvariousmanagementandoperationaltaskswerecarriedoutinanorderlymanner.DuringtheReportingPeriod,theCompanyachievedtotaloperatingrevenueofRMB6,091million,operatingprofitofRMB467million,netprofitattributabletotheparentcompanyofRMB410million,andnetprofitattributabletotheparentcompanyafterdeductingnon-recurringgainsandlossesofRMB482million.Thesefiguresrepresentyear-on-yeargrowthof2.17%,7.80%,1.70%,and24.91%,respectively.NochangesoccurredtotheCompany’sprincipaloperations,primaryproducts,businessmodels,ortheprimaryfactorsdrivingtheCompany’sgrowthintheReportingPeriod.DuringtheReportingPeriod,theCompanywassuccessivelyselectedasthe“ChineseTextileandApparelBrandof2024withCompetitiveEdge”bytheChinaNationalTextileandApparelCouncil,namedasa“SustainedInnovationUnit”forthetoptencategoriesoftextileinnovationproductsbytheChinaTextileInformationCentre,andrecognisedbytheShandongTextileandApparel
Associationasthe“DigitalTransformationInnovationUnit”fortheShandongtextileandapparelindustryin2023.Duringthereportingperiod,theCompanymainlyfocusedonthefollowingaspects:
i.ContinuouslyimprovetheLuThaiProductionSystem(LTPS)anddeeplypromotecostreductionandefficiencyenhancementTheCompanydeeplyimplementedtheexcellentperformancemanagementmode,continuouslyimprovedtheLTPS,andpromotedleanproduction.Byimplementingmanagementandtechnicalimprovements,star-levelfactoryevaluations,technicalcompetitions,andaseriesofteam-buildingactivities,theCompanyaimedtostimulateemployeeenthusiasmandcreativity.Theseeffortscontributedtothecontinuousenhancementofmanagementcapabilitiesandlevelsinareassuchasqualitycontrol,productionoperations,andriskmanagement.TheCompanyactivelyrespondedtomarketchanges,continuouslystrengthenedinternalmanagement,adheredtohigh-qualitydevelopment,andconsistentlymaintaineditsleadingpositioninthecottontextileindustry.DuringtheReportingPeriod,theCompanyachieveditsexpectedgoalsinareassuchasthestableoperationofoverseasproductionbases,newproductresearchanddevelopment,expansionintonewmarkets,capacityoptimisation,andthestabilityofitsworkforce.ii.ExpandtheglobalmarketingnetworkandimprovetheoverallproductionsolutioncapabilitiesTheCompanybuiltaglobalmarketingnetworkcentredaroundtheGroup’sheadquarters,activelyexplorednewmarketsandnewcustomers,focusedonthepromotionofcoreproducts,emphasisedthedevelopmentofleisurecategories,andstrengthenedcost,expense,andriskcontrol.TheCompanyadvancedits“keyaccountstrategy,”andleveragedtheadvantagesofaglobalisedindustriallayoutandaverticallyintegratedproductionchaintocontinuouslyimproveitscooperationwithstrategiccustomersandcreateawin-windevelopmentmodel.TheCompanyintegratedinternalandexternalresourcestoenhanceitscapabilitiesinproducinganddeliveringknittedfabrics,functionalfabrics,andnewcategoriesofapparelproducts,therebycreatingacompetitiveadvantagethroughcomplementarysynergyacrossitsdiverseproductcategories.TheCompanyfocusedonmaintainingandservicingkeycustomers,improvedtheverticalsupplychaincooperationsystemforfabricsandapparel,andcontinuouslypromotedthedevelopmentofintegrateddomesticandinternationalfabricandapparelservicecapabilities,therebyprovidingcustomerswithproductsandservicesthatoffergreatercommercialvalue.iii.FocusoncustomervaluecreationandadvanceR&DinnovationandcooperationByleveragingtheadvantagesofitsentireindustrychainand“domestic+overseas”productionlayout,theCompanycontinuedtodeepenitsmarket-orientedandperformance-drivenproductdevelopmentmechanism.Itstrengthenedjointdevelopmentwithupstreamanddownstreamindustrypartnersandresearchinstitutions,andfocusedonproductfunctionalityenhancement,greensustainability,andprocessingtechnologyresearch,topromotetheimplementationoffabricleisurewearandfunctional-relatedresearchprojects.DuringtheReportingPeriod,theCompanywasgranted20nationalinventionpatents,participatedintheformulationorrevisionofnineindustrystandards,andsuccessfullypassedthemid-termandannualassessmentsforthe“14thFive-Year”NationalKeyR&DProjectandKeyR&DProjectofShandongProvince(MajorInnovationProjects).Severalresearchanddevelopmentachievementsreceivedawards.TheCompanyanditsmajority-ownedsubsidiaries’projects,KeyTechnologiesforEfficientGreenFashionOnlineDyeingandTheirIndustrialisationandKeyTechnologiesandApplicationsofFunctionalFabricsBasedonInterfaceChemistryandMicrostructureRegulation,wereawardedtheFirstPrizeforScientificandTechnologicalProgressbytheChinaNationalTextile&ApparelCouncil.TheprojectKeyTechnologiesandIndustrialisationofThermalandHumidityComfortFunctionalTextilesStructureDesignandManufacturingreceivedtheSecondPrizeforScientific
andTechnologicalProgressfromthesamecouncil.Additionally,thefabricdesignworkGreenWonderlandwontheGoldAwardattheChinaInternationalFabricDesignCompetition.iv.StrengthencorporateculturetoenhancecompetitiveawarenessandoperationalcapabilitiesTheCompanyimplementedacorporatecultureenhancementprojecttofurtherunifythinking,consolidatestrength,andmotivateemployees,therebyimprovingteamcapabilities.TheCompanyacceleratedthedevelopmentofaninternationaltalentpool,improvedthetrainingandmanagementofkeypositionpersonnel,andactivelyrespondedtochangesintheinternationalpoliticalandeconomiclandscapeaswellasmarketchallenges.Adheringtotheprincipleof“pursuingexcellence,integrity,andwin-wincooperation,”theCompanywascommittedtoasustainabledevelopmentapproachof“green,low-carbon,andintelligentmanufacturing.”Itstrivedtotransformitselfintoaglobalgreenfashiontextileandapparelindustrygroup,withleadingfabricsasitscore.III.CoreCompetitivenessAnalysis
1.TheCompanyhasacomprehensiveverticalindustrialchainandinternationalizedlayout.Itpossessesthewholeindustrialchainintegratingspinning,bleachinganddyeing,neatening,testing,andgarmentmaking,aswellasexcellentqualitycontrolcapabilitiesthroughvariouslinksoftheproductionofhigh-endyarn-dyedfabrics.TheCompanyhasestablishedoverseasproductionbases,designinstitutions,andmarketserviceagencies,enablingittointegrateandallocateinternationalresources.Thisleveragestheadvantagesofitsglobalindustriallayoutandhighlightsitsleadingpositionintheproductionofyarn-dyedfabrics.
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.TheCompanyalwaysinsistsontheindependentinnovationbyrelyingontechnologicalplatformssuchastheNationalEnterpriseTechnicalCentre,NationalIndustrialDesignCentre,NationalPost-doctoralScientificResearchStation,andShandongProvincialEngineeringTechnologyResearchCentre.Ithasestablishedlong-termtechnicalcooperationandjointproductdevelopmentwithresearchinstitutions,universities,strategiccustomers,andkeysuppliers.TheCompanyfocusesonbothfrontiertechnologyreservesandapplicationtechnologyinnovation,continuouslystrengtheningnewproductdevelopmentdrivenbycommercialvaluerealisation.Itgraduallyenhancesitscapabilitiesintechnologicalresearchandproductintegrationdevelopment,consistentlycontributingmoregreen,low-carbon,andsustainablenewtechnologiesandhigh-qualityproductstotheindustry,thusachievinglow-carbon,green,andcirculardevelopment.
IV.CoreBusinessAnalysis
1.OverviewDuringtheReportingPeriod,theCompanyrecordedoperatingrevenueofRMB6,091million(a
2.17%year-on-yearincrease);costofsalesofRMB4,644million(a1.14%year-on-yearincrease),sellingexpenseofRMB151million(a1.72%year-on-yearincrease)andadministrativeexpenseofRMB344million(a9.94%year-on-yeardecrease);researchanddevelopmentexpenseofRMB207million(a13.74%year-on-yeardecrease);andnetcashgeneratedfromoperatingactivitiesofRMB1,244million(a45.54%year-on-yearincrease).
2.RevenueandCostAnalysis
(1)BreakdownofOperatingRevenue
Unit:RMB
| 2024 | 2023 | Year-on-YearChange | |||
| Amount | As%ofTotalOperatingRevenue(%) | Amount | As%ofTotalOperatingRevenue(%) | ||
| Total | 6,090,615,025.20 | 100% | 5,961,477,252.98 | 100% | 2.17% |
| Byoperatingdivision | |||||
| Textileandapparel | 5,707,337,704.95 | 93.71% | 5,554,873,179.03 | 93.18% | 2.74% |
| Electricityandsteam | 231,572,771.61 | 3.80% | 214,716,930.11 | 3.60% | 7.85% |
| Other | 151,704,548.64 | 2.49% | 191,887,143.84 | 3.22% | -20.94% |
| Byproductcategory | |||||
| Fabricproducts | 4,335,423,361.05 | 71.18% | 4,224,792,352.66 | 70.87% | 2.62% |
| Apparel | 1,371,914,343.90 | 22.53% | 1,330,080,826.37 | 22.31% | 3.15% |
| Electricityandsteam | 231,572,771.61 | 3.80% | 214,716,930.11 | 3.60% | 7.85% |
| Other | 151,704,548.64 | 2.49% | 191,887,143.84 | 3.22% | -20.94% |
| Byoperatingsegment | |||||
| JapanAndSouthKorea | 347,853,952.05 | 5.71% | 363,082,297.41 | 6.09% | -4.19% |
| SoutheastAsia | 1,828,264,195.92 | 30.02% | 1,691,776,529.18 | 28.38% | 8.07% |
| EuropeandAmerica | 870,289,906.47 | 14.29% | 933,632,800.12 | 15.66% | -6.78% |
| Other | 769,089,924.78 | 12.63% | 639,996,479.08 | 10.74% | 20.17% |
| MainlandChina | 2,275,117,045.98 | 37.35% | 2,332,989,147.19 | 39.13% | -2.48% |
| Bysalesmodel | |||||
| Directsales | 6,090,615,025.20 | 100.00% | 5,961,477,252.98 | 100.00% | 2.17% |
(2)Operatingdivision,productcategory,operatingsegmentorsalesmodelcontributingover10%ofoperatingrevenueoroperatingprofit
□Applicable?Notapplicable
(3)Whetherrevenuefromphysicalsalesishigherthanservicerevenue?Yes□No
| IndustryClassification | Item | Unit | 2024 | 2023 | Change(%) |
| Fabric | Unitsales | 0,000meters | 18,662.18 | 18,092.94 | 3.15% |
| Output | 0,000meters | 20,522.78 | 20,230.04 | 1.45% | |
| Inventory | 0,000meters | 4,056.57 | 4,036.91 | 0.49% | |
| Shirts | Unitsales | 0,000pieces | 1,769.07 | 1,756.50 | 0.72% |
| Output | 0,000pieces | 1,825.26 | 1,769.07 | 3.18% | |
| Inventory | 0,000pieces | 176.64 | 135.69 | 30.18% | |
| electrical | Unitsales | 000KWH | 188,015.03 | 173,716.42 | 8.23% |
| Output | 000KWH | 415,172.76 | 406,726.09 | 2.08% | |
| Inventory | 000KWH | ||||
| Steam | Unitsales | Ton | 295,936.22 | 268,048.41 | 10.40% |
| Output | Ton | 1,031,887.31 | 1,041,382.00 | -0.91% | |
| Inventory | Ton |
Anyover30%YoYmovementsinthedataaboveandwhy:
?Applicable□NotapplicableShirtinventoryincreased30.18%year-on-year,mainlyduetotheincreaseinshirtordersattheendofReportingPeriod.
(4)ExecutionprogressofmajorsignedsalesandpurchasecontractsintheReportingPeriod
□Applicable?Notapplicable
(5)BreakdownofcostofsalesByoperatingdivisionandproductcategory
Unit:RMB
| IndustryClassification | Item | 2024 | 2023 | Year-on-YearChange | ||
| Amount | As%ofTotalCostofSales(%) | Amount | As%ofTotalCostofSales(%) | |||
| Textileandapparel | CostofSales | 4,295,996,602.48 | 92.52% | 4,208,891,944.15 | 91.67% | 2.07% |
| Electricityandsteam | CostofSales | 226,356,834.36 | 4.87% | 228,107,386.45 | 4.97% | -0.77% |
| Other | CostofSales | 121,225,507.79 | 2.61% | 154,389,584.80 | 3.36% | -21.48% |
Unit:RMB
| ProductCategory | Item | 2024 | 2023 | Change(%) | ||
| Amount | As%ofTotalCostofSales(%) | Amount | As%ofTotalCostofSales(%) | |||
| Fabricproducts | CostofSales | 3,265,807,582.72 | 70.33% | 3,219,884,044.35 | 70.13% | 1.43% |
| Apparel | CostofSales | 1,030,189,019.76 | 22.19% | 989,007,899.80 | 21.54% | 4.16% |
| Electricityandsteam | CostofSales | 226,356,834.36 | 4.87% | 228,107,386.45 | 4.97% | -0.77% |
| Other | CostofSales | 121,225,507.79 | 2.61% | 154,389,584.80 | 3.36% | -21.48% |
Note
| Name | Period | RawMaterials | LaborCost | Depreciation | Energy | ManufactureExpenses | Total |
| Fabric | 2024 | 46.71% | 17.75% | 7.31% | 17.76% | 10.47% | 100.00% |
| 2023 | 48.13% | 17.66% | 7.10% | 17.59% | 9.52% | 100.00% | |
| Apparel | 2024 | 60.00% | 26.26% | 2.39% | 1.28% | 10.07% | 100.00% |
| 2023 | 59.65% | 26.22% | 2.42% | 1.13% | 10.58% | 100.00% |
(6)ChangesinthescopeofconsolidatedfinancialstatementsfortheReportingPeriod?Yes□NoInthisyear,thesubsidiaryShanghaiZhinuoTextileNewMaterialsCo.,Ltd.wasderegistered,andanewsubsidiary,TianyiApparelCo.,Ltd.,wasestablished.
(7)MajorchangestothebusinessscopeorproductorservicerangeintheReportingPeriod
□Applicable?Notapplicable
(8)MajorcustomersandsuppliersMajorcustomers:
| Totalsalestotopfivecustomers(RMB) | 1,062,056,133.14 |
| Totalsalestotopfivecustomersas%oftotalsalesoftheReportingPeriod(%) | 17.44% |
| Totalsalestorelatedpartiesamongtopfivecustomersas%oftotalsalesoftheReportingPeriod(%) | 0.00% |
Informationabouttopfivecustomers:
| No. | Customer | SalesRevenueContributedfortheReportingPeriod(RMB) | As%ofTotalSalesRevenue(%) |
| Total | -- | 1,062,056,133.14 | 17.44% |
Otherinformationaboutmajorcustomers:
□Applicable?NotapplicableMajorsuppliers:
| Totalpurchasesfromtopfivesuppliers(RMB) | 535,738,292.24 |
| Totalpurchasesfromtopfivesuppliersas%oftotalpurchasesoftheReportingPeriod(%) | 14.74% |
| Totalpurchasesfromrelatedpartiesamongtopfivesuppliersas%oftotalpurchasesoftheReportingPeriod(%) | 2.17% |
Informationabouttopfivesuppliers:
| No. | Supplier | PurchaseintheReportingPeriod(RMB) | As%ofTotalPurchases(%) |
| Total | -- | 535,738,292.24 | 14.74% |
Otherinformationaboutmajorsuppliers:
□Applicable?Notapplicable
3.Expense
Unit:RMB
| 2024 | 2023 | Change(%) | ReasonforAnySignificantChange | |
| Sellingexpense | 151,004,439.35 | 148,454,814.21 | 1.72% | |
| Administrativeexpense | 344,326,973.11 | 382,327,532.79 | -9.94% | |
| Financialexpenses | -3,750,186.31 | 5,448,844.47 | -168.83% | Increasednetexchangegain. |
| R&Dexpense | 206,820,921.71 | 239,775,343.18 | -13.74% |
TheCompanyshallabidebyrelevantdisclosurerequirementsoftheSelf-RegulatoryGuidelinesofShenzhenStockExchangeforListedCompaniesNo.3-IndustryInformationDisclosureontextileandgarmentindustry.Fordetailsofsellingexpense,pleasereferto“49.Sellingexpense”of“VII.Notestomainitemsofconsolidatedfinancialstatements”of“PartXFinancialStatements”.
4.OtherInformationRequiredbyInformationDisclosureGuideforCompaniesEngagedinTextileandGarmentServicesTheCompanyshallabidebyrelevantdisclosurerequirementsoftheSelf-RegulatoryGuidelinesofShenzhenStockExchangeforListedCompaniesNo.3-IndustryInformationDisclosureontextileandgarmentindustry.
(1)CapacityTheCompany’sowncapacity
| IndustryClassification | Item | 2024 | 2023 |
| Fabric | Totalcapacity(10,000meters) | 28,400.00 | 29,745.00 |
| Rateofcapacityutilization | 79% | 74% | |
| Plantsunderconstruction | TheCompany’sconvertiblebondfundraisingproject:Equipmentandsupportingfacilitiesforthe“OverseasProductLineProjectofHigh-gradeFabrics(PhaseI)”havebeenprogressivelycompletedandputintooperation. | TheCompany’sconvertiblebondfundraisingprojects:The“FunctionalFabricIntelligentEco-parkProject(PhaseI)”withanannualcapacityof35millionmetersofhigh-gradefunctionalfabricsandthe“OverseasProductLineProjectofHigh-gradeFabrics(PhaseI)”wereinprogress. | |
| Apparel | Totalcapacity(10,000standardpieces) | 2,385.00 | 2,230.00 |
| Rateofcapacityutilization | 86% | 84% | |
| Plantsunderconstruction | Theoverseasinvestmentintheconstructionofa3million-piece |
Year-on-yearchangeintherateofcapacityutilizationabove10%
□Yes?NoOverseascapacity?Yes□No
garmentproductionlineenteredthetrialproductionstageinAugust2024.IndustryClassification
| IndustryClassification | Item | Domestic | Overseas |
| Fabric | Percentageofcapacity | 73% | 27% |
| Capacitylayout | MainlyinShandongProvince | MainlyinSoutheastAsia | |
| Rateofcapacityutilization | 79% | 78% | |
| Apparel | Percentageofcapacity | 31% | 69% |
| Capacitylayout | MainlyinShandongProvince | MainlyinSoutheastAsia | |
| Rateofcapacityutilization | 84% | 87% |
(2)SalesmodelandchannelsProductsaleschannelsandoperationmethodsa.SalesmodelTheCompanyadoptedtheorder-basedsalesmodel.Withtheself-ownedtrademark“Luthai”foritsfabricsales,itprovidedproductdevelopmentanddesignsolutionstailoredtocustomerneeds,includingpatterns,functionality,andmaterialspecifications.Shirtsweremainlymadeaccordingtotheordersofcustomersathomeandabroad,andsoldbybrandowners.TheCompanyactivelyexpandeditsownbrandportfolio.TheCompanyoperateditsself-ownedbrandthroughself-ownedexclusiveshopssuchasLuThaiExhibitionandSalesPavilion,countersofaffiliatedstoresinmallsande-networkingmarketing,expandingitsbusinessfootprintthroughallchannels.Inaddition,theCompanyalsooffered“high-endcustom”shirtandcorporateattirecustomizationservicestomeetthediverseneedsofendcustomers.b.Saleschannels:Directsales:TheCompanyfocusedonitsownbrand,withadedicatedsalesdepartmentresponsibleformanagingthesalesandafter-salesservicesoftheCompany’sproducts.Theglobalmarketwasdividedintodifferentsalesregionsformanagement,withunifiedplanninganddeploymenttoeffectivelyhandlefabricandapparelorders,ensuringthecompletionofproductsales.Additionally,toenrichitsterminalbrandmatrixandexpandthemarket,theCompanylaunchedanewbrand,‘Luthai1987,’tomeetthediverseneedsofendcustomers.Onlinesales:Tokeepupwiththedigitalizationwave,theCompanywasfullycommittedtoexpandingitsonlinesaleschannels.Ononehand,theCompanybuiltitsowne-commerceplatform,anddeeplyintegratedcorporateresourcestodirectlyconnectthebrandwithconsumers;ontheotherhand,itformedstrategicpartnershipswithmajorwell-knownonlineshoppingplatformstoexpandtrafficchannels.Aftertransactionswerecompletedthroughtheinternet,thegoodswereaccuratelydeliveredtocustomersviaexpressdelivery.
Unit:RMB
| Sales | Operating | CostofSales | Gross | YoYChangein | YoYChangein | YoYChange |
| Channels | Revenue | ProfitMargin | OperatingRevenue | CostofSales | inGrossProfitMargin | |
| Onlinesales | 2,087,914.97 | 1,010,522.76 | 51.60% | -37.23% | -32.20% | -3.59% |
| Directsales | 4,344,572,214.59 | 3,268,776,650.71 | 24.76% | 2.57% | 1.43% | 0.84% |
| OEM/ODM | 1,360,677,575.39 | 1,026,209,429.01 | 24.58% | 3.40% | 4.21% | -0.59% |
| Total | 5,707,337,704.95 | 4,294,262,102.56 | 24.76% | 2.74% | 2.03% | 0.53% |
(3)FranchiseanddistributionFranchiseesanddistributorsrecordedmorethan30%ofsalesrevenue
□Yes?No
(4)OnlinesalesOnlinesalesrecordedmorethan30%ofsalesrevenue
□Yes?NoSelf-developedsalesplatforms?Yes□No
| Startofoperation | 30March2009 |
| Numberofregisteredusers | 145,000 |
| Averagenumberofactivemonthlyusers(AMU) | 3,000 |
| Returnrateofmainbrands | 2.80% |
| Returnrateofmaintypes | 2.80% |
Cooperationwiththird-partysalesplatforms?Yes□No
Unit:RMB
| PlatformName | TransactionAmountduringtheReportingPeriod | ReturnRate |
OnlinesaleschannelsopenedorclosedbytheCompany
□Applicable?NotapplicableImpactontheCompanyinthecurrentperiodandsubsequentperiods:
Notapplicable
(5)AgencyoperationmodelAgencyoperationmodelinvolved
□Yes?No
(6)InventoryInventory
| MainProducts | DaysofTurnoverofInventories | QuantityofInventory | InventoryAge | Year-on-yearChangeinInventoryBalance | ReasonforChange |
| Fabric(10,000meters) | 87 | 3,353.32 | Withinoneyear | -0.94% |
| Fabric(10,000meters) | 703.25 | Overoneyear | 7.90% | ||
| Shirts(10,000pieces) | 30 | 158.86 | Withinoneyear | 34.58% | IncreasedordersattheendoftheReportingPeriod. |
| Shirts(10,000pieces) | 17.78 | Overoneyear | 0.76% |
Inventoryvaluationallowances:
| Item | 31December2024 | ||
| CarryingAmount | ValuationAllowanceorProvisionforImpairmentonContractPerformanceCost | CarryingValue | |
| Rawmaterials | 806,501,875.49 | 55,650,999.99 | 750,850,875.50 |
| Work-in-progress | 520,394,109.82 | 6,229,881.12 | 514,164,228.70 |
| Inventorygoods | 952,987,895.46 | 208,856,231.77 | 744,131,663.69 |
| Commissionedproducts | 10,737,638.41 | 0.00 | 10,737,638.41 |
| Total | 2,290,621,519.18 | 270,737,112.88 | 2,019,884,406.30 |
(7)BrandbuildingProductionandsalesofbrandclothing,apparelandhometextileproducts?Yes□NoSelf-ownedbrands:
| BrandName | TrademarkName | MainProductTypes | Characteristics | TargetConsumerGroup | PriceZoneofMainProducts | MainSalesAreas | CityLevels |
| LTGRFF | LTGRFF | Shirtsandsuits | Classicbusinessattire | Businesspeople | RMB500-3000 | EastChina,SouthChinaandSouthwestChina | Provincialcapitalcitiesandotherprefecture-levelcities |
| Luthai1987 | Luthai1987 | Shirts | Business,casual | Elitemen | RMB500-3000 | EastChina,SouthChinaandSouthwestChina | Provincialcapitalcitiesandotherprefecture-levelcities |
Trademarkownershipdisputes
□Applicable?Notapplicable
(8)OtherinformationEngagedinbusinessrelatedtoappareldesign
□Yes?NoWhethertheCompanyheldmeetingsfortheplacementoforders
□Yes?No
5.R&DInvestments?Applicable□Notapplicable
| NamesofMain | GoalsofProjects | ProgressesofProjects | IntendedGoals | EstimatedImpacton |
| R&DProjects | FutureDevelopmentoftheCompany | |||
| Researchonkeyprocessingtechnologiesforbiomassfinishingoffunctionalwaterproof,breathable,andflameretardantfabrics | Thevarietyofflame-retardantfabricsonthemarketisrelativelylimited,withmanyusingahighproportionofaramidfibresandwithveryhighpricesandmanyproblemssuchaspoorcomfortThisprojectisaimedtodevelopflame-retardantfabricswithbetteroverallperformanceandhighercost-effectivenessbyachievingasynergisticflame-retardanteffectthroughthecombinationofmultiplefibres. | Theperformanceofcommonlyusedflame-retardantfibreswasanalysed,andtheprocessesofspinning,dyeing,finishing,andprintingwerestudied.Thecapabilitytotestandevaluateflame-retardantperformancewasestablished. | TheCompanyaimstooptimiseprocessparametersforeachprocedure,developarangeoffabricproducts,andestablishthecapacityforlarge-scaleproduction. | ThisprojectisexpectedtoenhancetheperformancequalityoftheCompany’sfunctionalproductsandstrengthencorecompetitiveness. |
| Researchanddevelopmentofkeytechnologiesforgreen,environmentallyfriendly,lightweightfunctionalcottonfibresandproducts | Green,low-carbon,andsustainabledevelopmentarethemaintrendsinthetextileindustry.Basedonacommitmenttoaresponsiblefutureandsociety,theCompanyisdedicatedtolow-carbon,sustainablegreendevelopment.Effortshavemadeinareassuchaswaterresources,energy,chemicals,wastewaterandexhaustemissions,sustainabilitycertifications,andsustainableproductinnovation.Thisprojectisaimedtovigorouslypromoteenergyconservationandemissionreduction,enhancetheCompany’sproductcompetitiveness,andfostertechnologicalprogressintheindustry. | Sixseriesofproductshavebeendeveloped,includingProbioticSkinRenewal,HCP+EcoBleaching,FullProcessNaturalFinishing,EcoWashing,HCPUpgrades,andFreshening. | TheCompanyaimstoachievequalifiedstandardsforpre-washand20post-washprobioticfunctionoffabrics;greennon-ironproductsyarnecologicalboilingandbleachingtreatmentwithouttheuseofhazardouschemicals,formaldehydeandformaldehydeaging<16ppm,ironing-freestability≥grade3.5. | ThisprojectisexpectedtomaintaintheCompany’sleadingtechnologicallevelintheindustry,andleadtheindustrydevelopment. |
| Researchonkeypreparationtechnologiesforsunlight-drivenantibacterial,antiviral,andmultifunctionalprotectivefabrics | Thisprojectisaimedtonotusesilverionsandotherantimicrobialadditives,etc.,thetextileitselfthroughthesunlightdrivewithantibacterialdisinfectionefficacy,safe,broad-spectrum,long-lasting,andnon-resistant. | Theresearchfocusedonthetrialproductionandimprovementoftheloose-styleliquidammoniafinishingequipment,thein-situcomplexationreactionbetweenliquidammoniaandfunctionalinorganicsmallmolecules,the | TheCompanyaimstocompleteprocesstrialsanddeveloparangeoffabricswithlarge-volumeproductioncapacity. | Thekeyprocessingtechnologiesandindustrialisationofthisprojectisexpectedtoalignwiththedevelopmentguidelinesofthetextileindustryandmeettheurgentdemandforhealthytextiles.Withawiderangeof |
| impactofauxiliaryfunctionalfinishingagentsonthefabric’santibacterialandantiviralproperties,aswellasthesynergisticenhancementbetweenpost-finishingwrinkle-resistantagentsandphotocatalyticself-disinfectingcompounds. | applications,itisexpectedtobeinlinewithmarkettrendsandhaveaverypromisingfuture. | |||
| Researchonkeytechnologiesforsalt-freeandlow-watergreendyeingofregeneratedcellulosefibreyarn | Thisprojectisaimedtoconductresearchonsalt-lessandwater-lessdyeingforregeneratedcellulosefibrecylinderyarns,whichhashightechnicalcontent,savesenergyandreducescarbonemissions. | Themachineequipmentmodificationshavebeencompleted,andtherelevantdyeingprocesstechnologyhasbeenoptimized,enablingmassproduction. | TheCompanyaimstocompleteavarietyofformsofdyeingsuchasbambooyarn,segmentedcolouryarn,colourpointyarn,multi-colouryarn,snowflakeyarn,rippleyarn,etc.,andtoachieveareductionofmorethan60%inwaterconsumptioncomparedwiththeadvancedlevelabroad. | ThisprojectisexpectedtoenhancetheCompany’sdyeingtechnologylevel,enrichtheCompany’svarietyofcasualwearfabrics,andstrengthentheCompany’scompetitiveness. |
DetailsaboutR&Dpersonnel:
| 2024 | 2023 | Change(%) | |
| NumberofR&Dpersonnel | 1,255 | 1,396 | -10.10% |
| R&Dpersonnelas%oftotalemployees | 12.80% | 13.26% | -0.46% |
| EducationalbackgroundofR&Dpersonnel | |||
| Bachelor | 185 | 196 | -5.61% |
| Master | 29 | 28 | 3.57% |
| AgestructureofR&Dpersonnel | |||
| Below30 | 140 | 166 | -15.66% |
| 30~40 | 716 | 847 | -15.47% |
| Above40 | 399 | 383 | 4.18% |
DetailsaboutR&Dinvestments:
| 2024 | 2023 | Change(%) | |
| R&Dinvestments(RMB) | 206,820,921.71 | 239,775,343.18 | -13.74% |
| R&Dinvestmentsas%ofoperatingrevenue | 3.40% | 4.02% | -0.62% |
| CapitalizedR&Dinvestments(RMB) | 0.00 | 0.00 | 0.00% |
| CapitalizedR&Dinvestmentsas%oftotalR&Dinvestments | 0.00% | 0.00% | 0.00% |
ReasonsforanysignificantchangetothecompositionofR&Dpersonnelandtheimpact:
□Applicable?NotapplicableReasonsforanysignificantYoYchangeinthepercentageofR&Dexpenseinoperatingrevenue:
□Applicable?NotapplicableReasonforanysharpvariationinthepercentageofcapitalizedR&Dexpenseandrationale:
□Applicable?Notapplicable
6.CashFlows
Unit:RMB
| Item | 2024 | 2023 | Change(%) |
| Subtotalofcashgeneratedfromoperatingactivities | 6,120,282,310.84 | 5,733,287,497.87 | 6.75% |
| Subtotalofcashusedinoperatingactivities | 4,876,070,158.90 | 4,878,422,960.45 | -0.05% |
| Netcashflowfromoperatingactivities | 1,244,212,151.94 | 854,864,537.42 | 45.54% |
| Subtotalofcashgeneratedfrominvestingactivities | 1,748,289,321.17 | 9,682,671,841.39 | -81.94% |
| Subtotalofcashusedininvestingactivities | 2,980,405,818.85 | 10,635,911,372.48 | -71.98% |
| Netcashgeneratedfrom/usedininvestingactivities | -1,232,116,497.68 | -953,239,531.09 | -29.26% |
| Subtotalofcashgeneratedfromfinancingactivities | 2,146,986,621.30 | 1,289,724,006.83 | 66.47% |
| Subtotalofcashusedinfinancingactivities | 2,174,973,262.02 | 1,677,384,015.94 | 29.66% |
| Netcashgeneratedfrom/usedinfinancingactivities | -27,986,640.72 | -387,660,009.11 | 92.78% |
| Netincreaseincashandcashequivalents | 17,796,953.59 | -469,281,964.23 | 103.79% |
Explanationofwhyanyofthedataabovevariessignificantly:
?Applicable□NotapplicableDuringtheReportingPeriod,thenetcashflowfromoperatingactivitiesincreasedby45.54%year-on-year,primarilyduetoanincreaseincashreceivedfromsalesofgoods.Cashinflowsfrominvestingactivitiesdecreasedby81.94%year-on-year,mainlyduetoareductioninwealthmanagementinvestments.Cashoutflowsfrominvestingactivitiesdecreasedby71.98%year-on-year,primarilyduetoareductioninwealthmanagementinvestmentspaid.Cashinflowsfromfinancingactivitiesincreasedby66.47%year-on-year,mainlyduetoanincreaseincashreceivedfromloans.Thenetcashflowfromfinancingactivitiesincreasedby92.78%year-on-year,mainlyduetoanincreaseincashreceivedfromloans.Thenetincreaseincashandcashequivalentsincreasedby103.79%year-on-year,primarilyduetotheincreaseinnetcashflowfromoperatingactivities.ReasonforanybigdifferencebetweenthenetoperatingcashflowandthenetprofitforthisReportingPeriod?Applicable□NotapplicableThiswasmainlyduetofactorssuchasdepreciationofvariousassets,fairvaluechanges,andadecreaseininventory.Forfurtherdetails,pleasereferto“(1)Supplementalinformationforcash
flowstatement”of“62.Supplementalinformationforcashflowstatement”of“VII.Notestomainitemsofconsolidatedfinancialstatements”of“PartXFinancialStatements”.VAnalysisofNon-CoreBusinesses?Applicable□Notapplicable
Unit:RMB
| Amount | As%ofTotalProfit | Source/Reason | RecurrentorNot | |
| Returnoninvestment | -46,506,250.57 | -9.94% | Returnonheld-for-tradingfinancialassets | Not |
| Gain/lossonchangesinfairvalue | -90,826,774.15 | -19.42% | Lossonchangesinfairvalueofheld-for-tradingfinancialassetsandliabilities | Not |
| Assetimpairments | -110,133,501.21 | -23.54% | Inventoryvaluationallowances | Not |
| Non-operatingincome | 9,574,940.35 | 2.05% | Incomeofnon-operatingcompensation,etc | Not |
| Non-operatingexpense | 8,534,087.54 | 1.82% | Lossondestructionandretirementofnon-operatingnon-currentassets,etc. | Not |
VIAnalysisofAssetsandLiabilities
1.SignificantChangesinAssetComposition
Unit:RMB
| Endof2024 | Beginningof2024 | ChangeinPercentage(%) | ReasonforAnySignificantChange | |||
| Amount | As%ofTotalAssets | Amount | As%ofTotalAssets | |||
| Monetarycapital | 2,055,856,788.37 | 14.76% | 1,558,252,048.03 | 11.60% | 3.16% | |
| Accountsreceivable | 849,168,539.27 | 6.10% | 826,467,684.78 | 6.15% | -0.05% | |
| Inventories | 2,019,884,406.30 | 14.50% | 2,124,139,574.70 | 15.82% | -1.32% | |
| Investmentproperty | 18,675,533.63 | 0.13% | 19,578,175.93 | 0.15% | -0.02% | |
| Long-termequityinvestments | 120,084,271.29 | 0.86% | 143,537,479.77 | 1.07% | -0.21% | |
| Fixedassets | 6,053,755,987.08 | 43.46% | 5,597,692,505.07 | 41.68% | 1.78% | |
| Constructioninprogress | 95,026,709.37 | 0.68% | 868,496,878.41 | 6.47% | -5.79% | |
| Right-of-useassets | 470,238,928.19 | 3.38% | 463,226,419.21 | 3.45% | -0.07% | |
| Short-termloan | 849,686,824.33 | 6.10% | 580,704,772.27 | 4.32% | 1.78% | |
| Contractliability | 191,551,003.79 | 1.38% | 188,073,335.89 | 1.40% | -0.02% | |
| Long-termborrowings | 396,244,110.21 | 2.84% | 259,992,974.40 | 1.94% | 0.90% | |
| Leaseliabilities | 91,353,320.80 | 0.66% | 86,580,224.41 | 0.64% | 0.02% | |
Indicatewhetheroverseasassetsaccountforalargeproportionofthetotalassets.?Applicable□Notapplicable
| Asset | ReasonforFormation | AssetValue(RMB) | Location | OperationModel | ControlMeasurestoProtectAssetSafety | ReturnGenerated(RMB) | As%oftheCompany’sEquity | MaterialImpairmentRisk(yes/no) |
| HongKongcompany | Set-up | 269,184,627.77 | HongKong | Marketing | MainmanagementpersonnelsentbytheCompanyastheparent | 20,696,306.81 | 2.74% | Not |
| Overseasproductionbases | Set-up | 4,554,415,091.97 | SoutheastAsia | Manufacturing | MainmanagementpersonnelsentbytheCompanyastheparent | 158,438,088.37 | 46.36% | Not |
2.AssetsandLiabilitiesatFairValue?Applicable□Notapplicable
Unit:RMB
| Item | BeginningAmount | Gain/LossonFair-ValueChangesinTheReportingPeriod | CumulativeFair-ValueChangesRecordedinEquity | ImpairmentAllowanceforTheReportingPeriod | PurchasedinTheReportingPeriod | SoldintheReportingPeriod | OtherChanges | EndingAmount |
| Financialassets | ||||||||
| 1.Held-for-tradingfinancialassets(excludingderivativefinancialassets) | 713,539,243.86 | -110,037,211.06 | 1,421,182,973.92 | 1,331,188,784.27 | 693,496,222.45 | |||
| 2.Derivativefinancialassets | 10,261,031.53 | -5,766,681.34 | 2,108,000.00 | 6,125,900.00 | 476,450.19 | |||
| 5.Othernon-currentfinancialassets | 88,750,000.00 | -5,950,000.00 | 82,800,000.00 | |||||
| Subtotaloffinancialassets | 812,550,275.39 | -121,753,892.40 | 1,423,290,973.92 | 1,337,314,684.27 | 776,772,672.64 | |||
| Other | 18,248,205.76 | -50,005.02 | -8,013,300.15 | 10,184,900.59 | ||||
| Totaloftheabove | 830,798,481.15 | -121,753,892.40 | -50,005.02 | 1,423,290,973.92 | 1,337,314,684.27 | -8,013,300.15 | 786,957,573.23 | |
| Financialliabilities | 46,785,831.47 | 30,927,118.25 | 218,400.00 | 218,400.00 | 15,858,713.22 | |||
Contentofotherchange:
Changesinaccountsreceivablefinancing.SignificantchangestothemeasurementattributesofthemajorassetsintheReportingPeriod:
□Yes?No
3.RestrictedAssetRightsasatthePeriod-EndFordetails,seePartX.VII.23.AssetswithrestrictedownershipandusingrightinthisReport.VII.InvestmentsMade
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 | InvestmentsattheBeginningofthePeriod | Gain/LossonFair-ValueChangesintheReportingPeriod | CumulativeFair-ValueChangesRecordedinEquity | PurchasedintheReportingPeriod | SoldintheReportingPeriod | InvestmentsattheEndofthePeriod | ProportionOfClosingInvestmentAmountintheCompany’sEndingNetAssets |
| Foreignexchangeoption | 56,400 | 56,400 | 0 | 0 | 28,552.1 | 84,952.1 | 0 | 0.00% |
| Total | 56,400 | 56,400 | 0 | 0 | 28,552.1 | 84,952.1 | 0 | 0.00% |
| WhethersignificantchangesoccurredtotheCompany’saccountingpolicyandspecificaccountingprinciplesofderivativesintheReportingPeriod | Nosignificantchanges | |||||||
| comparedtothepreviousReportingPeriod | |
| Actualgain/lossintheReportingPeriod | 1.Asat31December2024,theCompanyhadnotheldanyoutstandingfinancialderivativecontractsthathavenotyetmatured.2.FromJanuarytoDecember2024,theCompanyhadfinancialderivativesmaturingwithatotalamountofUSD134million,allexecutedaccordingtothecontracts,withadeliveryofUSD134millionandalossofRMB4,694,400,allrelatedtoforeignexchangeoptions. |
| Effectivenessofhedges | TheCompanyconductsforeignexchange(FX)derivativetransactionswiththeintentionofhedging.Specifically,thebusinessiscarriedouttofixcosts,avoidexchangeraterisksandimproveresistanceagainstFXratefluctuations.Asaresult,theCompanyhasgainedbettercapabilitiesofavoidingandpreventingtherisksofFXratefluctuations,andthefinancialrobustnessoftheCompanyhasbeenenhanced. |
| Capitalsourceforderivativeinvestment | Ownfunds. |
| AnalysisonrisksandcontrolmeasuresofderivativeproductsheldintheReportingPeriod(includingbutnotlimitedtomarketrisk,liquidityrisk,creditrisk,operationrisk,lawrisk,etc.) | TheCompanyconductedderivativesproductstransactioninorderforhedging.Andtheforwardsettlementhedgingwasoperatedbyinstalments,withtherelevantamountnotmorethantheplannedderivativesproductstransactions.Andallderivativesproductstransactionwaszero-deposit.Meanwhile,theCompanyhadacompleteriskcontrolsystemforsufficientanalysisandpreventionofpossibleriskssuchasmarketrisk,liquidityriskandcreditrisk,operationriskandriskoflawsandregulation.1.Marketrisk:Whentheinternationalanddomesticeconomicsituationschange,thecorrespondingchangesinexchangeratesandinterestratesmayhaveanadverseimpactonthefinancialderivativetransactionsoftheCompany.Precautions:TheCompanychoosesfinancialinstrumentswithsimplestructures,highliquidityandcontrollableriskandstrictlycontrolsthescaleofderivativetransactions,performingthembystagesandinbatches.Meanssuchasextensionandbalancesettlementcanbeadoptedtoensurecontractperformanceafterthecontractexpires.2.Liquidityriskandcreditrisk:CreditriskariseswhentheCompanyorcounterpartiesintransactionscouldn’tperformcontractsduenow,toliquidityorotherfactorsthatresultinfurthereconomicloss.Precautions:Thederivativetransactionscanonlybedonewithfinancialinstitutionsqualifiedforderivativetransactions,asauthorizedbyrelevantnationalauthoritiesorfinancialorforeignexchangeauthoritiesinthecountryorregionwheretheCompanyoperates.Derivativetransactionswithotherinstitutionsorindividualsarenotallowedsoastocontrolrelatedriskconcerningcounterparties.3.Internalriskcontrol:Derivativetransactionsarehighlyspecializedandcomplex.Therefore,thereisariskoflossinderivativetransactionsduetotheimperfectinternalcontrolsystemwhenbusinessisperformed.Precautions:TheCompanyshouldstrictlyimplementManagementPolicyforInvestmentsinSecuritiesandDerivativeTransactionsofLuThaiTextileCo.,Ltd.,continuouslyoptimizethebusinessoperationprocessandauthorizationmanagementsystem,strengthenprofessionalethicseducationandbusinesstrainingforrelevantpersonnel,clarifyjobresponsibilities,engageinderivativetransactionbusinessstrictlywithinthescopeofauthorization,andestablishatimelyreportingsystemforabnormalconditionstoavoidoperationalrisks.4.Riskoflawsandregulation:DerivativetransactionsoftheCompanymustbestrictlyincompliancewithrelevantnationallawsandregulations.Otherwise,signedcontracts,commitmentsandotherlegaldocumentsmayentailcomplianceriskandregulatoryriskintermsofeffectivenessandenforceability.Precautions:TheCompanyshouldstrengthenthesupervisionandinspectionofthestandardizationofderivativetransactions,theeffectivenessofinternalcontrolmechanism,andtheauthenticityofinformationdisclosuretoavoidpossiblelegalrisks.TheCompanyhasfulfilledrelevantapprovalproceduresforitsderivativetransactionsbusiness,whichisinlinewiththerelevantnationallaws,regulations,theArticlesofAssociation,theManagementRulesforDerivativeTradingofLuThaiCompany,theProposalontheCompany’sDerivativeTransactionPlandeliberatedandadoptedatthe9thmeetingofthe10thsessionoftheBoardofDirectorsheldon26May2023,andtheProposalontheCompany’sDerivativeTransactionPlandeliberatedandadoptedatthe22ndmeetingofthe10thsessionoftheBoardofDirectorsheldon28May2024,andfulfilledtherelevantinformationdisclosureobligations. |
| ChangesofmarketpricesorfairvaluesintheReporting | InaccordancewiththerelevantprovisionsandguidelinesoftheAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstrumentsandtheAccountingStandardsforBusinessEnterprisesNo.37-PresentationofFinancialInstrumentsissuedbytheMinistryofFinance,theCompanytooktherelevantaccountingmeasuresforitsbusinessofFXderivativetransactionstoreflecttherelevantitemsinthebalancesheetandtheincomestatement.During |
| Periodoftheinvestedderivatives.Andtheanalysisonthefairvalueofthederivativesshouldincludethespecificusemethodsandtherelevantassumptionsandparameters. | theReportingPeriod,theCompanydeterminedthefairvalueofFXoptionsbasedonthebank’sforwardoptionquotationsattheendoftheperiod. |
| Lawsuit(ifapplicable) | N/A |
| Disclosuredateofboardofdirectorsannouncementonapprovalofderivativeinvestment(ifany) | 27May2023 |
| Disclosuredateofboardofdirectorsannouncementonapprovalofderivativeinvestment(ifany) | 29May2024 |
2)DerivativeInvestmentsforSpeculativePurposesduringtheReportingPeriod
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
5.UseofFundsRaised?Applicable□Notapplicable
(1)OverallUseofFundsRaised?Applicable□Notapplicable
Unit:RMB’0,000
| RaisingYear | RaisingManner | SecuritiesListingDate | TotalofRaisedCapital | NetProceeds(1) | TotalofRaisedCapitalUsedinthisPeriod | CumulativeAmountofRaisedCapitalUsed(2) | UsageRatioofRaisedFundsattheEndoftheReportingPeriod(3)=(2)/(1) | TotalofRaisedCapitalwhichPurposeisChangedintheReportPeriod | CumulativeAmountofRaisedCapitalwhichPurposeisChanged | RatioofCumulativeAmountwhichPurposeisChanged | TotalofRaisedCapitalUnused | PurposeandDirectionofRaisedCapitalUnused | AmountofRaisedCapitalUnusedforTwoYears |
| 2020 | Converti | 13May | 140,0 | 138,80 | 9,897. | 144,394. | 104.03 | 0 | 51,371.5 | 37.01% | 0 | The | 0 |
| blecorporatebonds | 2020 | 00 | 0 | 11 | 95 | % | 8 | remaininginterestfromtheraisedfundsamountstoRMB36.11,whichwillbepermanentlyaddedtotheworkingcapital. | |||||
| Total | -- | -- | 140,000 | 138,800 | 9,897.11 | 144,394.95 | 104.03% | 0 | 51,371.58 | 37.01% | 0 | -- | 0 |
| Generalusesituationofraisedcapital | |||||||||||||
| (I)AmountofactualraisedcapitalandarrivaldateUponapprovalbytheCSRCinthedocument“ZJXK[2020]299”,theCompanypubliclyissued14,000,000convertiblebondson9April2020atparvalueRMB100,theissuedamountwasRMB1.4billion,andtheCompanyactuallyreceivedtheamountofraisedcapitalRMB1,388millionafterdeductedtheunderwritingfeeRMB12million.TheaboveamountwasremittedincashinRMB.Afterdeductedlegalfee,accountantfee,creditratingfee,informationdisclosurefee,issuingcommissionandothercostsRMB2.54millionintotalfromtheaboveactuallyraisedcapital,thenetamountofraisedcapitalwasRMB1,385.46million,whichenteredtheaccounton15April2020,andGrantThorntonInternationalLtd(SpecialGeneralPartnership)issuedthecapitalverificationreportwithreferenceNo.GrantThorntonVerification[2020]371ZC0090foritafterverification.(II)UsesituationandbalanceofraisedcapitalAsat31December2024,theCompanyhaddirectlyinvestedatotalofRMB1,443,949,500ofraisedfundsintothefundraisingprojects.Inaccordancewithrelevantregulations,theremaininginterestfromtheraisedfundsamountstoRMB36.11,whichwillbepermanentlyaddedtotheworkingcapital.Allspecialaccountsfortheraisedfundswereclosedon28November2024,andthecorrespondingfundraisingsupervisionagreementwasalsoterminated. | |||||||||||||
(2)CommitmentsonProjectswithFundsRaised?Applicable□Notapplicable
Unit:RMB’0,000
| FinancingProjectName | SecuritiesListingDate | CommittedInvestmentProjectsandUseDirectionofOverRaisedCapital | ProjectNature | WhethertheProjectHasBeenAltered(orPartiallyAltered) | TotalofCommittedInvestmentofRaisedCapital | AdjustedTotalAmountoftheInvestment(1) | AmountInvestedinthisReportPeriod | AccumulativeInvestmentAmountattheEndoftheReportingPeriod(2) | InvestmentScheduleasthePeriod-end(3)=(2)/(1) | DateofReachingIntendedUseoftheProject | RealizedIncomeintheReportingPeriod | AccumulativeBenefitsRecordedasattheEndoftheReportingPeriod | WhetherReachedAnticipatedIncome | WhetherProjectFeasibilityChangedSignificantly |
| Committedinvestmentprojects | ||||||||||||||
| Functionalfabricsmarteco-parkproject(Phase1) | 13May2020 | Functionalfabricsmarteco-parkproject(Phase1) | Productionandconstruction | Yes | 85,000 | 58,628.42 | 0 | 58,628.42 | 100.00% | 31December2024 | 0 | 0 | N/A | Not |
| Overseashigh-endfabricproductionlineproject(PhaseI) | 13May2020 | Overseashigh-endfabricproductionlineproject(PhaseI) | Productionandconstruction | Yes | 25,000 | 34,000 | 4,832.2 | 35,813.63 | 105.33% | 31December2024 | 0 | 0 | N/A | Not |
| Supplementworkingcapital | 13May2020 | Supplementworkingcapital | Supplementaryliquidity | Yes | 28,800 | 46,171.58 | 5,064.91 | 49,952.9 | 108.19% | 0 | 0 | N/A | Not | |
| Subtotalofcommittedinvestmentprojects | -- | 138,800 | 138,800 | 9,897.11 | 144,394.95 | -- | -- | 0 | 0 | -- | -- | |||
| Usedirectionofoverraisedcapital | ||||||||||||||
| N/A | 13May2020 | N/A | N/A | Not | 0 | N/A | Not | |||||||
| Repaymentofbankloans(ifany) | -- | 0 | 0 | 0 | 0 | 0.00% | -- | -- | -- | -- | -- | |||
| Supplementworkingcapital(ifany) | -- | 0 | 0 | 0 | 0 | 0.00% | -- | -- | -- | -- | -- | |||
| Subtotalofusedirectorofoverraisedcapital | -- | 0 | 0 | 0 | 0 | -- | -- | 0 | 0 | -- | -- | |||
| Total | -- | 138,800 | 138,800 | 9,897.11 | 144,394.95 | -- | -- | 0 | 0 | -- | -- | |||
| Explainprojectbyprojectsituationandreasonsthatitdidnotreachtheplannedprogressorexpectedreturn(includingreasonforinputting“N/A”for“Whetherreachedtheexpectedbenefit”) | The“FunctionalFabricIntelligentEco-parkProject(PhaseI)”andthe“OverseasProductLineProjectofHigh-gradeFabrics(PhaseI)”wereinprogress.Neitherofthetwoprojectshasyetachievedscaledproductionormettheexpectedreturns. | |||||||||||||
| Noteforsignificantchangeofprojectfeasibility | N/A | |||||||||||||
| Amount,purposeanduseprogressofoverraisedcapital | N/A | |||||||||||||
| Changeofimplementationsiteofcapitalraisingproject | N/A | |||||||||||||
| Adjustmentofimplementationmodeofcapitalraisingproject | N/A | |||||||||||||
| Advanceinvestmentanddisplacementofcapitalraisingproject | Applicable | |||||||||||||
| By30April2020,thetotalamountofdisplacedcapitalwasRMB191,428,800,includingtheamountRMB189,838,800investedintheprojectwiththeself-raisedcapitaloftheCompanyinadvance,andpaymentofissuingcostRMB1.59millionwithitsself-raisedcapital. | ||||||||||||||
| Temporarysupplementtoworkingcapitalwithunusedraisedcapital | N/A | |||||||||||||
| Balanceofraisedcapitalafterimplementofprojectandrelevantreasons | N/A | |||||||||||||
| Purposeandusedirectionofunusedraisedcapital | Asat31December2024,theunusedraisedfundsamountedtoRMB0. | |||||||||||||
| Problemsexistinginuseandinformationdisclosureofraisedcapitalorothersituation | N/A | |||||||||||||
(3)ChangesinProjectswithFundsRaised?Applicable□Notapplicable
Unit:RMB’0,000
| Financing | Raising | Itemsafter | Corresponding | Total | Actual | Actual | Investment | Dateof | Realized | Whether | Whether |
| ProjectName | Manner | Changes | OriginalCommittedItems | RaisedFundstoBeInvestedintheNewProject(1) | InvestmentAmountintheReportingPeriod | AccumulativeInvestmentAmountbytheEndoftheReportingPeriod(2) | ProgressbytheEndoftheReportingPeriod(3)＝(2)/(1) | ReachingIntendedUseoftheProject | IncomeintheReportingPeriod | ReachedAnticipatedIncome | OccurredSignificantChangesinProjectFeasibility |
| PublicissuanceofA-shareconvertiblebondsin2020 | Issuanceofconvertiblecorporatebondstounspecifiedinvestors | Overseashigh-endfabricproductionlineproject(PhaseI) | High-endprintinganddyeingfabricproductionlineproject,functionalfabricsmarteco-parkproject | 34,000 | 4,832.2 | 35,813.63 | 105.33% | 31December2024 | 0 | N/A | Not |
| Total | -- | -- | -- | 34,000 | 4,832.2 | 35,813.63 | -- | -- | 0 | -- | -- |
| Statementonthereasonsforalteration,thedecision-makingprocedure,andtheinformationdisclosure(byspecificproject) | 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. | ||||||||||
| Statementonthefailuretoachievethescheduledprogressand/ortheanticipatedreturnsanditsreasons(byspecificproject) | N/A | ||||||||||
| Notesofconditionofsignificantchangesoccurredinprojectfeasibilityafterchanges | N/A | ||||||||||
VIII.SaleofMajorAssetsandEquityInterests
1.SaleofMajorAssets
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
2.SaleofMajorEquityInterests
□Applicable?NotapplicableIX.MajorSubsidiaries?Applicable□NotapplicableMajorfully/majority-ownedsubsidiariesandthoseminority-ownedsubsidiarieswithanover10%effectontheCompany’snetprofit:
Unit:RMB’0,000
| Subsidiary | TheCompanyTypeofChange | PrincipalActivity | RegisteredCapital | TotalAssets | NetAssets | OperatingRevenue | OperatingProfit | NetProfit |
| LuFengCompanyLimited | Subsidiary | Fabric | 70616.00 | 174,517.38 | 153,855.63 | 133,551.47 | 9,831.11 | 8,993.10 |
| ShandongLulianNewMaterialsCo.,Ltd. | Subsidiary | Fabric | 90000.00 | 62,870.55 | 57,078.58 | 16,284.77 | -3,241.49 | -3,212.34 |
SubsidiariesobtainedordisposedintheReportingPeriod:
□Applicable?NotapplicableInformationaboutmajormajority-andminority-ownedsubsidiaries:
LuFengCompanyLimitedistheholdingsubsidiaryoftheCompany.Registrationplace:Zibo,Shandong;registeredcapital:RMB706.16million.Themainlymanufacturingandsellingtextileprintinganddyeingproductsandtheproductsofclothingandgarments,anditwereauthenticatedtobehigh-techenterpriseinOctober2014.DuringtheReportingPeriod,netprofitincreasedyear-on-year,mainlyduetothedecreaseinrelatedexpensesandimpairmentlossprovisionscomparedtothepreviousyear.ShandongLulianNewMaterialsCo.,Ltd.,withitsregisteredlocationinZibo,Shandong,andaregisteredcapitalofRMB900million,wasapprovedbytheCompany’s10thBoardofDirectorsatits23rdmeeting.TheCompanyacquiredtheminorityshareholder’sequity,andtheregistrationprocesswascompletedon12July2024,makingitawholly-ownedsubsidiaryoftheCompanythatprimarilyengagesintheproductionandsaleoffunctionalfabrics.DuringtheReportingPeriod,netprofitincreasedyear-on-year,mainlyduetothedecreaseinimpairmentlossprovisionsandrelatedcostsandexpensescomparedtothepreviousyear.X.StructuredBodiesControlledbytheCompany?Applicable□NotapplicableSee“XInterestsinotherentities”ofPartX.XI.Prospects
1.IndustrycompetitionanddevelopmenttrendThetextileindustryofChinahascertainstrengthintheglobaltextileindustry,mainlyshowinginindustrychain,technology,labourefficiencyandotheraspects.Theglobaleconomicdownturnhasimpactedtheeconomyandtradeofvariouscountriesinrecentyears,butthecompetitiveedgeofthetextileindustryofChinaintheinternationalmarketstillremains.Whenthedomesticenvironmentalprotectionrequirementsarebecomingmorestringent,productioncostsaregoingupandthetransformationandupgradepolicyisimplementedinChina,thetextileindustrymayfacestructuraladjustment.Currently,fabricdemandchangetowardssmallbatch,multiplecategories,diversification,functionalityandleisure.
2.DevelopmentstrategyoftheCompanyTheCompanyisalarge-scaletextileenterprisewithacompleteindustrialchainintegratingspinning,dyeing,weaving,post-treatmentandgarmentmanufacturing.Itistheworld’slargestproductionbaseforyarn-dyedfabricsforshirts,providingblendingofthreemajorseriesoffabricsofpurecottonandnaturalfibre,cottonandnaturalfibreaswellascottonandfunctionalfibre.Andthenewlydevelopedknittedfabricandfunctionalfabricarealsopopularinmarkets.InordertomaintaintheoutstandingadvantagesoftheCompanyinglobalyarn-dyedfabrics,theCompanyispushingintelligentmanufacturingupgradesandintegratingdomesticandforeignadvantageous
resourcestodeepeninternationalizationoftheCompanywithregionaladvantages.TheCompanyiscommittedtocombiningqualityinnovationwithcustomerneedstomeetthediversedemandsofitscustomers.Furthermore,theCompanyincreasesinvestmentininnovationtoimproveR&Danddesignanddevelopnewfabrics.TheCompanyholdstheconceptoflow-carbonenvironmentalprotectionforsustainabledevelopment.
3.Businessplan(thefollowingdescriptiondoesnotconstituteanycommitmentoftheCompany)
(1)Intermsofcorporategovernance,inordertoensurethehealthy,stableandsustainabledevelopmentoftheCompanyattheinstitutionallevel,theCompanywillestablishaninternalcontrolsystemtoimproveorganizationalstructure,corporategovernancestructureandriskpreventionmechanism.
(2)Intheaspectofmarketdevelopment,theCompanyactivelydevelopsemergingmarketsonthebasisofmaintainingtheexistingmarket,accuratelyunderstandsmarkettrendandcustomers’demand,andfullyimprovesservicecapacity,sothattheCompanycouldbeaglobalgreenfashiontextileandapparelgroupbasedonleadingfabric.
