2022 Full Annual Report
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
April 2023
2022 Full Annual Report
2022 Full Annual Report
Section 1 Important Notes, Contents and DefinitionsThe board of directors, the board of supervisors and directors, supervisors and senior management of the Company herebyguarantee that no false or misleading statement or major omission was made to the materials in this report and that they willassume all the responsibility, individually and jointly, for the authenticity, accuracy and completeness of the contents of the annualreport.Ren Jianhua, the head of the Company, Zhang Guofu, the head of accounting work, and Zhang Guofu, the head of accountingbody (accountant in charge), guarantee the authenticity, accuracy and completeness of the financial report in this annual report.All directors of the Company personally attended the board meeting for reviewing this report.The Company has risks such as policy fluctuations in the real estate market, price fluctuations of raw materials and intensifyingmarket competition. Please pay attention to the investment risks.The preplanned profit distribution deliberated and approved by the board of directors is as follows: taking 944,094,916 shares asthe radix, the Company will send cash dividends of RMB 5 (tax included) and 0 bonus share (tax included) to all shareholders forevery 10 shares, and instead of converting capital reserve into share capital.
2022 Full Annual Report
Contents
Section 1 Important Notes, Contents and Definitions ...... 2
Section 2 Company Profile and Major Financial Indicators ...... 6
Section 3 Management Discussion and Analysis ...... 10
Section 4 Corporate Governance ...... 22
Section 5 Environmental and social responsibility ...... 37
Section 6 Important Matters ...... 38
Section 7 Changes in Shares and Shareholders ...... 43
Section 8 Preferred Shares ...... 49
Section 9 Corporate Bonds ...... 50
Section 10 Financial Report ...... 51
2022 Full Annual Report
Directory of documents available for inspection
I. Financial statements containing signatures of the legal representative, the head of accounting work, and the head ofaccounting body with seals.II. Original audit report stamped by ShineWing Certified Public Accountants (Special general partnership) and signed and
stamped with the certified public accountants.III. Original copies of the documents and announcement of the Company published on the newspaper designated by the CSRC
in the reporting period.IV. 2022 annual report of the Company signed by the legal representative.V. Other relevant information.
2022 Full Annual Report
Definitions
| Terms | Refers to | Definition |
The Company, company, ROBAM Appliances
| The Company, company, ROBAM Appliances | Refers to | Hangzhou ROBAM Appliances Co., Ltd. |
Mingqi
| Mingqi | Refers to | Hangzhou Mingqi Electric Co., Ltd. |
Kinde Intelligent
| Kinde Intelligent | Refers to | Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. |
Jinhe Electric Appliances
| Jinhe Electric Appliances | Refers to | Hangzhou Jinhe Electric Appliances Co., Ltd |
ROBAM Group
| ROBAM Group | Refers to | Hangzhou ROBAM Industrial Group Co., Ltd., controlling shareholder of the Company |
Reporting period
| Reporting period | Refers to | Year 2022 |
AVC
| AVC | Refers to | Beijing All View Cloud Data Technology Co., Ltd. |
2022 Full Annual Report
Section 2 Company Profile and Major Financial Indicators
I. Company Information
| Stock abbreviation | ROBAM | Stock code | 002508 |
Stock exchange for stock listing
| Stock exchange for stock listing | Shenzhen Stock Exchange |
Company name in Chinese
| Company name in Chinese | Hangzhou ROBAM Appliances Co., Ltd. |
Company short name in Chinese
| Company short name in Chinese | ROBAM |
Company name in English (if any)
| Company name in English (if any) | HANGZHOU ROBAM APPLIANCES CO.,LTD. |
Company short name in English (ifany)
| Company short name in English (if any) | ROBAM |
Legal representative of theCompany
| Legal representative of the Company | Ren Jianhua |
Registered address
| Registered address | No. 592 Linping Av., Yuhang Economic Development Zone, Yuhang District, Hangzhou City, Zhejiang Province |
Postal code of the registeredaddress
| Postal code of the registered address | 311100 |
Historical changes of theCompany's registered address
| Historical changes of the Company's registered address | N/A |
Office address
| Office address | No. 592 Linping Av., Yuhang Economic Development Zone, Yuhang District, Hangzhou City, Zhejiang Province |
Postal code of the office address
| Postal code of the office address | 311100 |
Company website
| Company website | http://www.robam.com/ |
| robam@robam.com |
II. Contact Person and Contact Information
| Secretary to the board of directors | Securities affairs representative |
Name
| Name | Wang Gang | Jiang Yu |
Contact address:
| Contact address: | No. 592 Linping Av., Yuhang Economic Development Zone, Yuhang District, Hangzhou City, Zhejiang Province | No. 592 Linping Av., Yuhang Economic Development Zone, Yuhang District, Hangzhou City, Zhejiang Province |
Tel
| Tel | 0571-86187810 | 0571-86187810 |
Fax
| Fax | 0571-86187769 | 0571-86187769 |
| wg@robam.com | jy@robam.com |
III. Information Disclosure and Keeping Place
| The website(s) of the stock exchange where the Company discloses the annual report | Securities Times, China Securities Journal, Securities Daily, Shanghai Securities News |
The name and website of the media where the Company disclosesthe annual report
| The name and website of the media where the Company discloses the annual report | http://www.cninfo.com.cn |
Place of preparation of the Company’s annual report
| Place of preparation of the Company’s annual report | Board office |
IV. Registration Changes
| Uniform social credit code | 91330000725252053F |
Changes in main business since the Company's listing (if any)
| Changes in main business since the Company's listing (if any) | N/A |
Changes of controlling shareholders (if any)
| Changes of controlling shareholders (if any) | N/A |
IV. Other Relevant Information
Accounting firm engaged by the Company
| Name of the accounting firm | Shinewing Certified Public Accountants (special general partnership) |
Office address of the accounting firm
| Office address of the accounting firm | 9/F, Block A, Fuhua Mansion, No.8 Chaoyangmen North Street, |
2022 Full Annual Report
Dongcheng District, BeijingName of signatory accountant
| Name of signatory accountant | Lei Yongxin, Wang Qing |
The sponsor institution engaged by the Company to perform the continuous supervision responsibility during the reporting period
□ Applicable ?Not applicable
The financial advisor engaged by the Company to perform the continuous supervision responsibility during the reporting period
□ Applicable ?Not applicable
V. Major Accounting Data and Financial IndicatorsWhether the Company needs to retroactively adjust or restate the accounting data of the previous years
□ Yes ?No
| 2022 | 2021 | Increase / decrease this year compared to the previous year | 2020 |
Operating income (yuan)
| Operating income (yuan) | 10,271,500,571.04 | 10,147,706,035.35 | 1.22% | 8,128,620,799.31 |
Net profits attributable toshareholders of listed companies(yuan)
| Net profits attributable to shareholders of listed companies (yuan) | 1,572,404,918.21 | 1,331,712,059.03 | 18.07% | 1,660,749,958.89 |
Net profits attributable toshareholders of the listed companyafter deduction of non-recurringprofits and losses (yuan)
| Net profits attributable to shareholders of the listed company after deduction of non-recurring profits and losses (yuan) | 1,479,102,088.00 | 1,276,853,316.64 | 15.84% | 1,584,584,566.83 |
Net cash flow from operatingactivities (yuan)
| Net cash flow from operating activities (yuan) | 1,944,786,304.02 | 1,365,377,219.33 | 42.44% | 1,537,299,958.71 |
Basic EPS (yuan/share)
| Basic EPS (yuan/share) | 1.67 | 1.41 | 18.44% | 1.75 |
Diluted EPS (yuan/share)
| Diluted EPS (yuan/share) | 1.67 | 1.41 | 18.44% | 1.75 |
Weighted average return on netassets
| Weighted average return on net assets | 17.21% | 15.78% | 1.43% | 22.39% |
| End of 2022 | End of 2021 | Increase / decrease at the end of this year compared to the end of the previous year | End of 2020 |
Total assets (yuan)
| Total assets (yuan) | 15,039,825,287.53 | 13,906,035,181.12 | 8.15% | 12,457,568,276.25 |
Net assets attributable toshareholders of listed companies(yuan)
| Net assets attributable to shareholders of listed companies (yuan) | 9,732,463,766.91 | 8,627,026,739.27 | 12.81% | 8,050,626,815.35 |
The lower net profit of the Company before and after deducting non-recurring profit and loss in the last three fiscal years isnegative, and the audit report of the latest year shows that the Company's ability to continue as a going concern is uncertain
□ Yes ?No
The lower net profit before and after deducting non-recurring profit and loss is negative
□ Yes ?No
VI. Differences in Accounting Data under Domestic and Foreign Accounting Standards
1. Differences between net profits and net assets in financial statements disclosed according to the
International Accounting Standards (IAS) and Chinese Accounting Standards simultaneously
□ Applicable ?Not applicable
No difference between net profits and net assets in financial statements disclosed according to the International AccountingStandards (IAS) and Chinese Accounting Standards during the reporting period.
2022 Full Annual Report
2. Differences between net profits and net assets in financial statements disclosed according to the
Overseas Accounting Standards and Chinese Accounting Standards simultaneously
□ Applicable ?Not applicable
No difference between net profits and net assets in financial statements disclosed according to the Overseas Accounting Standardsand Chinese Accounting Standards during the reporting period.VII. Key Quarterly Financial Indicators
Unit: yuan
| Q1 | Q2 | Q3 | Q4 |
Operating income
| Operating income | 2,086,165,521.12 | 2,358,144,578.57 | 2,792,652,705.58 | 3,034,537,765.77 |
Net profits attributable toshareholders of listedcompanies
| Net profits attributable to shareholders of listed companies | 367,704,718.16 | 355,844,663.09 | 509,980,371.09 | 338,875,165.87 |
Net profits attributable toshareholders of the listedcompany after deductionof non-recurring profitsand losses
| Net profits attributable to shareholders of the listed company after deduction of non-recurring profits and losses | 335,557,193.45 | 300,287,890.62 | 496,561,217.73 | 346,695,786.20 |
Net cash flow fromoperating activities
| Net cash flow from operating activities | 127,753,283.12 | 195,101,839.21 | 854,375,584.21 | 767,555,597.48 |
Whether there is significant difference between the above financial indicators or the total sum of them and the financial indicatorsrelated to the quarterly report and semiannual report disclosed by the Company
□ Yes ?No
VIII. Non-recurring Profit and Loss Items and Amount
?Applicable □ Not applicable
Unit: yuan
| Item | Amount in 2022 | Amount in 2021 | Amount in 2020 | Description |
Profits and losses on the disposal of non-currentassets (including the write-off part of the provisionfor asset impairment)
| Profits and losses on the disposal of non-current assets (including the write-off part of the provision for asset impairment) | 113,456.26 | -2,290,187.24 | -422,706.54 |
Government subsidies included into the currentprofits and losses (except those governmentsubsidies, which are closely related to the normalbusiness of the Company, comply with nationalpolicies and regulations and continuously enjoyedin accordance with a certain standard quota orquantity)
| Government subsidies included into the current profits and losses (except those government subsidies, which are closely related to the normal business of the Company, comply with national policies and regulations and continuously enjoyed in accordance with a certain standard quota or quantity) | 101,963,275.49 | 65,893,969.94 | 91,184,657.20 |
Reversal of impairment provision for receivablessubject to separate impairment test
| Reversal of impairment provision for receivables subject to separate impairment test | 24,667,546.54 | 1,034,992.00 |
Income and expenditure other than thosementioned above
| Income and expenditure other than those mentioned above | -2,044,818.28 | -2,306,626.52 | -2,965,479.76 |
Minus: Amount affected by income tax
| Minus: Amount affected by income tax | 26,789,339.27 | 6,738,387.65 | 11,202,215.16 |
Amount of minority shareholders' equity affected(after tax)
| Amount of minority shareholders' equity affected (after tax) | 4,607,290.53 | 735,018.14 | 428,863.68 |
Total
| Total | 93,302,830.21 | 54,858,742.39 | 76,165,392.06 | -- |
Details of other profit and loss items that meet the definition of non-recurring profit and loss:
?Applicable □ Not applicable
| Item | Amount | Cause |
| VAT exemption or reduction or refund | 45,970,536.15 | National tax policies, recurring business |
2022 Full Annual Report
| Individual income tax service charge refund | 541,758.65 | National tax policies, recurring business |
| Total | 46,512,294.80 | — |
Description of defining the non-recurring profit and loss items enumerated in the “Interpretative Announcement No. 1 onInformation Disclosure of Public Securities Issuing Companies - Non-recurrent Profits and Losses” as recurrent profit and lossitems
□ Applicable ?Not applicable
The Company does not have any non-recurrent profit and loss items enumerated in the “Interpretative Announcement No. 1 onInformation Disclosure of Public Securities Issuing Companies - Non-recurrent Profits and Losses” as recurrent profit and lossitems.
2022 Full Annual Report
Section 3 Management Discussion and AnalysisI. Industry Situation of the Company During the Reporting PeriodIn 2022, due to the seriously weak of market demand, the sales and completion of housing declined seriously, restraining the newdemand in the market and having a huge impact on the kitchen appliances industry. According to the overall data released by AllView Cloud (AVC), the retail sales of kitchen and bathroom appliances (such as range hoods, gas hobs, sterilizer cabinets,dishwashers, built-in appliances, integrated appliances, water heaters, and water purifiers) this year amounted to RMB 158.6billion, representing a year-on-year decrease of 9.6%. From the perspective of kitchen function, the total sales of professionalcooking kitchen appliances (range hoods, gas hobs, and built-in microwave ovens, built-in electrical steam ovens and built-inelectric ovens) was RMB 53.7 billion, representing a year-on-year decrease of 10.9%; The total sales of cleaning appliances(dishwashers, gas water heaters, and water purifiers) was RMB 53.4 billion, representing a year-on-year decrease of 11.4%. Thetotal sales of storage appliances (refrigerators, sterilizer cabinets) RMB 96.2 billion, representing a year-on-year decrease of 4.8%.The concentration of kitchen appliance industry continues to increase, the height and thickness of the brand are producing moreand more obvious “dividends”, the polarization is intensifying, the siphon effect of head brand is obvious, and it is becoming moreand more difficult for the long-tail brand. At the same time, the channel innovation of kitchen appliance industry is still continuing.From the home appliance chain stores to the rise and rapid growth of e-commerce, to the integration of online and offlinetransaction, to the sinking of channels and the rise of reserved installation, online wholesale and live streaming e-commerce,fragmentation, diversification and segmentation of channels have become a trend. In addition, the kitchen appliance productsrepresented by range hoods and gas hobs are still the largest rigid demand categories in the current kitchen appliance industry. Theemerging kitchen appliances such as dishwashers and steam oven-ovens have brought opportunities and dividends for productexpansion in the industry. The competition in the kitchen appliance industry will turn to the “product” dimension, and there will bea huge extension space of each kitchen appliance product. In the future, the competition in the kitchen appliance industry willfocus on product innovation. In the medium and long term, integrated and intelligent technologies will be applied to more kitchenappliance products and cooking scenes.According to the National Economic and Social Development Statistics Bulletin 2022 issued by the National Bureau of statistics,at the end of 2022, the urbanization rate of the country's permanent population was 65.22%, 0.50 percentage points higher thanthat at the end of the previous year. Compared to the urbanization rate of over 80% in developed countries, there is a broaddevelopment prospect and a good long-term trend for the kitchen appliance industry. China is at the mid-term level of urbanizationdevelopment. The new market and stock market will jointly support the future development space of the kitchen applianceindustry. While` the urbanization will also move towards the road of high-quality development, and the trend of the kitchencategory expansion and product upgrade in China will continue.II. Main Business of the Company during Reporting Period
Dedicated to creating a new quality kitchen for millions of families, the Company takes foot in the kitchen field and focuses on thedevelopment, production, sales and comprehensive services of kitchen appliances, including range hoods, gas hobs, steam oven-oven, dishwashers and integrated stoves, and it is committed to creating a more “convenient, healthy and interesting” kitchen lifefor thousands of families. After more than 40 years of development and growth, the Company has become the manufacturer withthe longest history, the highest market share and the largest production capacity in the Chinese kitchen appliance industry.According to product attributes and cooking methods, the Company's products are mainly divided into three categories. The firstcategory refers to the product group represented by range hoods. The second category refers to the electrified cooking productgroup represented by steam oven-oven, steamer and oven. The third category refers to the water kitchen appliance product grouprepresented by dishwashers, gas water heater and water purifier. In addition, it also includes integrated product groups representedby integrated stoves and integrated range hoods, etc., as well as refrigerators and other categories, providing consumers with a fullset of kitchen appliance solutions.The channel layout of the Company is complete, forming three major channels focusing on offline retail, online e-commerce andrefined decoration engineering, as well as overseas channels.
1) Offline retail channels: mainly based on the national agent model of ROBAM, with the main channels divided into specialtystores (agent specialty stores, Red Star Macalline, Easyhome, etc.), KA (Suning, GOME, Five Star and local chain channels),innovate channels (whole house customization companies, home decoration companies and gas companies), sinking channels (JDspecialty stores, Tmall Youpin, Suning Retail Cloud, GOME New Retail, Five Star Wanzhentong, etc.) and local departmentstores, etc.
2) Online e-commerce channels: mainly directly operated by the Company's e-commerce department. The main channels includeonline platforms such as JD, Tmall and Suning, as well as other media platforms (new media social networking, official website,private domain, TV shopping, etc.)
3) Refined decoration engineering channels: strategic engineering customers (leading real estate enterprises) and regionalengineering customers.
4) Overseas channels: North America, Australia, Malaysia, Cambodia and other Southeast Asian regions.
2022 Full Annual Report
III. Analysis of Core CompetitivenessNo significant change in the Company's core competitiveness during the reporting period: The Company's core competitiveness ismainly reflected in the high-end positioned the brand capacity, continuous innovative research and development capacity,comprehensive and efficient operation capacity.
1. Brand capability of high-end positioning
Founded in 1988, the ROBAM continues to deepen the positioning of “big suction” and create high-end brand experience. “Bigsuction” has become the synonym of “high-end range hood”, and the ROBAM has become one of the most famous and favoriteprofessional high-end kitchen appliance brands in China. Since 1991, ROBAM range hood has won the only “Quality SilverAward of the People's Republic of China”, “China Famous-brand Product”, “National Inspection-free Product” in the kitchenappliance industry; ROBAM has been recognized as “China Famous Brand”; ROBAM has won “Most Influential Brand in China'sKitchen Appliance Industry” and “China's 500 Most Valuable Brands”. In addition, ROBAM Appliances has been rated as one ofthe “BrandZ Top 100 Most Valuable Chinese Brands” for 7 consecutive years, and awarded the “Top 500 Asian Brands” for 15consecutive years. In 2018, ROBAM Appliances put forward a new brand concept, that is, to “Creating China's new kitchen.”ROBAM Appliances became the CCTV's leading national brand in the world and won the 2019-2020 High-end Brand Awardfrom China National Household Electric Appliances Commercial Association. From 2015 to 2022, ROBAM large-suction rangehoods and built-in gas hobs led the global sales for 8 consecutive years.
2. R&D capability of continuous innovation
The Company adheres to the principle of “product leading” and constantly pursues “technology leading”. The Company now has anational technology center, a national laboratory, a national industrial design center, California institute of innovation, Shenzheninnovation research institute and academician workstation of Tsinghua University. With industry-leading national industry designs,intelligent manufacturing technology and superior product quality, ROBAM Appliances has already evolved into a market leader,an industry standard advocate, and a CSR forerunner. In 2020, it won the Second Prize for Science and Technology Progress inZhejiang Province, and in 2021, it was listed in the China's Top 100 Enterprises of Light Industry Science and Technology. At thesame time, it has been increasing its investment in research and development, and standing at the industry leading level in R&Dteam, R&D patents, standard formulation and other aspects. Since 2008, ROBAM Appliances has won more than 60 productdesign awards, including authoritative awards at home and abroad, such as Germany IF, Germany Red Dot, and China Red Star,leading the trend of kitchen appliance product design. The Company has authorized a total of more than 3,000 patents, covering allmajor categories of kitchen ecology supporting easy cooking with superb technologies.
3. Comprehensive and efficient operation capability
The Company has the leading marketing capability in the industry: by adopting the only agency marketing mode in the industry,the Company has created the most comprehensive, efficient and responsive marketing system in the industry through strongmanagement and control, equity incentive and the de facto business partner system. The Company deepens intelligentmanufacturing and refined operation. It was awarded the “National Top 100 Quality Inspection Integrity Benchmark” and“National Excellent Quality and Excellent Credit Enterprise” in 2020. The Company focuses on global manufacturing and strivesto become a first-class manufacturing benchmark in China. In 2021, it was awarded the “Future Factory” medal by the Economyand Information Technology Department of Zhejiang. In addition, the Company accelerates the integration of digitization andinformatization, focuses on the interactive innovation and continuous optimization of data, technology, business process andorganizational structure, constantly improves new capabilities in the informatization environment, and improves the sustainablecompetitiveness in domestic and foreign markets. At the same time, the Company is also a provincial industrial Internet platformand has become one of the first batch of “Kunpeng” enterprises in Hangzhou.IV. Main business analysis
1. Overview
In 2022, due to the major adverse factors such as the continuous downturn of the real estate industry and the rising comprehensivecost of enterprises, the demand of the kitchen appliance industry was suppressed, resulting an overall negative growth. In terms ofretail channel, according to the monthly data report of offline retail market monitoring of All View (hereinafter referred to as “AllView Offline Report”), the retail sales of main categories of kitchen appliances, such as range hoods and gas hobs, decreased by
26.2% and 22.8% respectively compared with the same period of last year. In terms of e-commerce channel, according to themonthly data report of online retail market monitoring of All View (hereinafter referred to as “All View Online Report”), theonline retail sales of kitchen appliance products decreased by 3.6% compared with the same period of last year. In terms ofengineering channel, according to the 2022 Annual Report on Kitchen Appliances in Refined Decoration Market for Real EstateCommodity Housing in China of All View Cloud (AVC) (hereinafter referred to as the “AVC Real Estate Report”), in 2022, themarket size of range hood and gas hobs for refined decoration was 1.41 million units, representing a year-on-year decrease of 48%,and the configuration rate of 96.7%; the market size of dishwasher for refined decoration was 458.3 thousand units, representing ayear-on-year decrease of 15.4%, and the configuration rate of 31.4%, representing a year-on-year increase of 12.5%.As the industry leader, the Company closely focused on the annual business philosophy of “riding on the momentum, buildingdreams and traveling far”, to make the market share of various categories stay ahead, and the market concentration increasing.According to All View Offline Report, the retail sales and retail market share of ROBAM's range hoods were 31.7% and 25.8%,
2022 Full Annual Report
increasing by 1.2 and 1.5 percentage points respectively compared with the same period last year. According to All View OnlineReport, the retail sales and retail volume market share of the ROBAM kitchen appliance package were 30.5% and 24.0%, whichare basically the same as the same period last year. In the face of many adverse factors, the Company achieved an annual operatingincome of RMB 10.272 billion, representing a year-on-year increase of 1.22%. The net profit attributable to shareholders of listedcompanies was RMB 1.572 billion, representing a year-on-year increase of 18.07%, which were significantly superior to theaverage level of the industry.As of December 31, 2022, according to the All View offline report, the market share and market position of the offline retail salesof Company's major product categories are shown in the following table:
| Range hood | Gas hobs | Sterilizer cabinet | Built-in steam & grill oven | Built-in electrical steam oven | Built-in electric oven | Built-in dishwasher |
| 31.7% | 30.7% | 22.6% | 33.1% | 28.1% | 26.2% | 17.8% |
| 1 | 1 | 2 | 1 | 2 | 2 | 3 |
As of December 31, 2022, according to the All View online report, the market share and market position of the online retail salesof Company's major product categories are shown in the following table:
| Kitchen appliance packages | Range hood and gas hobs | Range hood | Gas hobs | Built-in steam & grill oven | Built-in electrical steam oven | Built-in dishwasher |
| 30.5% | 32.4% | 16.1% | 9.9% | 14.4% | 23.9% | 15.1% |
| 1 | 1 | 1 | 4 | 3 | 1 | 3 |
As of December 31, 2022, according to the All View Real Estate Report, the market share of ROBAM in refined decorationchannel was 33.1%, ranking second in the industry.In 2022, the technology sector focused on science and technology and kitchen appliances, improved the hard technology ofproducts, had a new launch for digital kitchen appliances, and promoted the reform and innovation of the industry. “Creator i1”,the first ROKI digital kitchen appliance product in the industry won the “2022 Red-Top Award for High-end HouseholdAppliances and Consumer Electronics in China”. In addition, the Company and China Household Electric Appliance ResearchInstitute jointly issued the Technical Specification for High-Performance Integrated Stoves, leading the integrated stoves industryinto the era of high performance. In this year, the Company applied for 1351 patents, including 401 invention patents; As ofDecember 31, 2022, the Company had been granted a total of 3457 patents, including 91 invention patents. This year, theCompany presided over the formulation of 10 standards and participated in the formulation of 20 standards. Among them, theindustry standard Steam Oven-Oven, the formulation of which was presided over by the Company, was successfully selected as theZhejiang manufacturing standard application project. Besides, its technological innovation ability has been recognized by theindustry, and it has won the first and second prizes of the 2022 Science and Technology Progress Award by China National LightIndustry Council, and the range hood project has been awarded with the first prize for four consecutive times.In 2022, the marketing sector deepened the high-end positioning of brand, constantly enriched the product matrix, entered theintegrated stove market, opened the digital era of kitchen appliances, providing a full range of comprehensive solutions for kitchenappliances. In terms of retail channels, the Company strengthened its high-end brand advantage, gave full play to the efficiency ofspecialty stores, expanded front-end market traffic through innovative channels, accelerated the construction of sinking channels,and optimized channel efficiency. Meanwhile, the Company focused on the users, upgraded the worry-free kitchen reform service,consistently creating value for the users. In terms of e-commerce channels, the Company strengthened brand positioning, madenew and old media work together, efficiently tapped traffic value and revitalized the potential of stock market. In terms ofengineering channels, the Company optimized customer structure and strengthened risk management awareness, kept the marketadvantage of old categories, and stimulated the improvement of permeability of new categories. In terms of overseas channels, itsteadily promoted the global layout and the process of brand internationalization.In 2022, the production sector focused on “stabilizing production, strengthening organization, ensuring production and supply,improving quality and efficiency, consolidating the foundation and seeking qualitative change”, being committed to becoming oneof the manufacturing benchmarks with strong comprehensive competitiveness in China's manufacturing industry. The Companycontinuously promoted quality improvement and process innovation, focused on the building of differentiated and refinedmanufacturing capabilities, to ensure the high quality delivery of various kitchen appliances. In this year, it won the “2022National Quality Benchmark” award issued by the China Association for Quality. At the same time, by building an end-to-endintegrated supply chain, it aimed to create a cost control system with comprehensive competitive advantages to continuouslyachieve the goal of cost reduction and efficiency improvement. Unmanned factories will deepen the digitalization construction andapplication, so as to further build a digital transparent future factory in the future. The Maoshan Intelligent Manufacturing Parkproject had been gradually put into use, giving rise to a continuously improvement of production efficiency and production benefit.In 2022, the brand sector continued to building the first brand image of high-end kitchen appliances in China that knows Chinesecooking best, and empowered kitchen appliances with science and technology, making the starting point of technology kitchenhigher. The Company held the 2022 New Technology Product Launch Conference for China New Kitchen, released the newgeneration of high-performance integrated stoves and other new kitchen appliance products; in addition, it held the Global LaunchConference for ROKI Digital Kitchen Appliance, launched the first set of digital kitchen appliance product “Creator i1”, and thefirst digital person in the industry, Mr. ROKI. It held “China-Chic Family Feast”, the first Chinese Cooking Competition, thesecond Dishwasher Festival and food education system activities and other activities, named “I Heard it's Delicious 2”, appeared
2022 Full Annual Report
on “Topics in Focus”, “The Treasured Voice 3” and other programs, making a continuously improvement of its brand exposureand influence. In addition, as the exclusive supplier of official household kitchen appliances for the 2022 Hangzhou Asian Games,the Company helped to spread Chinese cooking culture and boosted the construction of Asian Games cities.In 2022, for the brand “MQ”, which inherited the genes of excellent kitchen appliances, the Company explored the road of newretail development with professional kitchen appliances as the development cornerstone and integrated kitchen appliances as thegrowth momentum. By complementing with ROBAM, the Company comprehensively upgraded organizational resources, brandpotential energy, product innovation, channel expansion and other aspects of the brand “MQ” to provide users with ultimateexperience. For the brand “Kinde”, the Company consolidated the foundation, reformed and transformed, further deepened thehigh-end strategies, and developed the customized market. For the brand “DACHOO”, the Company positioned it as professionalmulti-functional desktop cooking appliances. The Company will further build new brand matrixes to achieve diversity integration.In 2022, the Company continued to be recognized by the capital market in terms of corporate governance, internal managementand shareholder return. The Company became a council member of China Association for Public Companies. It was awarded levelA (Excellent) in the 2021 Annual Information Disclosure Assessment of listed companies in Shenzhen Stock Exchange, and haswon this award for nine consecutive years. At the same time, based on the improvement and excellent performance in corporategovernance and employee welfare projects, its MSCI ESG rating was upgraded to grade A, ranking high among global peer(household durable goods) companies.In order to realize common prosperity and build a normalized incentive mechanism, the Company launched the 2022 Stock OptionIncentive Plan, which aims to provide stock option incentives for the Company's middle-level core business and technicalbackbones and consolidate the Company's long-term development foundation. The Company has been always adhering to standardoperation, being deeply engaged in the kitchen field, assisting in value investment, and promoting the high-quality development ofthe Company.
2. Revenue and Costs
(1) Operating income composition
Unit: yuan
| 2022 | 2021 | Year-on-year increase / decrease | |||
| Amount | Proportion in operating income | Amount | Proportion in operating income | ||
Total operating income
| Total operating income | 10,271,500,571.04 | 100% | 10,147,706,035.35 | 100% | 1.22% |
By industry
By industryHome and kitchen & bathappliances
| Home and kitchen & bath appliances | 9,981,652,062.48 | 97.18% | 9,878,609,034.58 | 97.35% | 1.04% |
Other business income
| Other business income | 289,848,508.56 | 2.82% | 269,097,000.77 | 2.65% | 7.71% |
By product
By productFirst category group
| First category group |
Including: Range hood
| Including: Range hood | 4,832,350,321.78 | 47.05% | 4,879,636,891.65 | 48.09% | -0.97% |
Gas hobs
| Gas hobs | 2,456,953,764.20 | 23.92% | 2,439,639,215.87 | 24.04% | 0.71% |
Sterilizer cabinet
| Sterilizer cabinet | 477,168,426.61 | 4.65% | 544,149,587.07 | 5.36% | -12.31% |
Second category group
| Second category group |
Including: Steam oven-oven
| Including: Steam oven-oven | 739,678,668.33 | 7.20% | 647,136,752.08 | 6.38% | 14.30% |
Steamer
| Steamer | 99,986,752.60 | 0.97% | 150,479,922.38 | 1.48% | -33.55% |
Steamer
| Steamer | 82,492,751.09 | 0.80% | 132,013,212.98 | 1.30% | -37.51% |
Third category group
| Third category group |
Including: Dishwasher
| Including: Dishwasher | 593,794,747.49 | 5.78% | 450,505,656.90 | 4.44% | 31.81% |
Water purifier
| Water purifier | 54,081,866.41 | 0.53% | 59,858,528.51 | 0.59% | -9.65% |
Water heaters
| Water heaters | 192,404,223.01 | 1.87% | 155,054,325.57 | 1.53% | 24.09% |
Integrated stove
| Integrated stove | 384,843,160.10 | 3.75% | 326,347,237.29 | 3.22% | 17.92% |
Other small homeappliances
| Other small home appliances | 67,897,380.86 | 0.66% | 93,787,704.28 | 0.92% | -27.61% |
Other business income
| Other business income | 289,848,508.56 | 2.82% | 269,097,000.77 | 2.65% | 7.71% |
By region
By regionEast China - mainproducts
| East China - main products | 4,974,280,646.54 | 48.42% | 4,699,565,607.49 | 46.33% | 5.85% |
2022 Full Annual Report
| East China - other | 289,848,508.56 | 2.82% | 269,097,000.77 | 2.65% | 7.71% |
South China
| South China | 1,269,202,599.03 | 12.36% | 1,313,350,785.57 | 12.94% | -3.36% |
Central China
| Central China | 859,455,161.51 | 8.37% | 890,428,360.89 | 8.77% | -3.48% |
North China
| North China | 1,250,622,282.44 | 12.18% | 1,242,294,816.78 | 12.24% | 0.67% |
Northeast China
| Northeast China | 484,194,864.36 | 4.71% | 512,607,935.65 | 5.05% | -5.54% |
Northwest China
| Northwest China | 444,338,961.01 | 4.33% | 509,788,589.04 | 5.02% | -12.84% |
Southeast China
| Southeast China | 637,508,722.80 | 6.21% | 647,294,350.69 | 6.38% | -1.51% |
Overseas regions
| Overseas regions | 62,048,824.79 | 0.60% | 63,278,588.47 | 0.62% | -1.94% |
Distribution model
Distribution modelSales by proxy
| Sales by proxy | 2,446,494,399.39 | 23.82% | 3,070,367,965.64 | 30.25% | -20.32% |
Sales by dealers
| Sales by dealers | 301,984,213.55 | 2.94% | 380,213,068.56 | 3.75% | -20.58% |
Direct sales
| Direct sales | 5,402,928,683.48 | 52.60% | 4,647,292,563.60 | 45.80% | 16.26% |
Engineering
| Engineering | 2,058,478,176.62 | 20.04% | 1,976,492,346.14 | 19.48% | 4.15% |
Other
| Other | 61,615,098.00 | 0.60% | 73,340,091.41 | 0.72% | -15.99% |
(2) Industries, products, regions and sales models that account for more than 10% of the Company's operating income
or profit?Applicable □ Not applicable
Unit: yuan
| Operating income | Operating cost | Gross margin ratio | Year-on-year increase / decrease of operating income | Year-on-year increase / decrease of operating cost | Year-on-year increase / decrease of gross margin ratio |
By industry
By industryHome andkitchen & bathappliances
| Home and kitchen & bath appliances | 10,271,500,571.04 | 5,137,368,758.15 | 49.98% | 1.22% | 6.25% | -2.37% |
By product
By productRange hood
| Range hood | 4,832,350,321.78 | 2,332,382,332.73 | 51.73% | -0.97% | 3.13% | -1.92% |
Gas hobs
| Gas hobs | 2,456,953,764.20 | 1,115,134,305.77 | 54.61% | 0.71% | 6.31% | -2.39% |
By region
By regionEast China
| East China | 4,974,280,646.54 | 2,361,595,253.33 | 52.52% | 5.85% | 9.65% | -1.65% |
South China
| South China | 1,269,202,599.03 | 688,488,642.51 | 45.75% | -3.36% | 0.74% | -2.21% |
North China
| North China | 1,250,622,282.44 | 620,671,859.40 | 50.37% | 0.67% | 7.40% | -3.11% |
Distribution model
Distribution modelSales by proxy
| Sales by proxy | 2,446,494,399.39 | 1,437,334,857.11 | 41.25% | -20.32% | -9.97% | -6.76% |
Direct sales
| Direct sales | 5,402,928,683.48 | 2,407,765,169.75 | 55.44% | 16.26% | 24.06% | -2.80% |
Engineering
| Engineering | 2,058,478,176.62 | 1,071,050,433.40 | 47.97% | 4.15% | 1.92% | 1.14% |
In the case that the statistical standards for main business data of the Company are adjusted during the reporting period, the mainbusiness data of the Company in recent 1 year are subject to those after the adjustment of the statistical standards at the end of thereporting period
□ Applicable ?Not applicable
(3) Whether the Company's physical sales revenue is greater than the service revenue?Yes □ No
| Industry category | Item | Unit | 2022 | 2021 | Year-on-year increase / decrease |
Home and kitchen &bath appliances
| Home and kitchen & bath appliances | Sales quantity | Unit | 7,757,460 | 8,026,289 | -3.35% |
| Production output | Unit | 7,557,374 | 8,079,472 | -6.46% |
2022 Full Annual Report
| Inventory | Unit | 2,075,152 | 2,275,238 | -8.79% |
Reasons for more than 30% year-on-year changes in the relevant data
□ Applicable ?Not applicable
(4) Performance of major sales contracts and major purchase contracts signed by the Company up to the reportingperiod
□ Applicable ?Not applicable
(5) Composition of operating cost
Industry and product categories
Unit: yuan
| Industry category | Item | 2022 | 2021 | Year-on-year increase / decrease | ||
| Amount | Proportion in operating cost | Amount | Proportion in operating cost | |||
Home andkitchen &bathappliances
| Home and kitchen & bath appliances | Manufacturing costs | 517,639,044.69 | 10.07% | 375,524,089.21 | 7.77% | 37.84% |
| Raw materials | 4,425,668,122.58 | 86.15% | 4,240,067,637.57 | 87.69% | 4.38% | |
| Labor | 194,061,590.88 | 3.78% | 219,461,677.59 | 4.54% | -11.57% |
Unit: yuan
| Product Classification | Item | 2022 | 2021 | Year-on-year increase / decrease | ||
| Amount | Proportion in operating cost | Amount | Proportion in operating cost | |||
Rangehood
| Range hood | Manufacturing costs | 282,015,436.10 | 5.49% | 213,123,127.91 | 4.41% | 32.33% |
| Raw materials | 1,946,232,805.60 | 37.88% | 1,929,019,611.59 | 39.90% | 0.89% | |
| Labor | 104,134,091.03 | 2.03% | 119,516,025.36 | 2.47% | -12.87% |
Gas hobs
| Gas hobs | Manufacturing costs | 58,395,892.78 | 1.14% | 37,797,820.14 | 0.78% | 54.50% |
| Raw materials | 1,031,439,648.62 | 20.08% | 982,173,775.43 | 20.31% | 5.02% | |
| Labor | 25,298,764.37 | 0.49% | 29,017,912.81 | 0.60% | -12.82% |
Steamoven-oven
| Steam oven-oven | Manufacturing costs | 37,886,184.41 | 0.74% | 20,520,264.95 | 0.42% | 84.63% |
| Raw materials | 317,516,080.41 | 6.18% | 280,530,437.29 | 5.80% | 13.18% | |
| Labor | 16,540,158.74 | 0.32% | 14,288,741.43 | 0.30% | 15.76% |
Dish-washingmachine
| Dish-washing machine | Manufacturing costs | 39,309,333.79 | 0.77% | 40,968,858.77 | 0.85% | -4.05% |
| Raw materials | 275,583,128.32 | 5.36% | 218,178,826.01 | 4.51% | 26.31% | |
| Labor | 12,107,381.36 | 0.24% | 11,704,580.04 | 0.24% | 3.44% |
Other
| Other | Manufacturing costs | 100,032,197.61 | 1.95% | 63,114,017.44 | 1.31% | 58.49% |
| Raw materials | 854,896,459.63 | 16.64% | 830,164,987.25 | 17.17% | 2.98% | |
| Labor | 35,981,195.38 | 0.70% | 44,934,417.95 | 0.93% | -19.93% |
(6) Whether the consolidation scope changes in the reporting period
?Yes □ NoIn June 22, 2022, the Company invested and established Hangzhou Jinhe Electric Appliances Co., Ltd. with the registered capitalof RMB 10 million and shareholding ratio of 100%. Such company belongs to the wholesale and retail industry and mainly
2022 Full Annual Report
engages in the sales of kitchen appliance products of the Company. Now, its registered capital has been paid in and the companyhas been put into operation.
(7) Major changes or adjustments of business, products or services of the Company during the reporting period
□ Applicable ?Not applicable
(8) Major sales customers and major suppliers
Major sales customers of the Company
| Total sales amount of top five customers (yuan) | 3,419,623,147.78 |
Proportion of total sales amount of top five customers in totalannual sales
| Proportion of total sales amount of top five customers in total annual sales | 33.29% |
Among the sales amount of top five customers, proportion ofsales amount of related parties in total annual sales
| Among the sales amount of top five customers, proportion of sales amount of related parties in total annual sales | 0.00% |
Top 5 customers of the Company
| No. | Customer name | Sales Amount (yuan) | Proportion in total annual sales |
| 1 | Unit 1 | 1,879,893,592.38 | 18.29% |
| 2 | Unit 2 | 785,441,885.78 | 7.65% |
| 3 | Unit 3 | 292,840,935.77 | 2.85% |
| 4 | Unit 4 | 232,876,119.48 | 2.27% |
| 5 | Unit 5 | 228,570,614.37 | 2.23% |
Total
| Total | -- | 3,419,623,147.78 | 33.29% |
Other information of major customers
□ Applicable ?Not applicable
Major suppliers of the Company
| Total purchase amount of top five suppliers (yuan) | 833,307,047.52 |
Proportion of total purchase amount of top five suppliers in totalannual purchase amount
| Proportion of total purchase amount of top five suppliers in total annual purchase amount | 20.22% |
Among the purchase amount of top five suppliers, proportion ofpurchase amount of related parties in total annual purchaseamount
| Among the purchase amount of top five suppliers, proportion of purchase amount of related parties in total annual purchase amount | 0.00% |
Top 5 suppliers of the Company
| No. | Supplier name | Purchase amount (yuan) | Proportion in total annual purchase amount |
| 1 | Unit 1 | 212,820,142.38 | 5.16% |
| 2 | Unit 2 | 194,092,130.95 | 4.71% |
| 3 | Unit 3 | 168,826,616.91 | 4.10% |
| 4 | Unit 4 | 135,995,120.29 | 3.30% |
| 5 | Unit 5 | 121,573,036.99 | 2.95% |
Total
| Total | -- | 833,307,047.52 | 20.22% |
Other information of major suppliers
□ Applicable ?Not applicable
3. Cost
Unit: yuan
| 2022 | 2021 | Year-on-year increase / decrease | Description of major changes |
Selling expenses
| Selling expenses | 2,613,626,073.89 | 2,454,418,039.92 | 6.49% | / |
Management costs
| Management costs | 430,968,403.74 | 363,762,372.63 | 18.48% | / |
Financial expenses
| Financial expenses | -157,222,288.61 | -139,673,507.87 | 12.56% | / |
2022 Full Annual Report
| Research and development expenses | 391,614,805.38 | 366,026,666.34 | 6.99% | / |
4. R&D investment
R&D personnel of the Company
| 2022 | 2021 | Proportion of change |
Number of R&D personnel(person)
| Number of R&D personnel (person) | 929 | 876 | 6.05% |
Proportion of R&D personnel
| Proportion of R&D personnel | 18.23% | 17.95% | 0.28% |
Educational structure of R&D personnel
Educational structure of R&D personnelBachelor
| Bachelor | 683 | 652 | 4.75% |
Master
| Master | 146 | 130 | 12.31% |
Age composition of R&D personnel
Age composition of R&D personnelUnder 30 years old
| Under 30 years old | 297 | 261 | 13.79% |
30~40 years old
| 30~40 years old | 476 | 463 | 2.81% |
R&D investment of the Company
| 2022 | 2021 | Proportion of change |
R&D investment amount (yuan)
| R&D investment amount (yuan) | 391,614,805.38 | 366,026,666.34 | 6.99% |
Proportion of R&D investment inoperating revenue
| Proportion of R&D investment in operating revenue | 3.81% | 3.61% | 0.20% |
Capitalized amount of R&Dinvestment (yuan)
| Capitalized amount of R&D investment (yuan) | 0.00 | 0.00 | 0.00% |
Proportion of capitalized R&Dinvestment in R&D investment
| Proportion of capitalized R&D investment in R&D investment | 0.00% | 0.00% | 0.00% |
Reasons and effects of major changes in the composition of R&D personnel of the Company
□ Applicable ?Not applicable
Reasons for significant changes in the proportion of total R&D investment amount in operating revenue compared with theprevious year
□ Applicable ?Not applicable
Reasons for the great changes of R&D investment capitalization rate and description of its rationality
□ Applicable ?Not applicable
5. Cash flow
Unit: yuan
| Item | 2022 | 2021 | Year-on-year increase / decrease |
Subtotal cash inflows fromoperating activities
| Subtotal cash inflows from operating activities | 11,572,752,136.63 | 10,571,104,254.72 | 9.48% |
Subtotal cash outflows fromoperating activities
| Subtotal cash outflows from operating activities | 9,627,965,832.61 | 9,205,727,035.39 | 4.59% |
Net cash flow from operatingactivities
| Net cash flow from operating activities | 1,944,786,304.02 | 1,365,377,219.33 | 42.44% |
Subtotal cash inflows frominvestment activities
| Subtotal cash inflows from investment activities | 3,038,030,947.22 | 2,774,993,853.52 | 9.48% |
Subtotal cash outflows frominvestment activities
| Subtotal cash outflows from investment activities | 3,082,085,886.40 | 3,635,682,805.12 | -15.23% |
Net cash flow from investmentactivities
| Net cash flow from investment activities | -44,054,939.18 | -860,688,951.60 | Not applicable |
Subtotal cash inflows fromfinancing activities
| Subtotal cash inflows from financing activities | 66,662,732.06 | 31,544,588.74 | 111.33% |
2022 Full Annual Report
| Subtotal cash outflows from financing activities | 496,668,186.35 | 701,527,338.97 | -29.20% |
Net cash flow from financingactivities
| Net cash flow from financing activities | -430,005,454.29 | -669,982,750.23 | Not applicable |
Net increase of cash and cashequivalents
| Net increase of cash and cash equivalents | 1,476,425,521.39 | -166,107,693.21 | Not applicable |
Description of main influencing factors of significant changes in relevant data on a year-on-year basis?Applicable □ Not applicableDuring the reporting period, the net cash flow from operating activities increased by 42.44% year-on-year, which was mainly dueto the strengthened risk control and the increased sales collection in the current period.During the reporting period, the cash flow outflow from investment activities decreased by 15.23% year-on-year, which wasmainly due to the decreased amount of matured bank wealth management products.During the reporting period, the cash flow outflow from financial activities decreased by 29.20% year-on-year during the reportingperiod, which was mainly due to the share repurchases in the previous period.
Reasons for significant difference between the net cash flow from operating activities of the Company and the net profit of thecurrent year in the reporting period
□ Applicable ?Not applicable
V. Non-main business analysis
□ Applicable ?Not applicable
VI. Analysis of assets and liabilities
1. Major changes in asset composition
Unit: yuan
| End of 2022 | Beginning of 2022 | Proportion change | Description of major changes | |||
| Amount | Proportion in total assets | Amount | Proportion in total assets | |||
Monetary capital
| Monetary capital | 5,292,762,670.94 | 35.19% | 3,802,201,346.55 | 27.34% | 7.85% | / |
Accountsreceivable
| Accounts receivable | 1,689,606,828.94 | 11.23% | 1,597,692,860.90 | 11.49% | -0.26% | / |
Inventory
| Inventory | 1,610,110,798.10 | 10.71% | 1,772,231,632.25 | 12.74% | -2.03% | / |
Investmentproperties
| Investment properties | 55,887,198.54 | 0.37% | 11,085,896.07 | 0.08% | 0.29% | / |
Long-term equityinvestment
| Long-term equity investment | 8,718,505.62 | 0.06% | 5,405,129.91 | 0.04% | 0.02% | / |
Fixed assets
| Fixed assets | 1,622,235,227.74 | 10.79% | 1,179,306,020.01 | 8.48% | 2.31% | / |
Construction inprogress
| Construction in progress | 406,258,146.69 | 2.70% | 454,643,364.82 | 3.27% | -0.57% | / |
Right-of-useassets
| Right-of-use assets | 22,220,144.13 | 0.15% | 29,902,954.22 | 0.22% | -0.07% | / |
Short-termborrowing
| Short-term borrowing | 51,723,429.99 | 0.34% | 29,616,655.41 | 0.21% | 0.13% | / |
Contractliabilities
| Contract liabilities | 959,915,567.03 | 6.38% | 1,026,782,402.35 | 7.38% | -1.00% | / |
Lease liabilities
| Lease liabilities | 18,588,966.67 | 0.12% | 26,177,034.29 | 0.19% | -0.07% | / |
The proportion of overseas assets is relatively high
□ Applicable ?Not applicable
2022 Full Annual Report
2. Assets and liabilities measured with fair value
?Applicable ? Not applicableSee X. Financial Reports, XI. Fair Value Disclosure and Notes
3. Limitation on the assets and rights as of the end of the reporting period
Use of restricted monetary funds
| Item | Year-end balance | Year-beginning balance |
| Letter of guarantee and bill acceptance security deposit | 96,335,329.20 | 82,212,526.20 |
| ETC deposit | 13,000.00 | |
| Total | 96,348,329.20 | 82,212,526.20 |
VII. Analysis of investment
1. Overall situation
□ Applicable ?Not applicable
2. Significant equity investments acquired during the reporting period
□ Applicable ?Not applicable
3. Significant ongoing non-equity investments during the reporting period
□ Applicable ?Not applicable
4. Financial asset investment
(1) Securities investments
□ Applicable ?Not applicable
The Company had no securities investments in the reporting period.
(2) Derivatives investment
□ Applicable ?Not applicable
The Company had no derivatives investments in the reporting period.
5. Use of funds raised
□ Applicable ?Not applicable
No funds raised are used in the reporting period.VIII. Sales of major assets and equities
1. Sales of major assets
□ Applicable ?Not applicable
The Company did not sell major assets in the reporting period.
2. Sales of major equities
□ Applicable ?Not applicable
IX. Analysis of main holding and joint-stock companies?Applicable □ Not applicableJoint-stock companies that affect the net profits of the Company by more than 10% and main subsidiaries
Unit: yuan
| Company | Company | Main | Registere | Total assets | Net assets | Operating income | Operating profit | Net profit |
2022 Full Annual Report
| name | type | business | d capital |
ShanghaiROBAMElectricApplianceSales Co.,Ltd.
| Shanghai ROBAM Electric Appliance Sales Co., Ltd. | Subsidiary | Sales of kitchen electric appliance products | 5000000 | 114,682,531.50 | 2,512,132.95 | 394,385,254.82 | -17,260,433.05 | -14,464,589.80 |
BeijingROBAMElectricApplianceSales Co.,Ltd.
| Beijing ROBAM Electric Appliance Sales Co., Ltd. | Subsidiary | Sales of kitchen electric appliance products | 5000000 | 88,385,708.49 | 41,111,522.58 | 542,976,748.20 | -12,096,164.51 | -9,642,241.11 |
HangzhouMingqiElectric Co.,Ltd.
| Hangzhou Mingqi Electric Co., Ltd. | Subsidiary | Sales of kitchen electric appliance products | 50000000 | 173,946,094.51 | 50,130,395.33 | 340,119,786.11 | -21,697,104.97 | -20,376,970.76 |
ShengzhouKindeIntelligentKitchenElectric Co.,Ltd.
| Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. | Subsidiary | Production and sales of kitchen electric appliance products | 32653061 | 501,112,499.41 | 252,244,096.11 | 170,999,666.69 | -21,651,500.08 | -24,500,532.58 |
Acquisition and disposal of subsidiaries during the reporting period
□ Applicable ?Not applicable
X. Structured entities controlled by the Company
□ Applicable ?Not applicable
XI. Prospect of the Company's future development
1. Company development strategy (2020-2022)
Focus on cooking, focus on range hoods, expand the first category advantages, lead the second category, and steadily promote thethird category. Adhere to the spirit of hard-working vise entrepreneurship, take products and users as the core, create a competitiveadvantage of the enterprise. Continue to create a more “convenient, healthy and interesting” kitchen life for users, build a globalbrand and a century-old enterprise.I. Overall goal: build a global brand and a century-old enterprise.To be a world-class century-old leader of cooking innovation.II. Business goal: concentrate on cooking, focus on range hoods, expand the first category advantages, lead the second category,and steadily promote the third category.The first category refers to the product group represented by range hoods. The second category refers to the electrified cookingproduct group represented by steam oven-oven. The third category refers to the water kitchen appliance product group representedby dishwashers.III. Core work: take products and users as the core, create a competitive advantage of the enterprise, and continue to create a more“convenient, healthy and interesting” kitchen life for users.The core of products focus on the leading product technology; users refer to the consumers who purchase and use kitchen products.At present, the kitchen appliance industry has gradually entered the era of stock game. With the acceleration of industryintegration, products and user experience will become more and more important. Through technological innovation, expand thecompetitive advantages of products, increase the market share driven by products, pay attention to the user's cooking process andcooking environment, take improving the user's cooking experience as the starting point, make the products and user experiencethe Company's competitive advantage, and continue to create a more “convenient, healthy and interesting” kitchen life for users.
