SHENZHEN ZHONGHENG HUAFA CO., LTD.
SEMI-ANNUAL REPORT 2022
【23 Aug,2022】
Section I. Important Notice, Contents and Interpretation
Board of Directors, Board of Supervisory, all directors, supervisors and senior executives ofShenzhen Zhongheng HUAFA Co., Ltd. (hereinafter referred to as the Company) herebyconfirm that there are no any fictitious statements, misleading statements, or importantomissions carried in this report, and shall take all responsibilities, individual and/or joint, forthe reality, accuracy and completion of the whole contents.
Li Zhongqiu, Principal of the Company, Chen Zhigang, person in charger of accountingworks and Chuai Guoxu, person in charge of accounting organ (accounting principal) herebyconfirm that the Financial Report of 2022 Semi-Annual Report is authentic, accurate andcomplete.
All directors are attended the Board Meeting for report deliberation.
Concerning the forward-looking statements with future planning involved in the Report, theydo not constitute a substantial commitment for investors. Majority investors are advised toexercise caution of investment risks.
Risks factors are being well-described in the Report, found more in risks factors andcountermeasures disclosed in Prospects for Future Development of the Board of Directors’Report.
The Company has no plan of cash dividends carried out, bonus issued and capitalizing ofcommon reserves either.
Contents
Section I Important Notice, Contents and Interpretation ...... 1
Section II Company Profile and Main Financial Indexes ...... 5
Section III Management Discussion and Analysis ...... 8
Section IV Corporate Governance ...... 15
Section V Enviornmental and Social Responsibility ...... 16
Section VI Important Matters ...... 17
Section VII Changes in shares and particular about shareholders ...... 32
Section VIII Preferred Stock ...... 37
Section IX Corporate Bonds ...... 38
Section X Financial Report ...... 39
Documents Available for Reference
I. Financial statement carrying the signatures and seals of the person in charge of the Company, principal of theaccounting works and person in charge of accounting organ;II. All documents of the Company and manuscripts of public notices that disclosed in the Securities Times andHong Kong Commercial Daily designated by CSRC in the report period;III. Article of AssociationIV. Other relevant files.
Interpretation
| Items | Refers to | Contents |
| Company, Shen HUAFA | Refers to | SHENZHEN ZHONGHENG HUAFA CO., LTD. |
| Hengfa Technology | Refers to | Wuhan Hengfa Technology Co., Ltd. |
| HUAFA Property | Refers to | Shenzhen Zhongheng HUAFA Property Co., Ltd |
| HUAFA Lease | Refers to | Shenzhen HUAFA Property Lease Management Co., Ltd |
| Wuhan Zhongheng Group | Refers to | Wuhan Zhongheng New Science & Technology Industrial Group Co., Ltd |
| HK Yutian | Refers to | Hong Kong Yutian International Investment Co., Ltd. |
| Hengsheng Photo-electricity | Refers to | Wuhan Hengsheng Photo-electricity Industry Co., Ltd. |
| Hengsheng Yutian | Refers to | Wuhan Hengsheng Yutian Industrial Co., Ltd. |
| Yutian Henghua | Refers to | Shenzhen Yutian Henghua Co., Ltd. |
| HUAFA Hengtian | Refers to | Shenzhen HUAFA Hengtian Co., Ltd. |
| HUAFA Hengtai | Refers to | Shenzhen HUAFA Hengtai Co., Ltd. |
| Shenzhen Vanke | Refers to | Shenzhen Vanke Real Estate Co., Ltd, renamed as“Shenzhen Vanke Development Co., Ltd” |
| Vanke Guangming | Refers to | Shenzhen Vanke Guangming Real Estate Development Co., Ltd |
| V& T Law Firm | Refers to | Shenzhen V& T Law Firm |
| Zhongheng Semiconductor (former Huafa Technology) | Refers to | Shenzhen Zhongheng Semiconductor Co., Ltd. (former Zhongheng Huafa Technology Co., Ltd) |
Section II. Company Profile and Main Financial IndexesI. Company profile
| Short form of the stock | Shen HUAFA -A, Shen HUAFA- B | Stock code | 000020 |
| Stock exchange for listing | Shenzhen Stock Exchange | ||
| Name of the Company (in Chinese) | 深圳中恒华发股份有限公司 | ||
| Short form of the Company (in Chinese) (if applicable) | 深华发 | ||
| Foreign name of the Company (if applicable) | SHENZHEN ZHONGHENG HUAFA CO., LTD. | ||
| Legal representative | Li Zhongqiu | ||
II. Person/Way to contact
| Secretary of the Board | Rep. of security affairs | |
| Name | Niu Zhuo | |
| Contact add. | 618, 6/F, East Tower, Huafa Building, No.411 Building, Huafa (N) Road, Futian District, Shenzhen | |
| Tel. | 0755-86360201 | |
| Fax. | 0755-86360201 | |
| huafainvestor@126.com.cn |
III. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period ornot
□ Applicable √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change in reporting period,found more details in Annual Report 2021.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparationplace for semi-annual report have no change in reporting period, found more details in Annual Report 2021.