(3)Intheaspectofbusinessadministration,theCompanycontinuallyimplementsthestrategyof“qualityandefficiencyimprovement”and“comprehensiveinternationalization”,makesmoreeffortsindevelopingmarket,adjustingstructureandimprovingcapacity,promotesinnovationwhilemeetingmarketdemand,integratesinternalandexternalresources,deepenstheapplicationofinformationtechnologyandbigdata,buildsupaflexible,rapidresponse,efficientandtraceablesupplysystemchain,andeffectivelyimprovesoperationalcapabilities.
(4)Intermsofindustrialoverallarrangement,inordertomaintaintheleadingpositionoftheCompanyintheglobalyarn-dyedindustry,theCompanyrationallyallocatesdomesticandforeignresourcesandimprovesproductionefficiencywhilekeepingproductqualityrelyingontheadvantagesofMilanandTokyoOfficeinmarketdevelopment,designandR&D,customerserviceandtalentdevelopment,andthecostadvantagesoftheoverseasproductionbases.
4.Capitalneeds,sourcesandplanningThe“OverseasProductLineProjectofHigh-gradeFabrics”(PhaseI)hasbeenlargelycompletedandisnowenteringthecapacityandefficiencyramp-upstage.Thesubsequentfundingrequirementsaremainlyforoperatingcapital,sourcedfromtheCompany’sownfundsandself-raisedcapital.
5.Majorpotentialrisksandcountermeasures
(1)Impactofeconomicenvironment:Theglobaleconomicslowdownandongoinggeopoliticalriskscontinuetopersist.TheCompanywillstillfacechallengesfromchangesininternationaltradepoliciesandmarketdynamicsinthefuture.TheCompanywillleverageitsglobalindustriallayoutandverticalsupplychainadvantages,coordinatevariousresourcesbothdomesticallyandinternationally,andcontinuouslyexploredomesticandinternationalmarkets.
(2)Pricefluctuationofrawmaterials:cottonisthemajorproductionmaterialoftheCompany,andthepriceofcottonisimpactedbymarketsupplyanddemand,climate,policy,exchangerateandotherfactors.Therefore,theCompanywillcoordinatedomesticandinternationalproduction,closelymonitorglobalcottonmarkettrends,developrationalprocurementstrategies,andfullyleveragetheadvantagesofglobalprocurementofhigh-qualityrawcotton.
(3)Changeofexchangerate:TheCompanyhasasignificantproportionofimportandexportbusinessaswellasoverseasassets,withmosttransactionsdenominatedinUSdollars.Inrecentyears,thetwo-wayfluctuationoftheRMBexchangeratehasbecomethenorm,andexchangerate
elasticityhassignificantlyincreased.Tomitigatetheimpactofexchangeratefluctuations,theCompanyadherestoaneutralapproachtoexchangerateriskmanagement,integratingexchangerateriskintodailyoperations.Basedontheactualneedsofproductionandbusiness,theCompanyflexiblyusesvarioustypesofforeignexchangederivativeswithdifferentmaturitiesforhedging,aimingtominimizetheimpactofexchangeratefluctuationsontheCompany’sfinancialperformance.Firstly,theCompanyappropriatelyconductedforeignexchangehedging,usingfinancialderivativessuchasforwards,swaps,andoptionportfoliostoavoidcurrencyrisks.Secondly,theCompanymadereasonablearrangementonsettlementdayandcurrencyandvigorouslypromotedcross-bordersettlementwithRMBtoavoidexchangerate-relatedrisks.Thirdly,theCompanyadjustedtheRenminbiandforeign-currencyliabilitiesstructuretoactivelypreventcurrencyfluctuationrisks.XII.CommunicationswiththeInvestmentCommunitySuchasResearches,InquiriesandInterviewsduringtheReportingPeriod?Applicable□Notapplicable
| DateofVisit | PlaceofVisit | WayofVisit | TypeofVisitor | Visitor | ContentsandMaterialsProvided | IndextoMainInquiryInformation |
| 31January2024 | TheCompany’sconferenceroom | Byphone | Institution | Institutionalinvestor | AboutbasicinformationoftheCompany | Fordetails,pleaserefertotheInvestorRelationsManagementInformation20240201disclosedbythecompanyontheCninfowebsiteon1February2024 |
| 12April2024 | TheCompany’sconferenceroom | Byphone | Institution | Institutionalinvestor | AboutbasicinformationoftheCompany | Fordetails,pleaserefertotheInvestorRelationsManagementInformation20240415disclosedbythecompanyontheCninfowebsiteon15April2024 |
| 29April2024 | TheCompany’sconferenceroom | Byphone | Institution | Institutionalinvestor | AboutbasicinformationoftheCompany | Fordetails,pleaserefertotheInvestorRelationsManagementInformation20240430disclosedbythecompanyontheCninfowebsiteon30April2024. |
| 8May2024 | TheCompany’sconferenceroom | Onlineexchange | Other | Investor | AboutbasicinformationoftheCompany | Fordetails,pleaserefertotheInvestorRelationsManagementInformation20240508disclosedbythecompanyontheCninfowebsiteon8May2024 |
| 13May2024 | TheCompany’sconferenceroom | One-on-onemeeting | Institution | Institutionalinvestor | AboutbasicinformationoftheCompany | Fordetails,pleaserefertotheInvestorRelationsManagementInformation20240516disclosedbythecompanyontheCninfowebsiteon16May2024 |
| 16May2024 | TheCompany’sconferenceroom | One-on-onemeeting | Institution | Institutionalinvestor | AboutbasicinformationoftheCompany | Fordetails,pleaserefertotheInvestorRelationsManagementInformation20240516disclosedbythecompanyontheCninfowebsiteon16May2024 |
| 4June2024 | TheCompany’s | One-on-one | Institution | Institutionalinvestor | Aboutbasicinformationof | Fordetails,pleaserefertotheInvestorRelations |
| conferenceroom | meeting | theCompany | ManagementInformation20240605disclosedbythecompanyontheCninfowebsiteon5June2024 | |||
| 30August2024 | TheCompany’sconferenceroom | Byphone | Institution | Institutionalinvestor | AboutbasicinformationoftheCompany | Fordetails,pleaserefertotheInvestorRelationsManagementInformation20240830disclosedbytheCompanyon30August2024ontheCninfowebsite. |
| 2September,2024 | TheCompany’sconferenceroom | Byphone | Institution | Institutionalinvestor | AboutbasicinformationoftheCompany | Fordetails,pleaserefertotheInvestorRelationsManagementInformation20240903disclosedbythecompanyontheCninfowebsiteon3September2024. |
| 31October2024 | TheCompany’sconferenceroom | Byphone | Institution | Institutionalinvestor | AboutbasicinformationoftheCompany | Fordetails,pleaserefertotheInvestorRelationsManagementInformation20241101disclosedbythecompanyontheCninfowebsiteon1November2024. |
| 31October2024 | TheCompany’sconferenceroom | Byphone | Institution | Institutionalinvestor | AboutbasicinformationoftheCompany | Fordetails,pleaserefertotheInvestorRelationsManagementInformation20241101disclosedbythecompanyontheCninfowebsiteon1November2024. |
XIII.TheFormulationandImplementationoftheMarketValueManagementSystemandValuationPromotionPlanHastheCompanyestablishedamarketvaluemanagementsystem?
□Yes?NoHastheCompanydisclosedavaluationimprovementplan??Yes□NoInaccordancewiththeCSRC’sGuidelineNo.10forListedCompanies—MarketValueManagement,companieswithlong-termmarketvaluebelowpararerequiredtodisclosetheirplansforimprovingthecompany’svaluation.Asat31December2024,thepriceofLuthaiA-shareshadfallenintoalong-termbelow-parsituation.Therefore,inlinewithitsindustryposition,developmentstrategy,andbusinessplans,theCompanyhasformulatedanddisclosedavaluationenhancementplan.Forspecificdetails,pleaserefertotheValuationEnhancementPlanofLuThaiTextileCo.,Ltd.publishedbytheCompanyon1March2025onhttp://www.cninfo.com.cn.XIV.Implementationofthe“QualityandEarningsDualImprovement”ActionPlanHastheCompanydiscloseditsactionplanfor“dualenhancementofqualityandprofitability”?
□Yes?No
PartIVCorporateGovernanceI.GeneralInformationofCorporateGovernanceDuringtheReportingPeriod,theCompanystrictlyconformstoCompanyLaw(Revisedin2023),SecuritiesLaw(Revisedin2019),GoverningRulesforListedCompanyinChina,Self-RegulatoryGuidelinesNo.1forCompaniesListedonShenzhenStockExchange-StandardOperationofListedCompaniesontheMainBoard(RevisedinDecember2023)andAdministrativeMeasuresforIndependentDirectorsofListedCompaniesaswellasrelevantstipulationsandrequirementsfromnormativedocuments,continuouslyimprovesthecorporategovernancestructure,safeguardsthestandardizedandefficientoperationofthreeCommitteesandoneManagement,formsasoundandeffectiveinternalcontrolsystemtosafeguardlegitimateinterestsoftheCompanyandinvestors.DuringtheReportingPeriod,theCompanymaderevisionstotherelevantprovisionsofnineregulations,includingtheArticlesofAssociationofLuThaiTextileCo.,Ltd.andtheRulesofProcedureoftheBoardofDirectorsofLuThaiTextileCo.,Ltd.
1.ShareholdersandShareholders’GeneralMeeting.TheCompanyshallconveneandholdtheshareholdersmeetinginstrictaccordancewiththeShareholdersMeetingProceduralRules,andguaranteethatallshareholders,especiallytheminorityshareholders,couldhaveequalstatusandfullyexecutetheirrights.
2.TherelationshipbetweenthemajorityshareholdersandtheCompanyTheCompany’smajorityshareholdersactedaccordingtorelevantstandardswithoutdirectlyorindirectlyinterveningtheCompany’sdecision-makingandoperatingactivities;theCompanywasindependentwithitsmajorityshareholdersinbusiness,personnel,assets,organization,finance,andtheCompany’sBoardofDirectors,BoardofSupervisorsandInternalOrganscouldcompletelyindependenttooperate.TherewasnosituationaboutannexingtheassetsoroccupationoffundsoftheCompanybyprincipalshareholdersorothereventsoninfringingtheinterestoftheCompanyandothershareholders.
3.ThedirectorsandBoardofDirectorsTheCompany’sBoardofDirectorsshallperformtheirdutiesinstrictaccordancewithArticlesofAssociationandtheRulesofProceduresfortheBoardofDirectors.UndertheBoardofDirectors,theCompanyestablishedtheStrategyCommittee,theAuditCommittee,theNominationCommitteeandtheRemunerationCommittee.Variousspecializedcommitteeswouldfullyperformtheirfunctionsandfurtherguaranteethehigh-efficientoperationandthescientificdecision-makingoftheBoardofDirectors.
4.SupervisorsandBoardofSupervisorsTheCompany’sBoardofSupervisorswillperformtheirdutiesinstrictaccordancewithArticlesofAssociationandtheRulesofProceduresfortheBoardofSupervisors.ThenumberofmembersandthecompositionoftheCompany’sBoardofSupervisorsshallcomplywithapplicablelawsandregulations;theCompany’ssupervisorsshallstrictlyabidebyrelevantprovisions,seriouslyexecutetheirdutiesandsupervisetheCompany’sfinancialstatusandthelegalexecutionofdutiesofthedirectors,presidentandotherseniormanagersbyadheringtotheprincipleofbeingresponsiblefortheshareholdersandthelistedcompany.
5.InformationdisclosureTheCompanystrictly,inaccordancewiththelaws,regulationsandtheArticlesofAssociation,disclosedrelevantinformationinatrue,accurate,completeandtimelymanner.TheCompanyhas
formulatedtheInformationDisclosureManagementSystem,InformationInsiderRegistrationManagementSystemandInvestorRelationsManagementSystem,etc.,toensurethefairness,opennessandfairnessofinformationdisclosure.
6.InvestorrelationsmanagementDuringtheReportingPeriod,asrequiredbyInvestorRelationsManagementSystem,tomaintaingoodcommunicationwithinvestors,theCompanyacceptedon-siteinvestigationsandconsultationsofinvestorsthroughon-siteinvestigationsandtelephoneconsultations,andpromptlyansweredquestionsaskedbyinvestorsontheSZSEEasy-IR.Indicatebytickmarketwhetherthereisanymaterialincompliancewiththeapplicablelaws,administrativeregulationsandtheCSRCrulesforthegovernanceoflistedcompanies.
□Yes?NoNosuchcasesintheReportingPeriod.II.TheCompany’sIndependencefromItsControllingShareholderandActualControllerinAssets,Personnel,FinancialAffairs,OrganizationandBusiness
1.Asforthebusiness:theCompanyshallestablishitsindependentandcompletebusinesssystemwiththemarket-orientedindependentmanagementability.Intherespectofbusinessoperation,theCompanyiscompletelyseparatedfromthecontrollingshareholders.
2.Asforthepersonnel:theCompany’slabour,personnelandremunerationmanagementdepartmentsshallbeindependentwiththeirownsoundsystems,andseparatedfromthatofthesubstantialshareholder.TheCompany’sseniormanagersarenotallowedtosimultaneouslyholdanyofficeinanyshareholder’sunit.
3.Asfortheassets:theCompanypossessestheentireandindependentlegalpersonpropertyrightwithindependentandperfecttheproductionsystem,auxiliaryproductionsystemsandsupportingfacilities;andpossessestheindependentownershipoftheintangibleassetssuchastheindustrialproperty,trademarks,non-patentedtechnology.
4.Asfortheinstitution:theCompany’sBoardofDirectors,BoardofSupervisorsandotherinternalorganizationshallbesoundandinvolvedinindependentoperation.Thesubstantialshareholdershalllegallyexecuteitsrights,fulfilcorrespondingobligationsandnotsurpasstheshareholdersmeetingtodirectlyorindirectlyinterferetheCompany’sbusinessactivities.
5.Asforthefinance:theCompanypossessesindependentfinancialdepartmentswithnormativefinancialaccountingsystemandfinancialmanagementsystemaswellasinternalcontrolsystemwithindependentbankaccount.III.HorizontalCompetition
□Applicable?NotapplicableIV.AnnualandSpecialGeneralMeetingsConvenedduringtheReportingPeriod
1.GeneralMeetingConvenedduringtheReportingPeriod
| Meeting | Type | InvestorParticipationRatio | ConvenedDate | DisclosureDate | MeetingResolutions |
| ResolutionsoftheFirstExtraordinaryGeneralMeetingof | ExtraordinaryGeneralMeeting | 33.02% | February052024 | February062024 | Tenproposals,includingtheProposalonAmendingCertainClausesoftheArticlesof |
| Shareholdersin2024 | AssociationofLuThaiTextileCo.,Ltd.weredeliberatedandapproved | ||||
| The2023AnnualGeneralMeetingofShareholders | AnnualGeneralMeeting | 35.28% | May15,2024 | 16May2024 | Sixproposals,includingtheProposalon2023AnnualWorkReportoftheBoardofDirectors,weredeliberatedandapproved. |
| ResolutionsoftheSecondExtraordinaryGeneralMeetingofShareholdersin2024 | ExtraordinaryGeneralMeeting | 34.62% | June14,2024 | 15June2024 | Twoproposals,includingtheProposalontheBy-electionofMr.ShangChenggangasSupervisorofthe10thBoardofSupervisorsweredeliberatedandapproved. |
| The3rdExtraordinaryGeneralMeetingof2024 | ExtraordinaryGeneralMeeting | 35.45% | September202024 | September212024 | ProposalontheProfitDistributionPlanfortheFirstHalfof2024wasdeliberatedandapproved. |
| theFourthExtraordinaryGeneralMeetingofShareholdersin2024 | ExtraordinaryGeneralMeeting | 35.23% | November18,2024 | November19,2022 | ProposalontheProfitDistributionPlanfortheThirdQuarterof2024wasdeliberatedandapproved. |
2.SpecialGeneralMeetingsConvenedattheRequestofPreferredShareholderswithResumedVotingRights
□Applicable?NotapplicableV.Directors,SupervisorsandSeniorManagement
1.BasicInformation
| Name | Gender | Age | OfficeTitle | Incumbent/Former | StartofTenure | EndofTenure | BeginningShareholding(share) | IncreaseintheReportingPeriod(share) | DecreaseintheReportingPeriod(share) | OtherIncrease/Decrease(share) | EndingShareholding(share) | ReasonforChange |
| LiuZibin | Male | 60 | Chairman | Incumbent | 6June2016 | 8June2025 | 148,290 | 148,290 | ||||
| LiuZibin | Male | 60 | President | Incumbent | 6June2007 | 8June2025 | 148,290 | 148,290 | ||||
| XuZhinan | Male | 95 | ViceChairman | Incumbent | 6May2004 | 8June2025 | ||||||
| XuJianlyu | Female | 50 | Director | Incumbent | 9June2022 | 8June2025 | ||||||
| ZhengHuisheng | Male | 37 | Director | Incumbent | 9June2022 | 8June2025 | ||||||
| LiuDeming | Male | 35 | Director,ViceControllerofGlobalMarketingDepartment | Incumbent | 12May2017 | 8June2025 |
| ZhangZhanqi | Male | 53 | Director | Incumbent | 9June2022 | 8June2025 | 580,300 | 580,300 | |
| ZhangZhanqi | Male | 53 | VicePresidentandDirectoroftheGlobalMarketingDepartment;DeanofLuThaiEngineeringTechnologyResearchInstitute | Incumbent | 6June2016 | 8June2025 | 580,300 | 580,300 | |
| ZhangKeming | Male | 57 | Director | Incumbent | 9June2022 | 8June2025 | 377,700 | 377,700 | |
| ZhangKeming | Male | 57 | ChiefAccountantandDirectoroftheFinancialManagementDepartment | Incumbent | 6June2019 | 8June2025 | 377,700 | 377,700 | |
| DuLixin | Male | 50 | DirectorandChiefEngineer | Incumbent | 9June2022 | 8June2025 | 250,000 | 250,000 | |
| ZhouZhiji | Male | 62 | IndependentDirector | Incumbent | 10March2019 | 8June2025 | |||
| QuDongmei | Female | 56 | IndependentDirector | Incumbent | 10June2019 | 8June2025 | |||
| PengYanli | Female | 64 | IndependentDirector | Incumbent | 9June2022 | 8June2025 | |||
| QuanYuhua | Female | 69 | IndependentDirector | Incumbent | 9June2022 | 8June2025 | |||
| ShangChenggang | Male | 52 | ChairmanoftheBoardofSupervisors | Incumbent | June14,2024 | 8June2025 | 330,000 | 330,000 | |
| LiuZilong | Male | 57 | Supervisor | Incumbent | 6June2007 | 8June2025 | 10,000 | 10,000 | |
| DongShibing | Male | 56 | Supervisor,ChairmanoftheLaborUnion,ManagerofLogisticsManagementDepartment | Incumbent | 6June2007 | 8June2025 | 5,000 | 5,000 | |
| YuShouzheng | Male | 57 | PresidentAssistant,HeadofEnergyandEnvironmentProtection | Incumbent | 6June2007 | 8June2025 | 383,100 | 383,100 |
| Department | ||||||||||||
| GuoHeng | Male | 53 | HeadofFunctionalFabricProductLine | Incumbent | 18January2018 | 8June2025 | 300,000 | 300,000 | ||||
| LyuWenquan | Male | 52 | DeputyHeadofYarnDyedFabricProductLine,ManagerofYarnDyedFabricProductionandManagementDepartment | Incumbent | 9June2022 | 8June2025 | 200,000 | 200,000 | ||||
| XuFeng | Male | 48 | DeputyHeadofYarnDyedFabricProductLine.HeadofOverseasOperationandManagementCentre | Incumbent | 9June2022 | 8June2025 | 190,000 | 190,000 | ||||
| ZhengWeiyin | Male | 59 | BoardSecretary | Incumbent | April25,2024 | 8June2025 | 40,000 | 40,000 | ||||
| ZhangShougang | Male | 55 | ChairmanoftheBoardofSupervisors | Former | 8February2018 | 14June2024 | 73,100 | 73,100 | ||||
| LiWenji | Male | 58 | DeanofLuThaiEngineeringTechnologyResearchInstitute | Former | 8June2016 | 21December2024 | 260,000 | 260,000 | ||||
| Total | -- | -- | -- | -- | -- | -- | 3,147,490 | 0 | 0 | 0 | 3,147,490 | -- |
Indicatebytickmarkwhetheranydirector,supervisororseniormanagementdepartedtheCompanybeforetheexpiryoftheirtenuresduringtheReportingPeriod.?Yes□NoMr.ZhangShougang,ChairmanoftheBoardofSupervisors,resignedfromhispositionsasSupervisorandChairmanofthe10thBoardofSupervisorson14June2024duetopersonalreasons.Afterhisresignation,hecontinuedtoserveasDeputyPartySecretaryoftheCompany.Changeofdirectors,supervisorsandseniormanagement?Applicable□Notapplicable
| Name | OfficeTitle | TypeofChange | DateofChange | ReasonforChange |
| FujiwaraMatsuzaka | Seniormanagement | Contracttermination | 2January2024 | Jobtransfer |
| ZhangKeming | BoardSecretary | Contracttermination | 19April2024 | Jobtransfer |
| ZhengWeiyin | BoardSecretary | Appointment | 25April2024 | Jobtransfer |
| ShangChenggang | Seniormanagement | Contracttermination | 25May2024 | Jobtransfer |
| ZhangShougang | ChairmanoftheBoardofSupervisors | Former | 14June2024 | Personalreasons |
| ShangChenggang | ChairmanoftheBoardofSupervisors | Election | 14June2024 | Jobtransfer |
| LiWenji | Seniormanagement | Contracttermination | 21December2024 | Personalreasons |
2.BiographicalinformationProfessionalbackgrounds,majorworkexperienceandcurrentdutiesintheCompanyoftheincumbentdirectors,supervisorsandseniormanagement:
1.Mr.LiuZibin:ChairmanandPresidentoftheCompany,bornin1965,withamasterdegree.HeservedastheGMandChairmanofZiboLuchengTextileCo.,Ltd.AndhecurrentlyservesastheChairmanandPresidentofLuthaiTextileCo.,Ltd.,theChairmanofLufengCompanyLimited,theChairmanofZiboXinshengThermoelectricCo.,Ltd.,theChairmanofZiboLuQunTextileCo.,Ltd.,theChairmanofLuthai(HongKong)Co.,Ltd.,theChairmanofShandongLulianNewMaterialsCo.,Ltd.,theChairmanofShandongLujiaImportandExportCo.,Ltd.andtheChairmanofHainanHuilinInternationalHoldingsCo.,Ltd.
2.Mr.XuZhinan:ViceChairmanoftheCompany,bornin1930,Thainationality.HeusedtobeDirectorandGMofThaiFibreClothFactoryCo.,Ltd.,DirectorofThaiFibreCo.,Ltd.,DirectorofThaiFibrePrintingandDyeingCo.,Ltd.,DirectorandDeputyGMofLuThaiTextileCo.,Ltd.AndhecurrentlyservesastheDirectorandDeputyChairmanoftheCompanyandGMofThailandFiberCo.,Ltd.
3.Ms.XuJianlyu:DirectoroftheCompany,bornin1975,Thainationality.ShecurrentlyservesasPresidentofCassardiInternationalCo.,Ltd.
4.Mr.ZhengHuisheng:DirectoroftheCompany,bornin1988,Thainationality.HecurrentlyservesasDirectorofCassardiInternationalCo.,Ltd.
5.Mr.LiuDeming:DirectoroftheCompany,DeputyHeadofGlobalMarketingDepartment,bornin1990,withamasterdegree.Currently,heservesasChairmanandGMofZiboLuchengTextileInvestmentCo.,Ltd.,DirectorofLuThaiTextileCo.,Ltd.andDeputyHeadofGlobalMarketingDepartmentofLuThaiTextileCo.,Ltd.6.Mr.ZhangZhanqi:Director,VicePresident,andHeadofGlobalMarketingDepartmentoftheCompany,DirectorofLuThaiEngineeringTechnologyResearchInstitute,andGeneralManagerofLuFengCompanyLimited,bornin1972,withamasterdegreeofbusinessadministration.Also,heservesasaSeniorEngineer,oncewastheFactoryDirectorofFabricFinishingFactoryandManagerofQualityManagementDepartmentoftheCompany.
7.Mr.ZhangKeming:DirectoroftheCompany,ChiefAccountant,andHeadoftheFinancialManagementDepartment,bornin1968.HoldsanMBA,isaSeniorAccountant,andformerlyservedasDeputyManagerandManageroftheFinanceDepartmentandBoardSecretaryoftheCompany.
8.Mr.DuLixin:DirectoroftheCompanyandChiefEngineer,bornin1975.PreviouslyheldvariouspositionsatLuThai,includingspinningoperator,productionplannerattheWeavingFactory,DeputyDirectoroftheDispatchOfficeoftheProductionDepartment,FactoryDirectorof
theWeavingFactory,ManageroftheWeavingBusinessUnit,DeputyManageroftheProductionDepartment,andExecutiveDeanofLuThaiEngineeringTechnologyResearchInstitute.
9.Mr.ZhouZhiji:IndependentDirectoroftheCompany,bornin1963,withabachelordegree.HeisinpossessionofthecertificatesofCPAandSeniorAccountant.Now,heservesasaSupervisorofShandongJinhengConsultingCo.,Ltd.,DirectorofShandongMenglvInformationTechnologyCo.,Ltd.,andDirectorofShandongFabricButtonNetworkTechnologyCo.,Ltd.HeservedasacadreofShandongProvincialDepartmentofFinance,DirectorofdepartmentofShandongaccountingfirm,ChiefAccountantofShandongZhengyuanAccountingFirm,DirectorandManagerofShandongYingshidaEnterpriseManagementConsultingCo.,Ltd.,chairmanofShandongJinhengConsultingCo.,Ltd.
10.Ms.QuDongmei:IndependentDirectoroftheCompany,bornin1969,holdsaDoctorateinEconomicLaw.FormerlyaProfessorattheSchoolofLaw,ShandongNormalUniversity.CurrentlyservesasaMaster’sSupervisorinCivilandCommercialLawatShandongNormalUniversity,alawyeratGrandallLawFirm(Jinan),anarbitratoroftheJinanArbitrationCommission,andapublicmediatorattheChinaSecuritiesCapitalMarketLegalServiceCentre.
11.Ms.PengYanli:IndependentdirectoroftheCompany,bornin1961,withamasterdegreeofbusinessadministration.Sheisaseniorengineer.AsaformerofficialintheFormerMinistryoftheTextileIndustryandtheformerChinaTextileFederation,sheservedaspresidentofChinaWoolTextileAssociation,deputysecretarygeneralofChinaNationalTextileandApparelCouncil,vicechairmanofChinaTextileEngineeringSociety,anddeputydirectorofChinaTextileInformationCentre.
12.Ms.QuanYuhua:IndependentDirectoroftheCompany,bornin1956,withabachelordegree.SheisaSeniorAccountant.Moreover,sheservedasManageroftheFinancingDepartmentoftheCCBShandongBranchTrustandInvestmentCompany,theDirectorAssistantintheInformationandResearchOffice,theEntrustedLoanOffice,andtheFee-basedBusinessDepartmentoftheCCBShandongBranch,andthelevel-5customermanagerintheZhenzhuquanBranchofCCBinJinanCity.
13.Mr.ShangChenggang:ChairmanoftheBoardofSupervisorsoftheCompany.Bornin1973,heservedasDeputyDirector,DirectorofGMoffice,ManagerofEnterpriseManagementDepartment,ManagementRepresentativeandManagerofGarmentProductionDepartment,HeadofGarmentManufacturingCentre&ManagerofGarmentProductionManagementDepartmentoftheCompany.HenowservesasDirectorofthegarmentproductline.
14.Mr.LiuZilong:SupervisoroftheCompany,bornin1968,withamasterdegreeofbusinessadministration.Inaddition,hehasservedastheGMofLuthai(HongKong)since2002.
15.Mr.DongShibing:SupervisoroftheCompany,bornin1969,formerlyDeputyDirectoroftheGM’sOffice.CurrentlyservesasChairmanoftheLabourUnion,ManageroftheLogisticsManagementDepartment,andGeneralManagerofZiboBanyangVillaHotelCo.,Ltd.
16.Mr.YuShouzheng:PresidentAssistant,HeadoftheEnergyandEnvironmentalProtectionDepartmentoftheCompany,GMofZiboXinshengThermalPowerCo.,Ltd.,bornin1968,withamasterdegreeofbusinessadministration.Asanengineer,heonceworkedastheDirectorofthePowerDepartmentandManageroftheEnergyDivisionoftheCompany.
17.Mr.GuoHeng:HeadofFunctionalFabricProductLine.Bornin1972,heservedasthedeputydirectorofthespinningfactoryofLuThai,thedeputymanageroftheyarnbusinessdepartment,andthemanageroftheyarnbusinessdepartmentandheadofenterprisemanagementdepartmentofLuThai.
18.Mr.LyuWenquan:DeputyHeadoftheYarn-dyedFabricProductLine,ManageroftheYarn-dyedProductionManagementDepartment,bornin1973.HeservesasaSeniorEngineeraswellasaChiefTechnicianinQilu.Moreover,heisoneofthemiddle-agedandyoungexpertsinZiboCityandoneofthe“TorchTalents”forZiboHigh-techZone.Inaddition,heservedasaFactoryDirectorandtheManageroftheFabricFinishingBusinessDepartmentofLuThai.19.Mr.XuFeng:DeputyHeadoftheyarn-dyedFabricProductLine,HeadofOverseasOperationandManagementCentre,bornin1977.HeisanengineerandservedasAssistantManageroftheBleachingandDyeingBusinessDepartment.
20.Mr.ZhengWeiyin:BoardSecretaryandManageroftheSecuritiesDepartment,bornin1966,holdsabachelor’sdegree.PreviouslyservedasHeadoftheSecuritiesSectionandDeputyManageroftheSecuritiesDepartmentoftheCompany.Officesheldconcurrentlyinshareholdingentities:
?Applicable□Notapplicable
| Name | ShareholdingEntity | OfficeheldintheShareholdingEntity | StartofTenure | EndofTenure | RemunerationorAllowancefromtheShareholdingEntity |
| LiuZibin | ZiboLuchengTextileInvestmentCo.,Ltd. | Director | 26February1999 | Not | |
| XuZhinan | Tailun(Thailand)TextileCo.,Ltd. | GM | 29January1985 | Not | |
| LiuDeming | ZiboLuchengTextileInvestmentCo.,Ltd. | ChairmanandGM | 1February2017 | Not | |
| Explanationsaboutholdingpostsinshareholders’companies | Mr.LiuZibinistheDirectorofZiboLuchengTextileInvestmentCo.,Ltd.,holding4%equitiesofZiboLuchengTextileInvestmentCo.,Ltd.BasicinformationofMr.LiuZibin:Chinese,norightofresidenceinothercountriesorregions.Mr.LiuDemingholdsthepostofChairmanandGMofZiboLuchengTextileInvestmentCo.,Ltd.,holding21%equitiesofZiboLuchengTextileInvestmentCo.,Ltd.BasicinformationofMr.LiuDeming:Chinese,norightofresidenceinothercountriesorregions.Mr.XuZhinanisthesponsorofforeigncapitaloftheCompany,shareholderofTailun(Thailand)TextileCo.,Ltd.andTailun(Thailand)TextileCo.,Ltd.isthesecondlargestshareholderoftheCompany.BasicinformationaboutMr.XuZhinan:Thai. | ||||
Officesheldconcurrentlyinotherentities:
?Applicable□Notapplicable
| Name | OtherEntity | OfficeHeldintheEntity | StartofTenure | EndofTenure | RemunerationorAllowancefromtheEntity |
| LiuZibin | LuFengCompanyLimited,ZiboLuqunTextileCo.,Ltd.,ZiboXinshengThermalPowerCo.,Ltd.,LuThai(HK)TextileCo.,Ltd,ShandongLulianNewMaterialsCo.,Ltd.,ShandongLujiaImportandExportCo.,Ltd.,HainanHuilinInternationalHoldingsCo.,Ltd. | ChairmanoftheBoard,Director,GM | 7December2015 | Not | |
| LiuDeming | LuFengCompanyLimited,ZiboXinshengThermalPowerCo.,Ltd.ZiboLuqunTextileCo.,Ltd.ShandongLulianNewMaterialsCo.,Ltd.BeijingZhishuManagementConsultingCo.,Ltd. | Director | 21August2017 | Not | |
| Zhang | LuFengCompanyLimited | Directorand | 5July2014 | Not |
| Zhanqi | GM | ||||
| ZhangKeming | ZiboLuqunTextileCo.,Ltd.ShandongLulianNewMaterialsCo.,Ltd.LuFengCompanyLimited,ShanghaiLuThaiTextileGarmentCo.,Ltd. | Director,Supervisor | 3March2022 | Not | |
| ZhouZhiji | ShandongJinhengConsultingCo.,Ltd | Supervisor | 1October2015 | Yes | |
| QuDongmei | GrandallLawFirm(Jinan) | Lawyer | 1September2002 | Yes | |
| LiuZilong | LuThai(HongKong)TextileCo.,Ltd. | GM | 9May2005 | Not | |
| DongShibing | ZiboBanyangVillaHotelCo.,Ltd. | DirectorandGM | 2April2021 | Not | |
| YuShouzheng | ZiboXinshengThermalPowerCo.,Ltd. | DirectorandGM | 13April2021 | Not | |
| GuoHeng | ShandongLulianNewMaterialsCo.,Ltd. | DirectorandGM | 28August2021 | Not | |
| Explanationsaboutholdingpostsinotherentities | Exceptforindependentdirectors,allotherentitiestheCompany’sdirectors,supervisorsandseniormanagementholdpostsaremajority-ownedsubsidiariesoftheCompany. | ||||
Punishmentsimposedintherecentthreeyearsbythesecuritiesregulatorontheincumbentdirectors,supervisorsandseniormanagementaswellasthosewholeftintheReportingPeriod:
□Applicable?Notapplicable
3.RemunerationofDirectors,SupervisorsandSeniorManagementDecision-makingprocedure,determinationbasisandactualpaymentsofremunerationfordirectors,supervisorsandseniormanagement:
TheRemunerationandAppraisalCommitteeundertheBoardofDirectorsoftheCompanyisliabletonotonlypreparingappraisalcriteriafordirectorsandseniormanagementoftheCompanyandappraisingthem,butalsopreparingandreviewingremunerationpoliciesandplansfordirectorsandseniormanagementoftheCompany,whoisliabletotheBoardofDirectors.TheRemunerationandAppraisalCommitteeshallproposetheremunerationamountofdirectorsandseniormanagementaccordingtotheCompany’smanagementconditionandpostperformanceresults,andshallreporttotheBoardofDirectorsforratificationaftertheapprovalbyvoting.TheControllerofFinancialManagementDepartment,theCorporateManagementDepartmentandtheHRDepartmentoftheCompanyshallbeliabletothepreliminarypreparationforthedecisionoftheRemunerationandAppraisalCommittee,includingbutnotlimitedtoprovidinginformationsuchastheCompany’smainfinancialindicatorsandthecompletionofmanagementobjectives.TheRemunerationandAppraisalCommitteeshallconfirmtheannualappraisalresultsofdirectorsandofficersinaccordancewiththecompletionoftheCompany’sperformanceandtheremunerationcriteriaforofficers,andshallreporttotheBoardofDirectorsforratificationaftertheapprovalbyvoting.Thenumberofincumbentdirectors,supervisorsandseniorexecutivesis20,amongwhichthereare18personsactuallyreceivingremunerationfromtheCompanyduringtheReportingPeriod.By31December2024,thetotalamountofannualpaymentdrawnfromtheCompanybydirectors,supervisorsandseniorexecutivesisRMB14,913,900(beforetax).Remunerationofdirectors,supervisorsandseniormanagementfortheReportingPeriod
Unit:RMB’0,000
| Name | Gender | Age | OfficeTitle | Incumbent/Former | TotalBefore-taxRemunerationfromtheCompany | AnyRemunerationfromRelatedParty |
| LiuZibin | Male | 60 | ChairmanandPresident | Incumbent | 198.11 | Not |
| XuZhinan | Male | 95 | ViceChairman | Incumbent | 0 | Not |
| XuJianlyu | Female | 50 | Director | Incumbent | 0 | Not |
| ZhengHuisheng | Male | 37 | Director | Incumbent | 0 | Not |
| LiuDeming | Male | 35 | Director,ViceControllerofGlobalMarketingDepartment | Incumbent | 110.62 | Not |
| ZhangZhanqi | Male | 53 | Director,VicePresident,ControllerofGlobalMarketingDepartment | Incumbent | 113.91 | Not |
| ZhangKeming | Male | 57 | Director,BoardSecretary,ChiefAccountant,ControllerofFinancialManagementDepartment | Incumbent | 111.94 | Not |
| DuLixin | Male | 50 | Director,ChiefEngineer,ExecutiveDeanofLuThaiEngineeringTechnologyResearchInstitute | Incumbent | 111.31 | Not |
| ZhouZhiji | Male | 62 | IndependentDirector | Incumbent | 7 | Not |
| QuDongmei | Female | 56 | IndependentDirector | Incumbent | 7 | Not |
| PengYanli | Female | 64 | IndependentDirector | Incumbent | 0 | Not |
| QuanYuhua | Female | 69 | IndependentDirector | Incumbent | 7 | Not |
| ShangChenggang | Male | 52 | ChairmanoftheBoardofSupervisorsandHeadoftheGarmentProductLine | Incumbent | 93.96 | Not |
| LiuZilong | Male | 57 | Supervisor | Incumbent | 84.08 | Not |
| DongShibing | Male | 56 | Supervisor,ManageroftheLogisticsManagementDepartment,ChairmanoftheLabourUnion | Incumbent | 84.63 | Not |
| YuShouzheng | Male | 57 | PresidentAssistant,HeadofEnergyandEnvironmentProtectionDepartment | Incumbent | 91.86 | Not |
| GuoHeng | Male | 53 | HeadofFunctionalFabricProductLine | Incumbent | 82.31 | Not |
| LyuWenquan | Male | 52 | DeputyHeadofYarnDyedFabricProductLine,ManagerofYarnDyedFabricProductionandManagementDepartment | Incumbent | 80.73 | Not |
| XuFeng | Male | 48 | DeputyDirectoroftheYarn-dyedFabricProductLine | Incumbent | 91.87 | Not |
| ZhengWeiyin | Male | 59 | BoardSecretary | Incumbent | 69.16 | Not |
| ZhangShougang | Male | 55 | ChairmanoftheBoardofSupervisors | Former | 63.75 | Not |
| LiWenji | Male | 58 | DeanofLuThai | Former | 82.15 | Not |
| EngineeringTechnologyResearchInstitute | ||||||
| Total | -- | -- | -- | -- | 1,491.39 | -- |
Othernotes:
□Applicable?NotapplicableVIPerformanceofDutybyDirectorsintheReportingPeriod
1.BoardMeetingConvenedduringtheReportingPeriod
| Meeting | ConvenedDate | DisclosureDate | MeetingResolutions |
| 18thMeetingofthe10thBoardofDirectors | 19January2024 | 20January2024 | Threeproposals,includingtheProposalonRoutineRelatedTransactions,weredeliberatedandapproved |
| 19thMeetingofthe10thBoardofDirectors | 19March2024 | 20March2024 | Twoproposals,includingtheProposalonRoutineRelatedTransactions,weredeliberatedandapproved. |
| 20thMeetingofthe10thBoardofDirectors | 10April2024 | 12April2024 | Fifteenproposals,includingtheProposalonthe2023AnnualWorkReportoftheBoardofDirectorsandtheProposalonthe2023AnnualWorkReportofthePresident,weredeliberatedandapproved. |
| 21thMeetingofthe10thBoardofDirectors | 25April2024 | 27April2024 | Twoproposals,includingtheProposalonthe2024FirstQuarterReport,weredeliberatedandapproved. |
| 22ndMeetingofthe10thBoardofDirectors | 28May2024 | 29May2024 | Sixproposals,includingProposalonModifyingCertainClausesoftheCompany’sArticlesofAssociationAccordingtotheGeneralMeeting’sAuthorizationweredeliberatedandapproved. |
| 23rdMeetingofthe10thBoardofDirectors | 6July2024 | 9July2024 | Twoproposals,includingtheProposalonAcquiringMinorityEquityInterestsinaSubsidiary,weredeliberatedandapproved. |
| 24thMeetingofthe10thBoardofDirectors | 28August2024 | 30August2024 | Sevenproposals,includingtheProposalontheFullTextandSummaryoftheCompany’s2024Semi-annualReportandtheProposalontheProfitDistributionPlanfortheFirstHalfof2024,weredeliberatedandapproved. |
| 25thMeetingofthe10thBoardofDirectors | 12September2024 | 13September2024 | ProposalonAdditionalInvestmentinShandongLulianNewMaterialsCo.,Ltd.wasdeliberatedandapproved. |
| 26thMeetingofthe10thBoardofDirectors | 29October2024 | 31October2024 | Threeproposals,includingtheProposalontheCompany’s2023Q1Report,weredeliberatedandapproved. |
| 27thMeetingofthe10thBoardofDirectors | 30December2024 | 31December2024 | Tworesolutions,theProposalonWaivingtheNoticePeriodforthe27thMeetingofthe10thBoardofDirectorsandtheProposalonNotLoweringtheConversionPriceofLuThaiConvertibleBonds,weredeliberatedandapproved. |
2.AttendanceofDirectorsatBoardMeetingsandGeneralMeetings
| AttendanceofDirectorsatBoardMeetingsandGeneralMeetings | |||||||
| Director | TotalNumberofBoardMeetingstheDirectorwasEligibletoAttend | BoardMeetingsAttendedonSite | BoardMeetingsAttendedbyWayofTelecommunication | BoardMeetingsAttendedThroughaProxy | BoardMeetingstheDirectorFailedtoAttend | TheDirectorFailedtoAttendTwoConsecutiveBoardMeetings(yes/no) | GeneralMeetingsAttended |
| LiuZibin | 10 | 10 | 0 | 0 | 0 | Not | 4 |
| XuZhinan | 10 | 0 | 10 | 0 | 0 | Not | 0 |
| LiuDeming | 10 | 10 | 0 | 0 | 0 | Not | 2 |
| XuJianlyu | 10 | 0 | 10 | 0 | 0 | Not | 0 |
| ZhengHuisheng | 10 | 0 | 10 | 0 | 0 | Not | 0 |
| ZhangZhanqi | 10 | 10 | 0 | 0 | 0 | Not | 5 |
| ZhangKeming | 10 | 10 | 0 | 0 | 0 | Not | 5 |
| DuLixin | 10 | 10 | 0 | 0 | 0 | Not | 5 |
| ZhouZhiji | 10 | 1 | 9 | 0 | 0 | Not | 2 |
| QuDongmei | 10 | 0 | 10 | 0 | 0 | Not | 0 |
| PengYanli | 10 | 1 | 9 | 0 | 0 | Not | 0 |
| QuanYuhua | 10 | 1 | 9 | 0 | 0 | Not | 1 |
Whyanydirectorfailedtoattendtwoconsecutiveboardmeetings:
Notapplicable
3.ObjectionsRaisedbyDirectorsonMattersoftheCompanyIndicatebytickmarkwhetheranydirectorsraisedanyobjectionsonanymatteroftheCompany.
□Yes?NoNosuchcasesintheReportingPeriod.
4.OtherInformationaboutthePerformanceofDutybyDirectorsIndicatebytickmarkwhetheranysuggestionsfromdirectorswereadoptedbytheCompany.?Yes□NoSuggestionsfromdirectorsadoptedornotadoptedbytheCompanyDuringtheReportingPeriod,directorsoftheCompanycarriedouttheirworkconscientiouslyandresponsiblyinstrictaccordancewiththeCompanyLaw,SecuritiesLaw,CodeofCorporateGovernanceforListedCompaniesinChina,Self-RegulatoryGuidelinesNo.1forCompaniesListedonShenzhenStockExchange-StandardOperationofListedCompaniesontheMainBoard,ArticlesofAssociationandRulesofProcedureoftheBoardofDirectors.BasedontheCompany’sreality,theymadescientificallysoundandcarefuldecisionsontheCompany’svariousreviewedmatters,andformedopinionsthroughfullcommunicationanddiscussion.TheyresolutelysupervisedandpromotedtheimplementationoftheresolutionsoftheBoardofDirectorstoensurescientific,timelyandefficientdecision-makingandfullysafeguardthelegitimaterightsandinterestsoftheCompanyandallshareholders.VII.PerformanceofDutybySpecializedCommitteesundertheBoardintheReportingPeriod
| Committee | Members | NumberofMeetings | ConvenedDate | Content | ImportantOpinionsandSuggestions | OtherInformationaboutthe | DetailsAboutIssueswith |
| Convened | Raised | PerformanceofDuty | Objections(IfAny) | ||||
| AuditCommittee | ZhouZhiji,QuDongmei,andZhangKeming | 1 | 17January2024 | Mainly,theCompany’sfinancialstatementssubmittedtoGrantThorntonCertifiedPublicAccountantsLLPforpreliminaryauditwerereviewed,writtenopinionswereexpressed,andcommunicationwithLeaderofannualauditaccountantprojectwasconducted. | Theopinionswereasfollows:(1)PreparingtheCompany’sfinancialaccountingstatementsinaccordancewiththeCompany’saccountingpoliciesandapplyingaccountingpoliciesproperly,itcarriedoutaccountingestimatefullyandreasonably,whichconformedtotheNewAccountingStandardsforBusinessEnterprises,accountingsystemforenterprisesandtherequirementsofrelevantprovisionsissuedbytheMinistryofFinance;(2)UnitstatementsoftheCompany’sfinancialstatementsthatwereincludedinthescopeofconsolidationwerecomplete,whilethestatementconsolidationbasiswasaccurate;(3)(3)ThefinancialstatementsoftheCompanywereobjective,trueandaccurate,withoutanymajormisstatementoromission;(4)Andduetothefactthattherestillisaperiodoftimefromthedayforreviewofthefinancialstatementstothedayforauditreportandfinancialstatementrelease, | - |
| theFinancialManagementDepartmentoftheCompanywassubmittedtofocusonandcopewithpostbalancesheetevents,soastoensurethefairness,authenticityandintegrityofthefinancialstatements.TheAuditCommitteethoughtthatthefinancialaccountingstatementscouldbesubmittedtoAnnualCertifiedPublicAccountantforauditaccordingtoannualauditplan.Mainly,theCompany’sfinancialstatementssubmittedtoGrantThorntonCertifiedPublicAccountantsLLPforpreliminaryauditwerereviewed,writtenopinionswereexpressed,andcommunicationwithLeaderofannualauditaccountantprojectwasconducted. | ||||||
| AuditCommittee | ZhouZhiji,QuDongmei,LiuDeming | 5 | 10April2024 | Thefollowingmattersweremainlyaudited:(1)TheCompany’s2023AnnualFinancialReportauditedbytheaccountingfirm.(2)EvaluationReportonthePerformanceoftheAccountingFirmin2023andReportontheFulfilmentofSupervisory | (1)Regardingthewrittenopinionissuedaftertheaccountingfirm’spreliminaryauditopinionontheCompany’sfinancialstatements:TheprocedureoffinancialstatementpreparationwasreasonableandnormativeastheCompanyconformedtotheNewAccountingStandardsforBusiness | - |
| ResponsibilitiesbytheAuditCommittee.(3)ProposalontherenewalofGrantThorntonCertifiedPublicAccountantsLLPAstheCompany’s2024AnnualFinancialAuditandInternalControlAuditInstitution.(4)2023InternalControlAssessmentReportandissuanceofwrittenassessmentopinions(5)Reportofthe2023AnnualDepositandUseoftheRaisedFunds.(6)ReportontheImplementationofthe2023AnnualInternalAuditPlan.(7)2024AnnualInternalAuditPlan. | EnterprisesandrelevantprovisionsoftheCompany’sfinancialsystem,whichfairlyreflectedtheCompany’sassets,liabilities,shareholders’equityandoperatingresultsby31December2023,whichweretrue,accurateandcomplete.TheAuditCommitteethoughtthattheCompany’s2023AnnualFinancialAccountingReportthatwaspreliminarilyapprovedbyGrantThorntonCertifiedPublicAccountantsLLPcouldbesubmittedtothe20thMeetingofthe10thBoardofDirectorsforreview.(2)RegardingthewrittenopinionissuedontheCompany’s2023internalcontrolself-assessmentreport:AccordingtoFundamentalNormsforInternalControlofEnterprises,SupportingGuidelinesforInternalControlofEnterprisesandrelevantprovisionsprescribedbysecuritiesregulatorsfortheinternalcontrolestablishmentoflistedcompanies,combiningtheactualstatusoftheCompany’sbusiness,theCompanyestablishedthe |
| controlsystemconstruction,operation,systemimplementation,andsupervision.TheCompany’sinternalcontrolsystemissound,andinternalcontrolsareeffective.TheAuditCommitteethoughtthatthe2023InternalControlSelf-evaluationReportcouldbesubmittedatthe20thMeetingofthe10thBoardofDirectorsforreview. | ||||||
| AuditCommittee | ZhouZhiji,QuDongmei,LiuDeming | 5 | 22April2024 | Thefollowingmattersweremainlyaudited:(1)SpecialReportontheDepositandUseoftheRaisedFundsof2024Q1.(2)ReportontheImplementationofInternalAuditPlanof2024Q1.(2)2024Q1Report. | Thefollowingproposalswereadoptedbyacombinationofon-siteandtelecommunicationvoting:SpecialReportontheDepositandUseoftheRaisedFundsof2024Q1,ReportontheImplementationofInternalAuditPlanof2024Q1,andthe2024Q1Report. | - |
| AuditCommittee | ZhouZhiji,QuDongmei,LiuDeming | 5 | 19August2024 | Thefollowingmattersweremainlyaudited:(3)SpecialInterimReport2024oftheDepositandUseoftheRaisedFunds.(2)InterimReport2024ontheImplementationofInternalAuditPlan.(3)InterimFinancialStatementsReportof2024 | Thefollowingproposalswereadoptedbyacombinationofon-siteandtelecommunicationvoting:SpecialInterimReport2024oftheDepositandUseoftheRaisedFunds,InterimReport2024ontheImplementationofInternalAuditPlan,andtheInterimFinancialStatementsReportof2024.Thesubmissionofthefirstandthird | - |
| proposaltothe24thmeetingofthe10thBoardofDirectorsfordeliberationwasapproved. | ||||||
| AuditCommittee | ZhouZhiji,QuDongmei,LiuDeming | 5 | 25October2024 | Thefollowingmattersweremainlyaudited:(1)SpecialReportontheDepositandUseoftheRaisedFundsof2024Q3.(2)ReportontheImplementationofInternalAuditPlanof2024Q3.(3)FinancialStatementsof2024Q3. | Thefollowingproposalswereadoptedbyacombinationofon-siteandtelecommunicationvoting:SpecialReportontheDepositandUseoftheRaisedFundsof2024Q3,ReportontheImplementationofInternalAuditPlanof2024Q3,andFinancialStatementsof2023Q3.Thesubmissionofthefirstproposaltothe26thmeetingofthe10thBoardofDirectorsfordeliberationwasapproved. | - |
| AuditCommittee | ZhouZhiji,QuDongmei,LiuDeming | 5 | 11November2024 | ThetimearrangementfortheCompany’s2024annualfinancialauditworkwasnegotiated. | Thetimearrangementplanfor2024annualfinancialauditworkwasunanimouslydeterminedatthemeetingthroughthenegotiationwiththe2024annualauditinstitution,GrantThorntonCertifiedPublicAccountantsLLP,oftheCompany. | - |
| RemunerationCommittee | PengYanli,LiuZibin,ZhouZhiji,andQuDongmei | 2 | 10April2024 | Themaintopicsofthemeetingwere:(1)TheProposalofLuThaiTextileCo.,Ltd.ontheAppraisalResultsofDirectorsandSeniorManagementPersonnelin | Thefollowingproposalswereadoptedbyvotingatthemeeting:TheProposalofLuThaiTextileCo.,Ltd.ontheAppraisalResultsofDirectorsandSeniorManagementPersonnelin2023,theAppraisal | - |
| 2023.(2)TheAppraisalReportonthePerformanceofthe2023RestrictedShareIncentiveScheme(reservedportion).(3)TheProposalontheAchievementofLiftingtheRestrictionConditionsintheSecondRestrictionPeriodfortheReservedGrantofthe2021RestrictedShareIncentiveScheme. | ReportonthePerformanceofthe2023RestrictedShareIncentiveScheme(ReservedPortion),theProposalontheAchievementofLiftingtheRestrictionConditionsintheSecondRestrictionPeriodfortheReservedGrantofthe2021RestrictedShareIncentiveScheme.Thesubmissionofthefirstandthirdproposaltothe20thmeetingofthe10thBoardofDirectorsfordeliberationwasapproved. | |||||
| RemunerationCommittee | PengYanli,LiuZibin,ZhouZhiji,andQuDongmei | 2 | 25May2024 | Themaintopicsofthemeetingwere:(1)AppraisalReportonthePersonalPerformanceofthe2023RestrictedShareIncentiveScheme.(2)TheProposalontheAchievementofLiftingtheRestrictionConditionsintheThirdRestrictionPeriodfortheFirstGrantofthe2021RestrictedShareIncentiveScheme. | Thefollowingproposalswereadoptedbyvotingatthemeeting:TheAppraisalReportonthePersonalPerformanceofthe2023RestrictedShareIncentiveSchemeandtheProposalontheAchievementofLiftingtheRestrictionConditionsintheThirdRestrictionPeriodfortheFirstGrantofthe2021RestrictedShareIncentiveScheme.Thesubmissionofthesecondproposaltothe22ndmeetingofthe10thBoardofDirectorsfordeliberationwasapproved. | - |
| StrategyCommittee | LiuZibin,XuZhinan,LiuDeming,XuJianlyu, | 1 | 10April2024 | TheOverallStrategicPlanningofLuThaiTextileof2022to2026(2024RevisedVersion)was | Thefollowingproposalwasadoptedbyacombinationofon-siteandtelecommunicationvoting:The | - |
| ZhengHuisheng,ZhangZhanqi,ZhangKeming,DuLixin,ZhouZhiji,QuDongmei,PengYanli,QuanYuhua | deliberated. | OverallStrategicPlanningofLuThaiTextileof2022to2026(2024RevisedVersion). | ||||
| NominationCommittee | QuDongmei,LiuZibin,XuZhinan,ZhouZhiji,PengYanli | 2 | 16March2024 | ThemaintopicofthemeetingwastheProposalontheNominationofCandidatesfortheAuditCommitteeofthe10thBoardofDirectors. | TheProposalontheNominationofCandidatesfortheAuditCommitteeofthe10thBoardofDirectorswasdeliberatedandapprovedaswellassubmittedtothe19thmeetingofthe10thBoardofDirectorsfordeliberationandapproval. | - |
| NominationCommittee | QuDongmei,LiuZibin,XuZhinan,ZhouZhiji,PengYanli | 2 | 22April2024 | ThemaintopicofthemeetingwastheProposalontheNominationofSeniorManagementPersonnelandtheBoardSecretaryCandidatesforthe10thBoardofDirectors. | TheProposalontheNominationofSeniorManagementPersonnelandtheBoardSecretaryCandidatesforthe10thBoardofDirectorswasdeliberatedandapprovedaswellassubmittedtothe20thmeetingofthe10thBoardofDirectorsfordeliberationandapproval. | - |
VIII.PerformanceofDutybytheBoardofSupervisorsIndicatebytickmarkwhethertheBoardofSupervisorsfoundanyrisktotheCompanyduringitssupervisionintheReportingPeriod.
□Yes?NoTheBoardofSupervisorsraisednoobjectionsintheReportingPeriod.IX.Employees
1.Number,FunctionsandEducationalBackgroundsofEmployees
| Numberofin-serviceemployeesoftheCompanyastheparentattheperiod-end | 7,589 |
| Numberofin-serviceemployeesofmajorsubsidiariesattheperiod-end | 16,399 |
| Totalnumberofin-serviceemployees | 23,988 |
| TotalnumberofpaidemployeesintheReportingPeriod | 23,988 |
| NumberofretireestowhomtheCompanyastheparentoritsmajorsubsidiariesneedtopayretirementpensions | 0 |
| Functions | |
| Function | Employees |
| Production | 17,799 |
| Sales | 582 |
| Technical | 4,939 |
| Financial | 106 |
| Administrative | 562 |
| Total | 23,988 |
| EducationalBackgrounds | |
| EducationalBackground | Employees |
| Doctor | 3 |
| Master | 87 |
| Bachelor | 1,465 |
| College | 4,517 |
| Highschoolandbelow | 17,916 |
| Total | 23,988 |
2.EmployeeRemunerationPolicyTheCompanyhasformulatedaremunerationmanagementsystemwithitsprinciplebeing“paymentaccordingtoone’sworkandmorepayformorework”.ThroughpostevaluationandthroughresearchesofSocialsalarylevelscarriedoutasmulti-faceted,aswellastheformulationofthereasonablesalarymanagementsystem,fullydemonstratestheinternalfairness,self-fairnessandexternalfairness.Ithasgreatlymotivatedtheemployeesandenhancedthecorporatemanagement.
3.EmployeeTrainingPlansTrainingswillbecarriedoutaccordingtorequirementsoftheCompany’sstrategicdevelopmentplanning,improvementofemployees’capability,performancemanagement,employees’careerplanning,etc.Theannualtrainingplanisdeterminedbycarryingoutresearchesontrainingneeds.Andthetrainingcoursesfallintothreemajorcategories,i.e.management,technicalskillsandgeneralknowledge.Throughthesetrainings,theCompanywillimprovetheknowledgestructureofitsemployees,improvetheirjobskillsandincreasetheircomprehensivequalitytoprovideexcellenthumanresourcesforthelong-term,sustainedandstabledevelopmentoftheCompany.
4.LaborOutsourcing
□Applicable?NotapplicableX.ProfitDistributions(intheFormofCashand/orStock)Howtheprofitdistributionpolicy,especiallythecashdividendpolicy,wasformulated,executedorrevisedintheReportingPeriod:
□Applicable?NotapplicableIndicatebytickmarkwhethertheCompanyfailstoputforwardacashdividendproposalfor
shareholdersdespitethefactsthattheCompanyhasmadeprofitsintheReportingPeriodandtheprofitsoftheCompanyastheparentdistributabletoshareholdersarepositive.