2. Mission, vision and values of the Company
Mission: To render happiness of kitchen life for more families.Vision: To be a world-class century-old leader of cooking innovation.Values: Hard-working vise entrepreneurship.
2022 Full Annual Report
3. In 2023, the Company's working policy will be “building dreams and traveling far, innovating and reforming for success”,continuously keep the competitive advantage of traditional categories, vigorously develop new categories such as dishwashers,steam oven-ovens, and integrated stoves, and drive the growth of business scale. It will target digital kitchen appliances to enhanceinnovation capabilities, create core competitiveness of technological innovation, and open a new era of digital kitchen appliances.
2022 Full Annual Report
Section 4 Corporate GovernanceI. Basic State of Corporate GovernanceIn the reporting period, the Company constantly improved the corporate governance structure, established and improved internalmanagement and control systems, and continued to carry out in-depth corporate governance activities in strict accordance with theCompany law, theSecurities Law, the Governance Guidelines for Listed Companies, the Rules for Stock Listing of Shenzhen StockExchange and relevant laws and regulations of China Securities Regulatory Commission to further regulate the Companyoperation and improve the corporate government level. By the end of the reporting period, the actual situation of corporategovernance conformed to the normative documents on listed corporate governance issued by China Securities RegulatoryCommission.During the reporting period, the Company operated in strict accordance with national laws and regulations, Rules for Stock Listingof Shenzhen Stock Exchange and Guidelines on the Standardized Operation of Listed Companies on the Main Board, andperformed its obligations of information disclosure in a timely, complete, true, accurate and fair manner. The Company has notreceived the relevant documents of administrative supervision measures taken by the regulatory authorities.
(1) Shareholders and shareholders’ meeting
In strict accordance with the Rules of the Shareholders’ Meeting of Listed Companies and the Rules of Procedure of theShareholders' Meeting, the Company shall convene the shareholders’ meeting to ensure that all shareholders, especially minorityshareholders, enjoy equal status and fully exercise their rights.
(2) Company and controlling shareholders
The Company has independent business and operational independence and is independent from the controlling shareholders inbusiness, personnel, assets, institutions and finance. The Company's board of directors, the board of supervisors and internalorganize operate independently. The controlling shareholders of the Company can strictly regulate their own behaviors, withoutdirectly or indirectly intervening in the Company's decision-making and business activities beyond the shareholders’ meeting.
(3) Directors and board of directors
The Company elects its directors in strict accordance with the recruiting procedures stipulated in the “Articles of Association”; allthe directors of the Company can carry out their work in accordance with the “Rules of Procedure of the Board of Directors” and“Guidelines on the Behaviors of Directors of Listed Companies”, attend the board of directors and shareholders' meetingsearnestly, actively participate in the training of relevant knowledge, and be familiar with relevant laws and regulations.
(4) Supervisors and Board of Supervisors
The Company shall elect supervisors in strict accordance with the relevant provisions of the Company Law and the Articles ofAssociation, and the number and composition of the board of supervisors shall meet the requirements of laws and regulations. Inaccordance with the requirements of the Rules of Procedure of the Board of Supervisors, the Company's supervisors can earnestlyperform their duties, effectively supervise the Company's major issues, related party transactions, financial condition, and theperformance of directors and managers, and express independent opinions.
(5) Performance Evaluation and Incentive and Restraint Mechanisms
The Company is gradually establishing a fair and transparent performance evaluation standard and incentive and restraintmechanism for directors, supervisors and managers. The appointment of the Company's managers is open and transparent andconforms to the provisions of laws and regulations.
(6) Information Disclosure and Transparency
The Company carries out information disclosure and investor relations management under the board secretary responsibilitysystem; the Company performs the information disclosure procedure in strict accordance with theMeasures for the Administrationof Information Disclosure and discloses the information on the designated information disclosure media such as Securities Times,China Securities Journal, Securities Daily, Shanghai Securities News and cninfo in a true, accurate, complete and timely manneraccording to law; meanwhile, according to the requirements of the Measures for the Investor Relations Management, the Companystandardizes investor reception procedures, receives visits and inquiries from shareholders, and ensures that all shareholders haveequal access to the Company information.
(7) Stakeholder
The Company fully respects and safeguards the legitimate rights and interests of relevant stakeholders, realizes the coordinationand balance of interests of the society, shareholders, the Company and employees, and jointly promotes the sustainable and steadydevelopment of the Company.
(8) Internal Audit System
2022 Full Annual Report
The Company has established an internal audit system and set up an internal audit department. The board of directors hasappointed the person in charge of internal audit to effectively control the Company's daily operation and management, internalcontrol system and major issues of the Company. There is no significant difference between the actual situation of corporategovernance and the normative documents on listed corporate governance issued by China Securities Regulatory Commission.II. Independence of the Company Relative to the Controlling Shareholders and Actual
Controllers in Ensuring the Company's Assets, Personnel, Finance, Organization,Business, etc.The Company operates in strict accordance with the Company Law and Articles of Association, establishes and improves thecorporate governance structure, is completely separated from the controlling shareholders in terms of business, personnel, assets,institutions and finance, and has independent and complete business and independent operation capability.III. Horizontal competition
□ Applicable ?Not applicable
IV. Information about the annual general meeting of shareholders and extraordinary
general meeting of shareholders held during the reporting period
1. General meeting of shareholders during the reporting period
| Meeting session | Meeting type | Investor participation proportion | Convening date | Date of disclosure | Meeting resolution |
First ExtraordinaryGeneral Meeting ofShareholders in2022
| First Extraordinary General Meeting of Shareholders in 2022 | Extraordinary general meeting of shareholders | 62.89% | April 21, 2022 | April 22, 2022 | Announcement of Resolutions of 2022 First Extraordinary General Meeting of Shareholders (Announcement No.: 2022-027) |
Annual generalmeeting ofshareholders in2021
| Annual general meeting of shareholders in 2021 | Annual general meeting of shareholders | 63.52% | June 6, 2022 | June 7, 2022 | Announcement of Resolutions of 2021 Annual General Meeting of Shareholders (Announcement No.: 2022-038) |
SecondExtraordinary General Meetingof Shareholders in2022
| SecondExtraordinary General Meeting of Shareholders in 2022 | Extraordinary general meeting of shareholders | 64.42% | September 13, 2022 | September 14, 2022 | Announcement of Resolutions of 2022 Second Extraordinary General Meeting of Shareholders (Announcement No.: 2022-046) |
2. The preferred shareholders with voting rights restored request an extraordinary general meeting ofshareholders
□ Applicable ?Not applicable
V. Directors, Supervisors and Senior Management
1. Basic information
During the reporting period, whether there was any resignation of directors and supervisors and dismissal of senior managementduring their term of office?Yes ?No
| Name | Position | Status of service | Gender | Age | Start date of tenure | End date of tenure | Number of shares held at the beginning of the period (shares) | Number of shares held at the end of the period (shares) |
RenJianhua
| Ren Jianhua | Chairman | Incumbent | Male | 66 | August 18, 2020 | August 17, 2023 | 5,923,150 | 5,923,150 |
Ren Fujia
| Ren Fujia | Deputy | Incumbent | Male | 39 | August 18, 2020 | August 17, 2023 | 2,100,075 | 2,100,075 |
2022 Full Annual Report
chairman,generalmanagerZhaoJihong
| Zhao Jihong | Director | Incumbent | Male | 60 | August 18, 2020 | August 17, 2023 | 1,267,565 | 1,267,565 |
RenLuozhong
| Ren Luozhong | Director | Incumbent | Male | 60 | August 18, 2020 | August 17, 2023 | 1,267,562 | 1,267,562 |
WangGang
| Wang Gang | Director, secretary to the board of directors | Incumbent | Male | 47 | August 18, 2020 | August 17, 2023 | 576,750 | 576,750 |
ShenGuoliang
| Shen Guoliang | Director | Incumbent | Male | 57 | August 18, 2020 | August 17, 2023 | 1,143,264 | 1,143,264 |
MaGuoxin
| Ma Guoxin | Independent director | Leaving office | Male | 69 | August 18, 2020 | September 13, 2022 | 0 | 0 |
HeYuanfu
| He Yuanfu | Independent director | Incumbent | Male | 67 | August 18, 2020 | August 17, 2023 | 0 | 0 |
ChenYuanzhi
| Chen Yuanzhi | Independent director | Incumbent | Male | 45 | August 18, 2020 | August 17, 2023 | 0 | 0 |
YuLieming
| Yu Lieming | Independent director | Incumbent | Male | 45 | September 13, 2022 | August 17, 2023 | 0 | 0 |
ZhangLinyong
| Zhang Linyong | Chairman of the board of supervisors | Incumbent | Male | 57 | August 18, 2020 | August 17, 2023 | 834,315 | 834,315 |
TangGenquan
| Tang Genquan | Employee supervisor | Incumbent | Male | 62 | August 18, 2020 | August 17, 2023 | 834,312 | 834,312 |
ZhangSongnian
| Zhang Songnian | Supervisor | Incumbent | Male | 56 | August 18, 2020 | August 17, 2023 | 834,312 | 834,312 |
ZhangHuifen
| Zhang Huifen | Employee supervisor | Incumbent | Female | 44 | August 18, 2020 | August 17, 2023 | 0 | 0 |
ShenYueming
| Shen Yueming | Supervisor | Incumbent | Male | 63 | August 18, 2020 | August 17, 2023 | 53,875 | 53,875 |
XiaZhiming
| Xia Zhiming | Deputy general manager | Incumbent | Male | 47 | August 18, 2020 | August 17, 2023 | 411,950 | 411,950 |
HeYadong
| He Yadong | Deputy general manager | Incumbent | Male | 48 | August 18, 2020 | August 17, 2023 | 411,950 | 411,950 |
ZhouHaixin
| Zhou Haixin | Deputy general manager | Incumbent | Male | 47 | May 10, 2022 | August 17, 2023 | 0 | 0 |
ZhangGuofu
| Zhang Guofu | Chief financial officer | Incumbent | Male | 53 | August 18, 2020 | August 17, 2023 | 411,950 | 411,950 |
Total
| Total | -- | -- | -- | -- | -- | -- | 16,071,030 | 16,071,030 |
Change of directors, supervisors and senior management?Applicable □ Not applicable
| Name | Position held | Type | Date | Cause |
Zhou Haixin
| Zhou Haixin | Deputy general manager | Elected | May 10, 2022 | Elected |
Yu Lieming
| Yu Lieming | Independent director | Elected | September 13, 2022 | Elected |
Ma Guoxin
| Ma Guoxin | Independent director | Leave office upon expiration of tenure | September 13, 2022 | Leave office upon expiration of tenure |
2. Service status
1). Resume of current directors
Professional background, main work experience and main responsibilities currently in the Company of current directors,
2022 Full Annual Report
supervisors and senior management of the CompanyMr. Ren Jianhua, Han nationality, born in August 1956, Chinese, without permanent residency abroad; junior high schooleducation, member of Communist Party of China, economist. He began to work in 1978 and successively served as the supply andmarketing section chief and factory director of Yuhang Hongxing Hardware Factory, the chairman, general manager and Secretaryof the Party branch of Hangzhou ROBAM Industrial Group Co., Ltd., and the chairman and general manager of HangzhouROBAM Home Appliances & Kitchen Sanitary Co., Ltd. He has won the titles of national model worker and outstanding memberof Communist Party of Zhejiang Province, and was elected as the deputy to the 8th and 10th National People's Congress ofZhejiang Province, deputy to the 11th National People's Congress of Hangzhou City, the Party representative, deputy to the 12thand 13th National People's Congress of Hangzhou City, and the 12th Fengyun Zhejiang Merchants. At present, he is the chairmanof Hangzhou ROBAM Appliances Co., Ltd., ROBAM Industrial Group Co., Ltd., Hangzhou Nbond Nonwoven Co., Ltd.,Hangzhou Guoguang Touring Commodity Co., Ltd., Hangzhou Amblem Kitchenware Co., Ltd., the executive director and generalmanager of Hangzhou Mingqi Electric Co., Ltd., the executive director and general manager of Hangzhou ROBAM FuchuangInvestment Management Co., Ltd., the deputy chairman of Garden Hotel Hangzhou, the executive director of Zhejiang HangzhouYuhang Rural Commercial Bank Company Limited, Hangzhou Dongming Forest Park Co., Ltd., Hangzhou Bonyee DailyNecessity Technology Co., Ltd., the executive director and general manager of Hangzhou Jinchuang Investment Co., Ltd., theexecutive partner of Hangzhou Jinnuochang Investment Management Partnership (Limited Partnership).Mr. Ren Fujia, Han nationality, born in January 1983, Chinese, without permanent residency abroad; bachelor degree. He used tobe the product manager of marketing department and the deputy general manager of R&D center of Hangzhou ROBAM IndustrialGroup Co., Ltd., the deputy general manager of Hangzhou ROBAM Home Appliances & Kitchen Sanitary Co., Ltd.; now he is thedirector of Hangzhou Nbond Nonwoven Co., Ltd., the deputy chairman and general manager of Hangzhou ROBAM AppliancesCo., Ltd., the director of Hangzhou Amblem Kitchenware Co., Ltd., and the deputy chairman of De Dietrich Trade (Shanghai) Co.,Ltd.Mr. Zhaojihong, Han nationality, born in December 1962, Chinese, without permanent residency abroad; master degree, senioreconomist. He successively served as the chairman and general manager of Hubei Huangshi Jinye Group Co., Ltd, the deputygeneral manager and general manager of the marketing center of ROBAM Group, the deputy general manager and generalmanager of the marketing center of ROBAM Home Appliances, and the deputy general manager of the Company. He hassuccessively won the titles of national outstanding entrepreneur, outstanding Hangzhou merchant in the World, “Top 10 influentialfigures in China's kitchen and bathroom industry”, “Top 10 personalities in China's home appliance industry”, and twice won theMondale · world economic man achievement award and was selected into the dictionary of Chinese experts and celebrities. Atpresent, he is the director of uTransHub Technologies Co., Ltd., the director and general manager of Hangzhou ROBAMAppliances Co., Ltd., the director of Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd., and the chairman of ZhejiangCooking Future Technology Co., Ltd.Mr. Ren Luozhong, Han nationality, born in August 1962, Chinese, without permanent residency abroad; EMBA, assistanteconomist. He began to work in 1982 and successively served as the operation director of Yuhang Hongxing Hardware Factory,the deputy general manager, general manager of the marketing center, general manager of the technology center and director of thefirst production department of ROBAM Group, the director and deputy general manager of ROBAM Home Appliances, and thedeputy general manager of the Company. At present, he is the deputy chairman of Hangzhou ROBAM Industrial Group Co., Ltd.,the director of Hangzhou Amblem Kitchenware Co., Ltd., the president of Hangzhou Yuhang District ROBAM CharityFoundation.Mr. Wang Gang, Han nationality, born in October 1975, Chinese, without permanent residency abroad; master degree, EMBA ofChina Europe International Business School, member of Communist Party of China, certified public accountant, senior economist.He began to work in 1997 and successively served as an inspector of Haining Local Taxation Bureau of Zhejiang Province, theR&D director of Shanghai Realize Investment Consulting Co., Ltd., the secretary of the board of directors, director of humanresources, general manager assistant of Shanghai Hailong Software Co., Ltd, and the secretary of the board of directors ofHangzhou ROBAM Home Appliances & Kitchen Sanitary Co., Ltd. At present, he is the secretary of the board of directors of theCompany, the director of Hangzhou Nbond Nonwoven Co., Ltd., the director of Shengzhou Kinde Intelligent Kitchen Electric Co.,Ltd., the director of De Dietrich Trade (Shanghai) Co., Ltd., the supervisor of Hangzhou ROBAM Fuchuang InvestmentManagement Co., Ltd., the director of Hangzhou Guoguang Touring Commodity Co., Ltd., the director of Hangzhou Fortune GasCryogenic Group Co., Ltd., the director of Versolsolar Hangzhou Co., Ltd., the director of Hangzhou Wheeler General MachineryCo., Ltd., the independent director of Hangzhou Great Star Industrial Co., Ltd., the independent director of Hangzhou XiaodianTechnology Co., Ltd., and the supervisor of Shanghai MXCHIP Information Technology Co., Ltd., the legal representative andsecretary general of association of listed companies of Linping District, Hangzhou City.Mr. Shen Guoliang, Han nationality, born in November 1965, Chinese, without permanent residency abroad; high schooleducation. He began to work in 1982 and successively served as the chief of the transportation section, chief financial officer andthe deputy general manager of the marketing center of Yuhang Hongxing Hardware Factory, the director of ROBAM HomeAppliances, and the chairman of the board of supervisors of the Company. At present, he is the director of Hangzhou ROBAMIndustrial Group Co., Ltd., the deputy chairman of Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd., the director of ZhejiangCooking Future Technology Co., Ltd., the supervisor of Hangzhou Amblem Kitchenware Co., Ltd., and the supervisor of BeijingROBAM Electric Appliance Sales Co., Ltd.Mr. He Yuanfu, Han nationality, born in March 1955, bachelor degree, Chinese, without permanent residency abroad; professor-level senior accountant, certified public accountant, retired in January 2012. At present, he is the independent director of Sichuan
2022 Full Annual Report
Langsha Holding Co., Ltd., the independent director of Zhejiang Ruirentang Pharmaceutical Chain Co., Ltd., the independentdirector of CertusNet Information Co., Ltd., and the independent director of Chint Anneng Digital Power (Zhejiang) Co., Ltd. Heused to be the chief member of the accounting management office of Zhejiang Provincial Department of Finance, the SecretaryGeneral of Zhejiang Institute of Certified Public Accountants, the director of Zhejiang Financial Cadre Education Center, and thevice president of Zhejiang Zhonghua Accounting Correspondence School.Mr. Chen Yuanzhi, Han nationality, born in November 1977, Chinese, member of Communist Party of China, doctor degree inmanagement, is now the independent director of the Company, a professor of China Executive Leadership Academy Pudong, anadjunct professor of East China Normal University, an adjunct researcher in the Research Center of Technological Innovation,Tsinghua University, the executive director of China Soft Science Research Society, a managing director of the Chinese Instituteof Business Administration, and an expert of Shanghai Science and Technology Expert Database.Mr. Yu Lieming, Han nationality, born in December 1977, Chinese, without permanent residency abroad; master degree. He beganto work in 1994 and served as the deputy director of the Administration Committee of Yuhang Economic and TechnologicalDevelopment Zone of Hangzhou, the vice president of Chunfeng Holdings Group Co., Ltd., and chairman of the board ofsupervisors of Zhejiang CFMOTO Power Co., Ltd At present, he is the executive vice president and secretary of the board ofdirectors of Hamaton Automotive Technology Co., Ltd.
2). Resume of current supervisors
Mr. Zhang Linyong, Han nationality, born in August 1965, Chinese, without permanent residency abroad; high school education,member of Communist Party of China, assistant economist. He began to work in 1984 and successively served as the officedirector of Yuhang Hongxing Hardware Factory, the general manager, director of the engineering department of Hangzhou HuafaElectric Appliance Co., Ltd., and the director of ROBAM Home Appliances. At present, he is the chairman of the board ofsupervisors of the Company, the director of Hangzhou ROBAM Industrial Group Co., Ltd.Mr. Tang Genquan, Han nationality, born in October 1960, Chinese, without permanent residency abroad; college degree, engineer.He began to work in 1979 and successively served as the mould workshop director and technical director of Yuhang HongxingHardware Factory, the deputy general manager of technology, general manager of production quality and director of the thirdproduction department of ROBAM Group, the director of ROBAM Home Appliances. In 1993-1994 and 2005-2006, he wasawarded as the outstanding scientific and technological worker of Hangzhou. In 2004, he was selected into the “new century talentproject 139 youth talent cultivation candidate list”, applied for 1 national invention patent, 7 utility model patents and 10 designpatents. He has been employed as a member of China daily hardware industry expert committee since 1996 and the deputysecretary general of fifth China daily hardware industry expert committee since 2006. At present, he is the employee representativesupervisor of the Company, the director of Hangzhou ROBAM Industrial Group Co., Ltd., the supervisor of Hangzhou ROBAMGas Station Co., Ltd., and the secretary general of Hangzhou Yuhang District ROBAM Charity Foundation.Mr. Zhang Songnian, Han nationality, born in September 1966, Chinese, without permanent residency abroad; high schooleducation. He began to work in 1983 and successively served as the production section chief of Yuhang Hongxing HardwareFactory, the deputy general manager of Hangzhou Huafa Electric Appliance Co., Ltd., the deputy director of productiondepartment, director of the second production department and general manager of product R&D center of ROBAM Group, and thesupervisor of ROBAM Home Appliances. At present, he is the supervisor of the Company, the director of Hangzhou ROBAMIndustrial Group Co., Ltd.Ms. Zhang Huifen, Han nationality, born in October 1977, Chinese, without permanent residency abroad; college degree, junioreconomist, junior accountant. She began to work in 1997 and successively served as the employee of Hangzhou Gaobo ElectronicCo., Ltd., the employee of punching machine third workshop, member of audit department of marketing center and office clerk offinancial center of ROBAM Group. At present, he is the employee representative supervisor of the Company.Mr. Shen Yueming, Han nationality, born in November 1959, Chinese, without permanent residency abroad; high schooleducation. He began to work in 1978 and successively served as the factory director of Tingzhi Food Factory of Yuhang Supplyand Marketing Cooperative, the production section director of Hangzhou Huafa Electric Appliance Co., Ltd., and the generalmanager of Beijing ROBAM Electric Appliance Sales Co., Ltd. At present, he is the supervisor of the Company.
3). Resume of current senior management
Mr. Ren Fujia is the general manager of the Company. Please refer to the resume of the directors of the Company for theintroduction.Mr. Xiazhiming, Han nationality, born in May 1975, Chinese, without permanent residency abroad; college degree. He began towork in 1996 and successively served as the production section chief of Qiaori Electric Products Factory, the manufacturingdirector of Foxconn Technology Co., Ltd. and the production director of the Company's production center. At present, he is thedeputy general manager of the Company.Mr. He Yadong, Han nationality, born in August 1974, Chinese, without permanent residency abroad; bachelor degree, senioreconomist. He began to work in 2000 and successively served as the marketing section chief, director of marketing department anddeputy general manager of marketing center of ROBAM Group, the assistant to general manager of ROBAM Home Appliances,and director of the Company. At present, he is the deputy general manager of the Company.
2022 Full Annual Report
Mr. Zhou Haixin, Han nationality, born in February 1975, Chinese, without permanent residency abroad; doctor degree, seniorengineer. He began to work in 2001 and successively served as the researcher of Agilent Technologies Software Co. Ltd., theproject manger of Sony Ericsson Mobile Communication Products Co., Ltd., the project director of Qingdao Haier Telecom Co.,Ltd., the R&D director of Guangbao Mobile Electronic and Telecommunication Components Co., Ltd., and the senior R&Ddirector of the Company. At present, he is the deputy general manager of the Company.Mr. Zhang Guofu, Han nationality, born in December 1969, Chinese, without permanent residency abroad; bachelor degree. Hebegan to work in 1990 and successively served as the capital section chief, director of financial center of Hangzhou ROBAMIndustrial Group Co., Ltd., and financial chief of Hangzhou ROBAM Home Appliances & Kitchen Sanitary Co., Ltd. At present,he is the chief financial officer of the Company, the supervisor of Hangzhou Mingqi Electric Co., Ltd., the director of ShengzhouKinde Intelligent Kitchen Electric Co., Ltd., and the director of De Dietrich Trade (Shanghai) Co., Ltd.Service status in the shareholder unit?Applicable □ Not applicable
| Name of staff | Shareholder unit name | Position held in shareholder unit | Whether to receive remuneration or allowance in the shareholder unit |
Ren Jianhua
| Ren Jianhua | Hangzhou ROBAM Industrial Group Co., Ltd. | Chairman | No |
Ren Jianhua
| Ren Jianhua | Hangzhou Jinchuang Investment Co., Ltd. | Executive director | No |
RenLuozhong
| Ren Luozhong | Hangzhou ROBAM Industrial Group Co., Ltd. | Deputy chairman | No |
Zhao Jihong
| Zhao Jihong | Hangzhou ROBAM Industrial Group Co., Ltd. | Director, general manager | No |
ShenGuoliang
| Shen Guoliang | Hangzhou ROBAM Industrial Group Co., Ltd. | Director | No |
ZhangLinyong
| Zhang Linyong | Hangzhou ROBAM Industrial Group Co., Ltd. | Director | No |
TangGenquan
| Tang Genquan | Hangzhou ROBAM Industrial Group Co., Ltd. | Director | No |
ZhangSongnian
| Zhang Songnian | Hangzhou ROBAM Industrial Group Co., Ltd. | Director | No |
Description of service status in the shareholder unit: none
Description of service status in the shareholder unit: none
Service status in other unit?Applicable □ Not applicable
| Name of staff | Other unit name | Position held in other unit |
| Ren Jianhua | Hangzhou Amblem Kitchenware Co., Ltd. | Chairman |
| Garden Hotel Hangzhou | Deputy chairman | |
| Hangzhou Dongming Forest Park Co., Ltd. | Director | |
| Hangzhou Nbond Nonwoven Co., Ltd. | Chairman | |
| Zhejiang Hangzhou Yuhang Rural Commercial Bank Company Limited | Director | |
| Hangzhou ROBAM Gas Station Co., Ltd. | Chairman | |
| Hangzhou Jinnuochang Investment Management Partnership (Limited Partnership) | Executive partner | |
| Hangzhou Bonyee Daily Necessity Technology Co., Ltd. | Executive director | |
| Hangzhou ROBAM Fuchuang Investment Management Co., Ltd. | Executive director and general manager | |
| Hangzhou Mingqi Electric Co., Ltd. | Executive director and general manager | |
| Ren Fujia | De Dietrich Trade (Shanghai) Co., Ltd. | Deputy chairman |
| Hangzhou Amblem Kitchenware Co., Ltd. | Director | |
| Hangzhou Nbond Nonwoven Co., Ltd. | Director | |
| Zhao Jihong | Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. | Chairman |
| uTransHub Technologies Co., Ltd. | Director | |
| Zhejiang Cooking Future Technology Co., Ltd. | Chairman | |
| Ren Luozhong | Hangzhou Amblem Kitchenware Co., Ltd. | Director |
| Shen Guoliang | Hangzhou Amblem Kitchenware Co., Ltd. | Supervisor |
| Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. | Deputy chairman | |
| Beijing ROBAM Electric Appliance Sales Co., Ltd. | Supervisor |
2022 Full Annual Report
| Zhejiang Cooking Future Technology Co., Ltd. | Director | |
| He Yuanfu | Sichuan Langsha Holding Ltd. | Independent director |
| Zhejiang Ruirentang Pharmaceutical Chain Co., Ltd. | Independent director | |
| CertusNet Information Co., Ltd. | Independent director | |
| Chint Anneng Digital Power (Zhejiang) Co., Ltd. | Independent director | |
| Chen Yuanzhi | China Executive Leadership Academy Pudong | Professor |
| Hangzhou Gosing Rubber&Plastic Materials Co., Ltd. | Independent director | |
| Research Center of Technological Innovation, Tsinghua University | Researcher | |
| Yu Lieming | Hamaton Automotive Technology Co., Ltd. | Secretary to the board of directors |
| Wang Gang | Hangzhou ROBAM Fuchuang Investment Management Co., Ltd. | Supervisor |
| Shanghai MXCHIP Information Technology Co., Ltd. | Supervisor | |
| Hangzhou Fortune Gas Cryogenic Group Co., Ltd. | Director | |
| Versolsolar Hangzhou Co., Ltd. | Director | |
| Hangzhou Nbond Nonwoven Co., Ltd. | Director | |
| De Dietrich Trade (Shanghai) Co., Ltd. | Director | |
| Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. | Director | |
| Hangzhou Wheeler General Machinery Co., Ltd. | Director | |
| Hangzhou Guoguang Touring Commodity Co., Ltd. | Director | |
| Hangzhou Xiaodian Technology Co., Ltd. | Independent director | |
| Hangzhou Great Star Industrial Co., Ltd. | Independent director | |
| Zhang Guofu | De Dietrich Trade (Shanghai) Co., Ltd. | Director |
| Hangzhou Mingqi Electric Co., Ltd. | Supervisor | |
| Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. | Director | |
| Tang Genquan | Hangzhou ROBAM Gas Station Co., Ltd. | Supervisor |
Punishment of current directors, supervisors and senior management of the Company and those who left during the reportingperiod by securities regulators in recent three years
□ Applicable ?Not applicable
3. Remuneration of Directors, Supervisors and Senior Management
Decision making procedures, determination basis and actual payment of remuneration of directors, supervisors and seniormanagementThe Company has established a sound performance appraisal system and salary system for senior management, whose workperformance is directly linked to their income. The remuneration and appraisal committee of the board of directors is responsiblefor the year-end assessment of the working ability, performance of duties, completion of responsibility objectives, etc. of thesenior management, and preparing the remuneration plan and submitting it to the board of directors of the Company for approval.The remuneration of directors, supervisors and senior management shall be paid on time.Remuneration of directors, supervisors and senior management during the reporting period
Unit: 10,000 yuan
| Name | Position | Gender | Age | Status of service | Total pretax remuneration received from the Company | Whether to get remuneration from related parties of the Company |
RenJianhua
| Ren Jianhua | Chairman | Male | 66 | Incumbent | 86.91 | No |
Ren Fujia
| Ren Fujia | Deputy chairman, general manager | Male | 39 | Incumbent | 121.02 | No |
RenLuozhong
| Ren Luozhong | Director | Male | 60 | Incumbent | 81.31 | No |
ZhaoJihong
| Zhao Jihong | Director | Male | 60 | Incumbent | 84.11 | No |
WangGang
| Wang Gang | Director, secretary to the board of directors | Male | 47 | Incumbent | 98.43 | No |
2022 Full Annual Report
| Shen Guoliang | Director | Male | 57 | Incumbent | 72.39 | No |
Ma Guoxin
| Ma Guoxin | Independent director | Male | 69 | Leaving office | 6.69 | No |
He Yuanfu
| He Yuanfu | Independent director | Male | 67 | Incumbent | 9.52 | No |
ChenYuanzhi
| Chen Yuanzhi | Independent director | Male | 45 | Incumbent | 9.52 | No |
YuLieming
| Yu Lieming | Independent director | Male | 45 | Incumbent | 2.86 | No |
ZhangLinyong
| Zhang Linyong | Chairman of the board of supervisors | Male | 57 | Incumbent | 66.52 | No |
TangGenquan
| Tang Genquan | Supervisor | Male | 62 | Incumbent | 82.99 | No |
ZhangSongnian
| Zhang Songnian | Supervisor | Male | 56 | Incumbent | 66.52 | No |
ZhangHuifen
| Zhang Huifen | Supervisor | Female | 44 | Incumbent | 13.72 | No |
ShenYueming
| Shen Yueming | Supervisor | Male | 63 | Incumbent | 28.21 | No |
He Yadong
| He Yadong | Deputy general manager | Male | 48 | Incumbent | 114.89 | No |
XiaZhiming
| Xia Zhiming | Deputy general manager | Male | 47 | Incumbent | 113.32 | No |
ZhouHaixin
| Zhou Haixin | Deputy general manager | Male | 47 | Incumbent | 262.66 | No |
ZhangGuofu
| Zhang Guofu | Chief financial officer | Male | 53 | Incumbent | 102.63 | No |
Total
| Total | -- | -- | -- | -- | 1,424.22 | -- |
VI. Performance of duties by directors during the reporting period
1. Board of Directors during this reporting period
| Meeting session | Convening date | Date of disclosure | Meeting resolution |
The 9th Meeting ofthe Fifth Board ofDirectors
| The 9th Meeting of the Fifth Board of Directors | March 31, 2022 | April 1, 2022 | Announcement of the Resolution of ROBAM's 9th Meeting of the Fifth Board of Directors |
The 10thMeeting ofthe Fifth Board ofDirectors
| The 10thMeeting of the Fifth Board of Directors | April 19, 2022 | April 20, 2022 | Announcement of the Resolution of ROBAM's 10th Meeting of the Fifth Board of Directors |
The 11thMeeting ofthe Fifth Board ofDirectors
| The 11thMeeting of the Fifth Board of Directors | May 10, 2022 | May 11, 2022 | Announcement of the Resolution of ROBAM's 11th Meeting of the Fifth Board of Directors |
The 12thMeeting ofthe Fifth Board ofDirectors
| The 12thMeeting of the Fifth Board of Directors | August 25, 2022 | August 26, 2022 | Announcement of the Resolution of ROBAM's 12th Meeting of the Fifth Board of Directors |
The 13thMeeting ofthe Fifth Board ofDirectors
| The 13thMeeting of the Fifth Board of Directors | October 24, 2022 | October 25, 2022 | Announcement of the Resolution of ROBAM's 13th Meeting of the Fifth Board of Directors |
2. Attendance of directors at the board meetings and the general meeting of shareholders
Attendance of directors at the board meetings and the general meeting of shareholdersName ofdirector
| Name of director | Number of board meetings to be attended during this reporting period | Number of board meetings attended on site | Number of board meetings attended by correspondence | Number of board meetings delegated to attend | Number of board meetings absent | Whether not to personally attend the board meeting for two consecutive times | Number of shareholders' meetings attended |
Ren Jianhua
| Ren Jianhua | 5 | 4 | 1 | 0 | 0 | No | 3 |
2022 Full Annual Report
| Ren Fujia | 5 | 4 | 1 | 0 | 0 | No | 3 |
Zhao Jihong
| Zhao Jihong | 5 | 4 | 1 | 0 | 0 | No | 3 |
Ren Luozhong
| Ren Luozhong | 5 | 4 | 1 | 0 | 0 | No | 3 |
Wang Gang
| Wang Gang | 5 | 4 | 1 | 0 | 0 | No | 3 |
Shen Guoliang
| Shen Guoliang | 5 | 4 | 1 | 0 | 0 | No | 3 |
Ma Guoxin
| Ma Guoxin | 4 | 3 | 1 | 0 | 0 | No | 3 |
He Yuanfu
| He Yuanfu | 5 | 4 | 1 | 0 | 0 | No | 3 |
Chen Yuanzhi
| Chen Yuanzhi | 5 | 2 | 3 | 0 | 0 | No | 3 |
Yu Lieming
| Yu Lieming | 1 | 1 | 0 | 0 | 0 | No | 0 |
3. Objections made by directors on relevant matters
Whether the director raises any objection to the relevant matters of the Company
□ Yes ?No
During the reporting period, the directors did not raise any objection to the relevant matters of the Company.
4. Other description on the performance of duties by the directorsWhether relevant suggestions of the director to the Company have been adopted: Not applicableDescription on adoption or non-adoption of relevant suggestions of the director to the Company: noneVII. Special committees under the board of directors during the reporting period
| Name of committee | Member | Number of meetings held | Convening date | Meeting content |
Auditcommittee
| Audit committee | He Yuanfu, Chen Yuanzhi, Ren Luozhong | 1 | January 15, 2022 | 1. Review the 2021 Audit Work Plan of the Company |
Auditcommittee
| Audit committee | He Yuanfu, Chen Yuanzhi, Ren Luozhong | 1 | April 18, 2022 | 1. Review the 2021 Audit Report of the Company; 2. Review the 2021 Internal Control Evaluation Report; 3. Review the Proposal on Renewing the Appointment of the Company's Audit Institution for 2022; 4. Review the Full Text of First Quarter Report of the Company in 2022. |
Auditcommittee
| Audit committee | He Yuanfu, Chen Yuanzhi, Ren Luozhong | 1 | August 25, 2022 | 1. Review the Semiannual Report of the Company in 2022 |
Auditcommittee
| Audit committee | He Yuanfu, Chen Yuanzhi, Ren Luozhong | 1 | October 24, 2022 | 1. Review the Third Quarter Report of the Company in 2022 |
Nominationcommittee
| Nomination committee | He Yuanfu, Chen Yuanzhi, Ren Jianhua | 1 | May 4, 2022 | 1. Review theProposal on Nominating the Senior Management of the Company |
Nominationcommittee
| Nomination committee | He Yuanfu, Chen Yuanzhi, Ren Jianhua | 1 | August 25, 2022 | 1. Review the Proposal on Nominating the Independent Directors of the Company |
Remunerationand assessmentcommittee
| Remuneration and assessment committee | Ma Guoxin, Chen Yuanzhi, Ren Fujia | 1 | January 20, 2022 | 1. Review the Proposal on 2021 Annual Performance Appraisal of Senior Management |
Remunerationand assessmentcommittee
| Remuneration and assessment committee | Ma Guoxin, Chen Yuanzhi, Ren Fujia | 1 | March 31, 2022 | 1. Review The Company's 2022 Stock Option Incentive Plan (draft) and its Abstract; 2. Review the Implementation, Assessment and Management Measures for the Company's 2022 Stock Option Incentive Plan; |
Strategiccommittee
| Strategic committee | Ren Jianhua, Ren Fujia, Ma Guoxin, Wang Gang | 1 | January 13, 2022 | 1. Review the Proposal on 2021 Annual Strategic Review |
VIII. Work of board of supervisors
Whether the board of supervisors find any risk of the Company in the supervision activities during the reporting period
□ Yes ?No
The board of supervisors has no objection to the supervisory matters during the reporting period.
2022 Full Annual Report
IX. Company Employees
1. Number of employees, professional composition and education background
| Number of employees in the parent company at the end of the reporting period (person) | 3,322 |
Number of employees in major subsidiaries at the end of thereporting period (person)
| Number of employees in major subsidiaries at the end of the reporting period (person) | 1,773 |
Total number of employees at the end of the reporting period(person)
| Total number of employees at the end of the reporting period (person) | 5,095 |
Total number of employees receiving salary in the current period(person)
| Total number of employees receiving salary in the current period (person) | 5,102 |
Number of retired employees whose expenses need to be borneby the parent company and major subsidiaries (person)
| Number of retired employees whose expenses need to be borne by the parent company and major subsidiaries (person) | 91 |
Professional composition
Professional compositionProfessional composition categories
| Professional composition categories | Number of professionals (person) |
Production personnel
| Production personnel | 1,937 |
Sales personnel
| Sales personnel | 1,467 |
Technical personnel
| Technical personnel | 929 |
Financial personnel
| Financial personnel | 176 |
Administrative personnel
| Administrative personnel | 586 |
Total
| Total | 5,095 |
Education background
Education backgroundEducation background categories
| Education background categories | Number (person) |
Doctor
| Doctor | 8 |
Master
| Master | 200 |
Bachelor
| Bachelor | 1,499 |
College
| College | 1,028 |
Other
| Other | 2,360 |
Total
| Total | 5,095 |
2. Pay policy
The Company has formulated “Salary Management Standards” and “Performance Management Standards”, and established asalary management system based on the post value and centered on the competency and performance evaluation of employees,according to the salary status of the regional market and industry.
3. Training plan
In 2022, the Company carried out various trainings, including Lemon, Blue Whale, Sunflower, Ivy League and other projects aswell as the Elite Plan; As the Company's own mobile learning online platform, Chestnut School played an important role in theachievement transformation of the development course of internal trainer, and the Company's employees' participation in learninghas been greatly improved.
4. Labor outsourcing
?Applicable □ Not applicable
| Total hours of labor outsourcing (hours) | 3,221,420 |
Total remuneration paid for labor outsourcing (yuan)
| Total remuneration paid for labor outsourcing (yuan) | 137,767,526.04 |
X. Profit distribution and share capital increase from capital surplusProfit distribution policy during the reporting period, especially the formulation, implementation or adjustment of cash dividendpolicy?Applicable □ Not applicable
Description for cash dividend policyDoes it meet the requirements of the Company’s articles of association and of the
| Does it meet the requirements of the Company’s articles of association and of the | Yes |
2022 Full Annual Report
resolutions of shareholders’ meeting?Is the dividend distribution standard and proportion specific and clear?
| Is the dividend distribution standard and proportion specific and clear? | Yes |
Are relevant decision-making procedures and mechanisms complete?
| Are relevant decision-making procedures and mechanisms complete? | Yes |
Have the independent directors performed their duties and fulfilled their due roles?
| Have the independent directors performed their duties and fulfilled their due roles? | Yes |
Do the minor shareholders have the chance to fully express their opinions and demands,and are their legal rights and interests fully protected?
| Do the minor shareholders have the chance to fully express their opinions and demands, and are their legal rights and interests fully protected? | Yes |
Are the conditions and procedures normative and transparent in case of adjustments orchanges of the cash dividend policy?
| Are the conditions and procedures normative and transparent in case of adjustments or changes of the cash dividend policy? | Yes |
The Company made profits during the reporting period and the profits available for distribution to shareholders of the parentcompany were positive, but no proposal for the distribution of cash dividend was put forward
□ Applicable ?Not applicable
Profit distribution and share capital increase from capital surplus during the reporting period?Applicable □ Not applicable
| Bonus shares per 10 shares (shares) | 0 |
Dividend per 10 shares (yuan) (including tax)
| Dividend per 10 shares (yuan) (including tax) | 5 |
Equity base of distribution plan (shares)
| Equity base of distribution plan (shares) | 944,094,916 |
Amount of cash dividend (yuan) (including tax)
| Amount of cash dividend (yuan) (including tax) | 472,047,458.00 |
Amount of cash dividend in other forms (e.g. share repurchase)(yuan)
| Amount of cash dividend in other forms (e.g. share repurchase) (yuan) | 0.00 |
Amount of cash dividend (including other forms) (yuan)
| Amount of cash dividend (including other forms) (yuan) | 472,047,458.00 |
Distributable profit (yuan)
| Distributable profit (yuan) | 8,156,489,150.49 |
Ratio of total amount of cash dividend (including other forms)to total amount of distributable profit
| Ratio of total amount of cash dividend (including other forms) to total amount of distributable profit | 100% |
Cash dividend distribution in this period
Cash dividend distribution in this periodShould the Company be in a growing stage and have major capital expenditure arrangements, the cash dividend should account for aminimum of 20% of the profit distribution when the profit is distributed.
Should the Company be in a growing stage and have major capital expenditure arrangements, the cash dividend should account for aminimum of 20% of the profit distribution when the profit is distributed.Description for details of profit distribution or share capital increase from capital surplus plan
Description for details of profit distribution or share capital increase from capital surplus plan
According to the standard unqualified audit report issued by ShineWing Certified Public Accountants, the Company’s net profitattributable to the parent company owner in 2022 was RMB 1,657,226,772.47 (number of parent company), plus the undistributedprofit (parent company) of RMB 6,971,309,836.02 at the beginning of the year, minus the cash dividend of profit distribution of2021, i.e., RMB 472,047,458.00, the Company's profit available to shareholders at the end of 2022 was RMB 8,156,489,150.49.Taking 944,094,916 shares as the radix (the existing total capital stock of 949,024,050 shares, excluding 4,929,134 sharesrepurchased), the Company distributed cash dividends of RMB 5 (tax inclusive) for every 10 shares to all shareholders, amounting upto a total of RMB 472,047,458.00.In case of any change due to the listing of new shares, the exercising of equity incentive, the conversion of convertible bonds intoshares, share repurchase, etc. during the period from the disclosure of the distribution plan to the equity registration date when theprofit distribution is implemented, the distribution proportion will be adjusted accordingly according to the principle that the totalamount of cash dividends will remain unchanged.
According to the standard unqualified audit report issued by ShineWing Certified Public Accountants, the Company’s net profitattributable to the parent company owner in 2022 was RMB 1,657,226,772.47 (number of parent company), plus the undistributedprofit (parent company) of RMB 6,971,309,836.02 at the beginning of the year, minus the cash dividend of profit distribution of2021, i.e., RMB 472,047,458.00, the Company's profit available to shareholders at the end of 2022 was RMB 8,156,489,150.49.Taking 944,094,916 shares as the radix (the existing total capital stock of 949,024,050 shares, excluding 4,929,134 sharesrepurchased), the Company distributed cash dividends of RMB 5 (tax inclusive) for every 10 shares to all shareholders, amounting upto a total of RMB 472,047,458.00.In case of any change due to the listing of new shares, the exercising of equity incentive, the conversion of convertible bonds intoshares, share repurchase, etc. during the period from the disclosure of the distribution plan to the equity registration date when theprofit distribution is implemented, the distribution proportion will be adjusted accordingly according to the principle that the totalamount of cash dividends will remain unchanged.
XI. Implementation of the Company's equity incentive plan, employee stock ownership
plan or other employee incentive measures?Applicable □ Not applicable
1. Equity incentive
2021 stock option plan:
1. 1. On April 19, 2022, the Company held the 10th meeting of the fifth Board of Directors and the 10thmeeting of the fifth Boardof Supervisors, deliberated and adopted the Proposal on the Cancellation of Partial Stock Options in the 2021 Stock OptionIncentive Plan and the Proposal on Cancellation of the 2021 Stock Option Incentive Plan for Failure to Meet the ExerciseConditions during the First Exercise Period.In accordance with relevant laws and regulations and the Company's Proposal on 2021 Stock Option Incentive Plan (draft), 4incentive objects no longer meet the incentive conditions due to their resignation, thus the Company will cancel 80,000 stockoptions which have been granted to but not exercised by such incentive objects; Due to the failure to meet the exercise conditionsof stock options in 2021 during the first exercise period, the Company will cancel 1,184,000 stock options held by the incentiveobjects that have been granted in the first exercise period but do not meet the exercise conditions.
2022 Full Annual Report
2. On April 26, 2022, after verification and confirmation by Shenzhen Branch of China Securities Depository and ClearingCorporation Limited, the cancellation of the aforementioned 1,264,000 stock options has been completed. The Company hascanceled a total of 1,264,000 stock options, accounting for 0.13% of the Company's current total capital stock. The cancellation ofstock options conforms to relevant laws and regulations, the Articles of Association and the Incentive Plan (Draft). The stockoptions that have been canceled this time have not yet been exercised, and the cancellation will not have any impact on theCompany's capital stock, and the capital stock structure has not changed.2022 stock option plan:
1. On March 31, 2022, the Company held the 9th meeting of the fifth board of directors, deliberated and adopted the Proposal on2022 Stock Option Incentive Plan (draft) of the Company and its Abstract and other relevant proposals, and the independentdirectors expressed their independent consent on the matters related to the Company's stock option incentive plan. The 9th meetingof the fifth board of supervisors of the Company deliberated and adopted the above-mentioned relevant proposals and issued theconsent. The Company disclosed the above matters on April 1, 2022.
2. From April 1, 2022 to April 10, 2022, the Company publicized the names and positions of the incentive objects of the stockoption incentive plan through internal posting. On April 13, 2022, the board of supervisors of the Company issued the ReviewOpinions and Announcement of the Board of Supervisors on the List of Incentive Objects of the 2022 Stock Option Incentive Plan.On the same day, the Company disclosed the “Self-inspection Report on Insiders’ and Incentive Objects’ Trading of CompanyStock with Inside Information of 2022 Restricted Stock Incentive Plan”.
3. On April 21, 2022, the Company held the first extraordinary general meeting of shareholders in 2022, deliberated and adoptedthe Proposal on 2022 Stock Option Incentive Plan (draft) of the Company and its Abstract and other relevant proposals. The planwas approved by the first extraordinary general meeting of shareholders in 2022, and the board of directors was authorized todetermine the grant date of stock option, grant stock option to incentive objects when they meet the conditions and handle allmatters necessary for granting equity.
4. On May 10, 2022, the Company's 11th meeting of the fifth Board of Directors and the 11th meeting of the fifth Board ofSupervisors deliberated and adopted the Proposal on Granting Stock Options to Incentive Objects. The board of supervisors onceagain verified the list of incentive objects granted and expressed their consent. The independent directors of the Companyexpressed their independent consent thereon.
5. On May 26, 2022, the Company completed the registration of the option plan grant. Due to the resigned personnel did not havethe qualification of incentive objects, the actual number of incentive objects granted in this stock option incentive plan has beenadjusted from 285 to 282, and the total number of equity actually granted has been adjusted from 4,810,000 to 4,780,000,accounting for approximately 0.50% of the Company's current total capital stock.Equity incentive obtained by directors and senior management of the Company?Applicable ? Not applicableEvaluation mechanism and incentive for senior management:
1. On April 14, 2021, the Company held the 4th meeting of the fifth board of directors, deliberated and adopted the Proposal onBusiness Partner Shareholding Plan (draft) of the Company and its Abstract and other relevant proposals, and the independentdirectors expressed their independent consent on the matters related to the Company's business partner shareholding plan. The 4thmeeting of the fifth board of supervisors of the Company deliberated and adopted the above-mentioned relevant proposals andexpressed their consent. The Company disclosed the above matters on April 15, 2021.
2. On April 30, 2021, the Company held the first extraordinary general meeting of shareholders in 2021, deliberated and adoptedthe Proposal on Business Partner Shareholding Plan (Draft) of the Company and its Abstract and other relevant proposals. Theplan was approved by the first extraordinary general meeting of shareholders in 2021, and the board of directors was authorized todetermine and handle all matters related to the plan.
3. On April 20, 2022, the Company disclosed the Announcement on the Failure to Meet the 2021 Assessment Conditions for theBusiness Partner Shareholding Plan. According to relevant provisions of the shareholding plan, in case of a failure of meeting the2021 assessment conditions for the business partner shareholding plan, the Company will not withdraw the special funds for theshareholding plan this year.
2. Implementation of the employee stock ownership plan
□ Applicable ?Not applicable
3. Other employee incentives
□ Applicable ?Not applicable
2022 Full Annual Report
XII. Construction and implementation of internal control system during the reporting
period
1. Construction and implementation of internal control
See the 2022 Internal Control Self-evaluation Report disclosed by the Company on the designated information disclosure websitehttp://www.cninfo.com.cn for details.
2. Details of significant internal control defects discovered during the reporting period
□ Yes ?No
XIII. Management and control of subsidiaries during the reporting period
The Company appoints directors or senior management to hold regular business and financial meetings every month according tothe Company's development and business objectives specified in the annual budget planning meeting, and timely review andfollow up the implementation of the subsidiaries' business plans and the completion of various performance evaluation indicators.According to the requirements of the Company's Information Disclosure Management System, each subsidiary shall timely reportrelevant information on major business/financial matters to the headquarters of the listed company, give timely feedback on theprogress or changes of major matters, and perform the approval procedures of the board of directors and the general meeting ofshareholders when necessary.XIV. Internal control self-evaluation report or internal control audit report
1. Internal control self-evaluation report
| Full disclosure date of internal control self-evaluation report | April 26, 2023 |
Index of full disclosure of internal controlevaluation report
| Index of full disclosure of internal control evaluation report | Cninfo: Full text of 2022 internal control self-evaluation report of ROBAM |
Proportion of the total assets of the unitincluded in the evaluation scope to the totalassets of the consolidated financialstatement of the Company
| Proportion of the total assets of the unit included in the evaluation scope to the total assets of the consolidated financial statement of the Company | 100.00% |
Proportion of operating income of the unitincluded in the evaluation scope to theoperating income of the consolidatedfinancial statement of the Company
| Proportion of operating income of the unit included in the evaluation scope to the operating income of the consolidated financial statement of the Company | 100.00% |
Defect identification standard
Defect identification standardNumber of major defects in financialreports
| Number of major defects in financial reports | 0 |
Number of major defects in non-financialreports
| Number of major defects in non-financial reports | 0 |
Number of important defects in financialreports
| Number of important defects in financial reports | 0 |
Number of important defects in non-financial reports
| Number of important defects in non-financial reports | 0 |
1. Defect identification standard for internal control of financial reports
| Defect | Definition | Quantitation standard | Qualitative standard |
Majordefect
| Major defect | A combination of one or more internal control deficiencies existing in the internal control that may result in a failure to timely prevent or detect and correct material misstatement in the financial statements. | The quantitative standard takes the operating income and the total assets as the measurement index. 1) The internal control defects that may cause losses or whose losses are related to the income statement are measured on the basis of operating income: Major defect: misstatement amount > 2% of operating income; 2) The internal control defects that may cause losses or whose losses are related to the assets management are measured on the basis of total assets: Major defect: misstatement amount ＞1% of total assets; | Signs of major defects in the financial report include: 1) Corrupt practice of directors, supervisors and senior management; 2) Misstatement correction of material errors in financial reports that have been announced by the Company; 3) Material misstatement in the current financial report, which is not found by the internal control in the process of operation; 4) Ineffective control and supervision of the Company’s external and internal |
2022 Full Annual Report
financial reports by the audit committeeand audit department.