3. Other relevant information
Whether other relevant information has changed in the reporting period
□ Applicable √ Not applicable
VI. Main accounting data and financial indexesWhether it has retroactive adjustment or re-statement on previous accounting data
□ Yes √ No
| Current period | Same period last year | Changes in the current reporting period compared with the same period of the previous year (+,-) | |
| Operating income(RMB) | 354,146,920.81 | 391,633,808.55 | -9.57% |
| Net profit attributable to shareholders of the listed company(RMB) | 8,806,785.10 | 6,989,362.48 | 26.00% |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses(RMB) | 4,150,928.94 | 7,034,198.78 | -40.99% |
| Net cash flow arising from operating activities(RMB) | 49,720,222.38 | -21,818,369.59 | 327.88% |
| Basic earnings per share(RMB/Share) | 0.0311 | 0.0248 | 25.40% |
| Diluted earnings per share(RMB/Share) | 0.0311 | 0.0248 | 25.40% |
| Weighted average ROE | 2.53% | 2.07% | 0.46% |
| End of current period | End of last year | Changes at the end of the reporting period compared with the end of the previous year (+,-) | |
| Total assets(RMB) | 638,152,495.34 | 659,933,225.57 | -3.30% |
| Net assets attributable to shareholder of listed company(RMB) | 352,257,424.41 | 343,450,639.31 | 2.56% |
V. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (InternationalAccounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (InternationalAccounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accountingrules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules orChinese GAAP (Generally Accepted Accounting Principles) in the period.VI. Items and amounts of extraordinary profit (gains)/loss
√Applicable □ Not applicable
Unit: RMB/CNY
| Item | Amount | Note |
| Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) | 789,308.26 | |
| Governmental subsidy reckoned into current gains/losses (except for those with normal operation business concerned, and conform to the national policies & regulations and are continuously enjoyed at a fixed or quantitative basis according to certain standards) | 4,515,323.81 | |
| Gain/loss of entrusted investment or assets management | 180,088.19 | |
| Other non-operating income and expenditure except for the aforementioned items | 25,266.61 | |
| Less: Impact on income tax | 854,130.71 | |
| Total | 4,655,856.16 |
Specific information on other items of profits/losses that qualified the definition of non-recurring profit(gain)/loss
□Applicable √Not applicable
The Company does not have other items of profits/losses that qualified the definition of non-recurring profit(gain)/loss
Information on the definition of non-recurring profit(gain)/loss that listed in the Q&A Announcement No.1 on Information Disclosurefor Companies Offering Their Securities to the Public --- Extraordinary (non-recurring) Profit(gain)/loss as the recurringprofit(gain)/loss
□Applicable √Not applicable
The Company does not have any non-recurring profit(gain)/loss listed under the Q&A Announcement No.1 on InformationDisclosure for Companies Offering Their Securities to the Public --- Extraordinary (non-recurring) Profit(gain)/loss defined asrecurring profit(gain)/loss
Section III Management Discussion and AnalysisI. Main businesses of the company in the reporting period
After years of development, the company has gradually formed two main businesses in industry and propertymanagement. Among them, the industrial business mainly includes injection molding, Styrofoam (light-weightpackaging materials), and complete machine production and sales of liquid crystal display, property managementbusiness is mainly the lease of its own property.II. Core competitiveness analysisAll industrial lands of the Company located in Shenzhen were taken into the first batch of plan under 2010Shenzhen urban upgrade planning. In the future, development and operation of self-owned land resources wouldbecome the income source of the Company on a long-term and stable basis.III. Main business analysis
OverviewSee the “I. Main businesses of the company in the reporting period”
Change of main financial data on a y-o-y basis
Unit: RMB/CNY
| Current period | Same period of last year | y-o-y changes (+,-) | Reasons | |
| Operation income | 354,146,920.81 | 391,633,808.55 | -9.57% | |
| Operation cost | 311,845,943.49 | 334,523,805.25 | -6.78% | |
| Sales expenses | 9,503,158.57 | 14,094,617.96 | -32.58% | Decrease in commodity wastage |
| Administrative expenses | 17,627,621.80 | 22,680,307.24 | -22.28% | |
| Financial cost | 1,940,816.62 | 5,241,702.86 | -62.97% | Decrease in foreign exchange losses |
| Income tax expense | 2,858,046.44 | 1,584,720.39 | 80.35% | Increase in profitability |
| Net cash flow arising from operation activities | 49,720,222.38 | -21,818,369.59 | -327.88% | Decrease in inventories and assets occupancy |