□Applicable?NotapplicableFinaldividendplanfortheReportingPeriod?Applicable□Notapplicable
| Bonussharesforeverytenshares(share) | 0 |
| Dividendforeverytenshares(RMB)(taxinclusive) | 1.00 |
| Bonusissuefromcapitalreserves(share/10shares) | 0 |
| Totalsharesasthebasisfortheprofitdistributionproposal(share) | 817,306,010 |
| Cashdividends(RMB)(taxinclusive) | 81,730,601.00 |
| Cashdividendsinotherforms(suchassharerepurchase)(RMB) | 37,866,957.62 |
| Totalcashdividends(includingthoseinotherforms)(RMB) | 119,597,558.62 |
| Distributableprofit(RMB) | 5,791,958,278.26 |
| Totalcashdividends(includingthoseinotherforms)as%oftotalprofitdistribution | 100% |
| CashDividendPolicy | |
| IftheCompanyisinamaturedevelopmentstageandhasplansforanysignificantexpenditure,inprofitallocation,theratioofcashdividendsintheprofitallocationshallbe40%orabove. | |
| DetailsAbouttheProposalforProfitDistributionandConvertingCapitalReserveintoShareCapital | |
| Basedonacapitalbaseof817,306,010sharesasat31December2024,acashdividendofRMB1.00(inclusiveoftax)willbedistributedforeverytenshares,resultinginatotaldividendpayoutofRMB81,730,601.00.TheindividualincometaxforAShareshallbesubjecttorelatedregulationsunderCS[2015]No.101NoticeonCertainQuestionabouttheDifferentiatedIndividualIncomeTaxPolicyforCashDividendofListedCompaniesjointlyissuedbyMinistryofFinance,StateAdministrationofTaxation(“SAT”),andCSRC.TheindividualincometaxforBShareshallbeconversedtoHKDbasedonthecentralparityrateoninterbankexchangemarketreleasedbythePeople’sBankofChinaonthefollowingdayaftershareholder’smeeting(fordomesticindividualshareholders,taxispaidpursuanttoCS[2015]No.101;forforeignshareholders,taxisfreepursuanttoCSZ(1994)No.020regulations;andnon-residentialcorporateshareholdersisentitledtoa10%reductionofenterpriseincometaxaccordingtorelatedregulationsunderEnterpriseIncomeTaxLawofthePeople’sRepublicofChina).SincetheCompanyisintheperiodoftransferringconvertiblebondsintoshares,theprofitdistributionwillbeconductedbasedonthetotalsharecapitalontheequityregistrationdateforimplementingthisprofitdistributionplanwithnochangeintheamountpershare. | |
XIEquityIncentivePlans,EmployeeStockOwnershipPlansorOtherIncentiveMeasuresforEmployees?Applicable□Notapplicable
1.EquityIncentive
| No. | DeliberationTime | RelevantMeeting | OverviewofExecution | DisclosureIndex |
| 1 | 19January2024 | 18thmeetingofthe10thBoardofDirectorsand12thmeetingofthe10thBoardofSupervisors | TheBoardofDirectorsreviewedandapprovedtheProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveCondition.TheBoardofSupervisorsreviewedandapprovedtheforegoingproposalandissuedthewrittenreviewopinions.BeijingDHHLawFirmQingdaoOfficeissuedalegalopinion. | Fordetails,seetherelevantannouncementsdisclosedon20January2024onwww.cninfo.com.cn. |
| 2 | 5February2024 | The1stExtraordinaryShareholders’Meetingof2024 | ItdeliberatedonandapprovedtheProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveConditionanddisclosedtheAnnouncementofCapitalReductiononRepurchaseandCancelPartialRestrictedShareson7February2024. | Fordetails,seetherelevantannouncement(No.:2024-012)disclosedon7February2024onwww.cninfo.com.cn. |
| 3 | 10April2024 | 20thmeetingofthe10thBoardofDirectorsand13thmeetingofthe10thBoardofSupervisors | TheBoardofDirectorsreviewedandapprovedtheProposalontheAchievementofLiftingtheRestrictionConditionsintheSecondRestrictionPeriodfortheReservedGrantofthe2021RestrictedShareIncentiveScheme.TheBoardofSupervisorsreviewedandapprovedtheforegoingproposalandissuedthewrittenreviewopinions.BeijingDHHLawFirmQingdaoOfficeissuedalegalopinion.Thenumberofthesubjectsofincentiveparticipatingintheassessmentinthesecondrestrictionperiodforthereservedgrantofthe2021restrictedshareincentiveschemeoftheCompanywereupto340,andthetotalamountofrestrictedsharesthatcanbereleasedwas2,901,500. | Fordetails,seetherelevantannouncementdisclosedon12April2024onwww.cninfo.com.cn. |
| 4 | 24April2024 | - | AsauditedandconfirmedbySZSEandtheShenzhenBranchofChinaClear,theproceduresofrepurchasingandcancelling66,500sharesofauthorizedandunlockedrestrictedshareoftheincentivepersonnelnotconformingtotheincentiveconditionwerecompleted. | Fordetails,seetherelevantannouncement(No.:2024-030)disclosedon24April2024onwww.cninfo.com.cn. |
| 5 | 27April2024 | - | TheCompanyissuedtheIndicativeAnnouncementontheTradingontheMarketofLiftingtheRestrictionintheSecondRestrictionPeriodfortheReservedSharesforGrantofthe2021RestrictedShareIncentiveScheme.Therestrictedsharesreleasedthistimewerelistedandtradedon6May2024. | Fordetails,seetherelevantannouncements(No.:2024-035)disclosedon27April2024onwww.cninfo.com.cn. |
| 6 | 28May2024 | 22ndmeetingofthe10thBoardofDirectorsand15thmeetingofthe10thBoardofSupervisors | TheBoardofDirectorsreviewedandapprovedtheProposalontheAchievementofLiftingtheRestrictionConditionsintheThirdRestrictionPeriodfortheFirstGrantofthe2021RestrictedShareIncentiveSchemeandtheProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveCondition.TheBoardofSupervisorsreviewedandapprovedtheforegoingtwoproposalsandissuedthewrittenreviewopinions.BeijingDHHLawFirmQingdaoOfficeissuedalegalopinion.In2021,theCompany’sfirstrestrictedstockincentiveplangrantedsharesto704individualswhosethirdrestrictedperiodconditionsweremet,allowingatotalof6,901,500sharestobereleasedfromrestriction. | Fordetails,seetherelevantannouncementdisclosedon29May2024onwww.cninfo.com.cn. |
| 7 | 4June2024 | - | TheCompanyissuedtheIndicativeAnnouncementontheTradingontheMarketofLiftingtheRestrictionintheThirdRestrictionPeriodfortheFirstGrantofthe2021RestrictedShareIncentiveScheme.The | Fordetails,seetherelevantannouncement(No.:2024-047)disclosedon1June2023onwww.cninfo.com.cn. |
| restrictedsharesreleasedthistimewerelistedandtradedon7June2024. | ||||
| 8 | 14June2024 | The2ndExtraordinaryShareholders’Meetingof2024 | ItdeliberatedonandapprovedtheProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveConditionanddisclosedtheAnnouncementofCapitalReductiononRepurchaseandCancelPartialRestrictedShareson15June2024. | Fordetails,seetherelevantannouncement(No.:2024-051)disclosedon15June2024onwww.cninfo.com.cn. |
| 9 | 16August2024 | - | AsauditedandconfirmedbySZSEandtheShenzhenBranchofChinaClear,theproceduresofrepurchasingandcancelling59,000sharesofauthorizedandunlockedrestrictedshareoftheincentivepersonnelnotconformingtotheincentiveconditionwerecompleted. | Fordetails,seetherelevantannouncement(No.:2024-057)disclosedon16August2024onwww.cninfo.com.cn. |
Equityincentivesfordirectors,supervisorsandseniormanagementintheReportingPeriod:
?Applicable□Notapplicable
Unit:share
| Name | OfficeTitle | ShareOptionsHeldatthePeriod-begin | ShareOptionsGrantedintheReportingPeriod | SharesFeasibletoExerciseDuringtheReportingPeriod | SharesExercisedDuringtheReportingPeriod | ExercisePriceofExercisedSharesDuringtheReportingPeriod(RMB/share) | ShareOptionsHeldatthePeriod-end | MarketPriceatthePeriod-end(RMB/share) | NumberofRestrictedSharesHeldatthePeriod-begin | NumberofReleasedSharesfortheReportingPeriod | NumberofRestrictedSharesnewlyGrantedduringtheReportingPeriod | TheGrantPriceofRestrictedshares(RMB/share) | NumberofRestrictedSharesHeldatthePeriod-end |
| ZhangZhanqi | BoardofDirectors,VicePresident,HeadofGlobalMarketingDepartment,andDeanofLuThaiEngineeringTechnologyResearchInstitute | 190,000 | 190,000 | 0 | |||||||||
| ZhangKeming | Director,ChiefAccountant,HeadofFinancialManagementDepartment | 110,000 | 110,000 | 0 | |||||||||
| DuLixin | DirectorandChiefEngineer | 110,000 | 110,000 | 0 | |||||||||
| YuShouzheng | Seniormanagement | 110,000 | 110,000 | 0 | |||||||||
| GuoHeng | Seniormanagement | 110,000 | 110,000 | 0 | |||||||||
| LyuWenquan | Seniormanagement | 70,000 | 70,000 | 0 | |||||||||
| XuFeng | Seniormanagement | 95,000 | 95,000 | 0 | |||||||||
| ZhengWeiyin | BoardSecretary | 40,000 | 40,000 | 0 | |||||||||
| Total | -- | 0 | 0 | 0 | 0 | -- | 0 | -- | 835,000 | 835,000 | 0 | -- | 0 |
AppraisalofandincentiveforseniormanagementDuringtheReportingPeriod,theCompanyconstantlyimprovedtheperformanceevaluationmechanismandmadetheevaluationandincentiveoftheSeniorExecutivesconcernedwiththeCompany’sperformancesandtheindividualworkingresults.AccordingtotheoveralldevelopmentstrategyandtheannualoperatingtargetoftheCompanyattheperiod-begin,theCompanyconfirmstheannualperformancecomprehensiveindicationandthemanagementdutyofeachSeniorExecutives,andexecutestheperformanceexaminationandtheredemptionoftherewardsandpunishmentfortheSeniorExecutivesbytheRemunerationandExaminationCommitteeaffiliatedtotheBoardofDirectorsattheyear-end.TheCompanywillconstantlyimprovetheevaluationandincentivemechanismthattotightlyconcernthesalaryoftheSeniorExecutiveswiththemanagementlevelandtheoperatingperformancesothattofullymobilizeandinspiretheinitiativeandcreativityofthem.
2.ImplementationofEmployeeStockOwnershipPlans
□Applicable?Notapplicable
3.OtherIncentiveMeasuresforEmployees?Applicable□NotapplicableForthesecondrestrictedperiodofthereservedgrantofsharesofthe2021restrictedshareincentivescheme,therestrictedshareswerereleasedfortradingon6May2024.Excludingdirectorsandseniorexecutives,theCompanyliftedtherestrictionson2,426,500restrictedsharesfor331mid-levelmanagersandcorepersonnel.Forthethirdrestrictedperiodoftheinitialgrantofsharesofthe2021restrictedshareincentivescheme,therestrictedshareswerereleasedfortradingon7June2024.Excludingdirectorsandseniorexecutives,theCompanyliftedtherestrictionson6,391,500restrictedsharesfor695mid-levelmanagersandcorepersonnel.XIIEstablishmentandExecutionoftheInternalControlSystemfortheReportingPeriod
1.EstablishmentandExecutionoftheInternalControlSystemAccordingtoFundamentalNormsforInternalControlofEnterprises,SupportingGuidelinesforInternalControlofEnterprisesandrelevantprovisionsprescribedbysecuritiesregulatorsfortheinternalcontrolestablishmentoflistedcompanies,combiningtheactualstatusoftheCompany’sbusiness,theCompanyestablishedtheinternalcontrolsystemthatcoversallstagesincludingproductionandmanagement,aswellasadaptstotheCompany’smanagementrequirementsanddevelopmentneeds.Itisrelativelynormativeandcomplete,forwhichitsorganizationiscompleteandreasonablydesigned,itsimplementationisbasicallyeffective,andthereisnosubstantialomission,soastoensurethattheCompany’soperationandmanagementislegalandcompliant,theassetsaresafe,andthefinancialreportsandrelatedinformationaretrueandcomplete,andmaintainthefundamentalinterestsofallshareholdersoftheCompany.WithinReportingPeriod,relevantsystemsandproceduresweretimelystreamlinedandoptimizedandthesoundoperationofriskmanagementandinternalcontrolsystemwasensuredbytheCompanyinlinewiththechangeofallbusinessproceduresandauditresults,withoutanyviolationoflaws,regulationsorArticlesofAssociation.
2.MaterialInternalControlWeaknessesIdentifiedfortheReportingPeriod
□Yes?No
XIII.ManagementandControloverSubsidiariesbytheCompanyfortheReportingPeriod
| Subsidiary | IntegrationPlan | IntegrationProgress | Problem | CountermeasuresTaken | SettlementProgress | Follow-upSettlementPlan |
| - | - | - | - | - | - | - |
XIV.InternalControlEvaluationReportorIndependentAuditor’sReportOnInternalControl
1.InternalControlEvaluationReport
| Disclosuredateoftheinternalcontrolself-evaluationreport | 10April2025 | |
| Indextothedisclosedinternalcontrolself-evaluationreport | Fordetails,pleaserefertotheSelf-appraisalReportonInternalControlofLuThaiTextileCo.,Ltd.simultaneouslydisclosedonwww.cninfo.com.cnwiththe2024AnnualReportoftheCompany. | |
| Evaluatedentities’combinedassetsas%ofconsolidatedtotalassets | 80.45% | |
| Evaluatedentities’combinedoperatingrevenueas%ofconsolidatedoperatingrevenue | 86.75% | |
| Identificationstandardsforinternalcontrolweaknesses | ||
| Category | Weaknessesininternalcontroloverfinancialreporting | Weaknessesininternalcontrolnotrelatedtofinancialreporting |
| Naturestandard | Greatdefect:(1)malpracticesoftheDirectors,SupervisorsandSeniorExecutives;(2)theCPAfoundedthecurrentfinancialreportoccurredsignificantmisstatementwhileduringtheimplementationprocessoftheinternalcontrolcouldnotfoundedthemisstatement;(3)thesupervisionoftheAuditCommitteeandtheinternalauditinstitutionoftheCompanyontheinternalcontrolwasinvalid;(4)otherdefectsthatmaycausetheCompanytodeviatesignificantlyfromitscontrolobjectives.Significantdefeat:(1)hadnotabidebythegenerallyacceptedaccountingprinciplestochooseandapplytheaccountingpolicies;hadnotbuiltuptheanti-fraudandsignificantcounterbalancemechanismandcontrolmeasures;(2)duringthefinancialreportprocess,thereoccurredsingleormultipledefectswhichnotreachedtherecognitionstandardofthesignificantdefeatbutinfluencedthetrueandaccuratetargetofthefinancialreport.Generaldefect:otherinternalcontroldefectwhichhadnotconstructedasthegreatdefeat,significantdefect. | Greatdefect:(1)seriouslyviolatedthenationallawsandregulations;(2)thedecision-makingoftheenterprisewasnotscientificthatledtotheseriousmistakesofitself;(3)outflowofthemanagementpersonnelorthetechnicianpersonnelwasserious;(4)frequentlyappearedthenegativenewsfromtheMedia;(5)thesignificantbusinesslackedofsystematiccontrolorthesystematiccontrolwasinvalid;(6)theresultoftheinternalcontrolassessmentwhichwasthegreatdefecteventhadnotbeenrevised.Significantdefeat:(1)violatedtheenterpriseinternalregulationsthatcausedratherseriouslosses;(2)significantbusinesslackedofsystematiccontrol;(3)outflowoftheratherimportantpersonnelwasserious;(4)theMediareportedthenegativenewsthatcausedratherseriousnegativeinfluence;(5)ratherimportantbusinesslackedofsystematiccontrolorthesystematiccontrolwasinvalid;(6)theresultsoftheinternalcontrolassessmentwhichasthesignificantdefecthadnotbeenrevised.Generaldefect:otherinternalcontroldefectwhichhadnotconstructedasthegreatdefeat,significantdefect. |
| Quantitativestandard | Greatdefect:misstatement≥0.4%ofthetotaloperatingincome;misstatement≥0.4%ofthetotalowners’equitiesamount;misstatement≥0.3%ofthe | Greatdefect:losses≥0.4%ofthetotaloperatingincome;losses≥0.4%ofthetotalowners’equitiesamount;losses≥0.3%ofthetotalassetsamount.Great |
| totalassetsamount.Notinsignificant:0.2%ofthetotaloperatingincome;≤misstatement<0.4%ofthetotaloperatingincome;0.2%ofthetotalowners’equitiesamount≤misstatement<0.4%ofthetotalowners’equitiesamount;0.15%ofthetotalassetsamount≤misstatement<0.3%ofthetotalassetsamount.Insignificant:misstatement<0.2%ofthetotaloperatingincome;misstatement<0.2%ofthetotalowners’equitiesamount;misstatement<0.15%ofthetotalassetsamount. | defect:0.2%ofthetotaloperatingincome≤losses<0.4%ofthetotaloperatingincome;0.2%ofthetotalowners’equitiesamount≤losses<0.4%ofthetotalowners’equitiesamount;0.15%ofthetotalassetsamount≤losses<0.3%ofthetotalassetsamount.Generaldefect:losses<0.2%ofthetotaloperatingincome;losses<0.2%ofthetotalowners’equitiesamount;losses<0.15%ofthetotalassetsamount. | |
| Numberofmaterialweaknessesininternalcontroloverfinancialreporting | 0 | |
| Numberofmaterialweaknessesininternalcontrolnotrelatedtofinancialreporting | 0 | |
| Numberofseriousweaknessesininternalcontroloverfinancialreporting | 0 | |
| Numberofseriousweaknessesininternalcontrolnotrelatedtofinancialreporting | 0 | |
2.IndependentAuditor’sReportonInternalControl?Applicable□Notapplicable
| OpinionParagraphintheIndependentAuditor’sReportonInternalControl | |
| TotheshareholdersofLuThaiTextileCo.,Ltd:AccordingtoAuditGuidelinesforEnterpriseInternalControlandtherelevantrequirementsofAuditingStandardsforChineseCertifiedPublicAccountants,wehaveauditedtheeffectivenessofinternalcontrolinthefinancialreportofLuThaiTextileCo.,Ltd.(HereinafterreferredtoasLuThaiTextile)by31December2024.I.ResponsibilitiesofLuThaiTextileforinternalcontrolTheBoardofDirectorsofLuThaiTextileisresponsibleforestablishing,improvingandimplementationtheinternalcontrolsandevaluatingitseffectivenessinaccordancewithStandardforEnterpriseInternalControl,ApplicationGuidelinesforEnterpriseInternalControl,EnterpriseInternalControlAuditGuidelines.II.ResponsibilitiesofcertifiedpublicaccountantsItisourresponsibilitytoissueanauditopinionontheeffectivenessofinternalcontrolsinfinancialreportonthebasisoftheimplementationoftheaudit,andtodisclosesignificantdeficienciesintheinternalcontrolsofnon-financialreportsthathavebeennoted.III.InherentlimitationsofinternalcontrolInternalcontrolhasinherentlimitations,andthereisapossibilitythatmisreportingcannotbeprevented.Inaddition,becausethechangeofcircumstancesmaycausetheinternalcontroltobecomeinappropriateorthedegreeofcompliancewiththecontrolpoliciesandproceduresisreduced,itisriskytoinfertheeffectivenessofthefutureinternalcontrolbasedontheauditresultsoftheinternalcontrol.IV.AuditOpiniononInternalControlinFinancialReportWebelievethatLuThaiTextileCo.,Ltd.kepteffectivelyinternalcontrolonfinancialreportinginallrespectsaccordingtoFundamentalNormsforInternalControlofEnterprisesandtherelevantprovisionson31December2024. | |
| Independentauditor’sreportoninternalcontroldisclosedornot | Disclosed |
| Disclosuredate | 10April2025 |
| Indextosuchreportdisclosed | Fordetails,pleaserefertotheAuditor’sReportonInternalControlonwww.cninfo.com.cnatthesametimeofdisclosingtheCompany’s2024AnnualReport. |
| Typeoftheauditor’sopinion | Unmodifiedunqualifiedopinion |
| Materialweaknessesininternalcontrolnotrelatedto | Not |
Indicatebytickmarkwhetheranymodifiedopinionisexpressedintheindependentauditor’sreportontheCompany’sinternalcontrol.
□Yes?NoIndicatebytickmarkwhethertheindependentauditor’sreportontheCompany’sinternalcontrolisconsistentwiththeinternalcontrolself-evaluationreportissuedbytheCompany’sBoard.?Yes□NoXVRectificationsofProblemsIdentifiedbySelf-InspectionintheSpecialActionforListedCompanyGovernanceNotapplicable
PartVEnvironmentalandSocialResponsibilityI.MajorEnvironmentalIssuesIndicatebytickmarkwhethertheCompanyoranyofitssubsidiariesisaheavilypollutingbusinessidentifiedbytheenvironmentalprotectionauthoritiesofChina.?Yes□NoPoliciesandindustrystandardspertainingtoenvironmentalprotectionDuringproductionandoperation,LuThaiTextileCo.,Ltd.anditssubsidiaries,LuFengCompany
LimitedandShandongLulianNewMaterialsCo.,Ltd.,ZiboXinshengThermalPowerCo.,Ltd.,aresubjecttothefollowinglawsandregulationsandindustrystandardsrelatedtoenvironmental
protection:TheEnvironmentalProtectionLawofthePeople’sRepublicofChina,theLawofthePeople’sRepublicofChinaonPreventionandControlofWaterPollution,theLawofthePeople’sRepublicofChinaonthePreventionandControlofAtmosphericPollution,theLawofthePeople’sRepublicofChinaonthePreventionandControlofSolidWastePollution,theContingencyManagementMeasuresforEnvironmentalEmergencies,theEmissionStandardsofWaterPollutantsinTextileDyeingandFinishingIndustry(GB4287-2012),theStandardforPollutionControlontheMunicipalSolidWasteIncineration(GB18485-2014),andtheEmissionStandardofAirPollutantsofThermalPowerPlants(DB37/664-2019).StatusofenvironmentalprotectionadministrativelicenseLuThaiTextileCo.,Ltd.anditsholdingsubsidiaries,includingLuFengCompanyLimited,ShandongLulianNewMaterialsCo.,Ltd.,andZiboXinshengThermalPowerCo.,Ltd.carriedoutpollutantdischargepermitmanagementandweregrantedthepollutantdischargepermitbytheEcologyandEnvironmentBureauofZibo.ThecurrentpollutantdischargepermitofLuThaiTextileCo.,Ltd.isvaliduntil9June2026;thatofLuFengCompanyLimitedisvaliduntil22November2026;thatofShandongLulianNewMaterialsCo.,Ltd.isvaliduntil25October2026;thatofZiboXinshengThermalPowerCo.,Ltd.isvaliduntil22June2025.Theregulationsforindustrialemissionsandtheparticularrequirementsforcontrollingpollutantemissionsthoseareassociatedwithproductionandoperationalactivities.
| Name | 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:248.109tons;AmmoniaNitrogen:3.424tons | COD:1495.08tons;ammonianitrogen:149.51tons | N/A |
| LuFengCompanyLimited | Sewage | CODandammonianitrogen | Continuousdischarge | 1 | ChiefdischargeoutletofLuFengCompanyLimited | COD≤200mg/L;ammonianitrogen≤20mg/L | EmissionstandardofwaterpollutantsintextiledyeingandfinishingindustryGB4287-2012 | COD:103tons;AmmoniaNitrogen:1.241tons | CODis653.53tons;ammonianitrogenis65.3tons | N/A |
| ShandongLulian | Sewage | CODandammonia | Continuousdischarge | 1 | Chiefdischarge | COD≤200mg/L;ammonianitrogen≤ | Emissionstandardof | COD:15.834 | CODis175.30 | N/A |
| NewMaterialsCo.,Ltd. | nitrogen | outletofLulianNewMaterials | 20mg/L | waterpollutantsintextiledyeingandfinishingindustryGB4287-2012 | tons;Ammonianitrogen:0.352tons | tons;ammonianitrogenis17.5tons | ||||
| ZiboXinshengThermalPowerCo.,Ltd. | Wastegas | SO2,NQx,andPM | Organizedcontinuousdischarge | 4 | Productionplant | SO2:≤35mg/m3,NQx:≤50mg/m3,PM:≤5mg/m3 | EmissionstandardofairpollutantsofThermalPowerPlantinShandongProvinceDB37/664-2019 | SulfurDioxide:20.2tons,NitrogenOxides:148tons,ParticulateMatter:6.68tons | SO2is236.13t/a,NQx:674.63t/a,PM:67.47t/a. | N/A |
TreatmentofpollutantsLuThaiTextileCo.,Ltd.(hereinafterreferredtoas“theCompany”)anditssubsidiaryLuFengCompanyLimited(hereinafterreferredtoas“Lufeng”)andShandongLulianNewMaterialsCo.,Ltd.(hereinafterreferredtoas“LulianNewMaterials”)strictlyimplementthe“threesimultaneous”managementpolicyforenvironmentalprotectioninconstructionprojects,andbuildwastewaterandexhaustgaspollutioncontrolfacilities.(hereinafterreferredtoas“LulianNewMaterials”)strictlyimplementthe“ThreeSimultaneous”managementsystemforenvironmentalprotectioninprojectconstructions.Thecompaniesareequippedwithcompletefacilitiesforwastegasandwastewatertreatment.LuThaiTextileCo.,Ltd.anditsmajority-ownedsubsidiaryLufengCompanyLimitedandShandongLulianNewMaterialsCo.,Ltd.continuouslyoptimizethedyeingwastewatertreatmentprogress,improvethetreatedwaterquality,ensurethatthepollutantemissionconcentrationisbetterthanthenationalstandard,furtherimprovetheriverwaterqualityandlocalecologicalenvironment.TheCompanyandLufengWeaving&Dyeingcentralizedlycollectedandcopedwiththedyeingandfinishingwastegas,soastogreatlyreducethepollutantemissionconcentration.Onlinesupportingmonitoringfacilitieswerebuilt,whosedatawasuploadedtothegovernmentenvironmentalmonitoringsystem,tocomprehensivelymonitortheCompany’semissionpollutantssuchaswastewaterandwastegas.Supportteamsweresetuptoberesponsiblefordailyoperationmaintenanceandinspectiontoguaranteethenormaloperationoffacilities.Boththeexhaustemissionandwastewaterdischargemeettheemissionstandards.ThesubsidiaryZiboXinshengThermalPowerCo.,Ltd.(hereinafterreferredtoas“XinshengThermalPower”)enforcesthe“ThreeSimultaneous”managementsystemforenvironmentalprotectioninextensionprojectconstructioninaccordancewiththegovernmentrequirements,andadoptsthe“limestone-gypsummethod”toreduceemissionconcentrationofsulphurdioxide,the“Low-nitrogencombustion+SNCR”and“SNCR+SCRmethod”toreduceemissionconcentrationofnitrogenoxides,andthe“electric-bagelectrostaticprecipitator+wetelectrostaticprecipitator”toreducesootemissionconcentration.Theoverallsystemworkswell.EmergencyplanforenvironmentalincidentsInordertopreventenvironmentalpollutionaccidents,theCompanyanditssubsidiaryLufengandLulianNewMaterialsrespectivelypreparedtheEmergencyPlanforEnvironmentalIncidents,whichwerefiledwithZiboEnvironmentalProtectionBureauZichuanBranch.ThePlanincludescontentssuchasenvironmentalrisksourcesidentificationandriskassessment,preventionandearlywarningmechanism,emergencysecurity,andsupervisionandmanagement.ThesubsidiaryZiboXinshengThermalPowerCo.,Ltd.hasformulatedtheEmergencyPlanforEnvironmentalIncidentsandfileditwiththeecologicalandenvironmentalmanagementdepartment.
Theidentificationandriskassessmentofenvironmentalrisksources,preventionandearlywarningmechanisms,emergencyprotectionandsupervisionandmanagementwereincludedintheplan.Environmentalself-monitoringprogramInaccordancewiththerequirementsofthecompetentenvironmentauthorities,theCompanyanditssubsidiaryLufengandLulianNewMaterialsobservedtherequirementsofthesuperiorenvironmentalprotectiondepartmenttoinstallautomaticwastewatermonitoringfacilitiesandachievereal-timemonitoringofwastewaterdischarge.Besides,theautomaticenvironmentmonitoringplanwaspreparedasrequiredbyemissionpermit.Inaddition,theyinvitedaqualifiedtestinginstitutiontoconducttestsonsewageandwastegasbasedonthefrequencyofmonitoring,disclosedthemonitoringdataintime,andsubmittedthetestreportstothecompetentenvironmentauthoritiesensuringthemonitoringdataistrueandvalid.ThesubsidiaryZiboXinshengThermalPowerCo.,Ltd.hasimplementedonlinereal-timemonitoringofenvironmentaldatainaccordancewiththerequirementsofthesuperiorenvironmentalprotectiondepartment,andhasachievedemissionstandards.Inputinenvironmentgovernanceandprotectionandpaymentofenvironmentalprotectiontax
DuringtheReportingPeriod,theinputinenvironmentgovernanceandprotectionandpaymentofenvironmentalprotectiontaxfortheCompanyanditssubsidiariesLuFeng,LulianNewMaterialsandXinshengThermalPowerareRMB44,784,500intotal,amongwhich,RMB43,622,000forinputinenvironmentgovernanceandprotectionandRMB1,162,500forpaymentofenvironmentalprotectiontax.
MeasurestakentodecreasecarbonemissionintheReportingPeriodandcorrespondingeffects?Applicable□NotapplicableTheCompanyinstalledandconnected70.26MWofsolarphotovoltaicpowergeneration,accountingfor13%ofthetotalelectricityusagewithintheinstallationrange,reducingcarbondioxideemissionsby78,000tons.AdministrativepenaltiesimposedforenvironmentalissuesduringtheReportingPeriod
| Name | Reason | Case | Result | InfluenceonProductionandOperation | RectificationMeasures |
| N/A | N/A | N/A | N/A | N/A | N/A |
OtherenvironmentinformationthatshouldbedisclosedN/AOtherrelatedenvironmentprotectioninformationN/ATheCompanyshallabidebyrelevantdisclosurerequirementsoftheSelf-RegulatoryGuidelinesofShenzhenStockExchangeforListedCompaniesNo.3-IndustryInformationDisclosureontextileandgarmentindustry.RelatedenvironmentalaccidentsinformationN/A
II.SocialResponsibilityFormoredetails,pleaserefertotheESGReport2024simultaneouslydisclosedwiththeAnnualReport2024.III.ConsolidationandExpansionofPovertyAlleviationOutcomes,AndRuralRevitalizationNotapplicable
PartVISignificantEventsI.FulfilmentofCommitments
1.CommitmentsoftheCompany’sDeFactoController,Shareholders,RelatedPartiesandAcquirers,aswellastheCompanyItselfandOtherEntitiesFulfilledintheReportingPeriodorOngoingatthePeriod-End?Applicable□Notapplicable
| Commitment | Promisor | TypeofCommitment | DetailsofCommitment | DateofCommitmentMaking | TermofCommitment | Fulfilment |
| CommitmentsmadeintimeofIPOorrefinancing | Controllingshareholder,actualcontroller | DilutionofatsightreturnsonpublicofferingA-shareconvertiblecorporatebonds | 1.NotintervenetheCompany’soperationandmanagementbeyondtheauthorityandnotoccupytheCompany’sinterests.2.FromtheissuancedateofthiscommitmenttothecompletionoftheimplementationoftheCompany’spublicofferingofA-shareconvertiblecorporatebonds,iftheCSRCmakesothernewregulatoryprovisionsonremedialmeasuresforreturnsandthecommitment,andtheabovecommitmentfailstomeettherequirementsoftheCSRC,thecompany/IpromisetoissuesupplementarycommitmenttheninaccordancewiththelatestregulationsofCSRC.3.CommitmentismadetofulfiltheCompany’srelevantremedialmeasuresforreturnsandanycommitmentmadehereinbythecompany/me.Ifthecompany/Iviolate(s)suchcommitmentandcause(s)lossestotheCompanyorinvestors,thecompany/IwillbearthecompensationresponsibilitytotheCompanyorinvestorsinaccordancewiththelaw. | 23May2019 | From23May2019to8April2026 | On-going |
| Commitments | Directorsand | Dilutionofat | 1.Commitmentismade | 23May2019 | From23May | On-going |
| madeintimeofIPOorrefinancing | seniormanagementoftheCompany | sightreturnsonpublicofferingA-shareconvertiblecorporatebonds | nottotransferbenefitstootherunitsorindividualsfreeofchargeorunderunfairconditions,andnootherwaysdamagingtheinterestsoftheCompanywillbetaken.2.IwillstrictlyabidebythebudgetmanagementoftheCompany,andacceptthestrictsupervisionandmanagementoftheCompanytoavoidwasteorexcessiveconsumption.Anyposition-relatedconsumptionbehavioursofmewilloccurwithinthescopenecessaryfortheperformanceofmyduties.3.CommitmentismadenottousetheCompany’sassetstoengageininvestmentandconsumptionactivitiesunrelatedtotheperformanceofduties.4.CommitmentismadethattheremunerationsystemdevelopedbytheBoardofDirectorsortheRemunerationCommitteeislinkedtotheimplementationoftheCompany’sremedialmeasuresforreturns.5.CommitmentismadethattheconditionsforexercisingtheEquityIncentivePlantobeissuedinthefuturewillbelinkedtotheimplementationoftheCompany’sremedialmeasuresforreturns.6.FromtheissuancedateofthiscommitmenttothecompletionoftheimplementationoftheCompany’spublicofferingofA-shareconvertiblecorporatebonds,iftheCSRCmakesothernewregulatoryprovisions | 2019to8April2026 |
| onremedialmeasuresforreturnsandthecommitment,andtheabovecommitmentfailstomeettherequirementsoftheCSRC,IpromisetoissuesupplementarycommitmenttheninaccordancewiththelatestregulationsofCSRC.7.CommitmentismadetofulfiltheCompany’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 | Completed |
| Executedontimeornot | Yes | |||||
2.Wheretherehadbeenanearningsforecastforanassetorprojectandthereportingperiodwasstillwithintheforecastperiod,explainwhytheforecasthasbeenreachedfortheReportingPeriod.
□Applicable?NotapplicableII.OccupationoftheCompany’sCapitalbytheControllingShareholderorAnyofItsRelatedPartiesforNon-OperatingPurposes
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.III.IrregularitiesintheProvisionofGuarantees
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.IV.ExplanationsGivenbytheBoardofDirectorsRegardingtheLatest“ModifiedOpinion”ontheFinancialStatements
□Applicable?NotapplicableV.ExplanationsGivenbytheBoardofDirectors,theBoardofSupervisorsandtheIndependentDirectors(IfAny)RegardingtheIndependentAuditor’s“ModifiedOpinion”ontheFinancialStatementsoftheReportingPeriod
□Applicable?NotapplicableVI.YoYChangestoAccountingPolicies,EstimatesorCorrectionofMaterialAccountingErrors
□Applicable?NotapplicableDuringtheReportingPeriod,therewerenochangesinaccountingpolicies,estimates,orcorrectionsofsignificantaccountingerrors.VII.YoYChangestotheScopeoftheConsolidatedFinancialStatements
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.VIII.EngagementandDisengagementofIndependentAuditorCurrentindependentauditor:
| Nameofthedomesticindependentauditor | GrantThorntonChina(SpecialGeneralPartnership) |
| TheCompany’spaymenttothedomesticindependentauditor(RMB’0,000) | 173.5 |
| HowmanyconsecutiveyearsthedomesticindependentauditorhasprovidedauditservicefortheCompany | 6 |
| Namesofthecertifiedpublicaccountantsfromthedomesticindependentauditorwritingsignaturesontheauditor’sreport | HeFeng,CuiXiaoli |
| HowmanyconsecutiveyearsthecertifiedpublicaccountantshaveprovidedauditservicefortheCompany | 5 |
IndicatebytickmarkwhethertheindependentauditorwaschangedfortheReportingPeriod.
□Yes?NoIndependentauditor,financialadvisororsponsorengagedfortheauditofinternalcontrols:
?Applicable□NotapplicableTheCompanyheldthe2023AnnualGeneralMeetingon15May2024andapprovedtheProposalonRenewalEngagementofthe2024FinancialAuditandInternalControlAuditoranddecidedtorenewthecontractwithGrantThorntonChina(SpecialGeneralPartnership)for2024financialauditandinternalcontrolaffairsandpaidRMB1,735,000intotalfor2023financialreportauditandtheinternalcontrolaudit.IX.PossibilityofDelistingafterDisclosureofthisReport
□Applicable?NotapplicableX.InsolvencyandReorganization
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.XI.MajorLegalMatters
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.XII.PunishmentsandRectifications
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.XIII.CreditQualityoftheCompanyaswellasItsControllingShareholderandActualController
□Applicable?NotapplicableXIV.MajorRelated-PartyTransactions
1.SignificantRelated-PartyTransactionsRelevanttotheCompany’sDay-To-DayManagement
□Applicable?NotapplicableTheCompanyhadnorelated-partytransactionsrelevanttoday-to-daymanagementintheReportingPeriod.
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.XV.MajorContractsandExecutionthereof
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 | DisclosureDateoftheGuaranteeLineAnnouncement | LineofGuarantee | ActualOccurrenceDate | ActualGuaranteeAmount | TypeofGuarantee | Collateral(IfAny) | Counter-Guarantee(IfAny) | TermOfGuarantee | HavingExpiredorNot | GuaranteeforaRelatedPartyorNot |
| GuaranteesProvidedbytheCompanyforitsSubsidiaries | ||||||||||
| Obligor | DisclosureDateoftheGuarantee | LineofGuarantee | ActualOccurrenceDate | ActualGuaranteeAmount | TypeofGuarantee | Collateral(IfAny) | Counter-Guarantee(IfAny) | TermOfGuarantee | HavingExpiredorNot | GuaranteeforaRelated |
| LineAnnouncement | PartyorNot | |||||||||
| Wholly-ownedSubsidiaries | 26August2022 | 23,721.72 | 24August2022 | 0 | Joint-liability | N/A | N/A | ThreeyearssincetheapprovaloftheboardoftheCompany | Yes | Yes |
| Wholly-ownedSubsidiaries | 1July2023 | 7,188.4 | 30June2023 | 0 | Joint-liability | N/A | N/A | ThreeyearssincetheapprovaloftheboardoftheCompany | Yes | Yes |
| TotalapprovedlineforsuchguaranteesintheReportingPeriod(B1) | 0 | TotalactualamountofsuchguaranteesintheReportingPeriod(B2) | 558.54 | |||||||
| TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(B3) | 0 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(B4) | 0 | |||||||
| Guaranteesprovidedbetweensubsidiaries | ||||||||||
| Obligor | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate | Actualguaranteeamount | Typeofguarantee | Collateral(ifany) | Counter-guarantee(ifany) | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
| Wholly-ownedSubsidiaries | 9July2024 | 25,159.4 | 6July2024 | 9,186.2 | Joint-liability | N/A | N/A | ThreeyearssincetheapprovaloftheboardoftheCompany | Not | Yes |
| Wholly-ownedSubsidiaries | 30August2024 | 21,565.2 | August28,2024 | 0 | Joint-liability | N/A | N/A | ThreeyearssincetheapprovaloftheboardoftheCompany | Not | Yes |
| TotalapprovedlineforsuchguaranteesintheReportingPeriod(C1) | 46,724.6 | TotalactualamountofsuchguaranteesintheReportingPeriod(C2) | 9,186.2 | |||||||
| TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(C3) | 46,724.6 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(C4) | 9,186.2 | |||||||
| Totalguaranteeamount(totalofthethreekindsofguaranteesabove) | ||||||||||
| TotalguaranteelineapprovedintheReportingPeriod(A1+B1+C1) | 46,724.6 | TotalactualguaranteeamountintheReportingPeriod(A2+B2+C2) | 9,744.74 | |||||||
| TotalapprovedguaranteelineattheendoftheReportingPeriod(A3+B3+C3) | 46,724.6 | TotalactualguaranteebalanceattheendoftheReportingPeriod(A4+B4+C4) | 9,186.2 | |||||||
| Totalactualguaranteeamount(A4+B4+C4)as%oftheCompany’snetassets | 0.97% | |||||||||
| Ofwhich: | ||||||||||
| Balanceofguaranteesprovidedforshareholders,actualcontrollerandtheirrelatedparties(D) | 0 |
| Balanceofdebtguaranteesprovideddirectlyorindirectlyforobligorswithanover70%debt/assetratio(E) | 0 |
| Amountbywhichthetotalguaranteeamountexceeds50%oftheCompany’snetassets(F) | 0 |
| Totalofthethreeamountsabove(D+E+F) | 0 |
| JointresponsibilitiespossiblyborneoralreadyborneintheReportingPeriodforundueguarantees(ifany) | N/A |
| Explanationaboutexternalguaranteeviolatingestablishedprocedure(ifany) | N/A |
Compoundguarantees:
N/ATheCompanyshallabidebyrelevantdisclosurerequirementsoftheSelf-RegulatoryGuidelinesofShenzhenStockExchangeforListedCompaniesNo.3-IndustryInformationDisclosureontextileandgarmentindustry.WhethertheCompanyprovidesguaranteesorfinancialassistancefordealers
□Yes?No
3.CashEntrustedforWealthManagement
(1)CashEntrustedforWealthManagement?Applicable□NotapplicableOverviewsofcashentrustedforwealthmanagementduringtheReportingPeriod
Unit:RMB’0,000
| SpecificType | CapitalResources | AmountIncurred | UndueBalance | OverdueAmount | OverdueAmountwithProvisionforImpairment |
| Bankfinancialproducts | Self-ownedfunds | 29,500 | 23,000 | 0 | 0 |
| Bankfinancialproducts | Raisedfunds | 5,000 | 0 | 0 | 0 |
| Brokeragefinancialproducts | Self-ownedfunds | 15,000 | 15,000 | 0 | 0 |
| Others | Self-ownedfunds | 0 | 40,000 | 0 | 0 |
| Total | 49,500 | 78,000 | 0 | 0 | |
Particularsofentrustedcashmanagementwithsinglesignificantamountorlowsecurity,badliquidity,andnocapitalpreservation
□Applicable?NotapplicableWhetherthereisthecasewheretheprincipalcannotberecoveredatmaturityorothercasewhichmaycauseimpairmentforentrustedassetmanagement
□Applicable?Notapplicable
(2)EntrustedLoans
□Applicable?Notapplicable
NosuchcasesintheReportingPeriod.
4.OtherMajorContracts
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.XVI.OtherSignificantEvents?Applicable□NotapplicableTheProposalonRepurchaseofDomesticallyListedForeignShares(B-Stock)wasapprovedatthe10thMeetingofthe10thBoardofDirectorsandtheFirstExtraordinaryGeneralMeetingof2023.Assuch,anamountofnomorethanRMB200millionwouldbeusedtorepurchaseshares,withapricelimitofHKD4.80pershare,within12monthsfromthedatewhenthesharerepurchaseplanwasapprovedatthegeneralmeeting.On21August2023,theCompanyfirstimplementedarepurchaseplan.Asat21February2024,therepurchaseoftheCompany’sB-shareslisteddomesticallyhadbeencompleted,withatotalof46,176,428sharesrepurchased,accountingfor
5.35%ofthetotalsharecapital.ThehighestrepurchasepricewasHKD4.80pershare,andthelowestwasHKD4.53pershare.ThetotalpaymentamountedtoHKD218,386,229.84(includingcommissions,etc.).On1March2024,therepurchasedB-shareswerecancelledandtheprocedurewascompletedwithChinaSecuritiesDepositoryandClearingCorporationLimitedShenzhenBranch.Fordetails,seetherelevantannouncement(No.:2024-015)disclosedon2March2024onwww.cninfo.com.cn.XVII.SignificantEventsofSubsidiaries
□Applicable?Notapplicable
PartVIIShareChangesandShareholderInformationI.ShareChanges
1.ShareChanges
Unit:share
| Before | Increase/DecreaseintheReportingPeriod(+/-) | After | |||||||
| Shares | Percentage(%) | Newissues | Sharesasdividendconvertedfromprofit | Sharesasdividendconvertedfromcapitalreserves | Other | Subtotal | Shares | Percentage(%) | |
| I.Restrictedshares | 11,467,817 | 1.33% | -8,806,925 | -8,806,925 | 2,660,892 | 0.33% | |||
| 1.SharesheldbyState | |||||||||
| 2.Sharesheldbystate-ownedlegalperson | |||||||||
| 3.Sharesheldbyotherdomesticinvestors | 11,467,817 | 1.33% | -8,806,925 | -8,806,925 | 2,660,892 | 0.33% | |||
| Amongwhich:Sharesheldbydomesticlegalperson | |||||||||
| Sharesheldbydomesticnaturalperson | 11,467,817 | 1.33% | -8,806,925 | -8,806,925 | 2,660,892 | 0.33% | |||
| 4.Sharesheldbyotherforeigninvestors | 0 | ||||||||
| Amongwhich:Sharesheldbyforeigncorporations | 0 | ||||||||
| Sharesheldbyforeignnaturalperson | 0 | ||||||||
| II.Unrestrictedshares | 852,139,817 | 98.67% | -37,494,699 | -37,494,699 | 814,645,118 | 99.67% | |||
| 1.RMBordinaryshares | 579,894,874 | 67.15% | 8,681,729 | 8,681,729 | 588,576,603 | 72.01% | |||
| 2.Domesticallylistedforeignshares | 272,244,943 | 31.52% | -46,176,428 | -46,176,428 | 226,068,515 | 27.66% | |||
| 3.Overseas | 0 | ||||||||
| listedforeignshares | |||||||
| 4.Other | 0 | ||||||
| III.Totalshares | 863,607,634 | 100.00% | -46,301,624 | -46,301,624 | 817,306,010 | 100.00% |
Reasonsforsharechanges:
?Applicable□Notapplicablea)DuetothefactthattheCompanyhadissuedconvertibleA-sharebondson9April2020,convertiblebondswereconvertedto304sharesintheperiodfromthebeginningof2024to31December2024.b)On6May2024and7June2024,2,901,500and6,901,500sharesofrestrictedshareswereliftedfromrestriction.c)On1March2024,thecancellationoftherepurchasedB-shareslisteddomesticallywascompleted,with46,176,428sharescancelled.d)125,500sharesofequityincentiverestrictedshareswererepurchasedandcancelled.e)Thesharesheldbythedirectors,supervisorsandseniormanagementshallbelockedandadjustedinaccordancewithrelevantregulationsonexecutivesharemanagement.Approvalofsharechanges:
?Applicable□Notapplicablea)On10April2024,theCompanyheldthe20thMeetingofthe10thBoardofDirectorsandthe13thMeetingofthe10thBoardofSupervisors,andreviewedandapprovedtheProposalontheAchievementofLiftingtheRestrictionConditionsintheSecondRestrictionPeriodfortheReservedGrantofthe2021RestrictedShareIncentiveScheme.Also,theCompanyagreedtoprocesstherestrictionliftingmattersfor2,901,500restrictedsharesheldby340incentivepersonnelwhomettherestrictionliftingconditionsinthesecondrestrictionperiodforthereservedsharesforgrantunderthe2021RestrictedShareIncentiveScheme.b)On28May2024,theCompanyheldthe22ndMeetingofthe10thBoardofDirectorsandthe15thMeetingofthe10thBoardofSupervisors,andreviewedandapprovedtheProposalontheAchievementofLiftingtheRestrictionConditionsintheThirdRestrictionPeriodfortheFirstGrantofthe2021RestrictedShareIncentiveScheme.Also,theCompanyagreedtoprocesstherestrictionliftingmattersfor6,901,500restrictedsharesheldby704incentivepersonnelwhomettherestrictionliftingconditionsinthethirdrestrictionperiodforthefirstgrantofthe2021RestrictedShareIncentiveScheme.c)TheCompanyheldthe10thMeetingofthe10thBoardofDirectorson19June2023andthe1stExtraordinaryGeneralMeetingof2023on6July2023,reviewingandapprovingtheProposalonRepurchaseoftheDomesticallyListedForeignShares(BShare).TheCompanyrepurchased46,176,428B-sharesintotalthroughcallauctionviaitssecuritiesaccountforrepurchaseandcompletedtheformalitiesforcancellationoftheforegoingrepurchasedsharesattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimitedon1March2024.d)Therepurchaseandcancellationof125,500restrictedshareswasapprovedattheCompany’sFirstExtraordinaryGeneralMeetingof2024on5February2024andtheSecondExtraordinaryGeneralMeetingof2024on14June2024.Transferofshareownership:
?Applicable□NotapplicableTheCompanycompletedtheformalitiesforcancellationofthe46,176,428repurchasedB-sharesand66,500sharesofequityincentiverestrictedsharesattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimitedrespectivelyon1March2024,1April2024and14August2023.Effectsofsharechangesonthebasicanddilutedearningspershare,equitypershareattributabletotheCompany’sordinaryshareholdersandotherfinancialindicatorsoftheprioryearandtheprioraccountingperiod,respectively:
?Applicable□NotapplicableSeerelevantcontentsof“VIKeyfinancialinformation”under“PartIICorporateInformationandKeyFinancialInformation”.OtherinformationthattheCompanyconsidersnecessaryorisrequiredbythesecuritiesregulatortobedisclosed:
□Applicable?Notapplicable
2.ChangesinRestrictedShares?Applicable□Notapplicable
Unit:share
| NameofShareholder | RestrictedSharesAmountatthePeriod-Begin | RestrictedSharesIncreasedofthePeriod | RestrictedSharesRelievedofthePeriod | RestrictedSharesAmountatthePeriod-End | RestrictedReasons | RestrictedSharesRelievedDate |
| ZhangZhanqi | 435,225 | 190,000 | 190,000 | 435,225 | Managementlock-upshares | 100,000shareson6May2024and90,000shareson7June2024 |
| YuShouzheng | 287,325 | 110,000 | 110,000 | 287,325 | Managementlock-upshares | 50,000shareson6May2024and60,000shareson7June2024 |
| ZhangKeming | 283,275 | 110,000 | 110,000 | 283,275 | Managementlock-upshares | 50,000shareson6May2024and60,000shareson7June2024 |
| LiWenji | 195,000 | 175,000 | 110,000 | 260,000 | Managementlock-upshares | 50,000shareson6May2024and60,000shareson7June2024 |
| ShangChenggang | 247,500 | 110,000 | 110,000 | 247,500 | Managementlock-upshares | 50,000shareson6May2024and60,000shareson7June2024 |
| WangJiabin | 313,700 | 90,000 | 168,425 | 235,275 | Managementlock-upshares | 78,425shareson12January2024and90,000shareson7June2024 |
| GuoHeng | 225,000 | 110,000 | 110,000 | 225,000 | Managementlock-upshares | 50,000shareson6May2024and60,000shareson7June2024 |
| DuLixin | 187,500 | 110,000 | 110,000 | 187,500 | Managementlock-upshares | 50,000shareson6May2024and60,000shareson7June2024 |
| LyuWenquan | 150,000 | 70,000 | 70,000 | 150,000 | Managementlock-upshares | 25,000shareson6May2024and45,000shareson7June2024 |
| XuFeng | 142,500 | 95,000 | 95,000 | 142,500 | Management | 50,000shareson6May |
| lock-upshares | 2024and45,000shareson7June2024 | |||||
| Otherrestrictedshareholders | 9,000,792 | 30,000 | 8,698,000 | 207,292 | Managementlock-upshares | On6May2024,2,426,500shareswereliftedfromrestriction,andon7June2024,6,271,500shareswereliftedfromrestriction.On22April2024and14August2024,66,500and59,000restrictedshareswerecancelled,respectively. |
| Total | 11,467,817 | 1,200,000 | 9,881,425 | 2,660,892 | -- | -- |
II.IssuanceandListingofSecurities
1.Securities(ExclusiveofPreferredShares)IssuedintheReportingPeriod
□Applicable?Notapplicable
2.ChangestoTotalShares,ShareholderStructureandAssetandLiabilityStructures?Applicable□NotapplicableTheCompany’stotalsharesatthebeginningof2024were863,607,634shares(ofwhich591,305,241wereA-sharesand272,302,393wereB-shares).Asat1March2024,thecancellationof46,176,428repurchasedB-shareswascompleted.Therepurchaseandcancellationof66,500restrictedsharesand59,000restrictedshareswerecompletedon22April2024and14August2024.BecauseofLuThaiconvertiblebondswerecumulativelyconvertedinto304A-sharesfrom1January2024to31December2024.By31December2024,theCompanypossessed817,306,010sharesintotal(591,180,045A-sharesand226,125,965B-sharesinclusive),whichhadnosignificantimpactontheCompany’sassetsandliabilitystructure.
3.ExistingStaff-HeldShares
□Applicable?NotapplicableIII.ShareholdersandActualController
1.TotalNumberofShareholdersandTheirShareholdings
Unit:share
| NumberofOrdinaryShareholders | 47,043 | NumberofOrdinaryShareholdersattheMonth-EndPriortotheDisclosureofthisReport | 47,219 | NumberOfPreferredShareholdersWithResumedVotingRights(IfAny)(SeeNote8) | 0 | NumberofPreferredShareholdersWithResumedVotingRightsattheMonth-EndPriortotheDisclosureofthisReport(IfAny)(SeeNote8) | 0 | |
| 5%orGreaterShareholdersorTopTenShareholders(ExclusiveofSharesLentinRefinancing) | ||||||||
| NameofShareholder | NatureofShareholder | HoldingPercentage(%) | TotalSharesHeldatthePeriod-end | Increase/DecreaseintheReportingPeriod | RestrictedSharesHeld | UnrestrictedSharesHeld | SharesinPledge,MarkedorFrozen | |
| 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 | 1.82% | 14,910,051 | 720000 | 0 | 14,910,051 | N/A | 0 |
| ICBCCreditSuisseInnovationPowerStockTypeSecuritiesInvestmentFund | Other | 1.47% | 12,000,000 | 90000 | 0 | 12,000,000 | N/A | 0 |
| DongfanghongZhihuaThree-YearHoldingMixedSecuritiesInvestmentFund | Other | 0.81% | 6,600,000 | 148250 | 0 | 6,600,000 | N/A | 0 |
| FEDERATEDHERMESGLOBALINVESTMENTFD(CAYMAN)MASTER,SPCOBOAFTAOFEDERATEDHERMESEMGASIAEQUITYFDMASTERS.P. | Foreignlegalperson | 0.78% | 6,334,711 | 134528 | 0 | 6,334,711 | N/A | 0 |
| DongfanghongJDBigDataFlexibleAllocationMixedSecuritiesInvestmentFund | Other | 0.72% | 5,889,382 | 889300 | 0 | 5,889,382 | N/A | 0 |
| DongfanghongNewPowerFlexibleAllocationMixedSecuritiesInvestmentFund | Other | 0.60% | 4,893,800 | -106700 | 0 | 4,893,800 | N/A | 0 |
| ChenAiting | Domesticnaturalperson | 0.57% | 4,631,466 | 499661 | 0 | 4,631,466 | N/A | 0 |
| Strategicinvestorsorgeneralcorporationsbecomingtop-tenshareholdersduetoplacingofnewshares(ifany)(seeNote3) | N/A | |||||||
| Relatedoracting-in-concertpartiesamongtheshareholdersabove | ZiboLuchengTextileInvestmentCo.,Ltd.isthelargestshareholderandtheactualcontrolleroftheCompany.Tailun(Thailand)TextileCo.,Ltd.isthesecondlargestshareholderandtheforeignsponsoroftheCompany.AlltheothershareholdersareholdingtradableA-sharesorB-shares.Anditisunknownwhetherthereisanyrelatedpartyoracting-in-concertpartyamongthem. | ||
| Explainifanyoftheshareholdersabovewasinvolvedinentrusting/beingentrustedwithvotingrightsorwaivingvotingrights | N/A | ||
| Specialaccountforsharerepurchases(ifany)amongthetoptenshareholders(seeNote10) | N/A | ||
| ShareholdingsofTopTenUnlimitedShareholders(ExcludingSharesLenttroughRefinancingandManagementLock-upShares) | |||
| NameofShareholder | UnrestrictedSharesHeldatthePeriod-end | Type | |
| Type | Number | ||
| 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 | 14,910,051 | RMBordinaryshare | 14,910,051 |
| ICBCCreditSuisseInnovationPowerStockTypeSecuritiesInvestmentFund | 12,000,000 | RMBordinaryshare | 12,000,000 |
| DongfanghongZhihuaThree-YearHoldingMixedSecuritiesInvestmentFund | 6,600,000 | RMBordinaryshare | 6,600,000 |
| FEDERATEDHERMESGLOBALINVESTMENTFD(CAYMAN)MASTER,SPCOBOAFTAOFEDERATEDHERMESEMGASIAEQUITYFDMASTERS.P. | 6,334,711 | Domesticallylistedforeignshares | 6,334,711 |
| DongfanghongJDBigDataFlexibleAllocationMixedSecuritiesInvestmentFund | 5,889,382 | RMBordinaryshare | 5,889,382 |
| DongfanghongNewPowerFlexibleAllocationMixedSecuritiesInvestmentFund | 4,893,800 | RMBordinaryshare | 4,893,800 |
| ChenAiting | 4,631,466 | RMBordinaryshare | 4,631,466 |
| Relatedoracting-in-concertpartiesamongtoptenunrestrictedpublicshareholders,aswellasbetweentoptenunrestrictedpublicshareholdersandtoptenshareholders | ZiboLuchengTextileInvestmentCo.,Ltd.isthelargestshareholderandtheactualcontrolleroftheCompany.Tailun(Thailand)TextileCo.,Ltd.isthesecondlargestshareholderandtheforeignsponsoroftheCompany.AlltheothershareholdersareholdingtradableA-sharesorB-shares.Anditisunknownwhetherthereisanyrelatedpartyoracting-in-concertpartyamongthem. | ||
| Toptenordinaryshareholdersinvolvedinsecuritiesmargintrading(ifany)(seeNote4) | N/A | ||
ParticipationofShareholderswithashareholdingbiggerthan5%,thetoptenshareholders,andthetoptenshareholdersofnon-restrictedtradablesharesinthelendingofsharesthroughrefinancing
□Applicable?NotapplicableChangesinthetoptenshareholdersandthetoptenshareholdersofnon-restrictedtradablesharesfromthepreviousPeriodduetolending/returnthroughrefinancing
□Applicable?NotapplicableIndicatebytickmarkwhetheranyofthetoptenordinaryshareholdersorthetoptenunrestrictedordinaryshareholdersoftheCompanyconductedanypromissoryrepoduringtheReportingPeriod.
□Yes?NoNosuchcasesintheReportingPeriod.
2.ControllingShareholderNatureofthecontrollingshareholder:ControlledbyanaturalpersonTypeofthecontrollingshareholder:Legalperson
| NameofControllingShareholder | LegalRepresentative/PersoninCharge | DateofEstablishment | UnifiedSocialCreditCode | PrincipalActivity |
| ZiboLuchengTextileInvestmentCo.,Ltd. | LiuDeming | 25September1998 | 91370303164200391J | Investmentontextile,electricityandchemical;purchase,processandsaleofcotton;retailserviceetc. |
| ParticularsaboutshareholdingofcontrollingshareholderscontrollingandholdingsharesofotherlistedcompaniesduringtheReportingPeriod | N/A | |||
ChangeofthecontrollingshareholderintheReportingPeriod:
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
3.ActualControllerandItsActing-in-ConcertPartiesNatureoftheactualcontroller:DomesticnaturalpersonTypeoftheactualcontroller:Naturalperson
| NameoftheActualController | RelationswiththeActualController | Nationality | WhetherGaintheRightofResidenceinOtherCountriesorRegionsorNot |
| LiuZibin | Inperson | China | Not |
| LiuDeming | Concertedaction(includingagreement,relatives,andsamecontrol) | China | Not |
| Professionsandtitles |
LiuZibinistheChairmanoftheBoardandPresidentofLuThaiTextileCo.,Ltd.,LiuDemingistheChairmanoftheBoardandGMofZiboLuchengTextileInvestmentCo.,Ltd.
| Particularsaboutlistedcompanieswithshareseverheldbytheactualcontroller | N/A |
ChangeoftheactualcontrollerduringtheReportingPeriod:
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.OwnershipandcontrolrelationsbetweentheactualcontrollerandtheCompany:
IndicatebytickmarkwhethertheactualcontrollercontrolstheCompanyviatrustorotherwaysofassetmanagement.