Importantdefect
| Important defect | A combination of one or more internal control deficiencies existing in the internal control that are not as severe as major defects, but are still sufficient to attract the attention of corporate financial reporting supervisors. | The quantitative standard takes the operating income and the total assets as the measurement index. 1) The internal control defects that may cause losses or whose losses are related to the income statement are measured on the basis of operating income: Important defect: 1% of operating income < misstatement amount < 2% of operating income; 2) The internal control defects that may cause losses or whose losses are related to the assets management are measured on the basis of total assets: Important defect: 0.5% of total assets < misstatement amount < 1% of total assets; | Signs of important defects in the financial report include: 1) Failure to select and apply accounting policies in accordance with generally accepted accounting principles; 2) No anti-fraud procedures and control measures have been established; 3) There is no corresponding control mechanism established or no implementation of and no corresponding compensatory control for the accounting treatment of non-routine or special transactions; 4) One or more defects in the control of the final financial reporting process and no reasonable assurance that the financial statements will achieve the objective of authenticity and completeness. |
Commondefect
| Common defect | It refers to other defects other than the major defects and important defects. | The quantitative standard takes the operating income and the total assets as the measurement index. 1) The internal control defects that may cause losses or whose losses are related to the income statement are measured on the basis of operating income: Common defect: misstatement amount < 1% of operating income; 2) The internal control defects that may cause losses or whose losses are related to the assets management are measured on the basis of total assets: Common defect: misstatement amount < 0.5% of total assets; | Common defects in financial reports refer to control defects other than the major defects and important defects mentioned above. |
2. Defect identification standard for internal control of non-financial reports
| Defect | Definition | Quantitation standard | Qualitative standard |
Majordefect
| Major defect | It refers to a combination of one or more control defects that may cause an enterprise to significantly deviate from control objectives. | Major defect: direct property loss ＞RMB 20 million; | 1) The defects in non-financial reports are mainly determined according to the influence of the defects on the business process effectiveness and the possibility of occurrence; 2) The defects with high possibility that will seriously reduce the work efficiency or effect, or seriously increase the uncertainty of the effect, or make it seriously deviate from the expected goal are major defects; |
Importantdefect
| Important defect | It refers to a combination of one or more control defects whose severity and economic consequences are inferior to those of a major defect but may cause an enterprise to deviate from control objectives. | Important defect: RMB 5 million < direct property loss < RMB 20 million; | 1) The defects in non-financial reports are mainly determined according to the influence of the defects on the business process effectiveness and the possibility of occurrence; 2) The defects with high possibility that will significantly reduce the work efficiency or effect, or significantly increase the uncertainty of the effect, or make it significantly deviate from the expected goal are important defects; |
Commondefect
| Common defect | Other control defects other than major defects and important defects. | Common defect: direct property loss < RMB 5 million; | 1) The defects in non-financial reports are mainly determined according to the influence of the defects on the business process effectiveness and the possibility of occurrence; 2) The defects with low possibility that will reduce the work efficiency or effect, or increase the uncertainty of the effect, or make it deviate |
2022 Full Annual Report
from the expected goal are common defects;
2. Internal control audit report
?Applicable □ Not applicable
Deliberations in the internal control audit reportOn December 31, 2022, ROBAM maintained effective internal control over financial reporting in all major aspects in accordancewith the Basic Standards for Enterprise Internal Control and relevant regulations.
On December 31, 2022, ROBAM maintained effective internal control over financial reporting in all major aspects in accordancewith the Basic Standards for Enterprise Internal Control and relevant regulations.Disclosure of internal control audit report
| Disclosure of internal control audit report | Disclosure |
Disclosure date of the full text of internal control audit report
| Disclosure date of the full text of internal control audit report | April 26, 2023 |
Disclosure index of the full text of internal control audit report
| Disclosure index of the full text of internal control audit report | Cninfo: Full text of 2022 internal control audit report of ROBAM |
Type of the opinions on internal control audit report
| Type of the opinions on internal control audit report | Standard unqualified opinions |
Whether there are significant defects in non-financial reports
| Whether there are significant defects in non-financial reports | No |
Whether the accounting firm issues an internal control audit report with non-standard opinions
□ Yes ?No
Whether the internal control audit report issued by the accounting firm is consistent with the self-evaluation report of the board ofdirectors?Yes □ NoXV. Rectification of problems in self-inspection of special actions for governance of listed
companiesAccording to the requirements of the regulatory authorities, the Company has carried out a four-month special self-inspection onthe governance of listed companies since December 17, 2020. In the special self-inspection, the Company comprehensivelyreviewed the corporate governance in seven aspects: the basic situation of listed companies, the operation and decision-making oforganizations, the controlling shareholders, actual controllers and related parties, the construction of internal control standardsystem, information disclosure and transparency and institutions, foreign investors; find problems and deficiencies according tothe regulatory rules, the Articles of Association and other normative documents, take the special self-inspection activity as anopportunity to improve the governance level and safeguard the interests of investors. Through such self-inspection, the Companydoes not violate the provisions of the state and the CSRC. The corporate governance level meets the requirements of laws andregulations such as the Company Law, the Securities Law, the Guidelines for Standard Operation of Listed Companies ofShenzhen Stock Exchange and the Guidelines for Articles of Association of Listed Companies, and the Company’s governancestructure is relatively perfect and its operation is standardized. The Company will continue to sort out and update the issuedinternal control system of the Company in a timely manner in accordance with the existing laws and regulations, and constantlyestablish and improve the internal control system of the Company to make it play a real and effective role.
2022 Full Annual Report
Section 5 Environmental and social responsibility
I. Major environmental issues
Whether the listed company and its subsidiaries are key pollutant discharging units announced by environmental protectionauthorities
□ Yes ?No
Measures taken to reduce carbon emissions during the reporting period and relevant effects
□ Applicable ?Not applicable
Reasons for non-disclosure of other environmental information: noneII. Social responsibilitySee the 2022 Environmental, Social and Corporate Governance Report disclosed by the Company on the designated informationdisclosure media http://www.cninfo.com.cn for details.III. Consolidate and expand the achievements of poverty alleviation and rural
revitalizationSee the 2022 Environmental, Social and Corporate Governance Report disclosed by the Company on the designated informationdisclosure media http://www.cninfo.com.cn for details.
2022 Full Annual Report
Section 6 Important MattersI. Performance in fulfilling commitments
1. Commitments fulfilled within and not fulfilled by the end of the reporting period by the Company’sactual controller, shareholders, related parties, acquirer and other commitment parties?Applicable □ Not applicable
| Commitment reason | Commitment party | Commitment type | Commitment content | Commitment time | Time limit for acceptance | Degree of performance |
| Commitment made at the time of IPO or refinancing | Directors, supervisors and senior management directly or indirectly holding shares of the Company | Commitment to restriction on sales of shares | After the expiry of the 36-month sales restriction period, the shares transferred each year during his/her tenure shall not exceed 25% of the total number of shares held directly or indirectly in the Company; the Company shares directly or indirectly held shall not be transferred within six months after the resignation. | November 23, 2010 | Long-term | Strict performance |
| Commitment made at the time of IPO or refinancing | Hangzhou ROBAM Industrial Group Co., Ltd.; Ren Jianhua | Commitment on avoiding horizontal competition | 1. The Company/I and other enterprises under the control of the Company/me do not, and will not, directly or indirectly, engage in any activities that constitute horizontal competition with the existing and future business of ROBAM and its holding subsidiaries; 2. If any business opportunity obtained the Company/I and other enterprises under the control of the Company/me from any third party constitutes or may constitute substantial competition with the business of ROBAM, the Company/I will immediately notify ROBAM and transfer such business opportunity to ROBAM; 3. The Company/I and other enterprises under the control of the Company/me commit not to provide technical information, process flow, marketing channels or other trade secrets to other companies, enterprises, organizations or individuals whose business constitutes competition with the business of ROBAM. | November 23, 2010 | Long-term | Strict performance |
| Whether the commitment is fulfilled on time | Yes | |||||
2. In case the Company’s asset or project saw earning expectation, and the reporting period is stillcovered by the term of the earning expectation, the Company shall make a statement about the asset orproject fulfilling the original expectation and the reasons thereof.
□ Applicable ?Not applicable
2022 Full Annual Report
II. Non-operating occupation of funds of listed companies by controlling shareholders
and other related parties
□ Applicable ?Not applicable
No non-operating occupation of funds of listed companies by controlling shareholders and other related parties during thereporting period.
III. Illegal external guarantee
□ Applicable ?Not applicable
No illegal external guarantee of the Company during the reporting period.
IV. Statement of the board of directors on the latest “non-standard audit report”
□ Applicable ?Not applicable
V. Statement of the board of directors, the board of supervisors and independent
directors (if any) on the “non-standard audit report” of the accounting firm during thereporting period
□ Applicable ?Not applicable
VI. Explanation of changes in accounting policy and accounting estimates or significant
accounting error correction when compared to the financial statements of the previousyear
□ Applicable ?Not applicable
There is no change in accounting policy, accounting estimate or significant accounting error correction in the reporting period.VII. Explanation of changes in the scope of combined financial statements when compared
with financial statements of the previous fiscal year
?Applicable □ Not applicable
In June 22, 2022, the Company invested and established Hangzhou Jinhe Electric Appliances Co., Ltd. with theregistered capital of RMB 10 million and shareholding ratio of 100%. Such company belongs to the retail andwholesale industry and mainly engages in the sales of kitchen appliance products of the Company. Now, its registeredcapital has been paid in and the company has been put into operation.
VIII. Appointment of and dismissal of accounting firmsAccounting firm currently appointed
| Name of Chinese accounting firm | Shinewing Certified Public Accountants (special general partnership) |
Remuneration (10,000 yuan)
| Remuneration (10,000 yuan) | 145 |
Term of audit services
| Term of audit services | 4 |
CPAs
| CPAs | Lei Yongxin, Wang Qing |
Term of auditing services of CPAs
| Term of auditing services of CPAs | 4 |
Has the accounting firm been changed within the reporting period?
□ Yes ?No
Employment of internal control audit accounting firm, financial advisor or sponsor?Applicable ? Not applicableShineWing Certified Public Accountants (Special general partnership) served as the internal control audit agency of the Companyin 2022, with an audit fee of RMB 1,450,000, including: RMB 1,150,000 for financial statement audit and RMB 300,000 forinternal control audit.
2022 Full Annual Report
IX. Delisting confronted upon disclosure of the annual report
□ Applicable ?Not applicable
X. Bankruptcy reorganization
□ Applicable ?Not applicable
No bankruptcy reorganization of the Company during the reporting period.XI. Major litigation, arbitration matters
□ Applicable ?Not applicable
No major litigation or arbitration matters of the Company during the reporting period.XII. Punishment and rectification
□ Applicable ?Not applicable
No punishment or rectification of the Company during the reporting period.XIII. Credit conditions of the Company, its controlling shareholders and actual controllers
□ Applicable ?Not applicable
XIV. Major related transactions
1. Related transactions related to daily operation
□ Applicable ?Not applicable
No related transactions related to daily operation of the Company during the reporting period.
2. Related transactions arising from the acquisition or sale of assets or equity
□ Applicable ?Not applicable
No Related transactions arising from the acquisition or sale of assets or equity of the Company during the reporting period.
3. Related transactions of joint foreign investment
□ Applicable ?Not applicable
No related transactions of joint foreign investment of the Company during the reporting period.
4. Related claims and debts
□ Applicable ?Not applicable
No related claims and debts of the Company during the reporting period.
5. Transactions with related financial companies
□ Applicable ?Not applicable
There is no deposit, loan, credit or other financial business between the Company and the related financial companies and therelated parties.
6. Transactions between the financial companies controlled by the Company and related parties
□ Applicable ?Not applicable
There is no deposit, loan, credit or other financial business between the financial companies controlled by the Company and therelated parties.
7. Other major related transactions
□ Applicable ?Not applicable
2022 Full Annual Report
No other major related transactions of the Company during the reporting period.
XV. Major contracts and their performance
1. Trusteeship, contracting and lease
(1) Trusteeship
□ Applicable ?Not applicable
No trusteeship of the Company during the reporting period.
(2) Contracting
□ Applicable ?Not applicable
No contracting of the Company during the reporting period.
(3) Lease
□ Applicable ?Not applicable
No lease of the Company during the reporting period.
2. Major guarantee
□ Applicable ?Not applicable
No major guarantee of the Company during the reporting period.
3. Entrusted cash asset management
(1) Entrusted financing
?Applicable □ Not applicableEntrusted financing during the reporting period
Unit: 10,000 yuan
| Specific type | Source of funds for entrusted financing | Amount incurred in entrusted financing | Outstanding balance | Overdue amount not recovered | Overdue amount of impairment accrued for financial management not recovered |
Bank financialproducts
| Bank financial products | Owned fund | 252,000.00 | 251,184.45 | 0 | 0 |
Total
| Total | 252,000.00 | 251,184.45 | 0 | 0 |
Specific circumstance of high-risk entrusted financing with significant single amount or with low security and poor liquidity
□ Applicable ?Not applicable
The entrusted financing is expected not to recover the principal or has other circumstances that may cause impairment
□ Applicable ?Not applicable
(2) Entrusted loans
□ Applicable ?Not applicable
No entrusted loans of the Company during the reporting period.
4. Other major contracts
□ Applicable ?Not applicable
No other major contracts of the Company during the reporting period.
2022 Full Annual Report
XVI. Description of other important events
□ Applicable ?Not applicable
No other important events to be described during the reporting period.
XVII. Major events of subsidiaries?Applicable □ Not applicable
2022 Full Annual Report
Section 7 Changes in Shares and ShareholdersI. Change in shares
1. Change in shares
Unit: share
| Before this change | Increase / decrease (+, -) | After this change | |||||||
| Quantity | Proportion | New issue of shares | Share donation | Share capital increase from reserved funds | Other | Subtotal | Quantity | Proportion | |
I. Restricted shares
| I. Restricted shares | 14,123,269 | 1.49% | -2,070,000 | -2,070,000 | 12,053,269 | 1.27% |
1. State shareholding
| 1. State shareholding |
2. State legal person
shareholding
| 2. State legal person shareholding |
3. Other domestic shareholding
| 3. Other domestic shareholding | 14,123,269 | 1.49% | -2,070,000 | -2,070,000 | 12,053,269 | 1.27% |
Wherein: domestic legal personshareholding
| Wherein: domestic legal person shareholding |
Domestic natural personshareholding
| Domestic natural person shareholding | 14,123,269 | 1.49% | -2,070,000 | -2,070,000 | 12,053,269 | 1.27% |
4. Foreign shareholding
| 4. Foreign shareholding |
Wherein: foreign legal personshareholding
| Wherein: foreign legal person shareholding |
Foreign natural personshareholding
| Foreign natural person shareholding |
II. Unrestricted shares
| II. Unrestricted shares | 934,900,781 | 98.51% | 2,070,000 | 2,070,000 | 936,970,781 | 98.73% |
1. RMB common share
| 1. RMB common share | 934,900,781 | 98.51% | 2,070,000 | 2,070,000 | 936,970,781 | 98.73% |
2. Foreign shares listed in
China
| 2. Foreign shares listed in China |
3. Foreign shares listed abroad
| 3. Foreign shares listed abroad |
4. Other
| 4. Other |
III. Total amount of shares
| III. Total amount of shares | 949,024,050 | 100.00% | 0 | 0 | 949,024,050 | 100.00% |
Causes for change in shares?Applicable □ Not applicableUnlocked by the directors, supervisors and senior management of the Company based on 25% of the Company's shares registeredin his/her name on the last trading day of the previous year.Approval of changes in shares
□ Applicable ?Not applicable
Transfer of share changes
□ Applicable ?Not applicable
Influence of share changes on the basic EPS, diluted EPS, net assets per share attributable to common shareholders of theCompany and other financial indexes in the most recent year and the most recent period
□ Applicable ?Not applicable
Other information the Company deems necessary or required by the securities regulatory authorities to disclose
□ Applicable ?Not applicable
2. Changes in restricted shares
?Applicable □ Not applicable
Unit: share
2022 Full Annual Report
| Shareholder's name | Number of restricted shares at the beginning of the period | Number of restricted shares increased in current period | Number of shares released from restricted sale in current period | Number of restricted shares at the end of the period | Reasons for restricted sale | Date of lifting the restricted sale |
ZhaoJihong
| Zhao Jihong | 1,267,549 | 0 | 316,875 | 950,674 | Lock-up shares for directors, supervisors, senior management | Unlock based on 25% of the Company's shares registered in his/her name on the last trading day of the previous year |
ZhangSongnian
| Zhang Songnian | 834,234 | 0 | 208,500 | 625,734 | Lock-up shares for directors, supervisors, senior management | Unlock based on 25% of the Company's shares registered in his/her name on the last trading day of the previous year |
ZhangLinyong
| Zhang Linyong | 834,236 | 0 | 208,500 | 625,736 | Lock-up shares for directors, supervisors, senior management | Unlock based on 25% of the Company's shares registered in his/her name on the last trading day of the previous year |
ZhangGuofu
| Zhang Guofu | 308,962 | 0 | 0 | 308,962 | Lock-up shares for directors, supervisors, senior management | Unlock based on 25% of the Company's shares registered in his/her name on the last trading day of the previous year |
XiaZhiming
| Xia Zhiming | 308,962 | 0 | 0 | 308,962 | Lock-up shares for directors, supervisors, senior management | Unlock based on 25% of the Company's shares registered in his/her name on the last trading day of the previous year |
WangGang
| Wang Gang | 432,562 | 0 | 0 | 432,562 | Lock-up shares for directors, supervisors, senior management | Unlock based on 25% of the Company's shares registered in his/her name on the last trading day of the previous year |
TangGenquan
| Tang Genquan | 834,234 | 0 | 208,500 | 625,734 | Lock-up shares for directors, supervisors, senior management | Unlock based on 25% of the Company's shares registered in his/her name on the last trading day of the previous year |
ShenGuoliang
| Shen Guoliang | 1,143,198 | 0 | 285,750 | 857,448 | Lock-up shares for directors, supervisors, senior management | Unlock based on 25% of the Company's shares registered in his/her name on the last trading day of the previous year |
RenLuozhong
| Ren Luozhong | 1,267,546 | 0 | 316,875 | 950,671 | Lock-up shares for directors, supervisors, senior management | Unlock based on 25% of the Company's shares registered in his/her name on the last trading day of the previous year |
RenJianhua
| Ren Jianhua | 4,442,362 | 0 | 0 | 4,442,362 | Lock-up shares for directors, supervisors, senior management | Unlock based on 25% of the Company's shares registered in his/her name on the last trading day of the previous year |
Ren Fujia
| Ren Fujia | 2,100,056 | 0 | 525,000 | 1,575,056 | Lock-up shares for directors, supervisors, senior management | Unlock based on 25% of the Company's shares registered in his/her name on the last trading day of the previous year |
He Yadong
| He Yadong | 308,962 | 0 | 0 | 308,962 | Lock-up shares for directors, supervisors, senior management | Unlock based on 25% of the Company's shares registered in his/her name on the last trading day of the previous year |
ShenYueming
| Shen Yueming | 40,406 | 0 | 0 | 40,406 | Lock-up shares for directors, supervisors, senior | Unlock based on 25% of the Company's shares registered in his/her name on the last trading day of the previous year |
2022 Full Annual Report
managementTotal
| Total | 14,123,269 | 0 | 2,070,000 | 12,053,269 | -- | -- |
II. Securities issuance and listing
1. Securities issuance (excluding preferred shares) during the reporting period
□ Applicable ?Not applicable
2. Description of changes in the total number of shares, shareholder structure, asset and liabilitystructure of the Company
□ Applicable ?Not applicable
3. Existing internal employee shares
□ Applicable ?Not applicable
III. Shareholders and actual controllers
1. Number and shareholding of the Company's shareholders
Unit: share
| Total number of common shareholders at the end of the reporting period | 59,999 | Total number of common shareholders at the end of the previous month before the disclosure date of the annual report | 53,121 | Total number of preferred shareholders with voting rights restored at the end of the reporting period | 0 | Total number of preferred shareholders with voting rights restored at the end of the previous month before the disclosure date of the annual report | 0 |
Shareholders holding more than 5% shares or top 10 shareholders
Shareholders holding more than 5% shares or top 10 shareholdersShareholder's
name
| Shareholder's name | Shareholder nature | Shareholding ratio | Number of shares held at the end of the reporting period | Increase or decrease during the reporting period | Number of shares held with limited sales conditions | Number of shares held with unlimited sales conditions | Pledge, mark or freeze | |
| Status of shares | Quantity | |||||||
HangzhouROBAMIndustrialGroup Co.,Ltd.
| Hangzhou ROBAM Industrial Group Co., Ltd. | Domestic non-state legal person | 49.68% | 471,510,000 | 471,510,000 |
Hong KongSecuritiesClearingCompanyLimited
| Hong Kong Securities Clearing Company Limited | Overseas legal person | 9.39% | 89,096,531 | 89,096,531 |
TEMASEKFULLERTONALPHA PTELTD
| TEMASEK FULLERTON ALPHA PTE LTD | Overseas legal person | 1.76% | 16,730,061 | 16,730,061 |
Shen Guoying
| Shen Guoying | Domestic natural person | 1.29% | 12,240,000 | 12,240,000 |
CITICSecuritiesCompanyLimited -SocialSecurity Fund1106 Portfolio
| CITIC Securities Company Limited - Social Security Fund 1106 Portfolio | Other | 0.74% | 7,029,066 | 7,029,066 |
PICC Propertyand CasualtyCompanyLimited -Traditional -GeneralInsurance
| PICC Property and Casualty Company Limited - Traditional - General Insurance | Other | 0.74% | 7,011,440 | 7,011,440 |
2022 Full Annual Report
ProductsNationalSocialSecurity Fund418 Portfolio
| National Social Security Fund 418 Portfolio | Other | 0.72% | 6,822,706 | 6,822,706 |
HangzhouJinchuangInvestmentCo., Ltd.
| Hangzhou Jinchuang Investment Co., Ltd. | Domestic non-state legal person | 0.70% | 6,640,085 | 6,640,085 |
HangzhouYinchuangInvestmentCo., Ltd.
| Hangzhou Yinchuang Investment Co., Ltd. | Domestic non-state legal person | 0.67% | 6,318,000 | 6,318,000 |
Ren Jianhua
| Ren Jianhua | Domestic natural person | 0.62% | 5,923,150 | 4,442,362 | 1,480,788 |
Situation of strategic investorsor general legal personsbecoming the top 10shareholders due to theallotment of new shares (if any)(see note 3)
| Situation of strategic investors or general legal persons becoming the top 10 shareholders due to the allotment of new shares (if any) (see note 3) | N/A |
Description of the above-mentioned shareholderassociation or concerted action
| Description of the above-mentioned shareholder association or concerted action | The actual controller of the Company’s controlling shareholder Hangzhou ROBAM Industrial Group Co., Ltd. and the shareholder Hangzhou Jinchuang Investment Co., Ltd. is Mr. Ren Jianhua, and the natural person shareholder Shen Guoying is the wife of Ren Jianhua. The above shareholders have the possibility of acting in unison. |
Description of the aboveshareholders involved inentrusting / entrusted votingright and waiver of voting right
| Description of the above shareholders involved in entrusting / entrusted voting right and waiver of voting right | N/A |
Special note on the existence ofspecial repurchase accountsamong the top 10 shareholders(if any) (see Note 10)
| Special note on the existence of special repurchase accounts among the top 10 shareholders (if any) (see Note 10) | N/A |
Shareholding of top 10 shareholders with unlimited sales conditions
Shareholding of top 10 shareholders with unlimited sales conditionsShareholder's name
| Shareholder's name | Number of shares with unlimited sales conditions held at the end of the reporting period | Share type | |
| Share type | Quantity | ||
Hangzhou ROBAM IndustrialGroup Co., Ltd.
| Hangzhou ROBAM Industrial Group Co., Ltd. | 471,510,000 | RMB common share | 471,510,000 |
Hong Kong Securities ClearingCompany Limited
| Hong Kong Securities Clearing Company Limited | 89,096,531 | RMB common share | 89,096,531 |
TEMASEK FULLERTONALPHA PTE LTD
| TEMASEK FULLERTON ALPHA PTE LTD | 16,730,061 | RMB common share | 16,730,061 |
Shen Guoying
| Shen Guoying | 12,240,000 | RMB common share | 12,240,000 |
CITIC Securities CompanyLimited - Social Security Fund1106 Portfolio
| CITIC Securities Company Limited - Social Security Fund 1106 Portfolio | 7,029,066 | RMB common share | 7,029,066 |
PICC Property and CasualtyCompany Limited - Traditional- General Insurance Products
| PICC Property and Casualty Company Limited - Traditional - General Insurance Products | 7,011,440 | RMB common share | 7,011,440 |
National Social Security Fund418 Portfolio
| National Social Security Fund 418 Portfolio | 6,822,706 | RMB common share | 6,822,706 |
Hangzhou JinchuangInvestment Co., Ltd.
| Hangzhou Jinchuang Investment Co., Ltd. | 6,640,085 | RMB common share | 6,640,085 |
Hangzhou YinchuangInvestment Co., Ltd.
| Hangzhou Yinchuang Investment Co., Ltd. | 6,318,000 | RMB common share | 6,318,000 |
Industrial and CommercialBank of China Limited－Penghua selects hybridsecurities investment fundswith ingenuity
| Industrial and Commercial Bank of China Limited－Penghua selects hybrid securities investment funds with ingenuity | 5,787,141 | RMB common share | 5,787,141 |
Description of the associationor concerted action between top10 public shareholders withunlimited sales conditions, andbetween top 10 publicshareholders with unlimitedsales conditions and top 10shareholders
| Description of the association or concerted action between top 10 public shareholders with unlimited sales conditions, and between top 10 public shareholders with unlimited sales conditions and top 10 shareholders | The actual controller of the Company’s controlling shareholder Hangzhou ROBAM Industrial Group Co., Ltd. and the shareholder Hangzhou Jinchuang Investment Co., Ltd. is Mr. Ren Jianhua, and the natural person shareholder Shen Guoying is the wife of Ren Jianhua. The above shareholders have the possibility of acting in unison. |
2022 Full Annual Report
| Securities margin trading business attended by top 10 ordinary shareholders (if any) (see note 4) | N/A |
Whether the Company’s top 10 common shareholders and op 10 common shareholders with unlimited sales conditions agreed on arepurchase transaction during the reporting period
□ Yes ?No
The Company’s top 10 common shareholders and op 10 common shareholders with unlimited sales conditions did not agree on arepurchase transaction during the reporting period
2. Controlling shareholders of the Company
Nature of controlling shareholder: natural person holdingType of controlling shareholder: legal person
| Controlling shareholder's name | Legal Representative / Head of Unit | Date of establishment | Organization code | Main business |
Hangzhou ROBAMIndustrial Group Co.,Ltd.
| Hangzhou ROBAM Industrial Group Co., Ltd. | Ren Jianhua | March 22, 1995 | 913301101438402503 | Industrial investment, import and export of goods |
Equity of other domesticand foreign listedcompanies controlledand participated bycontrolling shareholdersduring the reportingperiod
| Equity of other domestic and foreign listed companies controlled and participated by controlling shareholders during the reporting period | The controlling shareholder of Hangzhou Nbond Nonwoven Co., Ltd., and the participating shareholder of Zhejiang CFMOTO Power Co., Ltd, Hangzhou Fortune Gas Cryogenic Group Co., Ltd. |
Change of controlling shareholders during the reporting period
□ Applicable ?Not applicable
No change in controlling shareholders during the reporting period.
3. Actual controller of the Company and the person acting in concertNature of actual controller: domestic natural personType of actual controller: natural person
| Actual controller’s name | Relationship with actual controller | Nationality | Whether to obtain the right of residence in other countries or regions |
Ren Jianhua
| Ren Jianhua | Self | Chinese | No |
Main occupations and positions
| Main occupations and positions | Please refer to the resume of the Company's directors for details |
Domestic and foreign listedcompanies that have held sharesin the past 10 years
| Domestic and foreign listed companies that have held shares in the past 10 years | Actual controller of Hangzhou ROBAM Appliances Co., Ltd. and Hangzhou Nbond Nonwoven Co., Ltd. |
Changes in actual controller during the reporting period
□ Applicable ?Not applicable
No change in actual controller during the reporting period.Block diagram of property right and control relationship between the Company and actual controller
2022 Full Annual Report
The actual controller controls the Company through trust or other asset management methods
□ Applicable ?Not applicable
4. The cumulative number of pledged shares of the Company's controlling shareholder or the largest
shareholder and its persons acting in concert accounts for 80% of the Company's shares held bythem
□ Applicable ?Not applicable
5. Other legal person shareholders holding more than 10%
□ Applicable ?Not applicable
6. Restricted share reduction of controlling shareholders, actual controller, reorganizers and othercommitment subjects
□ Applicable ?Not applicable
IV. Specific implementation of share repurchase in the reporting periodImplementation progress of share repurchase
□ Applicable ?Not applicable
Implementation progress of reducing repurchased shares by centralized competitive bidding trading
□ Applicable ?Not applicable
Ren Jianhua
JinchuangInvestmentHangzhou ROBAM Appliances Co., Ltd.
Hangzhou ROBAM Appliances Co., Ltd.ROBAM Group
2022 Full Annual Report
Section 8 Preferred Shares
□ Applicable ?Not applicable
No preferred shares of the Company during the reporting period.
2022 Full Annual Report
Section 9 Corporate Bonds
□ Applicable ?Not applicable
2022 Full Annual Report
Section 10 Financial ReportI. Audit report
| Type of audit opinion | Standard unqualified opinion |
| Date of signing of audit report | April 25, 2023 |
| Name of audit institution | Shinewing Certified Public Accountants (special general partnership) |
| Name of Certified Public Accountant | Lei Yongxin, Wang Qing |
Audit report
XYZH/2023BJAA10B0385
To all shareholders of Hangzhou ROBAM Appliances Co., Ltd.:
I. Audit opinionWe have audited the accompanying financial statements of Hangzhou ROBAM Appliances Co., Ltd. (hereinafter referred to asROBAM), including the consolidated balance sheet and the balance sheet of parent company as of December 31, 2022,consolidated income statement and income statement of parent company, consolidated cash flow statement and cash flowstatement of parent company, consolidated statement of change in equity and statement of change in equity of parent company forthe year 2022 and notes to relevant financial statements.In our opinion, the attached financial statements of your company have been prepared in accordance with the provisions of theAccounting Standards for Business Enterprises and give a true and fair view of the consolidated financial position and financialposition of parent company of ROBAM as of December 31, 2022 and of the financial performance and cash flows for the year2022 in all significant terms.II. Basis for audit opinionWe conducted our audit in accordance with the Standards on Auditing for Certified Public Accountants. The “responsibility ofcertified public accountants for audit of financial statements” in the audit report further expounds our responsibilities under suchstandards. We were independent of ROBAM and fulfill other responsibilities in terms of professional ethics according to the codeof professional ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion.III. Key audit itemsThe key audit items are those that we consider most important to audit the financial statements of the current period in ourprofessional judgment. The response to these items is based on the audit of the financial statements as a whole and the formationof an audit opinion. We do not comment on these items separately. We have identified the following items as key audit items to becommunicated in the audit report.
2022 Full Annual Report
1. Revenue recognition - agency model and engineering channels
Key audit items
| Key audit items | Response in audit |
Refer to Notes to financial statements IV. 33 andVI. 37 Operating income and operating cost.In 2022, the operating income of ROBAM wasRMB 1,027,150.06, representing an increase ofRMB 123,794,500 compared with that in 2021,including the agency mode income of RMB2,446,494,400 and the engineering channel incomeof RMB 2,058,478,200, totally accounting for
43.86% of revenue of the period.
Since the agency mode income and engineeringchannel income account for large proportion in theoperating income and are one of the keyperformance indicators of ROBAM, there may bean inherent risk that the management may recognizethe income in the wrong way to reach the specificgoal or expected goal. Therefore, we regard incomerecognition as a key audit issue.
| Refer to Notes to financial statements IV. 33 and VI. 37 Operating income and operating cost. In 2022, the operating income of ROBAM was RMB 1,027,150.06, representing an increase of RMB 123,794,500 compared with that in 2021, including the agency mode income of RMB 2,446,494,400 and the engineering channel income of RMB 2,058,478,200, totally accounting for 43.86% of revenue of the period. Since the agency mode income and engineering channel income account for large proportion in the operating income and are one of the key performance indicators of ROBAM, there may be an inherent risk that the management may recognize the income in the wrong way to reach the specific goal or expected goal. Therefore, we regard income recognition as a key audit issue. | For the income recognition of the agency mode and engineering channels, the audit procedures we implemented mainly include: 1. Understand key internal controls related to income recognition, evaluate and test the effectiveness of internal control design and implementation; 2. Check the information of the shareholders and main personnel of the agency company and evaluate whether there is any correlation; 3. Evaluate whether the income recognition method and recognition time point comply with the relevant provisions of the Accounting Standards for Business Enterprises in combination with the contract terms and business nature and the terms related to the time point of commodity control transfer; 4. Carry out substantive analysis procedures on operating income and gross margin ratio by channels, customers, products, etc., identify whether there are significant or abnormal fluctuations, and analyze the causes of fluctuations; 5. Check the original documents of the income recognition for major customers according to the income recognition policy and settlement process and evaluate the authenticity and accuracy of operating income recognition; 6. Confirm current sales to main customers by sampling combined with the confirmation of accounts receivable; 7. Carry out the cut-off test procedure of income, check the supporting documents such as outbound delivery order and acceptance certificate for the operating income recognized before and after the balance sheet date, and evaluate whether the operating income is recognized within an appropriate period; 8. Check whether the information relating to operating income has been properly presented and disclosed in the financial statements. |
2022 Full Annual Report
2. Impairment of notes receivable and accounts receivable
Key audit items
| Key audit items | Response in audit |
Refer to Notes to financial statements IV. 11.12, VI.3 Notes receivable and VI. 4 Accounts receivable.As of December 31, 2022, the balance of notesreceivable of ROBAM was RMB 902,437,900 andthe provision for bad debt was RMB 20,664,600;the balance of accounts receivable was RMB2,792,948,900, and the provision for bad debt wasRMB 1,103,342,100.Due to the large amount of notes receivable andaccounts receivable at the end of the period, themanagement needs to use material accountingestimate and judgment when determining therecoverable amount, so we regard the impairment ofnotes receivable and accounts receivable as the keyaudit items.
| Refer to Notes to financial statements IV. 11.12, VI. 3 Notes receivable and VI. 4 Accounts receivable. As of December 31, 2022, the balance of notes receivable of ROBAM was RMB 902,437,900 and the provision for bad debt was RMB 20,664,600; the balance of accounts receivable was RMB 2,792,948,900, and the provision for bad debt was RMB 1,103,342,100. Due to the large amount of notes receivable and accounts receivable at the end of the period, the management needs to use material accounting estimate and judgment when determining the recoverable amount, so we regard the impairment of notes receivable and accounts receivable as the key audit items. | For the impairment of notes receivable and accounts receivable, the audit procedures we implemented mainly include: 1. Understand key internal controls for notes receivable and accounts receivable of ROBAM, evaluate and test the effectiveness of internal control design and implementation; 2. Check the contracts of main customers according to the income status, understand the settlement terms, pay attention to the customers who have not made payment after the settlement credit period or acceptance period, and analyze the reasons. Judge the solvency of customers by understanding their operating and financial conditions; 3. Analyze the implementation of the new financial instrument standards for receivables, including the rationality of determination and estimation of the expected credit loss model for the receivables of ROBAM, calculate the expected credit loss amount on the balance sheet date, and analyze whether the credit loss is fully accounted for in the receivables period; 4. Verify the rationality of expected credit loss of receivables combined with the receivables confirmation procedure and post-dated collection by analyzing the aging of accounts receivable; 5. Carry out supervision procedures, check the balance of notes receivable at the end of the period, and check the current endorsement and discount status to check whether they conform to the derecognition conditions; 6. Check the post-dated acceptance status of notes receivable from main customers, record the amount of notes receivable collected after the post-dated period, and check the supporting documents, such as bank receipt and other vouchers, for those with large amounts of notes receivable; 7. Check whether the information relating to notes receivable and accounts receivable has been properly presented and disclosed in the financial statements. |
IV. Other informationThe management of ROBAM (hereinafter referred to as the management) is responsible for other information, including theinformation covered in ROBAM annual report for 2022, but excluding the financial statements and our audit report.Our audit opinion on the financial statements does not cover other information and we does not express any form of verificationconclusions on other information.Combined with our audit of the financial statements, it’s our responsibility to read other information. In this process, we shallconsider whether material inconsistency or material misstatement of other information with the financial statements or thesituation understood by us in the audit process.Based on the work that has been executed by us, we should report the fact of material misstatement confirmed in other information.We have nothing to report in this regard.V. Responsibility of management and government for the financial statementsThe management is responsible for preparing the financial statements in accordance with the provisions of the AccountingStandards for Business Enterprises and giving a true and fair view; designing, implementing and maintaining necessary internalcontrol, so that the financial statements are free from material misstatement, whether due to fraud or error.When preparing the financial statements, the management is responsible for evaluating the going-concern ability of ROBAM,disclosing the matters related to the going-concern (if applicable) and using the going-concern assumption, unless the managementplans to liquidate ROBAM or stop operation or no other realistic options.The government is responsible for supervising the financial reporting process of ROBAM.VI. Responsibility of certified public accountants for audit of financial statementsOur goal is to obtain reasonable guarantee on inexistence of the material misstatement of the financial statements whether due tofraud or error and to issue an audit report including audit opinion. Reasonable guarantee is high level guarantee, but it cannotguarantee that a material misstatement of the audit executed according to the auditing standards will always be found.Misstatement may be caused by fraud or error. If the reasonable expected misstatements may affect the economic decision madeby the financial statement user according to the financial statements, whether individually or collectively, the misstatement isgenerally believed material.We made professional judgment and maintained professional skepticism in the audit process according to the auditing standards.
2022 Full Annual Report
We also performed the following:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design andimplement audit procedures to address these risks, and obtain sufficient and appropriate audit evidence as the basis for auditopinion. Since the fraud may involve collusion, forge, intentional omission, false statement or above internal control, the risk ofmaterial misstatement caused by fraud is higher than that caused by error.
(2) Understand internal control related to the audit in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the internal control.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and relevant
disclosure.
(4) Draw a conclusion about the appropriateness of the going-concern assumption used by the management. Meanwhile, draw aconclusion about the major uncertainty of the matters or circumstances possibly resulting in major concerns about the going-concern ability of ROBAM according to the audit evidence obtained. If we draw a conclusion that major uncertainty exists, theauditing standards require us to request the statement user to notice relevant disclosure in the financial statements in the auditreport; in case of insufficient disclosure, we should issue a modified audit report. Our conclusion is made on the basis of theinformation available as of the audit report date. However, the future matters or circumstances may result in going concern failureof ROBAM.
(5) Evaluate the overall presentation, structure and content of the financial statements and evaluate whether the financialstatements give a true and fair view of relevant transactions and matters.
(6) Obtain adequate and appropriate audit evidence for the financial information of ROBAM entity or business activities toexpress an opinion on the financial statements. We are responsible for guiding, supervising and implementing the group audit andtake full responsibility for the audit opinions.We communicate with the governance on the planned audit scope, time arrangement and major audit findings, including theinternal control defects identified by us in the audit and worthing attention.We also provide the governance with a statement of compliance with the ethical requirements relating to our independence andcommunicate with the governance with respect to all relations and other matters that may reasonably be considered to affect ourindependence and the relevant precautions (if applicable).From the items communicated with the governance, we determine which items are most important to the audit of current financialstatements and thus constitute the key audit items. We describe these items in our audit report, unless the disclosure of thesematters is prohibited by law or regulation, or, in rare circumstances, we determine that we should not communicate the items inour audit report if it is reasonably expected that the negative consequences of communicating an item outweigh the benefits in thepublic interest.
II. Financial statementsUnit of statements in financial notes: CNY
1. Consolidated Balance Sheet
Unit: Hangzhou ROBAM Appliances Co., Ltd.