□Applicable?Notapplicable
4.NumberofAccumulativePledgedSharesheldbytheCompany’sControllingShareholderortheLargestShareholderaswellasItsActing-in-ConcertPartiesAccountsfor80%ofallsharesoftheCompanyheldbyThem
□Applicable?Notapplicable
5.Other10%orGreaterCorporateShareholders
□Applicable?Notapplicable
6.LimitationsonShareholdingDecreasebytheCompany’sControllingShareholder,ActualController,ReorganizerandOtherCommitmentMakers
□Applicable?NotapplicableIV.SpecificImplementationofShareRepurchaseduringtheReportingPeriodProgressonanysharerepurchase?Applicable□Notapplicable
overthepasttenyearsDisclosureTimeofthePlan
| DisclosureTimeofthePlan | SharesIntendedtobeRepurchased(Share) | As%ofTotalShareCapital | Amount | Period | Usage | SharesRepurchased(Share) | NumberofRepurchasedSharesasaPercentageoftheUnderlyingSharesCoveredbytheEquityIncentivePlan(if |
LiuZibin
| LiuZibin | LiuDeming |
ZiboLuchengTextileInvestmentCo.,Ltd.
ZiboLuchengTextileInvestmentCo.,Ltd.LuThaiTextileCo.,Ltd.
| any) | |||||||
| 7July2023 | 27,000,000-54,000,000 | 3.13%-6.25% | NotexceedingRMB20,000 | 6July2023to5July2024 | Cancelled | 46,176,428 | 0.00% |
Progressonreducingtherepurchasedsharesbymeansofcentralizedbidding
□Applicable?Notapplicable
PartVIIIPreferenceShares
□Applicable?NotapplicableNopreferencesharesintheReportingPeriod.
PartIXBonds?Applicable□NotapplicableI.EnterpriseBonds
□Applicable?NotapplicableNoenterprisebondsintheReportingPeriod.II.CorporateBonds
□Applicable?NotapplicableNocorporatebondsintheReportingPeriod.III.DebtFinancingInstrumentsofNon-financialEnterprises
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.IV.ConvertibleCorporateBonds?Applicable□Notapplicable
1.PreviousAdjustmentsofConversionPriceOn9April2020,theCompanypubliclyissued14millionA-shareconvertiblecorporatebonds(shortname:LuThaiConvertibleBonds,bondcode:127016)onSZSEwithanissuepriceofRMB100pershareandashareconversionpriceofRMB9.01pershare.ThebondswerelistedonSZSEon13May2020.Inaccordancewithrelatedtermsofthe“ProspectusforthePublicOfferingofA-ShareConvertibleCorporateBondsofLuThaiTextileCo.,Ltd.”,aswellastheregulationsofCSRConthepublicofferingofconvertiblecorporatebonds,iftheCompanyhasanydistributionofsharedividends,conversionintosharecapital,additionalissueofnewshares(excludingsharecapitalincreaseduetoconversionintosharesfromtheconvertiblecorporatebondsissuedthistime),shareallotmentanddistributionofcashdividendsaftertheissueof“LuThaiConvertibleBonds”,adjustmentshallbemadetotheshareconversionprice.On21May2020,theCompanyheldtheAnnualGeneralMeetingof2019,wheretheProposalontheCompany’sProfitDistributionPlanfor2019wasconsideredandapproved.AccordingtotheProposal,acashamountofRMB1.00(inclusiveoftax)wouldbedistributedtoeverytenshares,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,whichdistributescashofRMB0.50pertenshares(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.TheCompanycompletedtheformalitiesforcancellationofthe23,935,748repurchasedB-sharesattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimitedon25May2023.InaccordancewiththeissuanceclausesintheCompany’sProspectusandrelevantregulationsoftheCSRContheissuanceofconvertiblebonds,theconversionpriceofLuThaiconvertiblebondshallbeadjustedfromRMB8.61persharetoRMB8.73pershare.Theadjustedconversionpricecameintoforceon26May2023.TheCompanyimplementedthe2022EquityDistributionPlanon16June2023.InaccordancewiththeissuanceclausesintheCompany’sProspectusandrelevantregulationsoftheCSRContheissuanceofconvertiblebonds,theconversionpriceofLuThaiconvertiblebondshallbeadjustedfromRMB8.73persharetoRMB8.63pershare.Theadjustedconversionpricecameintoforceon16June2023.TheCompanycompletedtheformalitiesforcancellationofthe46,176,428repurchasedB-sharesattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimitedon1March2024.InaccordancewiththeissuanceclausesintheCompany’sProspectusandrelevantregulationsoftheCSRContheissuanceofconvertiblebonds,theconversionpriceofLuThaiconvertiblebondshallbeadjustedfromRMB8.63persharetoRMB8.87pershare.Theadjustedconversionpricecameintoforceon4March2024.
TheCompanyimplementedthe2023EquityDistributionPlanon19June2024.InaccordancewiththeissuanceclausesintheCompany’sProspectusandrelevantregulationsoftheCSRContheissuanceofconvertiblebonds,theconversionpriceofLuThaiconvertiblebondshallbeadjustedfromRMB8.87persharetoRMB8.74pershare.Theadjustedconversionpricecameintoforceon19June2024.TheCompanyimplementedthe2024EquityDistributionPlanon8November2024.InaccordancewiththeissuanceclausesintheCompany’sProspectusandrelevantregulationsoftheCSRContheissuanceofconvertiblebonds,theconversionpriceofLuThaiconvertiblebondshallbeadjustedfromRMB8.74persharetoRMB8.64pershare.Theadjustedconversionpricecameintoforceon8November2024.TheCompanyimplementedthe2024EquityDistributionPlanon19December2024.InaccordancewiththeissuanceclausesintheCompany’sProspectusandrelevantregulationsoftheCSRContheissuanceofconvertiblebonds,theconversionpriceofLuThaiconvertiblebondshallbeadjustedfromRMB8.64persharetoRMB8.59pershare.Theadjustedconversionpricecameintoforceon19December2024.
2.AccumulativeConversion?Applicable□Notapplicable
| Abbreviation | StartDate | TotalCirculation(Piece) | TotalAmount(RMB) | AccumulativeAmountConverted(RMB) | AccumulativeSharesConverted(share) | ConvertedSharesas%oftotalSharesIssuedbytheCompanyBeforetheStartDateofConversion | UnconvertedAmount(RMB) | UnconvertedAmountas%ofTotalAmount |
| LuThaiConvertibleBonds | October15,2020to8April2026 | 14,000,000 | 1,400,000,000.00 | 152,300.00 | 17,145 | 0.00% | 1,399,844,700.00 | 99.99% |
3.Toptenconvertiblebondholders
| No. | NameofHolders | NatureofHolders | NumberofConvertibleBondsHeldatthePeriod-end(share) | AmountofConvertibleBondsHeldatthePeriod-end(RMB) | As%ofConvertibleBondsHeldatthePeriod-end |
| 1 | ChinaConstructionBank-EFundEnhancedIncomeBondSecuritiesInvestmentFund | Other | 698,782 | 69,878,200.00 | 4.99% |
| 2 | ICBCCreditSuisseTianfengFixedBenefitPensionProduct-BankofChinaLimited | Other | 613,944 | 61,394,400.00 | 4.39% |
| 3 | ChinaMerchantsBankCo.,Ltd.–BoseraCSIConvertibleBondsandExchangeableBondsETF | Other | 611,676 | 61,167,600.00 | 4.37% |
| 4 | DajiaLifeInsuranceCo.,Ltd.-TraditionalProduct | Other | 569,590 | 56,959,000.00 | 4.07% |
| 5 | ShanghaiPudongDevelopmentBankCo.,Ltd.-EFundYuxiangReturnBondSecuritiesInvestmentBond | Other | 495,122 | 49,512,200.00 | 3.54% |
| 6 | FuguoFuminFixedIncomePensionProduct-ChinaConstructionBankCorporation | Other | 425,499 | 42,549,900.00 | 3.04% |
| 7 | ChinaMerchantsBankCo.,Ltd.-DongfanghongJuliBondSecuritiesInvestmentFund | Other | 327,356 | 32,735,600.00 | 2.34% |
| 8 | HuataiYoushengConvertibleBondFixedIncomePensionProduct－ChinaMerchantsBankCo.,Ltd. | Other | 313,590 | 31,359,000.00 | 2.24% |
| 9 | BankofChinaCo.,Ltd.—GFJvxinBondInvestmentFund | Other | 276,285 | 27,628,500.00 | 1.97% |
| 10 | ChinaPacificLifeInsuranceCo.,Ltd.–Dividend-IndividualDividend | Other | 252,283 | 25,228,300.00 | 0.65% |
4.SignificantChangesinProfitability,AssetsConditionandCreditStatusofGuarantors
□Applicable?Notapplicable
5.TheCompany’sLiabilities,CreditChangesatthePeriod-endandCashArrangementstoRepayDebtsinFutureYearsFortherelevantindicators,pleaserefertothePartIXBonds-VIIIThemajoraccountingdataandthefinancialindicatorsoftherecenttwoyearsoftheCompanyuptheperiod-end.ThecreditratingoftheCompany’sconvertiblebondsfortheReportingPeriodisAA+,whichhasnotchangedcomparedwiththatofthesameperiodoflastyear.V.LossesofScopeofConsolidatedFinancialStatementsduringtheReportingPeriodExceeding10%ofNetAssetsupthePeriod-endofLastYear
□Applicable?NotapplicableVI.MaturedInterest-bearingDebtexcludingBondsupthePeriod-end
□Applicable?NotapplicableVII.WhethertherewasanyViolationofRulesandRegulationsduringtheReportingPeriod
□Yes?NoVIII.TheMajorAccountingDataandtheFinancialIndicatorsoftheRecent2YearsoftheCompanyupthePeriod-end
Unit:RMB’0,000
| Item | Period-end | TheEndofLastYear | Increase/Decrease |
| Currentratio | 3.39 | 3.43 | -1.17% |
| Asset-liabilityratio | 29.49% | 28.39% | 1.10% |
| Quickratio | 2.25 | 2.12 | 6.13% |
| ReportingPeriod | SamePeriodofLastYear | YoYIncrease/Decrease | |
| Netprofitafterdeductingnon-recurringprofitorloss | 48,233.87 | 38,613.54 | 24.91% |
| Debt/EBITDAratio | 39.11% | 41.97% | -2.86% |
| Interestcover(times) | 5.55 | 5.29 | 4.91% |
| Cash-to-interestcover(times) | 12.45 | 8.82 | 41.16% |
| EBITDAinterestcoverageratio | 10.58 | 10.40 | 1.73% |
| Rateofredemption | 100.00% | 100.00% | 0.00% |
| Interestcoverage | 100.00% | 100.00% | 0.00% |
PartXFinancialStatementsI.IndependentAuditor’sReport
| Typeoftheindependentauditor’sopinion | Unmodifiedunqualifiedopinion |
| Dateofsigningthisreport | 8April2025 |
| Nameoftheindependentauditor | GrantThorntonChina(SpecialGeneralPartnership) |
| No.ofindependentauditor’sreport | GrantThorntonSZ(2025)No.371A008379 |
| Nameofthecertifiedpublicaccountants | HeFeng,CuiXiaoli |
TextoftheIndependentAuditor’sReportTotheshareholdersofLuThaiTextileCo.,Ltd:
I.OpinionWehaveauditedthefinancialstatementsofLuThaiTextileCo.,Ltd.(hereinafterreferredtoasthe“Company”),whichcomprisetheconsolidatedandparentcompanybalancesheetsasof31December2023,theconsolidatedandparentcompanystatementsofincome,cashflowsandchangesinowners’equityfortheyearthenended,aswellasthenotestothefinancialstatements.Inouropinion,thefinancialstatementsreferredtoabovepresentfairly,inallmaterialrespects,theconsolidatedandparentcompanyfinancialpositionoftheCompanyat31December2024,andtheconsolidatedandparentcompanyoperatingresultsandcashflowsfortheyearthenended,inconformitywiththeAccountingStandardsforBusinessEnterprises.II.BasisforOpinionWeconductedourauditsinaccordancewiththeAuditStandardsforChineseRegisteredAccountants.OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor’sResponsibilitiesforAuditofFinancialStatementssectionofourreport.WeareindependentoftheCompanyinaccordancewiththeChinaCodeofEthicsforCertifiedPublicAccountants,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththesaidCodeofEthics.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.III.KeyAuditMattersKeyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditofthefinancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.i.RecognitionofrevenueFordetails,pleaserefertotheNoteIII-27andtheNoteV-46ofthefinancialreport.
1.EventdescriptionThemainbusinessesofLuThaiTextileCo.,Ltd.mainlyareproductionandsalesofyarn-dyedfabricsandshirts.TheoperationrevenueoftheCompanyin2024wasRMB6,090,615,000,ofwhichexportincomeaccountedforover50%.Fortheincomefromdomesticsales,theamountofproductsalesincomeisrecognisedwhentheproductsaredeliveredtoandconfirmedbythepurchaseraccordingtothecontract.Theincomeisrecognisedwhenthepurchaserobtainscontroloftheproduct.Fortheincomefromexportsales,theamountofsalesincomeisrecognisedwhenproductsaredeclaredanddepartfromportaccordingtothecontract,andthebillofladingisreceived.Theincomeisrecognisedwhenthepurchaserobtainscontroloftheproduct.
SinceincomeisoneofthekeyperformanceindicatorsofLuThaiTextileCo.,Ltd.,thereisaninherentriskthatthemanagementofLuThaiTextileCo.,Ltd.(hereinafterreferredtoasthemanagement)manipulatesincometoachievespecificgoalsorexpectations,therefore,weidentifyincomerecognitionasakeyauditmatter.
2.AuditresponseTheauditproceduresforrevenuerecognitionmainlyinclude:(1)Understandandevaluatethedesigneffectivenessofinternalcontrolrelatedtorevenuerecognition,andtesttheeffectivenessofoperation;(2)Throughinterviewingthemanagementandreviewingtherelevantcontractterms,understandandevaluatewhethertheincomeconfirmationaccountingpolicymeetstherequirementsoftheAccountingStandardsforBusinessEnterprises;(3)Performanalyticalproceduresonrevenueandcoststoanalysetherationalityoffluctuationsinsalesvolume,unitprice,andgrossprofitineachmonth,currentyear,andpreviousyearofthecurrentperiod;(4)Selectsamplestocheckthesupportingevidencesuchassalescontract,productdeliveryorder,invoice,customsdeclaration,ladingbill,andsigningreceipt;(5)Selectsamplestoverifythebalanceandtransactionamount;(6)Selectsamplestoverifytheamountsrelatedtoexportsalesrevenue,exporttaxrefunddeclarations,andChinaE-Portexportdata,amongotherrelevantinformation;(7)Selectsamplestoperformacut-offtestontherevenuerecognisedbeforeandafterthebalancesheetdate,andchecktheproductdeliveryslip,invoice,customsdeclaration,ladingbill,signingreceipt,etc.,toassesswhethertherevenueisrecognisedwithintheappropriateperiod.ii.InventoryfallingpricereservesFordetails,pleaserefertotheNoteIII-13andtheNoteV-8ofthefinancialreport.
1.EventdescriptionAsat31December2024,theinventorybalanceofLuThaiTextileCo.,Ltd.wasRMB2,290,621,500andtheinventorydepreciationreservewasRMB270,737,100.Themanagementwithdrewtheinventoryfallingpricereserveswithsignificantjudgmentsandestimates,andtherefore,weidentifyinventoryfallingpricereservesasakeyaudititem.
2.AuditresponseTheauditproceduresforinventoryfallingpricereservesmainlyinclude:
(1)Understandandevaluatethedesigneffectivenessoftheinternalcontrolrelatedtotheprovisionofinventorydeclineprice,andtesttheeffectivenessofoperation;
(2)Understandandevaluatetheappropriatenessofthecompany’sinventorydepreciationreserveprovisionpolicy;
(3)Monitortheinventoryandpayattentiontothestatusoftheinventory,checkwhetherthedefectiveandinventorywithlongaginghavebeenidentified;
(4)Obtaintheinventoryagetable,andconductananalyticalreviewofthelong-ageinventorystatusandturnover;
(5)Checkthechangesintheinventorydepreciationreservesaccruedinpreviousyearsandevaluatetherationalityofthechangesininventorydepreciationreserves;
(6)Obtaintheinventoryfallingpricereservescalculationsheet;recheckandevaluatetherationalityofmajorestimationsmadebythemanagementduringthedeterminationofnetrealizablevalue;conducttherecalculation,checkthesellingpriceaftertheperiodandanalysetherationalityofthepredictedsellingprice.
iii.AssessmentoffairvalueoffinancialassetsmeasuredatfairvalueandchangesincludedincurrentprofitorlossFordetails,pleaserefertoNoteIII-11andNoteV-2,12and54ofthefinancialreportaboutrelevantinformationdisclosure.
1.EventdescriptionAsat31December2024,thebalanceoffinancialassetmeasuredbasedonthefairvaluewhosevariationswereincludedthecurrentprofitandlossofLuThaiTextileswasRMB776,772,700,ofwhich,thefairvalueoffinancialassets,whichareclassifiedasLevel1inputvaluesusingquotationsfromactivemarketsforidenticalassets,wasRMB117,979,000,thefairvalueoffinancialassetclassifiedintothetier-2inputvaluebyadoptingtheobservableinputvaluewasRMB575,993,700,andthefairvalueoffinancialassetclassifiedintothetier-3inputvaluebyadoptingthenon-observableinputvaluewasRMB82.8million.ConsideringthatthefairvaluechangesofthisfinancialassethaveasignificantimpactonLuThaiTextileCompany’sprofitorlossfor2024,andthatthecompanyusesvaluationtechniquestodetermineitsfairvalue,whichtypicallyinvolvesassumptionsandestimatesrelyingonsubjectivejudgment,theuseofdifferentvaluationtechniquesorassumptionscouldresultinsignificantdifferencesinthefairvalueestimationofthefinancialinstrument.Therefore,weidentifythismatterasakeyauditmatter.
2.AuditresponseTheauditproceduresfortheassessmentoffinancialinstrument’sfairvaluemainlyinclude:(1)Studyandevaluatetheeffectivenessofthedesignedinternalcontrolforthevaluationoffinancialinstrumentsandtesttheoperationaleffectiveness;(2)Assesstheprofessionalquality,competenceandobjectivenessoftheindependentappraiseremployedbytheCompany’smanagement;evaluatetherationalityofvariousassumptionsappliedbytheindependentappraiserintheevaluationreportandtheappropriatenessofthefinancialinstrumentvaluationmodels;(3)Assesstherationalityandappropriatenessoftheobservablekeyinputvalueappliedduringthevaluationofthetier-2fairvalue;
(4)Rechecktherationality,appropriatenessandcalculationaccuracyofthekeyinputvalueduringthefairvalueassessmentforthetier-3financialinstrumentmeasuredbasedthefairvalueandinvolvingthemanagement’smajorjudgment.IV.OtherInformationTheCompany’smanagementisresponsiblefortheotherinformation.TheotherinformationcomprisesalloftheinformationincludedintheCompany’s2024AnnualReportotherthanthefinancialstatementsandourauditor’sreportthereon.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.
V.ResponsibilitiesofManagementandThoseChargedwithGovernanceforFinancialStatementsTheCompany’smanagement(hereinafterreferredtoasthe“Management”)isresponsibleforthepreparationofthefinancialstatementsthatgiveafairviewinaccordancewithCAS,andfordesigning,implementingandmaintainingsuchinternalcontrolasthemanagementdeterminesisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.Inpreparingthefinancialstatements,themanagementisresponsibleforassessingtheCompany’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessthemanagementeitherintendstoliquidatetheCompanyortoceaseoperations,orhavenorealisticalternativebuttodoso.ThosechargedwithgovernanceareresponsibleforoverseeingtheCompany’sfinancialreportingprocess.VI.Auditor’sResponsibilitiesforAuditofFinancialStatementsOurobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithCASwillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.AspartofanauditinaccordancewithCAS,weexerciseprofessionaljudgmentandmaintainprofessionalscepticismthroughouttheaudit.Wealso:
(1)Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.
(2)Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances.
(3)EvaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelateddisclosuresmadebytheManagement.
(4)ConcludeontheappropriatenessoftheManagement’suseofgoingconcernassumptions.Meanwhile,drawaconclusionofthemattersthatmightproducemajordoubtsabouttheabilityofLuThaiTextileCompanytocontinueasagoingconcern,andjudgewhethertherearemajoruncertainties,accordingtotheauditevidenceobtained.Ifweconcludethatamaterialuncertaintyexists,wearerequiredbyCAStodrawusers’attentioninourauditor’sreporttotherelateddisclosuresinthefinancialstatementsor,ifsuchdisclosuresareinadequate,weshouldmodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However,futureeventsorconditionsmaycausetheCompanytoceasetocontinueasagoingconcern.
(5)Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.
(6)ObtainsufficientappropriateauditevidenceregardingthefinancialinformationoftheentitiesorbusinessactivitieswithintheCompanytoexpressanopiniononthefinancialstatements.Weareresponsibleforthedirection,supervisionandperformanceoftheCompanyaudit.Weremainsolelyresponsibleforourauditopinion.WecommunicatewiththosechargedwithgovernanceoftheCompanyregardingtheplannedscopeandtimingoftheauditandsignificantauditfindings,includinganynoteworthydeficienciesininternalcontrolthatweidentifyduringouraudit.Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andcommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards(ifapplicable).Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.
| GrantThorntonChina(SpecialGeneralPartnership) | ChineseCPA:(EngagementPartner):ChineseCPA: | |
| Beijing·China | 8April2025 | |
II.FinancialStatementsCurrencyunitforthefinancialstatementsandthenotesthereto:RMB
1.ConsolidatedBalanceSheetPreparedbyLuThaiTextileCo.,Ltd.
31December2024
Unit:RMB
| Item | EndingBalance | BeginningBalance |
| Currentassets: | ||
| Monetaryassets | 2,055,856,788.37 | 1,558,252,048.03 |
| Held-for-tradingfinancialassets | 693,972,672.64 | 723,800,275.39 |
| Derivativefinancialassets | ||
| Notesreceivable | 51,339,990.35 | 99,642,708.67 |
| Accountsreceivable | 849,168,539.27 | 826,467,684.78 |
| Receivablesfinancing | 10,184,900.59 | 18,248,205.76 |
| Prepayments | 94,340,345.68 | 51,863,447.56 |
| Otherreceivables | 23,107,489.38 | 22,168,807.43 |
| Including:Interestreceivable | ||
| Dividendreceivable | ||
| Inventories | 2,019,884,406.30 | 2,124,139,574.70 |
| Including:Dataresources | ||
| Contractassets | ||
| Available-for-saleassets | ||
| Currentportionofnon-currentassets | 154,176,585.64 | |
| Othercurrentassets | 59,034,547.73 | 145,112,114.03 |
| Totalcurrentassets | 6,011,066,265.95 | 5,569,694,866.35 |
| Non-currentassets: | ||
| Long-termreceivables | ||
| Long-termequityinvestments | 120,084,271.29 | 143,537,479.77 |
| Investmentsinotherequityinstruments | ||
| Othernon-currentfinancialassets | 82,800,000.00 | 88,750,000.00 |
| Investmentproperty | 18,675,533.63 | 19,578,175.93 |
| Fixedassets | 6,053,755,987.08 | 5,597,692,505.07 |
| Constructioninprogress | 95,026,709.37 | 868,496,878.41 |
| Right-of-useassets | 470,238,928.19 | 463,226,419.21 |
| Intangibleassets | 333,384,747.50 | 343,347,879.42 |
| Including:Dataresources | ||
| Developmentcosts | ||
| Including:Dataresources | ||
| Goodwill | 20,563,803.29 | 20,563,803.29 |
| Long-termdeferredexpenses | 5,634,560.27 | 1,815,838.60 |
| Deferredincometaxassets | 148,530,519.94 | 157,892,110.06 |
| Othernon-currentassets | 569,954,322.70 | 155,690,266.83 |
| Totalnon-currentassets | 7,918,649,383.26 | 7,860,591,356.59 |
| Totalassets | 13,929,715,649.21 | 13,430,286,222.94 |
| Currentliabilities: | ||
| Short-termloan | 849,686,824.33 | 580,704,772.27 |
| Tradingfinancialliabilities | 15,858,713.22 | 46,785,831.47 |
| Accountspayable | 272,079,091.51 | 275,502,915.05 |
| Advancesfromcustomers | ||
| Contractliability | 191,551,003.79 | 188,073,335.89 |
| Payrollpayable | 301,227,361.89 | 284,344,973.72 |
| Taxespayable | 57,261,948.01 | 42,633,232.55 |
| Otherpayables | 17,437,799.60 | 47,549,373.52 |
| Including:Interestpayable | ||
| Dividendspayable | 441,113.64 | 441,113.64 |
| Currentportionofnon-currentliabilities | 27,788,571.75 | 96,207,192.49 |
| Othercurrentliabilities | 42,829,460.18 | 63,646,908.11 |
| Totalcurrentliabilities | 1,775,720,774.28 | 1,625,448,535.07 |
| Non-currentliabilities: | ||
| Long-termborrowings | 396,244,110.21 | 259,992,974.40 |
| BondsPayable | 1,509,420,449.46 | 1,476,572,070.79 |
| Leaseliabilities | 91,353,320.80 | 86,580,224.41 |
| Long-termpayables | ||
| Long-termpayrollpayable | 58,494,991.36 | 57,276,675.61 |
| Provisions | ||
| Deferredincome | 145,395,121.11 | 151,768,947.92 |
| Deferredincometaxliabilities | 131,519,037.79 | 155,178,797.04 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 2,332,427,030.73 | 2,187,369,690.17 |
| Totalliabilities | 4,108,147,805.01 | 3,812,818,225.24 |
| Owners’equity: | ||
| Sharecapital | 817,306,010.00 | 863,607,634.00 |
| Otherequityinstruments | 71,383,438.11 | 71,383,677.78 |
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Capitalreserves | 178,518,667.31 | 334,792,614.76 |
| Less:Treasurystock | 193,438,720.78 | |
| Othercomprehensiveincome | 166,925,985.26 | 131,343,141.63 |
| Specificreserve | ||
| Surplusreserves | 1,271,429,282.44 | 1,260,661,015.34 |
| Generalreserve | ||
| Retainedearnings | 6,933,165,006.16 | 6,762,457,543.07 |
| TotalequityattributabletoownersoftheCompanyastheparent | 9,438,728,389.28 | 9,230,806,905.80 |
| Equityofnon-controllinginterests | 382,839,454.92 | 386,661,091.90 |
| Totalowners’equity | 9,821,567,844.20 | 9,617,467,997.70 |
| Totalliabilitiesandowners’equity | 13,929,715,649.21 | 13,430,286,222.94 |
Legalrepresentative:LiuZibinChiefAccountant:ZhangKemingFinancialManager:ZhangKeming
2.BalanceSheetoftheCompanyastheParent
Unit:RMB
| Item | EndingBalance | BeginningBalance |
| Currentassets: | ||
| Monetaryassets | 1,098,738,844.86 | 932,232,103.80 |
| Held-for-tradingfinancialassets | 348,853,051.29 | 446,874,251.41 |
| Derivativefinancialassets | ||
| Notesreceivable | 34,955,445.32 | 54,622,178.42 |
| Accountsreceivable | 381,343,801.66 | 356,483,425.59 |
| Receivablesfinancing | 8,604,909.79 | 11,214,873.48 |
| Prepayments | 37,339,639.22 | 21,426,761.45 |
| Otherreceivables | 1,444,344,599.59 | 2,064,459,414.54 |
| Including:Interestreceivable | ||
| Dividendreceivable | ||
| Inventories | 833,923,667.33 | 955,634,154.13 |
| Including:Dataresources | ||
| Contractassets | ||
| Available-for-saleassets | ||
| Currentportionofnon-currentassets | 154,176,585.64 | |
| Othercurrentassets | 1,285,523.29 | 2,443,246.51 |
| Totalcurrentassets | 4,343,566,067.99 | 4,845,390,409.33 |
| Non-currentassets: | ||
| Long-termreceivables | ||
| Long-termequityinvestments | 3,886,201,497.79 | 3,579,497,806.27 |
| Investmentsinotherequityinstruments | ||
| Othernon-currentfinancialassets | 70,800,000.00 | 76,750,000.00 |
| Investmentproperty | 61,235,932.80 | 64,745,052.00 |
| Fixedassets | 1,829,970,463.91 | 2,048,332,131.98 |
| Constructioninprogress | 25,572,141.50 | 3,320,771.05 |
| Right-of-useassets | 94,200,828.47 | 90,043,845.90 |
| Intangibleassets | 191,804,122.33 | 197,852,690.71 |
| Including:Dataresources | ||
| Developmentcosts | ||
| Including:Dataresources | ||
| Goodwill | ||
| Long-termdeferredexpenses | 253,990.93 | 689,403.73 |
| Deferredincometaxassets | 83,559,877.27 | 80,728,077.79 |
| Othernon-currentassets | 502,059,650.58 | 153,767,959.47 |
| Totalnon-currentassets | 6,745,658,505.58 | 6,295,727,738.90 |
| Totalassets | 11,089,224,573.57 | 11,141,118,148.23 |
| Currentliabilities: | ||
| Short-termloan | 3,180,000.00 | |
| Tradingfinancialliabilities | ||
| Ofwhich:Derivativefinancialliabilities | ||
| Notespayable | 60,000,000.00 | |
| Accountspayable | 202,868,261.19 | 108,266,517.50 |
| Advancesfromcustomers | ||
| Contractliability | 62,755,259.28 | 106,140,758.76 |
| Payrollpayable | 196,441,126.83 | 188,784,236.01 |
| Taxespayable | 38,807,426.46 | 23,490,180.58 |
| Otherpayables | 14,071,692.51 | 133,819,575.89 |
| Including:Interestpayable | ||
| Dividendspayable | 441,113.64 | 441,113.64 |
| Held-for-saleliabilities | ||
| Currentportionofnon-currentliabilities | 26,337,442.97 | 95,832,728.97 |
| Othercurrentliabilities | 31,411,042.17 | 44,293,993.88 |
| Totalcurrentliabilities | 632,692,251.41 | 703,807,991.59 |
| Non-currentliabilities: | ||
| Long-termborrowings | 396,244,110.21 | 259,992,974.40 |
| BondsPayable | 1,509,420,449.46 | 1,476,572,070.79 |
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Leaseliabilities | 88,480,054.92 | 89,388,836.15 |
| Long-termpayables | ||
| Long-termpayrollpayable | 58,494,991.36 | 57,276,675.61 |
| Provisions | ||
| Deferredincome | 110,138,851.32 | 114,149,056.16 |
| Deferredincometaxliabilities | 98,766,520.96 | 120,804,925.25 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 2,261,544,978.23 | 2,118,184,538.36 |
| Totalliabilities | 2,894,237,229.64 | 2,821,992,529.95 |
| Owners’equity: | ||
| Sharecapital | 817,306,010.00 | 863,607,634.00 |
| Otherequityinstruments | 71,383,438.11 | 71,383,677.78 |
| Including:Preferredshares | ||
| Perpetualbonds |
| Capitalreserves | 246,054,960.86 | 396,172,649.00 |
| Less:Treasurystock | 193,438,720.78 | |
| Othercomprehensiveincome | -35,886.10 | -41,439.79 |
| Specificreserve | ||
| Surplusreserves | 1,268,320,542.80 | 1,257,552,275.70 |
| Retainedearnings | 5,791,958,278.26 | 5,923,889,542.37 |
| Totalowners’equity | 8,194,987,343.93 | 8,319,125,618.28 |
| Totalliabilitiesandowners’equity | 11,089,224,573.57 | 11,141,118,148.23 |
3.ConsolidatedIncomeStatement
Unit:RMB
| Item | 2024 | 2023 |
| 1.Revenue | 6,090,615,025.20 | 5,961,477,252.98 |
| Including:Operatingrevenue | 6,090,615,025.20 | 5,961,477,252.98 |
| 2.Costsandexpenses | 5,404,431,529.13 | 5,430,655,421.05 |
| Including:Costofsales | 4,643,578,944.63 | 4,591,388,915.40 |
| Taxesandsurcharges | 62,450,436.64 | 63,259,971.00 |
| Sellingexpense | 151,004,439.35 | 148,454,814.21 |
| Administrativeexpense | 344,326,973.11 | 382,327,532.79 |
| R&Dexpense | 206,820,921.71 | 239,775,343.18 |
| Financialexpenses | -3,750,186.31 | 5,448,844.47 |
| Including:Interestexpense | 102,900,852.62 | 86,305,243.50 |
| Interestincome | 60,956,758.61 | 51,052,872.64 |
| Add:Otherincome | 34,200,236.81 | 45,126,894.28 |
| Returnoninvestment(“-”forloss) | -46,506,250.57 | 39,364,608.46 |
| Including:Shareofprofitorlossofjointventuresandassociates | -23,453,208.47 | -9,556,170.35 |
| Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
| Exchangegain(“-”forloss) | ||
| Netgainonexposurehedges(“-”forloss) | ||
| Gainonchangesinfairvalue(“-”forloss) | -90,826,774.15 | -65,020,725.14 |
| Creditimpairmentloss(“-”forloss) | -3,007,666.35 | -2,300,057.75 |
| Assetimpairmentloss(“-”forloss) | -110,133,501.21 | -105,876,786.52 |
| Assetdisposalincome(“-”forloss) | -3,139,466.60 | -9,123,336.47 |
| 3.Operatingprofit(“-”forloss) | 466,770,074.00 | 432,992,428.79 |
| Add:Non-operatingincome | 9,574,940.35 | 9,347,696.19 |
| Less:Non-operatingexpense | 8,534,087.54 | 5,146,681.99 |
| 4.Profitbeforetax(“-”forloss) | 467,810,926.81 | 437,193,442.99 |
| Less:Incometaxexpense | 41,549,193.80 | 40,841,005.37 |
| 5.Netprofit(“-”fornetloss) | 426,261,733.01 | 396,352,437.62 |
| 5.1Byoperatingcontinuity | ||
| 5.1.1Netprofitfromcontinuingoperations(“-”fornetloss) | 426,261,733.01 | 396,352,437.62 |
| 5.1.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
| 5.2Byownership | ||
| 5.2.1NetprofitattributabletoshareholdersoftheCompanyastheparent | 410,321,398.17 | 403,444,254.42 |
| 5.2.2Netprofitattributabletonon-controllinginterests | 15,940,334.84 | -7,091,816.80 |
| 6.Othercomprehensiveincome,netoftax | 35,589,812.50 | 23,717,765.01 |
| AttributabletoownersoftheCompanyastheparent | 35,582,843.63 | 23,714,243.54 |
| 5.1Itemsthatwillnotbereclassifiedtoprofitorloss | ||
| 5.1.1Changescausedbyre-measurementsondefinedbenefitschemes | ||
| 5.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
| 5.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | ||
| 5.1.4Changesinthefairvaluearisingfromchangesinowncreditrisk | ||
| 5.1.5Other | ||
| 5.2Itemsthatwillbereclassifiedtoprofitorloss | 35,582,843.63 | 23,714,243.54 |
| 5.2.1Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod | ||
| 5.2.2Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
| 5.2.3Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 5.2.4Creditimpairmentallowanceforinvestmentsinotherdebtobligations | ||
| 5.2.5Reserveforcashflowhedges | ||
| 5.2.6Differencesarisingfromthetranslationofforeigncurrency-denominatedfinancialstatements | 35,556,383.35 | 23,714,956.57 |
| 5.2.7Other | 26,460.28 | -713.03 |
| Attributabletonon-controllinginterests | 6,968.87 | 3,521.47 |
| 7.Totalcomprehensiveincome | 461,851,545.51 | 420,070,202.63 |
| AttributabletoownersoftheCompanyastheparent | 445,904,241.80 | 427,158,497.96 |
| Attributabletonon-controllinginterests | 15,947,303.71 | -7,088,295.33 |
| 8.Earningspershare | ||
| 7.1Basicearningspershare | 0.50 | 0.47 |
| 7.2Dilutedearningspershare | 0.47 | 0.42 |
Wherebusinesscombinationsundercommoncontroloccurredinthecurrentperiod,thenetprofitachievedbytheacquireesbeforethecombinationswasRMB0.00,withtheamountforthesameperiodoflastyearbeingRMB0.00.Legalrepresentative:LiuZibinChiefAccountant:ZhangKemingFinancialManager:ZhangKeming
4.IncomeStatementoftheCompanyastheParent
Unit:RMB
| Item | 2024 | 2023 |
| 1.OperatingRevenue | 3,198,292,063.60 | 3,427,661,629.75 |
| Less:Costofsales | 2,446,188,630.00 | 2,657,436,337.48 |
| Taxesandsurcharges | 40,423,609.51 | 40,216,738.61 |
| Sellingexpense | 101,521,242.89 | 100,621,317.61 |
| Administrativeexpense | 198,977,886.85 | 201,565,813.64 |
| R&Dexpense | 146,201,535.79 | 157,866,751.74 |
| Financialexpenses | -21,078,637.21 | -19,059,608.38 |
| Including:Interestexpense | 56,893,451.24 | 44,494,486.25 |
| Interestincome | 45,288,590.49 | 33,971,447.09 |
| Add:Otherincome | 23,815,868.45 | 20,954,801.42 |
| Returnoninvestment(“-”forloss) | -56,295,296.97 | 217,442,278.85 |
| Including:Shareofprofitorlossofjointventuresandassociates | -23,453,208.47 | -9,556,170.35 |
| Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
| Netgainonexposurehedges(“-”forloss) | ||
| Gainonchangesinfairvalue(“-”forloss) | -133,010,200.12 | -17,222,836.45 |
| Creditimpairmentloss(“-”forloss) | 2,110,379.60 | 6,673,149.93 |
| Assetimpairmentloss(“-”forloss) | -22,480,583.36 | -48,963,959.94 |
| Assetdisposalincome(“-”forloss) | 5,313,762.77 | -43,734.52 |
| 2.Operatingprofit(“-”forloss) | 105,511,726.14 | 467,853,978.34 |
| Add:Non-operatingincome | 6,928,229.84 | 7,022,950.83 |
| Less:Non-operatingexpense | 2,375,328.10 | 1,850,658.24 |
| 3.Profitbeforetax(“-”forloss) | 110,064,627.88 | 473,026,270.93 |
| Less:Incometaxexpense | 2,381,956.91 | 17,659,482.92 |
| 4.Netprofit(“-”fornetloss) | 107,682,670.97 | 455,366,788.01 |
| 4.1Netprofitfromcontinuingoperations(“-”fornetloss) | 107,682,670.97 | 455,366,788.01 |
| 4.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
| 5.Othercomprehensiveincome,netoftax | 5,553.69 | -11,277.45 |
| 5.1Itemsthatwillnotbereclassifiedtoprofitorloss | ||
| 5.1.1Changescausedbyre-measurementsondefinedbenefitschemes | ||
| 5.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
| 5.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | ||
| 5.1.4Changesinthefairvaluearisingfromchangesinowncreditrisk | ||
| 5.1.5Other | ||
| 5.2Itemsthatwillbereclassifiedtoprofitorloss | 5,553.69 | -11,277.45 |
| 5.2.1Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod | ||
| 5.2.2Changesinthefairvalueofinvestmentsinotherdebt |
| obligations | ||
| 5.2.3Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 5.2.4Creditimpairmentallowanceforinvestmentsinotherdebtobligations | ||
| 5.2.5Reserveforcashflowhedges | ||
| 5.2.6Differencesarisingfromthetranslationofforeigncurrency-denominatedfinancialstatements | ||
| 5.2.7Other | 5,553.69 | -11,277.45 |
| 6.Totalcomprehensiveincome | 107,688,224.66 | 455,355,510.56 |
| 7.Earningspershare | ||
| 7.1Basicearningspershare | 0.13 | 0.53 |
| 7.2Dilutedearningspershare | 0.16 | 0.49 |
5.ConsolidatedCashFlowStatement
Unit:RMB
| Item | 2024 | 2023 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 6,004,666,410.54 | 5,492,424,305.68 |
| Taxrebates | 71,079,349.71 | 125,496,730.53 |
| Cashgeneratedfromotheroperatingactivities | 44,536,550.59 | 115,366,461.66 |
| Subtotalofcashgeneratedfromoperatingactivities | 6,120,282,310.84 | 5,733,287,497.87 |
| Paymentsforcommoditiesandservices | 3,040,825,877.39 | 3,008,274,838.63 |
| Cashpaidtoandforemployees | 1,551,618,475.12 | 1,565,653,879.04 |
| Taxespaid | 131,551,451.03 | 146,230,769.74 |
| Cashusedinotheroperatingactivities | 152,074,355.36 | 158,263,473.04 |
| Subtotalofcashusedinoperatingactivities | 4,876,070,158.90 | 4,878,422,960.45 |
| Netcashflowfromoperatingactivities | 1,244,212,151.94 | 854,864,537.42 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestment | 1,020,261,000.00 | 9,465,141,937.71 |
| Returnoninvestment | 7,261,003.02 | 57,805,732.66 |
| Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 1,118,393.70 | 6,391,414.47 |
| Cashgeneratedfromotherinvestingactivities | 719,648,924.45 | 153,332,756.55 |
| Subtotalofcashgeneratedfrominvestingactivities | 1,748,289,321.17 | 9,682,671,841.39 |
| Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 217,461,635.75 | 846,768,782.56 |
| Paymentsforinvestments | 1,225,227,200.56 | 9,664,068,682.71 |
| Cashusedinotherinvestingactivities | 1,537,716,982.54 | 125,073,907.21 |
| Subtotalofcashusedininvestingactivities | 2,980,405,818.85 | 10,635,911,372.48 |
| Netcashgeneratedfrom/usedininvestingactivities | -1,232,116,497.68 | -953,239,531.09 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | ||
| Including:Capitalcontributionsbynon-controllingintereststosubsidiaries | ||
| Borrowingsraised | 2,146,986,621.30 | 1,289,625,206.43 |
| Cashgeneratedfromotherfinancingactivities | 98,800.40 | |
| Subtotalofcashgeneratedfromfinancingactivities | 2,146,986,621.30 | 1,289,724,006.83 |
| Repaymentofborrowings | 1,822,885,554.18 | 1,345,902,236.09 |
| Interestanddividendspaid | 293,297,631.61 | 140,337,440.33 |
| Including:Dividendspaidbysubsidiariestonon-controllinginterests | ||
| Cashusedinotherfinancingactivities | 58,790,076.23 | 191,144,339.52 |
| Subtotalofcashusedinfinancingactivities | 2,174,973,262.02 | 1,677,384,015.94 |
| Netcashgeneratedfrom/usedinfinancingactivities | -27,986,640.72 | -387,660,009.11 |
| 4.Effectofforeignexchangerateschangesoncashandcashequivalents | 33,687,940.05 | 16,753,038.55 |
| 5.Netincreaseincashandcashequivalents | 17,796,953.59 | -469,281,964.23 |
| Add:Cashandcashequivalents,beginningoftheperiod | 1,353,615,305.93 | 1,822,897,270.16 |
| 6.Cashandcashequivalents,endoftheperiod | 1,371,412,259.52 | 1,353,615,305.93 |
6.CashFlowStatementoftheCompanyastheParent
Unit:RMB
| Item | 2024 | 2023 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 3,098,290,208.00 | 3,400,282,767.04 |
| Taxrebates | 9,939,935.39 | 18,736,021.12 |
| Cashgeneratedfromotheroperatingactivities | 37,691,532.06 | 104,254,111.11 |
| Subtotalofcashgeneratedfromoperatingactivities | 3,145,921,675.45 | 3,523,272,899.27 |
| Paymentsforcommoditiesandservices | 1,588,520,778.34 | 2,159,792,398.75 |
| Cashpaidtoandforemployees | 732,960,267.90 | 800,852,277.47 |
| Taxespaid | 62,188,734.71 | 76,441,020.56 |
| Cashusedinotheroperatingactivities | 102,078,177.17 | 81,704,187.26 |
| Subtotalofcashusedinoperatingactivities | 2,485,747,958.12 | 3,118,789,884.04 |
| Netcashflowfromoperatingactivities | 660,173,717.33 | 404,483,015.23 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestment | 1,073,041,912.36 | 9,682,135,302.71 |
| Returnoninvestment | 10,767,395.90 | 224,820,810.27 |
| Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 798,733.70 | 27,474,017.14 |
| Netproceedsfromthedisposalofsubsidiaries |
| andotherbusinessunits | ||
| Cashgeneratedfromotherinvestingactivities | 3,147,468,380.82 | 2,278,859,489.72 |
| Subtotalofcashgeneratedfrominvestingactivities | 4,232,076,422.78 | 12,213,289,619.84 |
| Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 31,771,255.39 | 39,152,926.47 |
| Paymentsforinvestments | 1,636,027,200.56 | 10,390,555,710.00 |
| Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits | ||
| Cashusedinotherinvestingactivities | 3,132,102,262.33 | 2,206,901,511.31 |
| Subtotalofcashusedininvestingactivities | 4,799,900,718.28 | 12,636,610,147.78 |
| Netcashgeneratedfrom/usedininvestingactivities | -567,824,295.50 | -423,320,527.94 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | ||
| Borrowingsraised | 760,660,043.27 | 287,145,597.90 |
| Cashgeneratedfromotherfinancingactivities | 142,001,000.00 | 90,098,800.40 |
| Subtotalofcashgeneratedfromfinancingactivities | 902,661,043.27 | 377,244,398.30 |
| Repaymentofborrowings | 700,610,915.91 | 485,589,548.34 |
| Interestanddividendspaid | 268,140,822.07 | 119,661,804.52 |
| Cashusedinotherfinancingactivities | 289,369,382.06 | 274,154,122.94 |
| Subtotalofcashusedinfinancingactivities | 1,258,121,120.04 | 879,405,475.80 |
| Netcashgeneratedfrom/usedinfinancingactivities | -355,460,076.77 | -502,161,077.50 |
| 4.Effectofforeignexchangerateschangesoncashandcashequivalents | 5,033,615.48 | 2,858,399.67 |
| 5.Netincreaseincashandcashequivalents | -258,077,039.46 | -518,140,190.54 |
| Add:Cashandcashequivalents,beginningoftheperiod | 765,705,926.26 | 1,283,846,116.80 |
| 6.Cashandcashequivalents,endoftheperiod | 507,628,886.80 | 765,705,926.26 |
7.ConsolidatedStatementsofChangesinOwners’EquityAmountduringthecurrentperiod
Unit:RMB
| Item | 2024 | ||||||||||||||
| EquityAttributabletoOwnersoftheCompanyastheParent | EquityofNon-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 | |||||||||||||||
| Other | |||||||||||||||
| 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) | -46,301,624.00 | -239.67 | -156,273,947.45 | -193,438,720.78 | 35,582,843.63 | 10,768,267.10 | 170,707,463.09 | 207,921,483.48 | -3,821,636.98 | 204,099,846.50 | |||||
| 3.1Totalcomprehensiveincome | 35,582,843.63 | 410,321,398.17 | 445,904,241.80 | 15,947,303.71 | 461,851,545.51 | |||||||||
| 3.2Capitalincreasedandreducedbyowners | -46,301,624.00 | -239.67 | -156,273,947.45 | -193,438,720.78 | -9,137,090.34 | -19,768,940.69 | -28,906,031.03 | |||||||
| 3.2.1Ordinarysharesincreasedbyshareholders | -46,301,624.00 | -123,788,382.82 | -170,090,006.82 | -19,768,940.69 | -189,858,947.51 | |||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||||||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | ||||||||||||||
| 3.2.4Other | -239.67 | -32,485,564.63 | -193,438,720.78 | 160,952,916.48 | 160,952,916.48 | |||||||||
| 3.3Profitdistribution | 10,768,267.10 | -239,613,935.08 | -228,845,667.98 | -228,845,667.98 | ||||||||||
| 3.3.1Appropriationtosurplusreserves | 10,768,267.10 | -10,768,267.10 |
| 3.3.2Appropriationtogeneralreserve | ||||||
| 3.3.3Appropriationtoowners(orshareholders) | -228,845,667.98 | -228,845,667.98 | -228,845,667.98 | |||
| 3.2.4Other | ||||||
| 3.4Transferswithinowners’equity | ||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | ||||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | ||||||
| 3.4.3Lossoffsetbysurplusreserves |
| 3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings | ||||||||||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | ||||||||||||||
| 3.4.6Other | ||||||||||||||
| 3.5Specificreserve | ||||||||||||||
| 3.5.1Increaseintheperiod | ||||||||||||||
| 3.5.2Usedintheperiod | ||||||||||||||
| 3.6Other | ||||||||||||||
| 4.Balancesasattheendoftheperiod | 817,306,010.00 | 71,383,438.11 | 178,518,667.31 | 166,925,985.26 | 1,271,429,282.44 | 6,933,165,006.16 | 9,438,728,389.28 | 382,839,454.92 | 9,821,567,844.20 |
Previousperiod
Unit:RMB
| Item | 2023 |
| EquityAttributabletoOwnersoftheCompanyastheParent | EquityofNon-controllinginterests | TotalOwners’Equity | |||||||||||||
| Sharecapital | OtherEquityInstruments | CapitalReserves | Less:TreasuryStock | OtherComprehensiveIncome | SpecificReserve | SurplusReserves | GeneralReserve | RetainedEarnings | Other | Subtotal | |||||
| PreferredShares | PerpetualBonds | Other | |||||||||||||
| 1.Balancesasattheendoftheprioryear | 887,633,151.00 | 71,383,830.75 | 395,872,135.71 | 154,396,198.73 | 107,628,898.09 | 1,215,124,336.54 | 6,490,910,719.35 | 9,014,156,872.71 | 393,749,387.23 | 9,407,906,259.94 | |||||
| Add:Adjustmentsforchangedaccountingpolicies | |||||||||||||||
| Adjustmentsforcorrectionsofpreviouserrors | |||||||||||||||
| Other | |||||||||||||||
| 2.Balancesasatthebeginningoftheyear | 887,633,151.00 | 71,383,830.75 | 395,872,135.71 | 154,396,198.73 | 107,628,898.09 | 1,215,124,336.54 | 6,490,910,719.35 | 9,014,156,872.71 | 393,749,387.23 | 9,407,906,259.94 | |||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | -24,025,517.00 | -152.97 | -61,079,520.95 | 39,042,522.05 | 23,714,243.54 | 45,536,678.80 | 271,546,823.72 | 216,650,033.09 | -7,088,295.33 | 209,561,737.76 | |||||
| 3.1Totalcomprehensiveincome | 23,714,243.54 | 403,444,254.42 | 427,158,497.96 | -7,088,295.33 | 420,070,202.63 | ||||||||||
| 3.2Capitalincreasedandreducedbyowners | -24,025,517.00 | -152.97 | -61,079,520.95 | 39,042,522.05 | -124,147,712.97 | -124,147,712.97 | |||||||
| 3.2.1Ordinarysharesincreasedbyshareholders | -24,025,517.00 | -76,058,492.62 | -100,084,009.62 | -100,084,009.62 | |||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | |||||||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | 16,824,114.86 | 16,824,114.86 | 16,824,114.86 | ||||||||||
| 3.2.4Other | -152.97 | -1,845,143.19 | 39,042,522.05 | -40,887,818.21 | -40,887,818.21 | ||||||||
| 3.3Profitdistribution | 45,536,678.80 | -131,897,430.70 | -86,360,751.90 | -86,360,751.90 | |||||||||
| 3.3.1Appropriationtosurplusreserves | 45,536,678.80 | -45,536,678.80 |
| 3.3.2Appropriationtogeneralreserve | ||||||
| 3.3.3Appropriationtoowners(orshareholders) | -86,360,751.90 | -86,360,751.90 | -86,360,751.90 | |||
| 3.2.4Other | ||||||
| 3.4Transferswithinowners’equity | ||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | ||||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | ||||||
| 3.4.3Lossoffsetbysurplusreserves |
| 3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings | ||||||||||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | ||||||||||||||
| 3.4.6Other | ||||||||||||||
| 3.5Specificreserve | ||||||||||||||
| 3.5.1Increaseintheperiod | 6,075,563.41 | 6,075,563.41 | 6,075,563.41 | |||||||||||
| 3.5.2Usedintheperiod | -6,075,563.41 | -6,075,563.41 | -6,075,563.41 | |||||||||||
| 3.6Other | ||||||||||||||
| 4.Balancesasattheendoftheperiod | 863,607,634.00 | 71,383,677.78 | 334,792,614.76 | 193,438,720.78 | 131,343,141.63 | 1,260,661,015.34 | 6,762,457,543.07 | 9,230,806,905.80 | 386,661,091.90 | 9,617,467,997.70 |
8.StatementsofChangesinOwners’EquityoftheCompanyastheParentAmountduringthecurrentperiod
Unit:RMB
| Item | 2024 | |||||||||||
| Sharecapital | OtherEquityInstruments | CapitalReserves | Less:TreasuryStock | OtherComprehensiveIncome | SpecificReserve | SurplusReserves | RetainedEarnings | Other | TotalOwners’Equity | |||
| PreferredShares | PerpetualBonds | Other | ||||||||||
| 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 | ||||||||||||
| Other | ||||||||||||
| 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) | -46,301,624.00 | -239.67 | -150,117,688.14 | -193,438,720.78 | 5,553.69 | 10,768,267.10 | -131,931,264.11 | -124,138,274.35 | |||
| 3.1Totalcomprehensiveincome | 5,553.69 | 107,682,670.97 | 107,688,224.66 | ||||||||
| 3.2Capitalincreasedandreducedbyowners | -46,301,624.00 | -239.67 | -150,117,688.14 | -193,438,720.78 | -2,980,831.03 | ||||||
| 3.2.1Ordinarysharesincreasedbyshareholders | -46,301,624.00 | -123,788,382.82 | -170,090,006.82 | ||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments |
| 3.2.3Share-basedpaymentsincludedinowners’equity | |||||||||
| 3.2.4Other | -239.67 | -26,329,305.32 | -193,438,720.78 | 167,109,175.79 | |||||
| 3.3Profitdistribution | 10,768,267.10 | -239,613,935.08 | -228,845,667.98 | ||||||
| 3.3.1Appropriationtosurplusreserves | 10,768,267.10 | -10,768,267.10 | |||||||
| 3.3.2Appropriationtoowners(orshareholders) | -228,845,667.98 | -228,845,667.98 | |||||||
| 3.3.3Other |
| 3.4Transferswithinowners’equity |
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves |
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves |
| 3.4.3Lossoffsetbysurplusreserves |
| 3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings |
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | |||||||||||
| 3.4.6Other | |||||||||||
| 3.5Specificreserve | |||||||||||
| 3.5.1Increaseintheperiod | |||||||||||
| 3.5.2Usedintheperiod | |||||||||||
| 3.6Other | |||||||||||
| 4.Balancesasattheendoftheperiod | 817,306,010.00 | 71,383,438.11 | 246,054,960.86 | -35,886.10 | 1,268,320,542.80 | 5,791,958,278.26 | 8,194,987,343.93 |
Previousperiod
Unit:RMB
| Item | 2023 | |||||||||||
| Sharecapital | OtherEquityInstruments | Capitalreserves | Less:TreasuryStock | OtherComprehensiveIncome | SpecificReserve | SurplusReserves | RetainedEarnings | Other | TotalOwners’Equity | |||
| PreferredShares | PerpetualBonds | Other | ||||||||||
| 1.Balancesasattheendoftheprioryear | 887,633,151.00 | 71,383,830.75 | 457,252,169.95 | 154,396,198.73 | -30,162.34 | 1,212,015,596.90 | 5,600,420,185.06 | 8,074,278,572.59 | ||||
| Add:Adjustmentsforchangedaccountingpolicies | ||||||||||||
| Adjustmentsforcorrectionsofpreviouserrors | ||||||||||||
| Other | ||||||||||||
| 2.Balancesasatthebeginningoftheyear | 887,633,151.00 | 71,383,830.75 | 457,252,169.95 | 154,396,198.73 | -30,162.34 | 1,212,015,596.90 | 5,600,420,185.06 | 8,074,278,572.59 | ||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | -24,025,517.00 | -152.97 | -61,079,520.95 | 39,042,522.05 | -11,277.45 | 45,536,678.80 | 323,469,357.31 | 244,847,045.69 | ||||
| 3.1Totalcomprehensiveincome | -11,277.45 | 455,366,788.01 | 455,355,510.56 | ||||||||
| 3.2Capitalincreasedandreducedbyowners | -24,025,517.00 | -152.97 | -61,079,520.95 | 39,042,522.05 | -124,147,712.97 | ||||||
| 3.2.1Ordinarysharesincreasedbyshareholders | -24,025,517.00 | -76,058,492.62 | -100,084,009.62 | ||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | |||||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | 16,824,114.86 | 16,824,114.86 | |||||||||
| 3.2.4Other | -152.97 | -1,845,143.19 | 39,042,522.05 | -40,887,818.21 | |||||||
| 3.3Profitdistribution | 45,536,678.80 | -131,897,430.70 | -86,360,751.90 |
| 3.3.1Appropriationtosurplusreserves | 45,536,678.80 | -45,536,678.80 | |||
| 3.3.2Appropriationtoowners(orshareholders) | -86,360,751.90 | -86,360,751.90 | |||
| 3.3.3Other | |||||
| 3.4Transferswithinowners’equity | |||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | |||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | |||||
| 3.4.3Lossoffsetbysurplusreserves |
| 3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings | |||||||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | |||||||||||
| 3.4.6Other | |||||||||||
| 3.5Specificreserve | |||||||||||
| 3.5.1Increaseintheperiod | |||||||||||
| 3.5.2Usedintheperiod | |||||||||||
| 3.6Other | |||||||||||
| 4.Balancesasattheendoftheperiod | 863,607,634.00 | 71,383,677.78 | 396,172,649.00 | 193,438,720.78 | -41,439.79 | 1,257,552,275.70 | 5,923,889,542.37 | 8,319,125,618.28 |
III.CompanyProfileLuThaiTextileCo.,Ltd.(hereinafterreferredtoas“theCompany”),originallyLuThaiTextileLtd.,wasaSino-foreignjointventureestablishedbyZiboLuchengTextileInvestmentCo.,Ltd.(formerlyZiboLuchengTextileCo.,Ltd.,hereinafterreferredtoas“LuchengTextile”)andTailun(Thailand)TextileCo.,Ltd.InFebruary1993,itwasrestructuredintoajoint-stockcompany.InJuly1997,withtheapprovaloftheSecuritiesCommitteeoftheStateCouncil,80,000,000foreignshares(B-shares)werelisteddomestically.On19August1997,itwaslistedontheSZSE,withtheB-sharestockcodebeing200726.On24November2000,theCSRCapprovedtheissuanceofanadditional50,000,000ordinaryshares(A-shares),whichwerelistedontheSZSEon25December2000,withtheA-sharestockcodebeing000726.Accordingtotheresolutionpassedatthe10thmeetingofthe10thBoardofDirectorson19June2023andtheProposalonRepurchaseofDomesticallyListedForeignShares(B-Stock)passedattheFirstExtraordinaryGeneralMeetingon6July2023,theCompanyrepurchasedandcancelled46,176,428.00shares.Accordingtotheresolutionpassedatthe18thmeetingofthe10thBoardofDirectorson19January2024andtheProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveConditionpassedattheFirstExtraordinaryGeneralMeetingon5February2024,theCompanyrepurchasedandcancelled66,500.00shares.Accordingtotheresolutionpassedatthe22ndmeetingofthe10thBoardofDirectorson28May2024andtheProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveConditionpassedattheSecondExtraordinaryGeneralMeetingon14June2024,theCompanyrepurchasedandcancelled59,000.00shares.Afterseveralcapitalincreasesandrepurchases,asat31December2024,theCompany’sregisteredcapitalwasRMB817,306,000.Specifically,therewere59,118,000A-sharesand22,612,600B-shares.TheCompany’sregisteredaddress:61LuthaiBoulevard,High-techDevelopmentZone,ZiboCity,ShandongProvince,P.R.ChinaTheCompany’sunifiedsocialcreditcode:91370300613281175K.TheCompany’slegalrepresentative:LiuZibin.ThescopeofbusinessoftheCompanyanditssubsidiariesshallincludegeneralprojects:Fabricprintinganddyeingprocessing;garmentmanufacturing,wholesale;procurementofprimaryagriculturalproducts;powergenerationandtransmissionbusiness.TheCompany’sfinancialstatementsandNotesthereofhavebeenapprovedbythe30thMeetingofthe10thBoardofDirectorsheldon8April2025.IV.BasisforPreparationofFinancialStatements
1.PreparationBasisThisfinancialstatementispreparedinaccordancewiththeaccountingstandardsforbusinessenterprises,andtheapplicationguide,interpretationandotherrelevantregulations(hereinaftercollectivelyreferredtoas“AccountingStandardsforBusinessEnterprises”)issuedbytheMinistryofFinance.Inaddition,theCompanyalsodisclosedrelevantfinancialinformationinaccordancewiththeRegulationsonInformationDisclosureandCompilationforCompaniesPublicOfferingSecuritiesNo.15-GeneralProvisionsonFinancialReport(Revisedin2023)issuedbyCSRC.