December 31, 2022
Unit: yuan
| Item | December 31, 2022 | January 01, 2022 |
Current assets:
| Current assets: |
Monetary capital
| Monetary capital | 5,292,762,670.94 | 3,802,201,346.55 |
Deposit reservation for balance
| Deposit reservation for balance |
Lending funds
| Lending funds |
Trading financial assets
| Trading financial assets | 2,511,844,508.00 | 2,872,312,500.00 |
Derivative financial assets
| Derivative financial assets |
Notes receivable
| Notes receivable | 881,773,341.71 | 1,330,193,894.82 |
Accounts receivable
| Accounts receivable | 1,689,606,828.94 | 1,597,692,860.90 |
Receivables financing
| Receivables financing |
Advances to suppliers
| Advances to suppliers | 177,500,353.37 | 131,162,030.95 |
2022 Full Annual Report
| Premiums receivables |
Reinsurance accounts receivable
| Reinsurance accounts receivable |
Provision of cession receivable
| Provision of cession receivable |
Other receivables
| Other receivables | 80,429,057.84 | 73,487,381.46 |
Including: Interest receivable
| Including: Interest receivable |
Dividends receivable
| Dividends receivable |
Redemptory monetary capital for sale
| Redemptory monetary capital for sale |
Inventory
| Inventory | 1,610,110,798.10 | 1,772,231,632.25 |
Contract assets
| Contract assets |
Assets held for sales
| Assets held for sales |
Non-current assets due within a year
| Non-current assets due within a year |
Other current assets
| Other current assets | 334,348.76 | 4,110,429.16 |
Total current assets
| Total current assets | 12,244,361,907.66 | 11,583,392,076.09 |
Non-current assets:
| Non-current assets: |
Loans and advances
| Loans and advances |
Debt investment
| Debt investment |
Other debt investments
| Other debt investments |
Long-term receivables
| Long-term receivables |
Long-term equity investment
| Long-term equity investment | 8,718,505.62 | 5,405,129.91 |
Other equity instrument investments
| Other equity instrument investments | 2,116,023.22 | 2,116,023.22 |
Other non-current financial assets
| Other non-current financial assets |
Investment properties
| Investment properties | 55,887,198.54 | 11,085,896.07 |
Fixed assets
| Fixed assets | 1,622,235,227.74 | 1,179,306,020.01 |
Construction in progress
| Construction in progress | 406,258,146.69 | 454,643,364.82 |
Productive biological assets
| Productive biological assets |
Oil and gas assets
| Oil and gas assets |
Right-of-use assets
| Right-of-use assets | 22,220,144.13 | 29,902,954.22 |
Intangible assets
| Intangible assets | 221,356,558.38 | 229,391,803.26 |
Development expenditure
| Development expenditure |
Goodwill
| Goodwill | 60,573,832.56 | 80,589,565.84 |
Long-term unamortized expenses
| Long-term unamortized expenses | 5,852,899.90 | 5,385,436.20 |
Deferred income tax assets
| Deferred income tax assets | 340,811,345.96 | 286,348,037.04 |
Other non-current assets
| Other non-current assets | 49,433,497.13 | 38,468,874.44 |
Total non-current assets
| Total non-current assets | 2,795,463,379.87 | 2,322,643,105.03 |
Total assets
| Total assets | 15,039,825,287.53 | 13,906,035,181.12 |
Current liabilities:
| Current liabilities: |
Short-term borrowing
| Short-term borrowing | 51,723,429.99 | 29,616,655.41 |
Borrowings from central bank
| Borrowings from central bank |
Borrowing funds
| Borrowing funds |
Trading financial liabilities
| Trading financial liabilities |
Derivative financial liabilities
| Derivative financial liabilities |
Notes payable
| Notes payable | 872,550,306.86 | 962,665,463.99 |
Accounts payable
| Accounts payable | 2,418,755,167.31 | 2,181,900,261.00 |
Advance from customers
| Advance from customers |
Contract liabilities
| Contract liabilities | 959,915,567.03 | 1,026,782,402.35 |
Financial assets sold for repurchase
| Financial assets sold for repurchase |
Deposits from customers and interbank
| Deposits from customers and interbank |
Acting trading securities
| Acting trading securities |
Acting underwriting securities
| Acting underwriting securities |
Payroll payable
| Payroll payable | 153,942,329.88 | 165,177,425.08 |
Tax payable
| Tax payable | 152,351,620.58 | 212,202,393.54 |
2022 Full Annual Report
| Other payables | 281,878,208.25 | 267,781,215.06 |
Including: Interest payable
| Including: Interest payable |
Dividends payable
| Dividends payable |
Fees and commissions payable
| Fees and commissions payable |
Dividend payable for reinsurance
| Dividend payable for reinsurance |
Liabilities held for sales
| Liabilities held for sales |
Non-current liabilities due within a year
| Non-current liabilities due within a year | 5,720,175.21 | 5,387,591.43 |
Other current liabilities
| Other current liabilities | 120,126,501.73 | 124,284,081.56 |
Total current liabilities
| Total current liabilities | 5,016,963,306.84 | 4,975,797,489.42 |
Non-current liabilities:
| Non-current liabilities: |
Reserve fund for insurance contracts
| Reserve fund for insurance contracts |
Long-term borrowing
| Long-term borrowing |
Bonds payable
| Bonds payable |
Including: preferred stock
| Including: preferred stock |
Perpetual bond
| Perpetual bond |
Lease liabilities
| Lease liabilities | 18,588,966.67 | 26,177,034.29 |
Long-term payable
| Long-term payable |
Long-term payroll payable
| Long-term payroll payable |
Estimated liabilities
| Estimated liabilities |
Deferred income
| Deferred income | 123,912,110.43 | 131,747,378.42 |
Deferred income tax liabilities
| Deferred income tax liabilities | 22,107,934.58 | 6,254,762.76 |
Other non-current liabilities
| Other non-current liabilities |
Total non-current liabilities
| Total non-current liabilities | 164,609,011.68 | 164,179,175.47 |
Total liabilities
| Total liabilities | 5,181,572,318.52 | 5,139,976,664.89 |
Owner's equity:
| Owner's equity: |
Capital stock
| Capital stock | 949,024,050.00 | 949,024,050.00 |
Other equity instruments
| Other equity instruments |
Including: preferred stock
| Including: preferred stock |
Perpetual bond
| Perpetual bond |
Capital reserve
| Capital reserve | 409,997,665.58 | 404,918,098.15 |
Minus: treasury stock
| Minus: treasury stock | 199,995,742.59 | 199,995,742.59 |
Other comprehensive income
| Other comprehensive income | -100,157,634.16 | -100,157,634.16 |
Special reserve
| Special reserve |
Surplus reserves
| Surplus reserves | 474,516,412.50 | 474,516,412.50 |
General risk preparation
| General risk preparation |
Undistributed profit
| Undistributed profit | 8,199,079,015.58 | 7,098,721,555.37 |
Total owners' equities attributable to theowners of parent company
| Total owners' equities attributable to the owners of parent company | 9,732,463,766.91 | 8,627,026,739.27 |
Minority equity
| Minority equity | 125,789,202.10 | 139,031,776.96 |
Total owners' equities
| Total owners' equities | 9,858,252,969.01 | 8,766,058,516.23 |
Total liabilities and owners' equities
| Total liabilities and owners' equities | 15,039,825,287.53 | 13,906,035,181.12 |
Legal representative: Ren Jianhua Head of accounting work: Zhang Guofu Head of accounting body:
Zhang Guofu
2. Balance sheet of parent company
Unit: yuan
| Item | December 31, 2022 | January 01, 2022 |
Current assets:
| Current assets: |
Monetary capital
| Monetary capital | 5,054,810,287.04 | 3,554,239,202.02 |
Trading financial assets
| Trading financial assets | 2,500,000,000.00 | 2,800,000,000.00 |
2022 Full Annual Report
| Derivative financial assets |
Notes receivable
| Notes receivable | 879,223,549.33 | 1,327,893,894.82 |
Accounts receivable
| Accounts receivable | 1,620,543,528.97 | 1,496,691,827.59 |
Receivables financing
| Receivables financing |
Advances to suppliers
| Advances to suppliers | 167,724,048.79 | 108,926,615.26 |
Other receivables
| Other receivables | 83,900,676.77 | 66,149,239.78 |
Including: Interest receivable
| Including: Interest receivable |
Dividends receivable
| Dividends receivable | 10,200,000.00 |
Inventory
| Inventory | 1,499,780,747.70 | 1,674,764,364.28 |
Contract assets
| Contract assets |
Assets held for sales
| Assets held for sales |
Non-current assets due within a year
| Non-current assets due within a year |
Other current assets
| Other current assets |
Total current assets
| Total current assets | 11,805,982,838.60 | 11,028,665,143.75 |
Non-current assets:
| Non-current assets: |
Debt investment
| Debt investment |
Other debt investments
| Other debt investments |
Long-term receivables
| Long-term receivables |
Long-term equity investment
| Long-term equity investment | 251,769,849.44 | 242,037,500.08 |
Other equity instrument investments
| Other equity instrument investments | 2,116,023.22 | 2,116,023.22 |
Other non-current financial assets
| Other non-current financial assets |
Investment properties
| Investment properties | 4,426,211.90 | 11,361,192.77 |
Fixed assets
| Fixed assets | 1,396,227,874.68 | 1,114,958,987.32 |
Construction in progress
| Construction in progress | 406,258,146.69 | 280,105,490.57 |
Productive biological assets
| Productive biological assets |
Oil and gas assets
| Oil and gas assets |
Right-of-use assets
| Right-of-use assets |
Intangible assets
| Intangible assets | 149,864,689.61 | 152,123,403.04 |
Development expenditure
| Development expenditure |
Goodwill
| Goodwill |
Long-term unamortized expenses
| Long-term unamortized expenses | 1,486,622.90 | 1,653,433.47 |
Deferred income tax assets
| Deferred income tax assets | 323,776,879.25 | 285,017,337.53 |
Other non-current assets
| Other non-current assets | 49,433,497.13 | 36,602,077.16 |
Total non-current assets
| Total non-current assets | 2,585,359,794.82 | 2,125,975,445.16 |
Total assets
| Total assets | 14,391,342,633.42 | 13,154,640,588.91 |
Current liabilities:
| Current liabilities: |
Short-term borrowing
| Short-term borrowing | 573,429.99 | 29,616,655.41 |
Trading financial liabilities
| Trading financial liabilities |
Derivative financial liabilities
| Derivative financial liabilities |
Notes payable
| Notes payable | 810,820,603.91 | 869,702,988.97 |
Accounts payable
| Accounts payable | 2,282,866,624.07 | 2,051,194,342.69 |
Advance from customers
| Advance from customers |
Contract liabilities
| Contract liabilities | 890,640,445.28 | 923,802,307.69 |
Payroll payable
| Payroll payable | 121,417,848.03 | 129,893,906.19 |
Tax payable
| Tax payable | 130,548,651.54 | 196,058,797.24 |
Other payables
| Other payables | 254,460,632.28 | 240,983,242.45 |
Including: Interest payable
| Including: Interest payable |
Dividends payable
| Dividends payable |
Liabilities held for sales
| Liabilities held for sales |
Non-current liabilities due within a year
| Non-current liabilities due within a year |
Other current liabilities
| Other current liabilities | 109,801,716.95 | 110,927,917.94 |
2022 Full Annual Report
| Total current liabilities | 4,601,129,952.05 | 4,552,180,158.58 |
Non-current liabilities:
| Non-current liabilities: |
Long-term borrowing
| Long-term borrowing |
Bonds payable
| Bonds payable |
Including: preferred stock
| Including: preferred stock |
Perpetual bond
| Perpetual bond |
Lease liabilities
| Lease liabilities |
Long-term payable
| Long-term payable |
Long-term payroll payable
| Long-term payroll payable |
Estimated liabilities
| Estimated liabilities |
Deferred income
| Deferred income | 86,923,728.32 | 102,890,393.42 |
Deferred income tax liabilities
| Deferred income tax liabilities | 13,804,141.19 |
Other non-current liabilities
| Other non-current liabilities |
Total non-current liabilities
| Total non-current liabilities | 100,727,869.51 | 102,890,393.42 |
Total liabilities
| Total liabilities | 4,701,857,821.56 | 4,655,070,552.00 |
Owner's equity:
| Owner's equity: |
Capital stock
| Capital stock | 949,024,050.00 | 949,024,050.00 |
Other equity instruments
| Other equity instruments |
Including: preferred stock
| Including: preferred stock |
Perpetual bond
| Perpetual bond |
Capital reserve
| Capital reserve | 409,608,575.62 | 404,873,115.14 |
Minus: treasury stock
| Minus: treasury stock | 199,995,742.59 | 199,995,742.59 |
Other comprehensive income
| Other comprehensive income | -100,157,634.16 | -100,157,634.16 |
Special reserve
| Special reserve |
Surplus reserves
| Surplus reserves | 474,516,412.50 | 474,516,412.50 |
Undistributed profit
| Undistributed profit | 8,156,489,150.49 | 6,971,309,836.02 |
Total owners' equities
| Total owners' equities | 9,689,484,811.86 | 8,499,570,036.91 |
Total liabilities and owners' equities
| Total liabilities and owners' equities | 14,391,342,633.42 | 13,154,640,588.91 |
3. Consolidated Statement of Income
Unit: yuan
| Item | Year 2022 | Year 2021 |
I. Total operating income
| I. Total operating income | 10,271,500,571.04 | 10,147,706,035.35 |
Including: Operating income
| Including: Operating income | 10,271,500,571.04 | 10,147,706,035.35 |
Interest revenue
| Interest revenue |
Premium earned
| Premium earned |
Fee and commission income
| Fee and commission income |
II. Total operating costs
| II. Total operating costs | 8,494,920,336.60 | 7,960,178,225.56 |
Including: Operating costs
| Including: Operating costs | 5,137,368,758.15 | 4,835,053,404.37 |
Interest expenditure
| Interest expenditure |
Fee and commission expense
| Fee and commission expense |
Surrender value
| Surrender value |
Net payments for insurance claims
| Net payments for insurance claims |
Net reserve fund extracted for insurancecontracts
| Net reserve fund extracted for insurance contracts |
Bond insurance expense
| Bond insurance expense |
Reinsurance costs
| Reinsurance costs |
Taxes and surcharges
| Taxes and surcharges | 78,564,584.05 | 80,591,250.17 |
Selling expenses
| Selling expenses | 2,613,626,073.89 | 2,454,418,039.92 |
2022 Full Annual Report
| Management costs | 430,968,403.74 | 363,762,372.63 |
Research and development expenses
| Research and development expenses | 391,614,805.38 | 366,026,666.34 |
Financial expenses
| Financial expenses | -157,222,288.61 | -139,673,507.87 |
Including: interest expenditure
| Including: interest expenditure | 10,249,057.76 | 9,638,311.28 |
Interest revenue
| Interest revenue | 162,232,029.99 | 152,136,833.79 |
Plus: other incomes
| Plus: other incomes | 148,475,570.29 | 77,424,555.44 |
Income from investment (loss expressed with“-”)
| Income from investment (loss expressed with “-”) | 98,961,069.15 | 90,502,532.06 |
Including: Income from investment ofjoint venture and cooperative enterprise
| Including: Income from investment of joint venture and cooperative enterprise | -826,624.29 | -47,639.68 |
Income from derecognition offinancial assets measured at amortized cost
| Income from derecognition of financial assets measured at amortized cost |
Exchange gain (loss expressed with “-”)
| Exchange gain (loss expressed with “-”) |
Net exposure hedging gain (loss expressedwith “-”)
| Net exposure hedging gain (loss expressed with “-”) |
Income from fair value changes (lossexpressed with “-”)
| Income from fair value changes (loss expressed with “-”) |
Credit impairment losses (loss expressed with“-”)
| Credit impairment losses (loss expressed with “-”) | -224,114,601.65 | -765,499,437.07 |
Assets impairment losses (loss expressed with“-”)
| Assets impairment losses (loss expressed with “-”) | -24,998,305.92 | -52,632,725.80 |
Income from disposal of assets (lossexpressed with “-”)
| Income from disposal of assets (loss expressed with “-”) | 143,437.75 | -2,122,173.87 |
III. Operating profits (loss expressed with “-”)
| III. Operating profits (loss expressed with “-”) | 1,775,047,404.06 | 1,535,200,560.55 |
Plus: Non-operating income
| Plus: Non-operating income | 3,268,479.05 | 1,779,825.86 |
Minus: non-operating expenditure
| Minus: non-operating expenditure | 5,343,278.82 | 4,211,465.75 |
IV. Total profits (total loss expressed with “-”)
| IV. Total profits (total loss expressed with “-”) | 1,772,972,604.29 | 1,532,768,920.66 |
Minus: Income tax expenses
| Minus: Income tax expenses | 214,666,153.99 | 183,977,497.96 |
V. Net profits (net loss expressed with “-”)
| V. Net profits (net loss expressed with “-”) | 1,558,306,450.30 | 1,348,791,422.70 |
(I) Classified by business continuity
| (I) Classified by business continuity |
1. Net profits from going concern (net loss
expressed with “-”)
| 1. Net profits from going concern (net loss expressed with “-”) | 1,558,306,450.30 | 1,348,791,422.70 |
2. Net profits from discontinuing operation
(net loss expressed with “-”)
| 2. Net profits from discontinuing operation (net loss expressed with “-”) |
(II) Classified by ownership
| (II) Classified by ownership |
1. Net profits attributable to shareholders of
parent company
| 1. Net profits attributable to shareholders of parent company | 1,572,404,918.21 | 1,331,712,059.03 |
2. * Minority interest income
| 2. * Minority interest income | -14,098,467.91 | 17,079,363.67 |
VI. Net amount of other comprehensive income aftertax
| VI. Net amount of other comprehensive income after tax | -85,000,000.00 |
Net amount of other comprehensive income aftertax attributed to parent company owners
| Net amount of other comprehensive income after tax attributed to parent company owners | -85,000,000.00 |
(I) Other comprehensive income that can't bereclassified into profit and loss
| (I) Other comprehensive income that can't be reclassified into profit and loss | -85,000,000.00 |
1. Remeasure the variation of net
indebtedness or net asset of definedbenefit plan
| 1. Remeasure the variation of net indebtedness or net asset of defined benefit plan |
2. Other comprehensive income that can't
be reclassified into profit and loss in the
| 2. Other comprehensive income that can't be reclassified into profit and loss in the |
2022 Full Annual Report
invested enterprise under equity method
3. Fair value change of other equity
instrument investments
| 3. Fair value change of other equity instrument investments | -85,000,000.00 |
4. Fair value change of enterprise credit
risks
| 4. Fair value change of enterprise credit risks |
5. Other
| 5. Other |
(II) Other comprehensive income that will bereclassified into profit and loss
| (II) Other comprehensive income that will be reclassified into profit and loss |
1. Other comprehensive income that will be
reclassified into profit and loss in theinvested enterprise under equity method
| 1. Other comprehensive income that will be reclassified into profit and loss in the invested enterprise under equity method |
2. Fair value change of other debt
investments
| 2. Fair value change of other debt investments |
3. Amount of financial assets reclassified
into other comprehensive income
| 3. Amount of financial assets reclassified into other comprehensive income |
4. Provision for credit impairment of other
debt investments
| 4. Provision for credit impairment of other debt investments |
5. Cash flow hedging reserve
| 5. Cash flow hedging reserve |
6. Balance arising from the translation of
foreign currency financial statements
| 6. Balance arising from the translation of foreign currency financial statements |
7. Other
| 7. Other |
Net amount of other comprehensive income aftertax attributed to minority shareholders
| Net amount of other comprehensive income after tax attributed to minority shareholders |
VII. Total comprehensive income
| VII. Total comprehensive income | 1,558,306,450.30 | 1,263,791,422.70 |
Total comprehensive income attributed to parentcompany owners
| Total comprehensive income attributed to parent company owners | 1,572,404,918.21 | 1,246,712,059.03 |
Total comprehensive income belonging tominority shareholders
| Total comprehensive income belonging to minority shareholders | -14,098,467.91 | 17,079,363.67 |
VIII. Earnings per share
| VIII. Earnings per share |
(I) Basic earnings per share
| (I) Basic earnings per share | 1.67 | 1.41 |
(II) Diluted earnings per share
| (II) Diluted earnings per share | 1.67 | 1.41 |
In case of business combination involving enterprises under common control in this period, the net profits achieved by thecombined enterprise before combination were RMB and achieved by the combined enterprise in previous period were RMB .Legal representative: Ren Jianhua Head of accounting work: Zhang Guofu Head of accounting body: Zhang Guofu
4. Income statement of parent company
Unit: yuan
| Item | Year 2022 | Year 2021 |
I. Operating income
| I. Operating income | 9,524,550,185.59 | 9,284,231,145.49 |
Minus: Operating costs
| Minus: Operating costs | 4,901,492,041.67 | 4,557,542,158.07 |
Taxes and surcharges
| Taxes and surcharges | 69,828,676.76 | 73,299,717.92 |
Selling expenses
| Selling expenses | 2,218,801,283.55 | 2,044,292,085.93 |
Management costs
| Management costs | 304,689,831.15 | 261,914,391.23 |
Research and developmentexpenses
| Research and development expenses | 376,891,023.54 | 349,772,824.04 |
Financial expenses
| Financial expenses | -156,113,652.92 | -137,078,786.08 |
Including: interest expenditure
| Including: interest expenditure | 8,322,009.99 | 7,860,839.16 |
Interest revenue
| Interest revenue | 158,191,509.22 | 146,898,250.58 |
Plus: other incomes
| Plus: other incomes | 131,366,920.67 | 71,947,430.91 |
2022 Full Annual Report
| Income from investment (loss expressed with “-”) | 107,771,898.15 | 109,604,014.60 |
Including: Income frominvestment of joint venture and cooperativeenterprise
| Including: Income from investment of joint venture and cooperative enterprise | -514,676.57 | -47,639.68 |
Income fromderecognition of financial assets measuredat amortized cost (loss expressed with “-”)
| Income from derecognition of financial assets measured at amortized cost (loss expressed with “-”) |
Net exposure hedging gain (lossexpressed with “-”)
| Net exposure hedging gain (loss expressed with “-”) |
Income from fair value changes(loss expressed with “-”)
| Income from fair value changes (loss expressed with “-”) |
Credit impairment losses (lossexpressed with “-”)
| Credit impairment losses (loss expressed with “-”) | -165,304,249.28 | -765,307,835.18 |
Assets impairment losses (lossexpressed with “-”)
| Assets impairment losses (loss expressed with “-”) | -4,982,572.64 | -52,632,725.80 |
Income from disposal of assets(loss expressed with “-”)
| Income from disposal of assets (loss expressed with “-”) | -157,339.21 | -2,281,424.63 |
II. Operating profit (loss to be filled outwith the minus sign “-”)
| II. Operating profit (loss to be filled out with the minus sign “-”) | 1,877,655,639.53 | 1,495,818,214.28 |
Plus: Non-operating income
| Plus: Non-operating income | 3,023,087.48 | 1,323,613.73 |
Minus: non-operating expenditure
| Minus: non-operating expenditure | 4,201,871.53 | 2,551,970.49 |
III. Total profit (total loss to be filled outwith the minus sign “-”)
| III. Total profit (total loss to be filled out with the minus sign “-”) | 1,876,476,855.48 | 1,494,589,857.52 |
Minus: Income tax expenses
| Minus: Income tax expenses | 219,250,083.01 | 170,448,503.19 |
IV. Net profit (net loss to be filled out withthe minus sign “-”)
| IV. Net profit (net loss to be filled out with the minus sign “-”) | 1,657,226,772.47 | 1,324,141,354.33 |
(I) Net profits from going concern (netloss expressed with “-”)
| (I) Net profits from going concern (net loss expressed with “-”) | 1,657,226,772.47 | 1,324,141,354.33 |
(II) Net profits from discontinuingoperation (net loss expressed with “-”)
| (II) Net profits from discontinuing operation (net loss expressed with “-”) |
V. Net amount of other comprehensiveincome after tax
| V. Net amount of other comprehensive income after tax | -85,000,000.00 |
(I) Other comprehensive income thatcan't be reclassified into profit and loss
| (I) Other comprehensive income that can't be reclassified into profit and loss | -85,000,000.00 |
1. Remeasure the variation of net
indebtedness or net asset ofdefined benefit plan
| 1. Remeasure the variation of net indebtedness or net asset of defined benefit plan |
2. Other comprehensive income
that can't be reclassified intoprofit and loss in the investedenterprise under equity method
| 2. Other comprehensive income that can't be reclassified into profit and loss in the invested enterprise under equity method |
3. Fair value change of other
equity instrument investments
| 3. Fair value change of other equity instrument investments | -85,000,000.00 |
4. Fair value change of enterprise
credit risks
| 4. Fair value change of enterprise credit risks |
5. Other
| 5. Other |
(II) Other comprehensive income thatwill be reclassified into profit and loss
| (II) Other comprehensive income that will be reclassified into profit and loss |
1. Other comprehensive income
that will be reclassified intoprofit and loss in the investedenterprise under equity method
| 1. Other comprehensive income that will be reclassified into profit and loss in the invested enterprise under equity method |
2. Fair value change of other debt
investments
| 2. Fair value change of other debt investments |
3. Amount of financial assets
reclassified into othercomprehensive income
| 3. Amount of financial assets reclassified into other comprehensive income |
2022 Full Annual Report
| 4. Provision for credit impairment of other debt investments |
5. Cash flow hedging reserve
| 5. Cash flow hedging reserve |
6. Balance arising from the
translation of foreign currencyfinancial statements
| 6. Balance arising from the translation of foreign currency financial statements |
7. Other
| 7. Other |
VI. Total comprehensive income
| VI. Total comprehensive income | 1,657,226,772.47 | 1,239,141,354.33 |
VII. Earnings per share
| VII. Earnings per share |
(I) Basic earnings per share
| (I) Basic earnings per share |
(II) Diluted earnings per share
| (II) Diluted earnings per share |
5. Consolidated Statement of Cash Flow
Unit: yuan
| Item | Year 2022 | Year 2021 |
| I. Cash flow from financing activities: | ||
| Cash from selling commodities or offering labor | 11,217,554,991.80 | 10,288,453,339.62 |
| Net increase of customer deposit and deposit from other banks | ||
| Net increase of borrowings from central bank | ||
| Net increase of borrowing funds from other financial institutions | ||
| Cash from obtaining original insurance contract premium | ||
| Cash received from insurance premium of original insurance contract | ||
| Net increase of deposit and investment of insured | ||
| Cash from interest, handling charges and commissions | ||
| Net increase of borrowing funds | ||
| Net increase of repurchase of business funds | ||
| Net cash from acting trading securities | ||
| Refund of tax and levies | 52,622,361.53 | 10,979,888.36 |
| Other cash received related to operating activities | 302,574,783.30 | 271,671,026.74 |
| Subtotal cash inflows from operating activities | 11,572,752,136.63 | 10,571,104,254.72 |
| Cash paid for selling commodities or offering labor | 5,130,311,485.16 | 5,176,102,168.67 |
| Net increase of customer loans and advances | ||
| Net increase of amount due from central bank and interbank | ||
| Cash paid for original insurance contract claims payment | ||
| Net increase of lending funds | ||
| Cash paid for interest, handling charges and commissions | ||
| Cash paid for policy dividend | ||
| Cash paid to and for employees | 1,014,928,118.78 | 916,057,162.36 |
| Taxes and fees paid | 924,067,905.31 | 931,911,190.31 |
| Other cash paid related to operating activities | 2,558,658,323.36 | 2,181,656,514.05 |
| Subtotal cash outflows from operating activities | 9,627,965,832.61 | 9,205,727,035.39 |
| Net cash flow from operating activities | 1,944,786,304.02 | 1,365,377,219.33 |
2022 Full Annual Report
| II. Cash flow from investment activities: | ||
| Cash from investment withdrawal | 2,935,774,392.00 | 2,680,500,000.00 |
| Cash from investment income | 101,112,262.32 | 91,763,782.62 |
| Net cash from disposal of fixed assets, intangible assets and other long-term assets | 1,144,292.90 | 2,730,070.90 |
| Net cash received from the disposal of subsidiaries and other business entities | ||
| Other cash received related to investment activities | ||
| Subtotal cash inflows from investment activities | 3,038,030,947.22 | 2,774,993,853.52 |
| Cash paid for the purchase and construction of fixed assets, intangible assets and other long term assets | 502,585,886.40 | 432,870,305.12 |
| Cash paid for investment | 2,579,500,000.00 | 3,202,812,500.00 |
| Net cash received from reinsurance business | ||
| Net cash paid for obtaining subsidiaries and other business units | ||
| Other cash paid related to investment activities | ||
| Subtotal cash outflows from investment activities | 3,082,085,886.40 | 3,635,682,805.12 |
| Net cash flow from investment activities | -44,054,939.18 | -860,688,951.60 |
| III. Cash flow from financing activities: | ||
| Receipts from equity securities | 11,000,000.00 | 850,000.00 |
| Including: Cash received from subsidies’ absorption of minority shareholders’ investment | 11,000,000.00 | 850,000.00 |
| Cash received from borrowings | 54,650,000.00 | |
| Other cash received related to financing activities | 1,012,732.06 | 30,694,588.74 |
| Subtotal cash inflows from financing activities | 66,662,732.06 | 31,544,588.74 |
| Cash repayments of amounts borrowed | 3,500,000.00 | |
| Cash paid for distribution of dividends or profits and for interest expenses | 482,408,349.01 | 495,485,158.00 |
| Including: Dividends and profits paid by subsidiaries to minority shareholders | 9,800,000.00 | 22,050,000.00 |
| Other cash paid related to financing activities | 10,759,837.34 | 206,042,180.97 |
| Subtotal cash outflows from financing activities | 496,668,186.35 | 701,527,338.97 |
| Net cash flow from financing activities | -430,005,454.29 | -669,982,750.23 |
| IV. Impact of exchange rate movements on cash and cash equivalents | 5,699,610.84 | -813,210.71 |
| V. Net increase of cash and cash equivalents | 1,476,425,521.39 | -166,107,693.21 |
| Plus: Balance of cash and cash equivalents at the beginning of the period | 3,719,988,820.35 | 3,886,096,513.56 |
| VI. Balance of cash and cash equivalents at the beginning of the period | 5,196,414,341.74 | 3,719,988,820.35 |
6. Cash flow statement of parent company
Unit: yuan
| Item | Year 2022 | Year 2021 |
| I. Cash flow from financing activities: | ||
| Cash from selling commodities or offering labor | 10,511,492,286.98 | 9,400,393,477.64 |
| Refund of tax and levies | 45,959,892.74 | 10,979,888.36 |
2022 Full Annual Report
| Other cash received related to operating activities | 244,654,467.09 | 230,569,238.02 |
| Subtotal cash inflows from operating activities | 10,802,106,646.81 | 9,641,942,604.02 |
| Cash paid for selling commodities or offering labor | 4,928,332,766.89 | 4,977,299,230.52 |
| Cash paid to and for employees | 741,560,434.55 | 674,644,809.06 |
| Taxes and fees paid | 851,796,665.44 | 863,049,900.49 |
| Other cash paid related to operating activities | 2,277,803,150.69 | 1,854,214,173.41 |
| Subtotal cash outflows from operating activities | 8,799,493,017.57 | 8,369,208,113.48 |
| Net cash flow from operating activities | 2,002,613,629.24 | 1,272,734,490.54 |
| II. Cash flow from investment activities: | ||
| Cash from investment withdrawal | 2,800,000,000.00 | 2,260,000,000.00 |
| Cash from investment income | 99,306,676.81 | 110,584,544.21 |
| Net cash from disposal of fixed assets, intangible assets and other long-term assets | 620,992.90 | 2,295,850.90 |
| Net cash received from the disposal of subsidiaries and other business entities | ||
| Other cash received related to investment activities | ||
| Subtotal cash inflows from investment activities | 2,899,927,669.71 | 2,372,880,395.11 |
| Cash paid for the purchase and construction of fixed assets, intangible assets and other long term assets | 448,805,021.56 | 312,910,594.46 |
| Cash paid for investment | 2,510,000,000.00 | 2,812,000,000.00 |
| Net cash paid for obtaining subsidiaries and other business units | ||
| Other cash paid related to investment activities | ||
| Subtotal cash outflows from investment activities | 2,958,805,021.56 | 3,124,910,594.46 |
| Net cash flow from investment activities | -58,877,351.85 | -752,030,199.35 |
| III. Cash flow from financing activities: | ||
| Receipts from equity securities | ||
| Cash received from borrowings | ||
| Other cash received related to financing activities | 1,012,732.06 | 30,694,588.74 |
| Subtotal cash inflows from financing activities | 1,012,732.06 | 30,694,588.74 |
| Cash repayments of amounts borrowed | ||
| Cash paid for distribution of dividends or profits and for interest expenses | 472,047,458.00 | 473,435,158.00 |
| Other cash paid related to financing activities | 4,030,091.57 | 199,995,742.59 |
| Subtotal cash outflows from financing activities | 476,077,549.57 | 673,430,900.59 |
| Net cash flow from financing activities | -475,064,817.51 | -642,736,311.85 |
| IV. Impact of exchange rate movements on cash and cash equivalents | 5,699,610.84 | -812,928.86 |
| V. Net increase of cash and cash equivalents | 1,474,371,070.72 | -122,844,949.52 |
| Plus: Balance of cash and cash equivalents at the beginning of the period | 3,504,333,910.43 | 3,627,178,859.95 |
| VI. Balance of cash and cash equivalents at the beginning of the period | 4,978,704,981.15 | 3,504,333,910.43 |
2022 Full Annual Report
7. Consolidated statement of change in equity
Current amount
Unit: yuan
| Item | Year 2022 | ||||||||||||||
| Owners' equities attributable to the owners of parent company | Minority equity | Total owners' equities | |||||||||||||
| Capital stock | Other equity instruments | Capital reserve | Minus: Treasury stock | Other comprehensive income | Special reserve | Surplus reserves | General risk preparation | Undistributed profit | Other | Subtotal | |||||
| Preferred stock | Perpetual bond | Other | |||||||||||||
I. Ending balance in previous year
| I. Ending balance in previous year | 949,024,050.00 | 404,918,098.15 | 199,995,742.59 | -100,157,634.16 | 474,516,412.50 | 7,098,721,555.37 | 8,627,026,739.27 | 139,031,776.96 | 8,766,058,516.23 |
Plus: Changes in accounting policies
| Plus: Changes in accounting policies |
Prior period error correction
| Prior period error correction |
Business combination undercommon control
| Business combination under common control |
Other
| Other |
II. Beginning balance in current year
| II. Beginning balance in current year | 949,024,050.00 | 404,918,098.15 | 199,995,742.59 | -100,157,634.16 | 474,516,412.50 | 7,098,721,555.37 | 8,627,026,739.27 | 139,031,776.96 | 8,766,058,516.23 |
III. Increase/decrease in the current period(less to be filled out with the minus sign “-)
| III. Increase/decrease in the current period (less to be filled out with the minus sign “-) | 5,079,567.43 | 1,100,357,460.21 | 1,105,437,027.64 | -13,242,574.86 | 1,092,194,452.78 |
(I) Total comprehensive income
| (I) Total comprehensive income | 1,572,404,918.21 | 1,572,404,918.21 | -14,098,467.91 | 1,558,306,450.30 |
(II) Owner’s invested and decreased capital
| (II) Owner’s invested and decreased capital | 5,079,567.43 | 5,079,567.43 | 10,655,893.05 | 15,735,460.48 |
1. Common stock invested by the owner
| 1. Common stock invested by the owner | 344,106.95 | 344,106.95 | 10,655,893.05 | 11,000,000.00 |
2. Capital invested by other equity
instrument holders
| 2. Capital invested by other equity instrument holders |
3. Amount of share-based payment
included in the owner’s equity
| 3. Amount of share-based payment included in the owner’s equity | 4,735,460.48 | 4,735,460.48 | 4,735,460.48 |
4. Other
| 4. Other |
(III) Profit distribution
| (III) Profit distribution | -472,047,458.00 | -472,047,458.00 | -9,800,000.00 | -481,847,458.00 |
1. Withdrawal of surplus reserves
| 1. Withdrawal of surplus reserves |
2. Withdrawal of general risk preparation
| 2. Withdrawal of general risk preparation |
3. Distribution of owners (or shareholders)
| 3. Distribution of owners (or shareholders) | -472,047,458.00 | -472,047,458.00 | -9,800,000.00 | -481,847,458.00 |
4. Other
| 4. Other |
(IV) Internal transfer of owner’s equity
| (IV) Internal transfer of owner’s equity |
1. Capital surplus transfer to paid-in capital
(or capital stock)
| 1. Capital surplus transfer to paid-in capital (or capital stock) |
2. Earned surplus transfer to paid-in capital
(or capital stock)
| 2. Earned surplus transfer to paid-in capital (or capital stock) |
3. Earned surplus covering the deficit
| 3. Earned surplus covering the deficit |
4. Carryforward retained earnings in
variation of defined benefit plan
| 4. Carryforward retained earnings in variation of defined benefit plan |
5. Carryforward retained earnings of other
comprehensive income
| 5. Carryforward retained earnings of other comprehensive income |
2022 Full Annual Report
| 6. Other |
(V) Special reserve
| (V) Special reserve |
1. Draw in this current
| 1. Draw in this current |
2. Use in this current
| 2. Use in this current |
(VI) Other
| (VI) Other |
IV. Balance at the end of current period
| IV. Balance at the end of current period | 949,024,050.00 | 409,997,665.58 | 199,995,742.59 | -100,157,634.16 | 474,516,412.50 | 8,199,079,015.58 | 9,732,463,766.91 | 125,789,202.10 | 9,858,252,969.01 |
Last term amount
Unit: yuan
| Item | Year 2021 | ||||||||||||||
| Owners' equities attributable to the owners of parent company | Minority equity | Total owners' equities | |||||||||||||
| Capital stock | Other equity instruments | Capital reserve | Minus: treasury stock | Other comprehensive income | Special reserve | Surplus reserves | General risk preparation | Undistributed profit | Other | Subtotal | |||||
| Preferred stock | Perpetual bond | Other | |||||||||||||
I. Ending balance in previous year
| I. Ending balance in previous year | 949,024,050.00 | 401,799,332.67 | -15,157,634.16 | 474,516,412.50 | 6,240,444,654.34 | 8,050,626,815.35 | 143,152,413.29 | 8,193,779,228.64 |
Plus: Changes in accounting policies
| Plus: Changes in accounting policies |
Prior period error correction
| Prior period error correction |
Business combination undercommon control
| Business combination under common control |
Other
| Other |
II. Beginning balance in current year
| II. Beginning balance in current year | 949,024,050.00 | 401,799,332.67 | -15,157,634.16 | 474,516,412.50 | 6,240,444,654.34 | 8,050,626,815.35 | 143,152,413.29 | 8,193,779,228.64 |
III. Increase/decrease in the currentperiod (less to be filled out with theminus sign “-)
| III. Increase/decrease in the current period (less to be filled out with the minus sign “-) | 3,118,765.48 | 199,995,742.59 | -85,000,000.00 | 858,276,901.03 | 576,399,923.92 | -4,120,636.33 | 572,279,287.59 |
(I) Total comprehensive income
| (I) Total comprehensive income | -85,000,000.00 | 1,331,712,059.03 | 1,246,712,059.03 | 17,079,363.67 | 1,263,791,422.70 |
(II) Owner’s invested and decreasedcapital
| (II) Owner’s invested and decreased capital | 3,118,765.48 | 199,995,742.59 | -196,876,977.11 | 850,000.00 | -196,026,977.11 |
1. Common stock invested by the owner
| 1. Common stock invested by the owner | 850,000.00 | 850,000.00 |
2. Capital invested by other equity
instrument holders
| 2. Capital invested by other equity instrument holders |
3. Amount of share-based payment
included in the owner’s equity
| 3. Amount of share-based payment included in the owner’s equity | 3,118,765.48 | 199,995,742.59 | -196,876,977.11 | -196,876,977.11 |
4. Other
| 4. Other |
(III) Profit distribution
| (III) Profit distribution | -473,435,158.00 | -473,435,158.00 | -22,050,000.00 | -495,485,158.00 |
1. Withdrawal of surplus reserves
| 1. Withdrawal of surplus reserves |
2. Withdrawal of general risk preparation
| 2. Withdrawal of general risk preparation |
3. Distribution of owners (or
shareholders)
| 3. Distribution of owners (or shareholders) | -473,435,158.00 | -473,435,158.00 | -22,050,000.00 | -495,485,158.00 |
4. Other
| 4. Other |
(IV) Internal transfer of owner’s equity
| (IV) Internal transfer of owner’s equity |
2022 Full Annual Report
| 1. Capital surplus transfer to paid-in capital (or capital stock) |
2. Earned surplus transfer to paid-in
capital (or capital stock)
| 2. Earned surplus transfer to paid-in capital (or capital stock) |
3. Earned surplus covering the deficit
| 3. Earned surplus covering the deficit |
4. Carryforward retained earnings in
variation of defined benefit plan
| 4. Carryforward retained earnings in variation of defined benefit plan |
5. Carryforward retained earnings of
other comprehensive income
| 5. Carryforward retained earnings of other comprehensive income |
6. Other
| 6. Other |
(V) Special reserve
| (V) Special reserve |
1. Draw in this current
| 1. Draw in this current |
2. Use in this current
| 2. Use in this current |
(VI) Other
| (VI) Other |
IV. Balance at the end of current period
| IV. Balance at the end of current period | 949,024,050.00 | 404,918,098.15 | 199,995,742.59 | -100,157,634.16 | 474,516,412.50 | 7,098,721,555.37 | 8,627,026,739.27 | 139,031,776.96 | 8,766,058,516.23 |
8. Statement of change in equity of parent company
Current amount
Unit: yuan
| Item | Year 2022 | |||||||||||
| Capital stock | 其他权益工具 | Capital reserve | Minus: treasury stock | Other comprehensive income | Special reserve | Surplus reserves | Undistributed profit | Other | Total owners' equities | |||
| Preferred stock | Perpetual bond | Other | ||||||||||
I. Ending balance inprevious year
| I. Ending balance in previous year | 949,024,050.00 | 404,873,115.14 | 199,995,742.59 | -100,157,634.16 | 474,516,412.50 | 6,971,309,836.02 | 8,499,570,036.91 |
Plus: Changes inaccounting policies
| Plus: Changes in accounting policies |
Prior perioderror correction
| Prior period error correction |
Other
| Other |
II. Beginning balance incurrent year
| II. Beginning balance in current year | 949,024,050.00 | 404,873,115.14 | 199,995,742.59 | -100,157,634.16 | 474,516,412.50 | 6,971,309,836.02 | 8,499,570,036.91 |
III. Increase/decrease inthe current period (less tobe filled out with theminus sign “-)
| III. Increase/decrease in the current period (less to be filled out with the minus sign “-) | 4,735,460.48 | 1,185,179,314.47 | 1,189,914,774.95 |
(I) Total comprehensiveincome
| (I) Total comprehensive income | 1,657,226,772.47 | 1,657,226,772.47 |
(II) Owner’s investedand decreased capital
| (II) Owner’s invested and decreased capital | 4,735,460.48 | 4,735,460.48 |
1. Common stock
invested by the owner
| 1. Common stock invested by the owner |
2. Capital invested by
other equity instrumentholders
| 2. Capital invested by other equity instrument holders |
2022 Full Annual Report
| 3. Amount of share-based payment included in the owner’s equity | 4,735,460.48 | 4,735,460.48 |
4. Other
| 4. Other |
(III) Profit distribution
| (III) Profit distribution | -472,047,458.00 | -472,047,458.00 |
1. Withdrawal of surplus
reserves
| 1. Withdrawal of surplus reserves |
2. Distribution of owners
(or shareholders)
| 2. Distribution of owners (or shareholders) | -472,047,458.00 | -472,047,458.00 |
3. Other
| 3. Other |
(IV) Internal transfer ofowner’s equity
| (IV) Internal transfer of owner’s equity |
1. Capital surplus
transfer to paid-in capital(or capital stock)
| 1. Capital surplus transfer to paid-in capital (or capital stock) |
2. Earned surplus
transfer to paid-in capital(or capital stock)
| 2. Earned surplus transfer to paid-in capital (or capital stock) |
3. Earned surplus
covering the deficit
| 3. Earned surplus covering the deficit |
4. Carryforward retained
earnings in variation ofdefined benefit plan
| 4. Carryforward retained earnings in variation of defined benefit plan |
5. Carryforward retained
earnings of othercomprehensive income
| 5. Carryforward retained earnings of other comprehensive income |
6. Other
| 6. Other |
(V) Special reserve
| (V) Special reserve |
1. Draw in this current
| 1. Draw in this current |
2. Use in this current
| 2. Use in this current |
(VI) Other
| (VI) Other |
IV. Balance at the end ofcurrent period
| IV. Balance at the end of current period | 949,024,050.00 | 409,608,575.62 | 199,995,742.59 | -100,157,634.16 | 474,516,412.50 | 8,156,489,150.49 | 9,689,484,811.86 |
Last term amount
Unit: yuan
| Item | Year 2021 | |||||||||||
| Capital stock | Other equity instruments | Capital reserve | Minus: treasury stock | Other comprehensive income | Special reserve | Surplus reserves | Undistributed profit | Other | Total owners' equities | |||
| Preferred stock | Perpetual bond | Other | ||||||||||
I. Ending balance in previous year
| I. Ending balance in previous year | 949,024,050.00 | 401,754,349.66 | -15,157,634.16 | 474,516,412.50 | 6,120,603,639.69 | 7,930,740,817.69 |
Plus: Changes in accounting policies
| Plus: Changes in accounting policies |
Prior period error correction
| Prior period error correction |
2022 Full Annual Report
| Other |
II. Beginning balance in current year
| II. Beginning balance in current year | 949,024,050.00 | 401,754,349.66 | -15,157,634.16 | 474,516,412.50 | 6,120,603,639.69 | 7,930,740,817.69 |
III. Increase/decrease in the current period (lessto be filled out with the minus sign “-)
| III. Increase/decrease in the current period (less to be filled out with the minus sign “-) | 3,118,765.48 | 199,995,742.59 | -85,000,000.00 | 850,706,196.33 | 568,829,219.22 |
(I) Total comprehensive income
| (I) Total comprehensive income | -85,000,000.00 | 1,324,141,354.33 | 1,239,141,354.33 |
(II) Owner’s invested and decreased capital
| (II) Owner’s invested and decreased capital | 3,118,765.48 | 199,995,742.59 | -196,876,977.11 |
1. Common stock invested by the owner
| 1. Common stock invested by the owner |
2. Capital invested by other equity instrument
holders
| 2. Capital invested by other equity instrument holders |
3. Amount of share-based payment included in
the owner’s equity
| 3. Amount of share-based payment included in the owner’s equity | 3,118,765.48 | 199,995,742.59 | -196,876,977.11 |
4. Other
| 4. Other |
(III) Profit distribution
| (III) Profit distribution | -473,435,158.00 | -473,435,158.00 |
1. Withdrawal of surplus reserves
| 1. Withdrawal of surplus reserves |
2. Distribution of owners (or shareholders)
| 2. Distribution of owners (or shareholders) | -473,435,158.00 | -473,435,158.00 |
3. Other
| 3. Other |
(IV) Internal transfer of owner’s equity
| (IV) Internal transfer of owner’s equity |
1. Capital surplus transfer to paid-in capital (or
capital stock)
| 1. Capital surplus transfer to paid-in capital (or capital stock) |
2. Earned surplus transfer to paid-in capital (or
capital stock)
| 2. Earned surplus transfer to paid-in capital (or capital stock) |
3. Earned surplus covering the deficit
| 3. Earned surplus covering the deficit |
4. Carryforward retained earnings in variation
of defined benefit plan
| 4. Carryforward retained earnings in variation of defined benefit plan |
5. Carryforward retained earnings of other
comprehensive income
| 5. Carryforward retained earnings of other comprehensive income |
6. Other
| 6. Other |
(V) Special reserve
| (V) Special reserve |
1. Draw in this current
| 1. Draw in this current |
2. Use in this current
| 2. Use in this current |
(VI) Other
| (VI) Other |
IV. Balance at the end of current period
| IV. Balance at the end of current period | 949,024,050.00 | 404,873,115.14 | 199,995,742.59 | -100,157,634.16 | 474,516,412.50 | 6,971,309,836.02 | 8,499,570,036.91 |
2022 Full Annual Report
III. Basic status of company
Hangzhou ROBAM Appliances Co., Ltd. (ROBAM or the Company) is a limited liability company established by HangzhouROBAM Home Appliances & Kitchen Sanitary Co., Ltd. by means of overall change on November 7, 2000. Approved byChina Securities Regulatory Commission (ZJXK [2010] No.1512) in 2010, the Company issued 40 million ordinary shares tothe public for the first time on November 23, 2010, with a par value of RMB 1 per share and an issue price of RMB 24.00 andthe stock code of 002508.As of December 31, 2022, the total capital stock of the Company was 949,024,050 shares, and the registered capital was RMB949,024,050. Unified social credit code: 91330000725252053F, legal representative: Ren Jianhua; registered address: No.592,Linping Av., Yuhang Economic Development Zone, Yuhang District, Hangzhou City; headquarters office address: No.592,Linping Av., Yuhang Economic Development Zone, Yuhang District, Hangzhou City.On April 26, 2022, the Company's business scope was changed into: general items: Home appliance manufacturing; Researchand development of kitchenware, sanitary ware and daily necessities; Wholesale of kitchenware, sanitary ware and dailynecessities; Sales of daily glass products; Sales of home appliances; Home appliance installation services; Research anddevelopment of home appliances; Sales of household supplies; Sales of daily necessities; Manufacturing of daily woodenproducts; Retail of household appliances; Repair of home appliances; Sales of electric heating food processing equipment;Wholesale of daily necessities; Technical services, development, consultation, exchange, transfer, and promotion; Sales ofnon-electric home appliances; Manufacturing of non-electric home appliances; Production of gas appliances; Sales ofrefrigeration and air conditioning equipment; Manufacturing of refrigeration and air conditioning equipment; Development ofbasic artificial intelligence software; Manufacturing of smart home consumer equipment; Sales of artificial intelligencehardware; Manufacturing of special equipment for business, catering and services; Sales of special equipment for business,catering and services; Import and export of goods; Manufacturing of special equipment for environmental protection; Sales ofspecial equipment for environmental protection (except for items subject to approval according to law, subject to activitiesshall be carried out independently with the business license according to law). License items: production of disinfectionequipment; production of electric heating food processing equipment (Items subject to approval according to the law can onlybe carried out after getting the approval of relevant departments. Specific operating projects are subject to the approval resultsof relevant departments).The Company is mainly engaged in the development, production, sales and comprehensive services of kitchen appliances inthe manufacturing industry. Its main products include range hood, gas hob, sterilizer, steamer, oven, dishwasher, waterpurifier, microwave, integrated stove and purification tank.The scope of the Company's consolidated financial statements includes eight subsidiaries: Beijing ROBAM ElectricAppliance Sales Co., Ltd., Shanghai ROBAM Electric Appliance Sales Co., Ltd., Hangzhou Mingqi Electric Co., Ltd., DizeHome AppliancesTrading (Shanghai) Co., Ltd., Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd., Hangzhou ROBAMFuchuang Investment Management Co., Ltd. and Zhejiang Cooking Future Technology Co., Ltd. and Hangzhou Jinhe ElectricAppliances Co., Ltd. Compared with the previous year, the consolidation scope of the Company was expanded due to theestablishment of Hangzhou Jinhe Electric Appliances Co., Ltd.
IV. Preparation basis of financial statements
1. Preparation basis
The financial statements of the Company are prepared on the basis of the going-concern and the accounting policy andaccounting estimate in “IV. Significant accounting policy and accounting estimate” according to the actual transactions anditems, the Accounting Standards for Business Enterprises promulgated by the Ministry of Finance and relevant provisions.
2. Going concern
After comprehensive consideration to the macro policy risks, market operation risks, Company’s current and long-termprofitability, solvency, financial flexibility, intention of the management to change its business policy and other factors, theCompany's management believes that the Company has no issue affecting the Company's going-concern ability within 12months from the end of the report.V. Significant accounting policy and accounting estimate
Specific accounting policy and accounting estimate:
The specific accounting policies and accounting estimates formulated by the Company according to the actual production andoperation characteristics include the operating cycle, the recognition and measurement of bad debt provision of receivables,the measurement of issued inventory, the classification and depreciation of fixed assets, the amortization of intangible assets,the capitalization conditions of R&D expenses, the income recognition and measurement, etc.
2022 Full Annual Report
1. Statement on complying with corporate accounting standardsThe Company’s financial statements comply with the requirements of the ASBE and truly and completely reflect theCompany's financial position, business performance, cash flows and other relevant information.
2. Accounting period
The fiscal year of the Company runs from January 1 to December 31 of each calendar year.
3. Operating cycle
The Company’s normal operating cycle is one year (12 months).
4. Accounting standard money
The bookkeeping currency of the Company is RMB.
5. Accounting process method of business combination involving enterprises under and not under
common controlThe assets and liabilities acquired by the Company as the combining party through business combination under commoncontrol are measured on the combination date according to the book value of the combined party in the consolidatedstatements of the final controlling party. The difference between the book value of the net assets obtained and theconsideration paid for the combination is adjusted against capital reserve; if the capital reserve is not sufficient to absorb thedifference, the retained earnings shall be adjusted.The acquiree's identifiable assets, liabilities and contingent liabilities acquired through business combination not undercommon control are measured at fair value on the acquisition date. The combined cost is the fair value of the cash or non-cashassets paid, liabilities incurred or assumed and equity securities issued by the acquirer on the acquiring date for acquisition ofthe control right of the acquiree, as well as the sum of direct costs for the business combination (for the business combinationrealized by steps through several times, the combined cost is the sum of the costs of each transaction). Where the combinedcost exceeds the acquirer’s interest in the fair value of the acquiree’s net identifiable assets, the difference is recognized asgoodwill; where the combined cost is less than the acquirer’s interest in the fair value of the acquiree’s net identifiable assets,the acquirer first reassesses the fair values of the acquiree's identifiable assets, liabilities and contingent liabilities incombination and the fair values of non-cash assets or equity securities issued for consolidation consideration. If afterreassessment, the combined cost is still less than the acquirer's interest in the fair value of the acquiree’s net identifiableassets, the difference is included in the current non-operating income.
6. Methods for preparing consolidated financial statementsThe Company includes all subsidiaries under its control in the consolidated financial statements.In preparing the consolidated financial statements, where the accounting policies and the accounting periods of the Companyand subsidiaries are inconsistent, the financial statements of the subsidiaries are adjusted in accordance with the accountingpolicies and the accounting period of the Company.All significant internal transactions, current balances and unrealized profits in the consolidation scope shall be set off whenthe consolidated statements are prepared. The share of the owner's equity of the subsidiaries not attributable to the parentcompany and current net profits and losses, other comprehensive income, and the share of other comprehensive incomeattributable to the minority interests shall be presented in the consolidated financial statements under “minority equity,minority interest income, other comprehensive income attributed to minority shareholders and total comprehensive incomeattributed to minority shareholders”.For a subsidiary in the business combination under common control, its business performance and cash flows have beenconsolidated since the beginning of the consolidation year into the consolidated financial statements. When preparing andcomparing the consolidated financial statements, the Company shall adjust the relevant items of the previous year's financialstatements, which shall be regarded as the subject of the consolidated report that has been in existence since the beginning ofthe control by the final controlling party.For a subsidiary in the business combination not under common control, its business performance and cash flows shall beincorporated into the consolidated financial statements from the date of the Company's acquisition of control. In preparing theconsolidated financial statements, the financial statements of the subsidiary shall be adjusted on the basis of the fair values ofthe identifiable assets, liabilities and contingent liabilities as determined on the acquiring date.If the Company acquires the equity of the acquiree by steps through several deals and finally forms business combination notunder common control, in the compilation of the consolidated statements, as for the equity interests held in the acquireebefore the acquiring date, they shall be re-measured according to their fair values at the acquiring date; the difference betweentheir fair values and book value shall be recorded into the investment gains for the period including the acquiring date. Otherrelated comprehensive gains in relation to the equity interests held in the acquiree under the equity accounting before the
2022 Full Annual Report
acquiring date, and the changes in owners’ equity other than net profit and loss, other comprehensive income and profitdistribution shall be carried forward into profit and loss on investments in the period of the acquiring date, except for othercomprehensive income from the change caused by the remeasurement of the net liabilities or net assets of the defined benefitplan by the investee.In consolidated financial statements, when the Company disposes of part of long-term equity investment in the subsidiarybefore losing control rights, the difference between the disposal price and the long-term equity investment disposed of relativeto the share of the net assets to be enjoyed and continuously calculated from the acquiring date or combination date isadjusted against capital premium or capital stock premium; if the capital reserve is not sufficient to absorb the difference, theretained earnings shall be adjusted.When the Company loses the control right over the investee due to disposal of part of the equity investment or other reasons,the residual equity shall be re-measured at its fair value on the date of losing the control right in preparing the consolidatedfinancial statements. The difference between the sum of the consideration acquired by disposal of the equity and the fair valueof the residual equity, and the share of the net assets of the original subsidiary continuously calculated from the acquiring dayor combination date according to the original shareholding ratio, shall be included in the profit and loss on investments in theperiod of lose of the control right and written down against the goodwill. Other comprehensive income related to the equityinvestment of the original subsidiary is transferred into the current profit and loss on investments in the period of loss ofcontrol right.
7. Joint venture arrangements classification and Co-operation accounting treatmentThe Company’s joint venture arrangements include cooperative enterprise.The investment in the cooperative enterprise is subject to the accounting treatment by the Company as the joint venture partyaccording to the Accounting Standards for Business Enterprises No. 2 - Long-term Equity Investments.
8. Determining standards of cash and cash equivalents
The cash in the cash flow statement of the Company refers to the cash on hand and deposits readily available for payment.The cash equivalents represent the short-term (no more than three months) and highly liquid investments that are readilyconvertible into known amounts of cash and that are subject to an insignificant risk of change in value.
9. Foreign currency transaction and foreign currency statement translation
1. Foreign currency transaction
The foreign currency transaction of the Company is converted to Renminbi at the spot rate on the transaction date. Theforeign currency project, on the balance sheet date, is converted to Renminbi at the spot rate. The resulting converteddifference is included in current profit and loss except the balance of exchange of special foreign currency loan related toacquisition or construction of assets meeting the capitalization conditions. Non-monetary items in foreign currency measuredat fair value are converted by the spot rate on the recognition date of the fair value. The difference between the bookkeepingcurrency amount after conversion and the original bookkeeping currency amount is recorded into the capital reserve ifbelonging to non-monetary items in foreign currency of available-for-sale financial assets, or recorded into current profit andloss if belonging to non-monetary items in foreign currency measured at fair value and with the changes included in currentprofit and loss. Non-monetary items in foreign currency measured by the historical cost are still converted by the spot rate onthe transaction date without changing the RMB amount.
2. Conversion of financial statements denominated in foreign currencies
The assets and liabilities in the balance sheet of a foreign operation are converted at the spot rate on the balance sheet date; allitems of owner’s equity, except the “undistributed profit”, are converted at the spot rate at the time of occurrence. The incomeand expense items in the income statement of a foreign operation are converted at the approximate exchange rate of the spotrate on the date of transaction. The converted difference of the foreign currency financial statements generated according tothe above translation shall be presented in other comprehensive income. For a foreign currency monetary item whichconstitutes a net investment in overseas operations, the exchange difference resulting from the change of exchange rate shallbe presented as other comprehensive income in the compilation of the consolidated financial statements. Upon disposal of anoverseas operation, other comprehensive income related to the overseas operation shall be transferred to the current profit andloss according to the proportion.The approximate exchange rate of the spot exchange rate on the date of the cash flows shall be based on for the translation ofcash flows in a foreign currency and in an overseas subsidiary. The effect of a change in exchange rate on cash shall beseparately presented in the cash flow statement.
10. Financial instruments
The Company recognizes a financial asset or financial liability when becoming a party of the financial instrument contract.
1. Financial assets
2022 Full Annual Report
1) Classification, recognition basis and measurement method for financial assetsAccording to the business model of managing financial assets and the contractual cash flow characteristics of financial assets,the financial assets of the Company are classified into: financial assets measured at the amortized cost; financial assetsmeasured at fair value of which changes are recorded into other comprehensive income; financial assets at fair value throughprofit or loss (“FVTPL”).The financial asset of the Company that meets the following conditions simultaneously is classified as financial assetmeasured at the amortized cost: ① The business model for managing the financial asset is to collect contractual cash flows.
② According to the contract terms of the financial asset, the cash flow generated on a specific date is only for the payment ofthe principal and the interest based on the outstanding principal amount. Such financial asset is initially measured at the fairvalue and the relevant transaction costs are charged to initially recognized amount; further measurement is made at theamortized cost. With the exception of the hedged item designated as such, the difference between the initial amount and theamount due shall be amortized in accordance with the effective interest method, and the gains and losses arising from theamortization, impairment, exchange gains and losses and the derecognition shall be recorded into the current profit and loss.The financial asset of the Company that meets the following conditions simultaneously is classified as the financial assetmeasured at fair value of which changes are recorded into other comprehensive income: ① The business model for managingsuch financial assets is to collect contractual cash flows and to sell the financial asset. ② According to the contract terms ofthe financial asset, the cash flow generated on a specific date is only for the payment of the principal and the interest based onthe outstanding principal amount. Such financial asset is initially measured at the fair value and the relevant transaction costsare charged to initially recognized amount. With the exception of the hedged item designated as such, the other gains or lossesincurred from such financial asset, except for credit impairment losses or gains, exchange gains and losses and interest on thefinancial asset calculated by effective interest method, shall be included in other comprehensive income; when the financialasset is derecognized, the accumulated gains or losses previously recorded in other comprehensive income should betransferred from other comprehensive income in current profit and loss.The Company recognizes interest income by effective interest method. The interest income is determined by multiplying thebook balance of a financial asset by the effective interest rate, except as follows: ① For an acquired or originated financialasset with credit impairment, the interest income shall be determined according to the amortized cost of the financial asset andthe effective interest rate adjusted by credit from the initial recognition. ② For an acquired or originated financial asset withcredit impairment, but which has credit impairment in the subsequent period, the interest income of the financial asset shall bedetermined according to the amortized cost and the effective interest rate of the financial asset in the subsequent period.The Company designates the non-transactional equity instruments as the financial assets measured at fair value of whichchanges are recorded into other comprehensive income. Such designation, once made, shall not be revoked. The non-transactional equity instruments measured at fair value of which changes are recorded into other comprehensive income areinitially measured at the fair value and the relevant transaction costs are charged to initially recognized amount; except for thedividends (excluding the part of investment cost recovery) recorded into the current profit and loss, other related gains andlosses (including exchange gains and losses) are recorded into other comprehensive income and shall not be transferred intothe current profit and loss subsequently. Upon derecognition, the accumulated gains or losses previously recorded in othercomprehensive income should be transferred from other comprehensive income to the retained earnings.The above financial assets measured at the amortized cost and the financial assets measured at fair value of which changes arerecorded into other comprehensive income are classified as financial assets at fair value through profit or loss (“FVTPL”).Such financial asset is initially measured at the fair value and the relevant transaction costs are directly charged to the currentprofit and loss. Gains or losses on such financial assets are charged to the current profit and loss.The financial assets recognized by the Company through business combination not under common control or constituted bycontingent consideration are classified as financial assets at fair value through profit or loss (“FVTPL”).
2) Recognition basis and measurement method for transfer of financial assetsThe financial asset is derecognized when meeting any of the following conditions: ① The contract right to charge the cashflow of the financial asset is terminated; ② The financial asset has been transferred and almost all risks and remuneration ofthe financial asset ownership are transferred; ③ The financial asset has been transferred and the Company does neithertransfer nor retain almost all risks and remuneration of the financial asset ownership but gives up the control over thefinancial asset.If the overall transfer of the financial asset meets the derecognition conditions, the difference of the book value of thetransferred financial asset from the sum of the consideration received and the derecognized amount in the cumulative amountof the fair value changes originally included in other comprehensive income (according to the contract terms of the financialasset transferred, the cash flow generated on a specific date is only for the payment of the principal and the interest based onthe outstanding principal amount) is charged to the current profit and loss.If the partial transfer of the financial asset meets the derecognition conditions, the overall book value of the transferredfinancial asset, between the derecognized part and non-derecognized part, is allocated according to the respective relative fairvalue. The difference of the sum of the consideration received from transfer and the derecognized amount in the cumulative
2022 Full Annual Report
amount of the fair value changes in the derecognized part originally included in other comprehensive income (according to thecontract terms of the financial asset transferred, the cash flow generated on a specific date is only for the payment of theprincipal and the interest based on the outstanding principal amount) from the overall book value of the above-mentionedfinancial asset allocated is charged to current profit and loss.
2. Financial liabilities
1) Classification, recognition basis and measurement method for financial liabilitiesFinancial liabilities, upon initial recognition, are divided into those measured with fair value and with the changes included incurrent profit and loss and other financial liabilities.Financial liabilities measured with fair value and with the changes included in current profit and loss, including the tradingfinancial liabilities and the financial liabilities measured with fair value and with the changes included in current profit andloss upon initial recognition. The financial liability is subsequently measured with the fair value. The gain or loss formedfrom the changes in the fair value as well as the dividends and interest expenditure related to the financial liability is chargedto current profit and loss.The other financial liabilities are subsequently measured with the amortized cost by means of effective interest method.Except for the following items, the financial assets are classified as the financial liabilities measured at amortized cost: ①Financial liabilities measured with fair value and with the changes included in current profit and loss, including the tradingfinancial liabilities (including derivative instruments belonging to financial liabilities) and the financial liabilities measuredwith fair value and with the changes included in current profit and loss. ② Financial liabilities formed by the transfer offinancial assets not conforming to the derecognition conditions or by continuing to involve in the transferred financial assets.
③ Financial guarantee contracts that do not fall under the above ① or ② circumstances, and loan commitments to lend at abelow-market rate that do not fall under the above ① circumstance.The financial liabilities recognized by the Company as the acquirer through business combination not under common controlor formed by contingent consideration are classified as financial liabilities at fair value through profit or loss for accounting.
2) Derecognition of financial liabilities
The Company derecognizes a financial liability (or part of it) only when the underlying present obligation (or part of it) isdischarged. An agreement between the Company and a creditor to replace the existing financial liability with a new one withsubstantially different terms is accounted for as the derecognition of the existing financial liability and the recognition of anew financial liability. When the Company makes material alteration to the contract terms of the existing financial liability(or part of it), it derecognizes the existing financial liability (or part of it) and recognizes a new one according to the alteredterms. The difference between the book value of the derecognized part and the consideration paid is charged to current profitand loss.
3) Fair value determination method of financial assets and financial liabilitiesThe fair value of the financial assets and financial liabilities is measured by the Company at the prices in the principal market.If no principal market exists, the fair value is measured at the most favorable market price by valuation techniques that areapplicable at the time and are supported by sufficient data and other information available. The input value used in the fairvalue measurement is divided into three levels. That is, the input value of the first level is the unadjusted quotation of thesame assets or liabilities on the active market that can be obtained on the measurement day. The input value of the secondlevel is the direct or indirect observable input value of related assets or liabilities other than the input value of the first level.The input value of the third level is the non-observable input value of the relevant assets or liabilities. The Company prefersthe input value of the first level and finally the input value of the third level. The level of the measurement results of the fairvalue is determined by the lowest level of the input value that is of great significance to the measurement of fair value as awhole.The Company measures the equity instrument investment at fair value. However, in limited cases, if the recent informationused to determine the fair value is insufficient, or the possible estimated amount of the fair value is widely distributed, and thecost represents the best estimate of the fair value within the range, the cost may represent the appropriate estimate of the fairvalue within the range.
3. Offset of financial assets and financial liabilities
The financial assets and financial liabilities of the Company are listed respectively in the balance sheet and no mutually offset.However, when the following conditions are met at the same time, they are listed as net amount after offset in the balancesheet: (1) the Company has the legal right to offset the recognized amount and may execute the legal right currently; (2) theCompany plans to settle with net amount or realize the financial asset and pay off the financial liability simultaneously.
4. Distinction between financial liabilities and equity instruments and relevant treatment methodThe Company distinguishes between a financial liability and an equity instrument in accordance with the followingprinciples :(1) If the Company cannot unconditionally avoid performing a contractual obligation by delivering cash or other
2022 Full Annual Report
financial assets, the contractual obligation is defined as a financial liability. Although some financial instruments do notexplicitly contain terms and conditions for the obligation to deliver cash or other financial assets, they may indirectly formcontractual obligations through other terms and conditions. (2) If a financial instrument is to be settled by or with theCompany's equity instrument, it is necessary to consider whether the Company's equity instrument used to settle the financialinstrument is to be used as a substitute for cash or other financial assets or to give the holder of the instrument a residualequity in the assets of the issuer after deducting all liabilities. In the former case, the financial instrument is a financialliability of the issuer; in the latter case, the instrument is the issuer’s equity instrument. If it is stipulated in a financialinstrument contract that the Company shall or may settle the financial instrument by its own equity instruments in some cases,in which, the amount of the contractual rights or contractual obligations is equal to the number of its equity instrumentsavailable or to be delivered multiplied by its fair value at the time of settlement, the contract is classified as a financialliability, whether the amount of the contractual rights or obligations is fixed or whether it is based in whole or in part onchanges in variables (such as the interest rate, the price of a commodity or the price of a financial instrument) other than themarket price of the Company's equity instruments.In classifying a financial instrument (or its components) in the consolidated statements, the Company takes into account allterms and conditions agreed between the members of the Company and the financial instrument holder. The instrument shallbe classified as a financial liability if the Company as a whole is obligated to deliver cash, other financial assets, or settleaccounts in other ways that cause the instrument to become a financial liability as a result of the instrument.The interest, dividends, profits or losses related to a financial instrument or its components classified as a financial liability,as well as gains or losses from redemption or refinancing, shall be recorded into the Company's current profit and loss.The issuance (including refinancing), repurchase, sales or cancellation of financial instrument or its components classified asequity instruments is handled as the equity changes, and the fair value change of the equity instruments is not recognized.
5. Impairment of financial instruments
The Company withdraws the provision for impairment for the financial assets measured at the amortized cost, financial assetsmeasured at fair value of which changes are recorded into other comprehensive income, and financial guarantee contractsbased on the expected credit loss, and recognizes the credit impairment loss.The expected credit loss refers to the weighted average credit loss of financial instruments weighted by the risk of default.Credit loss refers to the difference between all contract cash flows discounted by the Company at the original effectiveinterest rate and receivable according to the contract and all expected cash flows received, that is, the present value of all cashshortage. The financial assets purchased or originated that have suffered from credit impairment shall be discounted at theeffective interest rate of the financial assets through credit adjustment.The provision for loss on the accounts receivable from standard transactions in the income guidelines and not containingmaterial financing elements shall be measured by the Company by simplified measurement according to the amountequivalent to the expected credit loss in the whole duration.For the financial assets purchased or originated that have suffered from credit impairment, only the cumulative changes of theexpected credit loss in the whole duration upon initial recognition are recognized as provision for loss on the balance sheetdate. On each balance sheet date, the amount of change in the expected credit loss over the entire duration is recorded as animpairment loss or gain in the current period. Favorable changes in the expected credit loss are recognized as impairmentgains even if the expected credit loss for the entire duration recognized on the balance sheet date is less than the amount ofoverdue credit loss reflected in the estimated cash flow upon initial recognition.For the financial assets other than those purchased or originated that have suffered from credit impairment by simplifiedmeasurement, the Company shall evaluate whether the credit risk of relevant financial instrument has increased significantlyupon initial recognition on each balance sheet date and measure its provision for loss and recognize the expected credit lossesand changes respectively in the following cases:
1) If the credit risk of the financial instrument has not increased significantly upon initial recognition and is in the first stage,its provision for loss is measured according to the amount equivalent to the expected credit loss of the financial instrument inthe next 12 months, and the interest income is calculated according to the book balance and the effective interest rate.
2) If the credit risk of the financial instrument has significantly increased without credit impairment upon initial recognitionand is in the second stage, its provision for loss is measured according to the amount equivalent to the expected credit loss ofthe financial instrument in the whole duration, and the interest income is calculated according to the book balance and theeffective interest rate.
3) If the financial instrument has suffered from credit impairment upon initial recognition and is in the third stage, itsprovision for loss is measured according to the amount equivalent to the expected credit loss of the financial instrument in thewhole duration, and the interest income is calculated according to the amortized cost and the effective interest rate.The amount increased or written back of the provision for credit loss of the financial instrument is recorded as an impairmentloss or gain in the current period. Except for financial assets measured at fair value of which changes are recorded into othercomprehensive income, the book balance of financial assets is offset by the provision for credit losses. For financial assets
2022 Full Annual Report
measured at fair value of which changes are recorded into other comprehensive income, the Company recognizes its provisionfor credit losses in other comprehensive income and does not reduce the book value of the financial assets on the balancesheet.If the Company has measured the provision for loss in the previous accounting period according to the amount equivalent tothe expected credit loss of the financial instrument in the whole duration but the credit risk of the financial instrument has nolonger been increased significantly upon initial recognition on the current balance sheet date, the Company shall measure theprovision for loss on the financial instrument on the current balance sheet date according to the amount equivalent to theexpected credit loss in the next 12 months and the resulting amount written back from the provision for loss is recorded as animpairment gain in the current period.
① Significant increase in credit risk
By means of the reasonable and valid forward-looking information available, the Company determines whether the creditrisks of financial instruments have increased significantly upon initial recognition by comparing the default risk of thefinancial instruments on the balance sheet date with the default risk on the initial recognition date. For financial guaranteecontracts, when the Company applies the impairment provisions on financial instruments, the date on which the Companybecomes a party to make an irrevocable commitment shall be the initial recognition date. The Company will consider thefollowing factors when assessing whether the credit risk has increased significantly: whether there are significant changes inthe actual or overdue operating results of the debtor; whether there has been a significant adverse change in the regulatory,economic or technical environment in which the debtor resides; whether there are significant changes in the value of collateralas collateral for debt or in the quality of guarantees or credit enhancements provided by third parties, as well as theprobability that these changes are expected to reduce the financial incentive for the debtor to repay on the terms specified inthe contract or affect the breach of contract; whether there has been a significant change in the expected performance andrepayment behavior of the debtor; whether the Company's credit management methods for financial instruments have changed.For a financial instrument with low credit risk on the balance sheet date, the Company assumes that the credit risk has notincreased significantly upon the initial recognition. The financial instrument is considered to have a low credit risk if thefinancial instrument has relatively low default risk, and the borrower has a strong ability to fulfill its contractual cash flowobligations in a short term, which will not necessarily reduced even if there are adverse changes in the economic situation andoperating environment in a long term.
② Financial assets that have suffered from credit impairment
When one or more events occur that adversely affect the expected future cash flow of a financial asset, the financial assetbecomes a financial asset with credit impairment. The evidence for credit impairment of financial assets includes: the debtorhas incurred major financial difficulties; the debtor breaches a contract, such as by default or exceeding payment of default orlate payment of interest or principal; the creditor gives the debtor concessions that he would not make under anycircumstances for economic or contractual reasons related to the debtor's financial difficulties; the debtor is likely to gobankrupt or undergo other financial restructuring; the financial difficulties of the issuer or debtor cause the active market forthe financial asset to disappear; a substantial discount at which a financial asset is purchased or originated reflects the fact ofcredit loss.The credit impairment of the financial asset may be caused by the joint action of the above events, and may not necessarily becaused by the events that can be identified separately.
③ Determination of expected credit loss
The Company evaluates the expected credit losses of financial instruments on the basis of individual and combinedinstruments, and in assessing the expected credit losses, takes into account reasonable and valid information about past events,current conditions and projections of future economic conditions.Based on the characteristics of common credit risks, the Company divides financial instruments into different combinations.The individual assessment standards and the characteristics of the combination credit risks of relevant financial instrumentsare detailed in the accounting policies of relevant financial instruments.The Company shall determine the expected credit losses of the relevant financial instruments in the following ways:
In the case of a financial asset, the credit loss is the present value of the difference between the contract cash flow receivableby the Company and the expected cash flow receivable;In the case of a financial guarantee contract, the credit loss is the present value of the difference between the estimatedamount of payment to be made by the Company in respect of any credit loss incurred under the contract, and the amount thatthe Company expects to receive from the contract holder, debtor or anywhere else;In the case of a financial asset with credit impairment on the balance sheet date but not purchased or originated with creditimpairment, the credit loss is the difference between the book balance of the financial asset and the present value of theestimated future cash flow discounted at the original effective interest rate.
2022 Full Annual Report
11. Notes receivable
Based on the acceptor credit risk of notes receivable as a common risk feature, the Company divides the notes receivable intodifferent combinations and determines the expected credit loss accounting estimation policy:
| Combination classification | Basis for recognition of combination | Accrual method |
| Banker's acceptance bill combination | The acceptor is a banking financial institution | The Company believes that the banker's acceptance bill held does not have significant credit risk and will not cause major losses due to bank default. |
| Commercial acceptance bill combination | The acceptor is a financial company or other non-bank financial institution or enterprise unit | The Company measures the provision for bad debt of commercial acceptance bills receivable according to the expected credit loss of the entire duration |
12. Accounts receivable
The provision for loss on the accounts receivable (whether or containing material financing elements) from standardtransactions in theAccounting Standards for Enterprises No.14 - Revenues and on the lease receivables regulated in theAccounting Standards for Enterprises No. 21 - Lease shall be measured by the Company by simplified measurementaccording to the amount equivalent to the expected credit loss in the whole duration.The Company shall evaluate whether the credit risks of accounts receivable have increased significantly on the basis of asingle financial instrument or a financial instrument combination. The Company makes single assessment of the credit risksfor the accounts receivable with significantly different credit risks and the following features: accounts receivable in disputewith the other party or involving litigation or arbitration; accounts receivable with obvious signs that the debtor is likely to beunable to perform the repayment obligations. It is feasible for the Company to evaluate whether the credit risks increasesignificantly on the basis of financial instrument combination if it is unable to obtain sufficient evidence for significantincrease in credit risks at reasonable cost at the level of single financial instrument. The Company can classify financialinstruments based on the characteristics of common credit risk in assessment based on the financial instrument combination.The Company divides the accounts receivable into the following combinations based on their credit risk characteristics:
| Combination classification | Basis for recognition of combination | Accrual method |
| Credit loss withdrawn on accounts receivable by aging analysis method | The receivables with the same aging have similar credit risk characteristics | Expected credit loss rate |
| Related parties in the consolidation scope | Funds of subsidiaries in the consolidation scope of controlling shareholders | Generally no expected credit loss |
If there is objective evidence that a credit impairment has occurred in an account receivable, the Company shall withdraw theprovision for bad debts for that account receivable and recognize the expected credit loss.For the accounts receivable with the credit loss drawn by aging analysis method, based on the actual credit losses of theprevious year and taking into account the forward-looking information of the current year, the Company's accountingestimation policy for measuring expected credit losses is as follows:
| Aging | Expected credit loss rate |
| Within 1 year | 5.00% |
| 1~2 years | 10.00% |
| 2~3 years | 20.00% |
| 3~4 years | 50.00% |
| 4~5 years | 80.00% |
| More than 5 years | 100.00% |
The Company shall calculate the expected credit loss of the accounts receivable on the balance sheet date. If the expectedcredit loss is greater than the book amount of the provision for impairment of current accounts receivable, the Companyrecognizes the difference as the provision for impairment of accounts receivable, debits the “credit impairment loss” andcredits the “provision for bad debt”. On the contrary, the Company recognizes the difference as an impairment gain andrecords the opposite.Where the Company has actually incurred a credit loss and the relevant accounts receivable are determined to be irrecoverable,and the write-off is approved, the “provision for bad debt” shall be debited and the “accounts receivable” shall be creditedaccording to the approved write-off amount. If the write-off amount is greater than the provision for loss which has beencalculated, the “credit impairment loss” shall be debited according to the difference.
2022 Full Annual Report
13. Receivables financing
The financial asset of the Company that meets the following conditions simultaneously is classified as the financial assetmeasured at fair value of which changes are recorded into other comprehensive income: the business model for managingsuch financial assets is to collect contractual cash flows and to sell the financial asset; according to the contract terms of thefinancial asset, the cash flow generated on a specific date is only for the payment of the principal and the interest based on theoutstanding principal amount.The Company transfers the accounts receivable held in the form of discount or endorsement. Such accounts receivable withfrequent business and large amount involved are measured at fair value and their changes are recorded into othercomprehensive income according to relevant regulations in the financial instrument standards if the management businessmodel is to collect and sell contractual cash flows.
14. Other receivables
Recognition and accounting method for expected credit loss of other receivablesThe Company divides the process of credit impairment of other receivables into three stages, and has different accountingtreatment methods for other receivables impairment in different stages:
● the credit risks has not increased significantly upon initial recognition (first stage).For the financial instruments in this stage, the Company should measure the provision for loss according to the expectedcredit loss over the next 12 months.The Company takes aging as the credit risk characteristic to group other receivables and measures them on the basis ofcombination, which is equivalent to the expected credit loss in the next 12 months.
● The credit risk has significantly increased without credit impairment upon initial recognition (second stage).
For the financial instruments in this stage, the Company should measure the provision for loss according to the expectedcredit loss in the whole duration.
● Credit impairment upon initial recognition (third stage)
For the financial instruments in this stage, the Company should measure the provision for loss according to the expectedcredit loss in the whole duration.
15. Inventory
The Company's inventory mainly includes low priced and easily worn articles, raw materials, work in process, merchandiseinventory and goods shipped in transit, etc.The perpetual inventory system is adopted for the inventories and the inventories are price according to the actual cost whenobtained; the cost of the inventories is recognized by the weighted average method when received or issued. The low pricedand easily worn articles and packages are amortized by one-time writing-off method.The year-end inventory is priced according to the cost of inventories or net realizable value, whichever is lower. In case ofinventory damage, full or partial obsolescence or selling price below the cost, the non-recoverable part of its cost is expectedand the inventory falling price reserves are withdrawn. The inventory falling price reserves of the merchandise inventory andraw materials are withdrawn according to the difference between the cost of a single inventory item and its net realizablevalue; for the inventories with large quantity and low unit price, the inventory falling price reserves are withdrawn accordingto the inventory category.For the merchandise inventory, work in process, materials for sale and other merchandise inventories directly used for sale,the net realizable value is recognized by the amount of the estimated sale price of the inventories subtracted by the estimatedselling expenses and related taxes; for the material inventory possessed for production, the net realizable value is recognizedby the amount of the estimated sale price of the finished products subtracted by the estimated cost about to occur incompletion, estimated selling expenses and related taxes.
16. Contract assets
1. Methods and standards for the recognition of contract assets
Contract assets refer to the Company's rights to receive consideration for the transfer of goods to the customer, and suchrights are subject to factors other than the passage of time. If the Company sells two clearly distinguishable commodities tocustomers, and it has the right to receive payment due to the delivery of one of the commodities, but the receipt of suchpayment also depends on the delivery of another commodity, the Company regards the right to receive payment as a contractasset.
2. Recognition method and accounting treatment method of the expected credit loss of contract assets
2022 Full Annual Report
For the recognition method of expected credit loss of contract assets, refer to the above 1. Financial assets and financialliabilities, 11. Notes receivable and 12. Accounts receivable.The Company shall calculate the expected credit loss of the contract assets on the balance sheet date. If the expected creditloss is greater than the book amount of the provision for impairment of current contract assets, the Company recognizes thedifference as the provision for impairment, debits the “assets impairment loss” and credits the “provision for impairment ofcontract assets”. On the contrary, the Company recognizes the difference as an impairment gain and records the opposite.Where the Company has actually incurred a credit loss and the relevant contract assets are determined to be irrecoverable, andthe write-off is approved, the “provision for impairment of contract assets” shall be debited and the “contract assets” shall becredited according to the approved write-off amount. If the write-off amount is greater than the provision for loss which hasbeen calculated, the “assets impairment loss” shall be debited according to the difference.
17. Contract cost
1. Recognition method of asset amount related to contract cost
The Company's assets related to contract cost include the contract performance cost and the contract acquisition cost.The contract performance cost, that is, the cost incurred by the Company for the performance of the contract, which is notwithin the scope of other accounting standards for business enterprises and meets the following conditions at the same time, isrecognized as an asset as the contract performance cost: such cost is directly related to a current or prospective contract,including direct labor, direct materials, manufacturing expenses (or similar expenses), costs clearly borne by the customer andother costs incurred solely as a result of the contract; Such cost increases the resources used by the Company to fulfill itsperformance obligations in the future; And such cost is expected to be recovered.The contract acquisition cost, that is, the incremental cost incurred by the Company to acquire the contract, which is expectedto be recovered, is recognized as an asset as the contract acquisition cost; If the amortization period of such asset does notexceed one year, it shall be recorded into the current profit and loss when it occurs. Incremental cost refers to the cost thatwill not occur if the Company does not acquire the contract (such as sales commission, etc.). Other expenses incurred by theCompany to acquire the contract other than the expected recoverable incremental costs (such as travel expenses incurredregardless of whether the contract is acquired or not) shall be recorded into the current profit and loss when it occurs, exceptthose clearly borne by the customer.
2. Amortization of assets related to contract cost
Assets related to contract costs are amortized on the same basis as income recognition of goods related to the asset, and arerecorded into the current profit and loss when it occurs.
3. Impairment of assets related to contract cost
When determining the impairment loss of assets related to the contract cost, the Company first determines the impairment lossof other assets related to the contract recognized in accordance with other relevant accounting standards for businessenterprises; Then, if the book value is higher than the difference between the residual consideration expected to be obtainedby the Company due to the transfer of goods related to the asset and the estimated cost to be incurred for the transfer ofrelevant goods, the excess part shall be accrued for impairment provision and recognized as asset impairment loss.If the factors of impairment in the previous period change so that the difference above is higher than the book value of theasset, the Company shall reverse the withdrawn asset impairment provision and include it into the current profit and loss, butthe book value of the reversed asset shall not exceed the book value of such asset on the reversal date if the impairmentprovision is not withdrawn.
18. Long-term equity investment
The Company's long-term equity investment mainly consists of investment in subsidiaries, joint ventures and cooperativeenterprises.The Company's judgment on common control is based on the collective control of the arrangement by all participants or acombination of participants, and the policy on the activities related to the arrangement must be agreed upon by all participantsin the collective control of the arrangement.When the Company directly or indirectly owns more than 20% (including) but less than 50% voting rights of the investeethrough its subsidiaries, it is generally considered to have a significant impact on the investee. When the Company owns lessthan 20% voting rights of the investee, it shall be judged to have a significant impact on the investee with comprehensiveconsideration to dispatching representatives in the board of directors of the investee or similar authority, participating in theformulation process of the financial and business policy of the investee, conducting important transactions with the investee,dispatching management to the investee or providing key technical data for the investee.The company that forms control over the investee shall be a subsidiary of the Company. For the long-term equity investmentacquired through business combination under common control, the share of the book value of the net assets of the combined
2022 Full Annual Report
party in the consolidated statements of the final controlling party, on the combination date, is regarded as the initial cost ofthe long-term equity investment. If the book value of the net assets of the combined party on the combination date is negative,the long-term equity investment cost shall be determined as zero.If the Company acquires the equity of the investee under common control by steps through several deals, finally formsbusiness combination and such deals belong to package deal, the deals shall be subject to accounting treatment as a deal toobtain the control right. If the deals do not belong to the package deal, the share of the book value of the net assets of thecombined party in the consolidated financial statements of the final controlling party, on the combination date, is regarded asthe initial cost of the long-term equity investment. The difference between the initial cost of the long-term equity investmentand the sum of the book value of the long-term equity investment before the combination plus the book value of the newconsideration for shares on the combination date is adjusted against capital reserve; if the capital reserve is not sufficient toabsorb the difference, the retained earnings shall be written down.For the long-term equity investment acquired through business combination not under common control, the combined cost isthe initial investment cost.If the Company acquires the equity of the investee not under common control by steps through several deals, finally formsbusiness combination and such deals belong to package deal, the deals shall be subject to accounting treatment as a deal toobtain the control right. If the deals do not belong to the package deal, the sum of the book value of the equity investmentoriginally held and newly increased investment cost shall be considered as initial cost of the investment that calculatesaccording to cost method. If the equity held before the acquiring date is calculated by the equity method, other comprehensiveincome calculated by the equity method is not adjusted and shall be subject to accounting treatment when disposing of theinvestment through adopting the basis for the direct disposal of relevant assets or liabilities of the investee. If the originalequity held before the acquiring date is calculated at fair value in the available-for-sale financial assets, the change in thecumulative fair value originally included in other comprehensive income is transferred to the current investment profit andloss on the combination date.Except for the long-term equity investment acquired through business combination, for the long-term equity investment madeby paying cash, the investment cost shall be the purchase price actually paid; for the long-term equity investment acquired byissuing equity securities, the investment cost shall be the fair value of the equity securities issued; for the long-term equityinvestment acquired through the exchange of non-monetary assets, the initial investment cost shall be recognized inaccordance with the relevant provisions of the Accounting Standards for Business Enterprises No.7 - Exchange of Non-monetary Assets; for the long-term equity investment acquired by debt restructuring, the initial investment cost shall berecognized in accordance with the relevant provisions of the Accounting Standards for Business Enterprises No.12 - DebtRestructuring.The investment in subsidiaries is measured by the cost method and the investment in joint ventures and cooperativeenterprises is measured by equity method.For the long-term equity investment calculated by cost method subsequently, the long-term equity investment cost is adjustedwhen the investment is added or recovered. The cash dividends or profits declared to be distributed by the investee should berecognized as current investment income.The book value of the long-term equity investment measured subsequently by equity method shall be increased or decreasedwith the change in the owner’s equity of the investee. The share of the net profits and losses of the investee to be enjoyedshall be recognized after offsetting of the part of the internal deal profits and losses attributable to the Company between thejoint venture and cooperative enterprise according to the shareholding ratio and after adjustment of the new profits of theinvestee on the basis of the fair value of the identifiable assets of the investee when the investment is obtained and accordingto the Company’s accounting policy and accounting period.In disposal of the long-term equity investment, the balance between the book value and the actual price obtained is charged tocurrent investment income. If a long-term equity investment calculated by the equity method is included in the owner's equitydue to changes in the owner's equity other than the net profit and loss of the investee, the part originally included in theowner's equity in the disposal of the investment shall be transferred to the current investment profit and loss by thecorresponding proportion.If the deals for disposal of the equity by steps until the loss of the control right do not belong to the package deal, each dealshall be subject to accounting treatment respectively. If they belong to a package deal, the deals shall be subject to accountingtreatment as a deal for disposal of subsidiary and loss of the control right; however, the difference between each disposalprice and the book value of the long-term equity investment corresponding to the equity disposed of before the loss of controlright is recognized as other comprehensive income and then transferred into the current profit and loss in the period of loss ofcontrol right.
19. Investment properties
Measurement mode of investment properties: measured by cost method.Depreciation or amortization method: The Company's investment properties include the leased buildings which are measuredby cost model.
2022 Full Annual Report
The Company's investment properties are depreciated or amortized by the straight-line depreciation method. The estimatedservice life, net residual rate and yearly depreciation (amortization) ratio of all types of investment properties are as follows:
| Category | Depreciation life (year) | Expected residual rate (%) | Yearly depreciation (%) |
| Houses and buildings | 20 years | 5.00 | 4.75 |
20. Fixed assets
(1) Recognition conditions
The Company’s fixed assets refer to the tangible assets with the following features which are held for production of goods,provision of labor, lease (excluding lease of buildings) or operating management and whose service life exceeds year.The fixed assets can be recognized when the economic benefits related to the fixed assets are likely to flow to the Companyand when the cost of the fixed assets can be reliably measured. The fixed assets, including buildings, machinery equipment,transportation equipment and other equipment, are entered into the account by actual cost when obtained, in which, the cost ofpurchased fixed assets includes buying price, import tariff and other relevant taxes, as well as other expenses incurred beforethe fixed assets reach the extended usable status and directly attributable to the assets; cost of self-constructed fixed assets,consisting of necessary expenses incurred from construction of the asset to the intended serviceable conditions; the costinvested by the investors in the fixed assets is determined according to the value stipulated in the investment contracts oragreements, except the value stipulated in the contracts or agreements is not fair; the fixed assets under financing lease shallbe recorded in the accounts according to the lower present value between the fair value of the leased asset on the leasecommencement date and the minimum lease payment.Accounting treatment of subsequent expenditure of fixed assets: subsequent expenditure of fixed assets mainly includes thetransformation and renovation expenses and repair expenses. If the economic benefits related may flow in and the cost can bereliably measured, the subsequent expenditure is included in the fixed asset cost and the book value of the replaced part isderecognized. The other subsequent expenditure is charged to current profit and loss upon occurrence.The Company shall review the service life, estimated residual value and depreciation method of the fixed assets on eachbalance sheet date and handle any change as the accounting estimate change.When the fixed assets are disposed of or cannot generate economic benefits through expected use or disposal, the fixed assetsare derecognized. The income from sale, transfer, scrap or damage disposal of fixed assets is included in current profits andlosses after deducting the book value and related taxes.
(2) Depreciation method
| Category | Depreciation method | Depreciation life | Residual rate | Yearly depreciation |
Houses and buildings
| Houses and buildings | Straight-line method | 20 years | 5.00% | 4.75% |
Machinery equipment
| Machinery equipment | Straight-line method | 10 years | 5.00% | 9.50% |
Transportationequipment
| Transportation equipment | Straight-line method | 5 years | 5.00% | 19.00% |
Other equipment
| Other equipment | Straight-line method | 5 years | 5.00% | 19.00% |
21. Construction in progress
The construction in progress is measured according to the actual cost. The self-run construction shall be measured by directmaterials, direct wages and direct construction costs; the outsourced construction shall be measured according to the paidproject cost; the equipment installation project cost shall be determined according to the value, installation cost and test runexpenses of the equipment installed. The cost of the construction in progress should also include the capitalized borrowingcosts.The fixed assets of the construction shall be carried forward to the fixed assets by the estimated value according to theconstruction budget, cost or actual construction cost from the date when they reach the intended usable state, and thedepreciation shall be calculated and withdrawn from the following month. The original value difference of the fixed assets isadjusted after the completion settlement procedures.
22. Borrowing costs
Recognition principle of capitalization of borrowing costs: the construction or production borrowing costs incurred anddirectly attributable to the assets meeting the capitalization conditions are capitalized and charged to relevant asset costs;other borrowing costs shall be recognized as costs according to the amount incurred when they occur and shall be included inthe current profit and loss. Assets meeting the capitalization conditions refer to the fixed assets, intangible assets, inventoriesand other assets which can reach the intended usable or marketable status only after quite a long time (generally more than 1year) of construction or production activities.
2022 Full Annual Report
Capitalization period of borrowing costs: the borrowing costs related to the assets that meet the capitalization conditions startto be capitalized when the expenditure to acquire and the borrowing costs have occurred and the construction or productionactivities required to make the assets reach the usable or marketable status have started. In case of abnormal interrupt of theassets meeting the capitalization conditions for more than 3 consecutive months in the construction or production process, thecapitalization of the borrowing costs is suspended; the borrowing costs stop capitalization when the construction orproduction assets meeting the capitalization conditions reach the usable or marketable status.Calculation method for capitalized amount of borrowing costs: when special borrowings are borrowed for construction orproduction of the assets meeting the capitalization conditions, the difference between the interest incurred in the period ofspecial borrowings and the interest income from the unused borrowing fund in the bank or the investment income oftemporary investment is deemed as the capitalized amount of the interest on the special borrowings. When general borrowingsare occupied for construction or production of assets meeting the capitalized conditions, the weighted average of theexpenditure to acquire exceeding the special borrowings in the cumulative expenditure to acquire is multiplied by theweighted average interest rate of the general borrowings occupied to calculate and determine the amount of interest to becapitalized on the general borrowings.
23. Right-of-use assets
The right-of-use assets refers to the right of the Company, as the lessee, to use the leased assets during the lease term.
(1) Initial measurement
On the beginning date of the lease term, the Company make the initial measurement of the right-of-use assets according to thecost. The cost includes the following four items: ① the initial measurement amount of lease liabilities; ② the amount of leasepayment paid on or before the beginning of the lease term. In case of a lease incentive, the amount of the granted leaseincentive shall be deducted; ③ The initial direct expenses incurred, i.e., the incremental costs incurred to complete the lease;
④ The expected costs for dismantling and removing the leased assets, restoring the site where the leased assets are located orrestoring the leased assets to the state agreed upon under the lease terms, except those costs for the production inventory.
(2) Subsequent measurement
After the beginning date of the lease term, the Company adopts the cost model for subsequent measurement of the right-of-useassets, that is, the right-of-use assets are measured at cost less accumulated depreciation and accumulated impairment losses.If the Company re-measures the lease liabilities in accordance with the relevant provisions of the lease standards, the bookvalue of the right-of-use assets shall be adjusted accordingly.Depreciation of right-of-use assetsFrom the beginning date of the lease term, the Company makes the depreciation of the right-of-use assets. The right-of-useassets are usually depreciated from the month when the lease term begins. The amount of depreciation accrued shall beincluded in the cost of relevant assets or current profit and loss according to the purpose of the right-of-use assets.When determining the depreciation method of the right-of-use assets, the Company makes a decision according to theexpected consumption mode of the economic benefits related to the right-of-use assets, and depreciates the right-of-use assetsby using the straight-line method.The Company follows the following principles when determining the depreciation life of the right-of-use assets: Where it canbe reasonably determined that the ownership of the leased assets can be acquired upon the expiration of the lease term,depreciation shall be calculated and withdrawn during the remaining service life of the leased assets; where it is impossible toreasonably determine that the ownership of the leased assets can be acquired upon the expiration of the lease term, thedepreciation shall be calculated and withdrawn within a shorter period of the lease term and the remaining service life of theleased assets.Impairment of right-of-use assetsIn case of impairment of the right-of-use assets, the Company will conduct subsequent depreciation according to the bookvalue of the right-of-use assets after deducting the impairment loss.
24. Intangible assets
(1) Valuation method, service life and impairment test
The Company's intangible assets mainly include land use rights, software, trademarks, patents, etc. The actual cost of thepurchased intangible assets shall be the actual cost and other relevant expenses. The actual cost of the intangible assetsinvested by the investors is determined according to the value stipulated in the investment contracts or agreements. If thevalue stipulated in the contracts or agreements is not fair, the actual cost is determined according to the fair value. Theintangible assets are amortized by the straight-line method. The classification and amortization period of the Company'sintangible assets are as follows:
2022 Full Annual Report
| Category | Amortization period |
| Land use right | 50 years |
| Patent | 10 years |
| Software | 3~5 years |
| Trademark and domain name | 10 years |
The Company’s land use right is amortized averagely according to the transfer life from the date of transfer; the Company'spatent right, non-patented technology, the right to use the special software and other intangible assets are amortized averagelyby the shortest of the estimated service life, the beneficial life stipulated in the contract and the effective life stipulated by law.The amortization amount shall be recorded into the current profit and loss or the cost of related assets according to itsbeneficiary object.The expected useful life and amortization methods of the intangible assets with limited useful life are reviewed at the end ofeach year and adjusted accordingly in case of change; the expected useful life of the intangible assets with uncertain usefullife are reviewed in each accounting period. If there is evidence that the service life of intangible assets is limited, the servicelife shall be estimated and amortized within the expected useful life.
(2) Accounting policy of expenditure for internal research and developmentThe expenditure of the Company's internal R&D projects is classified into the expenditure at the research stage and theexpenditure at the development stage according to its nature and great uncertainty of the intangible assets eventually formedby R&D activities.For intangible assets developed independently, the expenditure in the research stage shall be included in the current profit andloss when it occurs; The expenditures in the development stage shall be recognized as assets if they meet the followingconditions at the same time:
● Technically feasible to complete the intangible assets, so that they can be used or sold;
● It is intended to finish and use or sell the intangible assets;
● The products generated by the intangible assets can be sold or the intangible assets themselves can be sold;
● It is able to finish the development of the intangible assets, and able to use or sell the intangible assets, with the supportof sufficient technologies, financial resources and other resources; and
● The development expenditures of the intangible assets can be reliably measured.The expenses at the development stage not meeting above conditions are included in current profits and losses when obtained.The development expenses included in profits and losses in previous periods are not recognized as assets in subsequentperiods. The capitalized expenses at the development stage are listed as development expenses in the balance sheet andtransferred to intangible assets when the project reaches the intended usable state.If the expenditure at the research stage and the expenditure at the development stage cannot be distinguished, the R&Dexpenditure incurred is fully charged to the current profit and loss. The cost of intangible assets formed by internaldevelopment activities consists only of the total expenditure incurred between the point at which the conditions forcapitalization are met and the time at which the intangible assets reach their intended use. The expenditure that has beenexpensed and included in the profit and loss for the same intangible asset before reaching the capitalization conditions in thedevelopment process is no longer adjusted.
25. Long-term assets impairment
The Company checks the intangible assets determined for the long-term equity investment, fixed assets, construction inprogress and service life of the subsidiaries, joint ventures and cooperative enterprises on each balance sheet date. When thereare the following signs, indicating that the assets may be impaired, the Company will conduct impairment test; for intangibleassets with uncertain goodwill and beneficial life, impairment test shall be conducted at the end of each year whether there isany sign of impairment or not. Where it is difficult to test the recoverable amount of a single asset, the test shall be based onthe asset group or the combination of asset groups to which the asset belongs.After the impairment test, if the book value of the asset exceeds the recoverable amount, the difference is recognized as animpairment loss. Once the impairment loss of the said asset is recognized, it will not be carried back in the subsequentaccounting period. The recoverable amount of an asset is the higher of the net amount of the assets fair value subtracted bythe disposal costs and the present value of the expected future cash flow of the assets.Signs of impairment are as follows:
● The market price of assets has fallen sharply in the current period, and its decline is significantly higher than theexpected decline due to the passage of time or normal use;
2022 Full Annual Report
● The economic, technical or legal environment in which the enterprise operates and the market in which its assets are
located are undergoing or will undergo significant changes in the current period or in the near future, thus adverselyaffecting the enterprise;
● The market interest rate or other market return on investment has increased in the current period, which affects thediscount rate of the enterprise in calculating the present value of the expected future cash flow of assets, resulting in asignificant reduction in the recoverable amount of asset;
● There is evidence that the assets have become obsolete or its entity has been damaged;
● The assets have been or will be idle, terminated or disposed of in advance;
● The evidence in the internal report of the enterprise indicates that the economic performance of the assets has been orwill be lower than the expectation, such as the net cash flow created by the assets or the realized operating profit (or loss)is far lower (or higher) than the expected amount;
● Other signs indicating that the assets may have been impaired.
26. Goodwill
Goodwill refers to the difference between the cost of equity investment or the cost of business combination not under thesame control and the fair value share of the investee or the acquiree's identifiable net assets that should be enjoyed or acquiredin the business combination on the acquisition date or the acquisition purchase date.Goodwill related to subsidiaries is presented separately in the consolidated financial statements, and goodwill related to jointventures and cooperative enterprises is included in the book value of long-term equity investment.
27. Long-term unamortized expenses
The long-term unamortized expenses of the Company refer to the expenses that have been paid, but should be borne in thecurrent period and subsequent periods with the amortization period of more than one year (excluding one year). Suchexpenses are amortized on average in the benefit period. If a long-term unamortized expense item cannotbenefit a later accounting period, the amortized value of the item that has not been amortized istransferred to the current profit and loss.
28. Contract liabilities
Contract liabilities reflect the obligations of the Company to transfer goods to customers for consideration has been receivedor receivable from customers. If the customer has paid the contract consideration or the Company has obtained the right toreceive the contract consideration unconditionally before the Company transfers the goods to the customer, the contractliabilities shall be recognized according to the amount received or receivable at the earlier of the actual payment made by thecustomer and the due payment.
29. Employee compensation
(1) Short-term compensation accounting method
The short-term compensation mainly includes salary, bonus, allowances and subsidies, employee services and benefits,housing fund, labor union expenditure and personnel education fund, medical insurance premiums, industrial injury insurancepremium, birth insurance premium and other social insurance premiums. The short-term compensation actually happenedduring the accounting period when the staff offering the service for the Company shall be recognized as liabilities andincluded in the current gains and losses or relevant assets cost by the beneficiary object.
(2) Post-employment benefits accounting method
Post-employment benefits mainly include basic endowment insurance, unemployment insurance and enterprise annuitypayment and are classified as defined contribution plans according to the risks and obligations undertaken by the Company.The sinking funds made to a separate entity on the balance sheet date in exchange for services rendered by the employeeduring the accounting period shall be recognized as liabilities and included in the current gains and losses or relevant assetscost by the beneficiary object.
(3) Termination benefits accounting method
The Company puts forward compensation for an employee to terminate the labor relationship with the employee before expiryof the employee labor contract. When failing to unilaterally withdraw the dismission welfare due to termination of laborrelation plan or downsizing suggestions, or when recognizing the costs related to restructuring involving payment ofdimission welfare (whichever comes first), the Company recognizes the employee compensation liabilities from thedismission welfare and includes in current profit and loss. The compensation that is paid beyond a year is included in currentprofit and loss after discount.
2022 Full Annual Report
(4) Other long-term employee benefits accounting method
Other long-term employee benefits mainly include the long-term incentive plan and long-term benefits and shall be subject tothe accounting treatment according to relevant provisions in the defined contribution plans.
30. Lease liabilities
(1) Initial measurement
The Company initially measures the lease liabilities according to the present value of the unpaid lease payments at thebeginning date of the lease term.
1) Lease payments
Lease payments refer to the amounts paid by the Company to the lessor related to the right to use the leased assets during thelease term, including: ① Fixed payment and substantial fixed payment. In case of a lease incentive, the amount related tolease incentive shall be deducted; ② Variable lease payments depending on the index or ratio, which is determined at theinitial measurement according to the index or ratio on the beginning date of the lease term; ③ The exercise price of the calloption when the Company reasonably determines to exercise the call option; ④ The amount to be paid for exercising theoption to terminate the lease when the lease term reflects that the Company will exercise the option to terminate the lease; ⑤The amount expected to be paid according to the guarantee residual value provided by the Company.
2) Discount rate
When calculating the present value of lease payments, the Company adopts the interest rate implicit in lease as the discountrate, which refers to the interest rate that makes the sum of the present value of the lessor's lease receipts and the presentvalue of the unguaranteed residual value equal to the sum of the fair value of the leased asset and the lessor's initial directexpenses. If the Company is unable to determine the interest rate implicit in lease, the incremental loan interest rate shall beused as the discount rate. The incremental loan interest rate refers to the interest rate that the Company must pay to borrowfunds with similar mortgage conditions during similar periods in order to obtain assets of similar value to the right-of-useassets under similar economic environment. The interest rate is related to the following matters: ① The Company's ownsituation, that is, the group's solvency and credit status; ② The term of the “loan”, i.e. the lease term; ③ The amount of“borrowed” funds, i.e. the amount of lease liabilities; ④ “Mortgage conditions”, that is, the nature and quality of theunderlying assets; ⑤ Economic environment, including jurisdiction of the lessee, pricing currency, contract signing time, etc.Based on the bank loan interest rate, the Company obtains the incremental loan interest rate by adjusting the above factors.
(2) Subsequent measurement
After the beginning date of the lease term, the Company makes subsequent measurement of the lease liabilities according tothe following principles: ① When confirming the interest of the lease liabilities, increase the carrying amount of the leaseliabilities; ② When paying the lease payment, reduce the carrying amount of the lease liabilities; ③ When the lease paymentchanges due to revaluation or lease change, remeasure the carrying value of the lease liabilities.The Company calculates the interest expense of the lease liabilities in each period of the lease term according to the fixedperiodic interest rate and records it into the current profit and loss, except those that should be capitalized. Periodic interestrate refers to the discount rate adopted by the Company for the initial measurement of lease liabilities, or the revised discountrate adopted by the Company when the lease liabilities need to be remeasured according to the revised discount rate due to thechange of lease payment or lease change.
(3) Remeasurement
After the beginning date of the lease term, in case of the following circumstances, the Company shall re-measure the leaseliabilities according to the present value of the lease payment after the change, and adjust the book value of the right-of-useassets accordingly. If the book value of the right-of-use assets has been reduced to zero, but the lease liabilities still needs tobe further reduced, the Company will record the remaining amount into the current profit and loss. ① Substantial fixedpayment amount changes (in this case, the original discount rate will be adopted for discount); ② The expected amountpayable of the guarantee residual value changes (in this case, the original discount rate will be adopted for discount); ③ Theindex or rate used to determine the amount of lease payment changes (in this case, the revised discount rate will be adoptedfor discount); ④ The evaluation result of the call option changes (in this case, the revised discount rate will be adopted fordiscount); ⑤ The evaluation result or actual exercise of the renewal option or termination option changes (in this case, therevised discount rate will be adopted for discount).
31. Estimated liabilities
Any business related to contingencies such as external guarantee, pending litigation or arbitration, product quality assurance,staff reduction plan, loss contract, restructuring obligation, environmental pollution remediation, commitment and fixed assetdisposal obligation, if meeting all of the following conditions, is recognized as a liability: the obligation is the current
2022 Full Annual Report
obligation undertaken by the Company; performance of the obligation is likely to lead to the outflow of economic benefits;the amount of the obligation can be reliably measured.The estimated liabilities are initially recognized according to the best estimate number of the expenditure required to performrelevant current obligations with consideration to the contingency related risks, uncertainty, time value of money and otherfactors. If the time value of money has significant impact, the best estimate number is determined after discount of the futurecash flow. The book value of the estimated liabilities is reviewed on the balance sheet date and adjusted to reflect the currentbest estimate number if there is any change.The existence of a potential obligation for past transactions or events shall be substantiated by the occurrence or non-occurrence of future uncertainties; the Company will disclose the potential or current obligation a as contingent liability if theperformance of such obligation is not likely to result in the outflow of economic benefits from the Company or if the amountof such obligation cannot be reliably measured.
32. Share-based payment
The term share-based payment refers to a transaction in which the Company grants equity instruments or undertakes equity-instrument-based liabilities in return for services from employee or other parties. The share-based payments shall consist ofequity-settled share-based payments and cash-settled share-based payments.The equity-settled share-based payment in return for employee services is measured at the fair value of the equity instrumentsgranted to the employees. The amount of such fair value, under the situation that the rights can only be exercised after theservice is finished and the set performance is achieved within the waiting period, and basing on the optimum estimation forthe number of equity instrument which exercise rights within the waiting period, will be measured according to straight-linemethod and counted into relevant costs and expenses. The capital reserve will be increased correspondingly.The share-based payment settled by cash will be measured according to the fair value of the liability confirmed basing on theshares borne by the Company and other equity instruments. If the rights can be exercised immediately after being granted, thepayment will be counted into relevant costs or expenses at the fair value of the liabilities assumed and the liability will beincreased correspondingly. If the rights can only be exercised after the situation that service within the waiting period iscompleted and set performance is achieved, the service obtained at the current period, according to the fair value amount ofthe liability borne by the Company, and basing on the optimum estimation for the condition of exercising rights, will becounted into costs or expenses on each and every balance sheet date during the waiting period, and the liability will beincreased correspondingly.Each and every balance sheet date and settlement before relevant liability settlement, the fair value of liability will beremeasured, of which changes occurred will be counted into the current period.
33. Income
Accounting policies for income recognition and measurementThe Company’s operating income mainly includes income from selling commodities, income from offering labor and transferof asset use right.
1. Income recognition principle
The Company has fulfilled its contractual obligation to recognize income when the customer acquires control of the relevantgoods or services. Obtaining control of the relevant goods or services is the ability to dominate the use of the goods orprovision of services and gain almost all economic benefits from them.The Company evaluates the contract on the contract commencement date, identifies each individual performance obligationcontained in the contract, and determines whether each individual performance obligation is performed within a certain periodof time or at a certain point in time.If one of the following conditions is satisfied, the Company shall be deemed to have performed its performance obligationwithin a certain period of time; otherwise, it shall be deemed to have performed its performance obligation at a certain timepoint:
1) The customer obtains and consumes the economic benefits arising from the Company’s performance at the same time ofthe Company’s performance.
2) The customer can control the goods under construction during the Company’s performance.
3) The goods produced by the Company during the performance are of irreplaceable use, and the Company shall be entitled toreceive payment for the accumulated part of the performance completed so far during the whole contract period.For the performance obligations performed within a certain period of time, the Company shall recognize the income inaccordance with the performance progress during that period. If the performance schedule cannot be reasonably determined
2022 Full Annual Report
and the cost already incurred by the Company is expected to be compensated, the Company shall recognize the incomeaccording to the cost already incurred until the performance schedule can be reasonably determined.For performance obligations performed at a certain time point, the Company recognizes income at the time point when thecustomer acquires control of the relevant goods or services. In determining whether the customer has acquired control ofgoods or services, the Company considers the following indications:
1) The Company has the current collection right for the goods or services.
2) The Company has transferred legal ownership to the goods to the customer.
3) The Company has transferred the goods in kind to the customer.
4) The Company has transferred the main risks and rewards on the property in the goods to the customer;
5) The customer has accepted the goods or services, etc.
The Company's right to receive consideration for the transfer of goods or services to the customer is listed as the contractassets, and the contract assets are depreciated on the basis of expected credit losses. The rights that the Company owns andunconditionally to collect consideration from the customer are listed as receivables. The obligations of the Company totransfer goods or services to customers for which consideration has been received or receivable are listed as contractualliabilities.
2. Income measurement principle
1) If the contract contains two or more performance obligations, the Company shall, at the beginning of the contract,apportion the transaction price to each individual performance obligation according to the relative proportion of the individualselling price of the goods or services committed by each individual performance obligation, and measure the incomeaccording to the transaction price apportioned to each single performance obligation.
2) The transaction price means the amount of consideration that the Company is expected to be entitled to collect for thetransfer of goods or services to the customer, excluding payments collected on behalf of third parties. The transaction pricerecognized by the Company does not exceed the amount of accumulated recognized income which is highly unlikely to bematerially reversed when the relevant uncertainty is eliminated. The amount expected to be returned to the customer is notincluded in the transaction price as a liability.
3) If there is a material financing component in the contract, the Company shall determine the transaction price based on theamount payable in cash when the customer acquires control of the goods or services. The difference between the transactionprice and the contract consideration shall be amortized by the effective interest method during the contract period. On thecommencement date of the contract, if the Company expects that the interval between the customer's acquisition of control ofthe goods or services and the customer's payment of the price will not exceed one year, the material financing elements in thecontract will not be considered.
3. Specific methods of revenue recognition
1) Revenue recognized on time
The Company's sales of electrical products, accessories and materials belong to the performance obligation to be performed ata certain point in time.Recognition conditions of income from domestic goods: the Company has delivered the products to the customers accordingto the contract, the customers have received the goods, the payment for goods has been recovered or the receipt voucher hasbeen obtained, and the relevant economic benefits are likely to flow into the Company, the main risks and rewards of theownership of the goods have been transferred, and the legal ownership and control of the goods have been transferred.Recognition conditions of income from export goods: the Company has declared the products to leave the port according tothe contract, obtained the bill of lading, recovered the payment for goods or obtained the receipt voucher, and the relevanteconomic benefits are likely to flow into the Company, the main risks and rewards of the ownership of the goods have beentransferred, and the legal ownership and control of the goods have been transferred.
2) Revenue recognized according to performance progress
The Company's technical service income and business contracts between operating leases and customers belong to theperformance obligations performed within a certain period of time, and the income shall be recognized according to theperformance progress.