TheCompany’saccountingisbasedontheaccrualbasis.Exceptforcertainfinancialinstruments,thisfinancialstatementismeasuredonthebasisofhistoricalcost.Iftheassetisimpaired,thecorrespondingimpairmentprovisionshallbemadeinaccordancewithrelevantregulations.
2.Going-concernThefinancialstatementsarepresentedonthebasisofcontinuingoperations.V.SignificantAccountingPoliciesandEstimatesSpecificaccountingpoliciesandaccountingestimatesindicators:
TheCompanydeterminesincomerecognitionpolicyaccordingtoitsproductionandoperationcharacteristics,andthespecificaccountingpoliciesareshowninNoteV-27.
1.StatementofCompliancewiththeAccountingStandardsforBusinessEnterprisesThefinancialstatementspreparedbytheCompanyareincompliancewithincompliancewiththeAccountingStandardsforBusinessEnterprises,whichfactuallyandcompletelypresenttheconsolidated,andtheCompany’sfinancialpositionsasat31December2024,businessresultsandcashflowsfor2024,andotherrelevantinformation.
2.FiscalYearTheCompany’sfiscalyearstartson1Januaryandendson31DecemberofeveryyearaccordingtotheGregoriancalendar.
3.OperatingCycleTheCompanyregards12monthsasanoperatingcycle.
4.RecordingCurrencyTheCompanyanditsdomesticsubsidiariesadoptRMBastherecordingcurrency.TheCompany’soverseassubsidiariesconfirmtoadoptHKDollarandUSDollarastherecordingcurrencyaccordingtheirmajoreconomicenvironmentoftheoperating.WhenpreparingthefinancialstatementsfortheReportingPeriod,theCompanyadoptedRMBastherecordingcurrency.
5.MethodsforDeterminingMaterialityStandardsandSelectionCriteria?Applicable□Notapplicable
| Item | MaterialityCriteria |
| Significantreceivableswithdrawalofbaddebtprovisionseparatelyaccrued | Individualreceivablesexceeding0.3%oftotalassets |
| SignificantreceivablesreversedorrecoveredduringtheReportingPeriod | Individualreceivablesexceeding0.3%oftotalassets |
| Significantwritten-offofreceivablesduringtheReportingPeriod | Individualreceivablesexceeding0.3%oftotalassets |
| Significantprepaymentsagingoveroneyear | Individualprepaymentamountsexceeding0.3%oftotalassets |
| Significantconstructioninprogress | Individualinvestmentamountsexceeding1%oftotalassets |
| Significantaccountspayableagingoveroneyear | Individualaccountspayableamountsexceeding0.3%oftotalassets |
| Significantnon-wholly-ownedsubsidiary | Asubsidiarywhosetotalassets,operatingincome,ortotalprofit(orabsolutelossamount)exceeds10%ofthecorrespondingitemintheconsolidatedfinancialstatementsisconsideredasignificantnon-whollyownedsubsidiary |
| Significantinvestmentactivityprojects | Individualinvestmentamountsexceeding5%oftotalassets |
6.AccountingTreatmentforBusinessCombinationsundertheCommonControlandNotundertheCommonControl
(1)BusinesscombinationsunderthesamecontrolForbusinesscombinationsunderthesamecontrol,theassetsandliabilitiesofthemergedpartyacquiredbythemergerpartyinthemerger,shallbemeasuredatthecarryingvalueofthemergedpartyintheconsolidatedfinancialstatementofthefinalcontrolleronthecombinationdate.Asforthedifferencebetweenthecarryingvalueofthemergerconsiderationandcarryingvalueofthenetassetsobtainedinthemerger,thecapitalreserveshallbeadjusted,andifthecapitalreserveisinsufficienttooffset,theretainedearningsshallbeadjusted.RealizebusinesscombinationunderthesamecontrolinstepsbytransactionseveraltimesTheassetsandliabilitiesofthecombinedpartyacquiredbythecombiningpartyinthecombination,shallbemeasuredatthebookvalueofthecombinedpartyintheconsolidatedfinancialstatementofthefinalcontrolleronthecombinationdate;thedifferencebetweenthesumofthebookvalueofinvestmentheldbeforecombinationplusthebookvaluenewlypaidonthecombinationdate,andthebookvalueofthenetassetsacquiredincombination,isusedforadjustingthecapitalreserve(capitalstockpremium),andifthecapitalreserve(capitalstockpremium)isinsufficienttooffset,theretainedearningsshallbeadjusted.Thelong-termequityinvestmentheldbythemergingpartybeforeitobtainedcontrolofthemergedpartyhasbeenconfirmedtoberelevantbetweenthedateofacquiringtheoriginalequityandthedatewhenthemergingpartyandthemergedpartyareunderthefinalcontrolofthesameparty,whicheverislater,tothedateofmerger.Changesinprofitsandlosses,othercomprehensiveincomeandotherowners’equityshouldbeoffsetagainsttheopeningretainedearningsorcurrentprofitsandlossesduringthecomparativestatementperiodrespectively.
(2)BusinesscombinationsnotunderthesamecontrolForabusinesscombinationnotunderthesamecontrol,thecostofthecombinationistheassetspaid,liabilitiesincurredorassumed,andthefairvalueoftheequitysecuritiesissuedontheacquisitiondatetoobtaincontroloverthepurchasedparty.Onthepurchasedate,theacquiredassets,liabilitiesandcontingentliabilitiesofthepurchasedpartyarerecognisedatfairvalue.Thedifferencebetweenthemergercostandthefairvalueoftheidentifiablenetassetsoftheacquiredpartyacquiredinthemerger(theformerisgreaterthanthelatter)isrecognisedasgoodwill,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.Whenpreparingconsolidatedfinancialstatements,theaccountingpoliciesandaccountingperiodrequirementsoftheCompanyanditssubsidiariesareconsistent,andsignificantinter-companytransactionsandbalancesareoffset.SubsidiariesandbusinessesincreasedduetobusinesscombinationsunderthesamecontrolduringtheReportingPeriodshallbeincludedintotheCompany’scombinationscopesincethedatewhentheyarejointlycontrolledbythefinalcontroller,andtheoperatingresultandcashflowsincethenshallberespectivelyincludedintotheconsolidatedincomestatementandconsolidatedcashflowstatement.AsforsubsidiariesandbusinessesincreaseduetobusinesscombinationsnotunderthesamecontrolduringtheReportingPeriod,therevenue,expensesandprofitorthosesubsidiariesandbusinessesfromthepurchasedatetotheendoftheReportingPeriodshallbeincludedintotheconsolidatedincomestatementandthecashflowthereofshallbeincludedintotheconsolidatedcashflowstatement.Theshareofshareholders’equityinsubsidiariesnotbelongingtotheCompanyshallberegardedastheminorityinterestsandseparatelylistedundertheitemofshareholders’equityintheconsolidatedbalancesheet.Theshareofcurrentportionofnetprofitorlossinsubsidiariesbelongingtominorityinterestsshallpresentedastheitemofminorityinterestsundertheitemofnetprofitintheconsolidatedincomestatement.Thedifferencebetweenthelossesofsubsidiariesbornbynot-controllingshareholdersandtheshareofthecompany’sowners’equityattheperiod-beginningthenot-controllingshareholdersenjoy(theformerislargerthanthelatter)shallbeoffsettheminorityinterests.
8.ClassificationofJointArrangementsandAccountingTreatmentofJointOperationsJointarrangementreferstoanarrangementunderthejointcontroloftwoormoreparticipants.TheCompany’sjointarrangementsaredividedintojointoperationsandjointventures.
(1)JointoperationsAjointoperationreferstoajointarrangementwherebytheCompanyenjoysrelevantassetsofthearrangement,andassumesobligationsrelevantliabilitiesofthearrangement.TheCompanyrecognisesthefollowingitemsrelatedtotheinterestshareinjointoperation,andconductsaccountingtreatmentinaccordancewithrelevantprovisionsoftheAccountingStandardforBusinessEnterprises:
a)Itrecognisesseparatelyheldassetsandjointlyheldassetsaccordingtotheproportion;b)Itrecognisesseparatelyassumedliabilitiesandjointlyassumedliabilitiesaccordingtotheproportion;c)Incomefromthesaleoftheproportionofjointoperationoutputisrecognised;d)Incomefromthesaleofthejointoperationoutputisrecognisedaccordingtotheproportion.e)Whiletheseparatelyincurredfeeisrecognised,theincurredfeeforjointoperationisrecognisedaccordingtotheproportion.
(2)JointventuresAjointventurereferstoajointarrangementwherebytheCompanyenjoystherightofthenetassetsofthearrangementonly.AccountingtreatmentoftheinvestmentofajointventureisconductedbytheCompanyinlinewiththeprovisionsofrelevantequitymethodofaccountingforlong-termequityinvestment.
9.ConfirmationStandardforCashandCashEquivalentTheterm“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.Itemsunderincomeandcostsintheincomestatementaretranslatedatthespotexchangerateonthetransactiondate.Allitemsinthecashflowstatementareconvertedaccordingtotheapproximatespotexchangerateontheoccurrencedateofcashflow.Theimpactofexchangeratechangesoncashistakenasareconcilingitem,andtheitem“impactofexchangeratechangesoncashandcashequivalents”isseparatelylistedinthecashflowstatementtoreflect.Thedifferencearisingfromtheconversionoffinancialstatementsisreflectedinthe“othercomprehensiveincome”undertheshareholders’equityinthebalancesheet.Whendisposingoftheoverseasoperationandlosingcontrolrights,theforeigncurrencystatementconversiondifferencerelatedtotheoverseasoperationshownundertheshareholders’equityinthebalancesheetshallbetransferredtocurrentprofitandlossofdisposalinwholeorinproportiontothedisposalofoverseasoperation.
11.FinancialInstrumentsFinancialinstrumentsrefertocontractsthatformoneparty’sfinancialassetsandformotherparties’financialliabilitiesorequityinstruments.
(1)RecognitionandderecognitionoffinancialinstrumentsTheCompanyrecognisesafinancialassetorliabilitywhenitbecomesapartyoftherelevantfinancialinstrumentcontract.Whereafinancialassetsatisfiesanyofthefollowingrequirements,therecognitionofitisterminated:
a)Thecontractualrightsforcollectingthecashflowofthesaidfinancialassetareterminated;b)Thesaidfinancialassethasbeentransferredandmeetthefollowingderecognitionconditionsfortransferoffinancialassets.Onlywhentheprevailingobligationsofafinancialliabilityarerelievedinallorinpartmaytherecognitionofthefinancialliabilitybeterminatedinallorpartly.WheretheCompany(debtor)entersintoanagreementwithacreditorsoastosubstitutetheexistingfinancialliabilitiesbywayofanynewfinancialliability,andifthecontractualstipulationsregardingthenewfinancialliabilityissubstantiallydifferentfromthatregardingtheexistingfinancialliability,itterminatestherecognitionoftheexistingfinancialliability,andatthesametimerecognisesthenewfinancialliability.Thepurchaseandsaleoffinancialassetsunderthenormalwaysshallberecognisedandstoppedtoberecognisedrespectivelyatthepriceoftransactiondate.
(2)ClassificationandmeasurementoffinancialassetsTheCompanyclassifiesfinancialassetsintothefollowingthreecategoriesaccordingtothebusinessmodeofmanagingfinancialassetsandthecontractualcashflowcharacteristicsoffinancialassetsuponinitialrecognition:financialassetsmeasuredatamortizedcost,financialassets
measuredatfairvalueandwhosechangesareincludedinothercomprehensiveincome,andfinancialassetsmeasuredatfairvalueandwhosechangesareincludedincurrentprofitandloss.Financialassetsaremeasuredatfairvalueuponinitialrecognition.Forfinancialassetsmeasuredatfairvalueandwhosechangesareincludedincurrentprofitandloss,relevanttransactionexpensesaredirectlyincludedincurrentprofitandloss;forothertypesoffinancialassets,relevanttransactionexpensesareincludedintheinitialrecognitionamount.Foraccountsreceivablearisingfromthesaleofproductsortheprovisionoflabourservices,whichdonotincludeordonotconsidersignificantfinancingcomponents,theamountofconsiderationtheCompanyisexpectedtobeentitledtoreceiveistakenastheinitialrecognitionamount.FinancialassetsmeasuredatamortizedcostTheCompanyclassifiesfinancialassetsthatmeetthefollowingconditionsandarenotdesignatedtobemeasuredatfairvalueandwhosechangesareincludedincurrentprofitandlossasfinancialassetsmeasuredatamortizedcost:
TheCompany’sbusinessmodelformanagingthisfinancialassetisaimedatcollectingcontractualcashflow;Thecontractualtermsofthisfinancialassetstipulatethatthecashflowgeneratedonthespecificdateisonlythepaymentofprincipalandinterestbasedontheprincipalamountoutstanding.Suchfinancialassetsaremeasuredinamortizedcostbytheeffectiveinterestmethodafterinitialrecognition.Gainsorlossesarisingfromfinancialassetsmeasuredinamortizedcostthatarenotpartofanyhedgingrelationshipareincludedincurrentprofitandlosswhenderecognition,amortizationaccordingtotheeffectiveinterestmethod,orimpairmentisrecognised.FinancialassetsmeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincomeTheCompanyclassifiesfinancialassetsthatmeetthefollowingconditionsandarenotdesignatedtobemeasuredatfairvalueandwhosechangesareincludedincurrentprofitandlossasfinancialassetsmeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincome:
TheCompany’sbusinessmodelformanagingthisfinancialassetisaimedatbothcollectingthecontractualcashflowandsellingthisfinancialasset;Thecontractualtermsofthisfinancialassetstipulatethatthecashflowgeneratedonthespecificdateisonlythepaymentofprincipalandinterestbasedontheprincipalamountoutstanding.Suchfinancialassetsaresubsequentlymeasuredatfairvalueafterinitialrecognition.Interest,impairmentlossesorgainsandexchangegainsandlossescalculatedbytheeffectiveinterestmethodareincludedincurrentprofitandloss,whileothergainsorlossesareincludedinothercomprehensiveincome.Whenthefinancialassetisderecognised,theaccumulatedgainsorlossespreviouslyincludedinothercomprehensiveincomearetransferredoutandincludedincurrentprofitandloss.FinancialassetsatfairvaluethroughprofitorlossExceptfortheabovefinancialassetsmeasuredatamortizedcostandatfairvaluewithchangesincludedinothercomprehensiveincome,theCompanyclassifiesallotherfinancialassetsasfinancialassetsmeasuredatfairvaluewithchangesincludedincurrentprofitandloss.Uponinitialrecognition,inordertoeliminateorsignificantlyreduceaccountingmismatches,theCompanyirrevocablydesignatessomefinancialassetsthatshouldhavebeenmeasuredatamortizedcostorat
fairvalueandwhosechangesareincludedinothercomprehensiveincomeasfinancialassetsmeasuredatfairvalueandwhosechangesareincludedincurrentprofitandloss.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:
a)Thecontractualobligationtodelivercashorotherfinancialassetstootherparties.
b)Thecontractualobligationtoexchangefinancialassetsorfinancialliabilitieswithotherpartiesunderpotentiallyunfavourableconditions.c)Non-derivativecontractsthatmustbeorcanbesettledwiththeenterprise’sownequityinstrumentsinthefuture,andtheenterprisewilldeliveravariablenumberofitsownequityinstrumentsaccordingtothecontract.d)Derivativecontractsthatmustbeorcanbesettledwiththeenterprise’sownequityinstrumentsinthefuture,exceptderivativescontractsthatexchangeafixedamountofcashorotherfinancialassetswithafixedamountofitsownequityinstruments.Equityinstrumentsrefertocontractsthatcanprovethatanenterprisehastheresidualequityinitsassetsafterdeductingallliabilities.IftheCompanycannotunconditionallyavoidperformingacontractualobligationbydeliveringcashorotherfinancialassets,thecontractualobligationmeetsthedefinitionoffinancialliability.IfafinancialinstrumentmustbeorcanbesettledwiththeCompany’sownequityinstruments,itisnecessarytoconsiderwhethertheCompany’sownequityinstrumentsusedtosettletheinstrumentareusedassubstitutesforcashorotherfinancialassetsortoenabletheholderofthisinstrumenttoenjoytheresidualequityintheassetsafterdeductingallliabilitiesfromtheissuer.Ifitistheformer,thisinstrumentistheCompany’sfinancialliability;ifthelatteristhecase,thisinstrumentistheCompany’sequityinstrument.
(4)DerivativefinancialinstrumentsandembeddedderivativesTheCompany’sderivativefinancialinstrumentsincludeforwardforeignexchangecontractsandexchangeoptioncontracts,etc.Initially,thefairvalueonthedatewhenthederivativetransactioncontractissignedshallbeusedformeasurement,andthefairvalueshallbeusedforsubsequentmeasurement.Derivativefinancialinstrumentswithpositivefairvaluearerecognisedasanasset,whilethosewithnegativefairvalueareindeedrecognisedasaliability.Anygainsorlossesarisingfromchangesinfairvaluethatdonotconformtotheprovisionsofhedgeaccountingaredirectlyincludedincurrentprofitandloss.Forhybridinstrumentscontainingembeddedderivatives,suchasthemaincontractisafinancialasset,therelevantprovisionsonclassificationoffinancialassetsshallapplytothehybridinstrumentsasawhole.Ifthemaincontractisnotafinancialasset,andthehybridinstrumentisnotmeasuredatfairvalueanditschangesareincludedincurrentprofitandlossforaccountingtreatment,theembeddedderivativeinstrumenthasnocloserelationshipwiththemaincontractintermsofeconomiccharacteristicsandrisks,andhasthesameconditionsastheembeddedderivativeinstrument,andtheseparateexistinginstrumentmeetsthedefinitionofderivativeinstrument,theembeddedderivativeinstrumentshallbeseparatedfromthehybridinstrumentandtreatedasaseparatederivativefinancialinstrument.Ifitisnotpossibletoseparatelymeasureembeddedderivativeinstrumentsatthetimeofacquisitionorthesubsequentbalancesheetdate,thehybridinstrumentsasawholearedesignatedasfinancialassetsorfinancialliabilitiesmeasuredatfairvalueandtheirchangesareincludedincurrentprofitandloss.
(5)FairvalueoffinancialinstrumentsSeeNoteV-12forthemethodofdeterminingthefairvalueoffinancialassetsandliabilities.
(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).ForfinancialinstrumentswithlowcreditriskinStage1andStage2,theCompanyshallcalculatetheinterestincomeaccordingtothecarryingbalanceandeffectiveinterestratebeforedeductingtheimpairmentallowances.ForfinancialinstrumentsinStage3,interestincomeiscalculatedatthe
effectiveinterestrateandontheamortizedcostbyreducingtheallowanceforassetimpairmentfromthecarryingbalance.TheCompanycalculatesinterestincomebasedonthebookbalancebeforedeductingimpairmentprovisionsandtheeffectiveinterestrateforfinancialinstrumentsinthefirstandsecondstagesandwithlowcreditrisk.Theinterestincomeshallbecalculatedaccordingtotheirbookbalanceminustheamortizedcostafterimpairmentprovisionandtheeffectiveinterestrateforfinancialinstrumentsinthethirdstage.Forreceivablessuchasnotesreceivable,accountsreceivable,accountsreceivablefinancing,otherreceivables,andcontractassets,ifthecreditriskcharacteristicsofaparticularcustomersignificantlydifferfromthoseofothercustomersintheportfolio,orifthereisasignificantchangeinthecustomer’screditriskcharacteristics,theCompanywillmakereceivableswithdrawalofbaddebtprovisionseparatelyaccrued.Apartfromreceivableswithdrawalofbaddebtprovisionseparatelyaccruedaremade,theCompanyclassifiesreceivablesintoportfoliosbasedoncreditriskcharacteristicsandcalculatestheallowancefordoubtfuldebtsonaportfoliobasis.Notesreceivable,accountsreceivableandcontractassetsTheCompanyalwaysmeasuresitslossreservesatanamountequivalenttotheexpectedcreditlossduringtheentiredurationfornotesreceivable,contractassetsandaccountsreceivable,regardlessofwhetherthereisanysignificantfinancingcomponent.Companywilldividethenotesreceivable,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’investmentCreditors’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,thefinancialassetwill
becomefinancialassetswithdepreciationofcredit.Theobservableinformationbelowcanbetreatedasevidenceforcreditimpairmenttofinancialassets:
Theissuerordebtoriscaughtinaseriousfinancialdifficulty;Thedebtorbreachestheagreementofcontract,suchasdefaultoroverduepaymentofinterestorprincipal,orotherdefault;Duetoeconomicorcontractualconsiderationsrelatedtothedebtor’sfinancialdifficulties,theCompanygivesconcessionstothedebtor;andtheconcessionswillnotbemadeunderanyothercircumstances;Thereliesagreatprobabilityofbankruptcyorotherfinancialrestructuringforthedebtor;Theissuerordebtoriscaughtinfinancialdifficulties,whichleadstothedisappearanceoftheactivemarketofthefinancialasset;PresentationofexpectedcreditlossprovisionTheCompanyremeasuresexpectedcreditlossesoneachbalancesheetdatetoreflectthechangesinthecreditriskoffinancialinstrumentssinceinitialrecognition;theincreaseorreversalamountofthelossreserveformedtherefromshallbeincludedinthecurrentprofitandlossasimpairmentlossesorgains.Forfinancialassetsmeasuredatamortizedcost,thelossallowanceoffsetsthecarryingamountofthefinancialassetlistedinthebalancesheet;forcreditors’investmentthataremeasuredatfairvalueanditschangesareincludedinothercomprehensiveincome,theCompanyrecognisesitslossreserveinothercomprehensiveincomeandwillnotoffsetthecarryingamountofthefinancialasset.VerificationIncasethattheCompanyfailstoreasonablyexpectthecontractcashflowofthefinancialassettoberecoveredinafullorpartialscale,thebookbalanceofthefinancialassetwillbewrittenoffdirectly.Suchwrite-downsmayconstitutethederecognitionforrelatedfinancialassets.ThissituationoccursfrequentlywhentheCompanydeterminesthatthedebtordoesnothaveanyassetsoranysourceofincometogeneratesufficientcashflowtorepaytheamountthatwillbewrittenoff.However,inaccordancewiththeproceduresforrecoveringduepaymentsoftheCompany,thewritten-offfinancialassetsmaystillbeaffectedbytheexecutionactivities.Incasethatthefinancialassetwrittenoffisrecoveredlater,itshallbeincludedinthecurrentprofitandlossasthereversaloftheimpairmentloss.
(7)TransferoffinancialassetsThetransferoffinancialassetsreferstothetransferordeliveryoffinancialassetstoanotherparty(transferee)otherthantheissuerofthefinancialasset.IftheCompanyhastransferredalmostalltherisksandrewardsoftheownershipoffinancialassetstothetransferee,derecognisethefinancialasset;ifitretainsalmostalltherisksandrewardsoftheownershipoffinancialassets,thefinancialassetwillnotbederecognised.IftheCompanyhasneithertransferrednorretainedalmostalltherisksandrewardsoftheownershipoffinancialassets,itshallbedealtwithinthefollowingsituations:ifthecontrolofthefinancialassetisabandoned,theconfirmationofthefinancialassetshallbeterminatedandthegeneratedassetsandliabilitiesshallbeconfirmed;Ifthefinancialassetsarecontrolled,therelevantfinancialassetsshallberecognisedaccordingtotheextentoftheircontinuedinvolvementinthetransferredfinancialassets,andtherelevantliabilitiesshallberecognisedaccordingly.
(8)OffsettingfinancialassetsandfinancialliabilitiesWhentheCompanyhasalegalrightthatiscurrentlyenforceabletosetofftherecognisedfinancialassetsandfinancialliabilities,andintendseithertosettleonanetbasis,ortorealizethefinancialassetandsettlethefinancialliabilitysimultaneously,afinancialassetandafinancialliabilityshallbeoffsetandthenetamountispresentedinthebalancesheet.Exceptfortheabovecircumstances,financialassetsandfinancialliabilitiesshallbepresentedseparatelyinthebalancesheetandshallnotbeoffset.
12.MeasurementofFairValueFairvaluereferstothepricethatmarketparticipantscanreceivefromsalesofanassetorshallpayfortransferofaliabilityintheorderlytransactionthatoccursonthemeasurementdate.TheCompanymeasuresrelatedassetsorliabilitiesatfairvalue,assumingthattheorderlytransactionofsellingassetsortransferringliabilitiesisconductedinthemainmarketofrelatedassetsorliabilities;ifthereisnomainmarket,theCompanyassumesthatthetransactionisconductedinthemostbeneficialmarket.Themainmarket(orthemostfavourablemarket)isthetradingmarketthattheCompanycanenteronthemeasurementdate.TheCompanyusestheassumptionsusedbymarketparticipantstomaximizetheireconomicbenefitswhenpricingtheassetorliability.Forfinancialassetsorfinancialliabilitieswithactivemarkets,theCompanyusesthequotationinactivemarketstodetermineitsfairvalue.Ifthereisnoactivemarketforfinancialinstruments,theCompanyusesvaluationtechniquestodetermineitsfairvalue.Whenmeasuringnon-financialassetsatfairvalue,theabilityofmarketparticipantstobestusetheassetforgeneratingeconomicbenefits,ortheabilitytoselltheassettoothermarketparticipantsthatcanbestusetheassettogenerateeconomicbenefitsshallbeconsidered.TheCompanyadoptsvaluationtechniquesthatareapplicableinthecurrentsituationandhavesufficientavailabledataandotherinformationtosupportit.Priorityisgiventousingrelevantobservableinputvalues.Onlywhenobservableinputvaluesareunavailableorarenotfeasibletoobtain,theunobservableinputvaluescanbeused.Forassetsandliabilitiesmeasuredordisclosedatfairvalueinthefinancialstatements,thefairvaluehierarchytowhichtheybelongisdeterminedbasedonthelowestlevelinputvaluethatisimportanttothefairvaluemeasurementasawhole:thefirstlevelinputvalueistheunadjustedquotationofthesameassetsorliabilitiesabletobeobtainedinanactivemarketonthemeasurementdate;thesecondlevelinputvalueisthedirectlyorindirectlyobservableinputvalueoftherelevantassetorliabilityexceptthefirstlevelinputvalue;thethirdlevelinputvalueisunobservableinputvalueofrelatedassetsorliabilities.Oneachbalancesheetdate,theCompanyreassessedtheassetsandliabilitiescontinuouslymeasuredatfairvalueconfirmedinthefinancialstatementstodeterminewhetherthereisatransitionamonglevelsoffairvaluemeasurement.
13.Inventory
(1)ClassificationInventoriesmainlyincluderawmaterials,work-in-progress,stockproducts,productsprocessedonentrustmentandetc.
(2)Valuationmethodofinventoriesacquiringandissuing
Inventoriesshallbemeasuredatactualcostwhenacquired,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)StocksystemofinventoryTheperpetualinventorysystemismaintainedforstocksystem.
(5)Amortizationmethodofthelow-valueconsumptiongoodsandpackingarticlesFortheLow-valueconsumptiongoodsandthepackingarticlesshouldbeamortizedbyone-offamortizationmethodwhenconsuming.
14.Long-termEquityInvestmentsLong-termequityinvestmentsincludeequityinvestmentsinsubsidiaries,jointventuresandassociatedenterprises.TheinvesteethattheCompanyisabletoexertsignificantinfluenceisanassociatedenterpriseoftheCompany.
(1)DeterminationofinitialinvestmentcostLong-termequityinvestmentthatformsabusinesscombination:Long-termequityinvestmentobtainedbybusinesscombinationunderthesamecontrol,onthemergerdate,basedonthebookvalueshareofthemergedparty’sowners’equityinthefinalcontroller’sconsolidatedfinancialstatementsasinvestmentcost;Thelong-termequityinvestmentacquiredbyabusinesscombinationshallbetheinvestmentcostofthelong-termequityinvestmentaccordingtothecostofthecombination.Forlong-termequityinvestmentsobtainedbyothermeans:thelong-termequityinvestmentobtainedbypayingcashshallbetheinitialinvestmentcostaccordingtotheactualpurchaseprice;thelong-termequityinvestmentobtainedbyissuingequitysecuritiesshallbetheinitialinvestmentcostofthefairvalueoftheequitysecuritiesissued.
(2)Subsequentmeasurementandprofitandlossconfirmationmethod
Investmentinsubsidiariesisaccountedforusingthecostmethodunlesstheinvestmentmeetstheconditionsforholdingforsale;investmentinassociatesandjointventuresisaccountedforusingtheequitymethod.Forlong-termequityinvestmentsthatareaccountedforusingthecostmethod,inadditiontothecashdividendsorprofitsthathavebeendeclaredbutnotyetincludedintheactualpaymentorconsiderationincludedintheinvestment,thecashdividendsorprofitsdeclaredbytheinvestedentityarerecognisedasinvestmentincomeandrecordedintothecurrentprofitandloss.Forlong-termequityinvestmentsaccountedforusingtheequitymethod,wheretheinitialinvestmentcostisgreaterthanthefairvalueshareoftheinvestee’sidentifiablenetassetsatthetimeofinvestment,theinvestmentcostofthelong-termequityinvestmentisnotadjusted;whentheinitialinvestmentcostislessthantheinvestment,theinvestee‘sIfthefairvalueshareofnetassetsisidentified,thebookvalueofthelong-termequityinvestmentisadjusted,andthedifferenceisincludedinthecurrentprofitandlossoftheinvestment.Whenusingtheequitymethodofaccounting,theinvestmentincomeandothercomprehensiveincomearerecognisedseparatelyaccordingtotheshareofnetprofitandlossandothercomprehensiveincomerealizedbytheinvestedunitthatshouldbeenjoyedorshared,andthebookvalueofthelong-termequityinvestmentisadjustedatthesametime;Thedistributionofprofitsorcashdividendsshouldbecalculatedtoreducethebookvalueoflong-termequityinvestment;theinvestee’sotherchangesinowner’sequityotherthannetprofitandloss,othercomprehensiveincomeandprofitdistribution,adjustthebookvalueoflong-termequityinvestmentandIncludedincapitalreserves(othercapitalreserves).Whenconfirmingtheshareoftheinvestee’snetprofitorloss,basedonthefairvalueoftheinvestee’sidentifiableassetsatthetimeofinvestment,andinaccordancewiththeCompany’saccountingpoliciesandaccountingperiod,thenetprofitoftheinvesteeConfirmaftermakingadjustments.Iftheadditionalinvestmentandotherreasonscanexertsignificantinfluenceontheinvesteeorexercisejointcontrolbutdonotconstitutecontrol,ontheconversiondate,thesumofthefairvalueoftheoriginalequityplustheadditionalinvestmentcostwillbeusedastheinitialaccountingfortheequitymethodcostofinvestment.Iftheoriginalequityisclassifiedasnon-tradingequityinstrumentinvestmentmeasuredatfairvaluewhosechangesareincludedinothercomprehensiveincome,therelevantoriginalandaccumulativechangesinfairvalueincludedinothercomprehensiveincomeshallbetransferredtoretainedearningswhenaccountingbyequitymethod.Ifthejointcontrolorsignificantinfluenceontheinvestedunitislostduetothedisposalofpartoftheequityinvestment,etc.,theremainingequityafterthedisposalshallbechangedtotheAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstrumentsisperformed,andthedifferencebetweenfairvalueandbookvalueisincludedinthecurrentprofitandloss.Othercomprehensiveincomerecognisedbytheoriginalequityinvestmentduetotheequitymethodofaccountingshallbeaccountedforonthesamebasisastheinvestee’sdirectdisposalofrelatedassetsorliabilitieswhentheequitymethodofaccountingisterminated;changesinotherowners‘equityrelatedtotheoriginalequityinvestmentTransfertocurrentprofitandloss.Ifthecontroloftheinvestedunitislostduetothedisposalofpartoftheequityinvestment,iftheremainingequityafterthedisposalcanexercisejointcontrolorexertsignificantinfluenceontheinvestedunit,theequitymethodisusedforaccountingandtheremainingequityistreatedasWhenacquiring,theequitymethodisadoptedforadjustment;iftheremainingequityafterdisposalcannotexercisejointcontrolorexertsignificantinfluenceontheinvestee,theaccountingshallbechangedaccordingtotherelevantprovisionsof“AccountingStandardsforBusinessEnterprisesNo.22-
RecognitionandMeasurementofFinancialInstrumentsThedifferencebetweenthefairvalueandthebookvalueonthedateoflossofcontrolisincludedinthecurrentprofitandloss.Iftheshareholdingratioofthecompanydecreasesduetothecapitalincreaseofotherinvestors,therebylosingcontrolbutbeingabletoexercisejointcontrolorexertsignificantinfluenceontheinvestee,thenewshareholdingratioshallbeusedtoconfirmthatthecompanyshouldenjoythecapitalincreaseoftheinvestee.Thedifferencebetweentheincreaseinshareandtheincreaseintheshareofnetassetsandtheoriginalbookvalueofthelong-termequityinvestmentcorrespondingtothedecreaseintheproportionoftheshareholdingthatshouldbecarriedforwardareincludedinthecurrentprofitandloss;Thatis,adjustmentsaremadeusingtheequitymethodofaccounting.TheunrealizedinternaltransactiongainsandlossesthatoccurbetweentheCompanyandassociatesandjointventuresarecalculatedaccordingtotheshareholdingratioandareattributedtotheCompany,andtheinvestmentgainsandlossesarerecognisedonthebasisofoffset.However,theunrealizedinternaltransactionlossesincurredbytheCompanyandtheinvesteearetheimpairmentlossesofthetransferredassetsandshallnotbeoffset.
(3)DeterminethebasisforjointcontrolandsignificantinfluenceontheinvestedunitJointcontrolreferstothecommoncontrolofanarrangementinaccordancewiththerelevantagreement,andrelatedactivitiesofthearrangementmustbeagreeduponbythepartiessharingcontrolrightsbeforetheycanmakedecisions.Whenjudgingwhetherthereisjointcontrol,firstdeterminewhetherallparticipantsoracombinationofparticipantscollectivelycontrolthearrangement,andsecondlydeterminewhetherthedecision-makingrelatedactivitiesofthearrangementmustbeunanimouslyagreedbytheparticipantswhocollectivelycontrolthearrangement.IfallparticipantsoraCompanyofparticipantsmustactinconcerttodeterminetherelevantactivitiesofanarrangement,itisconsideredthatallparticipantsoraCompanyofparticipantscollectivelycontrolthearrangement;ifthereisacombinationoftwoormoreparticipantscancollectivelyControllinganarrangementdoesnotconstitutejointcontrol.Whenjudgingwhetherthereisjointcontrol,theprotectiverightsenjoyedarenotconsidered.Significantinfluencemeansthattheinvestorhastherighttoparticipateinthedecision-makingofthefinancialandoperatingpoliciesoftheinvestedunit,butcannotcontrolorjointlycontroltheformulationofthesepolicieswithotherparties.Whendeterminingwhetheritcanexertsignificantinfluenceontheinvestedunit,considerthattheinvestordirectlyorindirectlyholdsthevotingsharesoftheinvestedunitandthecurrentexecutablepotentialvotingrightsheldbytheinvestorandotherpartiesareassumedtobeconvertedintotheinvestedunitAftertheequityofthecompany,theimpactincludesthecurrentconvertiblewarrants,stockoptionsandconvertiblecorporatebondsissuedbytheinvestee.WhentheCompanydirectlyorindirectlyownsmorethan20%(including20%)butlessthan50%ofthevotingsharesoftheinvestedunit,itisgenerallyconsideredtohaveasignificantimpactontheinvestedunit,unlessthereisclearevidencethatsuchcircumstancescannotparticipateintheproductionandoperationdecisionsoftheinvestedunit,anddoesnothaveasignificantimpact;whentheCompanyownslessthan20%(excluding)votingrightsoftheinvestedunit,itgenerallydoesnotconsiderittohaveasignificantimpactontheinvestedunitunlessthereisclearevidencethatUnderthesecircumstances,itcanparticipateintheproductionandoperationdecisionsoftheinvestedunitandhaveasignificantimpact.
(4)ImpairmenttestmethodandimpairmentprovisionmethodFortheinvestmentsinsubsidiaries,associatesandjointventures,themethodofaccruingassetimpairmentisshownintheNoteV-22.
15.InvestmentPropertyMeasurementmodelofinvestmentrealestateCostingmethodmeasurementDepreciationoramortizationmethodTheinvestmentrealestatereferstotherealestategainingtherentorcapitalappreciationorboth.Itincludesrentedlanduseright,holdinglanduserighttobetransferredaftertheappreciationandrentedbuilding,etc.Theinvestmentrealestateismeasuredinitiallyaccordingtothecostandwithdrawndepreciationoramortizationasregulationsoffixedassetsorintangibleassets.TheCompanyadoptsthecostmodetoconductthesubsequentmeasurementontheinvestmentrealestate,seetheNoteV-22forthemethodofwithdrawingassetimpairmentprovision.Thedifferencebetweenthedisposalincomeofinvestmentrealestatesales,transfer,scrapordamageafterdeductingitsbookvalueandrelatedtaxesisincludedinthecurrentprofitandloss.
16.FixedAssets
(1)ConditionsforRecognitionTheterm“fixedassets”referstothetangibleassetsthatsimultaneouslypossessthefeaturesasfollows:(a)theyareheldforthesakeofproducingcommodities,renderinglabourservice,rentingorbusinessmanagement;and(b)theirusefullifeisinexcessofonefiscalyear.ThefixedassetsareonlyrecognisedwhentherelevanteconomicbenefitsprobablyflowintheCompanyanditscostcouldbereliablemeasured.ThefixedassetsoftheCompanyareinitiallymeasuredattheactualcostatthetimeofacquisition.ThesubsequentexpendituresrelatedtothefixedassetsshallbeincludedinthecostofthefixedassetswhentheeconomicbenefitsrelatedtothefixedassetsarelikelytoflowintotheCompanyandthecostscanbemeasuredreliably.Thedailyrepairexpensesoffixedassetsthatdonotmeettheconditionsofcapitalizedsubsequentexpendituresoffixedassetsshallbeincludedinthecurrentprofitandlossorthecostofrelevantassetsaccordingtothebeneficiarieswhenincurred.Thebookvalueofthereplacedpartshallbeterminated.
(2)DepreciationMethods
| Category | Method | UsefulLife | SalvageValue(%) | AnnualDeprecation(%) |
| Housesandbuildings | Averagemethodofusefullife | 5-30 | 0-10 | 20.00-3.00 |
| Machineryequipment | Averagemethodofusefullife | 10-18 | 0-10 | 10.00-5.00 |
| Transportationequipment | Averagemethodofusefullife | 5 | 0-10 | 20.00-18.00 |
| Electronicequipmentandothers | Averagemethodofusefullife | 5 | 0-10 | 20.00-18.00 |
(3)RecognitionBasis,PricingandDepreciationMethodofFixedAssetunderFinanceLeaseSeetheNoteV-22fordetails.
(4)Attheendofeachyear,reviewiscarriedoutbytheCompanyfortheservicelife,estimatednetresidualvalueanddepreciationmethodoffixedassets.Ifthereisanydifferencebetweentheexpectedservicelifeandtheoriginalestimatedservicelife,theservicelifeoffixedassetswillbeadjusted;ifthereisanydifferencebetweentheexpectednetresidualvalueandtheoriginalestimatednetresidualvalue,theexpectednetresidualvaluewillbeadjusted
(5)DisposalofFixedAssetsAfixedassetshallbederecognisedwhenitisdisposedoforitisexpectedthatnoeconomicbenefitcanbegeneratedbyusingordisposingofit.Theamountofthedisposalincomeofsales,transfer,scrapordamageofthefixedassetafterdeductingitsbookvalueandrelatedtaxesisincludedinthecurrentprofitandloss.
17.ConstructioninProgressConstructioninprocessismeasuredatactualcost.Actualcostcomprisesconstructioncosts,borrowingcoststhatareeligibleforcapitalizationbeforethefixedassetsbeingreadyfortheirintendedusandotherrelevantcosts.Constructioninprocessistransferredtofixedassetswhentheassetsarereadyfortheirintendeduse.SeethedetailsoftheimpairmentprovisionwithdrawalmethodoftheconstructioninprogresstoNoteV-22.
18.EngineeringMaterialsEngineeringmaterialsoftheCompanyrefertovariousmaterialspreparedforprojectsunderconstruction,includingengineeringmaterials,equipmentnotyetinstalled,toolsandinstrumentspreparedforproduction,etc.Thepurchasedengineeringmaterialswillbemeasuredaccordingtothecost.Thereceivedengineeringmaterialswillbetransferredtotheprojectunderconstruction,andtheremainingengineeringmaterialsafterthecompletionoftheprojectwillbestoredasinventory.PleaserefertoNoteV-22forthemethodofprovisionforimpairmentofassetsforengineeringmaterials.Inthebalancesheet,theendingbalanceofengineeringmaterialsislistedinthe“projectunderconstruction”item.
19.BorrowingCosts
(1)ConfirmationprincipleofCapitalizedBorrowingExpenseTheborrowingexpensesincurredbytheCompany,ifcandirectlybelongtoacquisition,constructionorproductionofassetsmeetingcapitalizationconditions,arecapitalizedandincludedinrelevantassetcost;otherborrowingexpensesareconfirmedasexpenseaccordingtoitsamountatthetimeofoccurrenceandincludedinthecurrentprofitsandlosses.Iftheborrowingexpensesmeetthefollowingconditions,capitalizationstarts:
a)Assetsexpenditurehasoccurred,andassetexpenditureincludestheexpenditureoccurringintheformofpaymentincash,transferringnoncashassetorassuminginterestbearingdebtforacquiring,constructingorproducingtheassetsmeetingcapitalizationconditions;b)Borrowingexpenseshaveoccurred;
c)Theacquisition,constructionorproductionactivitiesrequiredformakingassetsusableorsaleableasintendedhavestarted.
(2)CapitalizationperiodofborrowingexpensesWhentheCompanyacquires,constructsorproducesassets,whichmeetcapitalizationconditionsandreachtheintendedusableorsaleablestatus,theborrowingexpensesstopcapitalization.Theborrowingexpensesthatoccuraftertheassetsmeetingcapitalizationconditionsreachtheintendedusableorsaleablestatusareconfirmedasexpensesaccordingtoitsamountatthetimeofoccurrenceandareincludedinthecurrentprofitsandlosses.Iftheassetsmeetingcapitalconditionsgenerateimproperinterruptioninthecourseofacquisition,constructionorproduction,andtheinterruptiontimecontinuouslyexceedsthreemonths,capitalizationofborrowingexpensessuspends;theborrowingexpensesinthenormalinterruptionperiodarecontinuallycapitalized.
(3)CapitalizationrateofborrowingexpensesandcalculationmethodofcapitalizedamountTheinterestexpensesofspecialborrowingactuallyoccurringinthecurrentperiod,minustheinterestincomeoftheunusedborrowedcapitalobtainedfromdepositinginbankorthegainontemporaryinvestment,arecapitalized;forcommonborrowing,theweightedaverageofassetexpenditureofthepartthatthecumulativeassetexpenditureexceedsspecialborrowingismultipliedbythecapitalizationrateoftheoccupiedcommonborrowingtodeterminecapitalizationamount.Capitalizationrateiscalculatedanddeterminedaccordingtotheweightedaveragerateofcommonborrowing.Intheperiodofcapitalization,theexchangedifferenceofspecialborrowinginforeigncurrencyisfullycapitalized;theexchangedifferenceofspecialborrowinginforeigncurrencyisincludedinthecurrentprofitsandlosses.
20.IntangibleAssetsTheCompany’sintangibleassetsincludelanduserights,softwarelicenses,patents,andothers.Intangibleassetsareinitiallymeasuredatcost,andtheirservicelifeisanalysedanddeterminedwhenintangibleassetsareacquired.Iftheservicelifeofintangibleassetsislimited,theintangibleassetsshallbeamortizedbythemethodthatcanreflecttheexpectedrealizationmethodoftheeconomicbenefitsrelatedtotheassetswithintheexpectedservicelifesincetheyareavailableforuse.Thestraight-linemethodshallbeusedforamortizationifnoexpectedrealizationmethodcanbedeterminedreliably.Intangibleassetswithuncertainservicelifeshallnotbeamortized.Theamortizationmethodofintangibleassetswithlimitedservicelifeisasfollows:
| Category | ServiceLife | AmortizationMethod | Notes |
| Landuseright | Stipulatedinthelandcertificate | Methodofline | |
| Patentuseright | Tenyears | Methodofline | |
| Softwareuserights | Onetothreeyears | Methodofline | |
| Trademarkright | Tenyears | 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:Itisfeasibletechnicallytofinishintangibleassetsforuseorsale;Itisintendedtofinishanduseorselltheintangibleassets;Theusefulnessofmethodsforintangibleassetstogenerateeconomicbenefitsshallbeproved,includingbeingabletoprovethatthereisapotentialmarketfortheproductsmanufacturedbyapplyingtheintangibleassetsorthereisapotentialmarketfortheintangibleassetsitselfortheintangibleassetswillbeusedinternally;Itisabletofinishthedevelopmentoftheintangibleassets,andabletouseorselltheintangibleassets,withthesupportofsufficienttechnologies,financialresourcesandotherresources;Thedevelopmentexpendituresoftheintangibleassetscanbereliablymeasured.Thedevelopmentexpendituresshallberecordedintoprofitorlossforthecurrentperiodwhentheydon’tsatisfythefollowingconditions.TheresearchanddevelopmentprojectoftheCompanywillenterthedevelopmentstageaftermeetingtheaboveconditionsandtheprojectisapprovedandinitiatedthroughtechnicalfeasibilityandeconomicfeasibilitystudy.Thecapitalizedexpenditureinthedevelopmentstageislistedasexpenditurefordevelopmentonthebalancesheet,anditwillbetransferredtointangibleassetsfromthedatewhentheprojectreachestheintendedpurpose.
22.ImpairmentofLong-termAssetsForlongtermequityinvestmentinsubsidiaries,associatedenterprisesandjointventures,investmentrealestatewhichfollow-upmeasurementiscarriedoutbycostpattern,fixedassets,constructioninprogress,right-of-useassets,intangibleassets,businessreputation,etc.(excludinginventory,deferredincometaxassets,financialassets),theimpairmentofassetsshallbedeterminedaccordingtothefollowingmethods:
Onthedateofthebalancesheet,determinationshallbemadetoseewhetherthereisanysignofpossibleimpairmentofassets.Ifthereis,theCompanywillestimateitsrecoverableamountandconductimpairmenttest.Forgoodwill,intangibleassetswithuncertainservicelifeandintangibleassetsthathavenotreachedtheserviceablestateduetobusinessmerger,impairmenttestshallbecarriedouteveryyearregardlessofwhetherthereisanysignofimpairment.
Therecoverableamountisdeterminedaccordingtothenetamountofthefairvalueoftheassetminusthedisposalexpensesandthepresentvalueoftheexpectedfuturecashflowoftheasset,thehigheramountshallprevail.TheCompanyestimatestherecoverableamountonthebasisofasingleasset.Ifitisdifficulttoestimatetherecoverableamountofasingleasset,therecoverableamountoftheassetgroupshallbedeterminedbasedontheassetgrouptowhichtheassetbelongs.Theassetgroupisdeterminedonthebasisofwhetherthemaincashinflowgeneratedbytheassetgroupisindependentofthecashinflowofotherassetsorassetgroups.Whentherecoverableamountofanassetorassetgroupislowerthanitscarryingamount,thegroupwillwritedownitscarryingamounttotherecoverableamount,andthewrittendownamountwillbeincludedinthecurrentprofitandloss,andthecorrespondingassetimpairmentreservewillbeaccrued.Regardingtheimpairmenttestofbusinessreputation,thecarryingamountofbusinessreputationformedbybusinessmergershallbeapportionedtotherelevantassetgroupinareasonablewayfromthedateofpurchase.Ifitisdifficulttoapportiontotherelevantassetgroup,itshallbeapportionedtotherelevantcombinationofassetgroup.Therelevantassetgrouporcombinationofassetgroupsistheonethatcanbenefitfromthesynergyeffectofbusinessmerger,andistheonesmallerthanthereportablesegmentdeterminedbytheCompany.Intheimpairmenttest,ifthereisanysignofimpairmentintheassetgrouporcombinationofassetgroupsrelatedtobusinessreputation,first,impairmenttestshallbecarriedoutontheassetgrouporcombinationofassetgroupsnotcontainingbusinessreputation,tocalculatetherecoverableamountandrecognisethecorrespondingimpairmentloss.Thenimpairmenttestshallbecarriedoutontheassetgrouporcombinationofassetgroupcontainingbusinessreputationtocomparethecarryingamountwiththerecoverableamount.Iftherecoverableamountislowerthanthecarryingamount,theimpairmentlossofbusinessreputationshallberecognised.Oncetheimpairmentlossofassetsisrecognised,itwillnotbereversedinthefutureaccountingperiod.
23.Long-termDeferredExpensesThelong-termexpensestobeamortizedincurredbytheCompanyarevaluedattheactualcostandamortizedaveragelyaccordingtotheexpectedbenefitperiod.Forlong-termexpensestobeamortized,theamortizedvaluethatcannotbenefitthefutureaccountingperiodshallbeincludedinthecurrentprofitandloss.
24.Payroll
(1)ScopeofEmployeeRemunerationPayrollreferstothevariousformsofremunerationorcompensationgivenbyanenterpriseforservicesprovidedbyemployeesorfortheterminationofemploymentrelations.Payrollmainlyincludesshort-termsalary,welfareafterdeparture,demissionwelfare,andotherlong-termstaffwelfare.Benefitsprovidedtoemployees’spouses,children,dependents,survivorsofdeceasedemployees,andotherbeneficiariesalsobelongtothepayroll.Basedonliquidity,payrollispresentedinthebalancesheetundertheitems“payrollpayable”and“long-termpayrollpayable”.
(2)AccountingTreatmentofShort-termCompensationDuringtheaccountingperiodinwhichemployeesprovideservices,theCompanyrecognisestheactualemployeewages,bonuses,socialinsurancepremiumssuchasmedicalinsurancepremiums,
industrialinjuryinsurancepremiums,andmaternityinsurancepremiumsandhousingprovidentfundspaidtoemployeesaccordingtotheprescribedstandardsandproportionsasliabilitiesandincludedtheminthecurrentprofitandlossorrelatedassetcosts.
(3)AccountingTreatmentoftheWelfareafterDepartureThepost-employmentbenefitplanincludesadefinedcontributionplanandadefinedbenefitplan.Amongthem,thedefinedcontributionplanreferstothepost-employmentbenefitplanthattheenterprisenolongerassumesfurtherpaymentobligationsafterthefixedfundhaspaidafixedfee;thedefinedbenefitplanreferstothepost-employmentbenefitplanotherthantheestablishedcontributionplan.SetwithdrawalplanThesetcontributionplanincludesbasicpensioninsuranceandunemploymentinsurance.Duringtheaccountingperiodinwhichemployeesprovideservices,theamountofdepositpayablecalculatedaccordingtothesetwithdrawalplanisrecognisedasaliabilityandincludedinthecurrentprofitandlossorrelatedassetcosts.
(4)AccountingTreatmentoftheDemissionWelfareTheCompanyrelievesthelabourrelationwiththeemployeesbeforetheduedateofthelabourcontactsorputsforwardtheadviceofprovidingthecompensationforurgingtheemployeesvolunteeredtoreceivethedownsizingandwhentheCompanycouldnotunilaterallywithdrawthedemissionwelfareowningtotherelievingplanofthelabourrelationorthedownsizingadvice,shouldconfirmtheliabilitiesoftheemployees’salaryfromthedemissionwelfareontheearlierdaybetweenthecostconfirmedbytheCompanyandthecostrelatedtothereorganizationofthepaymentofthedemissionwelfareandincludeswhichinthecurrentgainsandlosses.
(5)AccountingTreatmentoftheWelfareofOtherLong-termStaffsOtherlong-termemployeebenefitsprovidedbytheCompanytoemployeesthatmeettheconditionsofdefinedcontributionplansshallbehandledinaccordancewiththeabove-mentionedrelevantprovisionsondefinedcontributionplans.Thoseinlinewiththedefinedbenefitplanshallbehandledinaccordancewiththeabove-mentionedrelevantprovisionsonthedefinedbenefitplan.However,thepartof“changescausedbyremeasuringthenetliabilitiesornetassetsofthedefinedbenefitplan”inthesalarycostofrelevantemployeesshallbeincludedinthecurrentprofitandlossortherelevantassetcost.
25.ProvisionsIftheobligationrelatedtocontingencymeetsthefollowingconditionsatthesametime,theCompanywillrecogniseitasaprovision.
(1)TheobligationisthecurrentobligationassumedbytheCompany;
(2)TheperformanceoftheobligationislikelytocauseanoutflowofeconomicbenefitsoftheCompany;
(3)Theamountoftheobligationcanbemeasuredreliably.Theprovisionsareinitiallymeasuredinaccordancewiththeoptimalestimateofthenecessaryexpendituresforthefulfilmentofthecurrentobligation,withfactorssuchasrisks,uncertaintyandthetimevalueofmoneyrelatedtocontingenciestakenintoconsiderationcomprehensively.Wherethetimevalueofmoneyhasasignificantimpact,thebestestimateisdeterminedbydiscountingthe
relevantfuturecashoutflow.TheCompanyre-checksthebookvalueoftheprovisionsonthebalancesheetdateandadjuststhebookvaluetoreflectthecurrentbestestimate.Ifallorpartoftheexpenditurerequiredtosettlerecognisedprovisionsisexpectedtobecompensatedbyathirdpartyorotherparties,theamountofcompensationshallberecognisedseparatelyasanassetonlywhenitissubstantiallycertainthatitwillbereceived.Therecognisedamountofcompensationshallnotexceedthebookvalueoftherecognisedliabilities.
26.Share-basedPaymentsandEquityInstruments
(1)Categoryofshare-basedpaymentTheshare-basedpaymentsoftheCompanyaredividedintoequity-settledsharepaymentsandcash-settledsharepayments.
(2)MethodofdeterminingthefairvalueofequityinstrumentsTheCompanyshalldeterminethefairvalueofequityinstrumentssuchasoptionsgrantedinactivemarketsaccordingtothequotationsinactivemarkets.Forgrantedequityinstrumentssuchasoptionswithoutactivemarkets,thefairvalueisdeterminedbyoptionpricingmodel.Thefollowingfactorsshallbeconsideredfortheselectedoptionpricingmodel:a)Exercisepriceoftheoption;b)Expirationdateoftheoption;c)Currentpriceoftheobjectshares;d)Expectedfluctuationrateofstockprice;e)Estimateddividendsofshares;f)Risk-freeinterestratewithintheoptionterm.
(3)GroundforrecognizingtheoptimalestimationoffeasiblerightequityinstrumentsOneachbalancesheetdateduringthewaitingperiod,theCompanyshallmaketheoptimalestimatebasedonsubsequentinformationsuchasthelatestchangeinthenumberofemployeeswithfeasiblerights,andrevisethenumberofequityinstrumentsfortheestimatedfeasiblerights.Onthefeasiblerightdate,thefinalestimatednumberoffeasiblerightequityinstrumentsshallbethesameastheactualnumberoffeasiblerights.
(4)Relevantaccountingtreatmentforimplementing,modifyingandterminatingshare-basedpaymentplanEquity-settledshare-basedpaymentsshallbemeasuredatthefairvalueoftheequityinstrumentsgrantedtoemployees.Wheretherightisexercisedimmediatelyafterthegrant,relevantcostsorfeesshallbeincludedinaccordancewiththefairvalueoftheequityinstrumentsonthegrantdatetoaccordinglyincreasethecapitalreserve.Wheretherightisexerciseduponthecompletionoftheservicesduringthewaitingperiodortheachievementofthespecifiedresultconditions,theservicesobtainedinthecurrentperiodshallbeincludedintherelevantcostsorfeesandthecapitalreserveaccordingtothefairvalueoftheequityinstrumentsonthegrantdatebasedontheoptimalestimateofthenumberoffeasiblerightequityinstrumentsoneachbalancesheetdateduringthewaitingperiod.Therecognisedrelatedcostsorfeesandtotalowner’sequityafterthefeasiblerightdateshallnotbeadjustedanymore.WhentheCompanymodifiesashare-basedpaymentplan,ifthemodificationincreasesthefairvalueoftheequityinstrumentsgranted,theincreaseintheservicesacquiredshallberecognisedaccordinglyaccordingtotheincreaseinthefairvalueoftheequityinstruments;ifthemodificationincreasesthenumberofequityinstrumentsgranted,thefairvalueoftheincreasedequityinstrumentsshallberecognisedaccordinglyastheincreaseintheservicesacquired.Theincreaseinthefairvalueoftheequityinstrumentsreferstothedifferencebetweenthefairvaluesoftheequityinstrumentsbeforeandafterthemodificationonthemodificationdate.Ifthemodificationreducesthetotalfairvalueoftheshare-basedpaymentoranyothermethodnotconducivetotheemployeesisadoptedtomodifythetermsandconditionsoftheshare-basedpaymentplan,theaccounting
treatmentoftheservicesacquiredwouldcontinue,asifsuchchangehadneveroccurred,unlesstheCompanycancelssomeorallofthegrantedequityinstruments.Duringthewaitingperiod,ifthegrantedequityinstrumentiscancelled(Excludingthosecancelledduetofailuretomeetnon-market-basedvestingconditions,suchasserviceconditionsornon-market-basedperformanceconditions.),theCompanyshalltreatthecancelledequityinstrumentasanacceleratedexercise,immediatelyincludetheleftamounttoberecognisedduringthewaitingperiodinthecurrentprofitandloss,andrecognisethecapitalreserveatthesametime.Wheretheemployeeorotherpartycanchoosetomeetthenon-feasiblerightconditionbutfailsduringthewaitingperiod,itshallbetreatedasthecancellationofthegrantedequityinstrument.
(5)RestrictedSharesIntheequityincentiveplan,theCompanygrantsrestrictedstockstotheincentivepersonnel,whofirstlysubscribethestocks.Iftheunlockingconditionsspecifiedintheequityincentiveplanarenotmet,theCompanywillrepurchasethestocksatthepreviouslyagreedprice.Wheretherestrictedstocksissuedtotheemployeeshasgonethroughcapitalincreaseproceduressuchasregistrationinaccordancewithrelevantprovisions,theCompanyshall,onthegrantdate,recognisethesharecapitalandthecapitalreserveinconformitywiththesubscriptionpaymentreceivedfromtheemployees.Meanwhile,itshallrecognisethetreasurystocksandotherpayableswithrespecttorepurchaseobligations.