34. Government subsidies
The Company's government subsidies include financial allocations. The asset related government subsidies refer to thegovernment subsidies obtained by the Company and used for acquisition or construction or for formation of long-term assetsin other ways; the income related government subsidies refer to the government subsidies other than the asset related
2022 Full Annual Report
government subsidies. The government subsidies without subsidy objects specified in government documents shall be judgedby the Company according to the above principle, or classified into income related government subsidies as a whole if it isdifficult to judge.The government subsidies as the monetary assets are measured according to the amount received. For subsidies allocated inaccordance with fixed quota standards, or if there is evidence at the end of year that the Company can meet relevantconditions stipulated in the financial support policy and can be expected to receive the financial support fund, the governmentsubsidies are measured according to receivables. The government subsidies not as the monetary assets are measured accordingto the fair value, or measured according to the nominal amount (RMB 1) if the fair value cannot be obtained reliably.The government subsidies related to assets are recognized as deferred income and equally distributed and charged to thecurrent profit and loss in the service life of relevant assets.If the related asset is sold, transferred, scrapped or damaged before the end of the useful life, the deferred income balance notyet distributed is transferred in the profits and losses in the period of assets disposal.The income related government subsidies, if used to compensate for related costs or losses in subsequent periods, arerecognized as the deferred income and charged to the current profit and loss when related costs or losses are recognized. Thegovernment subsidies pertinent to the daily activities of the Company shall be included in other income or used to offsetrelevant costs and expenses according to the substance of the economic business. The government subsidies irrelevant withthe daily activities of the Company shall be included in non-operating revenues and expenditures.Where the Company has obtained discount interest on preferential loans, it shall distinguish between the two situations inwhich the financial department allocates discount interest funds to the lending bank and the financial department directlyallocates discount interest funds to the Company, and conduct accounting treatment according to the following principles:
● Where the financial department allocates the discount interest funds to the lending bank, and the lending bank provides
the loan to the Company at the preferential policy interest rate, the Company shall take the actual amount of the loanreceived as the entry value of the loan, and calculate the relevant borrowing costs according to the loan principal and thepreferential policy interest rate.
● Where the financial department directly allocates discount interest funds to the Company, the Company will write down
the corresponding discount interest against the relevant borrowing costs.If the government subsidy confirmed by the Company needs to be returned, the accounting treatment shall be carried out inaccordance with the following provisions in the current situation of the return:
1) The book value of related assets is adjusted if it is offset upon initial recognition.
2) For those with related deferred income, the book balance of related deferred income is written down and the excess isaccounted into the current profits and losses.
3) In the other cases, they are directly accounted into the current profits and losses.
35. Deferred income tax assets and deferred income tax liabilitiesThe Company’s deferred income tax assets and deferred income tax liabilities are calculated and recognized according to thedifference (temporary difference) between the tax base and book value of the assets and liabilities. For the deductible loss thatcan be carried forward to the subsequent year according to the tax law, the corresponding deferred income tax assets arerecognized. For the deductible temporary differences related to the initial recognition of the goodwill, the correspondingdeferred income tax liabilities are not recognized. For the temporary differences related to the initial recognition of the assetsor liabilities incurred in the transaction not for business combination that will not affect the accounting profits and income taxpayable (or deductible loss), the corresponding deferred income tax assets and liabilities are not recognized. The deferredincome tax assets and deferred income tax liabilities are measured on the balance sheet date according to the applicable taxrate in the period of expected recovery of relevant assets of liquidation of relevant liabilities.The Company recognizes the deferred income tax assets by deductible temporary differences, within the limit of the incometax payable that may be obtained in the future and used to offset the deductible temporary differences, the deductible loss andtax deduction.
36. Lease
(1) Accounting treatment method of operating lease
(1) Identification of lease
Lease refers to a contract in which the lessor transfers the right to use assets to the lessee for consideration within a certainperiod of time. On the commencement date of the contract, the Company evaluates whether the contract is a lease or includesa lease. If a party to the contract assigns the right to control the use of one or more identified assets within a certain period oftime in exchange for consideration, the contract is a lease or includes a lease. In order to determine whether the contract
2022 Full Annual Report
assigns the right to control the use of the identified assets within a certain period of time, the Company evaluates whether thecustomers in the contract is entitled to obtain almost all the economic benefits arising from the use of the identified assetsduring the use period, and to dominate the use of the identified assets during the use period.If the contract contains multiple separate leases at the same time, the Company will split the contract and conduct accountingtreatment for each separate lease. If the contract contains both leased and non-leased parts, the Company will split the leasedand non-leased parts for accounting treatment.
(2) The Company as the lessee
1) Lease recognition
On the beginning date of the lease term, the Company recognizes the right-of-use assets and lease liabilities. See Note IV “23.Right-of-use assets” and “30. Lease liabilities” for the recognition and measurement of right-of-use assets and lease liabilities.
2) Lease change
Lease change refers to the change of lease scope, lease consideration and lease term beyond the terms of the original contract,including adding or terminating the right to use one or more leased assets, extending or shortening the lease term specified inthe contract, etc. The effective date of the lease change refers to the date when both parties reach an agreement on the leasechange.If the lease changes and meets the following conditions, the Company will treat the lease change as a separate lease foraccounting: ① the lease change expands the lease scope or extends the lease term by adding the right to use one or moreleased assets; ② The increased consideration is equivalent to the amount of the separate price of the extended part of the leasescope or the extended part of the lease term as adjusted according to the conditions of the contract.If the lease change is not treated as a separate lease, on the effective date of the lease change, the Company will apportion theconsideration of the changed contract in accordance with the relevant provisions of the lease standards and re-determine thelease term after the change; The revised discount rate is adopted to discount the changed lease payment to re-measure thelease liabilities. When calculating the present value of the lease payment after the change, the Company adopts the interestrate implicit in lease during the remaining lease period as the discount rate; If the interest rate implicit in lease cannot bedetermined for the remaining lease period, the Company will adopt the lessee's incremental loan interest rate on the effectivedate of the lease change as the discount rate. With regard to the impact of the above adjustment of lease liabilities, theCompany shall distinguish the following circumstances for accounting treatment: ① if the lease scope is reduced or the leaseterm is shortened due to the lease change, the lessee shall reduce the book value of the right-of-use assets, and include therelevant gain or loss of lease under partial or complete termination into the current profit and loss. ② If the lease liabilitiesare re-measured due to other lease changes, the lessee shall adjust the book value of the right-of-use assets accordingly.
3) Short-term lease and low-value asset lease
The Company chooses not to recognize the right-of-use assets and lease liabilities for short-term lease with a lease term of nomore than 12 months and low-value asset lease with a lower value when the single leased asset is a brand-new asset. TheCompany will record the lease payment of short-term lease and low-value asset lease into the relevant asset cost or currentprofit and loss according to the straight-line method or other systematic and reasonable methods during each period of thelease term.
(3) The Company as the lessor
On the basis that (1) the evaluated contract is related to lease or includes a lease, the Company, as the lessor, divides the leaseinto finance lease and operating lease on the commencement date of the lease.If a lease substantially transfers almost all the risks and rewards related to the ownership of the leased assets, the lessorclassifies such lease as a finance lease, and other leases other than finance leases as operating leases.
(2) Accounting treatment method of finance lease
For a lease under one or more of the following circumstances, the Company usually classifies it as a finance lease: ① whenthe lease term expires, the ownership of the leased asset is transferred to the lessee; ② The lessee has the option to purchasethe leased asset, and the purchase price is low enough compared with fair value of the leased asset when the option isexpected to be exercised, so it can be reasonably determined that the lessee will exercise the option on the commencementdate of the lease; ③ Although the ownership of the asset is not transferred, the lease term accounts for most of the service lifeof the leased asset (no less than 75% of the service life of the leased asset); ④ On the commencement date of the lease, thepresent value of the lease receipts is almost equal to fair value of the leased asset (no less than 90% of the fair value of theleased asset) ; ⑤ The property of the leased asset is special. If no major transformation is made, only the lessee can use it. Incase of one or more of the following signs in a lease, the Company may also classify it as a finance lease: ① if the lesseecancels the lease, and the loss to the lessor caused by the thereby is borne by the lessee; ② The gains or losses arising from
2022 Full Annual Report
the fluctuation of the fair value of the residual value of assets belong to the lessee; ③ The lessee has the ability to continuethe lease for the next period at a rent far below the market level.
1) Finance lease accounting treatment
Initial measurementOn the beginning date of the lease term, the Company recognizes the finance lease receivables for the finance lease andterminates the recognition of the finance lease assets. When the Company initially measures the finance lease receivables, thenet amount of the lease investment is taken as the entry value of the finance lease receivables.The net amount of the lease investment is the sum of the unguaranteed residual value and the present value of the leasereceipts not received on the beginning date of the lease term discounted at the interest rate implicit in lease. Lease receiptsrefer to the amount that the lessor should collect from the lessee due to the assignment of the right to use the leased assetsduring the lease term, including: ① The fixed payment and substantial fixed payment to be paid by the lessee. In case of alease incentive, the amount related to lease incentive shall be deducted; ② The amount of variable lease payments dependingon the index or ratio, which is determined at the initial measurement according to the index or ratio on the beginning date ofthe lease term; ③ The exercise price of the call option, provided that it is reasonably determined that the lessee will exercisethe option; ④ The amount to be paid by the lessee to exercise the option to terminate the lease, provided that the lease termreflects that the lessee will exercise the termination option; ⑤ The guarantee residual value provided by the lessee, the partyrelated to the lessee and an independent third party with the financial ability to perform the guarantee obligation to the lessor.Subsequent measurementThe Company calculates and recognizes the interest income of each period within the lease term according to the fixedperiodic interest rate. The periodic interest rate refers to the implicit discount rate used to determine the net investment of thelease (in the case of sublease, if the interest rate implicit in lease of the sublease cannot be determined, the discount rate of theoriginal lease shall be adopted (adjusted according to the initial direct expenses related to the sublease)), or the change of thefinance lease is not accounted for as a separate lease, and if the change takes effect on the commencement date of the lease,the revised discount rate as determined according to relevant regulations is adopted when the lease will be classified asfinance lease conditions.Accounting treatment of lease changeIf the financial lease changes and meets the following conditions, the Company will treat the change as a separate lease foraccounting: ① the change expands the lease scope by adding the right to use one or more leased assets; ② The increasedconsideration is equivalent to the amount of the separate price of the extended part of the lease scope as adjusted according tothe conditions of the contract.If the change of a finance lease is not accounted for as a separate lease and meets the conditions that if the change takes effecton the commencement date of the lease and the lease will be classified as an operating lease, the Company will account for itas a new lease from the effective date of the lease change, and take the net investment of the lease before the effective date ofthe lease change as the book value of the leased asset.
2) Accounting treatment of operating lease
Treatment of rentDuring each period of the lease term, the Company adopts the straight-line method / other systematic and reasonable methodsto recognize the lease receipts of operating lease as rental income.Incentives providedIf the rent-free period is provided, the Company will apportioned the total rent according to the straight-line method / otherreasonable methods in the whole lease period without deducting the rent-free period, and the rent income shall be recognizedduring the rent-free period. If the Company bears some expenses of the lessee, the expenses shall be deducted from the totalrental income and apportioned within the lease term according to the balance of rental income after deduction.Initial direct costsThe initial direct expenses incurred by the Company in connection with the operating lease shall be capitalized to the cost ofthe underlying assets of the lease and included in the current profit and loss by stages on the same recognition basis as therental income during the lease term.DepreciationFor the fixed assets in the operating leased assets, the Company adopts the depreciation policy of similar assets fordepreciation; Other operating leased assets are amortized in systematic and reasonable methods.Variable lease payments
2022 Full Annual Report
The variable lease payments obtained by the Company related to operating lease that are not included in the lease receipts areincluded in the current profit and loss when actually incurred.Change of operating leaseIf the operating lease is changed, the Company will treat it as a new lease for accounting since the effective date of the change.The amount of advance receipts or lease receivables related to the lease before the change is regarded as the amount of newlease receipts.
37. Other significant accounting policy and accounting estimate
When preparing the financial statements, the management of the Company is required to use estimates and assumptions,which will have an impact on the application of accounting policies and the amount of assets, liabilities, income and expenses.The actual situation may differ from these estimates. The management of the Company continuously evaluates the judgmentof key assumptions and uncertainties involved in the estimates. The impact of changes in accounting estimates shall berecognized in the current and future periods of the changes.The following accounting estimates and key assumptions have significant risks that will lead to major adjustments to the bookvalue of assets and liabilities in the future periods:
(1) Financial assets impairment
The expected credit loss model is adopted to evaluate the impairment of financial instruments in the financial assetsimpairment, which requires major judgment and estimates and requires considering all reasonable and substantiatedinformation, including forward-looking information. In making such judgments and estimates, the Company deduces theexpected changes of the debtor's credit risks based on historical data combined with economic policies, macroeconomicindicators, industrial risks, external market environment, technical environment, changes in customer conditions and otherfactors.
(2) Provision for inventory impairment
Basis for determining the net realizable value of inventories: the net realizable value of merchandise inventory, materials forsale and other merchandise inventories directly used for sale is recognized by the amount of the estimated sale price of theinventories subtracted by the estimated selling expenses and related taxes; For the inventories held to perform the salescontract or labor contract, the net realizable value is calculated on the basis of contract price; If the number of the inventoriesheld by the enterprise is greater than the quantity ordered in the sales contract, the net realizable value of the excessiveinventories is calculated on the basis of general sale price.The method for inventory falling price reserves: it is priced according to the lower of the year-end inventory and the netrealizable value. At the end of the period, on the basis of a comprehensive inventory of the inventories, the inventory fallingprice reserves are withdrawn for the part of its cost is expected to be non-recoverable due to the inventory damage, full orpartial obsolescence or selling price below the cost.If the influence factors writing down the inventory value before have disappeared, resulting in the net realizable value of theinventories higher than the book value, the amount written down shall be restored and reversed within the originallywithdrawn amount of inventory falling price reserves and the amount reversed is included in current profit and loss.
(3) Accounting estimates of provision for impairment of goodwill
The Company conducts impairment test on goodwill every year. The recoverable amount of asset group or the combination ofasset groups containing goodwill is the present value of its estimated future cash flows, which need to be calculated usingaccounting estimates.If the management revises the gross margin ratio used in the calculation of future cash flows of asset group and thecombination of asset groups, and the revised gross margin ratio is lower than the current gross margin ratio, the Companyneeds to withdraw impairment provision for the increase of goodwill.If the management revises the pre-tax discount rate used for cash flow discount, and the revised gross margin ratio is higherthan the current gross margin ratio, the Company needs to withdraw impairment provision for the increase of goodwill.If the actual gross margin ratio or pre-tax discount rate is higher or lower than the management's estimates, the Companycannot reverse the originally accrued goodwill impairment loss.
(4) Accounting estimates of impairment provisions for fixed assets
The Company conducts impairment test on fixed assets such as houses, buildings, machinery and equipment with signs ofimpairment on the balance sheet date. The recoverable amount of fixed assets is the higher of the present value of itsestimated future cash flows and the net value of the fair value of the assets minus the disposal expense, which need to becalculated using accounting estimates.
2022 Full Annual Report
If the management revises the gross margin ratio used in the calculation of future cash flows of asset group and thecombination of asset groups, and the revised gross margin ratio is lower than the current gross margin ratio, the Companyneeds to withdraw impairment provision for the increase of fixed assets.If the management revises the pre-tax discount rate used for cash flow discount, and the revised gross margin ratio is higherthan the current gross margin ratio, the Company needs to withdraw impairment provision for the increase of fixed assets.If the actual gross margin ratio or pre-tax discount rate is higher or lower than the management's estimates, the Companycannot reverse the originally accrued impairment provisions for fixed assets.
(5) Accounting estimates for deferred income tax asset recognition
The estimation of deferred income tax assets requires an estimate of the taxable income and applicable tax rate of each year inthe future. The realization of deferred income tax assets depends on whether the Group is likely to obtain sufficient taxableincome in the future. Changes in future tax rates and the reversal time of temporary differences may also affect income taxexpenses (income) and the balance of deferred income tax. Changes in the above estimates may result in significantadjustments to deferred income tax.
(6) Useful life of fixed assets and intangible assets
The Company shall review the expected service life of fixed assets and intangible assets at least at the end of each year. Theestimated service life is determined by the management based on the historical experience of similar assets, with reference tothe estimates commonly used in the same industry and in combination with the expected technical updates. When there aresignificant changes in previous estimates, the depreciation expenses and amortization expenses for the future period shall beadjusted accordingly.
38. Significant accounting policy and accounting estimate change
(1) Changes in significant accounting policies
?Applicable □ Not applicable
| Content and reasons of changes in accounting policies | Approval procedures | Remark |
On December 30, 2021, the Ministry of Finance issued the Circular onIssuing the Interpretation of Accounting Standards for BusinessEnterprises No.15 (C.K. [2021] No. 35) (hereinafter referred to as the“Standard Interpretation No.15”). The Company has implemented theStandard Interpretation No.15 since January 1, 2022.
| On December 30, 2021, the Ministry of Finance issued the Circular on Issuing the Interpretation of Accounting Standards for Business Enterprises No.15 (C.K. [2021] No. 35) (hereinafter referred to as the “Standard Interpretation No.15”). The Company has implemented the Standard Interpretation No.15 since January 1, 2022. | The 13thMeeting of the Fifth Board of Directors |
(2) Significant accounting estimate change
□ Applicable ?Not applicable
VI. Tax
1. Main tax categories and tax rates
| Tax category | Taxation basis | Tax rate |
Added value tax
| Added value tax | Income from selling commodities | 13% |
Added value tax
| Added value tax | Technical service income | 6% |
Added value tax
| Added value tax | Income from house lease | 5% |
Urban maintenance and construction tax
| Urban maintenance and construction tax | Turnover tax payable | 7% |
Education surcharge
| Education surcharge | Turnover tax payable | 3% |
Surcharge for local education
| Surcharge for local education | Turnover tax payable | 2% |
Housing property tax
| Housing property tax | 70% of original value of the property | 1.2% |
Housing property tax
| Housing property tax | Rental income | 12% |
Land use tax
| Land use tax | Total land area | 5-10 yuan/m2 |
Corporate income tax
| Corporate income tax | Income tax payable | 15%, 25%, 20% |
If there are taxpayers with different enterprise income tax rates, the disclosure statement shall present
| Name of taxpayer | Income tax rate |
Hangzhou ROBAM Appliances Co., Ltd.
| Hangzhou ROBAM Appliances Co., Ltd. | 15% |
Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd.
| Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. | 15% |
2022 Full Annual Report
| Zhejiang Cooking Future Technology Co., Ltd. | 25% |
Beijing ROBAM Electric Appliance Sales Co., Ltd.
| Beijing ROBAM Electric Appliance Sales Co., Ltd. | 25% |
Shanghai ROBAM Electric Appliance Sales Co., Ltd.
| Shanghai ROBAM Electric Appliance Sales Co., Ltd. | 25% |
Hangzhou Mingqi Electric Co., Ltd.
| Hangzhou Mingqi Electric Co., Ltd. | 25% |
Dize Home Appliances Trading (Shanghai) Co., Ltd.
| Dize Home Appliances Trading (Shanghai) Co., Ltd. | 25% |
Hangzhou ROBAM Fuchuang Investment Management Co.,Ltd.
| Hangzhou ROBAM Fuchuang Investment Management Co., Ltd. | 20% |
Hangzhou Jinhe Electric Appliances Co., Ltd
| Hangzhou Jinhe Electric Appliances Co., Ltd | 25% |
2. Tax preference
Preferential policies for income taxOn December 1, 2020, the Science Technology Department of Zhejiang Province, Zhejiang Provincial Department of Finance,Zhejiang Provincial Tax Service of State Taxation Administration and Zhejiang Local Taxation Bureau jointly issued a high-tech enterprise certificate (No. GR202033007142) and the Company passed the high-tech enterprise identification for 3 years.According to relevant regulations, after passing the high-tech enterprise identification, the Company can enjoy the relevantpreferential policies of the state on high-tech enterprises for three consecutive years (i.e., the income tax preference periodfrom January 1, 2020 to December 31, 2022), and the enterprise income tax shall be levied at the rate of 15%.Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. (hereinafter referred to as Shengzhou Kinde), a subsidiary of theCompany, obtained the high-tech enterprise certificate (No. GR202233010421) jointly issued by the Science TechnologyDepartment of Zhejiang Province, Zhejiang Provincial Department of Finance and Zhejiang Provincial Tax Service of StateTaxation Administration on December 24, 2022 and passed the high-tech enterprise identification. The Company can enjoythe relevant preferential policies of the state on high-tech enterprises for three consecutive years (i.e., the income taxpreference period from January 1, 2022 to December 31, 2024), and the enterprise income tax shall be levied at the rate of15%.According to the Announcement [2021] No. 8 of the State Taxation Administration, Hangzhou ROBAM Fuchuang InvestmentManagement Co., Ltd., a subsidiary of the Company, includes the part of the annual taxable income tax of small meager-profitenterprises that does not exceed 1 million yuan into the taxable income at a reduced rate of 12.5%, and the enterprise incometax shall be paid at the rate of 20%.On September 22, 2022, according to the Announcement of the Ministry of Finance, the State Administration of Taxation, andthe Ministry of Science and Technology on Increasing Support for the Pre-tax Deduction for Technological Innovation(Announcement No. 28 of the Ministry of Finance, the State Administration of Taxation, and the Ministry of Science andTechnology in 2022), for the equipment and appliances newly purchased by high-tech enterprises from October 1, 2022 toDecember 31, 2022, the full amount of taxable income is allowed to be deducted in a lump sum, and a 100% additionaldeduction before tax is allowed. The Company and its subsidiary Shengzhou Kinde are subject to the preferential tax policiesof corporate income tax.
● Preferential policies for added-value tax
According to the Notice of the State Taxation Administration of the Ministry of Finance on the Value-added Tax Policy forSoftware Products (C.S. [2011] No. 100), the Company's embedded software sales products enjoy the value-added taxrefunded as soon as they are collected.
● Preferential tax policies for land use tax
According to Article 7 of the “Decision of the State Council on Amending theInterim Regulations of the People's Republic ofChina Governing Land Use Tax on Cities and Towns” (Order No. 483 of the State Council of the People's Republic of China),the Company enjoys preferential policies for reducing or exempting land use tax.VII. Notes to items in consolidated financial statements
1. Monetary capital
Unit: yuan
| Item | Ending balance | Beginning balance |
Cash on hand
| Cash on hand | 85,806.05 | 80,944.99 |
Bank deposit
| Bank deposit | 5,194,887,841.18 | 3,718,304,060.33 |
Other monetary capital
| Other monetary capital | 97,789,023.71 | 83,816,341.23 |
Total
| Total | 5,292,762,670.94 | 3,802,201,346.55 |
2022 Full Annual Report
Note: ETC cash deposit of RMB 13,000.00 in bank deposits at the end of the year is restricted funds; Other monetary capitalat the year end is RMB 97,789,023.71, of which the L/C deposit of RMB 76,092,305.89, bill acceptance deposit of RMB20,243,023.31 are limited funds, Alipay balance and Wechat balance of RMB 1,453,694.51 are non-limited funds that can bewithdrawn at any time.Use of restricted monetary funds
| Item | Year-end balance | Year-beginning balance |
| Letter of guarantee and bill acceptance security deposit | 96,335,329.20 | 82,212,526.20 |
| ETC deposit | 13,000.00 | |
| Total | 96,348,329.20 | 82,212,526.20 |
2. Trading financial assets
Unit: yuan
| Item | Ending balance | Beginning balance |
| Financial assets measured with fair value and with the changes included in current profit and loss | 2,511,844,508.00 | 2,872,312,500.00 |
| Where: | ||
| Bank financial products | 2,511,844,508.00 | 2,872,312,500.00 |
| Total | 2,511,844,508.00 | 2,872,312,500.00 |
3. Notes receivable
(1) Classified presentation of notes receivable
Unit: yuan
| Item | Ending balance | Beginning balance |
Bank acceptance bill
| Bank acceptance bill | 609,791,571.72 | 862,581,158.56 |
Trade acceptance
| Trade acceptance | 271,981,769.99 | 467,612,736.26 |
Total
| Total | 881,773,341.71 | 1,330,193,894.82 |
Unit: yuan
| Category | Ending balance | Beginning balance | ||||||||
| Book balance | Provision for bad debt | Book value | Book balance | Provision for bad debt | Book value | |||||
| Amount | Proportion | Amount | Accruing proportion | Amount | Proportion | Amount | Accruing proportion | |||
Notesreceivableofprovisionfor baddebt bysingle item
| Notes receivable of provision for bad debt by single item | 12,553,205.80 | 1.39% | 6,659,943.22 | 53.05% | 5,893,262.58 | 269,463,729.35 | 17.09% | 224,066,803.50 | 83.15% | 45,396,925.85 |
Where:
| Where: |
Notesreceivableofprovisionfor baddebt bycombination
| Notes receivable of provision for bad debt by combination | 889,884,737.69 | 98.61% | 14,004,658.56 | 1.57% | 875,880,079.13 | 1,307,018,853.73 | 82.91% | 22,221,884.76 | 1.70% | 1,284,796,968.97 |
Where:
| Where: |
Banker'sacceptancebill
| Banker's acceptance bill | 609,791,571.72 | 67.57% | 609,791,571.72 | 862,581,158.56 | 54.72% | 862,581,158.56 |
Commercialacceptancebill
| Commercial acceptance bill | 280,093,165.97 | 31.04% | 14,004,658.56 | 5.00% | 266,088,507.41 | 444,437,695.17 | 28.19% | 22,221,884.76 | 5.00% | 422,215,810.41 |
Total
| Total | 902,437,943.49 | 100.00% | 20,664,601.78 | 2.29% | 881,773,341.71 | 1,576,482,583.08 | 100.00% | 246,288,688.26 | 15.62% | 1,330,193,894.82 |
2022 Full Annual Report
Provision for bad debt by single item:
Unit: yuan
| Name | Ending balance | |||
| Book balance | Provision for bad debt | Accruing proportion | Reasons for provision | |
Unit 1
| Unit 1 | 9,336,504.18 | 4,668,252.09 | 50.00% |
Unit 2
| Unit 2 | 1,300,000.00 | 650,000.00 | 50.00% |
Unit 3
| Unit 3 | 1,042,901.00 | 730,030.70 | 70.00% |
Unit 4
| Unit 4 | 750,731.20 | 525,511.84 | 70.00% |
Unit 5
| Unit 5 | 123,069.42 | 86,148.59 | 70.00% |
Total
| Total | 12,553,205.80 | 6,659,943.22 |
Provision for bad debt by combination:
Unit: yuan
| Name | Ending balance | ||
| Book balance | Provision for bad debt | Accruing proportion | |
Banker's acceptance billcombination
| Banker's acceptance bill combination | 609,791,571.72 |
Commercial acceptance billcombination
| Commercial acceptance bill combination | 280,093,165.97 | 14,004,658.56 | 5.00% |
Total
| Total | 889,884,737.69 | 14,004,658.56 |
(2) Provision, recovery or reversal of bad debt reserves in the current periodProvision for bad debts in current period:
Unit: yuan
| Category | Beginning balance | Changes in amount in current period | Ending balance | |||
| Provision | Recovered or reversed | Canceled after verification | Other | |||
Commercialacceptance bill
| Commercial acceptance bill | 246,288,688.26 | -225,624,086.48 | 20,664,601.78 |
Total
| Total | 246,288,688.26 | -225,624,086.48 | 20,664,601.78 |
(3) Notes transferred to accounts receivable by the Company at the end of the period due to failure ofthe drawer to perform
Unit: yuan
| Item | Amount transferred to accounts receivable at the end of the period |
| Trade acceptance | 329,189,770.19 |
| Total | 329,189,770.19 |
4. Accounts receivable
(1) Classified disclosure of accounts receivable
Unit: yuan
| Category | Ending balance | Beginning balance | ||||||||
| Book balance | Provision for bad debt | Book value | Book balance | Provision for bad debt | Book value | |||||
| Amount | Proportion | Amount | Accruing proportion | Amount | Proportion | Amount | Accruing proportion | |||
Accounts receivableof provision for baddebt by single item
| Accounts receivable of provision for bad debt by single item | 1,639,679,315.79 | 58.71% | 1,030,780,696.17 | 62.86% | 608,898,619.62 | 630,075,052.06 | 28.04% | 553,584,090.07 | 87.86% | 76,490,961.99 |
Where:
| Where: |
2022 Full Annual Report
| Provision for bad debt by single item | 1,639,679,315.79 | 58.71% | 1,030,780,696.17 | 62.86% | 608,898,619.62 | 630,075,052.06 | 28.04% | 553,584,090.07 | 87.86% | 76,490,961.99 |
Accounts receivableof provision for baddebt by combination
| Accounts receivable of provision for bad debt by combination | 1,153,269,565.99 | 41.29% | 72,561,356.67 | 6.29% | 1,080,708,209.32 | 1,617,347,143.15 | 71.96% | 96,145,244.24 | 5.94% | 1,521,201,898.91 |
Where:
| Where: |
Accounts receivableof provision for baddebt by expectedcredit losscombination basedon aging features
| Accounts receivable of provision for bad debt by expected credit loss combination based on aging features | 1,153,269,565.99 | 41.29% | 72,561,356.67 | 6.29% | 1,080,708,209.32 | 1,617,347,143.15 | 71.96% | 96,145,244.24 | 5.94% | 1,521,201,898.91 |
Total
| Total | 2,792,948,881.78 | 100.00% | 1,103,342,052.84 | 39.50% | 1,689,606,828.94 | 2,247,422,195.21 | 100.00% | 649,729,334.31 | 28.91% | 1,597,692,860.90 |
Provision for bad debt by single item:
Unit: yuan
| Name | Ending balance | |||
| Book balance | Provision for bad debt | Accruing proportion | Reasons for provision | |
Unit 1
| Unit 1 | 657,344,204.78 | 657,344,204.78 | 100.00% | Difficult to recover |
Unit 2
| Unit 2 | 607,891,265.65 | 182,367,379.70 | 30.00% | Debt overdue |
Unit 3
| Unit 3 | 112,811,043.19 | 42,342,003.78 | 37.53% | Debt overdue |
Unit 4
| Unit 4 | 80,690,330.78 | 56,483,231.54 | 70.00% | Debt default |
Unit 5
| Unit 5 | 27,754,259.57 | 18,956,340.20 | 68.30% | Debt default |
Unit 6
| Unit 6 | 24,817,347.78 | 4,963,469.56 | 20.00% | Debt overdue |
Unit 7
| Unit 7 | 21,370,090.54 | 14,959,063.38 | 70.00% | Debt default |
Unit 8
| Unit 8 | 20,263,294.09 | 5,751,727.45 | 28.38% | Debt overdue |
Unit 9
| Unit 9 | 16,210,905.78 | 11,325,134.05 | 69.86% | Debt default |
Unit 10
| Unit 10 | 14,139,851.56 | 8,965,986.59 | 63.41% | Debt default |
Unit 11
| Unit 11 | 10,185,685.90 | 2,157,682.25 | 21.18% | Debt overdue |
Unit 12
| Unit 12 | 9,475,265.17 | 6,632,685.62 | 70.00% | Debt default |
Unit 13
| Unit 13 | 8,440,716.52 | 4,288,717.32 | 50.81% | Debt default |
Unit 14
| Unit 14 | 8,009,318.82 | 2,345,903.11 | 29.29% | Debt overdue |
Unit 15
| Unit 15 | 4,025,730.93 | 2,818,011.65 | 70.00% | Debt default |
Unit 16
| Unit 16 | 16,250,004.73 | 9,079,155.19 | 55.87% | It is expected that there is recovery risk |
Total
| Total | 1,639,679,315.79 | 1,030,780,696.17 |
Note: Affected by national policies in the real estate industry, many real estate developers have financial deterioration anddebt defaults. The Company actively collects claims receivable or requires them to repay the debts with other assets. This year,the Company has carried out debt restructuring of claims receivable with real estate customers, and made the bad debtprovision at the expected credit loss rate of 20% for the part of the year-end balance of accounts receivable for which a debtrepayment agreement has been signed. See “Other important issues 2. Corporate debt restructuring matters” for details.Provision for bad debt by combination: accounts receivable of provision for bad debt by expected credit loss combinationbased on aging features
Unit: yuan
| Name | Ending balance | ||
| Book balance | Provision for bad debt | Accruing proportion | |
Within 1 year
| Within 1 year | 1,009,720,783.90 | 50,485,305.60 | 5.00% |
1~2 years
| 1~2 years | 112,392,592.96 | 11,239,259.29 | 10.00% |
2~3 years
| 2~3 years | 20,956,595.32 | 4,191,319.06 | 20.00% |
3~4 years
| 3~4 years | 6,123,348.00 | 3,061,674.01 | 50.00% |
4~5 years
| 4~5 years | 2,462,235.47 | 1,969,788.37 | 80.00% |
More than 5 years
| More than 5 years | 1,614,010.34 | 1,614,010.34 | 100.00% |
2022 Full Annual Report
| Total | 1,153,269,565.99 | 72,561,356.67 |
Disclosure by aging
Unit: yuan
| Aging | Book balance |
Within 1 year (including 1 year)
| Within 1 year (including 1 year) | 1,414,611,796.19 |
Within 1 year (including 1 year)
| Within 1 year (including 1 year) | 1,414,611,796.19 |
1~2 years
| 1~2 years | 1,310,592,988.91 |
2~3 years
| 2~3 years | 52,140,042.25 |
More than 3 years
| More than 3 years | 15,604,054.43 |
3~4 years
| 3~4 years | 8,167,899.77 |
4~5 years
| 4~5 years | 5,260,654.01 |
More than 5 years
| More than 5 years | 2,175,500.65 |
Total
| Total | 2,792,948,881.78 |
(2) Provision, recovery or reversal of bad debt reserves in the current periodProvision for bad debts in current period:
Unit: yuan
| Category | Beginning balance | Changes in amount in current period | Ending balance | |||
| Provision | Recovered or reversed | Canceled after verification | Other | |||
Provision forbad debt ofaccountsreceivable
| Provision for bad debt of accounts receivable | 649,729,334.31 | 478,552,796.11 | 24,667,546.54 | 272,531.04 | 1,103,342,052.84 |
Total
| Total | 649,729,334.31 | 478,552,796.11 | 24,667,546.54 | 272,531.04 | 1,103,342,052.84 |
(3) Receivables with top 5 ending balances by debtor
Unit: yuan
| Unit name | Ending balance of accounts receivable | Proportion in total ending balance of accounts receivable | Ending balance of bad debt provision |
Unit 1
| Unit 1 | 607,712,069.65 | 21.76% | 182,313,620.90 |
Unit 2
| Unit 2 | 452,376,997.98 | 16.13% | 452,376,997.98 |
Unit 3
| Unit 3 | 201,930,395.59 | 7.20% | 10,096,519.78 |
Unit 4
| Unit 4 | 95,125,955.20 | 3.39% | 95,125,955.20 |
Unit 5
| Unit 5 | 62,543,420.42 | 2.23% | 62,543,420.42 |
Total
| Total | 1,419,688,838.84 | 50.84% |
(4) Amount of assets and liabilities formed by transferring accounts receivable and continuinginvolvement
Unit: yuan
5. Advances to suppliers
(1) Presentation of advances to suppliers by aging
Unit: yuan
| Asset item | Year-end balance | Liability item | Year-end balance |
| Accounts receivable with recourse factoring | 573,429.99 | Short-term borrowing | 573,429.99 |
2022 Full Annual Report
| Aging | Ending balance | Beginning balance | ||
| Amount | Proportion | Amount | Proportion | |
Within 1 year
| Within 1 year | 176,828,710.59 | 99.62% | 129,823,235.88 | 98.98% |
1~2 years
| 1~2 years | 331,685.80 | 0.19% | 1,308,725.59 | 1.00% |
2~3 years
| 2~3 years | 309,887.50 | 0.17% | 30,069.48 | 0.02% |
More than 3 years
| More than 3 years | 30,069.48 | 0.02% |
Total
| Total | 177,500,353.37 | 131,162,030.95 |
(2) Advances to suppliers with top 5 ending balances by prepayment object
The total amount of advances to suppliers with top 5 ending balances by prepayment object in the current year was RMB94,603,621.04, accounting for 53.30% of total number of ending balance of advances to suppliers.
6. Other receivables
Unit: yuan
| Item | Ending balance | Beginning balance |
Other receivables
| Other receivables | 80,429,057.84 | 73,487,381.46 |
Total
| Total | 80,429,057.84 | 73,487,381.46 |
(1) Other receivables
1) Other receivables classified by nature
Unit: yuan
| Nature of payment | Ending book balance | Beginning book balance |
Deposit and margin
| Deposit and margin | 38,184,552.92 | 48,646,642.67 |
Collection by third party
| Collection by third party | 50,695,825.81 | 39,389,486.99 |
Imprest
| Imprest | 2,601,040.33 | 2,785,329.49 |
Withheld amount
| Withheld amount | 4,898,268.76 | 3,224,265.49 |
Other
| Other | 519,033.02 | 57,881.26 |
Total
| Total | 96,898,720.84 | 94,103,605.90 |
2) Provision for bad debt
Unit: yuan
| Provision for bad debt | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit losses over the next 12 months | Expected credit loss for the entire duration (no credit impairment) | Expected credit loss for the entire duration (credit impairment has occurred) |
Balance on January 1,2022
| Balance on January 1, 2022 | 20,616,224.44 | 20,616,224.44 |
Balance on January 1,2022 in current period
| Balance on January 1, 2022 in current period |
Withdrawn in currentperiod
| Withdrawn in current period | -4,146,561.44 | -4,146,561.44 |
Balance on December31, 2022
| Balance on December 31, 2022 | 16,469,663.00 | 16,469,663.00 |
Large book balance change in the current period of provision for loss
□ Applicable ?Not applicable
Disclosure by aging
Unit: yuan
| Aging | Book balance |
2022 Full Annual Report
| Within 1 year (including 1 year) | 70,253,063.08 |
Within 1 year (including 1 year)
| Within 1 year (including 1 year) | 70,253,063.08 |
1~2 years
| 1~2 years | 9,080,735.82 |
2~3 years
| 2~3 years | 4,279,573.74 |
More than 3 years
| More than 3 years | 13,285,348.20 |
3~4 years
| 3~4 years | 2,965,976.80 |
4~5 years
| 4~5 years | 3,046,691.50 |
More than 5 years
| More than 5 years | 7,272,679.90 |
Total
| Total | 96,898,720.84 |
3) Provision, recovery or reversal of bad debt reserves in the current periodProvision for bad debts in current period:
Unit: yuan
| Category | Beginning balance | Changes in amount in current period | Ending balance | |||
| Provision | Recovered or reversed | Canceled after verification | Other | |||
Provision forbad debt ofotherreceivables
| Provision for bad debt of other receivables | 20,616,224.44 | -4,146,561.44 | 16,469,663.00 |
Total
| Total | 20,616,224.44 | -4,146,561.44 | 16,469,663.00 |
4) Other receivables with top 5 ending balances by debtor
Unit: yuan
| Unit name | Nature of payment | Ending balance | Aging | Proportion in total other ending balance receivable | Ending balance of bad debt provision |
Unit 1
| Unit 1 | Collection by third party, unit security deposit | 33,940,660.20 | 0~5 years and above | 35.03% | 1,807,033.01 |
Unit 2
| Unit 2 | Collection by third party | 9,589,038.27 | Within 1 year | 9.90% | 479,451.91 |
Unit 3
| Unit 3 | Unit security deposit | 4,928,000.00 | More than 5 years | 5.09% | 4,928,000.00 |
Unit 4
| Unit 4 | Collection by third party, unit security deposit | 4,648,009.63 | 0~5 years | 4.80% | 287,400.48 |
Unit 5
| Unit 5 | Withheld amount | 3,004,085.55 | Within 1 year | 3.10% | 150,204.28 |
Total
| Total | 56,109,793.65 | 57.92% | 7,652,089.68 |
7. Inventory
(1) Inventory classification
Unit: yuan
| Item | Ending balance | Beginning balance | ||||
| Book balance | Inventory falling price reserves or provision for impairment of contract performance costs | Book value | Book balance | Inventory falling price reserves or provision for impairment of contract performance costs | Book value | |
| Semi-finished products shipped in | 946,934,786.68 | 34,166,612.43 | 912,768,174.25 | 971,605,585.98 | 51,220,027.98 | 920,385,558.00 |
2022 Full Annual Report
| transit | ||||||
| Merchandise inventory | 433,960,199.87 | 38,422,564.56 | 395,537,635.31 | 529,957,331.64 | 28,819,579.60 | 501,137,752.04 |
| Raw materials | 124,228,344.80 | 124,228,344.80 | 161,795,174.65 | 161,795,174.65 | ||
| Low priced and easily worn articles and wrappage | 22,715,660.50 | 22,715,660.50 | 23,495,275.67 | 23,495,275.67 | ||
| Work in process | 110,725,274.36 | 110,725,274.36 | 116,573,107.77 | 116,573,107.77 | ||
| Contract performance cost | 44,135,708.88 | 44,135,708.88 | 48,844,764.12 | 48,844,764.12 | ||
| Total | 1,682,699,975.09 | 72,589,176.99 | 1,610,110,798.10 | 1,852,271,239.83 | 80,039,607.58 | 1,772,231,632.25 |
(2) Inventory falling price reserves and provision for impairment of contract performance costs
Unit: yuan
| Item | Beginning balance | Amount increased in current period | Amount decreased in current period | Ending balance | ||
| Provision | Other | Reversed or written off | Other | |||
Semi-finishedproductsshipped intransit
| Semi-finished products shipped in transit | 51,220,027.98 | -12,081,017.47 | 4,972,398.08 | 34,166,612.43 |
Merchandiseinventory
| Merchandise inventory | 28,819,579.60 | 13,747,842.79 | 4,144,857.83 | 38,422,564.56 |
Total
| Total | 80,039,607.58 | 1,666,825.32 | 9,117,255.91 | 72,589,176.99 |
8. Other current assets
Unit: yuan
| Item | Ending balance | Beginning balance |
Pending deduct VAT on purchase
| Pending deduct VAT on purchase | 333,014.51 | 3,442,185.74 |
Prepaid tax
| Prepaid tax | 1,334.25 | 668,243.42 |
Total
| Total | 334,348.76 | 4,110,429.16 |
9. Long-term equity investment
Unit: yuan
| Invested unit | Beginning balance (book value) | Increase or decrease in current period | Ending balance (book value) | Balance of impairment provision at the end of period | |||||||
| Further investment | Capital reduction | Investment gains and losses recognized by the equity method | Adjustment of other comprehensive income | Changes in other equity | Declared payment of cash dividends or profits | Provision for impairment | Other | ||||
I. Joint enterprise
I. Joint enterpriseDe DietrichTrade(Shanghai)Co., Ltd.
| De Dietrich Trade (Shanghai) Co., Ltd. | 3,661,700.03 | 162,760.00 | 3,824,460.03 |
Subtotal
| Subtotal | 3,661,700.03 | 162,760.00 | 3,824,460.03 |
II. Joint venture
II. Joint ventureZhejiang
| Zhejiang | 1,743,4 | - | 1,065,99 |
2022 Full Annual Report
| Tingshuo Brand Operation Management Co., Ltd. | 29.88 | 677,436.57 | 3.31 |
ShaoxingShuaigeKitchen andBathroomTechnologyCo., Ltd.*1
| Shaoxing Shuaige Kitchen and Bathroom Technology Co., Ltd.*1 | 4,140,000.00 | -311,947.72 | 3,828,052.28 |
Subtotal
| Subtotal | 1,743,429.88 | 4,140,000.00 | -989,384.29 | 4,894,045.59 |
Total
| Total | 5,405,129.91 | 4,140,000.00 | -826,624.29 | 8,718,505.62 |
Other description:
*1. The Company's subsidiary, Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. contributed to establish ShaoxingShuaige Kitchen and Bathroom Technology Co., Ltd. on March 9, 2022, holding 40% of the shares. Such company is now inthe preparatory period.
2022 Full Annual Report
10. Other equity instrument investments
Unit: yuan
| Item | Ending balance | Beginning balance |
Suzhou Industrial Park Ruican InvestmentEnterprise (limited partnership)
| Suzhou Industrial Park Ruican Investment Enterprise (limited partnership) |
Shanghai MXCHIP Information TechnologyCo., Ltd.
| Shanghai MXCHIP Information Technology Co., Ltd. | 2,116,023.22 | 2,116,023.22 |
Total
| Total | 2,116,023.22 | 2,116,023.22 |
Separate disclosure of the current period of non-transactional equity instruments
Unit: yuan
| Item name | Recognized dividend income | Aggregate gains | Aggregate losses | Amount of other comprehensive income transferred to retained earnings | Cause for designation to measure at fair value of which changes are recorded into other comprehensive income | Causes for carryforward retained earnings of other comprehensive income |
SuzhouIndustrial ParkRuicanInvestmentEnterprise(limitedpartnership)
| Suzhou Industrial Park Ruican Investment Enterprise (limited partnership) | 100,000,000.00 | Held for non-trading purposes | — |
ShanghaiMXCHIPInformationTechnology Co.,Ltd.
| Shanghai MXCHIP Information Technology Co., Ltd. | 17,832,510.78 | Held for non-trading purposes | — |
Total
| Total | 117,832,510.78 | — | — |
11. Investment properties
(1) Investment properties using cost measurement mode
?Applicable □ Not applicable
Unit: yuan
| Item | Houses and buildings | Land use right | Total |
I. Original book value
| I. Original book value |
1. Beginning balance
| 1. Beginning balance | 11,676,710.68 | 11,676,710.68 |
2. Amount increased in current period*1
| 2. Amount increased in current period*1 | 56,957,445.43 | 1,062,744.00 | 58,020,189.43 |
(1) Purchased
| (1) Purchased |
(2) Transfer from inventory/fixed
assets/construction in progress
| (2) Transfer from inventory/fixed assets/construction in progress | 56,957,445.43 | 1,062,744.00 | 58,020,189.43 |
(3) Increase by business combination
| (3) Increase by business combination |
3. Amount decreased in current period
| 3. Amount decreased in current period | 6,992,399.10 | 6,992,399.10 |
(1) Disposal
| (1) Disposal |
(2) Other transfer-out
| (2) Other transfer-out | 6,992,399.10 | 6,992,399.10 |
4. Ending balance
| 4. Ending balance | 61,641,757.01 | 1,062,744.00 | 62,704,501.01 |
II. Accumulated depreciation and amortization
| II. Accumulated depreciation and amortization |
2022 Full Annual Report
| 1. Beginning balance | 590,814.61 | 590,814.61 |
2. Amount increased in current period
| 2. Amount increased in current period | 6,277,447.75 | 336,535.60 | 6,613,983.35 |
(1) Accrual or amortization
| (1) Accrual or amortization | 1,813,454.87 | 15,941.16 | 1,829,396.03 |
(2) Other transfer-in
| (2) Other transfer-in | 4,463,992.88 | 320,594.44 | 4,784,587.32 |
3. Amount decreased in current period
| 3. Amount decreased in current period | 387,495.49 | 387,495.49 |
(1) Disposal
| (1) Disposal |
(2) Other transfer-out
| (2) Other transfer-out | 387,495.49 | 387,495.49 |
4. Ending balance
| 4. Ending balance | 6,480,766.87 | 336,535.60 | 6,817,302.47 |
III. Provision for impairment
| III. Provision for impairment |
1. Beginning balance
| 1. Beginning balance |
2. Amount increased in current period
| 2. Amount increased in current period |
(1) Provision
| (1) Provision |
3. Amount decreased in current period
| 3. Amount decreased in current period |
(1) Disposal
| (1) Disposal |
(2) Other transfer-out
| (2) Other transfer-out | 387,495.49 | 387,495.49 |
4. Ending balance
| 4. Ending balance |
IV. Book value
| IV. Book value |
1. Ending book value
| 1. Ending book value | 55,160,990.14 | 726,208.40 | 55,887,198.54 |
2. Beginning book value
| 2. Beginning book value | 11,085,896.07 | 11,085,896.07 |
*1. The other increase in investment properties this year comes from the completion of construction of the new plant ofShengzhou Kinde, a subsidiary of the Company. The company has relocated all of its facilities to the new plant and rented outthe original plant and part of the new plant.
12. Fixed assets
Unit: yuan
| Item | Ending balance | Beginning balance |
Fixed assets
| Fixed assets | 1,622,235,227.74 | 1,179,306,020.01 |
Total
| Total | 1,622,235,227.74 | 1,179,306,020.01 |
(1) Fixed assets
Unit: yuan
| Item | 房屋及建筑物 | 机器设备 | 运输设备 | 其他设备 | 合计 |
I. Original book value:
| I. Original book value: |
1. Beginning balance
| 1. Beginning balance | 1,072,125,559.90 | 679,169,886.72 | 21,794,424.31 | 84,018,707.47 | 1,857,108,578.40 |
2. Amount increased in
current period
| 2. Amount increased in current period | 508,052,163.80 | 100,443,322.89 | 873,081.44 | 17,573,982.75 | 626,942,550.88 |
(1) Purchase
| (1) Purchase | 11,023,673.21 | 21,848,597.52 | 846,886.75 | 7,966,904.05 | 41,686,061.53 |
(2) Transfer from
construction in progress
| (2) Transfer from construction in progress | 490,036,091.49 | 78,594,725.37 | 26,194.69 | 9,607,078.70 | 578,264,090.25 |
(3) Increase by business
combination
| (3) Increase by business combination | 6,992,399.10 | 6,992,399.10 |
3. Amount decreased in
current period
| 3. Amount decreased in current period | 56,957,445.43 | 7,067,579.99 | 293,110.03 | 1,301,118.64 | 65,619,254.09 |
(1) Disposal or scrap
| (1) Disposal or scrap | 7,067,579.99 | 293,110.03 | 1,301,118.64 | 8,661,808.66 |
(2) Other decreases*1
| (2) Other decreases*1 | 56,957,445.43 | 56,957,445.43 |
4. Ending balance
| 4. Ending balance | 1,523,220,278.27 | 772,545,629.62 | 22,374,395.72 | 100,291,571.58 | 2,418,431,875.19 |
II. Accumulated depreciation
| II. Accumulated depreciation |
1. Beginning balance
| 1. Beginning balance | 267,528,198.84 | 341,157,676.17 | 12,747,836.37 | 56,368,847.01 | 677,802,558.39 |
2. Amount increased in
| 2. Amount increased in | 58,074,219.47 | 57,454,469.11 | 2,246,996.41 | 9,894,545.61 | 127,670,230.60 |
2022 Full Annual Report
current period
(1) Provision
| (1) Provision | 57,686,723.98 | 57,454,469.11 | 2,246,996.41 | 9,894,545.61 | 127,282,735.11 |
(2) Other increase
| (2) Other increase | 387,495.49 | 387,495.49 |
3. Amount decreased in
current period
| 3. Amount decreased in current period | 4,463,992.88 | 3,427,703.44 | 278,454.50 | 1,105,990.72 | 9,276,141.54 |
(1) Disposal or scrap
| (1) Disposal or scrap | 3,427,703.44 | 278,454.50 | 1,105,990.72 | 4,812,148.66 |
(2) Other decreases
| (2) Other decreases | 4,463,992.88 | 4,463,992.88 |
4. Ending balance
| 4. Ending balance | 321,138,425.43 | 395,184,441.84 | 14,716,378.28 | 65,157,401.90 | 796,196,647.45 |
III. Provision for impairment
| III. Provision for impairment |
1. Beginning balance
| 1. Beginning balance |
2. Amount increased in
current period
| 2. Amount increased in current period |
3. Amount decreased in
current period
| 3. Amount decreased in current period |
4. Ending balance
| 4. Ending balance |
IV. Book value
| IV. Book value |
1. Ending book value
| 1. Ending book value | 1,202,081,852.84 | 377,361,187.78 | 7,658,017.44 | 35,134,169.68 | 1,622,235,227.74 |
2. Beginning book value
| 2. Beginning book value | 804,597,361.06 | 338,012,210.55 | 9,046,587.94 | 27,649,860.46 | 1,179,306,020.01 |
*1. See “Investment properties” herein for details.
(2) Fixed assets without certificate of title
Unit: yuan
| Item | Book value | Reasons for not obtaining the certificate of title |
Houses and buildings
| Houses and buildings | 616,079,655.22 | The newly built buildings are being handled |
13. Construction in progress
Unit: yuan
| Item | Ending balance | Beginning balance |
Construction in progress
| Construction in progress | 406,258,146.69 | 454,643,364.82 |
Total
| Total | 406,258,146.69 | 454,643,364.82 |
(1) Construction in progress
Unit: yuan
| Item | Ending balance | Beginning balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
Maoshanintelligentmanufacturingbaseinfrastructureproject
| Maoshan intelligent manufacturing base infrastructure project | 192,769,369.56 | 192,769,369.56 | 194,423,004.31 | 194,423,004.31 |
ROBAMBuilding project
| ROBAM Building project | 192,286,508.04 | 192,286,508.04 | 59,931,795.23 | 59,931,795.23 |
Project ofproductiondepartment 1
| Project of production department 1 | 5,941,592.92 | 5,941,592.92 | 10,336,283.17 | 10,336,283.17 |
Customizedmanagementsoftware
| Customized management software | 5,505,845.75 | 5,505,845.75 | 3,223,516.47 | 3,223,516.47 |
Project of
| Project of | 3,855,078.16 | 3,855,078.16 | 2,779,911.26 | 2,779,911.26 |
2022 Full Annual Report
productiondepartment 3Project ofproductiondepartment 2
| Project of production department 2 | 1,387,610.64 | 1,387,610.64 | 1,185,840.80 | 1,185,840.80 |
Other sporadicprojects
| Other sporadic projects | 4,512,141.62 | 4,512,141.62 | 5,406,555.22 | 5,406,555.22 |
ShengzhouChengnanproject
| Shengzhou Chengnan project | 174,099,821.16 | 174,099,821.16 |
Integrated rangehood project
| Integrated range hood project | 3,256,637.20 | 3,256,637.20 |
Total
| Total | 406,258,146.69 | 406,258,146.69 | 454,643,364.82 | 454,643,364.82 |
(2) Current changes in major projects under construction
Unit: yuan
| Item name | Budget number | Beginning balance | Amount increased in current period | Amount carried forward to fixed assets in current period | Other decreases in current period | Ending balance | Proportion of total project input to the budget | Progress of works | Source of funds |
Maoshanintelligentmanufacturing baseinfrastructure project
| Maoshan intelligent manufacturing base infrastructure project | 954,238,416.50 | 194,423,004.31 | 317,074,946.38 | 318,728,581.13 | 192,769,369.56 | 83.94% | 83.94% | Other |
ShengzhouChengnanproject
| Shengzhou Chengnan project | 240,960,000.00 | 174,099,821.16 | 53,001,646.38 | 227,101,467.54 | 100.00% | 100.00% | Other |
ROBAMBuildingproject
| ROBAM Building project | 724,750,000.00 | 59,931,795.23 | 132,354,712.81 | 192,286,508.04 | 26.53% | 26.53% | Other |
Total
| Total | 1,919,948,416.50 | 428,454,620.70 | 502,431,305.57 | 545,830,048.67 | 385,055,877.60 |
14. Right-of-use assets
Unit: yuan
| Item | Houses and buildings | Total |
I. Original book value
| I. Original book value |
1. Beginning balance
| 1. Beginning balance | 35,620,757.32 | 35,620,757.32 |
2. Amount increased in current
period
| 2. Amount increased in current period | 3,146,563.11 | 3,146,563.11 |
(1) Rent in
| (1) Rent in | 3,146,563.11 | 3,146,563.11 |
3. Amount decreased in current
period
| 3. Amount decreased in current period | 5,689,271.41 | 5,689,271.41 |
(1) Disposal
| (1) Disposal | 5,689,271.41 | 5,689,271.41 |
4. Ending balance
| 4. Ending balance | 33,078,049.02 | 33,078,049.02 |
II. Accumulated depreciation
| II. Accumulated depreciation |
1. Beginning balance
| 1. Beginning balance | 5,717,803.10 | 5,717,803.10 |
2. Amount increased in current
period
| 2. Amount increased in current period | 5,561,093.48 | 5,561,093.48 |
(1) Provision
| (1) Provision | 5,561,093.48 | 5,561,093.48 |
3. Amount decreased in current
period
| 3. Amount decreased in current period | 420,991.69 | 420,991.69 |
(1) Disposal
| (1) Disposal | 420,991.69 | 420,991.69 |
2022 Full Annual Report
4. Ending balance
| 4. Ending balance | 10,857,904.89 | 10,857,904.89 |
III. Provision for impairment
| III. Provision for impairment |
1. Beginning balance
| 1. Beginning balance |
2. Amount increased in current
period
| 2. Amount increased in current period |
3. Amount decreased in current
period
| 3. Amount decreased in current period |
4. Ending balance
| 4. Ending balance |
IV. Book value
| IV. Book value |
1. Ending book value
| 1. Ending book value | 22,220,144.13 | 22,220,144.13 |
2. Beginning book value
| 2. Beginning book value | 29,902,954.22 | 29,902,954.22 |
15. Intangible assets
(1) Intangible assets
Unit: yuan
| Item | Land use right | Software | Trademark | Patent | Total |
I. Original book value
| I. Original book value |
1. Year-beginning
balance
| 1. Year-beginning balance | 225,656,679.95 | 59,863,685.75 | 24,624,622.64 | 7,300,000.00 | 317,444,988.34 |
2. Amount increased in
this year
| 2. Amount increased in this year | 6,191,277.67 | 6,191,277.67 |
(1) Purchase
| (1) Purchase | 1,201,769.92 | 1,201,769.92 |
(2) Transfer from
construction in progress
| (2) Transfer from construction in progress | 4,989,507.75 | 4,989,507.75 |
3. Amount decreased
in this year
| 3. Amount decreased in this year | 1,062,744.00 | 1,062,744.00 |
(1) Other decreases
| (1) Other decreases | 1,062,744.00 | 1,062,744.00 |
4. Year-end balance
| 4. Year-end balance | 224,593,935.95 | 66,054,963.42 | 24,624,622.64 | 7,300,000.00 | 322,573,522.01 |
II. Accumulatedamortization
| II. Accumulated amortization |
1. Year-beginning
balance
| 1. Year-beginning balance | 30,136,519.99 | 45,382,855.83 | 8,603,040.04 | 3,930,769.22 | 88,053,185.08 |
2. Amount increased in
this year
| 2. Amount increased in this year | 4,539,860.51 | 5,358,973.31 | 2,462,462.24 | 1,123,076.93 | 13,484,372.99 |
(1) Provision
| (1) Provision | 4,539,860.51 | 5,358,973.31 | 2,462,462.24 | 1,123,076.93 | 13,484,372.99 |
3. Amount decreased
in this year
| 3. Amount decreased in this year | 320,594.44 | 320,594.44 |
(1) Other decreases
| (1) Other decreases | 320,594.44 | 320,594.44 |
4. Year-end balance
| 4. Year-end balance | 34,355,786.06 | 50,741,829.14 | 11,065,502.28 | 5,053,846.15 | 101,216,963.63 |
III. Provision forimpairment
| III. Provision for impairment |
1. Year-beginning
balance
| 1. Year-beginning balance |
2. Amount increased in
this year
| 2. Amount increased in this year |
3. Amount decreased
in this year
| 3. Amount decreased in this year |
4. Year-end balance
| 4. Year-end balance |
IV. Book value
| IV. Book value |
1. Book value at the
end of the year
| 1. Book value at the end of the year | 190,238,149.89 | 15,313,134.28 | 13,559,120.36 | 2,246,153.85 | 221,356,558.38 |
2. Book value at the
beginning of the year
| 2. Book value at the beginning of the year | 195,520,159.96 | 14,480,829.92 | 16,021,582.60 | 3,369,230.78 | 229,391,803.26 |
2022 Full Annual Report
16. Goodwill
(1) Original book value of goodwill
Unit: yuan
| Investee name or goodwill forming matter | Beginning balance | Increase in current period | Decrease in current period | Ending balance | ||
| By business combination | Disposal | |||||
ShengzhouKindeIntelligentKitchen ElectricCo., Ltd.
| Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. | 80,589,565.84 | 80,589,565.84 |
Total
| Total | 80,589,565.84 | 80,589,565.84 |
(2) Provision for impairment of goodwill
Unit: yuan
| Investee name or goodwill forming matter | Beginning balance | Increase in current period | Decrease in current period | Ending balance | ||
| Provision | Disposal | |||||
Shengzhou KindeIntelligent KitchenElectric Co., Ltd.
| Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. | 20,015,733.28 | 20,015,733.28 |
Total
| Total | 20,015,733.28 | 20,015,733.28 |
Information about the asset group or combination of asset groups in which the goodwill is locatedThe Company recognizes Shengzhou Kinde as an asset group, and the asset group of goodwill at the end of the year isconsistent with the asset group recognized in the goodwill impairment test on the purchase date and previous years.Goodwill impairment test process and recognition method of key parameters (forecast period growth rate when estimating thepresent value of future cash flow, stable period growth rate, profit rate, discount rate and forecast period) and goodwillimpairment loss:
The Company entrusts Zhonghe Asset Appraisal Co., Ltd. (hereinafter referred to as Zhonghe Asset) to evaluate ShengzhouKinde asset group to determine whether the goodwill is impaired. According to the Z.H.Z.B.Zi (2023) No.BJU3005 ValuationReport for the Purpose of Goodwill Impairment Test issued by Zhonghe Asset, Zhonghe Asset makes a decision according tothe five-year financial budget for 2023-2027 approved by the management, and estimate the cash flow and stable periodgrowth rate of 4.84% for the next five years with the growth rate of 31.38%, 14.33%, 14.42%, 9.66% and 4.84%, calculate thepresent value model of future cash flow with a after-tax discount rate of 11.92%, and based on the assumption of goingconcern, conduct impairment tests on goodwill with the higher of the net of the fair value of the asset less disposal chargesand the present value of the expected future cash flow of the asset. According to the test, the recoverable amount ofShengzhou Kinde asset group on December 31, 2022 was RMB 366,560,000, which is lower than the book value of the assetgroup including goodwill, and there was impairment of goodwill, and the provision for impairment was RMB 2,0015,700 thisyear.
17. Long-term unamortized expenses
Unit: yuan
| Item | Beginning balance | Amount increased in current period | Amortization amount in current period | Other decreases | Ending balance |
Office decorationfee
| Office decoration fee | 2,693,191.62 | 4,119,782.04 | 1,837,438.47 | 4,975,535.19 |
Service charge
| Service charge | 937,763.96 | 3,390,382.69 | 3,759,815.38 | 568,331.27 |
Brand endorsementfee
| Brand endorsement fee | 1,572,876.21 | 13,479,514.93 | 14,868,186.66 | 184,204.48 |
Consulting fee
| Consulting fee | 151,465.27 | 470,841.87 | 543,390.47 | 78,916.67 |
Environmentalprotection fee
| Environmental protection fee | 30,139.14 | 385,479.63 | 369,706.48 | 45,912.29 |
Total
| Total | 5,385,436.20 | 21,846,001.16 | 21,378,537.46 | 5,852,899.90 |
2022 Full Annual Report
18. Deferred income tax assets and deferred income tax liabilities
(1) Unoffset deferred income tax assets
Unit: yuan
| Item | Ending balance | Beginning balance | ||
| Deductible temporary differences | Deferred income tax assets | Deductible temporary differences | Deferred income tax assets | |
Provision for creditimpairment
| Provision for credit impairment | 1,140,080,421.22 | 177,937,345.82 | 917,479,025.92 | 138,811,114.82 |
Recognition forprovisional estimatecost
| Recognition for provisional estimate cost | 775,373,813.20 | 116,306,071.98 | 656,596,891.65 | 98,489,533.76 |
Fair value change ofother equity instrumentinvestments
| Fair value change of other equity instrument investments | 117,832,510.80 | 17,674,876.62 | 117,832,510.78 | 17,674,876.62 |
Recognition fordeferred income
| Recognition for deferred income | 86,923,728.33 | 13,038,559.25 | 102,890,393.42 | 15,433,559.00 |
Provision forimpairment of assets
| Provision for impairment of assets | 75,904,924.33 | 11,385,738.65 | 80,039,607.58 | 12,005,941.14 |
Unrealized profit ofinternal transaction
| Unrealized profit of internal transaction | 9,265,235.74 | 2,316,308.94 | 6,550,213.16 | 1,637,825.81 |
Recognition for equityincentive
| Recognition for equity incentive | 7,950,207.60 | 1,239,475.54 | 3,118,765.48 | 480,458.47 |
Unrecognized financingexpenses
| Unrecognized financing expenses | 3,651,876.63 | 912,969.16 | 1,349,960.44 | 337,490.11 |
Payroll payablewithdrawn but notissued
| Payroll payable withdrawn but not issued | 9,848,248.72 | 1,477,237.31 |
Total
| Total | 2,216,982,717.85 | 340,811,345.96 | 1,895,705,617.15 | 286,348,037.04 |
(2) Unoffset deferred income tax liabilities
Unit: yuan
| Item | Ending balance | Beginning balance | ||
| Taxable temporary differences | Deferred income tax liabilities | Taxable temporary differences | Deferred income tax liabilities | |
Appreciation of assetsappraisal for businesscombination not undercommon control
| Appreciation of assets appraisal for business combination not under common control | 21,533,616.61 | 3,230,042.49 | 25,908,559.83 | 3,886,283.97 |
Taxable temporarydifferences due to thepretax deduction of fixedassets
| Taxable temporary differences due to the pretax deduction of fixed assets | 125,852,613.90 | 18,877,892.09 | 15,789,858.60 | 2,368,478.79 |
Total
| Total | 147,386,230.51 | 22,107,934.58 | 41,698,418.43 | 6,254,762.76 |
(3) Deferred income tax assets or liabilities presented as net amount after offset
Unit: yuan
| Item | Ending offset amount of deferred income tax assets and liabilities | Ending balance of deferred income tax assets and liabilities after offset | Beginning offset amount of deferred income tax assets and liabilities | Beginning balance of deferred income tax assets and liabilities after offset |
Deferred income taxassets
| Deferred income tax assets | 340,811,345.96 | 286,348,037.04 |
Deferred income taxliabilities
| Deferred income tax liabilities | 22,107,934.58 | 6,254,762.76 |
2022 Full Annual Report
(4) Details of unrecognized deferred income tax assets
Unit: yuan
| Item | Ending balance | Beginning balance |
Deductible loss
| Deductible loss | 44,298,409.84 | 18,037,908.58 |
Total
| Total | 44,298,409.84 | 18,037,908.58 |
(5) Deductible losses on unrecognized deferred income tax assets will expire in the following year
Unit: yuan
| Year | Ending amount | Beginning amount | Remark |
2022
| 2022 | 39,552.31 |
2023
| 2023 | 6,714.34 | 6,714.34 |
2024
| 2024 | 5,602.28 | 5,602.28 |
2025
| 2025 | 9,556,499.12 | 9,556,499.12 |
2026
| 2026 | 10,380,561.57 | 8,429,540.53 |
2027
| 2027 | 24,349,032.53 |
Total
| Total | 44,298,409.84 | 18,037,908.58 |
19. Other non-current assets
Unit: yuan
| Item | Ending balance | Beginning balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
Advancepayment forequipment
| Advance payment for equipment | 4,082,671.76 | 4,082,671.76 | 33,649,858.27 | 33,649,858.27 |
Projectmortgageproperty * Note
| Project mortgage property * Note 1 | 48,666,572.69 | 3,315,747.32 | 45,350,825.37 | 3,129,005.00 | 3,129,005.00 |
Advancepayment forengineering
| Advance payment for engineering | 1,690,011.17 | 1,690,011.17 |
Total
| Total | 52,749,244.45 | 3,315,747.32 | 49,433,497.13 | 38,468,874.44 | 38,468,874.44 |
*1. At the end of the year, the Company signed the debt restructuring agreement and completed the online signing proceduresfor the purchase of the project mortgage property and parking space with a total price of RMB 48,666,600, and theimpairment provision of RMB 3,315,700. See “Other important issues 2. Corporate debt restructuring matters” in this reportfor details.
20. Short-term borrowing
（1） Classification of short-term borrowing
Unit: yuan
| Item | Ending balance | Beginning balance |
Credit loan
| Credit loan | 51,150,000.00 |
Accounts receivable factoring
| Accounts receivable factoring | 573,429.99 | 29,616,655.41 |
Total
| Total | 51,723,429.99 | 29,616,655.41 |
Note 1: It is the working capital loan of the Company's subsidiary, Shengzhou Kinde, from Shaoxing Shengzhou Sub-branchof Bank of Communications Co., Ltd. and Shaoxing Shengzhou Sub-branch of China Construction Bank Co., Ltd. The loanterm is 1 year, and the interest rate range is 3.40% -3.70%.
2022 Full Annual Report
21. Notes payable
Unit: yuan
| Type | Ending balance | Beginning balance |
Banker's acceptance bill
| Banker's acceptance bill | 872,550,306.86 | 962,665,463.99 |
Total
| Total | 872,550,306.86 | 962,665,463.99 |
22. Accounts payable
(1) Presentation of accounts payable
Unit: yuan
| Item | Ending balance | Beginning balance |
Payment for materials
| Payment for materials | 1,179,804,339.04 | 1,087,160,715.37 |
Costs
| Costs | 1,004,448,565.06 | 923,334,216.09 |
Project payment
| Project payment | 202,679,315.68 | 152,898,742.07 |
Payment for equipment
| Payment for equipment | 31,822,947.53 | 18,506,587.47 |
Total
| Total | 2,418,755,167.31 | 2,181,900,261.00 |
Note: As of December 31, 2022, the Company's balance of important accounts payable with an age of more than one yearwere RMB 59,730,514.43, mainly for project funds and fees not yet settled.
23. Contract liabilities
Unit: yuan
| Item | Ending balance | Beginning balance |
Advances from customers
| Advances from customers | 959,915,567.03 | 1,026,782,402.35 |
Total
| Total | 959,915,567.03 | 1,026,782,402.35 |
24. Payroll payable
(1) Presentation of payroll payable
Unit: yuan
| Item | Beginning balance | Increase in current period | Decrease in current period | Ending balance |
I. Short-termcompensation
| I. Short-term compensation | 159,707,932.44 | 931,850,463.36 | 941,488,124.43 | 150,070,271.37 |
II. Welfare afterdismission - definedcontribution plan
| II. Welfare after dismission - defined contribution plan | 5,469,492.64 | 70,264,585.09 | 72,037,620.93 | 3,696,456.80 |
III. Dismission welfare
| III. Dismission welfare | 1,464,567.42 | 1,288,965.71 | 175,601.71 |
Total
| Total | 165,177,425.08 | 1,003,579,615.87 | 1,014,814,711.07 | 153,942,329.88 |
(2) Presentation of short-term compensation
Unit: yuan
| Item | Beginning balance | Increase in current period | Decrease in current period | Ending balance |
1. Wages, bonuses,
allowances and subsidies
| 1. Wages, bonuses, allowances and subsidies | 155,146,075.83 | 780,933,004.92 | 791,397,299.14 | 144,681,781.61 |
2. Employee welfare
expenses
| 2. Employee welfare expenses | 80.00 | 44,848,900.05 | 44,848,980.05 |
3. Social insurance
premium
| 3. Social insurance premium | 3,769,101.65 | 48,060,674.57 | 47,510,607.78 | 4,319,168.44 |
Including: medicalinsurance premium
| Including: medical insurance premium | 3,619,348.25 | 46,435,292.73 | 45,841,652.78 | 4,212,988.20 |
2022 Full Annual Report
| Industrial injury insurance premium | 149,753.40 | 1,625,381.84 | 1,668,955.00 | 106,180.24 |
4. Housing fund
| 4. Housing fund | 374,934.40 | 41,383,393.85 | 41,093,423.25 | 664,905.00 |
5. Labor union
expenditure and personneleducation fund
| 5. Labor union expenditure and personnel education fund | 417,740.56 | 16,624,489.97 | 16,637,814.21 | 404,416.32 |
Total
| Total | 159,707,932.44 | 931,850,463.36 | 941,488,124.43 | 150,070,271.37 |
(3) Presentation of defined contribution plans
Unit: yuan
| Item | Beginning balance | Increase in current period | Decrease in current period | Ending balance |
1. Basic endowment
insurance
| 1. Basic endowment insurance | 5,282,063.72 | 67,919,214.75 | 69,630,019.28 | 3,571,259.19 |
2. Unemployment
insurance premium
| 2. Unemployment insurance premium | 187,428.92 | 2,345,370.34 | 2,407,601.65 | 125,197.61 |
Total
| Total | 5,469,492.64 | 70,264,585.09 | 72,037,620.93 | 3,696,456.80 |
25. Tax payable
Unit: yuan
| Item | Ending balance | Beginning balance |
Corporate income tax
| Corporate income tax | 70,376,526.39 | 137,979,203.70 |
Added value tax
| Added value tax | 56,957,133.24 | 53,911,099.54 |
Housing property tax
| Housing property tax | 10,345,173.49 | 6,555,342.60 |
Land use tax
| Land use tax | 4,382,947.50 | 4,382,947.50 |
Urban maintenance and construction tax
| Urban maintenance and construction tax | 3,805,759.15 | 3,868,615.91 |
Individual income tax
| Individual income tax | 2,226,988.94 | 2,141,479.84 |
Education surcharge
| Education surcharge | 1,631,039.59 | 1,657,978.22 |
Stamp duty
| Stamp duty | 1,538,692.42 | 600,407.34 |
Surcharge for local education
| Surcharge for local education | 1,087,359.86 | 1,105,318.89 |
Total
| Total | 152,351,620.58 | 212,202,393.54 |
26. Other payables
Unit: yuan
| Item | Ending balance | Beginning balance |
Other payables
| Other payables | 281,878,208.25 | 267,781,215.06 |
Total
| Total | 281,878,208.25 | 267,781,215.06 |
1) Other payables listed by nature
Unit: yuan
| Item | Ending balance | Beginning balance |
Margin payable
| Margin payable | 265,582,978.77 | 252,335,944.60 |
Collections for others
| Collections for others | 7,285,543.45 | 6,179,088.18 |
Deposit payable
| Deposit payable | 6,122,832.30 | 5,104,062.30 |
Related party transactions
| Related party transactions | 2,700,000.00 |
Other
| Other | 2,886,853.73 | 1,462,119.98 |
Total
| Total | 281,878,208.25 | 267,781,215.06 |
Note: As of December 31, 2022, the Company's important other payables with an age of more than one year were RMB230,270,137.95, mainly for sales deposit.
2022 Full Annual Report
27. Non-current liabilities due within a year
Unit: yuan
| Item | Ending balance | Beginning balance |
Lease liabilities due within one year
| Lease liabilities due within one year | 5,720,175.21 | 5,387,591.43 |
Total
| Total | 5,720,175.21 | 5,387,591.43 |
28. Other current liabilities
Unit: yuan
| Item | Ending balance | Beginning balance |
Output tax to be carried forward
| Output tax to be carried forward | 120,126,501.73 | 124,284,081.56 |
Total
| Total | 120,126,501.73 | 124,284,081.56 |
Unit: yuan
29. Lease liabilities
Unit: yuan
| Item | Ending balance | Beginning balance |
Lease payments
| Lease payments | 28,173,738.18 | 37,325,149.01 |
Unrecognized financing expenses
| Unrecognized financing expenses | -3,864,596.28 | -5,760,523.29 |
Non-current liabilities reclassified to duewithin a year
| Non-current liabilities reclassified to due within a year | -5,720,175.23 | -5,387,591.43 |
Total
| Total | 18,588,966.67 | 26,177,034.29 |
30. Deferred income
Unit: yuan
| Item | Beginning balance | Increase in current period | Decrease in current period | Ending balance | Causes |
Governmentsubsidies
| Government subsidies | 131,747,378.42 | 10,868,940.00 | 18,704,207.99 | 123,912,110.43 |
Total
| Total | 131,747,378.42 | 10,868,940.00 | 18,704,207.99 | 123,912,110.43 | -- |
Other description:
| Government subsidy project | Year-beginning balance | Amount of additional subsidy in current year | Amount included in current non-operating income | Amount included in other income in current period | Amount offsetting the cost in the current period | Other alterations | Year-end balance | Asset/income related |
| Subsidies for factories, infrastructure, equipment, etc. in Chengnan New District | 28,856,985.00 | 9,618,940.00 | 1,487,542.89 | 36,988,382.11 | Asset related | |||
| Project fund of for intelligent manufacturing, integrated standardization and new mode application | 38,244,848.14 | 8,539,505.64 | 29,705,342.50 | Asset related | ||||
| Production and construction project of annual production of 2.25 million kitchen appliances | 22,331,070.60 | 2,573,781.24 | 19,757,289.36 | Asset related | ||||
| Unmaned intelligent factory based on 5G and Cloud technology | 17,747,914.45 | 2,078,848.20 | 15,669,066.25 | Asset related |
2022 Full Annual Report
| Technological upgrading project of manufacturing enterprises | 8,300,000.00 | 8,300,000.00 | Asset related | |||||
| Construction project of kitchen appliance R&D, design and test center | 7,044,601.01 | 1,275,175.85 | 5,769,425.16 | Asset related | ||||
| Project of annual 108 embedded kitchen electric appliance products | 4,251,843.75 | 682,491.00 | 3,569,352.75 | Asset related | ||||
| Technical transformation project with an annual output of 500,000 units | 2,216,987.91 | 374,411.16 | 1,842,576.75 | Asset related | ||||
| Future factory project | 1,250,000.00 | 131,744.34 | 1,118,255.66 | Asset related | ||||
| Digital intelligent manufacturing workshop of intelligent household appliances | 422,222.28 | 46,286.78 | 375,935.50 | Asset related | ||||
| New-generation environmentally friendly and energy-saving kitchen appliances and production line | 531,025.31 | 190,650.84 | 340,374.47 | Asset related | ||||
| Recycling transformation project | 360,466.65 | 91,610.16 | 268,856.49 | Asset related | ||||
| Academician expert workstation | 210,622.64 | 44,371.40 | 166,251.24 | Asset related | ||||
| Kitchen appliance R&D, design and test center | 34,946.80 | 7,624.80 | 27,322.00 | Asset related | ||||
| Project of annual production of 2.25 million digital workshops | 24,680.65 | 11,000.46 | 13,680.19 | Asset related | ||||
| Subsidy for the production and construction project of annual production of 1 million kitchen appliances | 1,139,057.12 | 1,139,057.12 | Asset related | |||||
| Subsidies for investment project of annual production of 150,000 range hoods | 30,106.11 | 30,106.11 | Asset related | |||||
| Total | 131,747,378.42 | 10,868,940.00 | 18,704,207.99 | 123,912,110.43 | — |
31. Capital stock
Unit: yuan
| Beginning balance | Increase/decrease (+, -) | Ending balance | |||||
| New issue of shares | Share donation | Share capital increase from reserved funds | Other | Subtotal | |||
Total amountof shares
| Total amount of shares | 949,024,050.00 | 949,024,050.00 |
32. Capital reserve
Unit: yuan
| Item | Beginning balance | Increase in current period | Decrease in current period | Ending balance |
Capital premium (capitalstock premium)
| Capital premium (capital stock premium) | 401,799,332.67 | 401,799,332.67 |
2022 Full Annual Report
| Other capital surplus | 3,118,765.48 | 5,079,567.43 | 8,198,332.91 |
Total
| Total | 404,918,098.15 | 5,079,567.43 | 409,997,665.58 |
Note: The increase in other capital surplus, includes the amount of RMB 4,735,460.48 coming from the provision of equityincentives in the current period. Please refer to XV. Other important issues, equity incentives in this report; The remainingincrease of RMB 344,106.95 came from the change in equity held by minority shareholders of the Company’s controllingsubsidiary Zhejiang Cooking Future Technology Co., Ltd. this year.
33. Treasury stock
Unit: yuan
| Item | Beginning balance | Increase in current period | Decrease in current period | Ending balance |
Share repurchase
| Share repurchase | 199,995,742.59 | 199,995,742.59 |
Total
| Total | 199,995,742.59 | 199,995,742.59 |
34. Other comprehensive income
Unit: yuan
| Item | Beginning balance | Amount incurred in current period | Ending balance | |||||
| Amount before current income tax | Minus: amount included in other comprehensive income in previous period and carried forward to profit and loss in current period | Minus: amount included in other comprehensive income in previous period and included in carried forward to retained earnings in current period | Minus: Income tax expenses | Attributable to the parent company after tax | Attributable to minority shareholders after tax | |||
I. Othercomprehensive incomethat can't bereclassifiedinto profitand loss
| I. Other comprehensive income that can't be reclassified into profit and loss | -100,157,634.16 | -100,157,634.16 |
Fair valuechange ofother equityinstrumentinvestments
| Fair value change of other equity instrument investments | -100,157,634.16 | -100,157,634.16 |
Total othercomprehensive income
| Total other comprehensive income | -100,157,634.16 | -100,157,634.16 |
35. Surplus reserves
Unit: yuan
| Item | Beginning balance | Increase in current period | Decrease in current period | Ending balance |
Statutory surplusreserves
| Statutory surplus reserves | 474,516,412.50 | 474,516,412.50 |
Total
| Total | 474,516,412.50 | 474,516,412.50 |
36. Undistributed profit
Unit: yuan
| Item | Current period | Prior period |
Undistributed profit at the end of
| Undistributed profit at the end of | 7,098,721,555.37 | 6,240,444,654.34 |
2022 Full Annual Report
previous period before adjustmentUndistributed profits at the beginning ofthe period after adjustment
| Undistributed profits at the beginning of the period after adjustment | 7,098,721,555.37 | 6,240,444,654.34 |
Plus: Net profits attributable to theowners of parent company in the currentperiod
| Plus: Net profits attributable to the owners of parent company in the current period | 1,572,404,918.21 | 1,331,712,059.03 |
Common stock dividends payable
| Common stock dividends payable | 472,047,458.00 | 473,435,158.00 |
Undistributed profits at the end of theperiod
| Undistributed profits at the end of the period | 8,199,079,015.58 | 7,098,721,555.37 |
37. Operating income and operating cost
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period | ||
| Income | Cost | Income | Cost | |
Main business
| Main business | 9,981,652,062.48 | 5,021,006,447.26 | 9,878,609,034.58 | 4,780,326,936.38 |
Other businesses
| Other businesses | 289,848,508.56 | 116,362,310.89 | 269,097,000.77 | 54,726,467.99 |
Total
| Total | 10,271,500,571.04 | 5,137,368,758.15 | 10,147,706,035.35 | 4,835,053,404.37 |
Unit: yuan
38. Taxes and surcharges
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period |
Urban maintenance and construction tax
| Urban maintenance and construction tax | 36,866,764.88 | 38,432,112.18 |
Education surcharge
| Education surcharge | 26,333,403.43 | 27,451,508.66 |
Housing property tax
| Housing property tax | 10,952,011.11 | 7,059,080.25 |
Stamp duty
| Stamp duty | 4,372,007.14 | 3,168,252.51 |
Vehicle and vessel use tax
| Vehicle and vessel use tax | 31,382.80 | 8,219.19 |
Land use tax
| Land use tax | 4,444,471.50 |
Other
| Other | 9,014.69 | 27,605.88 |
Total
| Total | 78,564,584.05 | 80,591,250.17 |
39. Selling expenses
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period |
Sales and service fees
| Sales and service fees | 1,025,589,168.39 | 888,105,322.12 |
Advertising and promotion expenses
| Advertising and promotion expenses | 742,763,089.08 | 688,276,034.18 |
Employee compensation
| Employee compensation | 377,046,127.44 | 335,997,909.99 |
Booth decoration fee
| Booth decoration fee | 193,012,956.27 | 234,356,309.98 |
Promotion fees
| Promotion fees | 101,079,371.35 | 120,917,154.89 |
Material consumption
| Material consumption | 67,685,473.69 | 70,585,682.15 |
Traveling expense
| Traveling expense | 27,632,789.17 | 36,526,754.00 |
Intermediary service charge
| Intermediary service charge | 21,405,980.86 | 18,942,729.75 |
Rental fees
| Rental fees | 16,347,878.64 | 16,683,897.40 |
Business entertainment expenses
| Business entertainment expenses | 16,132,300.29 | 17,321,525.30 |
Office allowance
| Office allowance | 14,226,573.69 | 12,091,581.39 |
Other
| Other | 10,704,365.02 | 14,613,138.77 |
Total
| Total | 2,613,626,073.89 | 2,454,418,039.92 |
40. Management costs
Unit: yuan
2022 Full Annual Report
| Item | Amount incurred in current period | Amount incurred in previous period |
Employee compensation
| Employee compensation | 232,915,393.30 | 196,152,990.40 |
Depreciation and amortization
| Depreciation and amortization | 57,769,379.05 | 49,553,437.40 |
Consulting service charge
| Consulting service charge | 30,328,558.67 | 27,970,501.93 |
Maintenance expense
| Maintenance expense | 20,325,200.99 | 18,523,798.07 |
Office allowance
| Office allowance | 19,173,287.07 | 15,140,294.06 |
Rental and property fees
| Rental and property fees | 16,857,502.46 | 10,256,242.02 |
Business entertainment expenses
| Business entertainment expenses | 9,589,758.62 | 7,427,987.83 |
Traveling expense
| Traveling expense | 8,655,474.80 | 8,295,851.23 |
Communication expense
| Communication expense | 5,882,277.89 | 5,536,487.28 |
Equity incentive fee
| Equity incentive fee | 4,735,460.49 | 3,118,765.48 |
Car fare
| Car fare | 3,990,965.03 | 4,010,092.59 |
Material consumption
| Material consumption | 2,329,956.33 | 2,410,539.20 |
Other
| Other | 18,415,189.04 | 15,365,385.14 |
Total
| Total | 430,968,403.74 | 363,762,372.63 |
41. Research and development expenses
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period |
Employee compensation
| Employee compensation | 200,367,321.67 | 178,520,125.46 |
Direct investment
| Direct investment | 153,846,595.26 | 151,535,589.24 |
Depreciation and amortization
| Depreciation and amortization | 15,626,975.33 | 15,344,134.84 |
Design fee
| Design fee | 6,949,423.09 | 7,421,984.65 |
Other expenses
| Other expenses | 14,824,490.03 | 13,204,832.15 |
Total
| Total | 391,614,805.38 | 366,026,666.34 |
42. Financial expenses
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period |
Interest expenditure
| Interest expenditure | 10,249,057.76 | 9,638,311.28 |
Minus: Interest revenue
| Minus: Interest revenue | 162,232,029.99 | 152,136,833.79 |
Plus: Exchange gain or loss
| Plus: Exchange gain or loss | -7,158,057.38 | 1,087,864.00 |
Plus: other expenses
| Plus: other expenses | 1,918,741.00 | 1,737,150.64 |
Total
| Total | -157,222,288.61 | -139,673,507.87 |
43. Other income
Unit: yuan
| Other sources of income | Amount incurred in current period | Amount incurred in previous period |
Financial support funds for enterprisecultivation
| Financial support funds for enterprise cultivation | 52,042,148.00 | 33,070,000.00 |
Embedded software tax rebate
| Embedded software tax rebate | 45,959,892.74 | 10,979,888.36 |
Amortization of deferred income
| Amortization of deferred income | 18,704,207.99 | 18,416,145.48 |
Special financial funds
| Special financial funds | 10,005,040.00 | 976,752.00 |
Intelligent manufacturing, integratedstandardization and new modeapplication project
| Intelligent manufacturing, integrated standardization and new mode application project | 6,497,000.00 |
Special fund for industrial development
| Special fund for industrial development | 3,626,125.00 | 7,967,840.13 |
Job subsidies and social insurancesubsidies
| Job subsidies and social insurance subsidies | 3,508,713.85 | 1,038,232.33 |
Performance award of ShanghaiHongkou District Finance Bureau
| Performance award of Shanghai Hongkou District Finance Bureau | 3,010,000.00 |
2022 Full Annual Report
| Subsidies for R&D investment | 2,788,200.00 |
Training allowance
| Training allowance | 706,097.00 |
Service charge refund
| Service charge refund | 541,758.65 | 575,697.14 |
Patent reward fund
| Patent reward fund | 367,040.00 | 4,352,000.00 |
VAT exemption or reduction
| VAT exemption or reduction | 10,643.41 | 18,000.00 |
Other subsidies
| Other subsidies | 708,703.65 | 30,000.00 |
44. Investment income
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period |
long-term equity investment gainsmeasured by employing the equity method
| long-term equity investment gains measured by employing the equity method | -826,624.29 | -47,639.68 |
Investment income from trading financialassets during the holding period
| Investment income from trading financial assets during the holding period | 99,787,693.44 | 90,550,171.74 |
Total
| Total | 98,961,069.15 | 90,502,532.06 |
45. Credit impairment loss
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period |
Loss on bad debts of other receivables
| Loss on bad debts of other receivables | 4,146,561.44 | -7,095,025.28 |
Loss on bad debts of notes receivable
| Loss on bad debts of notes receivable | 225,624,086.48 | -179,981,579.03 |
Loss on bad debts of accounts receivable
| Loss on bad debts of accounts receivable | -453,885,249.57 | -578,422,832.76 |
Total
| Total | -224,114,601.65 | -765,499,437.07 |
46. Assets impairment losses
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period |
Inventory falling price loss andimpairment loss of contract performancecosts
| Inventory falling price loss and impairment loss of contract performance costs | -1,666,825.32 | -52,632,725.80 |
Loss on impairment of goodwill
| Loss on impairment of goodwill | -20,015,733.28 |
Other
| Other | -3,315,747.32 |
Total
| Total | -24,998,305.92 | -52,632,725.80 |
47. Income from disposal of assets
Unit: yuan
| Source of income from disposal of assets | Amount incurred in current period | Amount incurred in previous period |
Income from disposal of non-currentassets
| Income from disposal of non-current assets | 143,437.75 | -2,122,173.87 |
Including: income from disposal of fixedassets
| Including: income from disposal of fixed assets | -113,948.48 | -2,122,173.87 |
Income from disposal of right-of-useassets
| Income from disposal of right-of-use assets | 257,386.23 |
48. Non-operating income
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period | Amounts recorded in the non-recurring gains and losses of the current period |
Government subsidies
| Government subsidies | 43,000.00 |
Liquidated damages and fines
| Liquidated damages and fines | 2,661,012.65 | 15,853.31 | 2,661,012.65 |
2022 Full Annual Report
| Gain on retirement of non-current assets | 33,060.29 | 33,060.29 |
Other
| Other | 574,406.11 | 1,720,972.55 | 574,406.11 |
Total
| Total | 3,268,479.05 | 1,779,825.86 | 3,268,479.05 |
Other description:
| Item | Amount incurred in current year | Amount incurred in last year | Source and Basis | Asset/income related |
| Subsidies for early scrapping of diesel vehicles under China III vehicle emission standards | 13,000.00 | Income related | ||
| Corporate Culture Club awards and subsidies | 30,000.00 | Income related | ||
| Total | 43,000.00 | — | — |
49. Non-operating expenditure
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period | Amounts recorded in the non-recurring gains and losses of the current period |
External donations
| External donations | 3,734,913.97 | 2,000,000.00 | 3,734,913.97 |
Abnormal loss
| Abnormal loss | 506,839.36 | 350,752.22 | 506,839.36 |
Penalty expenditure
| Penalty expenditure | 5,300.00 | 178,475.20 | 5,300.00 |
Loss on damage and scrap ofnon-current assets
| Loss on damage and scrap of non-current assets | 63,041.78 | 168,013.37 | 63,041.78 |
Other
| Other | 1,033,183.71 | 1,514,224.96 | 1,033,183.71 |
Total
| Total | 5,343,278.82 | 4,211,465.75 | 5,343,278.82 |
50. Income tax expenses
(1) Income tax expenses
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period |
Current income tax expenses
| Current income tax expenses | 253,156,740.77 | 341,789,501.27 |
Deferred income tax expenses
| Deferred income tax expenses | -38,490,586.78 | -157,812,003.31 |
Total
| Total | 214,666,153.99 | 183,977,497.96 |
(2) Accounting profit and income tax expense adjustment process
Unit: yuan
| Item | Amount incurred in current period |
Total profit
| Total profit | 1,772,972,604.29 |
Income tax expenses calculated at the appropriate/applicabletax rate
| Income tax expenses calculated at the appropriate/applicable tax rate | 265,945,890.64 |
Impact of different tax rates applied on subsidiaries
| Impact of different tax rates applied on subsidiaries | -6,238,450.28 |
Impact of income tax before adjustment
| Impact of income tax before adjustment | 1,271,781.52 |
Impact of non-deductible costs, expenses and losses
| Impact of non-deductible costs, expenses and losses | 6,629,081.51 |
Impact of temporary difference or deductible losses onunrecognized deferred income tax assets in the current period
| Impact of temporary difference or deductible losses on unrecognized deferred income tax assets in the current period | 11,709,883.55 |
Profits and losses of cooperative enterprise or joint ventureaccounted by equity method
| Profits and losses of cooperative enterprise or joint venture accounted by equity method | 77,201.49 |
Tax impact of additional deduction for research anddevelopment expenses (express with “-”)
| Tax impact of additional deduction for research and development expenses (express with “-”) | -50,745,074.98 |
Tax impact of additional deduction for fixed assets (expresswith “-”)
| Tax impact of additional deduction for fixed assets (express with “-”) | -13,811,187.63 |
2022 Full Annual Report
| Other | -172,971.83 |
Income tax expenses
| Income tax expenses | 214,666,153.99 |
51. Other comprehensive income
See the notes for details.
52. Cash flow statement items
(1) Other cash received related to operating activities
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period |
Income from deposit interest
| Income from deposit interest | 162,232,029.99 | 152,136,833.79 |
Government subsidies
| Government subsidies | 94,665,016.15 | 59,051,409.96 |
Agent business
| Agent business | 1,173,444.43 | 17,645,868.20 |
Imprest
| Imprest | 3,448,325.00 | 5,429,032.71 |
Margin and deposit
| Margin and deposit | 30,208,569.09 | 21,136,563.04 |
Other payments
| Other payments | 10,847,398.64 | 16,271,319.04 |
Total
| Total | 302,574,783.30 | 271,671,026.74 |
(2) Other cash paid related to operating activities
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period |
Period charge
| Period charge | 2,472,346,407.79 | 2,043,557,267.21 |
Agent business
| Agent business | 38,185,746.87 | 51,345,724.50 |
Margin and deposit
| Margin and deposit | 9,124,879.36 | 11,160,267.03 |
Deposit for L/C and acceptance bill
| Deposit for L/C and acceptance bill | 28,100,235.97 | 54,739,852.30 |
Imprest
| Imprest | 3,431,848.41 | 1,154,242.51 |
Other
| Other | 7,469,204.96 | 19,699,160.50 |
Total
| Total | 2,558,658,323.36 | 2,181,656,514.05 |
(3) Other cash received related to financing activities
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period |
Accounts receivable factoring income
| Accounts receivable factoring income | 1,012,732.06 | 30,694,588.74 |
Total
| Total | 1,012,732.06 | 30,694,588.74 |
(4) Other cash paid related to financing activities
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period |
Factoring refund with recourse
| Factoring refund with recourse | 4,030,091.57 |
Rent
| Rent | 6,729,745.77 | 6,046,438.38 |
Share repurchase
| Share repurchase | 199,995,742.59 |
Total
| Total | 10,759,837.34 | 206,042,180.97 |
53. Further information on cash flow statement
(1) Further information on cash flow statement
Unit: yuan
| Further information | Current amount | Last term amount |
1. Reconciliation from net profits to cash flows from operating
| 1. Reconciliation from net profits to cash flows from operating |
2022 Full Annual Report
activitiesNet profit
| Net profit | 1,558,306,450.30 | 1,348,791,422.70 |
Plus: Provision for impairment of assets
| Plus: Provision for impairment of assets | 24,998,305.92 | 52,632,725.80 |
Credit impairment loss
| Credit impairment loss | 224,114,601.65 | 765,499,437.07 |
Depreciation of fixed assets, oil and gas assets and productivebiological assets
| Depreciation of fixed assets, oil and gas assets and productive biological assets | 129,112,131.14 | 106,025,150.37 |
Depreciation of Right-of-use assets
| Depreciation of Right-of-use assets | 5,561,093.48 | 5,717,803.10 |
Amortization of intangible assets
| Amortization of intangible assets | 13,484,372.99 | 13,348,356.24 |
Amortization of long-term deferred expenses
| Amortization of long-term deferred expenses | 21,378,537.46 | 2,560,738.71 |
Loss on disposal of fixed assets, intangible assets and otherlong-term assets (gains expressed with “-”)
| Loss on disposal of fixed assets, intangible assets and other long-term assets (gains expressed with “-”) | -143,437.75 | 2,122,173.87 |
Loss on retirement of fixed assets (gains expressed with “-”)
| Loss on retirement of fixed assets (gains expressed with “-”) | 29,981.49 | 168,013.37 |
Loss from fair value changes (gains expressed with “-”)
| Loss from fair value changes (gains expressed with “-”) |
Financial expenses (gains expressed with “-”)
| Financial expenses (gains expressed with “-”) | 4,582,493.50 | 10,451,521.99 |
Investment losses (gains expressed with “-”)
| Investment losses (gains expressed with “-”) | -98,961,069.15 | -90,502,532.06 |
Decreased in deferred income tax assets (increase expressedwith “-”)
| Decreased in deferred income tax assets (increase expressed with “-”) | -54,463,308.92 | -158,856,006.33 |
Increase in deferred income tax liabilities (decrease expressedwith “-”)
| Increase in deferred income tax liabilities (decrease expressed with “-”) | 15,853,171.82 | 1,044,003.02 |
Decrease in inventories (increase expressed with “-”)
| Decrease in inventories (increase expressed with “-”) | 160,454,008.83 | -434,882,037.88 |
Decrease in operating receivables (increase expressed with “-”)
| Decrease in operating receivables (increase expressed with “-”) | 59,527,120.84 | -859,544,649.72 |
Increase in operating payables (decrease expressed with “-”)
| Increase in operating payables (decrease expressed with “-”) | -119,048,149.58 | 600,801,099.08 |
Other
| Other |
Net cash flow from operating activities
| Net cash flow from operating activities | 1,944,786,304.02 | 1,365,377,219.33 |
2. Significant investment and financing activities not involving cash
deposit and withdrawal
| 2. Significant investment and financing activities not involving cash deposit and withdrawal |
Conversion of debt into capital
| Conversion of debt into capital |
Convertible bonds due within one year
| Convertible bonds due within one year |
Fixed assets under financing lease
| Fixed assets under financing lease |
3. Net changes in cash and cash equivalents:
| 3. Net changes in cash and cash equivalents: |
Ending balance of cash
| Ending balance of cash | 5,196,414,341.74 | 3,719,988,820.35 |
Minus: Beginning balance of cash
| Minus: Beginning balance of cash | 3,719,988,820.35 | 3,886,096,513.56 |
Plus: Beginning balance of cash equivalents
| Plus: Beginning balance of cash equivalents |
Minus: Ending balance of cash equivalents
| Minus: Ending balance of cash equivalents |
Net increase of cash and cash equivalents
| Net increase of cash and cash equivalents | 1,476,425,521.39 | -166,107,693.21 |
(2) Composition of cash and cash equivalents
Unit: yuan
| Item | Ending balance | Beginning balance |
I. Cash
| I. Cash | 5,196,414,341.74 | 3,719,988,820.35 |
Including: cash on hand
| Including: cash on hand | 85,806.05 | 80,944.99 |
Bank deposit readily available forpayment
| Bank deposit readily available for payment | 5,194,874,841.18 | 3,718,304,060.33 |
Other monetary capital readily availablefor payment
| Other monetary capital readily available for payment | 1,453,694.51 | 1,603,815.03 |
III. Balance of cash and cash equivalentsat end of period
| III. Balance of cash and cash equivalents at end of period | 5,196,414,341.74 | 3,719,988,820.35 |
54. Notes to items in statement of owner's equity
State the name of “other” items and the amount of adjustment to the ending balance of previous year:
55. Assets with ownership or use rights restricted
Unit: yuan
2022 Full Annual Report
| Item | Ending book value | Causes for restriction |
Monetary capital
| Monetary capital | 96,335,329.20 | Letter of guarantee and bill acceptance security deposit |
Monetary capital
| Monetary capital | 13,000.00 | ETC deposit |
Total
| Total | 96,348,329.20 |
56. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: yuan
| Item | Ending balance in foreign currency | Conversion exchange rate | Ending balance converted to RMB |
Monetary capital
| Monetary capital |
Including: USD
| Including: USD | 2,584,479.12 | 6.9646 | 17,999,863.28 |
Euro
| Euro | 11.92 | 7.4229 | 88.48 |
AUD
| AUD | 1,275.11 | 4.7138 | 6,010.61 |
Accounts receivable
| Accounts receivable |
Including: USD
| Including: USD | 3,392,740.30 | 6.9646 | 23,629,079.09 |
Advance from customers
| Advance from customers |
Including: AUD
| Including: AUD | 179,874.81 | 4.7138 | 847,893.88 |
Euro
| Euro | 11,213.96 | 7.4229 | 83,240.10 |
57. Government subsidies
(1) Basic information of government subsidies
Unit: yuan
| Type | Amount | Presented item | Amount recorded in current profit and loss |
Financial support funds forenterprise cultivation
| Financial support funds for enterprise cultivation | 52,042,148.00 | Other income | 52,042,148.00 |
Embedded software tax rebate
| Embedded software tax rebate | 45,959,892.74 | Other income | 45,959,892.74 |
Special financial funds
| Special financial funds | 10,005,040.00 | Other income | 10,005,040.00 |
Subsidies for factories,infrastructure, equipment, etc.in Chengnan New District
| Subsidies for factories, infrastructure, equipment, etc. in Chengnan New District | 9,247,055.87 | Deferred income |
Subsidies for factories,infrastructure, equipment, etc.in Chengnan New District
| Subsidies for factories, infrastructure, equipment, etc. in Chengnan New District | 371,884.13 | Other income | 371,884.13 |
Intelligent manufacturing,integrated standardization andnew mode application project
| Intelligent manufacturing, integrated standardization and new mode application project | 6,497,000.00 | Other income | 6,497,000.00 |
Special fund for industrialdevelopment
| Special fund for industrial development | 3,626,125.00 | Other income | 3,626,125.00 |
Job subsidies and socialinsurance subsidies
| Job subsidies and social insurance subsidies | 3,508,713.85 | Other income | 3,508,713.85 |
Performance award of ShanghaiHongkou District FinanceBureau
| Performance award of Shanghai Hongkou District Finance Bureau | 3,010,000.00 | Other income | 3,010,000.00 |
Subsidies for R&D investment
| Subsidies for R&D investment | 2,788,200.00 | Other income | 2,788,200.00 |
Future factory project
| Future factory project | 1,118,255.66 | Deferred income |
Future factory project
| Future factory project | 131,744.34 | Other income | 131,744.34 |
Training allowance
| Training allowance | 706,097.00 | Other income | 706,097.00 |
Service charge refund
| Service charge refund | 541,758.65 | Other income | 541,758.65 |
Patent reward fund
| Patent reward fund | 367,040.00 | Other income | 367,040.00 |
2022 Full Annual Report
| VAT exemption or reduction | 10,643.41 | Other income | 10,643.41 |
Other subsidies
| Other subsidies | 708,703.65 | Other income | 708,703.65 |
Total
| Total | 140,640,302.30 | — | 130,274,990.77 |
VIII. Consolidation scope changes
1. Change of merger scope for other reasons
In June 22, 2022, the Company invested and established Hangzhou Jinhe Electric Appliances Co., Ltd. with the registeredcapital of RMB 10 million and shareholding ratio of 100%. Such company belongs to the wholesale and retail industry andmainly engages in the sales of kitchen appliance products of the Company. Now, its registered capital has been paid in and thecompany has been put into operation.IX. Interests in other entities
1. Interests in a subsidiary
(1) Composition of enterprise group
| Subsidiary name | Main operation site | Registration place | Business nature | Shareholding ratio | Way of obtaining | |
| Direct | Indirect | |||||
Beijing ROBAMElectric ApplianceSales Co., Ltd.
| Beijing ROBAM Electric Appliance Sales Co., Ltd. | Beijing | Beijing | Sales of kitchen electric appliance products | 100.00% | Business combination under common control |
Shanghai ROBAMElectric ApplianceSales Co., Ltd.
| Shanghai ROBAM Electric Appliance Sales Co., Ltd. | Shanghai | Shanghai | Sales of kitchen electric appliance products | 100.00% | Business combination under common control |
Hangzhou MingqiElectric Co., Ltd.
| Hangzhou Mingqi Electric Co., Ltd. | Hangzhou | Hangzhou | Sales of kitchen electric appliance products | 100.00% | Acquisition by establishment |
Dize HomeAppliances Trading(Shanghai) Co.,Ltd.
| Dize Home Appliances Trading (Shanghai) Co., Ltd. | Shanghai | Shanghai | Sales of kitchen electric appliance products | 51.00% | Acquisition by investment |
Shengzhou KindeIntelligent KitchenElectric Co., Ltd.
| Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. | Shengzhou | Shengzhou | Production and sales of kitchen electric appliance products | 51.00% | Business combination not under common control |
HangzhouROBAM FuchuangInvestmentManagement Co.,Ltd.
| Hangzhou ROBAM Fuchuang Investment Management Co., Ltd. | Hangzhou | Hangzhou | Assets and investment management | 100.00% | Acquisition by establishment |
Zhejiang CookingFuture TechnologyCo., Ltd.
| Zhejiang Cooking Future Technology Co., Ltd. | Shengzhou | Shengzhou | Intelligent kitchen design | 32.13% | Acquisition by establishment |
Hangzhou JinheElectric AppliancesCo., Ltd
| Hangzhou Jinhe Electric Appliances Co., Ltd | Hangzhou | Hangzhou | Sales of kitchen electric appliance products | 100.00% | Acquisition by establishment |
Note: The basis that the Company holds half or less of the voting rights of Zhejiang Cooking Future Technology Co., Ltd., butstill controls Zhejiang Cooking Future Technology Co., Ltd. basis: since the Company forms a control relationship withShengzhou Kinde, it also forms a control relationship with its holding subsidiary Zhejiang Cooking Future Technology Co.,Ltd. On January 6, 2022, the Company's subsidiary, Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. signed the EquityTransfer Contract with Gongqingcheng Binglan Investment Partnership (limited partnership) , to stipulate that ShengzhouKinde Intelligent Kitchen Electric Co., Ltd. will transfer the subscribed 7% equity of Zhejiang Cooking Future TechnologyCo., Ltd. to Gongqingcheng Binglan Investment Partnership (limited partnership) to change its shareholding ratio from 70%to 63%, and change the shareholding ratio of the Company from 35.70% to 32.13%.