27.RevenueAccountingpoliciesadoptedfortherecognitionandmeasurementofrevenuedisclosedbytypeofbusiness
(1)GeneralprincipleTheCompanyrecognisesrevenuewhenithasfulfilleditscontractperformanceobligationinacontract,namely,whenthecustomerobtainsthecontrolovertherelatedcommodityorservice.Ifacontractcontainstwoormoreperformanceobligations,theCompanyallocatestransactionpricetosingleperformanceobligationsonthecontractcommencementdateaccordingtotherelativeratioofseparatepriceofgoodsorservicescommittedbysingleperformanceobligation,andincomeismeasuredaccordingtothetransactionpriceallocatedtosingleperformanceobligation.Whenmeetingoneofthefollowingconditions,theCompanybelongstoperformanceofcontractperformingobligationsinaperiod,orotherwise,theCompanybelongstoperformanceofcontractperformingobligationsatapointoftime:
a)WhiletheCompanyisperformingthecontract,thecustomeracquiresandconsumestheeconomicbenefitarisingfromperformancebytheCompany.b)ThecustomercancontrolthegoodsinconstructioninthecourseofperformancebytheCompany.c)ThegoodsoutputtedinthecourseofperformancebytheCompanyhaveirreplaceablepurpose,andtheCompanyhastherighttocollectionofmoneyforthecompletedperformancepartcumulativeuptonowinthewholetermofcontract.Fortheperformanceobligationperformedinaperiod,theCompanyconfirmsincomeaccordingtotheperformanceprogressinsuchperiod.Whentheperformanceprogresscannotbereasonablydetermined,ifthecostthattheCompanyhasincurredisexpectedtobecompensated,incomeisconfirmedaccordingtothecostamountthathasoccurred,untiltheperformanceprogresscanbereasonablydetermined.
Fortheperformanceobligationperformedatapointoftime,incomeisconfirmedatthepointoftimewhenthecustomeracquiresthecontrolrighttorelevantgoodsorservices.Whenitjudgeswhetherthecustomerhasacquiredthecontrolrighttothegoodsorservices,theCompanywillconsiderthefollowingindications:
a)TheCompanyenjoysthecurrentcollectionrighttothegoodsorservices,i.e.thecustomerundertakescurrentpaymentobligationtothegoods.b)TheCompanyhastransferredthelegalownershipofthegoodstothecustomer,thatis,thecustomerhasownedthelegalownershipofthegoods.c)TheCompanyhastransferredthekindofthegoodstothecustomer,namely,thecustomerhaspossessedthegoodinkind.d)TheCompanyhastransferredthemajorrisksandremunerationontheownershipofthegoods,i.e.thecustomerhasacquiredthemajorrisksandremunerationontheownershipofthegoods.e)Thecustomerhasacceptedthegoodsorservices.f)Otherindicationsshowingthatthecustomerhasacquiredthecontrolrighttothegoods.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.DifferencesinmethodsfortherecognitionandmeasurementofrevenuecausedbydifferentbusinessmodelsforthesametypeofbusinessNotapplicable
28.ContractCostsContractcostincludestheincrementalcostincurredforacquiringcontractandcontractperformancecost.TheincrementalcostincurredforacquiringcontractreferstothecostthatwillnotoccuriftheCompanyhasnotacquiredcontract(forexample,salescommission).Ifthecostisexpectedtobe
recovered,theCompanyregardsitascontractacquiringcostandconfirmsitasanasset.TheexpensesincurredbytheCompanyforacquiringcontract,otherthantheincrementalcostexpectedtoberecovered,areincludedinthecurrentprofitsandlossesatthetimeofoccurrence.Ifthecostincurredforperformanceofcontractdoesnotbelongtoinventoryandotherscopeofothercorporateaccountingstandardsandmeetsthefollowingconditions,theCompanywillregarditascontractperformancecostandconfirmitasanasset:
a)Thecostisdirectlyrelatedtoacopyofcontractcurrentlyacquiredorexpectedtobeacquired,includingdirectlabour,directmaterials,manufactureexpenses(orsimilarexpenses),costdeterminedtobeundertakenbythecustomerandothercostincurredduetothecontract;b)ThecostincreasestheresourcesoftheCompanythatwillbeusedforperformanceofcontractobligationsinthefuture;c)Thecostisexpectedtoberecovered.Theassetsconfirmedbythecontractacquiringcostandtheassetsconfirmedbythecontractperformancecost(“assetsrelatedtocontractcost”)areamortizedaccordingtothesamebasisasconfirmationofgoodsorserviceincomerelatedtotheassetandareincludedinthecurrentprofitsandlosses.Iftheamortizationtermdoesnotexceedoneyear,itwillbeincludedinthecurrentprofitsandlossesatthetimeofoccurrence.Whenthebookvalueofanassetrelatedtocontractcostishigherthanthedifferencebetweenthefollowingtwoitems,theCompanyaccruesprovisionforimpairmenttotheexcessivepartandconfirmsitasimpairmentloss:
a)TheremainingconsiderationthattheCompanyexpectstoacquirefromtransferofgoodsorservicesrelatedtotheasset;b)Thecostthatwilloccurfortransferofsuchrelatedgoodsorservicesasestimated.
29.GovernmentGrantsGovernmentgrantsarerecognisedwhentheymeettheconditionsattachedtogovernmentgrantsandwhentheycanbereceived.Governmentgrantsformonetaryassetsshallbemeasuredaccordingtotheamountreceivedorreceivable.Governmentgrantsfornon-monetaryassetsshallbemeasuredbyfairvalue.AssetrelatedgovernmentgrantsrefertothegovernmentgrantsobtainedbytheCompanyforacquisitionandconstructionorotherformsoflong-termassets.Inaddition,theyaregovernmentgrantsrelatedtoincome.Regardingthegovernmentgrantsthatthegovernmentdocumentdoesnotspecifytheobjectofsubsidyandcanformlong-termassets,thepartofgovernmentsubsidycorrespondingtotheassetvalueshallberegardedastheasset-relatedgovernmentsubsidyandtherestshallberegardedasincome-relatedgovernmentsubsidy.Ifitisdifficulttodistinguish,thegovernmentsubsidyshallberegardedastheincome-relatedgovernmentsubsidy.Thegovernmentgrantsrelatedtoassetsshallberecognisedasthedeferredincome,whichshallbeincludedintheprofitandlossininstalmentinareasonableandsystematicwaywithintheservicelifeoftherelevantassets.Income-relatedgovernmentgrantswhichareusedtocompensatetherelevantcostsorlossesincurredshallbeincludedinthecurrentprofitandloss.Thoseusedtocompensatetherelevantcostsorlossesinthelaterperiodshallbeincludedinthedeferredincome,andshallbeincludedinthecurrentprofitandlossduringtherecognitionperiodoftherelevant
costsorlosses.Thegovernmentgrantsmeasuredaccordingtothenominalamountshallbedirectlyincludedinthecurrentprofitandloss.ThesamemethodisadoptedforthesameorsimilargovernmentsubsidybusinessesoftheCompany.Governmentgrantsrelatedtodailyactivitiesshallbeincludedinotherincomesaccordingtotheessenceofbusinesstransactions.Governmentgrantsirrelevanttodailyactivitiesareincludedinnon-businessincome.Whentherecognisedgovernmentgrantsneedtobereturned,andareusedtooffsetthecarryingvalueofrelatedassetswheninitiallyrecognised,thecarryingvalueoftheassetsshallbeadjusted;thebookbalanceofrelevantdeferredincomeshallbeoffsetifthereisabalanceofrelevantdeferredincome,andtheexcesspartshallbeincludedinthecurrentprofitandloss.Otherwise,itshallbedirectlyincludedinthecurrentprofitandloss.Regardingtheinterestsubsidyofthepolicypreferentialloanobtained,iftheMinistryofFinanceallocatestheinterestsubsidytotheloanbank,theactualreceivedloanamountshallbetakenastheentryvalueoftheloan,andtheloancostshallbecalculatedaccordingtotheloanprincipalandthepolicypreferentialinterestrate.IftheMinistryofFinanceallocatestheinterestsubsidydirectlytotheCompany,theinterestsubsidywilloffsettheborrowingcosts.
30.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilitiesIncometaxincludescurrentincometaxanddeferredincometax.Allshallbeincludedinthecurrentprofitandlossasincometaxexpenseexcepttheadjustmentbusinessreputationarisingfrombusinessmerger,orthedeferredincometaxrelatedtothetransactionsoreventsdirectlyincludedintheowner’sequityisincludedintheowner’sequity.Pursuanttothetemporarydifferencebetweenthecarryingamountofassetsandliabilitiesonthedateofbalancesheetandthetaxbasis,theCompanyrecognisesthedeferredincometaxbybalancesheetliabilitymethod.Foralltaxabletemporarydifferences,relateddeferredincometaxliabilitiesarerecognised,unlessthetaxabletemporarydifferencesaregeneratedinthefollowingtransactions:
(1)Theinitialrecognitionofbusinessreputationortheinitialrecognitionofassetsorliabilitiesarisingfromtransactionswiththefollowingcharacteristics:Thetransactionisnotabusinessmerger,anddoesnotaffecttheaccountingprofitortaxableincomewhenitoccurs(Excludingtransactionsthatinitiallyrecognisedassetsandliabilitiesresultinginequaltaxabletemporarydifferencesanddeductibletemporarydifferences.);
(2)Regardingthetaxabletemporarydifferencerelatedtotheinvestmentofsubsidiaries,jointventuresandassociatedenterprises,thetimeofreversalofthetemporarydifferencecanbecontrolledandthetemporarydifferenceisunlikelytobereversedintheforeseeablefuture.Fordeductibletemporarydifferences,deductiblelossesandtaxcreditsthatcanbecarriedforwardinsubsequentyears,theCompanyislikelytoobtainthefuturetaxableincomeasthelimittooffsetthedeductibletemporarydifferences,deductiblelossesandtaxcredits,inwhichwaytorecognisethedeferredincometaxassetsarisingfromthedeductibletemporarydifferences,deductiblelossesandtaxcredits,unlessthedeductibletemporarydifferencesaregeneratedinthefollowingtransactions:
(1)Thetransactionisnotabusinessmerger,anddoesnotaffecttheaccountingprofitnortaxableincomewhenitoccurs(Excludingtransactionsthatinitiallyrecognisedassetsandliabilitiesresultinginequaltaxabletemporarydifferencesanddeductibletemporarydifferences.);
(2)Thecorrespondingdeferredincometaxassetsshallberecognisedifthedeductibletemporarydifferencesrelatedtotheinvestmentofsubsidiaries,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)AsthelesseeOnthecommencementdateoftheleaseterm,theCompanyrecognisestheright-of-useassetsandleaseliabilitiesforallleases,exceptforshort-termleasesandlow-valueassetleaseswithsimplifiedtreatment.Foraccountingpoliciesfortheright-of-useassets,seeNoteV-32.Leaseliabilitiesareinitiallymeasuredinlinewiththeleasepaymentsnotyetpaidonthecommencementdateoftheleasetermusingthepresentvaluecalculatedbytheinterestrateimplicitinlease.Iftheinterestrateimplicitinleasecannotbedetermined,theincrementalborrowingrateshallbeusedasthediscountrate.Leasepaymentsinclude:Fixedpaymentandsubstantialfixedpayment,andtherelevantamountafterdeductingtheleaseincentiveifany;variableleasepaymentsdependingonindexorratio;exercisepriceofthepurchasedoption,providedthatthelesseereasonablydeterminesthattheoptionwillbeexercised;theamounttobepaidfortheexerciseoftheleaseterminationoptions,providedthattheleasetermreflectsthatthelesseewillexercisetheoptionstoterminatethelease;andestimatedpaymentsduetotheguaranteedresidualvalue
providedbythelessee.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)AsthelessorWhentheCompanyisalessor,itshallrecogniseleasesthatsubstantiallytransferallrisksandremunerationrelatedtotheownershipofassetsasfinanceleases,andleasesotherthanfinanceleasesasoperatingleases.FinancialleaseInafinancelease,theCompanyrecognisesthenetleaseinvestmentasthebookvalueoffinanceleasereceivablesonthecommencementdateoftheleaseterm.Thenetleaseinvestmentisthesumoftheunguaranteedresidualvalueandthepresentvalueofleasereceivablesnotyetreceivedonthecommencementdateoftheleasetermattheinterestrateimplicitinlease.TheCompanycalculatesandconfirmstheinterestincomeatafixedperiodicinterestrateineachperiodintheleaseterm.
Variableleasepaymentsobtainedthatarenotincludedinthenetleaseinvestmentformeasurement,wheretheCompanyisthelessor,areincludedintheprofitorlossofthecurrentperiodwhenactuallyincurred.AccountingtreatmentshallbeconductedforthederecognitionandimpairmentoffinanceleasereceivablesinaccordancewiththeprovisionsoftheAccountingStandardforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstrumentsandtheAccountingStandardforBusinessEnterprisesNo.23-TransferofFinancialAssets.OperatingleasesTheCompanyshallrecognisethecurrentprofitandlossoftherentoftheoperatingleaseineachperiodoftheleasetermbythestraight-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”referstotherightoftheCompanyaslesseetousetheleasedassetsduringtheleaseterm.Atthestartdateoftheleaseterm,theCompanyinitiallymeasurestheright-of-useassetsatcost.Thecostincludes:theinitialmeasurementamountofleaseobligations;theleasepaymentamountpaidonorpriortotheinceptionofthelease(lesstherelatedamountofleaseincentivesalreadyenjoyedifany);theinitialdirectcostincurredbythelessee;andtheanticipatedcostofdismantlingandremovingtheleaseholdproperty,restoringthesitewheretheleaseholdpropertyislocated,orbringingtheleaseholdpropertybacktothestateagreeduponintheleaseterms.Asthelessee,theCompanyshallrecogniseandmeasurethecostofdemolitionandrestorationinaccordancewiththe
AccountingStandardsforBusinessEnterprisesNo.13-Contingencies.Subsequentadjustmentsaremadeforanyre-measurementoftheleaseliabilities.
(2)Depreciationmethodofright-of-useassetsTheCompanyusesthestraight-linemethodfordepreciation.WhereitcanbereasonablycertainthattheCompany,thelessee,canobtainownershipoftheleasedassetsattheexpiryoftheleaseterm,theleasedassetsaredepreciatedovertheresidualservicelife.IftheCompanycannotreasonablydeterminethatitcanacquiretheownershipofunderlyingassetsupontheexpirationoftheleaseterm,thedepreciationofsuchunderlyingassetsisrecognisedduringtheshorterperiodbetweentheleasetermandtheservicelifeoftheunderlyingassets.
(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”andthenberecognisedasfixedassetswhenthesafetyprojectiscompletedandreachestheintendedavailablestatus.Theaforesaidfixedassetswillnotbedepreciatedasaccruedinthefutureperiod.
34.RepurchaseofSharesBeforethesharesrepurchasedbytheCompanyarecancelledortransferred,theyaremanagedastreasuryshares,andallexpendituresfortherepurchaseofsharesaretransferredtothecostoftreasuryshares.Considerationandtransactioncostspaidinsharerepurchasereduceshareholders’equity.Whenbuyingback,transferringorcancellingsharesintheCompany,noprofitsorlossesarerecognised.Thetransferofinventorysharesshallbecreditedtothecapitalreserveonthebasisofthedifferencebetweentheamountactuallyreceivedandthecarryingamountofthetreasurystock.Writeoffsurplusreservesandundistributedprofitsifcapitalreservesareinsufficienttooffset.Write-offoftreasurystockscanreducesharesinparwithparvalueandnumberofwrite-outstocks.Thecapitalreserveisoffsetbasedonthedifferencebetweenbookbalanceandfacevalueofcancelledtreasurystocks.Writeoffsurplusreservesandundistributedprofitsifcapitalreservesareinsufficienttooffset.
35.MaterialAccountingJudgmentsandEstimatesTheCompanyevaluatestheimportantaccountingestimatesandkeyassumptionsadoptedonanongoingbasis,basedonhistoricalexperienceandotherfactors,includingreasonableexpectationsoffutureevents.Importantaccountingestimatesandcriticalassumptionsthathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfiscalyeararelistedasfollows:
ClassificationoffinancialassetsThesignificantjudgmentsinvolvedwhentheCompanydeterminestheclassificationoffinancialassetsincludeanalysisofbusinessmodelsandcontractualcashflowcharacteristics.TheCompanydeterminesthebusinessmodelformanagingfinancialassetsatthelevelofthefinancialassetportfolio,takingintoaccountfactorssuchastheapproachofevaluatingandreportingtheperformanceoffinancialassetstokeymanagementpersonnel,therisksaffectingtheperformanceoffinancialassetsandthemannerinwhichtheyaremanaged,andwayinwhichtherelevantbusinessmanagementpersonnelarecompensated.WhentheCompanyevaluateswhetherthecontractualcashflowsoffinancialassetsareconsistentwiththebasiclendingarrangements,itmakesthefollowingmainjudgments:whetherthetimedistributionoramountoftheprincipalmaychangeduringthedurationduetoearlyrepayment;whethertheinterestisonlyIncludestimevalueofmoney,creditrisk,otherfundamentallendingrisksandconsiderationagainstcostsandprofits.Forexample,whethertheamountofearlyrepaymentreflectsonlytheoutstandingprincipalandinterestbasedontheoutstandingprincipal,aswellasreasonablecompensationpaidforearlyterminationofthecontract.MeasurementofexpectedcreditlossesofaccountsreceivableTheCompanycalculatestheexpectedcreditlossofaccountsreceivableusingtheexposuretodefaultriskofaccountsreceivableandtheexpectedcreditlossratio,anddeterminestheexpectedcreditlossratiobasedontheprobabilityofdefaultandthedefaultlossratio.Whendeterminingtheexpectedcreditlossratio,theCompanyusesdatasuchasinternalhistoricalcreditlossexperienceandadjustshistoricaldatatotakeintoaccountcurrentconditionsandforward-lookinginformation.Whenconsideringforward-lookinginformation,theCompanyusesindicatorssuchastheriskofeconomicdownturnandchangesintheexternalmarketenvironment,technologicalenvironmentandcustomerprofile.TheCompanyregularlymonitorsandreviewstheassumptionsrelatedtothecalculationofexpectedcreditlosses.GoodwillimpairmentWeshallassesswhetherthereisimpairmentofgoodwillatleastannually.Thisrequiresestimatingtheusevalueoftheassetgrouptowhichgoodwillhasbeenassigned.Whenestimatingtheusevalue,theCompanyshallestimatethefuturecashflowsfromtheassetgroupandselecttheappropriatediscountratetocalculatethepresentvalueoffuturecashflowsatthesametime.DeferredincometaxassetsTotheextentthatitisprobablethatsufficienttaxableprofitwillbeavailabletooffsetthelosses,theCompanyrecognisesdeferredincometaxassetsforallunusedtaxlosses.ThisrequirestheCompany’smanagementtousemanyjudgmentstoestimatethetimingandamountoffuturetaxableprofits,takingintoaccounttaxplanningstrategies,soastodeterminetheamountofdeferredincometaxassetstoberecognised.Determinationoffairvalueofunlistedequityinvestment
Thefairvalueofunlistedequityinvestmentistheexpectedfuturecashflowsdiscountedatthecurrentdiscountrateforitemswithsimilartermsandriskcharacteristics.SuchvaluationrequirestheCompanytoestimateexpectedfuturecashflowsanddiscountratesandisthereforesubjecttouncertainty.Underlimitedcircumstances,iftheinformationusedtodeterminefairvalueisinsufficient,oriftherangeofpossibleestimatesoffairvalueiswideandthecostrepresentsthebestestimateoffairvaluewithinthatrange,thecostmayrepresentitsappropriateestimateoffairvaluewithinthatrangeofdistribution.
36.ChangesinMainAccountingPoliciesandEstimates
(1)SignificantChangesinAccountingPolicies
□Applicable?Notapplicable
(2)SignificantChangesinAccountingEstimates
□Applicable?NotapplicableVITaxation
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% |
| LufengCompanyLimited | 15% |
| LulianNewMaterials | 15% |
| LuThaiHongKong | 16.50% |
| LuqunTextile | 25% |
| XinshengPower | 25% |
| ShanghaiLuthai | 20% |
| LujiaImport&Export | 20% |
| ZhishuConsulting | 20% |
| LuThaiOccupationalTrainingSchool | 0% |
| BanyangMountainVilla | 20% |
| HuilinInternational | 15% |
| TianyiApparel | 0% |
| VACL | 11% |
2.TaxPreferenceInaccordancewiththeNoticeforAnnouncingtheFirstBatchofHi-techEnterpriseIdentificationListofShandongProvincein2023withreferenceNo.LuKeZi[2024]4,theCompanywasidentifiedasahi-techenterprise,andthecertificateissuingdatewas29November2023;themajority-ownedsubsidiaryLuFengCompanyLimitedwasidentifiedasahi-techenterprise,andthecertificateissuingdatewas29November2023.InaccordancewiththeNoticeforAnnouncingHi-techEnterpriseListofShandongProvincein2022,themajority-ownedsubsidiaryLulianNewMaterialswasidentifiedasahi-techenterprise,andthecertificateissuingdatewas12December
2022.Therefore,inaccordancewithArticle28oftheEnterpriseIncomeTaxLawofthePeople’sRepublicofChinaandtheAnnouncementoftheStateAdministrationofTaxationonIssuesConcerningtheImplementationofPreferentialIncomeTaxPoliciesforHigh-techEnterprises(AnnouncementNo.24[2017]oftheStateAdministrationofTaxation),theapplicableenterpriseincometaxrateshallbe15%.Thewholly-ownedsubsidiaries,includingShanghaiLuThai,ZhishuConsulting,BanyangVilla,andLujiaImportandExporthavebeenrecognisedassmall,low-profitenterprises.AccordingtotheAnnouncementoftheMinistryofFinanceandtheStateTaxationAdministrationonPreferentialIncomeTaxPoliciesforSmall,Low-profitEnterprisesandPrivatelyorIndividually-ownedBusinesses(AnnouncementNo.6[2023]oftheMinistryofFinanceandtheStateTaxationAdministration)andAnnouncementoftheMinistryofFinanceandtheStateTaxationAdministrationonFurtherImplementingthePreferentialIncomeTaxPoliciesforMicroandSmallEnterprises(AnnouncementNo.13[2022]oftheMinistryofFinanceandtheStateTaxationAdministration),theportionoftheannualtaxableincomeofsmall,low-profitenterprisesnotexceedingRMB3millionshallbeincludedinthetaxableincomeatareducedrateof25%,andtheenterpriseincometaxshallbepaidatthetaxrateof20%.Thewholly-ownedsubsidiary,LuThaiVocationalTrainingSchool,hasbeenrecognisedasanon-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,TianyiApparel,enjoysathree-yearcorporateincometaxexemptionstartingfromtheoperatingyear,inaccordancewiththeMyanmarInvestmentLawissuedbytheMyanmarParliament.Aftergraceperiod,enterpriseincometaxratewasof22%.2024isthefirstyearofthetaxexemptionperiod.Thewholly-ownedsubsidiary,HuilinInternational,whichwasregisteredintheHainanFreeTradePortandoperatesintheencouragedindustry,shallpayenterpriseincometaxatareducedtaxrateof15%between1January2020and31December2024,accordingtotheAnnouncementoftheMinistryofFinanceandtheStateTaxationAdministrationonthePreferentialIncomeTaxPoliciesforEnterprisesRegisteredintheHainanFreeTradePort(AnnouncementNo.31[2020]oftheMinistryofFinanceandtheStateTaxationAdministration).VII.NotestoMainItemsofConsolidatedFinancialStatements
1.MonetaryAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Cashonhand | 4,283,695.11 | 2,633,018.72 |
| Bankdeposits | 2,051,573,093.26 | 1,280,487,534.58 |
| Othermonetaryfunds | 275,131,494.73 | |
| Total | 2,055,856,788.37 | 1,558,252,048.03 |
| Ofwhich:totalamountdepositedoverseas | 293,656,210.45 | 271,126,295.17 |
Othernotes:
Asat31December2024,therestrictedcashamountedtoRMB0.ThebankdepositsincludeaccruedinterestofRMB10,960,046.31.
2.TradingFinancialAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Financialassetsatfairvaluethroughprofitorloss | 693,972,672.64 | 723,800,275.39 |
| Ofwhich: | ||
| Investmentindebtinstruments | 230,874,092.14 | 203,706,725.51 |
| Equityinstrumentinvestment | 462,622,130.31 | 509,832,518.35 |
| Derivativefinancialassets | 476,450.19 | 10,261,031.53 |
| Ofwhich: | ||
| Total | 693,972,672.64 | 723,800,275.39 |
3.NotesReceivable
(1)NotesReceivableListedbyCategory
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Bankacceptancebills | 50,959,990.35 | 99,642,708.67 |
| Tradeacceptancenotes | 380,000.00 | |
| Total | 51,339,990.35 | 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: | ||||||||||
| Notesreceivableofbaddebtprovisionwithdrawnbygroups | 51,359,990.35 | 100.00% | 20,000.00 | 0.04% | 51,339,990.35 | 99,642,708.67 | 100.00% | 99,642,708.67 | ||
| Ofwhich: | ||||||||||
| Commercialacceptancebills | 400,000.00 | 0.78% | 20,000.00 | 5.00% | 380,000.00 | |||||
| Bankacceptancebillswithlowcreditratings | 50,959,990.35 | 99.22% | 50,959,990.35 | 99,642,708.67 | 100.00% | 99,642,708.67 | ||||
| Total | 51,359,990.35 | 100.00% | 20,000.00 | 51,339,990.35 | 99,642,708.67 | 100.00% | 99,642,708.67 | |||
Provisionforbaddebtsonaportfoliobasis:Bankacceptancebillswithlowcreditratings
Unit:RMB
| Name | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion | |
| Bankacceptancebillswithlowcreditratings | 50,959,990.35 | ||
| Total | 50,959,990.35 | ||
Notestothedeterminationbasisforthegroup:
Basedonthefactthatthelikelihoodoflossonthenotesreceivableisminimalandtheamountofexpectedcreditlossesonthenotesreceivableisnotmaterial,theCompanyhasnotprovidedforbaddebtsonthenotesreceivable.Baddebtprovisionforcommercialacceptancebillsismadeonaportfoliobasis,consideringtheagingandcreditriskcharacteristicsofthebills.
Unit:RMB
| Name | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion | |
| Commercialacceptancebills | 400,000.00 | 20,000.00 | 5.00% |
| Total | 400,000.00 | 20,000.00 | |
Notestothedeterminationbasisforthegroup:
Ifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofnotesreceivable:
□Applicable?Notapplicable
(3)BadDebtProvisionWithdrawal,ReversedorRecoveredintheReportingPeriodWithdrawalofbaddebtprovision:
Unit:RMB
| Category | Beginningbalance | Changesinthecurrentperiod | Endingbalance | |||
| Withdrawal | Reversedorrecovered | Verification | Other | |||
| Commercialacceptancebills | 20,000.00 | 20,000.00 | ||||
| Total | 20,000.00 | 20,000.00 | ||||
Including:SignificantamountofprovisionforbaddebtsrecoveredorreclassifiedintheReportingPeriod:
□Applicable?Notapplicable
(4)NotesReceivablewhichHadEndorsedbytheCompanyorhadDiscountedandhadnotDueontheBalanceSheetDateatthePeriod-end
Unit:RMB
| Item | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
| Bankacceptancebills | 34,463,775.21 | |
| Total | 34,463,775.21 |
4.AccountsReceivable
(1)DisclosurebyAging
Unit:RMB
| Aging | Endingbalance | Beginningcarryingamount |
| Withinoneyear(including1year) | 904,143,884.57 | 878,555,822.01 |
| Onetotwoyears | 2,598,409.10 | 3,129,451.20 |
| Twotothreeyears | 767,071.40 | 143,033.80 |
| Morethanthreeyears | 435,318.77 | 7,777,701.22 |
| Threetofouryears | 206,818.00 | 3,717,366.06 |
| Fourtofiveyears | 195,961.82 | 4,037,499.15 |
| Over5years | 32,538.95 | 22,836.01 |
| Total | 907,944,683.84 | 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 | 1,380,525.86 | 0.15% | 1,380,525.86 | 100.00% | 5,481,360.70 | 0.62% | 5,481,360.70 | 100.00% | ||
| Ofwhich: | ||||||||||
| Accountsreceivablewithdrawalofbaddebtprovisionofbygroup | 906,564,157.98 | 99.85% | 57,395,618.71 | 6.33% | 849,168,539.27 | 884,124,647.53 | 99.38% | 57,656,962.75 | 6.52% | 826,467,684.78 |
| Ofwhich: | ||||||||||
| Group1:Undueaccounts(L/C) | 164,066,967.38 | 18.07% | 164,066,967.38 | 158,223,236.80 | 17.79% | 158,223,236.80 | ||||
| Undueaccounts(creditinsuranceinsured) | 108,041,036.63 | 11.90% | 1,134,430.94 | 1.05% | 106,906,605.69 | 137,080,593.18 | 15.41% | 1,439,346.21 | 1.05% | 135,641,246.97 |
| Undueaccounts(nocreditinsurance) | 489,845,177.53 | 53.95% | 24,492,258.89 | 5.00% | 465,352,918.64 | 447,692,502.26 | 50.32% | 22,384,625.09 | 5.00% | 425,307,877.17 |
| Overdueaccounts(creditinsuranceinsured) | 42,135,584.31 | 4.64% | 6,615,286.73 | 15.70% | 35,520,297.58 | 47,975,300.48 | 5.39% | 7,532,122.16 | 15.70% | 40,443,178.32 |
| Overdueaccounts(nocreditinsurance) | 102,475,392.13 | 11.29% | 25,153,642.15 | 24.55% | 77,321,749.98 | 93,153,014.81 | 10.47% | 26,300,869.29 | 28.23% | 66,852,145.52 |
| Total | 907,944,683.84 | 100.00% | 58,776,144.57 | 6.47% | 849,168,539.27 | 889,606,008.23 | 100.00% | 63,138,323.45 | 7.10% | 826,467,684.78 |
Baddebtprovisionseparatelyaccrued:2024
Unit:RMB
| Name | Beginningbalance | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | Withdrawalproportion | Reasonforwithdraw | |
| Customer1 | 2,751,489.34 | 2,751,489.34 | 1,380,525.86 | 1,380,525.86 | 100.00% | Customerinfinancialdifficulty |
| Customer2 | 2,729,871.36 | 2,729,871.36 | ||||
| Total | 5,481,360.70 | 5,481,360.70 | 1,380,525.86 | 1,380,525.86 | ||
Ifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivable.
□Applicable?Notapplicable
(3)BadDebtProvisionWithdrawal,ReversedorRecoveredintheReportingPeriodWithdrawalofbaddebtprovision:
Unit:RMB
| Category | Beginningbalance | Changesinthecurrentperiod | Endingbalance | |||
| Withdrawal | Reversedorrecovered | Verification | Other | |||
| Baddebtprovision | 63,138,323.45 | 2,992,091.75 | 7,354,270.63 | 58,776,144.57 | ||
| Total | 63,138,323.45 | 2,992,091.75 | 7,354,270.63 | 58,776,144.57 | ||
(4)AccountsReceivableWritten-offinCurrentPeriod
Unit:RMB
| Item | Written-offamount |
| Written-offaccountsreceivable | 7,354,270.63 |
Notestoverificationofaccountsreceivable:
Therewerenowrite-offsofsignificantaccountsreceivable.
(5)Top5oftheEndingBalanceoftheAccountsReceivableandtheContractAssetsCollectedaccordingtoArrearsParty
Unit:RMB
| Nameofentity | Endingbalanceofaccountsreceivable | Endingbalanceofcontractassets | Endingbalanceofaccountsreceivableandcontractassets | Proportiontototalendingbalanceofaccountsreceivableandcontractassets | Endingbalanceofbaddebtprovisionofaccountsreceivableandimpairmentprovisionforcontractassets |
| Customer1 | 69,454,344.81 | 69,454,344.81 | 7.65% | 60,655.12 | |
| Customer2 | 39,391,513.18 | 39,391,513.18 | 4.34% | 845,465.98 | |
| Customer3 | 35,537,927.65 | 35,537,927.65 | 3.91% | 8,422,488.85 | |
| Customer4 | 29,274,136.33 | 29,274,136.33 | 3.22% | 1,463,706.81 | |
| Customer5 | 27,576,176.52 | 27,576,176.52 | 3.04% | 1,489,797.05 | |
| Total | 201,234,098.49 | 201,234,098.49 | 22.16% | 12,282,113.81 |
5.AccountsReceivableFinancing
(1)AccountsReceivableFinancingListedbyCategory
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Notesreceivable | 10,234,905.61 | 18,336,324.55 |
| Less:Othercomprehensiveincome-fairvaluechange | -50,005.02 | -88,118.79 |
| Total | 10,184,900.59 | 18,248,205.76 |
(2)OtherNotesTheCompanyandsomesubsidiaries,basedontheirdailycashmanagementneeds,discountandendorseaportionofthebankacceptancebills.Therefore,thebankacceptancebillswithhighcreditratingsfromtheCompanyandthesesubsidiariesareclassifiedasfinancialassetsmeasuredatfairvaluewithchangesrecognisedinothercomprehensiveincome.TherewasnobankacceptancebillforwhichbaddebtprovisionaccruedseparatelyintheCompany.OnDecember31,2024,theCompanybelievedthattherewasnosignificantcreditriskinthebankacceptancebillheldbytheCompany,andnosignificantlosscausedbybankdefaults.
(1)Attheendoftheperiod,theCompanyhasnopledgedreceivables
(2)Attheendoftheperiod,theCompanyhasendorsedordiscountedreceivablesthatarenotyetdue.
| Category | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
| Bankacceptancebills | 154,967,910.84 | |
| Tradeacceptancenotes | ||
| Total | 154,967,910.84 |
Thebankacceptancebillusedfordiscountisacceptedbyabankwithhighcreditgrade,thecreditriskanddeferredpaymentriskarelow,andtheinterestrateriskrelatedtothebillhasbeentransferredtothebank.Itcanbejudgedthatthemainriskandrewardontheownershipofthebillhavebeentransferred,sothebankacceptancebillwasderecognisedattheperiod-end.
6.OtherReceivables
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Otherreceivables | 23,107,489.38 | 22,168,807.43 |
| Total | 23,107,489.38 | 22,168,807.43 |
(1)OtherAccountsReceivable
1)OtherReceivablesClassifiedbyNature
Unit:RMB
| Nature | Endingbalance | Beginningcarryingamount |
| Exportrebates | 4,399,746.28 | 3,798,857.69 |
| VATtobereturned | 7,514,820.14 | 7,283,733.09 |
| Paymentonbehalf | 8,666,645.96 | 8,669,608.81 |
| Guaranteedepositandcashdeposit | 2,181,386.82 | 1,613,961.78 |
| Borrowingsandpettycash | 1,255,511.54 | 1,962,604.48 |
| Other | 5,311,251.41 | 5,078,173.43 |
| Total | 29,329,362.15 | 28,406,939.28 |
2)DisclosurebyAging
Unit:RMB
| Aging | Endingbalance | Beginningcarryingamount |
| Withinoneyear(including1year) | 18,125,208.20 | 17,090,150.86 |
| Onetotwoyears | 1,153,509.15 | 7,685,279.13 |
| Twotothreeyears | 6,434,852.90 | 177,000.00 |
| Morethanthreeyears | 3,615,791.90 | 3,454,509.29 |
| Threetofouryears | 166,000.00 | 35,020.00 |
| Fourtofiveyears | 846.87 | 78,300.00 |
| Over5years | 3,448,945.03 | 3,341,189.29 |
| Total | 29,329,362.15 | 28,406,939.28 |
3)WithdrawalofBadDebtProvisionBaddebtprovisioninthefirststageattheperiod-end:
| Category | Carryingamount | Expectedrateofcreditlossesinthenext12months(%) | Baddebtprovision | Carryingvalue | Reason |
| Baddebtprovisionseparatelyaccrued | |||||
| Withdrawalofbaddebtprovisionbygroup | 18,670,016.05 | 5.00 | 933,500.80 | 17,736,515.25 | |
| Taxreceivable | 4,399,746.28 | 5.00 | 219,987.32 | 4,179,758.96 | Notpastdue |
| Securitydepositandmarginreceivable | 2,181,386.82 | 5.00 | 109,069.34 | 2,072,317.48 | Notpastdue |
| VATtobereturned | 879,184.02 | 5.00 | 43,959.20 | 835,224.82 | Notpastdue |
| Otherreceivables | 11,209,698.93 | 5.00 | 560,484.94 | 10,649,213.99 | Notpastdue |
| Total | 18,670,016.05 | 5.00 | 933,500.80 | 17,736,515.25 |
Baddebtprovisioninthesecondstageattheperiod-end:
| Category | Carryingamount | Expectedcreditlossratefortheentireduration(%) | Baddebtprovision | Carryingvalue | Reason |
| Baddebtprovisionseparatelyaccrued | |||||
| Withdrawalofbaddebtprovisionbygroup | 10,496,334.05 | 48.83 | 5,125,359.92 | 5,370,974.13 | |
| VATtobereturned | 6,635,636.12 | 48.83 | 3,240,181.12 | 3,395,455.00 | Overdue |
| Otherreceivables | 3,860,697.93 | 48.83 | 1,885,178.80 | 1,975,519.13 | Overdue |
| Total | 10,496,334.05 | 48.83 | 5,125,359.92 | 5,370,974.13 |
Baddebtprovisioninthethirdstageattheperiod-end:
| Category | Carryingamount | Expectedcreditlossratefortheentire | Baddebtprovision | Carryingvalue | Reason |
| duration(%) | |||||
| Baddebtprovisionseparatelyaccrued | 163,012.05 | 100.00 | 163,012.05 | ||
| Customer1 | 163,012.05 | 100.00 | 163,012.05 | Customerinfinancialdifficulty | |
| Total | 163,012.05 | 100.00 | 163,012.05 |
Baddebtprovisioninthefirststageattheendofthepreviousyear:
| Category | Carryingamount | Expectedrateofcreditlossesinthenext12months(%) | Baddebtprovision | Carryingvalue | Reason |
| Baddebtprovisionseparatelyaccrued | |||||
| Withdrawalofbaddebtprovisionbygroup | 17,605,269.82 | 5.00 | 880,263.44 | 16,725,006.38 | |
| Taxreceivable | 3,798,857.69 | 5.00 | 189,942.89 | 3,608,914.80 | Notpastdue |
| Securitydepositandmarginreceivable | 1,613,961.78 | 5.00 | 80,698.09 | 1,533,263.69 | Notpastdue |
| VATtobereturned | 303,857.45 | 5.00 | 15,192.87 | 288,664.58 | Notpastdue |
| Otherreceivables | 11,888,592.90 | 5.00 | 594,429.59 | 11,294,163.31 | Notpastdue |
| Total | 17,605,269.82 | 5.00 | 880,263.44 | 16,725,006.38 |
Baddebtprovisioninthesecondstageattheendofthepreviousyear:
| Category | Carryingamount | Expectedcreditlossratefortheentireduration(%) | Baddebtprovision | Carryingvalue | Reason |
| Baddebtprovisionseparatelyaccrued | |||||
| Withdrawalofbaddebtprovisionbygroup | 10,638,657.41 | 48.83 | 5,194,856.36 | 5,443,801.05 | |
| VATtobereturned | 6,979,875.64 | 48.83 | 3,408,273.28 | 3,571,602.36 | Overdue |
| Otherreceivables | 3,658,781.77 | 48.83 | 1,786,583.08 | 1,872,198.69 | Overdue |
| Total | 10,638,657.41 | 48.83 | 5,194,856.36 | 5,443,801.05 |
Baddebtprovisioninthethirdstageattheendofthepreviousyear:
| Category | Carryingamount | Expectedcreditlossratefortheentireduration(%) | Baddebtprovision | Carryingvalue | Reason |
| Baddebtprovisionseparatelyaccrued | 163,012.05 | 100.00 | 163,012.05 | ||
| Customer1 | 163,012.05 | 100.00 | 163,012.05 | Customerinfinancialdifficulty | |
| Total | 163,012.05 | 100.00 | 163,012.05 |
4)BadDebtProvisionWithdrawn,ReversedorRecoveredintheCurrentPeriodWithdrawalofbaddebtprovision:
Unit:RMB
| Category | Beginningbalance | Changesinthecurrentperiod | Endingbalance | |||
| Withdrawal | Reversedorrecovered | Charged-off/Written-off | Other | |||
| Expectedcreditlossofthenext12monthsatthefirststage | 880,263.44 | 65,071.04 | 11,833.68 | 933,500.80 | ||
| Expectedlossintheduration(creditimpairmentnotoccurred)atthesecondstage | 5,194,856.36 | 69,496.44 | 5,125,359.92 | |||
| Expectedlossintheduration(creditimpairmentoccurred)atthethirdstage | 163,012.05 | 163,012.05 | ||||
| Total | 6,238,131.85 | 65,071.04 | 69,496.44 | 11,833.68 | 6,221,872.77 | |
5)Top5OtherAccountsReceivableinEndingBalanceCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameofentity | Nature | Endingbalance | Aging | Proportiontototalendingbalanceofotherreceivables% | Endingbalanceofbaddebtprovision |
| Customer1 | RebateofVAT | 7,514,820.14 | Within1year,1to2years,2to3yearsandover3years | 25.62% | 3,284,140.33 |
| Customer2 | Paymentonbehalf | 5,902,639.81 | Within1year | 20.13% | 295,131.99 |
| Customer3 | Exportrebates | 4,399,746.28 | Within1year | 15.00% | 219,987.31 |
| Customer4 | Paymentonbehalf | 1,425,253.29 | Within1year | 4.86% | 71,262.66 |
| Customer5 | Paymentonbehalf | 1,173,027.75 | Within1year | 4.00% | 58,651.39 |
| Total | 20,415,487.27 | 69.61% | 3,929,173.68 |
7.Prepayment
(1)PrepaymentListedbyAgingAnalysis
Unit:RMB
| Aging | Endingbalance | Beginningbalance | ||
| Amount | Proportion | Amount | Proportion | |
| Within1year | 94,018,468.42 | 99.66% | 51,843,880.46 | 99.96% |
| Onetotwoyears | 321,877.26 | 0.34% | 17,437.82 | 0.04% |
| Morethanthreeyears | 2,129.28 | |||
| Total | 94,340,345.68 | 51,863,447.56 | ||
Notesofthereasonsoftheprepaymentagingover1yearwithsignificantamountbutfailedsettledintime:
Therewerenosignificantprepaymentsagedoveroneyearduringtheyear.
(2)Top5PrepaymentinEndingBalanceCollectedaccordingtothePrepaymentTargetOthernotes:TheadvancestosuppliersfromthetopfiveofprepaidpartiesclassifiedbasedontheendingbalancetotalsRMB85,110,945.93inthecurrentperiod,accountingfor90.22%ofthetotalendingbalanceoftheadvancestosuppliers.
8.InventoryWhethertheCompanyneedstocomplywiththedisclosurerequirementsfortherealestateindustryNot
(1)CategoryofInventory
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreservesofinventoriesorimpairmentprovisionforcontractperformancecosts | Carryingvalue | Carryingamount | Depreciationreservesofinventoriesorimpairmentprovisionforcontractperformancecosts | Carryingvalue | |
| Rawmaterials | 806,501,875.49 | 55,650,999.99 | 750,850,875.50 | 961,742,257.63 | 48,846,493.37 | 912,895,764.26 |
| Work-in-progress | 520,394,109.82 | 6,229,881.12 | 514,164,228.70 | 504,407,562.92 | 11,183,192.80 | 493,224,370.12 |
| Inventorygoods | 952,987,895.46 | 208,856,231.77 | 744,131,663.69 | 886,717,966.10 | 181,209,030.54 | 705,508,935.56 |
| Commissionedproducts | 10,737,638.41 | 10,737,638.41 | 12,510,504.76 | 12,510,504.76 | ||
| Total | 2,290,621,519.18 | 270,737,112.88 | 2,019,884,406.30 | 2,365,378,291.41 | 241,238,716.71 | 2,124,139,574.70 |
(2)FallingPriceReservesofInventoryandImpairmentReservesforContractPerformanceCosts
Unit:RMB
| Item | Beginningbalance | Increasedamountofthecurrentperiod | Decreasedamountforthecurrentperiod | Endingbalance | ||
| Withdrawal | Other | Transferred-backorcharged-off | Other | |||
| Rawmaterials | 48,846,493.37 | 9,933,886.27 | 3,129,379.65 | 55,650,999.99 | ||
| Work-in-progress | 11,183,192.80 | 4,953,311.68 | 6,229,881.12 | |||
| Inventorygoods | 181,209,030.54 | 72,555,066.14 | 44,907,864.91 | 208,856,231.77 | ||
| Total | 241,238,716.71 | 82,488,952.41 | 52,990,556.24 | 270,737,112.88 | ||
Item
| Item | Thespecificbasisfordeterminingthenetrealizablevalue | Reasonsforcharge-off/write-offofinventoryfallingpricereservesinthecurrentperiod |
| Rawmaterials | Estimatedsellingpricedeductstheestimatedsellingexpenseandtherelevanttaxes | Sales |
| Inventorygoods | Estimatedsellingpricedeductstheestimatedsellingexpenseandtherelevanttaxes | Sales |
| Work-in-progress | Estimatedsellingpriceoffinishedgoodsdeductsthecostestimateduntilcompletion,estimatedsalestaxesandrelevanttaxes | Sales |
9.Currentportionofnon-currentassets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Debtinvestmentduewithinoneyear | 150,000,000.00 | |
| Interestpayableofinvestmentindebtobligations | 4,176,585.64 | |
| Total | 154,176,585.64 |
(1)InvestmentsinDebtObligationsDuewithinOneYear?Applicable□Notapplicable
1)Significantdebtinvestmentsmaturingwithinoneyearattheendoftheperiod
Unit:RMB
| Item | Parvalue | Couponrate | Maturity | Actualinterestrate | Overdueprincipal | ||
| Endingbalance | Beginningbalance | Endingbalance | Beginningbalance | ||||
| Returnvoucher | 150,000,000.00 | 3.00% | 22December2025 | ||||
| Total | 150,000,000.00 | ||||||
(2)OtherInvestmentsinDebtObligationsDuewithinOneYear
□Applicable?Notapplicable
10.OtherCurrentAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Othertax | 8,592,405.88 | 801,750.09 |
| Prepaidincometax | 37,101.68 | 2,774,815.63 |
| Prepaidothertaxes | 205,457.78 | 3,453,982.70 |
| Convertiblebrokenlotfund | 199,662.42 | 199,680.79 |
| Depositforrecognisance | 49,999,919.97 | 137,881,884.82 |
| Total | 59,034,547.73 | 145,112,114.03 |
11.Long-termEquityInvestment
Unit:RMB
| Investee | Beginningbalance(carryingvalue) | Beginningbalanceofdepreciationreserve | Increase/decrease | Endingbalance(carryingvalue) | Endingbalanceofdepreciationreserve | |||||||
| Additionalinvestment | Reducedinvestment | Gainsandlossesrecognisedundertheequitymethod | Adjustmentofothercomprehensiveincome | Changesofotherequity | Cashbonusorprofitsannouncedtoissue | Withdrawalofimpairmentprovision | Other | |||||
| I.Jointventures | ||||||||||||
| II.Associatedenterprises | ||||||||||||
| NingboMeishamBondedPortAreaHaohong | 48,257,699.71 | -16,932,009.13 | 31,325,690.58 | |||||||||
| EquityInvestmentPartnership(L.P)(hereinafterreferredtoas“HaohongInvestment”) | |||||
| NingboHaoyingEquityInvestmentPartnership(L.P)(hereinafterreferredtoas“HaoyingInvestment”) | 95,279,780.06 | -6,521,199.35 | 88,758,580.71 | ||
| Subtotal | 143,537,479.77 | -23,453,208.48 | 120,084,271.29 | ||
| Total | 143,537,479.77 | -23,453,208.48 | 120,084,271.29 |
Therecoverableamountisdeterminedbasedonthenetamountofthefairvalueminusdisposalcosts
□Applicable?NotapplicableTherecoverableamountisdeterminedbythepresentvalueoftheforecastedfuturecashflow.
□Applicable?Notapplicable
12.OtherNon-currentFinancialAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Equityinstrumentinvestment | 70,800,000.00 | 76,750,000.00 |
| Financialassetsassignedmeasuredbyfairvalueandthechangesbeincludedinthecurrentgainsandlosses | 12,000,000.00 | 12,000,000.00 |
| Total | 82,800,000.00 | 88,750,000.00 |
13.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 | 902,642.30 | 902,642.30 | |
| (1)Withdrawaloramortization | 902,642.30 | 902,642.30 |
3.Decreasedamountforthecurrentperiod
| 3.Decreasedamountforthecurrentperiod | |||
| (1)Disposal | |||
| (2)Othertransfer | |||
| 4.Endingbalance | 15,033,124.49 | 15,033,124.49 | |
| III.Depreciationreserves | |||
| 1.Beginningbalance | |||
| 2.Increasedamountforthecurrentperiod | |||
| (1)Withdrawal | |||
| 3.Decreasedamountforthecurrentperiod | |||
| (1)Disposal | |||
| (2)Othertransfer | |||
| 4.Endingbalance | |||
| IV.Carryingvalue | |||
| 1.Endingcarryingvalue | 18,675,533.63 | 18,675,533.63 | |
| 2.Beginningcarryingvalue | 19,578,175.93 | 19,578,175.93 |
Therecoverableamountisdeterminedbasedonthenetamountofthefairvalueminusdisposalcosts
□Applicable?NotapplicableTherecoverableamountisdeterminedbythepresentvalueoftheforecastedfuturecashflow.
□Applicable?Notapplicable
(2)InvestmentPropertyAdoptingtheFairValueMeasurementMode
□Applicable?Notapplicable
14.FixedAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Fixedassets | 6,053,755,987.08 | 5,597,692,505.07 |
| Liquidationoffixedassets | ||
| Total | 6,053,755,987.08 | 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 | 431,603,027.12 | 556,519,470.71 | 6,071,045.62 | 18,029,952.11 | 1,012,223,495.56 |
| (1)Purchase | 17,050.66 | 536,700,439.47 | 5,877,573.44 | 17,909,841.29 | 560,504,904.86 |
| (2)Transferfromconstructioninprogress | 415,431,437.32 | 2,803,693.83 | 418,235,131.15 | ||
| (3)Businesscombinationincrease | |||||
| (4)Otherincrease | 16,154,539.14 | 17,015,337.41 | 193,472.18 | 120,110.82 | 33,483,459.55 |
| 3.Decreasedamountforthecurrentperiod | 49,606,894.55 | 55,372,088.11 | 3,920,827.69 | 2,498,436.34 | 111,398,246.69 |
| (1)Disposalorscrap | 14,230,252.41 | 53,606,237.41 | 3,920,827.69 | 2,498,436.34 | 74,255,753.85 |
| (2)Transferfromconstructioninprogress | 35,376,642.14 | 1,765,850.70 | 37,142,492.84 | ||
| (3)Transferfrominvestmentproperties | |||||
| (4)Otherdecrease | |||||
| 4.Endingbalance | 4,153,405,489.18 | 7,999,497,701.26 | 57,627,023.34 | 146,359,617.54 | 12,356,889,831.32 |
| 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 | 136,146,707.14 | 343,134,282.19 | 3,693,397.15 | 6,770,393.19 | 489,744,779.67 |
| (1)Withdrawal | 132,593,176.28 | 334,960,656.12 | 3,551,712.53 | 6,673,488.94 | 477,779,033.87 |
| (2)OtherIncreases | 3,553,530.86 | 8,173,626.07 | 141,684.62 | 96,904.25 | 11,965,745.80 |
| 3.Decreasedamountforthecurrentperiod | 27,812,556.33 | 37,462,666.70 | 3,488,784.11 | 2,165,771.19 | 70,929,778.33 |
| (1)Disposalorscrap | 11,751,599.38 | 37,462,666.70 | 3,488,784.11 | 2,165,771.19 | 54,868,821.38 |
| (2)Transferfromconstructioninprogress | 16,060,956.95 | 16,060,956.95 | |||
| (3)Transferfrominvestmentproperties | |||||
| (4)Otherdecrease | |||||
| 4.Endingbalance | 1,451,849,601.15 | 4,617,189,627.38 | 43,584,449.86 | 121,401,888.54 | 6,234,025,566.93 |
| III.Depreciationreserves | |||||
| 1.Beginning | 429,416.16 | 42,691,703.55 | 5,671.30 | 34,720.78 | 43,161,511.79 |
| balance | |||||
| 2.Increasedamountforthecurrentperiod | 25,386,028.32 | 7,115,964.65 | 95,867.51 | 32,597,860.48 | |
| (1)Withdrawal | 25,386,028.32 | 7,115,964.65 | 95,867.51 | 32,597,860.48 | |
| (2)OtherIncreases | |||||
| 3.Decreasedamountforthecurrentperiod | 6,650,364.96 | 730.00 | 6,651,094.96 | ||
| (1)Disposalorscrap | 6,650,364.96 | 730.00 | 6,651,094.96 | ||
| (2)Otherdecrease | |||||
| 4.Endingbalance | 25,815,444.48 | 43,157,303.24 | 5,671.30 | 129,858.29 | 69,108,277.31 |
| IV.Carryingvalue | |||||
| 1.Endingcarryingvalue | 2,675,740,443.55 | 3,339,150,770.64 | 14,036,902.18 | 24,827,870.71 | 6,053,755,987.08 |
| 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 |
| Housesandbuildings | 5,549,546.45 |
(3)FixedAssetsFailedtoAccomplishCertificationofProperty
Unit:RMB
| Item | Carryingvalue | Reason |
| Lufengweavingdyegreyyarnwarehouse | 11,376,516.78 | Undertherelevantcertificateproceduresofacceptance,measurement,examinationbytherealestatetradingcentreandotherdepartments |
| LuThaiTextileWarehouse01,02 | 5,953,194.32 | Thesameasabove |
| LulianNewMaterialsYarnWarehouse | 7,549,747.37 | Thesameasabove |
| Overseasproductionbasefactory | 1,042,686,246.55 | Tobesubmittedtotherelevantdepartmentforprocessinguponcompletion |
Othernotes:
Otherincreasesareduetotheforeignexchangetranslationdifferencesofoverseassubsidiaries.TheCompanyhasnofixedassetsthataremortgagedorguaranteed.
15.ConstructioninProgress
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Constructioninprogress | 77,047,650.62 | 383,113,337.09 |
| Engineeringmaterials | 17,979,058.75 | 485,383,541.32 |
| Total | 95,026,709.37 | 868,496,878.41 |
(1)ListofConstructioninProgress
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Productionlineprojectofhigh-gradefabrics(PhaseI) | 23,298,916.44 | 23,298,916.44 | 375,973,427.49 | 375,973,427.49 | ||
| ReformprojectofXinshengThermalPower | 1,824,455.78 | 1,824,455.78 | 4,783,916.38 | 4,783,916.38 | ||
| Othersporadicprojects | 51,924,278.40 | 51,924,278.40 | 2,355,993.22 | 2,355,993.22 | ||
| Total | 77,047,650.62 | 77,047,650.62 | 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 | 57,080,609.60 | 409,755,120.65 | 23,298,916.44 | 107.80% | 99.00 | 11,598,184.16 | Publicofferingfundandself-raisedfund | |||
| ReformprojectofXinshengThermalPower | 9,200,000.00 | 4,783,916.38 | 2,537,476.05 | 5,496,936.65 | 1,824,455.78 | 94.40% | 95.00 | Other | ||||
| Othersporadicprojects | 2,355,993.22 | 52,551,359.03 | 2,983,073.85 | 51,924,278.40 | Other | |||||||
| Total | 474,000,000.00 | 383,113,337.09 | 112,169,444.68 | 418,235,131.15 | 77,047,650.62 | 11,598,184.16 |
(3)ImpairmentTestofConstructioninProgress
□Applicable?Notapplicable
(4)EngineeringMaterials
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Specialmaterials | 871,768.43 | 871,768.43 | ||||
| Specialequipmenttobeinstalled | 17,979,058.75 | 17,979,058.75 | 484,511,772.89 | 484,511,772.89 | ||
| Total | 17,979,058.75 | 17,979,058.75 | 485,383,541.32 | 485,383,541.32 | ||
16.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 | 20,306,315.10 | 13,684,124.37 | 33,990,439.47 |
| (1)Rent | 20,246,757.65 | 7,535,013.28 | 27,781,770.93 |
| (2)LeaseLiabilitiesAdjustment | |||
| (3)OtherIncrease | 59,557.45 | 6,149,111.09 | 6,208,668.54 |
| 3.Decreasedamountforthecurrentperiod | 535,874.95 | 535,874.95 | |
| (1)Subleaseisafinanciallease | |||
| (2)Transferorholdforsale | |||
| (3)Maturity | 535,874.95 | 535,874.95 | |
| (4)Otherdecrease | |||
| 4.Endingbalance | 77,622,142.84 | 466,180,291.02 | 543,802,433.86 |
| II.Accumulativedepreciation | |||
| 1.Beginningbalance | 14,623,691.51 | 32,497,758.62 | 47,121,450.13 |
| 2.Increasedamountforthecurrentperiod | 11,481,964.66 | 15,495,965.83 | 26,977,930.49 |
| (1)Withdrawal | 11,434,329.96 | 15,157,850.85 | 26,592,180.81 |
| (2)OtherIncreases | 47,634.70 | 338,114.98 | 385,749.68 |
| 3.Decreasedamountforthecurrentperiod | 535,874.95 | 535,874.95 | |
| (1)Disposal | |||
| (1)Subleaseisafinanciallease | |||
| (2)Transferorholdforsale | |||
| (3)Maturity | 535,874.95 | 535,874.95 | |
| (4)Otherdecrease | |||
| 4.Endingbalance | 25,569,781.22 | 47,993,724.45 | 73,563,505.67 |
| III.Depreciationreserves | |||
| 1.Beginningbalance | |||
| 2.Increasedamountforthecurrentperiod | |||
| (1)Withdrawal | |||
| (2)OtherIncreases | |||
| 3.Decreasedamountforthecurrentperiod | |||
| (1)Disposal | |||
| (1)Subleaseisafinanciallease | |||
| (2)Transferorholdforsale | |||
| (3)Maturity |
| (4)Otherdecrease | |||
| 4.Endingbalance | |||
| IV.Carryingvalue | |||
| 1.Endingcarryingvalue | 52,052,361.62 | 418,186,566.57 | 470,238,928.19 |
| 2.Beginningcarryingvalue | 43,228,011.18 | 419,998,408.03 | 463,226,419.21 |
(2)ImpairmentTestofRight-of-useAssets
□Applicable?NotapplicableOthernotes:
TheCompanyrecognisesleaseexpensesrelatedtoshort-termleasesandleasesoflow-valueassets,asdetailedinNoteVII-64.