2022 Full Annual Report
(2) Important non-wholly owned subsidiary
Unit: yuan
| Subsidiary name | Minority shareholding ratio | Current profits and losses attributable to minority shareholders | Current dividends declared to minority shareholders | Ending balance of minority equity |
Shengzhou KindeIntelligent KitchenElectric Co., Ltd.
| Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. | 49.00% | -9,994,106.97 | 9,800,000.00 | 118,293,284.50 |
Zhejiang CookingFuture Technology Co.,Ltd.
| Zhejiang Cooking Future Technology Co., Ltd. | 37.00% | -4,104,395.68 | 10,829,229.79 |
(3) Main financial information of important non-wholly owned subsidiaries
Unit: yuan
| Subsidiary name | Ending balance | Beginning balance | ||||||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
Shengzhou KindeIntelligent KitchenElectricCo., Ltd.
| Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. | 152,256,797.00 | 348,855,702.41 | 501,112,499.41 | 203,576,227.80 | 45,292,175.50 | 248,868,403.30 | 215,540,936.45 | 309,621,535.16 | 525,162,471.61 | 204,306,095.17 | 35,111,747.76 | 239,417,842.93 |
ZhejiangCookingFutureTechnology Co.,Ltd.
| Zhejiang Cooking Future Technology Co., Ltd. | 25,723,850.48 | 6,669,996.33 | 32,393,846.81 | 3,125,658.21 | 3,125,658.21 | 18,295,624.97 | 1,856,306.24 | 20,151,931.21 | 4,790,781.30 | 4,790,781.30 |
Unit: yuan
| Subsidiary name | Amount incurred in current period | Amount incurred in previous period | ||||||
| Operating income | Net profit | Total comprehensive income | Cash flow from financing activities | Operating income | Net profit | Total comprehensive income | Cash flow from financing activities | |
ShengzhouKindeIntelligentKitchenElectric Co.,Ltd.
| Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. | 170,999,666.69 | -24,500,532.58 | -24,500,532.58 | -53,403,723.94 | 279,090,651.50 | 37,631,627.30 | 37,631,627.30 | 50,456,257.24 |
ZhejiangCookingFutureTechnologyCo., Ltd.
| Zhejiang Cooking Future Technology Co., Ltd. | 1,291,219.22 | -11,092,961.31 | -11,092,961.31 | -19,686,152.21 | 360,328.16 | -8,887,591.74 | -8,887,591.74 | -11,991,748.70 |
2. Equity in joint venture arrangement or joint venture
(1) Unimportant cooperative enterprises or joint ventures
| Name of cooperative enterprise or joint venture | Main operation site | Registration place | Business nature | Shareholding ratio | Accounting treatment method of investment in cooperative enterprises or joint ventures | |
| Direct | Indirect | |||||
De DietrichTrade(Shanghai) Co.,Ltd.
| De Dietrich Trade (Shanghai) Co., Ltd. | Shanghai | Shanghai | Sales of kitchen appliances | 51.00% | Equity method |
Zhejiang
| Zhejiang | Hangzhou | Hangzhou | Retail industry | 40.00% | Equity method |
2022 Full Annual Report
Tingshuo BrandOperationManagementCo., Ltd.ShaoxingShuaige Kitchenand BathroomTechnology Co.,Ltd.
| Shaoxing Shuaige Kitchen and Bathroom Technology Co., Ltd. | Shaoxing City | Shaoxing City | Manufacture of kitchen appliances | 20.40% | Equity method |
(2) Summary of financial information of unimportant cooperative enterprises and joint ventures
Unit: yuan
| Ending balance/amount incurred in current period | Beginning balance/amount incurred in previous period |
Cooperative enterprise:
| Cooperative enterprise: |
Total book value of investment
| Total book value of investment | 3,824,460.03 | 3,661,700.03 |
Total number of following items byshareholding ratio
| Total number of following items by shareholding ratio |
- Net profit
| - Net profit | 162,760.00 | 208,930.44 |
- Total comprehensive income
| - Total comprehensive income | 162,760.00 | 208,930.44 |
Joint venture:
| Joint venture: |
Total book value of investment
| Total book value of investment | 4,894,045.59 | 1,743,429.88 |
Total number of following items byshareholding ratio
| Total number of following items by shareholding ratio |
- Net profit
| - Net profit | -989,384.29 | -256,570.12 |
- Total comprehensive income
| - Total comprehensive income | -989,384.29 | -256,570.12 |
X. Risks associated with financial instrumentsThe main financial instruments of the Company include accounts receivable, accounts payable, etc. The detailed descriptionof the financial instruments is shown in Note VI. The risks associated with these financial instruments and the riskmanagement policies adopted by the Company to mitigate these risks are described below. The management of the Companyshall manage and monitor these risk exposures to ensure that the above risks are controlled within the limited scope.
1. The Company's various risk management objectives and policies are as follows:
The Company’s risk management is to strike an appropriate balance between risks and benefits, minimize the negative impactof risks on the Company's business performance and maximize the interests of shareholders and other equity investors. Basedon this risk management objective, the basic strategy of the Company's risk management is to determine and analyze variousrisks faced by the Company, establish an appropriate bottom line for risk tolerance, make risk management and timely andreliably supervise various risks to control the risks within the limited scope.
● Market risk - price risk
The Company sells the products at market prices and are therefore subject to fluctuations in these prices.
● Credit risk
The largest credit risk exposure that may cause financial losses of the Company on December 31, 2022 mainly comes fromthe loss of financial assets of the Company caused by the failure of the other party to fulfill its obligations, including the bookvalue of financial assets recognized in the consolidated balance sheet.In order to reduce credit risks, the Company shall assign special personnel to determine the credit limit, conduct creditexamination and approval, and implement other monitoring procedures to ensure that necessary measures are taken to recoveroverdue claims. Moreover, the Company shall review the recovery of each single receivable on each balance sheet date toensure that adequate bad debt provisions are withdrawn for unrecoverable amounts. Therefore, the Company's managementbelieves that the Company's credit risk has been greatly reduced.The Company's working capital is deposited in banks with high credit rating, so the credit risk of working capital is low.There is no significant credit concentration risk due to the Company's risk exposure to multiple parties and customers.
2022 Full Annual Report
The Company has adopted the necessary policies to ensure that all sales customers have good credit records. The Companyhas no significant credit concentration risk.Total amount of the top 5 accounts receivable: RMB 1,419,688,838.84.Total amount of the top 5 other receivables: RMB 56,109,793.65.
● Liquidity risk:
The risk that the Company is unable to perform its financial obligations at maturity. The Company manages its liquidity riskby ensuring that it has sufficient liquidity to meet maturing obligations without causing unacceptable losses or damage to thecredibility of the business. The management of the Company has conducted a detailed inspection on the working capital of theCompany and regularly analyzed the debt structure, term and bank line of credit to ensure sufficient funds. The conclusion isthat the Company has sufficient funds to meet the needs of the Company's short-term debts and capital expenditures. Thefinancial assets and financial liabilities held by the Company are analyzed as follows according to the maturity ofundiscounted remaining contractual obligations:
Amount on December 31, 2022:
| Item | Within one year | One to two years | Two to five years | More than five years | Total |
| Financial assets | |||||
| Monetary capital | 5,292,762,670.94 | 5,292,762,670.94 | |||
| Trading financial assets | 2,511,844,508.00 | 2,511,844,508.00 | |||
| Notes receivable | 881,773,341.71 | 881,773,341.71 | |||
| Accounts receivable | 1,689,606,828.94 | 1,689,606,828.94 | |||
| Other receivables | 80,429,057.84 | 80,429,057.84 | |||
| Financial liabilities | |||||
| Short-term borrowing | 51,723,429.99 | 51,723,429.99 | |||
| Notes payable | 872,550,306.86 | 872,550,306.86 | |||
| Accounts payable | 2,418,755,167.31 | 2,418,755,167.31 | |||
| Other payables | 281,878,208.25 | 281,878,208.25 | |||
| Payroll payable | 153,942,329.88 | 153,942,329.88 | |||
| Other current liabilities | 120,126,501.73 | 120,126,501.73 | |||
| Non-current liabilities due within a year | 5,720,175.21 | 5,720,175.21 | |||
| Lease liabilities | 4,926,795.88 | 8,802,594.45 | 4,859,576.34 | 18,588,966.67 |
● Sensitivity analysis of foreign exchange risk
The Company's exchange rate risk is mainly related to US dollar, Euro, Australian dollar and other currencies. The foreignexchange risk borne by the Company is mainly related to USD (which shall be modified according to the actual situation), andthe main business activities of the Company are denominated and settled in RMB. As of December 31, 2022, the Company'sassets and liabilities were RMB balance, except the foreign currency balance of the assets and liabilities in Note “Foreigncurrency monetary items”. The foreign exchange risks arising from the assets and liabilities of such foreign currency balancemay have an impact on the Company's business performance.The Company pays close attention to the exchange rate movement on its foreign exchange risks. and has not taken anymeasures to avoid foreign exchange risks.
XI. Fair value disclosure
1. Ending fair value of assets and liabilities measured with fair value
Unit: yuan
| Item | Ending fair value | |||
| Measurement of fair value at the first level | Measurement of fair value at the second level | Measurement of fair value at the third level | Total | |
I. Continuous fair valuemeasurement
| I. Continuous fair value measurement | -- | -- | -- | -- |
(I) Trading financialassets
| (I) Trading financial assets | 2,511,844,508.00 | 2,511,844,508.00 |
2022 Full Annual Report
| 1. Financial assets measured with fair value and with the changes included in current profit and loss | 2,511,844,508.00 | 2,511,844,508.00 |
(2) Equity instrument
investments
| (2) Equity instrument investments | 2,116,023.22 | 2,116,023.22 |
Total assetscontinuously measuredat fair value
| Total assets continuously measured at fair value | 2,513,960,531.22 | 2,513,960,531.22 |
II. Non-continuous fairvalue measurement
| II. Non-continuous fair value measurement | -- | -- | -- | -- |
2. Continuous and non-continuous measurement items of fair value at third level, qualitative and
quantitative information on valuation techniques adopted and important parameters
| Item | December 31, 2022 Fair value | Valuation technique | Significant unobservable value | Relationship between unobservable value and fair value |
| Bank financial products | 2,511,844,508.00 | Best estimate of fair value | Investment cost | — |
| Other equity instrument investments | 2,116,023.22 | Best estimate of fair value | Investment cost | — |
Note: Due to the deterioration of the business environment, business conditions and financial conditions of the investedenterprise Suzhou Industrial Park Ruican Investment Enterprise (limited partnership), the Company takes zero yuan as areasonable estimate of the fair value for measurement.XII. Related parties and related transactions
1. Parent company of the Company
| Parent company name | Registration place | Business nature | Registered capital | Shareholding ratio of the parent company in the Company | Voting right ratio of the parent company in the Company |
Hangzhou ROBAMIndustrial GroupCo., Ltd.
| Hangzhou ROBAM Industrial Group Co., Ltd. | Hangzhou, Zhejiang | Investment and industrial management | RMB 60 million | 49.68% | 49.68% |
The ultimate controlling party of the Company: Ren Jianhua
2. Subsidiaries of the Company
See the Notes for the details of the Company's subsidiaries.
3. Cooperative enterprises and joint ventures
See the note for important cooperative enterprises or joint ventures of the Company.Other cooperative enterprises or joint ventures that made related party transactions with the Company in the current period, orformed the balance of related party transactions with the Company in the previous periods are as follows:
| Name of cooperative enterprise or joint venture | Relationship with the Company |
Hangzhou Amblem Kitchenware Co., Ltd.
| Hangzhou Amblem Kitchenware Co., Ltd. | Controlled by the same final controller |
Hangzhou ROBAM Gas Station Co., Ltd.
| Hangzhou ROBAM Gas Station Co., Ltd. | Controlled by the same final controller |
Hangzhou Nbond Nonwoven Co., Ltd.
| Hangzhou Nbond Nonwoven Co., Ltd. | Controlled by the same final controller |
Hangzhou Yuhang Matt Spray Painting Factory
| Hangzhou Yuhang Matt Spray Painting Factory | Other related parties |
Garden Hotel Hangzhou
| Garden Hotel Hangzhou | Other related parties |
Hangzhou Bonyee Daily Necessity Technology Co., Ltd.
| Hangzhou Bonyee Daily Necessity Technology Co., Ltd. | Controlled by the same final controller |
Shaoxing Kinde Electric Appliance Co., Ltd.
| Shaoxing Kinde Electric Appliance Co., Ltd. | Other related parties |
2022 Full Annual Report
| Hangzhou Guoguang Touring Commodity Co., Ltd. | Controlled by the same final controller |
Hangzhou Seazons Health Care Products Co., Ltd.
| Hangzhou Seazons Health Care Products Co., Ltd. | Controlled by the same final controller |
Hangzhou Linping ROBAM Charity Foundation
| Hangzhou Linping ROBAM Charity Foundation | Other related parties |
4. Related transaction
(1) Related transaction of purchases and sales of goods, provision and acceptance of services
Purchase of goods/acceptance of services
Unit: yuan
| Related party | Related transaction content | Amount incurred in current period | Approved transaction quota | Whether the transaction quota is exceeded | Amount incurred in previous period |
Hangzhou AmblemKitchenware Co.,Ltd.
| Hangzhou Amblem Kitchenware Co., Ltd. | Product purchase | 28,302,583.22 | No | 1,846,329.38 |
Hangzhou YuhangMatt SprayPainting Factory
| Hangzhou Yuhang Matt Spray Painting Factory | Labor receiving | 9,589,975.85 | No | 9,560,985.98 |
Hangzhou SeazonsHealth CareProducts Co., Ltd.
| Hangzhou Seazons Health Care Products Co., Ltd. | Product purchase | 2,704,152.47 | No | 6,339,452.12 |
Shaoxing ShuaigeKitchen andBathroomTechnology Co.,Ltd.
| Shaoxing Shuaige Kitchen and Bathroom Technology Co., Ltd. | Product purchase | 1,983,294.00 | No |
Hangzhou ROBAMGas Station Co.,Ltd.
| Hangzhou ROBAM Gas Station Co., Ltd. | Product purchase | 995,343.75 | No | 854,444.59 |
Zhejiang TingshuoBrand OperationManagement Co.,Ltd.
| Zhejiang Tingshuo Brand Operation Management Co., Ltd. | Labor receiving | 400,760.00 | No |
HangzhouGuoguang TouringCommodity Co.,Ltd.
| Hangzhou Guoguang Touring Commodity Co., Ltd. | Product purchase | 106,473.99 | No | 94,897.35 |
Hangzhou NbondNonwoven Co.,Ltd.
| Hangzhou Nbond Nonwoven Co., Ltd. | Product purchase | 95,302.65 | No | 86,436.20 |
Hangzhou BonyeeDaily NecessityTechnology Co.,Ltd.
| Hangzhou Bonyee Daily Necessity Technology Co., Ltd. | Product purchase | 8,728.42 | No | 424.78 |
Garden HotelHangzhou
| Garden Hotel Hangzhou | Labor receiving | No | 201,474.34 |
Total
| Total | — | 44,186,614.35 | 18,984,444.74 |
Selling commodities/offering labor
Unit: yuan
| Related party | Related transaction content | Amount incurred in current period | Amount incurred in previous period |
Hangzhou AmblemKitchenware Co., Ltd.
| Hangzhou Amblem Kitchenware Co., Ltd. | Selling goods | 5,814,674.29 | 11,650,995.14 |
Hangzhou Linping ROBAMCharity Foundation
| Hangzhou Linping ROBAM Charity Foundation | Selling goods | 3,914,955.70 |
De Dietrich Trade (Shanghai)
| De Dietrich Trade (Shanghai) | Selling goods | 1,326,580.82 | 1,190,969.50 |
2022 Full Annual Report
Co., Ltd.Hangzhou Nbond NonwovenCo., Ltd.
| Hangzhou Nbond Nonwoven Co., Ltd. | Selling goods | 10,746.90 |
Total
| Total | — | 11,066,957.71 | 12,841,964.64 |
(2) Related-party lease
The Company as the lessor:
Unit: yuan
| Name of lessee | Type of leased assets | Lease income recognized in the current period | Lease income recognized in the previous period |
Hangzhou ROBAM IndustrialGroup Co., Ltd.
| Hangzhou ROBAM Industrial Group Co., Ltd. | House | 28,800.00 | 28,800.00 |
The Company as the lessee:
Unit: yuan
| Name of lessor | Type of leased assets | Simplified treatment of rental costs for short-term lease and low-value asset lease | Variable lease payments not included in the measurement of lease liabilities (if applicable) | Rent paid | Interest expenses incurred on lease liabilities | Increased right-of-use assets | |||||
| Amount incurred in current period | Amount incurred in previous period | Amount incurred in current period | Amount incurred in previous period | Amount incurred in current period | Amount incurred in previous period | Amount incurred in current period | Amount incurred in previous period | Amount incurred in current period | Amount incurred in previous period | ||
HangzhouROBAMIndustrial GroupCo., Ltd.
| Hangzhou ROBAM Industrial Group Co., Ltd. | House | 550,024.57 | 550,024.57 |
(3) Key management personnel remuneration
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period |
Total remuneration
| Total remuneration | 14,242,333.46 | 11,350,618.33 |
5. Accounts receivable and payable by related parties
(1) Receivables
Unit: yuan
| Item name | Related party | Ending balance | Beginning balance | ||
| Book balance | Provision for bad debt | Book balance | Provision for bad debt | ||
Accountsreceivable
| Accounts receivable | Hangzhou Amblem Kitchenware Co., Ltd. | 1,432,274.00 |
Advance tosupplier
| Advance to supplier | Hangzhou Seazons Health Care Products Co., Ltd. | 3,769.89 |
Total
| Total | 1,436,043.89 |
(2) Payables
Unit: yuan
2022 Full Annual Report
| Item name | Related party | Ending book balance | Beginning book balance |
Accounts payable
| Accounts payable | Hangzhou Yuhang Matt Spray Painting Factory | 3,043,849.87 | 3,543,430.78 |
Accounts payable
| Accounts payable | Hangzhou ROBAM Gas Station Co., Ltd. | 2,548,095.18 | 1,723,356.74 |
Accounts payable
| Accounts payable | Hangzhou Guoguang Touring Commodity Co., Ltd. | 6,963.19 | 23,605.20 |
Accounts payable
| Accounts payable | Hangzhou Amblem Kitchenware Co., Ltd. | 4,386,391.83 |
Accounts payable
| Accounts payable | Shaoxing Shuaige Kitchen and Bathroom Technology Co., Ltd. | 298,021.70 |
Other payables
| Other payables | Hangzhou Yuhang Matt Spray Painting Factory | 200,000.00 | 200,000.00 |
Other payables
| Other payables | Hangzhou Guoguang Touring Commodity Co., Ltd. | 2,000.00 | 2,000.00 |
Total
| Total | 10,485,321.77 | 5,492,392.72 |
XIII. Share-based payment
1. Overall status of share-based payment
?Applicable ? Not applicable
2. Equity-settled share-based payments
?Applicable ? Not applicableSee XVI. Other important issues, stock option incentive plan (2) Equity-settled share-based payments
3. Share-based payment settled by cash
□ Applicable ?Not applicable
4. Modification and termination of share-based payment
5. Other
XIV. Commitment and contingencies
1. Important commitment issues
Important commitments on balance sheet dateThe Company has committed to invest RMB 4 million in Tingshuo Brand, an associated company of the Company. At present,RMB 2 million has been paid in, accounting for 40% of the equity, and RMB 2 million has not been paid. Except for theabove commitments, the Company has no other major commitments as of the date of presentation of the financial statements.
2. Contingencies
(1) Important contingencies on balance sheet date
The Company had no significant contingencies to be disclosed as of December 31, 2022.
(2) Explanation even if the Company has no important contingencies to be disclosed
The Company has no important contingencies to be disclosed.
2022 Full Annual Report
3. Other
XV. Post-balance sheet events
1. Important non-adjustment items
(1) 2023 stock option incentive plan
On April 25, 2023, the 14th meeting of the Fifth Board of Directors of the Company deliberated and approved the Company's“Proposal on 2023 Stock Option Incentive Plan (draft) of the Company and its Abstract”. The incentive plan mainly takes theoperating income from 2023 to 2025 as the performance evaluation target, and provides stock option incentive to middlemanagement and core technology (business) backbones working in the Company (including subsidiaries). The proposal stillshall be subject to the deliberation and approval by the Company's annual general meeting of shareholders in 2022.
(2) Cancellation of partial stock options in the 2021 stock option incentive planOn April 25, 2023, the 14thmeeting of the Fifth Board of Directors of the Company deliberated and approved the “Proposalon Cancellation of the 2021 Stock Option Incentive Plan for Failure to Meet the Exercise Conditions during the SecondExercise Period” and the “Proposal on the Cancellation of Partial Stock Options in the 2021 Stock Option Incentive Plan”. Asa failure of meeting the exercise conditions of the second exercise period of stock options in 2021, the Company will cancel831,000 stock options held by the incentive objects that have been granted in the second exercise period but do not meet theexercise conditions; As 13 incentive objects under the Company's 2021 Stock Option Incentive Plan no longer meet theincentive conditions due to their resignation, thus the Company will cancel 114,000 stock options granted to but not exercisedby the above 13 incentive objects, totaling 945,000 stock options.
(3) Cancellation of partial stock options in the 2022 stock option incentive planOn April 25, 2023, the 14th meeting of the Fifth Board of Directors of the Company deliberated and approved the “Proposalon Cancellation of the 2022 Stock Option Incentive Plan for Failure to Meet the Exercise Conditions during the First ExercisePeriod” and the “Proposal on the Cancellation of Partial Stock Options in the 2022 Stock Option Incentive Plan.” As a failureof meeting the exercise conditions of the first exercise period of stock options in 2022 , the Company will cancel 1,359,000stock options held by the incentive objects that have been granted in the first exercise period but do not meet the exerciseconditions; As 13 incentive objects under the Company's 2022 Stock Option Incentive Plan no longer meet the incentiveconditions due to their resignation, thus the Company will cancel 240,000 stock options granted to but not exercised by theabove 13 incentive objects; As 1 incentive object under the Company's 2022 Stock Option Incentive Plan no longer meets theincentive conditions due to his/her death, thus the Company will cancel 10,000 stock options granted to but not exercised bythe above 1 incentive object, totaling 1,609,000 stock options;
(4) Post-term debt restructuring matters
As of the reporting date, the newly signed accounts receivable debt repayment agreement of the Company amounted to RMB17,185,500, including RMB 6,191,400 for which online signing and delivery procedures have been completed; The amount ofdebt repayment agreement signed in 2022 for which online signing and delivery procedures has been completed was RMB3,453,100.
2. Profit distribution
| Item | Amount |
Profit or dividend to be distributed
| Profit or dividend to be distributed | 472,047,458.00 |
On April 25, 2023, according to the “Proposal on 2022 Annual Profit Distribution Plan” deliberated and adopted by the 14thmeeting of the fifth Board of Directors of the Company, based on the total share capital of 944,094,916 (the existing totalshare capital is 949,024,050 shares, excluding the repurchased 4,929,134 shares), the Company intends to pay a cash dividendof RMB 5 (tax-inclusive) per 10 shares to all shareholders, for a total of RMB 472,047,458.00. The proposal still shall besubject to the deliberation and approval by the Company's annual general meeting of shareholders in 2022.Except for the aforementioned post balance sheet events, the Company has no other major post-balance sheet events.
XVI. Other important issues
1. Stock option incentive plan
(1) Overall status of share-based payment
| Item | Conditions |
Total amount of equity instruments granted by the Company in this year
| Total amount of equity instruments granted by the Company in this year | 4,780,000.00 |
Total amount of equity instruments exercised by the Company in this year
| Total amount of equity instruments exercised by the Company in this year |
2022 Full Annual Report
| Item | Conditions |
Total amount of the Company's equity instruments invalidate in this year
| Total amount of the Company's equity instruments invalidate in this year | 1,264,000.00 |
Range of the exercise price of the Company's stock options outstanding at the endof the year and the remaining term of the contract
| Range of the exercise price of the Company's stock options outstanding at the end of the year and the remaining term of the contract | The exercise price of the 2021 stock option incentive plan is RMB 36.57 per share, with a remaining term of 1-2 years; The exercise price of the 2022 stock option incentive plan is RMB 29.27 per share, with a remaining term of 1-3 years. |
Range of the exercise price of the Company's other equity instrumentsoutstanding at the end of the year and the remaining term of the contract
| Range of the exercise price of the Company's other equity instruments outstanding at the end of the year and the remaining term of the contract |
1) 2021 stock option incentive plan
On April 14, 2021, the Company held the 4thmeeting of the Fifth Board of Directors. The meeting deliberated and approved“Business Partner Shareholding Plan (Draft)”, “2021 Stock Option Incentive Plan (Draft)” and other relevant proposals, anddecided to take the operating income and non-net profit after deduction belonging to the parent company from 2021 to 2023as the main performance assessment objectives, implemented the business partner shareholding plan for the core managers inthe Company (including its subsidiaries) who play an important role in the overall performance and development of theCompany, including directors (excluding independent directors), general managers, deputy general managers, senior directorsand directors; implemented the stock option incentive for the Company's middle management and core technology (business)backbones, totaling 142 people.On April 30, 2021, the first extraordinary shareholders' meeting of the Company in 2021 deliberated and approved the aboveproposals, and determined May 10, 2021 as the first grant date of stock options in this incentive plan. In 2021, 3.04 millionstock options was actually granted to 138 people.On April 19, 2022, the 10th meeting of the Fifth Board of Directors and the 9
thmeeting of the Fifth Board of Supervisors ofthe Company deliberated and approved the “Proposal on Cancellation of the 2021 Stock Option Incentive Plan for Failure toMeet the Exercise Conditions during the First Exercise Period” and the “Proposal on the Cancellation of Partial Stock Optionsin the 2021 Stock Option Incentive Plan” and other proposals. Due to the failure to meet the exercise conditions of stockoptions in 2021 during the first exercise period, the Company will cancel 1,184,000 stock options held by the incentiveobjects that have been granted in the first exercise period but do not meet the exercise conditions; As 4 incentive objectsunder the Company's 2021 Stock Option Incentive Plan no longer meet the incentive conditions due to their resignation, thusthe Company will cancel 80,000 stock options granted to but not exercised by the above 4 incentive objects. On April 26,2022, after verification and confirmation by Shenzhen Branch of China Securities Depository and Clearing CorporationLimited, the cancellation of the aforementioned 1,264,000 stock options has been completed.
2) 2022 stock option incentive plan
On March 31, 2022, the 9th
meeting of the Fifth Board of Directors of the Company deliberated and approved the Company's“2022 Stock Option Incentive Plan (draft)”. The incentive plan mainly takes the operating income from 2022 to 2024 as theperformance evaluation target, and provides stock option incentive to 285 middle management and core technology (business)backbones working in the Company (including subsidiaries), with an exercise price of 29.27 yuan/share. The validity periodof stock options in this incentive plan shall be from the of grant of stock options to the date of full exercise or cancellation ofstock options granted to the incentive object, with a maximum of 48 months. The vesting period of the stock options in thisincentive plan shall be 12 months, 24 months and 36 months respectively from the corresponding grant date of the stockoptions, and the exercise ratio of each exercise period shall be 30%, 30% and 40% respectively.Assuming that the incentive objects of the granted stock option exercise all of their options during each exercise period, thecost amortization of the granted stock option from 2022 to 2025 is as follows:
On April 21, 2022, the Company held the first extraordinary general meeting of shareholders to deliberate and adopt the“Proposal on 2022 Stock Option Incentive Plan (draft) of the Company and its Abstract” and other relevant proposals On May10, 2022, the Company's 11th meeting of the fifth Board of Directors deliberated and adopted the “Proposal on GrantingStock Options to Incentive Objects”. The stock option incentive is actually granted to 282 person on May 10, 2022, with thequantity of 4.78 million, exercise price of RMB 29.27 per share. On May 26, 2022, the registration of stock option grants wascompleted.
(2) Equity-settled share-based payments
| Item | Conditions |
Quantity of stock
option (10,000)
| Quantity of stock option (10,000) | Total expenses to be amortized (10,000 yuan) | 2022 (10,000 yuan) | 2023 (10,000 yuan) | 2024 (10,000 yuan) | 2025 (10,000 yuan) |
481.00
| 481.00 | 2,031.74 | 757.58 | 746.03 | 437.23 | 90.91 |
2022 Full Annual Report
| Item | Conditions |
| Method for determining the fair value of equity instruments on the grant date | The Company evaluates the fair value of the stock options with the internationally recognized BlackScholes option pricing model |
| Basis for the determination of the number of viable equity instruments | Optimum estimation for the number of viable equity instruments |
| Reasons for significant differences between the estimates of this year and the previous year | N/A |
| Accumulated amount of equity-settled share-based payments recorded in capital reserves | 7,854,225.96 |
| Total amount of expenses recognized by equity-settled share-based payments in this year | 4,735,460.48 |
2. Corporate debt restructuring matters
As of December 31, 2022, the Company has signed the following project mortgage property agreements and completed theonline signing procedures of the property as follows:
| Item | Amount of debt agreement signed | Including: those completing the online signing procedures and delivery procedures Fees for procedures | Amount of those not completing the online signing procedures and delivery procedures |
Real estate customers (38)
| Real estate customers (38) | 164,232,192.36 | 50,337,125.23 | 113,895,067.13 |
Total
| Total | 164,232,192.36 | 50,337,125.23 | 113,895,067.13 |
The total balance of accounts receivable involved in the project mortgage property agreements signed between the Companyand the aforementioned real estate customers is RMB 164,232,200, of which RMB 50,337,100 has been completed withonline signing or delivery procedures, the recognition of claims receivable of which has been terminated. The fair value of themortgaged property at the time of debt restructuring is reported in other non-current assets. The fair value of the property isRMB 51,514,000, which was confirmed through public market inquiry. The Company pays the difference of RMB 1,176,900in cash, the debt restructuring matters do not generate any restructuring gains or losses at the time of restructuring; Theremaining RMB 113,895,100 has not yet been completed with online registration of the house and the Company has notterminated the recognition of claims receivable, and make the provision for bad debts based on an expected credit loss rate of20%.The Company had no other important matters to be disclosed as of December 31, 2022.XVII. Notes on main items of parent company's financial statement
1. Accounts receivable
(1) Classified disclosure of accounts receivable
Unit: yuan
| Category | Ending balance | Beginning balance | ||||||||
| Book balance | Provision for bad debt | Book value | Book balance | Provision for bad debt | Book value | |||||
| Amount | Proportion | Amount | Accruing proportion | Amount | Proportion | Amount | Accruing proportion | |||
Accountsreceivable ofprovision forbad debt bysingle item
| Accounts receivable of provision for bad debt by single item | 1,543,955,986.32 | 58.11% | 972,062,395.33 | 62.96% | 571,893,590.99 | 628,127,248.06 | 29.39% | 551,636,286.07 | 87.82% | 76,490,961.99 |
Where:
| Where: |
Accountsreceivable ofprovision forbad debt bycombination
| Accounts receivable of provision for bad debt by combination | 1,112,930,148.56 | 41.89% | 64,280,210.58 | 5.78% | 1,048,649,937.98 | 1,509,321,539.72 | 70.61% | 89,120,674.12 | 5.90% | 1,420,200,865.60 |
Where:
| Where: |
Combinationof relatedparty
| Combination of related party | 99,792,768.36 | 3.76% | 99,792,768.36 | 13,799,399.00 | 0.64% | 13,799,399.00 |
Accounts
| Accounts | 1,013,13 | 38.13% | 64,280,210. | 6.34% | 948,857,16 | 1,495,522,1 | 69.97% | 89,120,674. | 5.96% | 1,406,401,4 |
2022 Full Annual Report
| receivable of provision for bad debt by expected credit loss combination based on aging features | 7,380.20 | 58 | 9.62 | 40.72 | 12 | 66.60 |
Total
| Total | 2,656,886,134.88 | 100.00% | 1,036,342,605.91 | 39.01% | 1,620,543,528.97 | 2,137,448,787.78 | 100.00% | 640,756,960.19 | 29.98% | 1,496,691,827.59 |
Provision for bad debt by single item:
Unit: yuan
| Name | Ending balance | |||
| Book balance | Provision for bad debt | Accruing proportion | Reasons for provision | |
Unit 1
| Unit 1 | 657,344,204.78 | 657,344,204.78 | 100.00% | Difficult to recover |
Unit 2
| Unit 2 | 585,673,768.95 | 175,702,130.69 | 30.00% | Debt overdue |
Unit 3
| Unit 3 | 112,811,043.19 | 42,342,003.78 | 37.53% | Debt overdue |
Unit 4
| Unit 4 | 27,754,259.57 | 18,956,340.20 | 68.30% | Debt default |
Unit 5
| Unit 5 | 24,817,347.78 | 4,963,469.56 | 20.00% | Debt overdue |
Unit 6
| Unit 6 | 21,370,090.54 | 14,959,063.38 | 70.00% | Debt default |
Unit 7
| Unit 7 | 20,263,294.09 | 5,751,727.45 | 28.38% | Debt overdue |
Unit 8
| Unit 8 | 16,210,905.78 | 11,325,134.05 | 69.86% | Debt default |
Unit 9
| Unit 9 | 14,139,851.56 | 8,965,986.59 | 63.41% | Debt default |
Unit 10
| Unit 10 | 10,185,685.90 | 2,157,682.25 | 21.18% | Debt overdue |
Unit 11
| Unit 11 | 9,475,265.17 | 6,632,685.62 | 70.00% | Debt default |
Unit 12
| Unit 12 | 9,181,060.96 | 6,426,742.67 | 70.00% | Debt default |
Unit 13
| Unit 13 | 8,440,716.52 | 4,288,717.32 | 50.81% | Debt default |
Unit 14
| Unit 14 | 8,009,318.82 | 2,345,903.11 | 29.29% | Debt overdue |
Unit 15
| Unit 15 | 4,025,730.93 | 2,818,011.65 | 70.00% | Debt default |
Unit 16
| Unit 16 | 14,253,441.78 | 7,082,592.23 | 49.69% | It is expected that there is recovery risk |
Total
| Total | 1,543,955,986.32 | 972,062,395.33 |
Provision for bad debt by combination: accounts receivable of provision for bad debt by expected credit loss combinationbased on aging features
Unit: yuan
| Name | Ending balance | ||
| Book balance | Provision for bad debt | Accruing proportion | |
Within 1 year
| Within 1 year | 876,938,472.66 | 43,846,923.63 | 5.00% |
1~2 years
| 1~2 years | 106,716,453.33 | 10,671,645.33 | 10.00% |
2~3 years
| 2~3 years | 20,374,364.02 | 4,074,872.80 | 20.00% |
3~4 years
| 3~4 years | 5,916,513.91 | 2,958,256.96 | 50.00% |
4~5 years
| 4~5 years | 2,315,322.08 | 1,852,257.66 | 80.00% |
More than 5 years
| More than 5 years | 876,254.20 | 876,254.20 | 100.00% |
Total
| Total | 1,013,137,380.20 | 64,280,210.58 |
Description of the basis for determining the combination:
Provision for bad debt by combination: accounts receivable of provision for bad debt by combination of related parties
Unit: yuan
| Name | Ending balance | ||
| Book balance | Provision for bad debt | Accruing proportion | |
Combination of related party
| Combination of related party | 99,792,768.36 |
2022 Full Annual Report
| Total | 99,792,768.36 |
Description of the basis for determining the combination:
If the bad debt provision of accounts receivable is withdrawn according to the general model of expected credit loss, pleaserefer to the disclosure method of other receivables to disclose the relevant information of bad debt provision:
□ Applicable ?Not applicable
Disclosure by aging
Unit: yuan
| Aging | Book balance |
Within 1 year (including 1 year)
| Within 1 year (including 1 year) | 1,304,372,596.67 |
Within 1 year (including 1 year)
| Within 1 year (including 1 year) | 1,304,372,596.67 |
1~2 years
| 1~2 years | 1,288,794,867.92 |
2~3 years
| 2~3 years | 51,406,707.51 |
More than 3 years
| More than 3 years | 12,311,962.78 |
3~4 years
| 3~4 years | 7,674,961.53 |
4~5 years
| 4~5 years | 3,585,776.77 |
More than 5 years
| More than 5 years | 1,051,224.48 |
Total
| Total | 2,656,886,134.88 |
(2) Provision, recovery or reversal of bad debt reserves in the current periodProvision for bad debts in current period:
Unit: yuan
| Category | Beginning balance | Changes in amount in current period | Ending balance | |||
| Provision | Recovered or reversed | Canceled after verification | Other | |||
Provision forbad debt ofaccountsreceivable
| Provision for bad debt of accounts receivable | 640,756,960.19 | 420,476,255.80 | 24,667,546.54 | 223,063.54 | 1,036,342,605.91 |
Total
| Total | 640,756,960.19 | 420,476,255.80 | 24,667,546.54 | 223,063.54 | 1,036,342,605.91 |
(3) Receivables with top 5 ending balances by debtor
Unit: yuan
| Unit name | Ending balance of accounts receivable | Proportion in total ending balance of accounts receivable | Ending balance of bad debt provision |
Unit 1
| Unit 1 | 585,494,572.95 | 22.04% | 175,648,371.89 |
Unit 2
| Unit 2 | 452,376,997.98 | 17.03% | 452,376,997.98 |
Unit 3
| Unit 3 | 200,404,163.35 | 7.54% | 10,020,208.17 |
Unit 4
| Unit 4 | 95,125,955.20 | 3.58% | 95,125,955.20 |
Unit 5
| Unit 5 | 62,543,420.42 | 2.35% | 62,543,420.42 |
Total
| Total | 1,395,945,109.90 | 52.54% |
(4) Amount of assets and liabilities formed by transferring accounts receivable and continuinginvolvement
| Asset item | Year-end balance | Liability item | Year-end balance |
| Accounts receivable with recourse factoring | 573,429.99 | Short-term borrowing | 573,429.99 |
2022 Full Annual Report
2. Other receivables
Unit: yuan
| Item | Ending balance | Beginning balance |
Dividends receivable
| Dividends receivable | 10,200,000.00 |
Other receivables
| Other receivables | 73,700,676.77 | 66,149,239.78 |
Total
| Total | 83,900,676.77 | 66,149,239.78 |
(1) Dividends receivable
1) Classification of dividends receivable
Unit: yuan
| Project (or investee) | Ending balance | Beginning balance |
Shengzhou Kinde Intelligent KitchenElectric Co., Ltd.
| Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. | 10,200,000.00 |
Total
| Total | 10,200,000.00 |
(2) Other receivables
1) Other receivables classified by nature
Unit: yuan
| Nature of payment | Ending book balance | Beginning book balance |
Collection by third party
| Collection by third party | 50,695,825.81 | 39,389,486.99 |
Deposit and margin
| Deposit and margin | 30,213,932.48 | 41,547,121.13 |
Associated contact
| Associated contact | 4,064,000.00 | 4,064,000.00 |
Withheld amount
| Withheld amount | 4,337,682.15 | 2,646,050.39 |
Imprest
| Imprest | 1,972,794.63 | 966,513.08 |
Other
| Other | 6,022.00 | 6,021.99 |
Total
| Total | 91,290,257.07 | 88,619,193.58 |
2) Provision for bad debt
Unit: yuan
| Provision for bad debt | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit losses over the next 12 months | Expected credit loss for the entire duration (no credit impairment) | Expected credit loss for the entire duration (credit impairment has occurred) |
Balance on January 1,2022
| Balance on January 1, 2022 | 22,469,953.80 | 22,469,953.80 |
Balance on January 1,2022 in current period
| Balance on January 1, 2022 in current period |
Withdrawn in currentperiod
| Withdrawn in current period | -4,880,373.50 | -4,880,373.50 |
Balance on December 31,2022
| Balance on December 31, 2022 | 17,589,580.30 | 17,589,580.30 |
Large book balance change in the current period of provision for loss
□ Applicable ?Not applicable
Disclosure by aging
Unit: yuan
| Aging | Book balance |
Within 1 year (including 1 year)
| Within 1 year (including 1 year) | 66,837,836.02 |
2022 Full Annual Report
| Within 1 year (including 1 year) | 66,837,836.02 |
1~2 years
| 1~2 years | 6,804,424.74 |
2~3 years
| 2~3 years | 3,014,521.11 |
More than 3 years
| More than 3 years | 14,633,475.20 |
3~4 years
| 3~4 years | 2,701,746.80 |
4~5 years
| 4~5 years | 1,591,300.00 |
More than 5 years
| More than 5 years | 10,340,428.40 |
Total
| Total | 91,290,257.07 |
3) Provision, recovery or reversal of bad debt reserves in the current periodProvision for bad debts in current period:
Unit: yuan
| Category | Beginning balance | Changes in amount in current period | Ending balance | |||
| Provision | Recovered or reversed | Canceled after verification | Other | |||
Provision forbad debt ofotherreceivables
| Provision for bad debt of other receivables | 22,469,953.80 | -4,880,373.50 | 17,589,580.30 |
Total
| Total | 22,469,953.80 | -4,880,373.50 | 17,589,580.30 |
4) Other receivables with top 5 ending balances by debtor
Unit: yuan
| Unit name | Nature of payment | Ending balance | Aging | Proportion in total other ending balance receivable | Ending balance of bad debt provision |
Unit 1
| Unit 1 | Collection by third party | 33,740,160.20 | Within 1 year | 36.96% | 1,687,008.01 |
Unit 2
| Unit 2 | Collection by third party | 9,589,038.27 | Within 1 year | 10.50% | 479,451.91 |
Unit 3
| Unit 3 | Unit security deposit | 4,928,000.00 | More than 5 years | 5.40% | 4,928,000.00 |
Unit 4
| Unit 4 | Collection by third party | 4,428,009.63 | 0~5 years | 4.85% | 221,400.48 |
Unit 5
| Unit 5 | Associated contact | 4,064,000.00 | More than 5 years | 4.45% | 4,064,000.00 |
Total
| Total | 56,749,208.10 | 62.16% | 11,379,860.40 |
3. Long-term equity investment
Unit: yuan
| Item | Ending balance | Beginning balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
Investment insubsidiaries
| Investment in subsidiaries | 267,279,396.10 | 20,400,000.00 | 246,879,396.10 | 257,032,370.17 | 20,400,000.00 | 236,632,370.17 |
Investment inassociated enterprisesand joint enterprises
| Investment in associated enterprises and joint enterprises | 4,890,453.34 | 4,890,453.34 | 5,405,129.91 | 5,405,129.91 |
Total
| Total | 272,169,849.44 | 20,400,000.00 | 251,769,849.44 | 262,437,500.08 | 20,400,000.00 | 242,037,500.08 |
(1) Investment in subsidiaries
Unit: yuan
| Invested unit | Beginning balance | Increase or decrease in current period | Ending | Balance of |
2022 Full Annual Report
| (book value) | Further investment | Capital reduction | Provision for impairment | Other | balance (book value) | impairment provision at the end of period |
ShengzhouKindeIntelligentKitchenElectric Co.,Ltd.
| Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. | 162,320,000.00 | 162,320,000.00 |
HangzhouMingqiElectric Co.,Ltd.
| Hangzhou Mingqi Electric Co., Ltd. | 52,028,217.25 | 247,025.93 | 52,275,243.18 |
Dize HomeAppliancesTrading(Shanghai)Co., Ltd.
| Dize Home Appliances Trading (Shanghai) Co., Ltd. | 630,900.00 | 630,900.00 | 20,400,000.00 |
ShanghaiROBAMElectricApplianceSales Co.,Ltd.
| Shanghai ROBAM Electric Appliance Sales Co., Ltd. | 5,838,272.10 | 5,838,272.10 |
BeijingROBAMElectricApplianceSales Co.,Ltd.
| Beijing ROBAM Electric Appliance Sales Co., Ltd. | 5,814,980.82 | 5,814,980.82 |
HangzhouROBAMFuchuangInvestmentManagementCo., Ltd.
| Hangzhou ROBAM Fuchuang Investment Management Co., Ltd. | 10,000,000.00 | 10,000,000.00 |
HangzhouJinhe ElectricAppliancesCo., Ltd
| Hangzhou Jinhe Electric Appliances Co., Ltd | 10,000,000.00 | 10,000,000.00 |
Total
| Total | 236,632,370.17 | 10,247,025.93 | 246,879,396.10 | 20,400,000.00 |
(2) Investment in associated enterprises and joint enterprises
Unit: yuan
| Invested entity | Beginning balance (book value) | Increase or decrease in current period | Ending balance (book value) | Balance of impairment provision at the end of period | |||||||
| Further investment | Capital reduction | Investment gains and losses recognized by the equity method | Adjustment of other comprehensive income | Changes in other equity | Declared payment of cash dividends or profits | Provision for impairment | Other | ||||
I. Joint enterprise
I. Joint enterpriseDeDietrichTrade(Shanghai) Co.,
| De Dietrich Trade (Shanghai) Co., | 3,661,700.03 | 162,760.00 | 3,824,460.03 |
2022 Full Annual Report
Ltd.Subtotal
| Subtotal | 3,661,700.03 | 162,760.00 | 3,824,460.03 |
II. Joint venture
II. Joint venture
ZhejiangTingshuo BrandOperationManagementCo., Ltd.
| Zhejiang Tingshuo Brand Operation Management Co., Ltd. | 1,743,429.88 | -677,436.57 | 1,065,993.31 |
Subtotal
| Subtotal | 1,743,429.88 | -677,436.57 | 1,065,993.31 |
Total
| Total | 5,405,129.91 | -514,676.57 | 4,890,453.34 |
4. Operating income and operating cost
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period | ||
| Income | Cost | Income | Cost | |
Main business
| Main business | 9,254,790,315.93 | 4,792,994,074.50 | 9,034,839,040.01 | 4,512,516,514.28 |
Other businesses
| Other businesses | 269,759,869.66 | 108,497,967.17 | 249,392,105.48 | 45,025,643.79 |
Total
| Total | 9,524,550,185.59 | 4,901,492,041.67 | 9,284,231,145.49 | 4,557,542,158.07 |
Unit: yuan
5. Investment income
Unit: yuan
| Item | Amount incurred in current period | Amount incurred in previous period |
Long-term equity investment income checkedby cost method
| Long-term equity investment income checked by cost method | 10,200,000.00 | 22,950,000.00 |
long-term equity investment gains measuredby employing the equity method
| long-term equity investment gains measured by employing the equity method | -514,676.57 | -47,639.68 |
Investment income from trading financialassets during the holding period
| Investment income from trading financial assets during the holding period | 98,086,574.72 | 86,701,654.28 |
Total
| Total | 107,771,898.15 | 109,604,014.60 |
XVIII. Further information
1. Current non-recurring gain and loss statement
?Applicable □ Not applicable
Unit: yuan
| Item | Amount | Description |
Profit and loss on disposal of non-current assets
| Profit and loss on disposal of non-current assets | 113,456.26 |
Government subsidies included into the current profits andlosses (except those government subsidies, which areclosely related to the normal business of the Company,comply with national policies and regulations andcontinuously enjoyed in accordance with a certain standardquota or quantity)
| Government subsidies included into the current profits and losses (except those government subsidies, which are closely related to the normal business of the Company, comply with national policies and regulations and continuously enjoyed in accordance with a certain standard quota or quantity) | 101,963,275.49 |
Reversal of impairment provision for receivables subject toseparate impairment test
| Reversal of impairment provision for receivables subject to separate impairment test | 24,667,546.54 |
2022 Full Annual Report
| Income and expenditure other than those mentioned above | -2,044,818.28 |
Minus: Amount affected by income tax
| Minus: Amount affected by income tax | 26,789,339.27 |
Amount of minority shareholders' equity affected
| Amount of minority shareholders' equity affected | 4,607,290.53 |
Total
| Total | 93,302,830.21 | -- |
Details of other profit and loss items that meet the definition of non-recurring profit and loss:
?Applicable □ Not applicable
| Item | Amount | Cause |
| VAT exemption or reduction or refund | 45,970,536.15 | National tax policies, recurring business |
| Individual income tax service charge refund | 541,758.65 | National tax policies, recurring business |
| Total | 46,512,294.80 | — |
Description of defining the non-recurring profit and loss items enumerated in the “Interpretative Announcement No. 1 onInformation Disclosure of Public Securities Issuing Companies - Non-recurrent Profits and Losses” as recurrent profit andloss items
□ Applicable ?Not applicable
2. Return on net assets and earnings per share
| Reporting profit | Weighted average return on net assets | Earnings Per Share | |
| Basic EPS (yuan/share) | Diluted EPS (yuan/share) | ||
Net profit attributable tocommon shareholders of theCompany
| Net profit attributable to common shareholders of the Company | 17.21% | 1.67 | 1.67 |
Net profit attributable tocommon shareholders of theCompany after deduction ofnon-recurring profits and losses
| Net profit attributable to common shareholders of the Company after deduction of non-recurring profits and losses | 16.19% | 1.57 | 1.57 |
3. Differences in Accounting Data under Domestic and Foreign Accounting Standards
(1) Differences between net profits and net assets in financial statements disclosed according to theInternational Accounting Standards (IAS) and Chinese Accounting Standards simultaneously
□ Applicable ?Not applicable
(2) Differences between net profits and net assets in financial statements disclosed according to theOverseas Accounting Standards and Chinese Accounting Standards simultaneously
□ Applicable ?Not applicable
(3) Causes for differences in accounting data under domestic and foreign accounting standards. If the
difference adjustment has been made to the data audited by the overseas audit institution, the name ofthe overseas audit institution shall be indicated
4. Other