17.IntangibleAssets
(1)ListofIntangibleAssets
Unit:RMB
| Item | Landuseright | Patentright | Non-patenttechnologies | Softwareuserights | Trademarkright | Total |
| I.Originalcarryingvalue | ||||||
| 1.Beginningbalance | 470,338,494.00 | 409,550.00 | 2,137,122.72 | 472,885,166.72 | ||
| 2.Increasedamountforthecurrentperiod | 512,519.79 | 283,018.87 | 795,538.66 | |||
| (1)Purchase | 510,185.35 | 283,018.87 | 793,204.22 | |||
| (2)InternalR&D | ||||||
| (3)Businesscombinationincrease | ||||||
| (4)Otherincrease | 2,334.44 | 2,334.44 | ||||
| 3.Decreasedamountforthecurrentperiod | 385,389.39 | 385,389.39 | ||||
| (1)Disposal | 385,389.39 | 385,389.39 | ||||
| (2)Invalidandrecognitionterminatedportion | ||||||
| (3)Otherdecrease | ||||||
| 4.Endingbalance | 470,338,494.00 | 409,550.00 | 2,264,253.12 | 283,018.87 | 473,295,315.99 | |
| II.Accumulatedamortization | ||||||
| 1.Beginningbalance | 128,418,319.87 | 112,626.36 | 1,006,341.07 | 129,537,287.30 | ||
| 2.Increasedamountforthecurrentperiod | 10,096,399.25 | 40,955.04 | 614,734.46 | 6,581.83 | 10,758,670.58 | |
| (1)Withdrawal | 10,096,399.25 | 40,955.04 | 613,500.16 | 6,581.83 | 10,757,436.28 | |
| (2)OtherIncreases | 1,234.30 | 1,234.30 | ||||
| 3.Decreasedamountforthecurrentperiod | 385,389.39 | 385,389.39 | ||||
| (1)Disposal | 385,389.39 | 385,389.39 | ||||
| (2)Invalidandrecognitionterminatedportion | ||||||
| (3)Otherdecrease |
| 4.Endingbalance | 138,514,719.12 | 153,581.40 | 1,235,686.14 | 6,581.83 | 139,910,568.49 | |
| III.Depreciationreserves | ||||||
| 1.Beginningbalance | ||||||
| 2.Increasedamountforthecurrentperiod | ||||||
| (1)Withdrawal | ||||||
| (2)OtherIncreases | ||||||
| 3.Decreasedamountforthecurrentperiod | ||||||
| (1)Disposal | ||||||
| (2)Otherdecrease | ||||||
| 4.Endingbalance | ||||||
| IV.Carryingvalue | ||||||
| 1.Endingcarryingvalue | 331,823,774.88 | 255,968.60 | 1,028,566.98 | 276,437.04 | 333,384,747.50 | |
| 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
18.DevelopmentCosts
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance |
| R&Dofproducts | 206,820,921.71 | 206,820,921.71 | ||
| Total | 206,820,921.71 | 206,820,921.71 |
Fordetails,refertoNoteVIII.ResearchandDevelopmentExpenditurewithrestrictedownershiporuseright.
19.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 | ||||
20.Long-termPrepaidExpense
Unit:RMB
| Item | Beginningbalance | Increasedamountofthecurrentperiod | Amortizationamountofthecurrentperiod | Otherdecreasedamount | Endingbalance |
| Decorationfee | 1,694,425.58 | 5,690,170.07 | 1,825,724.78 | 5,558,870.87 | |
| Technicalservicecharges | 44,220.80 | 35,376.60 | 8,844.20 | ||
| Otherprepaidexpense | 77,192.22 | 121,041.91 | 131,388.93 | 66,845.20 | |
| Total | 1,815,838.60 | 5,811,211.98 | 1,992,490.31 | 5,634,560.27 |
21.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities
(1)DeferredIncomeTaxAssetsHadNotBeenOff-set
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||
| Deductibletemporarydifference | Deferredincometaxassets | Deductibletemporarydifference | Deferredincometaxassets | |
| Provisionforimpairmentofassets | 252,197,942.77 | 41,534,310.54 | 230,431,449.02 | 36,029,044.63 |
| Internalunrealizedprofit | 105,336,586.06 | 13,724,860.21 | 107,060,058.13 | 14,691,107.03 |
| Deductiblelosses | 46,878,524.12 | 7,031,778.62 | 109,351,504.69 | 19,934,589.31 |
| Payrollpayable | 73,682,968.78 | 11,052,700.68 | 67,324,258.61 | 10,109,806.74 |
| Deferredincome | 145,143,951.32 | 22,467,375.60 | 151,500,472.11 | 23,556,894.11 |
| Contractliability | 78,698,329.68 | 19,615,211.56 | 89,450,421.20 | 22,157,141.99 |
| Thechangesofaccountsreceivablefinancinginfairvalue | 50,005.02 | 7,500.75 | 81,235.81 | 12,185.37 |
| Leaseliabilities | 99,332,484.45 | 14,899,872.67 | 93,523,870.95 | 14,028,580.65 |
| Restrictedstockincentivefees | 27,488,845.13 | 4,123,326.77 | ||
| Convertiblecorporatebonds | 72,707,821.06 | 10,906,173.16 | 46,083,362.71 | 6,912,504.41 |
| Associatedenterprises | 30,636,716.16 | 4,595,507.42 | 13,704,707.03 | 2,055,706.05 |
| Fundlosses | 17,968,191.53 | 2,695,228.73 | 28,541,486.65 | 4,281,223.00 |
| Total | 922,633,520.95 | 148,530,519.94 | 964,541,672.04 | 157,892,110.06 |
(2)DeferredIncomeTaxLiabilitiesHadNotBeenOff-set
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||
| Taxabletemporarydifference | Deferredincometaxliabilities | Taxabletemporarydifference | Deferredincometaxliabilities | |
| Depreciationoffixedassets | 606,505,309.17 | 95,362,712.06 | 632,363,989.77 | 99,342,402.95 |
| Changesinfairvalueoftradingfinancialassets | 122,951,766.13 | 18,442,764.92 | 245,835,380.61 | 36,875,307.09 |
| Changesinthefairvalueofothernon-currentfinancialassets | 13,517,400.00 | 2,027,610.00 | 19,467,400.00 | 2,920,110.00 |
| Associatedenterprises | 13,000,764.22 | 1,950,114.63 | 19,521,963.57 | 2,928,294.54 |
| Right-of-useassets | 91,572,241.18 | 13,735,836.18 | 87,417,883.01 | 13,112,682.46 |
| Total | 847,547,480.70 | 131,519,037.79 | 1,004,606,616.96 | 155,178,797.04 |
(3)Deferredincometaxassetsorliabilitieshadbeenoff-setlistedinnetamount
Unit:RMB
| Item | Endingoff-setamountofdeferredincometaxassetsandliabilities | Endingbalanceofdeferredincometaxassetsandliabilities | Beginningoff-setamountofdeferredincometaxassetsandliabilities | Beginningbalanceofdeferredincometaxassetsandliabilities |
| Deferredincometaxassets | 148,530,519.94 | 157,892,110.06 | ||
| Deferredincometaxliabilities | 131,519,037.79 | 155,178,797.04 |
(4)Listofunrecogniseddeferredincometaxassets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Deductibletemporarydifference | 42,605,021.03 | 65,448,810.95 |
| Deductiblelosses | 315,591,935.20 | 257,150,469.99 |
| Total | 358,196,956.23 | 322,599,280.94 |
(5)Deductiblelossesofunrecogniseddeferredincometaxassetswilldueinthefollowingyears
Unit:RMB
| Years | Endingamount | Beginningamount | Note |
| Y2025 | 299.83 | 299.83 | |
| Y2026 | 71,029,659.21 | 71,235,558.18 | |
| Y2027 | 96,904,257.37 | 96,904,257.37 | |
| Y2028 | 87,257,787.10 | 89,010,354.61 | |
| Y2029 | 60,399,931.69 | ||
| Total | 315,591,935.20 | 257,150,469.99 |
22.OtherNon-currentAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Projectprepayment | 672,659.25 | 672,659.25 | ||||
| Prepaymentforequipment | 797,518.51 | 797,518.51 | 2,008,677.98 | 2,008,677.98 | ||
| Prepaymentforlandtransferfee | 25,432,036.39 | 25,432,036.39 | ||||
| Termdepositsover1year | 525,000,000.00 | 525,000,000.00 | 150,000,000.00 | 150,000,000.00 | ||
| Interestreceivable | 18,724,767.80 | 18,724,767.80 | 3,008,929.60 | 3,008,929.60 | ||
| fromtermdepositsover1year | ||||||
| Total | 569,954,322.70 | 569,954,322.70 | 155,690,266.83 | 155,690,266.83 |
23.AssetswithRestrictedOwnershiporRighttoUse
Unit:RMB
| Item | Period-end | Period-beginning | ||||||
| Carryingamount | Carryingvalue | Typeofrestriction | Statusofrestriction | Carryingamount | Carryingvalue | Typeofrestriction | Statusofrestriction | |
| Monetarycapital | 4,024,123.14 | 4,024,123.14 | Deposit,frozen | |||||
| Notesreceivable | 34,463,775.21 | 34,463,775.21 | Endorsedordiscountedbutnotyetdueforderecognition | 51,979,653.25 | 51,979,653.25 | Endorsedordiscountedbutnotyetdueforderecognition | ||
| Othercurrentassets | 49,999,919.97 | 49,999,919.97 | Depositforrecognisance | 137,881,884.82 | 137,881,884.82 | Depositforrecognisance | ||
| Total | 84,463,695.18 | 84,463,695.18 | 193,885,661.21 | 193,885,661.21 | ||||
24.Short-termBorrowings
(1)CategoryofShort-termBorrowings
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Borrowingssecuredbyguarantee | 91,941,851.96 | 68,275,604.36 |
| Creditloan | 757,744,972.37 | 512,429,167.91 |
| Total | 849,686,824.33 | 580,704,772.27 |
Notesofthecategoryforshort-termloans:
Theshort-termborrowingincludesinterestpayableofRMB857,387.01.
(2)ListoftheShort-termBorrowingsOverduebutnotReturnedTherewerenooutstandingshort-termborrowingsoverdueattheendoftheReportingPeriod.
25.TradingFinancialLiabilities
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Tradingfinancialliabilities | 15,858,713.22 | 46,785,831.47 |
| Ofwhich: | ||
| Ofwhich:Derivativefinancialliabilities | 15,858,713.22 | 46,785,831.47 |
| Ofwhich: | ||
| Total | 15,858,713.22 | 46,785,831.47 |
26.AccountsPayable
(1)ListofAccountsPayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Paymentforgoods | 174,951,225.51 | 127,198,717.36 |
| Engineeringequipment | 58,703,628.27 | 106,150,377.55 |
| Other | 38,424,237.73 | 42,153,820.14 |
| Total | 272,079,091.51 | 275,502,915.05 |
(2)SignificantAccountsPayableAgingoverOneYearorOverdueNosignificantaccountspayableoveroneyearoldattheendoftheCurrentPeriod.
27.OtherPayables
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Dividendspayable | 441,113.64 | 441,113.64 |
| Otherpayables | 16,996,685.96 | 47,108,259.88 |
| Total | 17,437,799.60 | 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,includingthereasonsfornon-paymentofsignificantdividendspayablethathavenotbeenpaidformorethanoneyear:
| Nameofshareholder | Amountofdividendspayable | Reason |
| Dividendspayabletoindividualshareholders | 441,113.64 | Cashdividendofpreviousyearnotreceivedbyindividualshareholders |
| Total | 441,113.64 | -- |
(2)OtherPayables
1)Otherpayableslistedbynature
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Depositsandcashdepositsetc. | 5,412,393.10 | 5,026,687.70 |
| Collectingpaymentonbehalfofothers | 2,071,915.32 | 213,812.12 |
| Restrictedstockrepurchaseobligations | 31,556,265.00 | |
| Other | 9,512,377.54 | 10,311,495.06 |
| Total | 16,996,685.96 | 47,108,259.88 |
28.ContractLiabilities
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Advancefromsales | 200,833,613.26 | 203,270,689.03 |
| Less:contractliabilityrecordedinothernon-currentliabilities | -9,282,609.47 | -15,197,353.14 |
| Total | 191,551,003.79 | 188,073,335.89 |
Significantcontractliabilitiesagingoveroneyear
Unit:RMB
| Item | Endingbalance | Unpaid/Un-carry-overreason |
| N/A | 0.00 | |
| Total | 0.00 |
29.PayrollPayable
(1)Listofpayrollpayable
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance |
| I.Short-termsalary | 284,329,504.63 | 1,430,882,250.49 | 1,414,000,384.86 | 301,211,370.26 |
| II.Post-employmentbenefit-definedcontributionplans | 15,469.09 | 174,903,707.53 | 174,903,184.99 | 15,991.63 |
| III.Terminationbenefits | 946,980.58 | 946,980.58 | ||
| Total | 284,344,973.72 | 1,606,732,938.60 | 1,589,850,550.43 | 301,227,361.89 |
(2)ListofShort-termSalary
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance |
| 1.Salary,bonus,allowance,subsidy | 213,425,517.98 | 1,275,594,062.23 | 1,264,196,808.05 | 224,822,772.16 |
| 2.Employeewelfare | 211,683.08 | 40,317,797.57 | 40,529,477.85 | 2.80 |
| 3.Socialinsurance | 32,536.50 | 78,311,592.09 | 78,310,834.25 | 33,294.34 |
| Ofwhich:Medicalinsurancepremiums | 31,411.48 | 71,013,991.28 | 71,013,987.85 | 31,414.91 |
| Work-relatedinjuryinsurancepremiums | 375.01 | 7,288,448.65 | 7,287,719.58 | 1,104.08 |
| Maternityinsurance | 750.01 | 9,152.16 | 9,126.82 | 775.35 |
| 4.Housingfund | 14,105,049.80 | 14,105,049.80 | ||
| 5.Laborunionbudgetandemployeeeducationbudget | 70,659,767.07 | 22,553,748.80 | 16,858,214.91 | 76,355,300.96 |
| Total | 284,329,504.63 | 1,430,882,250.49 | 1,414,000,384.86 | 301,211,370.26 |
(3)Listofdefinedcontributionplans
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance |
| 1.Basicpensioninsurance | 15,000.32 | 166,108,702.32 | 166,108,195.60 | 15,507.04 |
| 2.Unemploymentinsurancepremiums | 468.77 | 8,795,005.21 | 8,794,989.39 | 484.59 |
| Total | 15,469.09 | 174,903,707.53 | 174,903,184.99 | 15,991.63 |
Othernotes:
TheCompany,inlinewiththerequirement,participatesinendowmentinsurance,unemploymentinsuranceplans,andsoon.Undertheseplans,theCompanymakesmonthlycontributionstotheseplansat16%and0.7%ofthesocialsecuritycontributionbase,respectively.NofurtherpaymentobligationswillbeincurredbytheCompanybeyondtheabovemonthlycontributionfees.Therelevantexpenseoccurredwasrecordedintocurrentprofitsandlossesorrelatedassetcosts.
30.TaxesPayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| VAT | 13,958,538.83 | 15,261,850.74 |
| Enterpriseincometax | 27,102,242.22 | 14,347,230.63 |
| Personalincometax | 1,581,994.81 | 1,266,426.62 |
| Urbanmaintenanceandconstructiontax | 3,433,797.45 | 2,753,492.14 |
| Stampduty | 826,522.82 | 848,769.75 |
| Realestatetax | 5,239,688.51 | 5,059,177.21 |
| Landusetax | 2,097,384.98 | 668,899.85 |
| Educationalfee | 1,551,805.29 | 1,253,814.31 |
| Localeducationsurcharge | 1,039,303.54 | 843,626.22 |
| Taxonnaturalresources | 160,264.60 | 31,938.00 |
| Environmentalprotectiontax | 270,404.96 | 298,007.08 |
| Total | 57,261,948.01 | 42,633,232.55 |
31.CurrentPortionofNon-currentLiabilities
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Currentportionoflong-termborrowings | 12,676,401.72 | 88,930,000.00 |
| Leaseobligationmaturedwithin1year | 15,112,170.03 | 7,277,192.49 |
| Total | 27,788,571.75 | 96,207,192.49 |
(1)Currentportionoflong-termborrowings
| Item | Endingbalance | Closingbalanceoflastyear |
| Creditloan | 12,676,401.72 | 88,930,000.00 |
| Total | 12,676,401.72 | 88,930,000.00 |
32.Othercurrentliabilities
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Taxtobechargedoff | 9,282,609.47 | 15,197,353.14 |
| Endorsedunduebillundernon-derecognition | 33,546,850.71 | 48,449,554.97 |
| Total | 42,829,460.18 | 63,646,908.11 |
33.Long-termBorrowings
(1)Categoryoflong-termborrowings
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Creditloan | 408,920,511.93 | 348,922,974.40 |
| Less:currentportionoflong-termborrowings | -12,676,401.72 | -88,930,000.00 |
| Total | 396,244,110.21 | 259,992,974.40 |
Notesofthecategoryforlong-termloans:
Othernotes,includingtheinterestraterange:
| Item | Endingbalance | Interestraterange(%) | Closingbalanceoflastyear | Interestraterange(%) |
| Creditloan | 408,920,511.93 | 2.05-2.80 | 348,922,974.40 | 2.60-3.50 |
34.BondsPayable
(1)Bondspayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Convertiblecorporatebonds | 1,509,420,449.46 | 1,476,572,070.79 |
| Total | 1,509,420,449.46 | 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 | 2020/4/9 | 6years | 1,400,000,000.00 | 1,476,572,070.79 | 24,112,049.06 | 29,738,768.51 | 20,997,738.90 | 4,700.00 | 1,509,420,449.46 | Not | ||
| Total | -- | 1,400,000,000.00 | 1,476,572,070.79 | 24,112,049.06 | 29,738,768.51 | 20,997,738.90 | 4,700.00 | 1,509,420,449.46 | -- | ||||
(3)NotestotheconvertiblecorporatebondsAccordingtotheApprovalofthePublicIssueofConvertibleCorporateBondsofLuThaiTextileCo.,Ltd.(ZH.J.X.K[2020]No.299)oftheChinaSecuritiesRegulatoryCommission,theCompanyissued14millionconvertiblebondswithafacevalueofRMB100eachforatotalissueamountofRMB1.4billionwithamaturityof6years,i.e.from9April2020to8April2026.ThecouponratesoftheconvertiblebondsissuedbytheCompanyare0.3%,0.6%,1%,1.5%,1.8%and2%inthefollowingorderfromthefirststagetothesixthstage,withinterestpayableannually.Theconversionperiodshallcommencefrom(andinclude)thefirsttradingdayon15October2020,sixmonthsafterthedateofissue,andshallendon(andinclude)thetradingdaypriortothematuritydateoftheconvertiblebonds(8April2026).Holdersmayapplyforconversionduringtheconversionperiod.TheinitialconversionpriceofconvertiblecorporatebondswasRMB9.01persharewhenitwasissuedbutwasadjustedtoRMB8.91persharesinceJuly9,2020,aftertheCompanyimplemented
the2019profitsharingagreementonJuly8,2020.AftertheCompanyimplementedtherestrictedstockincentiveplanin2021,thepricewasadjustedtoRMB8.76pershareaccordinglysinceJune7,2021.Upontheimplementationofthe2020profitsharingagreementbytheCompanyonJune18,2021,itwasadjustedtoRMB8.71pershareaccordinglyagainsinceJune18,2021.Upontheimplementationofthe2021profitsharingagreementbytheCompanyonJune23,2022,itwasadjustedtoRMB8.61pershareaccordinglyagainsinceJune23,2022.TheCompanycompletedtheformalitiesforcancellationoftherepurchasedshareson25May2023,andtheconversionpriceoftheconvertiblebondwasadjustedaccordinglytoRMB8.73pershareon26May2023.Upontheimplementationofthe2021ProfitDistributionPlanbytheCompanyon16June2023,theconversionpriceoftheconvertiblebondwasadjustedtoRMB8.63pershareaccordinglyon16June2023.TheCompanycompletedtheformalitiesforcancellationoftherepurchasedshareson1March2024,andtheconversionpriceoftheconvertiblebondwasadjustedaccordinglytoRMB8.87pershareon4March2024.Afterimplementingthe2023annualprofitdistributionplanon19June2024,theconversionpriceoftheconvertiblebondswasadjustedtoRMB8.74pershare,effectivefrom19June2024.Afterimplementingthe2024interimprofitdistributionplanon8November2024,theconversionpriceoftheconvertiblebondswasadjustedtoRMB8.64pershare,effectivefrom8November2024.Afterimplementingthe2024third-quarterprofitdistributionplanon19December2024,theconversionpriceoftheconvertiblebondswasadjustedtoRMB8.59pershare,effectivefrom19December2024.
35.Leaseobligation
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Leasepayments | 133,128,147.33 | 123,608,615.06 |
| Unrecognisedfinancingcosts | -26,662,656.50 | -29,751,198.16 |
| Less:Currentportionofleaseliabilities | -15,112,170.03 | -7,277,192.49 |
| Total | 91,353,320.80 | 86,580,224.41 |
Othernotes:
Theamountofinterestexpenseonleaseliabilitiesaccruedin2024wasRMB4,932,489.33,whichwasincludedinfinancialcosts-interestexpense.
36.Long-termPayrollPayable
(1)Listoflong-termpayrollpayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| III.Otherlong-termwelfare | 58,494,991.36 | 57,276,675.61 |
| Total | 58,494,991.36 | 57,276,675.61 |
37.DeferredIncome
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance | Reasonforformation |
| Governmentgrants | 151,768,947.92 | 1,090,000.00 | 7,463,826.81 | 145,395,121.11 | Governmentgrants |
| Total | 151,768,947.92 | 1,090,000.00 | 7,463,826.81 | 145,395,121.11 | -- |
Othernotes:
38.ShareCapital
Unit:RMB
| Beginningbalance | Increase/decrease(+/-) | Endingbalance | |||||
| Newsharesissued | Bonusshares | Sharesconvertedfromcapitalreserve | Other | Subtotal | |||
| Totalshares | 863,607,634.00 | -46,301,624.00 | -46,301,624.00 | 817,306,010.00 | |||
Othernotes:
(1)Inaccordancewiththeresolutionpassedatthe10thmeetingofthe10thBoardofDirectorson19June2023andtheProposalonRepurchaseoftheCompany’sDomesticallyListedForeignShares(BShare)approvedattheFirstExtraordinaryGeneralMeetingon6July2023,theCompanyrepurchased46,176,428B-sharesandcompletedthecancellationproceduresfortherepurchasedshareswithShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimitedon1March2024.ThischangeinsharecapitalhasbeenauditedbyZhitongAccountingFirm(SpecialGeneralPartnership)andthecapitalverificationreportZTYZ(2024)No.371C000075wasissuedon26February2024.
(2)Atotalof304.00sharesofconvertiblebondsoftheCompanycanbeconvertedintheReportingPeriod.
(3)Fordetailsregardingtherepurchaseandcancelauthorizedbutunlockedrestrictedshareoftheincentivepersonnelnotconformingtotheincentivecondition,pleaserefertoNoteIIICompanyProfile.
39.OtherEquityInstruments
(1)Changesofoutstandingfinancialinstrumentssuchaspreferredsharesandperpetualbondsattheperiod-end
Unit:RMB
| Outstandingfinancialinstruments | Period-beginning | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Period-end | ||||
| Number | Carryingvalue | Number | Carryingvalue | Number | Carryingvalue | Number | Carryingvalue | |
| Convertibledebttoequity | 71,383,677.78 | 239.67 | 71,383,438.11 | |||||
| Total | 71,383,677.78 | 239.67 | 71,383,438.11 | |||||
40.CapitalReserves
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance |
| Capitalpremium(premiumonstock) | 249,154,010.40 | 30,049,600.00 | 153,840,530.40 | 125,363,080.00 |
| Othercapitalreserves | 85,638,604.36 | 3,722,842.26 | 36,205,859.31 | 53,155,587.31 |
| Total | 334,792,614.76 | 33,772,442.26 | 190,046,389.71 | 178,518,667.31 |
Othernotes,includingadescriptionoftheincreaseordecreaseforthecurrentperiodandthereasonsforthechange:
(1)Accordingtotheresolutionpassedatthe10thmeetingofthe10thBoardofDirectorson19June2023andtheProposalonRepurchaseoftheCompany’sDomesticallyListedForeignShares(BShare)approvedattheFirstExtraordinaryGeneralMeetingon6July2023,theCompanyrepurchasedandcancelled46,176,428B-shares,reducingthecapitalreserve—sharepremiumbyRMB153,572,985.40.
(2)Accordingtotheresolutionpassedatthe18thmeetingofthe10thBoardofDirectorson19January2024andtheProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveConditionpassedattheFirstExtraordinaryGeneralMeetingon5February2024,theCompanyrepurchasedandcancelled66,500.00shares,reducingthecapitalreserve—sharepremiumbyRMB140,485.00.Accordingtotheresolutionpassedatthe22ndmeetingofthe10thBoardofDirectorson28May2024andtheProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveConditionpassedattheSecondExtraordinaryGeneralMeetingon14June2024,thecompanyrepurchasedandcancelled59,000.00shares,reducingthecapitalreserve—sharepremiumbyRMB127,060.00.
(3)Theincentiveexpensesforrestrictedstockinthisperiodincreasedthecapitalreserve—othercapitalreservebyRMB2,817,226.19.Theportionoftherestrictedstockthathasmaturedandbeenunlockedwastransferredfromthecapitalreserve—othercapitalreservetothecapitalreserve—sharepremiumintheamountofRMB30,049,600.00.
(4)Thecapitalreserves—capitalpremiumarisingfromtheconversionofconvertiblebondsincreasedbyRMB2,547.58intheReportingPeriod.
(5)Thepurchaseofminorityshareholderequityinthisperiodreducedthecapitalreserve—othercapitalreservebyRMB6,156,259.31.
41.Treasurystocks
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance |
| Restrictedstock | 31,556,265.00 | 31,556,265.00 | ||
| RepurchaseofB-shares | 161,882,455.78 | 37,866,957.62 | 199,749,413.40 | |
| Total | 193,438,720.78 | 37,866,957.62 | 231,305,678.40 |
Othernotes,includingadescriptionoftheincreaseordecreaseforthecurrentperiodandthereasonsforthechange:
(1)RMB31,556,265.00wasreducedduetotherestrictedstockexpirationunlockandrepurchaseduringtheReportingPeriod.
(2)Accordingtotheresolutionpassedatthe10thmeetingofthe10thBoardofDirectorson19June2023andtheProposalonRepurchaseoftheCompany’sDomesticallyListedForeignShares(BShare)approvedattheFirstExtraordinaryGeneralMeetingon6July2023,theCompanyrepurchasedB-sharesandcompletedthecancellationproceduresfortherepurchasedshareswithShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimitedon1March2024.Inthisperiod,theCompanyrepurchased8,685,783.00B-shares,increasingthetreasuryB-sharesbyRMB37,866,957.62,andreducingthetreasuryB-sharesbyRMB199,749,413.40.
42.Othercomprehensiveincome
Unit:RMB
| Item | Beginningbalance | Amountofthecurrentperiod | Endingbalance | |||||
| Amountbeforedeductingincometaxforthecurrentperiod | Less:recordedinothercomprehensiveincomeinpriorperiodandtransferredinprofitorlossintheCurrentPeriod | Less:recordedinothercomprehensiveincomeinpriorperiodandtransferredinretainedearningsintheCurrentPeriod | Less:Incometaxexpense | AttributabletotheCompanyastheparentaftertax | Attributableminorityshareholdersaftertax | |||
| II.Othercomprehensiveincomethatmaysubsequentlybereclassifiedtoprofitorloss | 131,343,141.63 | 35,594,497.12 | 4,684.62 | 35,582,843.63 | 6,968.87 | 166,925,985.26 | ||
| Differencesarisingfromtranslationofforeigncurrency-denominatedfinancialstatements | 131,410,451.64 | 35,556,383.35 | 35,556,383.35 | 166,966,834.99 | ||||
| Thechangesofaccountsreceivablefinancinginfairvalue | -67,310.01 | 38,113.77 | 4,684.62 | 26,460.28 | 6,968.87 | -40,849.73 | ||
| Totalofothercomprehensiveincome | 131,343,141.63 | 35,594,497.12 | 4,684.62 | 35,582,843.63 | 6,968.87 | 166,925,985.26 | ||
43.SpecialReserve
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance |
| Safetyproductioncosts | 4,794,302.65 | 4,794,302.65 | ||
| Total | 4,794,302.65 | 4,794,302.65 |
44.SurplusReserves
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance |
| Statutorysurplusreserves | 1,257,319,442.76 | 10,768,267.10 | 1,268,087,709.86 | |
| Discretionalsurplusreserves | 3,341,572.58 | 3,341,572.58 | ||
| Total | 1,260,661,015.34 | 10,768,267.10 | 1,271,429,282.44 |
45.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 | 410,321,398.17 | 403,444,254.42 |
| Less:Withdrawalofstatutorysurplusreserves | 10,768,267.10 | 45,536,678.80 |
| Dividendsofcommonsharespayable | 228,845,667.98 | 86,360,751.90 |
| Endingretainedprofits | 6,933,165,006.16 | 6,762,457,543.07 |
Listofadjustmentofbeginningretainedprofits:
1)RMB0.00beginningretainedprofitswasaffectedbyretrospectiveadjustmentconductedaccordingtotheAccountingStandardsforBusinessEnterprisesandrelevantnewregulations.
2)RMB0.00beginningretainedprofitswasaffectedbychangesinaccountingpolicies.
3)RMB0.00beginningretainedprofitswasaffectedbycorrectionofsignificantaccountingerrors.
4)RMB0.00beginningretainedprofitswasaffectedbychangesincombinationscopearisingfromsamecontrol.
5)RMB0.00beginningretainedprofitswasaffectedtotallybyotheradjustments.
46.Operatingrevenueandcostofsales
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod | ||
| Revenue | Cost | Revenue | Cost | |
| Principalbusiness | 5,938,910,476.56 | 4,522,353,436.84 | 5,769,590,109.14 | 4,436,999,330.60 |
| Others | 151,704,548.64 | 121,225,507.79 | 191,887,143.84 | 154,389,584.80 |
| Total | 6,090,615,025.20 | 4,643,578,944.63 | 5,961,477,252.98 | 4,591,388,915.40 |
Whetherthelowerofthenetprofitbeforeandafterdeductionofnon-recurringgainsandlossesthroughauditisnegative
□Yes?No
47.Taxesandsurtaxes
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Urbanmaintenanceandconstructiontax | 15,631,280.11 | 16,393,990.50 |
| Educationalfee | 6,743,881.62 | 7,007,721.81 |
| Taxonnaturalresources | 452,338.60 | 554,816.00 |
| Realestatetax | 21,869,937.53 | 21,199,515.92 |
| Landusetax | 9,267,774.49 | 9,265,984.60 |
| Vehicleandvesselusagetax | 73,457.91 | 76,087.36 |
| Stampduty | 2,752,099.21 | 2,878,128.65 |
| Localeducationsurcharge | 4,495,921.14 | 4,883,047.87 |
| Environmentalprotectiontax | 1,163,746.03 | 1,000,678.29 |
| Total | 62,450,436.64 | 63,259,971.00 |
Othernotes:
PleaserefertoNoteVI.Taxesfordetailsofvarioustaxesandadditionalstandardsforcalculationandpayment.
48.Administrativeexpense
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod |
| Salary | 151,357,352.41 | 150,508,460.24 |
| Warehousefunding | 37,943,652.85 | 37,027,435.82 |
| Depreciationcharge | 35,024,005.14 | 38,324,764.84 |
| Officeoperatingfee | 23,139,520.72 | 22,400,178.37 |
| Start-upcosts | 20,703,414.66 | |
| Restrictedstockincentivefees | 2,817,226.19 | 16,758,063.86 |
| Amortizationofintangibleassets | 13,540,031.82 | 14,975,654.46 |
| Labor-unionexpenditure | 12,900,758.43 | 11,144,934.24 |
| Travelexpenses | 11,242,624.14 | 10,821,318.60 |
| Securityservicecharges | 9,637,131.16 | 8,977,477.55 |
| Decoration&repairexpenses | 5,797,832.50 | 8,198,163.75 |
| Employeeeducationbudget | 7,570,924.52 | 7,863,725.72 |
| Energycost | 6,788,543.36 | 5,724,113.91 |
| Insurance | 3,810,379.01 | 3,383,248.24 |
| Auditandassessmentfees | 3,470,923.10 | 3,307,933.56 |
| Other | 19,286,067.76 | 22,208,644.97 |
| Total | 344,326,973.11 | 382,327,532.79 |
49.Sellingexpense
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod |
| Salary | 64,888,185.22 | 67,286,568.27 |
| Salesserviceexpenses | 23,663,931.01 | 20,406,411.01 |
| Advertisingexpense | 22,152,800.12 | 19,238,310.32 |
| Depreciationcharge | 6,730,304.45 | 7,009,619.02 |
| Expenseforrepairmenandloss | 3,787,945.84 | 8,413,985.12 |
| Businessentertainmentexpenses | 5,577,169.95 | 3,958,206.27 |
| Travelexpenses | 7,551,720.70 | 8,462,597.19 |
| Insurance | 2,083,319.33 | 3,063,096.84 |
| Officecost | 1,819,802.88 | 1,842,252.81 |
| Expressfees | 3,194,167.06 | 2,458,673.29 |
| Inspectionfees | 2,133,986.68 | 1,826,450.84 |
| Other | 7,421,106.11 | 4,488,643.23 |
| Total | 151,004,439.35 | 148,454,814.21 |
50.R&Dexpense
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Laborcost | 111,941,746.30 | 127,993,607.00 |
| Materialexpense | 63,752,049.15 | 79,121,927.42 |
| Depreciationcharge | 17,615,844.34 | 17,240,537.12 |
| Other | 13,511,281.92 | 15,419,271.64 |
| Total | 206,820,921.71 | 239,775,343.18 |
50.Financialcosts
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Interestexpense | 102,900,852.62 | 99,033,706.35 |
| Less:Capitalizedinterest | -12,728,462.85 | |
| Interestincome | -60,956,758.61 | -52,183,151.33 |
| Add:Capitalizedinterestincome | 1,130,278.69 | |
| Exchangeloss | -51,830,925.57 | -37,916,375.66 |
| Less:Capitalizedforeignexchangegainsorlosses | ||
| Commissionchargeandother | 6,136,645.25 | 8,112,849.27 |
| Total | -3,750,186.31 | 5,448,844.47 |
52.Otherincome
Unit:RMB
| Sources | Reportingperiod | Sameperiodoflastyear |
| Subsidiesforthepriceofheatingcoal | 12,000,000.00 | |
| Subsidiesforequipment | 5,831,228.28 | 5,871,101.54 |
| Subsidyforenvironmentalprotection | 953,396.23 | 5,283,018.87 |
| Humanresourcessubsidy | 5,460,951.18 | 4,382,702.42 |
| Taxrelief | 17,985,047.46 | 4,209,600.05 |
| R&Dsubsidy | 460,115.21 | 3,565,104.58 |
| Specialfundsfortheconversionofnewandoldindustrialkineticenergy | 3,500,000.00 | |
| Specialfundforforeigntradeandcommerceandcirculation | 691,350.26 | 2,753,789.50 |
| Landsubsidy | 1,354,251.84 | 1,354,251.84 |
| Financingsubsidy | 700,000.00 | 952,000.00 |
| Strengthentheenterprisegovernmentsubsidy | 768,900.00 | |
| Rebateofsurchargesforwithholdingtaxes | 394,664.87 | 268,194.00 |
| Rewardforscienceandtechnology | 50,000.00 | 150,000.00 |
| Subsidyforpublicrentalhousing | 48,231.48 | 48,231.48 |
| Rewardorfundingforsupportinghigh-qualitydevelopment | 200,000.00 | 10,000.00 |
| Designreward | 71,000.00 | 10,000.00 |
| Total | 34,200,236.81 | 45,126,894.28 |
53.Gainonchangesinfairvalue
Unit:RMB
| Sources | Amountofthecurrentperiod | Amountofthepreviousperiod |
| Financialassetheldfortrading | -121,753,892.40 | -22,511,823.37 |
| Ofwhich:Incomefromchangesinfairvaluegeneratedbyderivativefinancialinstruments | -5,766,681.34 | -20,958,877.30 |
| Tradingfinancialliabilities | 30,927,118.25 | -42,508,901.77 |
| Total | -90,826,774.15 | -65,020,725.14 |
Othernotes:
Thedetailsofthefairvaluechangesintradingfinancialassetsareasfollows:
| Item | Reportingperiod | Sameperiodoflastyear |
| Tradingequityinstrumentinvestments-Equityinvestments | -114,115,577.69 | -3,653,802.10 |
| Tradingdebtinstrumentinvestments-Debtinvestments | -1,871,633.37 | 2,100,856.03 |
| Derivativesnotdesignatedashedging | -5,766,681.34 | -20,958,877.30 |
| Included:Forwardforeignexchangecontracts | -20,958,877.30 | |
| Other | -5,766,681.34 | |
| Total | -121,753,892.40 | -22,511,823.37 |
54.Investmentincome
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Long-termequityinvestmentincomeaccountedbyequitymethod | -23,453,208.48 | -9,556,170.35 |
| Investmentincomefromholdingofheld-for-tradingfinancialasset | 8,650,404.35 | 10,537,021.78 |
| Investmentincomefromdisposaloftradingfinancialassets | -35,880,032.08 | 38,383,757.03 |
| Interestincomefromdebtinvestmentsduringtheholdingperiod | 4,176,585.64 | |
| Total | -46,506,250.57 | 39,364,608.46 |
Othernotes:
Thedetailsofinvestmentincomeobtainedfromthedisposaloftradingfinancialassetsareasfollows:
| Item | Reportingperiod | Sameperiodoflastyear |
| Tradingequityinstrumentinvestments-Equityinvestments | 1,376,121.43 | 21,036,646.84 |
| Tradingdebtinstrumentinvestments-Debtinvestments | 136,311.38 | 1,876,234.28 |
| Derivativesnotdesignatedashedging | -37,392,464.89 | 15,470,875.91 |
| Included:Forwardforeignexchangecontracts | -4,694,000.00 | 10,981,450.00 |
| Other | -32,698,464.89 | 4,489,425.91 |
| Total | -35,880,032.08 | 38,383,757.03 |
55.Creditimpairmentloss
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Lossonuncollectiblenotesreceivable | -20,000.00 | |
| Lossonuncollectibleaccountsreceivable | -2,992,091.75 | -1,998,736.62 |
| Lossonuncollectibleotherreceivables | 4,425.40 | -1,278,336.84 |
| Impairmentlossesondividendreceivable | 977,015.71 | |
| Total | -3,007,666.35 | -2,300,057.75 |
56.Assetimpairmentloss
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| I.Inventoryfallingpricelossandimpairmentprovisionforcontractperformancecosts | -77,535,640.73 | -88,745,330.21 |
| IV.Impairmentlossonfixedassets | -32,597,860.48 | -17,131,456.31 |
| Total | -110,133,501.21 | -105,876,786.52 |
57.Assetdisposalincome
Unit:RMB
| Sources | Reportingperiod | Sameperiodoflastyear |
| Fixedassetdisposalincome(“-”forloss) | -3,139,466.60 | -9,123,336.47 |
58.Non-operatingincome
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
| Claimincome | 5,774,318.01 | 4,451,354.70 | 5,774,318.01 |
| Gainsondamageandscrapofnon-currentassets | 1,250,000.00 | ||
| Other | 3,800,622.34 | 3,646,341.49 | 3,800,622.34 |
| Total | 9,574,940.35 | 9,347,696.19 | 9,574,940.35 |
59.Non-operatingexpense
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
| Donations | 970,430.10 | 1,054,579.52 | 970,430.10 |
| Lossesfromdamageandscrapofnon-currentassets | 2,342,251.07 | 1,868,432.90 | 2,342,251.07 |
| Other | 5,221,406.37 | 2,223,669.57 | 5,221,406.37 |
| Total | 8,534,087.54 | 5,146,681.99 | 8,534,087.54 |
60.Incometaxexpense
(1)Listofincometaxexpense
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Currentincometaxexpense | 55,890,058.99 | 40,870,126.23 |
| Deferredincometaxexpense | -14,340,865.19 | -29,120.86 |
| Total | 41,549,193.80 | 40,841,005.37 |
(2)Adjustmentprocessofaccountingprofitandincometaxexpense
Unit:RMB
| Item | Reportingperiod |
| Profitbeforetaxation | 467,810,926.81 |
| Currentincometaxexpenseaccountedatstatutory/applicabletaxrate | 70,171,639.02 |
| Influenceofapplyingdifferenttaxratesbysubsidiaries | -9,498,804.49 |
| Influenceofincometaxbeforeadjustment | 342,447.39 |
| Influenceofnon-taxableincome | -9,073,552.30 |
| Influenceofnotdeductiblecosts,expensesandlosses | 5,929,668.42 |
| Influenceofutilizingdeductiblelossesofunrecogniseddeferredincometaxassetsfromprioryears | -10,294.95 |
| Effectofdeductibletemporarydifferencesordeductiblelossesondeferredincometaxassetsnotrecognisedintheperiod | 6,380,013.18 |
| Effectofchangesintaxratesonthebalanceofdeferredincometaxesatthebeginningoftheperiod | 153,323.78 |
| InfluenceofadditionaldeductionofR&Dexpenses(filledinwith“-”) | -22,769,567.51 |
| Influenceofotherexpensededuction(filledinwith“-”) | -75,678.75 |
| Incometaxexpense | 41,549,193.80 |
61.Cashflowstatement
(1)CashrelatedtooperatingactivitiesCashgeneratedfromotheroperatingactivities
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Governmentgrants | 8,844,125.34 | 37,448,096.51 |
| Claimincome | 6,749,891.76 | 40,162,446.43 |
| Refundofprepaidincometax | 4,524,464.01 | 18,522,628.85 |
| Recoveryofemployeeborrowings,pettycashanddeposit | 15,299,763.96 | 11,200,463.32 |
| Collectionforemployees | 7,175,308.33 | 7,302,950.37 |
| Other | 1,942,997.19 | 729,876.18 |
| Total | 44,536,550.59 | 115,366,461.66 |
Cashusedinotheroperatingactivities
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Businesstravelcharges | 46,363,110.18 | 43,118,560.30 |
| Insurance | 4,816,280.91 | 4,041,804.87 |
| Auditadvisoryannouncementfee | 8,021,658.82 | 5,707,687.46 |
| Decoration&repairexpenses | 16,812,233.45 | 4,645,997.08 |
| Donation | 1,265,841.05 | 1,054,579.52 |
| Paymentofemployeeborrowings,pettycashanddeposit | 16,786,177.27 | 10,900,343.11 |
| Agencyservicefee | 25,314,251.64 | 21,262,143.20 |
| Other | 32,694,802.04 | 67,532,357.50 |
| Total | 152,074,355.36 | 158,263,473.04 |
(2)CashrelatedtoinvestingactivitiesCashgeneratedfromotherinvestingactivities
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Interestincome | 50,343,450.79 | 52,875,557.97 |
| Incomefromforwardforeignexchange | 920,000.00 | 16,121,450.00 |
| Timedepositmaturity | 666,771,403.91 | 84,335,748.58 |
| CashdepositofL/C | 1,614,069.75 | |
| Total | 719,648,924.45 | 153,332,756.55 |
Cashgeneratedfromimportantinvestingactivities
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Governmentbondreverserepo | 321,061,000.00 | 8,566,561,000.00 |
| Structuraldeposits | 699,200,000.00 | 777,500,000.00 |
| Wealthmanagementproducts | 90,000,000.00 | |
| Total | 1,020,261,000.00 | 9,434,061,000.00 |
Cashusedinotherinvestingactivities
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod |
| Forwardsettlementexchangeloss | 5,614,000.00 | 5,140,000.00 |
| Termdeposits | 1,532,102,982.54 | 33,470,284.27 |
| Depositforrecognisance | 86,463,622.94 | |
| Total | 1,537,716,982.54 | 125,073,907.21 |
Significantcashpaidrelatedtoinvestingactivities
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod |
| Governmentbondreverserepo | 270,102,000.56 | 8,617,522,000.00 |
| Structuraldeposits | 779,200,000.00 | 927,500,000.00 |
| Wealthmanagementproducts | 150,000,000.00 | |
| Total | 1,199,302,000.56 | 9,545,022,000.00 |
(3)CashRelatedtoFinancingActivitiesCashGeneratedfromOtherFinancingActivities
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod |
| Other | 98,800.40 | |
| Total | 98,800.40 |
Cashusedinotherfinancingactivities
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod |
| Repaymentofleaseliabilitiesandprepaidrent | 20,964,987.89 | 18,746,507.86 |
| RepurchaseofB-shares | 37,825,088.34 | 172,397,831.66 |
| Total | 58,790,076.23 | 191,144,339.52 |
Changesinliabilitiesarisingfromfinancingactivities?Applicable□Notapplicable
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance | ||
| Cashfluctuations | Non-cashfluctuations | Cashfluctuations | Non-cashfluctuations | |||
| Short-termloan | 580,704,772.27 | 1,386,326,578.03 | 30,558,250.99 | 1,147,902,776.96 | 849,686,824.33 | |
| Long-termborrowings | 348,922,974.40 | 760,660,043.27 | 18,266,322.04 | 718,928,827.78 | 408,920,511.93 | |
| BondsPayable | 1,476,572,070.79 | 53,850,817.57 | 20,997,738.90 | -4,700.00 | 1,509,420,449.46 | |
| Leaseliabilities | 93,857,416.90 | 33,573,061.82 | 20,964,987.89 | 106,465,490.83 | ||
| Total | 2,500,057,234.36 | 2,146,986,621.30 | 136,248,452.42 | 1,908,794,331.53 | -4,700.00 | 2,874,493,276.55 |
62.Supplementalinformationforcashflowstatement
(1)Supplementalinformationforcashflowstatement
Unit:RMB
| Supplementalinformation | Amountduringthecurrentperiod | Previousperiod |
| 1.Reconciliationofnetprofittonetcashflowsgeneratedfromoperatingactivities | ||
| Netprofit | 426,261,733.01 | 396,352,437.62 |
| Add:Provisionforimpairmentofassets | 113,141,167.56 | 108,176,844.27 |
| Depreciationoffixedassets,oil-gasassets,andproductivebiologicalassets | 478,703,217.22 | 464,547,764.15 |
| Depreciationofright-of-useassets | 26,592,180.81 | 27,017,455.52 |
| Amortizationofintangibleassets | 10,757,436.27 | 10,577,354.94 |
| Amortizationoflong-termprepaidexpenses | 1,992,490.31 | 3,990,981.43 |
| Lossesfromdisposaloffixedassets,intangibleassetsandotherlong-livedassets(gains:negative) | 3,139,466.60 | 9,123,336.47 |
| Lossesfromscrapoffixedassets(gains:negative) | 2,342,251.07 | 618,432.90 |
| Lossesfromchangesinfairvalue(gainsrepresentedby“-”) | 90,826,774.15 | 65,020,725.14 |
| Financecosts(gains:negative) | -11,085,007.09 | -3,920,412.41 |
| Investmentloss(gainsrepresentedby“-”) | 46,506,250.57 | -39,364,608.46 |
| Decreaseindeferredincometaxassets(gains:negative) | 9,318,894.06 | -3,964,485.10 |
| Increaseindeferredincometaxliabilities(“-”meansdecrease) | -23,659,759.25 | 3,935,364.24 |
| Decreaseininventory(gains:negative) | 74,756,772.23 | -15,594,018.10 |
| Decreaseinaccountsreceivablegeneratedfromoperatingactivities(gainsrepresentedby“-”) | -25,459,430.42 | -38,266,103.45 |
| Increaseinaccountspayableusedinoperatingactivities(decreaserepresentedby“-”) | 20,077,714.84 | -133,386,531.74 |
| Other | ||
| Netcashflowfromoperatingactivities | 1,244,212,151.94 | 854,864,537.42 |
| 2.Significantinvestingandfinancingactivitieswithoutinvolvementofcashreceiptsandpayments | ||
| Conversionofdebttocapital |
| Convertiblecorporatebondsmaturedwithinoneyear | ||
| Fixedassetunderfinancelease | ||
| 3.Netincrease/decreaseofcashandcashequivalent: | ||
| Closingbalanceofcash | 1,371,412,259.52 | 1,353,615,305.93 |
| Less:Openingbalanceofcash | 1,353,615,305.93 | 1,822,897,270.16 |
| Plus:Closingbalanceofcashequivalents | ||
| Less:Openingbalanceofcashequivalents | ||
| Netincreaseincashandcashequivalents | 17,796,953.59 | -469,281,964.23 |
(2)Cashandcashequivalents
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| I.Cash | 1,371,412,259.52 | 1,353,615,305.93 |
| Including:Cashonhand | 4,283,695.11 | 2,633,018.72 |
| Bankdepositsondemand | 1,367,128,564.41 | 1,079,820,776.67 |
| Othermonetaryassetsondemand | 271,161,510.54 | |
| III.Endingbalanceofcashandcashequivalents | 1,371,412,259.52 | 1,353,615,305.93 |
(3)Monetaryassetsnotclassifiedascashandcashequivalents
Unit:RMB
| Item | Amountduringthecurrentperiod | Previousperiod | Reasonfornotclassifyingtheitemascashandcashequivalents |
| Bankdeposits--timedepositsoflessthanoneyear | 673,484,482.54 | 184,470,284.27 | TheCompanywillholdtimedepositstomaturity,notforthepurposeofmeetingshort-termcashneedsforexternalpayments. |
| Othermonetaryfunds–deposits,etc. | 4,024,123.14 | Restrictiononuse | |
| Bankdeposits--interestreceivable | 10,960,046.31 | 16,142,334.69 | Interestsreceivable |
| Total | 684,444,528.85 | 204,636,742.10 |
63.Foreigncurrencymonetaryitems
(1)Foreigncurrencymonetaryitems
Unit:RMB
| Item | Closingforeigncurrencybalance | Exchangerate | EndingbalanceconvertedtoRMB |
| Monetarycapital | |||
| Ofwhich:USD | 163,798,470.65 | 7.1884 | 1,177,448,926.42 |
| EUR | 335,882.35 | 7.5257 | 2,527,749.80 |
| HKD | 1,089,000.19 | 0.9260 | 1,008,414.18 |
| JPY | 1,609,074.00 | 0.0462 | 74,339.22 |
| GBP | 27.18 | 9.0765 | 246.70 |
| Dong | 227,162,816,717.20 | 0.0003 | 64,125,443.48 |
| MMK | 1,171,741,241.41 | 0.0034 | 4,010,926.28 |
| Riel | 541,762,914.00 | 0.0018 | 967,554.91 |
| Accountsreceivable | |||
| Ofwhich:USD | 83,689,016.91 | 7.1884 | 601,590,129.18 |
| EUR | 197,065.19 | 7.5257 | 1,483,053.50 |
| HKD | |||
| Dong | 18,024,192,860.00 | 0.0003 | 5,088,021.73 |
| MMK | 791,263,194.00 | 0.0034 | 2,708,531.61 |
| Otherreceivables: | |||
| Ofwhich:USD | 158,445.20 | 7.1884 | 1,138,967.47 |
| EUR | 15,500.00 | 7.5257 | 116,648.35 |
| JPY | 1,515,285.11 | 0.0462 | 70,006.17 |
| Dong | 1,516,160,812.38 | 0.0003 | 427,994.75 |
| MMK | 111,900,600.00 | 0.0034 | 383,041.08 |
| Accountspayable: | |||
| Ofwhich:USD | 10,790,467.56 | 7.1884 | 77,566,197.01 |
| JPY | 3,227,926.90 | 0.0462 | 149,130.22 |
| EUR | 24,965.93 | 7.5257 | 187,886.10 |
| Dong | 85,132,203,299.20 | 0.0003 | 24,031,980.13 |
| MMK | 653,931,430.40 | 0.0034 | 2,238,439.30 |
| Otherpayables: | |||
| Ofwhich:USD | 3,836.59 | 7.1884 | 27,578.94 |
| Dong | 303,000,000.00 | 0.0003 | 85,533.40 |
| MMK | 1,000,000.00 | 0.0034 | 3,423.05 |
| Short-termborrowings: | |||
| Ofwhich:USD | 91,600,761.92 | 7.1884 | 658,462,916.96 |
| Dong | 178,211,257,547.00 | 0.0003 | 50,306,982.54 |
| Long-termborrowings | |||
| Ofwhich:USD | |||
| EUR | |||
| HKD |
(2)Notestooverseasentitiesincluding:forsignificantoverseaentities,mainoperatingplace,recordingcurrencyandselectionbasisshallbedisclosed;iftherearechangesinrecordingcurrency,relevantreasonsshallbedisclosed.?Applicable□NotapplicableTheoperatingplacesoftheCompany’ssubsidiarieswereHongKong,Burma,America,Vietnam,SingaporeandCambodia,andtherecordingcurrencywasHKDforHongKongandUSDforotheroverseascompanies.
64.Leases
(1)TheCompanyWasLessee:
?Applicable□NotapplicableVariableleasepaymentsthatarenotcoveredinthemeasurementoftheleaseliabilities
□Applicable?NotapplicableSimplifiedshort-termleaseorleaseexpenseforlow-valueassets?Applicable□Notapplicable
| Item | Amountofthecurrentperiod |
| Expenserelatingtoshort-termleases | 487,369.18 |
| Low-valueleaseexpenses | |
| Variableleasepaymentsthatarenotcoveredinthemeasurementoftheleaseliabilities | |
| Total | 487,369.18 |
Circumstancesinvolvingsaleandleasebacktransactions
(2)TheCompanyWasLessor:
OperatingleaseswiththeCompanyaslessor?Applicable□Notapplicable
Unit:RMB
| Item | Rentalincome | Ofwhich:Incomerelatedtovariableleasepaymentsnotincludedinleasereceipts |
| Rentalincome | 3,421,414.69 | |
| Total | 3,421,414.69 |
FinanceleaseswiththeCompanyaslessor
□Applicable?NotapplicableUndiscountedleasereceiptsforeachofthenextfiveyears?Applicable□Notapplicable
Unit:RMB
| Item | Undiscountedleasereceiptsperyear | |
| Investmentsattheendoftheperiod | Investmentsatthebeginningoftheperiod | |
| Thefirstyear | 1,240,588.20 | 1,215,336.80 |
| Thesecondyear | 426,120.60 | 310,390.00 |
| Thethirdyear | 20,160.00 | |
| Totalundiscountedleasereceiptsafterfiveyears-- | 1,686,868.80 | 1,525,726.80 |
(3)RecognitionofGainorLossonSalesunderFinanceLeaseswiththeCompanyasaManufacturerorDistributor
□Applicable?NotapplicableVIII.ResearchandDevelopmentExpenditure
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod |
| Laborcost | 111,941,746.30 | 127,993,607.00 |
| Materialexpense | 63,752,049.15 | 79,121,927.42 |
| Depreciationcharge | 17,615,844.34 | 17,240,537.12 |
| Other | 13,511,281.92 | 15,419,271.64 |
| Total | 206,820,921.71 | 239,775,343.18 |
| Ofwhich:Expensedresearchanddevelopmentexpenditure | 206,820,921.71 | 239,775,343.18 |
1.Developmentcosts
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance | ||
| Internaldevelopment | Otherincrease | Recognizedas | Includedinthecurrentperiod | |||
| Expense | Intangibleassets | Profitandloss | ||||
| R&Dofproducts | 206,820,921.71 | 206,820,921.71 | ||||
| Total | 206,820,921.71 | 206,820,921.71 | ||||
IX.ChangeofConsolidationScope
1.DisposalofsubsidiariesWhethertherewereanytransactionsoreventsduringtheReportingPeriodinwhichcontrolofsubsidiarieswaslost
□Yes?NoWhethertherewasastep-by-stepdisposalofinvestmentsinsubsidiariesthroughmultipletransactionsandlossofcontrolduringtheReportingPeriod
□Yes?No
2.OtherreasonsforchangesofconsolidationscopeNotesofotherchangesinthecombinationscope(e.g.,newsubsidiaries,liquidationofsubsidiaries,etc.)andrelevantsituations:
Inthisyear,thesubsidiaryShanghaiZhinuoTextileNewMaterialsCo.,Ltd.wasderegistered,andanewsubsidiary,TianyiApparelCo.,Ltd.,wasestablished.X.EquityinOtherEntities
1.EquityinSubsidiary
(1)CompositionsoftheGroup
Unit:RMB
| Name | Registeredcapital | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | ||||||
| LuThai(HongKong)TextileCo.,Ltd.(hereinafter | 128,771,800.00 | HongKong | HongKong | Wholesaleandretailindustry | 100.00% | Set-up | |
| referredtoas“LuThai(HK)”) | |||||||
| 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 | |
| ShandongLulianNewMaterialsCo.,Ltd.(hereinafterreferredtoas“LulianNewMaterials”) | 900,000,000.00 | Zibo | Zibo | Manufacturingindustry | 75.00% | 25.00% | Set-up |
| ShandongLujiaIMP.&EXP.Co.,Ltd.(hereinafterreferredtoas“LujiaIMP.&EXP.”) | 10,000,000.00 | Zibo | Zibo | Importandexporttrade | 100.00% | Set-up | |
| BeijingZhishuManagementConsultingCo.,Ltd.(hereinafterreferredtoas“ZhishuConsulting”) | 2,000,000.00 | 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 | |
| TianyiApparelCo.,Ltd.(hereinafterreferredtoas“TianyiApparel”) | 10,719,000.00 | Burma | Burma | Manufacturingindustry | 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% | 21,928,134.59 | 382,839,454.92 |
(3)Themainfinancialinformationofsignificantnotwholly-ownedsubsidiary
Unit:RMB
| Name | Endingbalance | Beginningbalance | ||||||||||
| Currentassets | Non-current | Totalassets | Currentliabilities | Non-current | Totalliabilities | Currentassets | Non-current | Totalassets | Currentliabilities | Non-current | Totalliabilities | |
| assets | liability | assets | liability | |||||||||
| LufengCompanyLimited | 1,096,938,632.35 | 648,235,124.19 | 1,745,173,756.54 | 156,224,247.67 | 50,393,232.00 | 206,617,479.67 | 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 |
Unit:RMB
| Name | Amountofthecurrentperiod | Amountofthepreviousperiod | ||||||
| OperatingRevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | OperatingRevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | |
| LufengCompanyLimited | 1,335,514,726.95 | 89,930,961.56 | 89,951,954.04 | 401,125,951.79 | 1,375,045,198.83 | 57,390,726.91 | 57,411,695.78 | -79,614,020.15 |
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 | 97,221,745.84 | 193,217,687.26 | 148,022,853.32 | 210,335,493.18 |
| Non-currentassets | ||||
| Totalassets | 97,221,745.84 | 193,217,687.26 | 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 | 93,967,879.79 | 193,217,687.26 | 144,768,987.27 | 210,335,493.18 |
| Equityofnon-controllinginterests | ||||
| EquityattributabletoshareholdersoftheCompanyastheparent | 93,967,879.79 | 193,217,687.26 | 144,768,987.27 | 210,335,493.18 |
| Netassetssharescalculatedattheshareholdingproportion | 31,325,690.58 | 92,010,262.67 | 48,257,699.71 | 100,161,761.85 |
| Adjusteditems | ||||
| -Goodwill | ||||
| -Unrealizedprofitofinternaltransactions | ||||
| -Others | -3,251,681.96 | -4,881,981.79 | ||
| Carryingvalueofinvestmenttoassociatedenterprises | 31,325,690.58 | 88,758,580.71 | 48,257,699.71 | 95,279,780.06 |
| Fairvalueofequityinvestmentsinassociatedenterpriseswithpubliclyquotedprices | ||||
| OperatingRevenue | ||||
| Netprofit | -50,801,107.48 | -17,117,805.92 | 23,601,152.08 | -45,732,975.48 |
| Netprofitfromdiscontinuedoperations | ||||
| Othercomprehensiveincome | ||||
| Totalcomprehensiveincome | -50,801,107.48 | -17,117,805.92 | 23,601,152.08 | -45,732,975.48 |
| Dividendsreceivedfromtheassociatesinthecurrentperiod |
XI.GovernmentGrants
1.GovernmentGrantsIncludedinDeferredIncome
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance | Reasonforformation |
| Governmentgrants | 151,768,947.92 | 1,090,000.00 | 7,463,826.81 | 145,395,121.11 | Governmentgrants |
| Total | 151,768,947.92 | 1,090,000.00 | 7,463,826.81 | 145,395,121.11 |
(1)Governmentgrantsincludedindeferredincomeandsubsequentlymeasuredusingthegrossmethod
| Item | Category | Beginningbalance | Amountofnewlysubsidyforthecurrentperiod | Amountscarriedforwardtoprofitorlossforthecurrentperiod | Otherchanges | Endingbalance | Listeditemscarriedforwardtoprofitorlossforthecurrentperiod | Relatedtoassets/income |
| Landsubsidy | Financialappropriation | 49,350,582.41 | 1,354,251.84 | 47,996,330.57 | Othergains | Relatedtoassets | ||
| Subsidiesforequipment | Financialappropriation | 93,120,347.28 | 5,831,228.28 | 86,789,119.00 | Othergains | Relatedtoassets | ||
| R&Dsubsidies | Financialappropriation | 8,301,233.50 | 1,090,000.00 | 230,115.21 | 9,661,118.29 | Othergains | Relatedtoincome | |
| Subsidyforpublicrentalhousing | Financialappropriation | 996,784.73 | 48,231.48 | 948,553.25 | Othergains | Relatedtoassets | ||
| Total | 151,768,947.92 | 1,090,000.00 | 7,463,826.81 | 145,395,121.11 |
2.GovernmentGrantsIncludedinCurrentProfitorLossUsingtheGrossMethod
| Item_110723 | Category | Amountsincludedinprofitorlossforthecurrentperiod | Amountsincludedinprofitorlossinthepriorperiod | Listeditemsincludedinprofitorloss | Relatedtoassets/income |
| Subsidyforenvironmentalprotection | Financialappropriation | 953,396.23 | 5,283,018.87 | Othergains | Relatedtoincome |
| Humanresourcessubsidy | Financialappropriation | 5,460,951.18 | 4,382,702.42 | Othergains | Relatedtoincome |
| Specialfundsfortheconversionofnewandoldindustrialkineticenergy | Financialappropriation | 3,500,000.00 | Othergains | Relatedtoincome | |
| Financingsubsidy | Financialappropriation | 700,000.00 | 952,000.00 | Othergains | Relatedtoincome |
| Specialfundforforeigntradeandcommerceandcirculation | Financialappropriation | 691,350.26 | 826,389.50 | Othergains | Relatedtoincome |
| Strengthentheenterprisegovernmentsubsidy | Financialappropriation | 768,900.00 | Othergains | Relatedtoincome | |
| R&Dsubsidy | Financialappropriation | 230,000.00 | 210,000.00 | Othergains | Relatedtoincome |
| Rewardforscienceandtechnology | Financialappropriation | 50,000.00 | 150,000.00 | Othergains | Relatedtoincome |
| Rewardforsupportinghigh-qualitydevelopment | Financialappropriation | 200,000.00 | 10,000.00 | Othergains | Relatedtoincome |
| Designreward | Financialappropriation | 71,000.00 | 10,000.00 | Othergains | Relatedtoincome |
| Total | 8,356,697.67 | 16,093,010.79 |
3.GovernmentGrantsUsingtheNetMethodtoReduceRelatedCosts
| Item | Category | Amountsofoffsettingrelatedcostsinthecurrentperiod | Amountsofoffsettingrelatedcostsinthepreviousperiod | Listeditemsofoffsettingrelatedcosts | Relatedtoassets/income |
| Financialdiscountfundsforloans | Financialdiscount | 126,041.67 | 167,291.67 | Financialexpenses | Relatedtoincome |
| Total | 126,041.67 | 167,291.67 |
XII.RisksAssociatedwithFinancialInstruments
1.VariousTypesofRisksArisingfromFinancialInstrumentsTheCompany’smajorfinancialinstrumentsincludemonetarycapital,notesreceivable,accountsreceivable,accountsreceivablefinancing,otherreceivables,tradingfinancialassets,othernon-currentfinancialassets,othernon-currentassets-timedepositsoveroneyear,accountspayable,otherpayables,short-termborrowings,currentportionofnon-currentliabilities,othercurrentliabilities-endorsedoutstandingnotes,long-termborrowings,bondspayable,leaseliabilities,andotherequityinstruments.DetailsofvariousfinancialinstrumentsaredisclosedinrelevantNotes.Risksrelatedtothesefinancialinstruments,andriskmanagementpoliciestheCompanyhasadoptedtoreducetheserisksaredescribedasfollows.TheCompanymanagementmanagesandmonitorstheriskexposuretoensuretheaboverisksarecontrolledinalimitedscope.
1.RiskmanagementobjectivesandpoliciesTheCompanyhasconductedtheriskmanagementtoachieveanappropriatebalancebetweentheriskandtheincomeandtominimizetheadverseinfluenceoffinancialrisksontheCompany’sfinancialperformance.Accordingtosuchriskmanagementobjective,theCompanyhasformulatedcorrespondingriskmanagementpolicytorecogniseandanalysepossiblerisksencounteredbytheCompany,settheappropriateacceptablerisklevelanddesignedcorrespondinginternalcontrolprocedurestomonitortheCompany’srisklevel.Meanwhile,theCompanywillregularlyreviewtheseriskmanagementpoliciesandrelevantinternalcontrolsystemsoastocaterforthemarketorrespondtoanychangeintheCompany’sbusinessoperations.Accordingly,theCompany’sinternal
auditdepartmentwillalsoregularlyorrandomlycheckwhethertheinternalcontrolsystemisimplementedinconformitywithrelevantriskmanagementpolicies.ThemajorriskscausedbyfinancialinstrumentsoftheCompanyarecreditrisk,liquidityriskandmarketrisk(includingforeignexchangerisk,interestrateriskandcommoditypricerisk).TheBoardofDirectorsshallberesponsibleforplanningandestablishingtheriskmanagementframeworkfortheCompany,determiningtheCompany’sriskmanagementpoliciesandrelevantguidelinesandmonitoringtheimplementationofvariousriskmanagementmeasures.However,theCompanyhasestablishedcorrespondingriskmanagementpoliciestorecogniseandanalysepossiblerisksencounteredbytheCompany.Besides,variousrisksarespecifiedintheseriskmanagementpolicies,includingthecreditrisk,theliquidityriskandthemarketriskmanagementetc.Onaregularbasis,theCompanywillevaluatethespecificmarketingenvironmentandvariouschangesintheCompany’sbusinessoperationssoastodeterminewhetheranyriskmanagementpolicyandsystemneedbeupdated.
(1)CreditriskCreditRiskmeansthattheCompanywillsufferanyfinanciallossesduetothecounterparty’sfailureinfulfillingthecontractobligations.TheCompanyshallmanagethecreditriskbasedonthespecificGroupClassification,andthecreditriskmainlyarisesfrombankdeposit,notesreceivable,accountsreceivable,otherreceivablesandinvestmentindebtobligationsetc.TheGroup’sbankdepositsaremainlysavedinstate-ownedbanksandotherlargeandmedium-sizedbanks.TheGroup’sbankdepositsareexpectednottosufferanymajorcreditrisks.Fornotesreceivable,accountsreceivable,andotheraccountsreceivable,theCompanyhasestablishedrelevantpoliciestocontrolthecreditriskexposure.Accordingtotheclient’sfinancialstatus,creditrecordandotherfactors(includingthecurrentmarketcondition),theCompanywillevaluatetheclient’screditqualificationandsetcorrespondingcreditperiod.TheCompanyregularlymonitorsthecreditrecordsofcustomers.Forcustomerswithbadcreditrecords,theCompanyadoptedcorrespondingmethods,suchaswrittenpressingforpayment,shorteningcreditperiod,andcancellingcreditperiod,soastoensuretheCompany’soverallcreditriskiscontrollable.ThehugestcreditriskexposurebornebytheCompanyisthebookvalueofeachfinancialassetreflectedinthebalancesheet.Intermsofaccountsreceivable,thetop5customersinaccountsreceivablewereaccountedfor
22.16%ofthetotalamountofaccountsreceivableoftheCompany(24.80%in2023).Asforotherreceivables,thetop5oftheendingbalanceaccordingtothearrearspartywasaccountedfor69.61%ofthetotalamountofotherreceivablesoftheCompany(69.38%in2023).InvestmentindebtobligationsTheCompanygenerallylimitsitsexposuretocreditriskbyinvestingonlyinsecuritiesforwhichthereisanactivemarket(otherthanlong-termstrategicinvestments)andforwhichthecounterparthasahighcreditrating.TheGroupsupervisedthechangesofcreditriskthroughtrackingthepublishedexternalcreditratings.Inordertomakesurewhetherthecreditratingwasthelatest,andwhetherthecreditriskhasincreasedobviouslyofevaluationreportdatebutnotbeenreflectedinthepublishedexternalratings,theCompanyhassupplementedthroughexaminingthechangesofbondyieldandtheavailablenewsandsupervisioninformation.
Onthebalancesheetdate,thecarryingvalueofinvestmentindebtobligationsoftheCompanyarelistedasfollowsaccordingtoreportitems.
| Endingbalance | Closingbalanceoflastyear | |
| Financialassetheldfortrading | 230,874,092.14 | 203,706,725.51 |
| Debtinvestmentduewithinoneyear | 154,176,585.64 | |
| Total | 385,050,677.78 | 203,706,725.51 |
(2)LiquidityriskLiquidityRiskreferstotheriskofcapitalshortageencounteredbytheCompanyduringthecashpaymentorthesettlementofotherfinancialassets.Duringthemanagementofliquidityrisk,theCompanyshallreserveandmonitorcorrespondingcashandcashequivalentdeemedsufficientbythemanagementsoastomeettheCompany’soperationalrequirementsandmitigatetheimpactcausedbythecashflowfluctuation.TheGroup’smanagementwillmonitortheuseofbankloansandguaranteethefulfilmentofloanagreement.Meanwhile,majorfinancialinstitutionsshallpromisetoprovidetheGroupwithsufficientreservefundsinordertosatisfytheshort-termandlong-termfunddemand.TheGroupshallraiseitsworkingcapitalbasedonthecapitalgeneratedfrombusinessoperationsandbankloans.Attheendoftheperiod,theanalysisoffinancialliabilitiesandoff-balancesheetguaranteeitemsheldbytheCompanybasedonthematurityperiodoftheundiscountedremainingcontractualcashflowsisasfollows:
| Item | Endingbalance | |||
| Withinoneyear | Withinonetofiveyears | Over5years | Total | |
| Financialliabilities: | ||||
| Short-termloan | 855,549,333.86 | 855,549,333.86 | ||
| Accountspayable | 272,079,091.51 | 272,079,091.51 | ||
| Otherpayables | 17,437,799.60 | 17,437,799.60 | ||
| Long-termborrowings | 21,948,346.33 | 405,344,416.41 | 427,292,762.74 | |
| BondsPayable | 1,399,844,700.00 | 1,399,844,700.00 | ||
| Leaseliabilities | 20,183,287.07 | 58,411,429.64 | 54,533,430.61 | 133,128,147.33 |
| Total | 1,187,197,858.37 | 1,863,600,546.05 | 54,533,430.61 | 3,105,331,835.04 |
Attheendofthepreviousyear,theanalysisoffinancialliabilitiesandoff-balancesheetguaranteeitemsheldbytheCompanybasedonthematurityperiodoftheundiscountedremainingcontractualcashflowsisasfollows:
| Item | Closingbalanceoflastyear | |||
| Withinoneyear | Withinonetofiveyears | Over5years | Total | |
| Financialliabilities: | ||||
| Short-termloan | 586,472,143.14 | 586,472,143.14 | ||
| Accountspayable | 275,502,915.05 | 275,502,915.05 | ||
| Otherpayables | 47,549,373.52 | 47,549,373.52 | ||
| Long-termborrowings | 96,845,778.69 | 269,810,195.43 | 366,655,974.12 | |
| BondsPayable | 1,399,849,400.00 | 1,399,849,400.00 | ||
| Leaseliabilities | 11,411,875.72 | 56,966,108.73 | 55,230,630.61 | 123,608,615.06 |
| Total | 1,017,782,086.12 | 1,726,625,704.16 | 55,230,630.61 | 2,799,638,420.89 |
Theamountsoffinancialliabilitiesdisclosedinthetableaboverepresentundiscountedcontractualcashflowsandmaydifferfromthecarryingamountsinthebalancesheet.
(3)MarketriskThefinancialinstrument’smarketriskreferstothefluctuationriskoffairvalueoffinancialinstrumentorfuturecashflowcausedbythechangesofmarketprice,includingtheinterestraterisk,theexchangerateriskandotherpricerisk.InterestrateriskInterestrateriskreferstotheriskoffluctuationsinthefairvalueorfuturecashflowsoffinancialinstrumentsarisingfromchangesinmarketinterestrates.Theinterestratecanderivefromtherecognisedinterest-bearingfinancialinstrumentsandunrecognisedfinancialinstruments(includingcertainloancommitment).TheGroup’sinterestrateriskmainlyarisesfromthelong-terminterest-bearingdebt,suchasthebankloan.FinancialliabilitiesbasedonthefloatinginterestratewillcausethecashflowinterestraterisktotheCompany,andfinancialliabilitiesbasedonthefixedinterestratethefairvalueinterestraterisk.However,theCompanyhaspaidcloseattentiontheimpactofinterestratefluctuationsontheCompany’sinterestraterisk.Atpresent,theCompanyhasnottakenanyinterestratehedgingmeasures.Theriseofinterestratewillincreasethecostofnewly-addedinterest-bearingdebtsandtheinterestcostoftheCompany’sunsettledinterest-bearingdebtsbasedonthefloatinginterestrate,andcausemajoradverseinfluenceontheCompany’sfinancialperformance.Themanagementwilltimelymakecorrespondingadjustmentaccordingtothelatestmarketsituation,andcorrespondinginterestrateswapwillbearrangedtoreducetheinterestraterisk.Theinterest-bearingfinancialinstrumentsheldbytheCompanyareasfollows(Unit:RMB’0,000):
| Item | AmountofCurrentPeriod | AmountofthePreviousPeriod |
| Fixed-interestfinancialinstruments | ||
| Including:short-termborrowings | 70,968.68 | 46,535.28 |
| Currentportionoflong-termborrowings | 425 | 230 |
| Long-termborrowings | 6,174.19 | |
| BondsPayable | 150,942.04 | 147,657.21 |
| Total | 222,335.73 | 200,596.68 |
| Floating-interestfinancialinstruments | ||
| Financialassets | 38,505.07 | 20,370.67 |
| Including:tradingfinancialassets | 23,087.41 | 20,370.67 |
| Debtinvestmentduewithinoneyear | 15,417.66 | |
| Financialliabilities | 40,467.05 | 40,023.31 |
| Including:short-termborrowings | 11,535.20 | |
| Currentportionoflong-termborrowings | 842.64 | 8,663.00 |
| Long-termborrowings | 39,624.41 | 19,825.11 |
| Total | 78,972.12 | 60,393.98 |
On31December2024,ifthelendingratecalculatedatfloatinginterestrateupordown100basispointswithothervariablesunchanged,thenetprofitandshareholders’equitywillbedecreasedorincreasedaboutRMB3,439,700(comparedtoRMB3,479,700asoftheendoflastyear).ForfinancialinstrumentsheldatthebalancesheetdatethatexposetheCompanytofairvalueinterestraterisk,theimpactonnetincomeandshareholders’equityinthesensitivityanalysisaboveistheimpactofre-measuringtheabovefinancialinstrumentsatthenewinterestrate,assumingthatthereisachangeininterestratesatthebalancesheetdate.Forfloatingratenon-derivativeinstrumentsheldatthebalancesheetdatethatexposetheCompanytocashflowinterestraterisk,theimpactonnetincomeandshareholders’equityintheabovesensitivityanalysisistheimpactofchangesintheaboveinterestratesoninterestexpenseorincomeestimatedonanannualizedbasis.Thepreviousyear’sanalysiswasbasedonthesameassumptionsandmethodology.ForeignexchangeriskForeignexchangeriskisreferredtothefluctuationriskoffairvalueoffinancialinstrumentsorfuturecashflowsresultedfromthechangeofforeignexchangerate.Theforeignexchangeratewasoriginatedfromthefinancialinstrumentsdenominatedinforeigncurrenciesotherthantherecordingcurrency.TheCompany’srecognisedforeigncurrencyassetsandliabilitiesaswellasfutureforeigncurrencytransactions(thedenominationcurrenciesofforeigncurrencyassetsandliabilitiesandforeigncurrencytransactionsaremainlyUSD,Dong,EUR,andHKD)areexposedtoforeignexchangerisk.On31December2024,theamountofforeigncurrencyfinancialassetsandforeigncurrencyfinancialliabilitiesconvertedtorenminbiisasfollows(Unit:RMB’0,000):
| Item | Foreigncurrencyliabilities | Foreigncurrencyassets | ||
| Endingbalance | Closingbalanceoflastyear | Endingbalance | Closingbalanceoflastyear | |
| USD | 73,605.67 | 61,952.45 | 178,017.80 | 121,933.38 |
| EUR | 18.79 | 154.36 | 412.75 | 386.82 |
| JPY | 14.91 | 248.23 | 14.43 | 123.83 |
| HKD | 100.84 | 2,124.70 | ||
| GBP | 0.02 | 0.05 | ||
| CHF | 0.01 | |||
| Dong | 7,442.45 | 5,439.51 | 6,964.15 | 6,351.53 |
| MMK | 224.19 | 22.97 | 710.25 | 292.27 |
| Riel | 96.76 | 13.27 | ||
| Total | 81,306.01 | 67,817.51 | 186,317.00 | 131,225.87 |
TheGrouphaspaidcloseattentiontheimpactofexchangeratefluctuationsontheGroup’sexchangeraterisk.TheCompanyhassignedcontractsoffuturesexchangeforthepurposeoftheaversionofforeignexchangerisk.Asattheendofeachreportingperiod,fortheGroup’smonetary
capital,billsreceivable,accountsreceivable,accountspayable,short-termborrowingsandotherpayablesdenominatedinforeigncurrencies,assuminga10%appreciationordepreciationofRMBagainstforeigncurrencies,whileotherfactorsremainunchanged,theimpactofpossiblereasonablechangesintheCompany’sforeigncurrencyexchangerateagainstRMBontheCompany’sprofitandlossforthecurrentperiodisasfollows(Unit:RMB’0,000):
| Exchangeratefluctuations | Thisyear | Lastyear | ||
| Impactonafter-taxprofit | Impactonshareholders’equity | Impactonafter-taxprofit | Impactonshareholders’equity | |
| 10%appreciationagainstRMB | -8,567.83 | -8,567.83 | -5,101.33 | -5,101.33 |
| 10%depreciationagainstRMB | 8,567.83 | 8,567.83 | 5,101.33 | 5,101.33 |
OtherpricerisksOtherpricerisksaretherisksoffluctuationsduetochangesinmarketpricesotherthanexchangerateriskandinterestraterisk,whetherthesechangesresultfromfactorsrelatingtoasinglefinancialinstrumentoritsissuer,orfromthoserelatingtoallsimilarfinancialinstrumentstradedwithinthemarket.Otherpriceriskscanarisefromchangesincommodityprices,stockmarketindex,equityinstrumentprices,andotherriskvariables.InvestmentsinlistedequityinstrumentsheldbytheCompany,whichareclassifiedastransactionalfinancialassetsaremeasuredatfairvalueatthebalancesheetdate.Asaconsequence,theCompanyisundertakingtheriskofchangesinequitymarkets.TheCompanycloselymonitorstheimpactofpricechangesonthepriceriskoftheCompany’sinvestmentsinequityandsecurities.TheCompanydoesnotcurrentlytakeanystepsforotherpriceriskaversion.Nevertheless,themanagementisliableforsupervisorycontrolonotherpricerisksandshallconsiderreducingthepriceriskofinvestmentsinequityandsecuritiesbyholdingadiversifiedportfolioinvestmentinequityandsecuritieswhenrequired.Withallothervariablesbeingconstant,thepre-taximpactontheCompany’sprofitorlossforthecurrentperiodandothercomprehensiveincomeofa10%changeinthepriceofinvestmentsinequityandsecuritiesfortheyearisasfollows(Unit:RMB’0,000):
| Item | After-taxprofitsup(down) | Othercomprehensiveincomeup(down) | ||
| AmountofCurrentPeriod | AmountofthePreviousPeriod | AmountofCurrentPeriod | AmountofthePreviousPeriod | |
| Duetoincreaseinthepriceofinvestmentsinequitysecurities | 3,932.29 | 4,333.58 | ||
| Duetoadeclineinthepriceofinvestmentsinequitysecurities | -3,932.29 | -4,333.58 | ||
2.CapitalmanagementTheobjectivesofcapitalmanagementpoliciesoftheCompanyaretoensurethecontinuousoperationoftheCompanysoastoprovidereturntoshareholdersandbenefitotherstakeholders,aswellastoreducecapitalcostbymaintainingtheoptimalcapitalstructure.Inordertomaintainoradjustcapitalstructure,theCompanymightadjustfinancingmethodandthedividendspaidtoshareholders,returncapitaltoshareholders,issuenewsharesandotherequityinstrumentorsellassetstoreducedebts.
TheGroupsupervisedthecapitalstructurebasedontheasset-liabilityratio(namelytotalliabilitiesdividetotalassets).On31December2024,theasset-liabilityratiowas29.49%oftheCompany(28.39%on31December2023).
3.Financialassettransfer
(1)Classificationoftransfermethods
| Transfermethods | Natureoffinancialassetstransferred | Amountoffinancialassetstransferred | Derecognition | Basisfordeterminingderecognition |
| Billsendorsement | Receivablesfinancing | 125,400,149.23 | Derecognition | Almostallrisksandremunerationhavebeentransferred. |
| Billsdiscounting | Receivablesfinancing | 29,567,761.61 | Derecognition | Almostallrisksandremunerationhavebeentransferred. |
| Billsendorsement | Notesreceivable | 33,546,850.71 | Notderecognised | |
| Billsdiscounting | Notesreceivable | 916,924.50 | Notderecognised | |
| Total | 189,431,686.05 |
(2)Financialassetsderecognisedduetotransfer
| Item | Transfermethods | Derecognisedamount | Gainsorlossesrelatedtoderecognition |
| Receivablesfinancing | Billsendorsement | 125,400,149.23 | |
| Receivablesfinancing | Billsdiscounting | 29,567,761.61 | -102,815.32 |
| Total | 154,967,910.84 | -102,815.32 |
ThetotalcarryingvalueofthebankacceptancebillsendorsedbytheCompanytothesupplierbutnotdueandbankacceptancebillsdiscountedtothebankbutnotdueamountedtoRMB189,431,686.05,ofwhichtheCompanybelievedthatthenotesreceivablewithacarryingvalueofRMB154,967,910.84(31December2023:RMB151,938,439.51)hadtransferredalmostallrisksandrewardsatthetimeofdiscounting,meetingtheconditionsforderecognitionoffinancialassets.Therefore,therelatednotesreceivablewerederecognised.Themaximumexposuretoriskthatcontinuestobeassociatedwiththesederecognisednotesreceivableisequaltotheundiscountedcashflowsfromtherepurchaseofthenotes,whichisequaltothecarryingvalueofthenotesreceivable.TheCompanydoesnotconsiderthecontinuedinvolvementinthefairvalueofthederecognisednotesreceivabletobematerial.
(3)Amountofassetsandliabilitiesformedduetotransferoffinancialassetsandcontinuousinvolvement
| Item | Assettransfermethods | Amountofassetsformedduetocontinuousinvolvement | Amountofliabilitiesformedduetocontinuousinvolvement |
| Notesreceivable | Billsendorsement | 33,546,850.71 | 33,546,850.71 |
| Notesreceivable | Billsdiscounting | 916,924.50 | 916,924.50 |
| Total | 34,463,775.21 | 34,463,775.21 |
XIII.DisclosureofFairValue
1.EndingFairValueofAssetsandLiabilitiesatFairValue
Unit:RMB
| Item | Closingfairvalue | |||
| Fairvaluemeasurementitemsatlevel1 | Fairvaluemeasurementitemsatlevel2 | Fairvaluemeasurementitemsatlevel3 | Total | |
| I.Consistentfairvaluemeasurement | -- | -- | -- | -- |
| (I)Tradingfinancialassets | 117,978,959.15 | 575,993,713.49 | 693,972,672.64 | |
| 1.Financialassetsatfairvaluethroughprofitorloss | 117,978,959.15 | 575,993,713.49 | 693,972,672.64 | |
| (1)Investmentindebtinstruments | 230,874,092.14 | 230,874,092.14 | ||
| (2)Equityinvestments | 117,978,959.15 | 344,643,171.16 | 462,622,130.31 | |
| (3)Derivativefinancialassets | 476,450.19 | 476,450.19 | ||
| (II)Accountsreceivablefinancing | 10,184,900.59 | 10,184,900.59 | ||
| (III)Othernon-currentfinancialassets | 82,800,000.00 | 82,800,000.00 | ||
| (VI)Tradingfinancialliabilities | 15,858,713.22 | 15,858,713.22 | ||
| Ofwhich:Derivativefinancialliabilities | 15,858,713.22 | 15,858,713.22 | ||
| II.InconsistentFairValueMeasurement | -- | -- | -- | -- |
2.MarketPriceRecognitionBasisforConsistentandInconsistentFairValueMeasurementItemsatLevel1Quotedpricesinactivemarketsforidenticalassetsorliabilities(unadjusted).
3.Valuationtechniqueadoptedandnatureandamountdeterminationofimportantparametersforconsistentandinconsistentfairvaluemeasurementitemsatlevel2TheCompanydeterminesthefairvalueofstructureddepositsandwealthmanagementproductsbasedontheprospectiveearningrateasagreedinthecontract.TheCompanydeterminesthefairvalueoffundproductsbasedonthechangesinnetvaluepublishedbytheprivateequityfunds.TheCompanydeterminesthefairvalueofoption-basedproductsbasedonbankforwardforeignexchangequotationsattheendoftheperiod.
4.Valuationtechniqueadoptedandnatureandamountdeterminationofimportantparametersforconsistentandinconsistentfairvaluemeasurementitemsatlevel3Fortheunlistedequityinvestment,theCompanyadoptsthecomparablelistedcompanycomparisonmethod,andthenon-observableinputvalueofthecomparablelistedcompanycomparisonmethodincludestheliquiditydiscount.TheinvestmentintoShandongHongqiaoThermoelectricCo.,Ltd.madebyLuqunTextile(theCompany’ssubsidiary)isexpectedtobeheldinthelongrunforobtainingthediscountonpowerpurchase.Asnorevenuedistributionrightisvestedintheinvestment,theinvestedunit’soperating
profitandlossarenotsharedorborne,andtheequitytransferisnotproposed,theCompanyregardsitasthefinancialassetwhichshallbemeasuredbasedonthefairvalueandwhosevariationsareincludedinthecurrentprofitandloss,andtheinvestmentcostisdeemedasthefairvalueofthefinancialasset.Foraccountsreceivablesfinancingatfairvalueandthechangesincludedinothercomprehensiveincome,itsfairvalueshallbedeterminedbythediscountcashflowmethod.
5.ReconciliationofFairValueMeasurementsClassifiedinLevel3oftheFairValueHierarchy
| Item(amountforthecurrentperiod) | Beginningbalance | TransferredtoLevel3 | TransferredoutofLevel3 | Totalgainsorlossesforthecurrentperiod | Purchase,issuance,sale,andsettlement | Endingbalance | Forassetsheldattheendofthereportingperiod,thechangeinunrealisedgainsorlossesrecognisedinprofitorlossforthecurrentperiod | ||||
| Recognisedasprofitorloss | Recognisedinothercomprehensiveincome | Purchase | Issuanceof | Sale | Settlement | ||||||
| Financialassetheldfortrading: | |||||||||||
| Investmentindebtinstruments | |||||||||||
| Equityinstrumentinvestment | |||||||||||
| Othernon-currentfinancialassets | 88,750,000.00 | -5,950,000.00 | 82,800,000.00 | -5,950,000.00 | |||||||
| Total | 88,750,000.00 | -5,950,000.00 | 82,800,000.00 | -5,950,000.00 | |||||||
Thefollowingistheinformationongainsandlossesrelatedtofinancialandnon-financialassetsincludedinthegainsandlossesrecognisedinprofitorlossforthecurrentperiod:
| Item(amountforthecurrentperiod) | Gainsandlossesrelatedtofinancialassets | Gainsandlossesrelatedtonon-financialassets |
| Totalgainsorlossesforthecurrentperiodrecognisedinprofitorloss | -5,950,000.00 | |
| Forassetsheldattheendofthereportingperiod,thechangeinunrealisedgainsorlossesrecognisedinprofitorlossforthecurrentperiod | -5,950,000.00 |
Item(Amount
forthePreviousPeriod)
| Item(AmountforthePreviousPeriod) | Beginningbalance | TransferredtoLevel3 | TransferredoutofLevel3 | Totalgainsorlossesforthecurrentperiod | Purchase,issuance,sale,andsettlement | Endingbalance | Forassetsheldattheendofthereportingperiod,thechangeinunrealisedgainsorlossesrecognisedinprofitorlossforthecurrentperiod | ||||
| Recognisedasprofitorloss | Recognisedinothercomprehensiveincome | Purchase | Issuanceof | Sale | Settlement | ||||||
| Financialassetheldfortrading: | ||||||
| Investmentindebtinstruments | ||||||
| Equityinstrumentinvestment | ||||||
| Othernon-currentfinancialassets | 89,080,000.00 | -330,000.00 | 88,750,000.00 | -330,000.00 | ||
| Total | 89,080,000.00 | -330,000.00 | 88,750,000.00 | -330,000.00 |
Thefollowingistheinformationongainsandlossesrelatedtofinancialandnon-financialassetsincludedinthegainsandlossesrecognisedinprofitorlossforthepreviousperiod:
| Item(AmountforthePreviousPeriod) | Gainsandlossesrelatedtofinancialassets | Gainsandlossesrelatedtonon-financialassets |
| Totalgainsorlossesforthecurrentperiodrecognisedinprofitorloss | -330,000.00 | |
| Forassetsheldattheendofthereportingperiod,thechangeinunrealisedgainsorlossesrecognisedinprofitorlossforthecurrentperiod | -330,000.00 |
6.FairValueofFinancialAssetsandLiabilitiesNotMeasuredatFairValueThefinancialassetsandfinancialliabilitiesmeasuredatamortizedcostmainlyincludemonetaryassets,othernon-currentassets-timedeposits,notesreceivable,accountsreceivable,otherreceivables,short-termborrowings,notespayable,accountspayables,otherpayables,currentportionoflong-termborrowings,long-termborrowings,andbondspayable.XIV.RelatedPartyandRelated-partyTransactions
1.InformationrelatedtothecompanyastheparentoftheCompany
| Name | Registrationplace | Natureofbusiness | Registeredcapital | Proportionofshareheldbythecompanyastheparentagainstthecompany(%) | Proportionofvotingrightsownedbythecompanyastheparentagainstthecompany(%) |
| LuchengTextile | Zibo | Textile,chemistryandinvestment | RMB63,260,000 | 17.17% | 17.17% |
Notes:informationontheCompanyastheparentThefinalcontrollersoftheCompanyareMr.LiuZibinandMr.LiuDeming.
2.SubsidiariesoftheCompanyRefertoNoteX-1.
3.InformationonthejointventuresandassociatedenterprisesoftheCompanyRefertoNoteX-2.
4.Informationonotherrelatedparties
| Name | Relationshipwiththecompany |
| ZiboLiminPurifiedWaterCo.,Ltd.(hereinafterreferredtoas“LiminPurifiedWater”) | Sameparent |
| ZiboLuqunLandCo.,Ltd(hereinafterreferredtoas“LuqunLand”) | Sameparent |
| ZiboLuruiFineChemicalCo.,Ltd.(hereinafterreferredtoas“LuruiChemical”) | Sameparent |
| ZiboLujiaPropertyManagementCo.,Ltd.(hereinafterreferredtoas“LujiaProperty”) | Sameparent |
| HongKongTungHoiInternationalCompanyLimited(hereinafterreferredtoas“TungHoiInternational”) | Sameparent |
| ZiboChengshunHosieryCo.,Ltd.(hereinafterreferredtoas“ChengshunHosiery”) | Sameparent |
| ZiboChengshunEconomicandTradeCo.,Ltd.(hereinafterreferredtoas“ChengshunEconomicandTrade”) | Sameparent |
| ChengshunPetrochemical(ZhejiangZhoushan)Co.,Ltd.(hereinafterreferredtoas“ChengshunPetrochemical”) | Sameparent |
| ZiboLuchengPetrochemicalSalesCo.,Ltd.(hereinafterreferredtoas“LuchengPetrochemical”) | Sameparent |
| ShanghaiHengjiuTextileNewMaterialsCo.,Ltd.(hereinafterreferredtoas“HengjiuTextile”) | Sameparent |
| ShandongXiruiNewMaterialCo.,Ltd.(hereinafterreferredtoas“XiruiNewMaterial”) | Subsidiaryoftheparentcompany’ssubsidiary |
| ZiboLumeiEconomicandTradeCo.,Ltd.(hereinafterreferredtoas“LumeiEconomicandTrade”) | Sameparent |
| ZiboHeshengChemicalTradingCo.,Ltd.(hereinafterreferredtoas“HeshengChemicalTrading”) | Subsidiaryoftheparentcompany’ssubsidiary |
| ZhiFeng(Vietnam)InternationalTradingCo.,Ltd.(hereinafterreferredtoas“ZhiFengInternational”) | Subsidiaryoftheparentcompany’ssubsidiary |
| LiuZibin,XuZhinan,XuJianlyu,ZhengHuisheng,LiuDeming,ZhangZhanqi,ZhangKeming,DuLixin,ZhouZhiji,QuDongmei,PengYanli,QuanYuhua,ShangChenggang,LiuZilong,DongShibing,YuShouzheng,GuoHeng,LyuWenquan,XuFeng,ZhengWeiyin | Keymanagementpersonnel |
5.Listofrelated-partytransactions
(1)InformationonacquisitionofgoodsandreceptionoflabourserviceInformationonacquisitionofgoodsandreceptionoflabourservice
Unit:RMB
| Relatedparty | Content | Amountofthecurrentperiod | Theapprovaltradecredit | Whetherexceedtradecreditornot | Amountofthepreviousperiod |
| ChengshunHosiery | Papercore,hosiery,accessories,etc. | 7,391,882.48 | 11,266,666.67 | Not | 7,193,988.38 |
| LiminPurifiedWater | Recycledwater,sewagetreatment,etc. | 25,480,134.69 | 37,920,000.00 | Not | 28,246,470.62 |
| LuruiFineChemicalandTungHoiInternational | Auxiliaries | 113,904,742.76 | 130,300,000.00 | Not | 101,314,234.28 |
| ChengshunEconomicandTrade | Supermarketretail,serviceexpenses | 1,641,835.36 | 3,760,000.00 | Not | 2,468,796.20 |
| LuchengPetrochemicalandChengshunPetrochemical | Oilproducts,urea,naturalgas | 52,370,735.70 | 77,077,333.33 | Not | 55,480,873.42 |
| LuqunProperty | electrical | 147,619.12 | 150,295.22 |
Informationofsalesofgoodsandprovisionoflabourservice
Unit:RMB
| Relatedparty | Content | Amountofthecurrentperiod | Amountofthepreviousperiod |
| ChengshunHosiery | Materials,powerenergy,etc. | 265,162.23 | 255,336.33 |
| ChengshunHosiery | Yarn,garments,fabrics | 390,647.37 | 552,386.10 |
| ChengshunEconomicandTrade | Materials,powerenergy,etc. | 443,521.90 | 200,452.64 |
| LuchengPetrochemical | Materials,electricity,garments,fabrics | 14,652.32 | 14,104.15 |
| LiminPurifiedWater | Materials,electricity,garments,fabrics,etc. | 6,947,311.98 | 5,611,202.34 |
| LiminPurifiedWater | Sludgetreatment | 943,396.23 | 283,018.87 |
| LuruiFineChemical | Materials,yarns,garments,fabrics,etc. | 1,584,349.53 | 295,841.93 |
| LujiaProperty | Materials,powerenergy,etc. | 40,571.28 | 28,133.85 |
| XiruiNewMaterials | Clothing | 550.44 | |
| XiruiNewMaterials | Cateringservices,etc. | 50,541.98 | 114,555.82 |
| LumeiEconomicandTrade | Garments,fabrics,computersupplies | 63.72 | |
| LuqunProperty | Garments,fabrics,cateringservices | 365,076.11 | |
| LuqunProperty | Heatingunitaccountopening | 3,292,155.06 |
(2)Informationonrelated-partyleaseTheCompanywaslessor:
Unit:RMB
| Nameoflessee | Categoryofleasedassets | Theleaseincomeconfirmedinthecurrentperiod | Theleaseincomeconfirmedinthesameperiodoflastyear |
| ChengshunEconomicandTrade | Rentofhousesandbuildings | 55,478.67 | 36,108.00 |
| ChengshunHosiery | Rentofhousesandbuildings | 16,800.00 | 16,800.00 |
TheCompanywaslessee:
Unit:RMB
| Nameoflessor | Categoryofleasedassets | Rentalexpenseofsimplifiedshort-termleasesandlow-valueassetleases(ifapplicable) | Variableleasepaymentsthatarenotcoveredinthemeasurementoftheleaseliabilities(ifapplicable) | Rentpayable | Interestexpenseonleaseliabilitiesborne | Addedright-of-useassets | |||||
| Amountofthecurrentperiod | Amountofthepreviousperiod | Amountofthecurrentperiod | Amountofthepreviousperiod | Amountofthecurrentperiod | Amountofthepreviousperiod | Amountofthecurrentperiod | Amountofthepreviousperiod | Amountofthecurrentperiod | Amountofthepreviousperiod | ||
| LuchengTextile | Rentofland | 3,614,857.20 | 3,614,857.20 | 974,130.19 | 1,093,886.24 | |
| LuchengTextile | Rentofgasstation | 233,142.84 | 233,142.84 | 99,697.35 | 105,749.06 | |
| LuchengTextile | Rentofbuildings | 11,022,228.60 | 11,022,228.60 | 2,122,455.64 | 1,831,460.66 | |
| LuqunProperty | Rentoflandandbuildings | 1,971,428.52 | 1,971,428.52 | 1,087,948.39 | 1,128,013.88 |
(3)Informationonremunerationforkeymanagementpersonnel
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod |
| Remunerationforkeymanagementpersonnel | 14,913,891.17 | 12,214,104.92 |
6.Accountsreceivableandpayableofrelatedparty
(1)Accountspayable
Unit:RMB
| Item | Relatedparty | Endingbalance | Beginningcarryingamount |
| Accountspayable | LuruiFineChemical | 230,514.74 | 398,433.04 |
| Accountspayable | TungHoiInternational | 3,445,679.03 | 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 | 125,500 | 125,500.00 | ||||
| Total | 9,803,000 | 9,803,000.00 | 125,500 | 125,500.00 | ||||
Stockoptionsorotherequityinstrumentsoutstandingattheendoftheperiod
□Applicable?Notapplicable
2.Equity-settledshare-basedpayments?Applicable□Notapplicable
Unit:RMB
| Methodsfordeterminingthefairvalueofequityinstrumentsonthegrantdate | Differencebetweenthemarketpriceofthestockandthegrantpriceonthegrantdate |
| Basisfordeterminingthenumberoffeasiblerightequity | Optimalestimationofexpectedfeasiblerightinthefuture |
| instruments | |
| Reasonsforthesignificantdiscrepancybetweenthecurrentperiodestimatesandthepreviousestimates | N/A |
| Accumulatedamountofequity-settledshare-basedpaymentincludedincapitalreserves | 87,876,756.71 |
| Thetotalamountoftheexpenserecognisedforthecurrentperiodpaidonequity-settledshares | 2,817,226.19 |
3.Cash-settledshare-basedpayments
□Applicable?Notapplicable
4.Share-BasedPaymentExpensesforthePeriod?Applicable□Notapplicable
Unit:RMB
| Categoryofgrantrecipients | Equity-settledshare-basedpayments | Cash-settledshare-basedpayments |
| Management,coretechnicalandbusinessbackbone | 2,817,226.19 | |
| Total | 2,817,226.19 |
XVI.CommitmentsandContingency
1.SignificantCommitmentsSignificantcommitmentsonbalancesheetdate
(1)Capitalcommitments
| Commitmentssignedbuthasn’tbeenrecognisedinfinancialstatements | Endingbalance | Closingbalanceoflastyear |
| Commitmentonconstructingandpurchasinglong-livedassets(RMB’0,000) | 3,244.50 | 5,147.75 |
2.Contingency
(1)ExplanationshallbegivenevenifthereisnosignificantcontingencyfortheCompanytodiscloseTherewasnosignificantcontingencyintheCompanytodisclose.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 | On8April2025,the30thmeetingofthe10thBoardofDirectorsoftheCompanyapprovedtheprofitdistributionplanfor2024as |
2.NotestoothereventsafterbalancesheetdateAsat8April2025,theCompanyhasnoothereventsafterbalancesheetdatethatshouldbedisclosed.XVIII.NotesofMainItemsintheFinancialStatementsoftheCompanyastheParent
1.AccountsReceivable
(1)Disclosurebyaging
Unit:RMB
follows:Basedonthesharecapitalof817,306,010shares,itwasproposedthatcashdividendsintheamountofRMB81,730,601.00wouldbedistributedattherateofRMB1.00pertenshares(inclusiveoftax).Theabovedistributionplanwillbeimplementedafteritissubmittedtothe2024AnnualGeneralMeetingofShareholdersforconsiderationandapproval.Aging
| Aging | Endingbalance | Beginningcarryingamount |
| Withinoneyear(including1year) | 405,094,184.12 | 380,684,242.95 |
| Onetotwoyears | 1,507,926.77 | 2,423,615.15 |
| Twotothreeyears | 550,870.00 | 13,571.80 |
| Morethanthreeyears | 367,200.00 | 3,026,023.60 |
| Threetofouryears | 200,763.00 | 20,913.49 |
| Fourtofiveyears | 166,437.00 | 3,005,110.11 |
| Total | 407,520,180.89 | 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 | 1,380,525.86 | 0.34% | 1,380,525.86 | 100.00% | 5,481,360.70 | 1.42% | 5,481,360.70 | 100.00% | ||
| Ofwhich: | ||||||||||
| Accountsreceivablewithdrawalofbaddebtprovisionofbygroup | 406,139,655.03 | 99.66% | 24,795,853.37 | 6.11% | 381,343,801.66 | 380,666,092.80 | 98.58% | 24,182,667.21 | 6.35% | 356,483,425.59 |
| Ofwhich: | ||||||||||
| Group1:Undueaccounts(L/C) | 53,016,898.75 | 13.01% | 53,016,898.75 | 35,791,868.54 | 9.27% | 35,791,868.54 | ||||
| Undue | 11,429,561.6 | 2.80% | 120,010.40 | 1.05% | 11,309,551.2 | 23,003,716.8 | 5.96% | 241,539.03 | 1.05% | 22,762,177.8 |
| accounts(creditinsuranceinsured) | 2 | 2 | 7 | 4 | ||||||
| Undueaccounts(nocreditinsurance) | 298,370,197.72 | 73.22% | 14,918,509.88 | 5.00% | 283,451,687.84 | 275,912,255.37 | 71.45% | 13,795,612.77 | 5.00% | 262,116,642.60 |
| Overdueaccounts(creditinsuranceinsured) | 14,193,001.99 | 3.48% | 2,228,301.31 | 15.70% | 11,964,700.68 | 15,309,159.83 | 3.96% | 2,403,538.09 | 15.70% | 12,905,621.74 |
| Overdueaccounts(nocreditinsurance) | 29,129,994.95 | 7.15% | 7,529,031.78 | 25.85% | 21,600,963.17 | 30,649,092.19 | 7.94% | 7,741,977.32 | 25.26% | 22,907,114.87 |
| Total | 407,520,180.89 | 100.00% | 26,176,379.23 | 6.42% | 381,343,801.66 | 386,147,453.50 | 100.00% | 29,664,027.91 | 7.68% | 356,483,425.59 |
Baddebtprovisionseparatelyaccrued:2024
Unit:RMB
| Name | Beginningbalance | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | Withdrawalproportion | Reasonforwithdraw | |
| Customer1 | 2,751,489.34 | 2,751,489.34 | 1,380,525.86 | 1,380,525.86 | 100.00% | Customerinfinancialdifficulty |
| Customer2 | 2,729,871.36 | 2,729,871.36 | ||||
| Total | 5,481,360.70 | 5,481,360.70 | 1,380,525.86 | 1,380,525.86 | ||
Ifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivable.
□Applicable?Notapplicable
(3)BadDebtProvisionWithdrawal,ReversedorRecoveredintheReportingPeriodWithdrawalofbaddebtprovision:
Unit:RMB
| Category | Beginningbalance | Changesinthecurrentperiod | Endingbalance | |||
| Withdrawal | Reversedorrecovered | Verification | Other | |||
| Baddebtprovision | 29,664,027.91 | 325,158.70 | 3,162,489.98 | 26,176,379.23 | ||
| Total | 29,664,027.91 | 325,158.70 | 3,162,489.98 | 26,176,379.23 | ||
(4)AccountsReceivableWritten-offinCurrentPeriod
Unit:RMB
| Item | Written-offamount |
| Written-offaccountsreceivable | 3,162,489.98 |
Notestoverificationofaccountsreceivable:
Therewerenowrite-offsofsignificantaccountsreceivable.
(5)Top5oftheEndingBalanceoftheAccountsReceivableandtheContractAssetsCollectedaccordingtoArrearsParty
Unit:RMB
| Nameofentity | Endingbalanceofaccountsreceivable | Endingbalanceofcontractassets | Endingbalanceofaccountsreceivableandcontractassets | Proportiontototalendingbalanceofaccountsreceivableandcontractassets | Endingbalanceofbaddebtprovisionofaccountsreceivableandimpairmentprovisionforcontractassets |
| Customer1 | 32,703,382.90 | 32,703,382.90 | 8.02% | 1,635,169.15 | |
| Customer2 | 23,654,705.71 | 23,654,705.71 | 5.80% | 1,182,735.29 | |
| Customer3 | 22,365,718.66 | 22,365,718.66 | 5.49% | 1,118,285.93 | |
| Customer4 | 20,055,191.67 | 20,055,191.67 | 4.92% | 1,002,759.58 | |
| Customer5 | 16,398,877.01 | 16,398,877.01 | 4.02% | 249,713.49 | |
| Total | 115,177,875.95 | 115,177,875.95 | 28.25% | 5,188,663.44 |
2.NotesReceivable
| Category | Endingbalance | Closingbalanceoflastyear | ||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |
| Bankacceptancebills | 34,575,445.32 | 34,575,445.32 | 54,622,178.42 | 54,622,178.42 | ||
| Commercialacceptancebills | 400,000.00 | 20,000.00 | 380,000.00 | |||
| Total | 34,975,445.32 | 20,000.00 | 34,955,445.32 | 54,622,178.42 | 54,622,178.42 | |
(1)TheCompanyhadnopledgednotesreceivableattheendoftheperiod.
(2)NotesreceivableendorsedbytheCompanyordiscountedandnotdueonthebalancesheetdateattheperiod-end
| Category | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
| Bankacceptancebills | 26,302,178.06 | |
| Tradeacceptancenotes | ||
| Total | 26,302,178.06 |
(3)Disclosurebywithdrawalmethodsforbaddebts
| Category_310813 | Endingbalance | Closingbalanceoflastyear | ||||||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
| Amount | Percentage(%) | Amount | Expectedcreditlossrate(%) | Amount | Percentage(%) | Amount | Expectedcreditlossrate(%) | |||
| Baddebtprovisionseparatelyaccrued | |||||||||
| Withdrawalofbaddebtprovisionbygroup | 34,975,445.32 | 100 | 20,000.00 | 0.06 | 34,955,445.32 | 54,622,178.42 | 100 | 54,622,178.42 | |
| Ofwhich: | - | ||||||||
| Commercialacceptancebills | 400,000.00 | 1.14 | 20,000.00 | 5 | 380,000.00 | ||||
| Bankacceptancebillswithlowcreditratings | 34,575,445.32 | 98.86 | 34,575,445.32 | 54,622,178.42 | 100 | 54,622,178.42 | |||
| Total | 34,975,445.32 | 100 | 20,000.00 | 34,955,445.32 | 54,622,178.42 | 100 | 54,622,178.42 |
NotesreceivableofbaddebtprovisionwithdrawnbygroupsGrouping-basedprovisionitem:Bankacceptancebillswithlowcreditratings
| Name_210024 | Endingbalance | ||
| Notesreceivable | Baddebtprovision | Expectedcreditlossrate(%) | |
| Bankacceptancebillswithlowcreditratings | 34,575,445.32 | ||
| Total | 34,575,445.32 | ||
Note:Basedonthefactthatthelikelihoodoflossonthenotesreceivableisminimalandtheamountofexpectedcreditlossesonthenotesreceivableisnotmaterial,theCompanyhasnotprovidedforbaddebtsonthenotesreceivable.Grouping-basedprovisionitem:Commercialacceptancebillsratings
| Name | Endingbalance | Closingbalanceoflastyear | ||||
| Notesreceivable | Baddebtprovision | Expectedcreditlossrate(%) | Notesreceivable | Baddebtprovision | Expectedcreditlossrate(%) | |
| Commercialacceptancebills | 400,000.00 | 20,000.00 | 5 | |||
| Total | 400,000.00 | 20,000.00 | 5 | |||
(4)BadDebtProvisionWithdrawal,ReversedorRecoveredintheReportingPeriod
| AmountofBadDebtProvision | |
| Beginningbalance | |
| WithdrawaloftheCurrentPeriod | 20,000.00 |
| ReversedorRecoveredintheReportingPeriod | |
| Write-offintheReportingPeriod | |
| Endingbalance | 20,000.00 |
3.OtherReceivables
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Otherreceivables | 1,444,344,599.59 | 2,064,459,414.54 |
| Total | 1,444,344,599.59 | 2,064,459,414.54 |
(1)OtherAccountsReceivable
1)Otherreceivablesclassifiedbycategory
Unit:RMB
| Nature | Endingbalance | Beginningcarryingamount |
| Intercoursefunds | 1,438,423,895.04 | 2,060,091,836.09 |
| Paymentonbehalf | 6,572,485.56 | 6,736,525.76 |
| Guaranteedepositandcashdeposit | 2,109,217.68 | 1,549,661.78 |
| Borrowingsandpettycash | 949,740.81 | 1,533,557.54 |
| Other | 2,656,594.02 | 2,720,459.54 |
| Total | 1,450,711,933.11 | 2,072,632,040.71 |
2)Disclosurebyaging
Unit:RMB
| Aging | Endingbalance | Beginningcarryingamount |
| Withinoneyear(including1year) | 1,371,173,184.48 | 1,629,128,024.64 |
| Onetotwoyears | 27,700,512.72 | 184,755,200.00 |
| Twotothreeyears | 13,105,000.00 | 79,555,623.95 |
| Morethanthreeyears | 38,733,235.91 | 179,193,192.12 |
| Threetofouryears | 36,109,026.05 | 176,599,422.10 |
| Fourtofiveyears | 78,000.00 | |
| Over5years | 2,624,209.86 | 2,515,770.02 |
| Total | 1,450,711,933.11 | 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 | |||
| Ofwhich: | ||||||||||
| Withdrawalofbaddebtprovisionbygroup | 1,450,711,933.11 | 100.00% | 6,367,333.52 | 0.44% | 1,444,344,599.59 | 2,072,632,040.71 | 100.00% | 8,172,626.17 | 0.39% | 2,064,459,414.54 |
| Ofwhich: | ||||||||||
| Baddebtprovisioninthefirststage | 1,447,622,162.05 | 99.79% | 4,775,185.04 | 0.33% | 1,442,846,977.01 | 2,069,707,269.65 | 99.86% | 6,661,047.19 | 0.32% | 2,063,046,222.46 |
| Baddebtprovisioninthesecond | 2,926,759.01 | 0.20% | 1,429,136.43 | 48.83% | 1,497,622.58 | 2,761,759.01 | 0.13% | 1,348,566.93 | 48.83% | 1,413,192.08 |
| stage | ||||||||||
| Baddebtprovisioninthethirdstage | 163,012.05 | 0.01% | 163,012.05 | 100.00% | 163,012.05 | 0.01% | 163,012.05 | 100.00% | ||
| Total | 1,450,711,933.11 | 100.00% | 6,367,333.52 | 0.44% | 1,444,344,599.59 | 2,072,632,040.71 | 100.00% | 8,172,626.17 | 0.39% | 2,064,459,414.54 |
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 | 80,569.50 | 80,569.50 | ||
| ReclassificationintheReportingPeriod | 1,885,862.15 | 1,885,862.15 | ||
| Balanceof31December2024 | 4,775,185.04 | 1,429,136.43 | 163,012.05 | 6,367,333.52 |
ThebasisforthedivisionofeachstageandthewithdrawalproportionofbaddebtprovisionChangesofcarryingamountwithsignificantamountchangedoflossprovisioninthecurrentperiod
□Applicable?Notapplicable
4)BadDebtProvisionWithdrawn,ReversedorRecoveredintheCurrentPeriodWithdrawalofbaddebtprovision:
Unit:RMB
| Category | Beginningbalance | Changesinthecurrentperiod | Endingbalance | |||
| Withdrawal | Reversedorrecovered | Charged-off/Written-off | Other | |||
| Baddebtprovision | 8,172,626.17 | 80,569.50 | 1,885,862.15 | 6,367,333.52 | ||
| Total | 8,172,626.17 | 80,569.50 | 1,885,862.15 | 6,367,333.52 | ||
5)Top5oftheEndingBalanceoftheOtherReceivablesCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameofentity | Nature | Endingbalance | Aging | Proportiontoendingbalanceoftotalotherreceivables | Endingbalanceofbaddebtprovision |
| Unit1 | Intercoursefunds | 971,464,156.38 | Withinoneyear;onetotwoyears;twotothreeyears | 66.96% | 2,914,392.47 |
| Unit2 | Intercoursefunds | 259,505,275.71 | Within1year | 17.89% | 778,515.83 |
| Unit3 | Intercoursefunds | 133,735,396.68 | Within1year | 9.22% | 401,206.19 |
| Unit4 | Intercourse | 40,922,421.76 | Onetotwoyears;Over | 2.82% | 122,767.27 |
| funds | threeyears | ||||
| Unit5 | Intercoursefunds | 12,000,000.00 | Within1year | 0.83% | 36,000.00 |
| Total | 1,417,627,250.53 | 97.72% | 4,252,881.76 |
4.Long-termEquityInvestment
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Investmenttosubsidiaries | 3,776,326,276.50 | 10,209,050.00 | 3,766,117,226.50 | 3,446,169,376.50 | 10,209,050.00 | 3,435,960,326.50 |
| Investmenttojointventuresandassociatedenterprises | 120,084,271.29 | 120,084,271.29 | 143,537,479.77 | 143,537,479.77 | ||
| Total | 3,896,410,547.79 | 10,209,050.00 | 3,886,201,497.79 | 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 | 10,209,050.00 | |||||
| VACL | 62,337,238.57 | 62,337,238.57 | ||||||
| LulianNewMaterials | 300,000,000.00 | 525,925,200.00 | 206,481,300.00 | 619,443,900.00 | ||||
| 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 | ||||||
| Tianyi | 10,719,000.00 | 10,719,000.00 | ||||||
| Apparel | |||||||
| YuanhuiFund | 400,000,000.00 | 400,000,000.00 | |||||
| Total | 3,435,960,326.50 | 10,209,050.00 | 536,644,200.00 | 206,487,300.00 | 3,766,117,226.50 | 10,209,050.00 |
(2)Investmenttojointventuresandassociatedenterprises
Unit:RMB
| Investee | Beginningbalance(carryingvalue) | Beginningbalanceofdepreciationreserve | Increase/decrease | Endingbalance(carryingvalue) | Endingbalanceofdepreciationreserve | |||||||
| Additionalinvestment | Reducedinvestment | Gainsandlossesrecognisedundertheequitymethod | Adjustmentofothercomprehensiveincome | Changesofotherequity | Cashbonusorprofitsannouncedtoissue | Withdrawalofimpairmentprovision | Other | |||||
| I.Jointventures | ||||||||||||
| II.Associatedenterprises | ||||||||||||
| HaohongInvestment | 48,257,699.71 | -16,932,009.13 | 31,325,690.58 | |||||||||
| HaoyingInvestment | 95,279,780.06 | -6,521,199.35 | 88,758,580.71 | |||||||||
| Subtotal | 143,537,479.77 | -23,453,208.48 | 120,084,271.29 | |||||||||
| Total | 143,537,479.77 | -23,453,208.48 | 120,084,271.29 | |||||||||
Therecoverableamountisdeterminedbasedonthenetamountofthefairvalueminusdisposalcosts
□Applicable?NotapplicableTherecoverableamountisdeterminedbythepresentvalueoftheforecastedfuturecashflow.
□Applicable?Notapplicable
5.OperatingRevenueandCostofSales
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod | ||
| Revenue | Cost | Revenue | Cost | |
| Principalbusiness | 2,943,776,911.86 | 2,279,103,044.60 | 3,147,505,850.27 | 2,471,357,276.44 |
| Others | 254,515,151.74 | 167,085,585.40 | 280,155,779.48 | 186,079,061.04 |
| Total | 3,198,292,063.60 | 2,446,188,630.00 | 3,427,661,629.75 | 2,657,436,337.48 |
6.InvestmentIncome
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod |
| Long-termequityinvestmentincomeaccountedbycostmethod | 14,383,890.10 | 170,639,188.72 |
| Long-termequityinvestmentincomeaccountedbyequitymethod | -23,453,208.48 | -9,556,170.35 |
| Investmentincomefromdisposaloflong-termequityinvestment | -55,556,100.00 | 22,374,515.10 |
| Investmentincomefromholdingofheld-for-tradingfinancialasset | 4,301,934.88 | 3,837,780.60 |
| Investmentincomefromdisposaloftradingfinancialassets | -148,399.11 | 30,146,964.78 |
| Interestincomefromdebtinvestmentsduringtheholdingperiod | 4,176,585.64 | |
| Total | -56,295,296.97 | 217,442,278.85 |
XIX.SupplementaryMaterials
1.ItemsandAmountsofNon-recurringProfitorLoss?Applicable□Notapplicable
Unit:RMB
| Item | Amount | Note |
| Gainsandlossesondisposalofnon-currentassets | -5,481,717.67 | |
| Governmentgrantsrecognisedinprofitorlossforthecurrentperiod(exceptforgovernmentgrantscloselyrelatedtotheCompany’snormaloperatingbusiness,incompliancewithnationalpoliciesandinaccordancewithdefinedcriteria,andhavingacontinuousimpactontheCompany’sprofitorloss) | 34,326,278.48 | |
| Gainsandlossesarisingfromchangesinfairvalueoffinancialassetsandfinancialliabilitiesheldbynon-financialenterprisesandgainsandlossesarisingfromthedisposaloffinancialassetsandfinancialliabilities,otherthaneffectivehedgingbusinessrelatedtotheCompany’snormaloperatingbusiness | -116,104,499.14 | |
| Reversalofprovisionforimpairmentofreceivablesseparatelytestedforimpairment | 1,349,345.50 | |
| Othernon-operatingincomeandexpenseotherthantheabove | 3,383,103.88 | |
| Less:Incometaxeffects | -11,186,738.74 | |
| Non-controllinginterestseffects(aftertax) | 676,593.25 | |
| Total | -72,017,343.46 | -- |
Detailsofotherprofitandlossitemsinlinewiththedefinitionofnon-recurringgainsandlosses:
□Applicable?NotapplicableTherearenootherprofitandlossitemsinlinewiththedefinitionofnon-recurringgainsandlossesintheCompany.Notetodefinethenon-recurringprofitandlossitemslistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—Non-recurringGainsandLossesasrecurringprofitandlossitems.
□Applicable?Notapplicable
2.ReturnonEquityandEarningsPerShare
| ProfitasofReportingPeriod | WeightedaverageROE(%) | EPS | |
| EPS-basic | EPS-diluted | ||
| NetprofitattributabletoordinaryshareholdersoftheCompany | 4.39% | 0.50 | 0.47 |
| NetprofitattributabletoordinaryshareholdersoftheCompanyafterdeductionofnon-recurringprofitorloss | 5.16% | 0.59 | 0.54 |
ChairmanoftheBoard:LiuZibin
LuThaiTextileCo.,Ltd.
10April2025