| Net cash flow arising from investment activities | 2,353,325.62 | -2,316,374.60 | 201.60% | Disposal of fixed assets |
| Net cash flow arising from financing activities | -24,458,104.11 | 23,182,219.89 | -205.50% | Decrease in long-term loans |
Net increase of cashand cash equivalent
| Net increase of cash and cash equivalent | 27,879,096.12 | -1,355,867.36 | 2,156.18% | Decrease in inventories and assets occupancy |
Major changes on profit composition or profit resources in reporting period
No major changes on profit composition or profit resources occurred in reporting period
Constitution of operation income
Unit: RMB/CNY
| Current period | Same period of lat year | Increase/decrease y-o-y(+,-) | |||
| Amount | Ratio in operation income | Amount | Ratio in operation income | ||
| Total operation income | 354,146,920.81 | 100% | 391,633,808.55 | 100% | -9.57% |
| According to industries | |||||
| Computer, communications and other electronic equipment manufacturing | 203,847,819.16 | 57.56% | 205,727,604.15 | 52.53% | -0.91% |
| Rubber and plastic products industry | 122,229,453.44 | 34.51% | 160,400,235.93 | 40.96% | -23.80% |
| Leasing and others | 28,069,648.21 | 7.93% | 25,505,968.47 | 6.51% | 10.05% |
| According to products | |||||
| Display | 203,847,819.16 | 57.56% | 205,727,604.15 | 52.53% | -0.91% |
| Plastic injection hardware | 99,672,642.36 | 28.33% | 137,963,397.80 | 35.23% | -27.75% |
| Foam parts | 22,556,811.08 | 6.37% | 22,437,585.36 | 5.73% | 0.53% |
| Property leasing and others | 28,069,648.21 | 7.74% | 25,505,221.24 | 6.51% | 10.05% |
| According to region | |||||
| Domestic | 303,461,034.26 | 85.69% | 295,887,424.63 | 75.55% | 2.56% |
| Overseas | 50,685,886.55 | 14.31% | 95,746,383.92 | 24.45% | -47.06% |
The industries, products, or regions accounting for over 10% of the company’s operating revenue or operating profit
√Applicable □ Not applicable
Unit: RMB/CNY
| Operation income | Operation cost | Gross profit ratio | Increase/decrease of operation income y-o-y | Increase/decrease of operation cost y-o-y | Increase/decrease of gross profit ratio y-o-y | |
| According to industries | ||||||
| Computer, communications and other electronic equipment manufacturing | 203,847,819.16 | 191,933,490.52 | 5.84% | -0.91% | 3.83% | -4.31% |
| Rubber and plastic products | 122,229,453.44 | 114,807,915.44 | 6.07% | -23.80% | -20.62% | -3.76% |
industry
| industry | ||||||
| According to products | ||||||
| Display | 203,847,819.16 | 191,933,490.52 | 5.84% | -0.91% | 3.83% | -4.31% |
| Plastic injection hardware | 99,672,642.36 | 90,817,327.84 | 8.88% | -27.75% | -26.39% | -1.69% |
| According to region | ||||||
| Domestic | 303,461,034.26 | 263,711,937.83 | 13.10% | 2.56% | 5.46% | -2.39% |
| Overseas | 50,685,886.55 | 48,134,005.66 | 5.03% | -47.61% | -43.01% | -6.76% |
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based onlatest one year’s scope of period-end
□ Applicable √ Not applicable
Reasons for y-o-y relevant data with over 30% changes
□ Applicable √ Not applicable
IV. Analysis of the non-main business
√Applicable □Not applicable
Unit: RMB/CNY
| Amount | Ratio in total profit | Description of formation | Whether be sustainable (Y/N) | |
| Investment income | 180,088.19 | 1.54% | Invoicing margin earnings | N |
| Non-operation revenue | 40,574.92 | 0.35% | Three generation fee | N |
| Non-operation expense | 15,308.31 | 0.13% | Tax late fees | N |
| Other income | 4,515,323.81 | 38.71% | Government subsidy | N |
V. Assets and liability analysis
1. Major changes of assets composition
Unit: RMB/CNY
| End of the current period | End of last year | Ratio changes(+,-) | Notes of major changes | |||
| Amount | Ratio in total assets | Amount | Ratio in total assets | |||
| Monetary fund | 75,664,614.16 | 11.86% | 34,426,043.11 | 5.22% | 6.64% | Increase in management efficiency of inventory, and the capital occupancy declined |
| Account receivable | 133,872,767.55 | 20.98% | 128,675,327.97 | 19.50% | 1.48% | |
| Inventory | 66,100,631.11 | 10.36% | 90,585,670.27 | 13.73% | -3.37% | Improve the management efficiency of inventory and reduced the inventory |
Investment realestate
| Investment real estate | 45,327,612.66 | 7.10% | 46,191,777.80 | 7.00% | 0.10% | |
| Fixed assets | 183,280,126.25 | 28.72% | 187,889,261.50 | 28.47% | 0.25% | |
| Construction in process | 740,000.00 | 0.12% | 740,000.00 | 0.11% | 0.01% | |
| Right-of-use assets | 156,974.04 | 0.02% | 209,298.72 | 0.03% | -0.01% | |
| Short-term loans | 11,433,573.00 | 1.79% | 26,480,857.00 | 4.01% | -2.22% | Decrease in inventory, operational loans declined |
| Contract liability | 273,518.20 | 0.04% | 736,355.70 | 0.11% | -0.07% | |
| Lease liability | 86,325.75 | 0.01% | 115,101.00 | 0.02% | -0.01% |
2. Major overseas assets
□ Applicable √ Not applicable
3. Assets and liability measured by fair value
□ Applicable √ Not applicable
4. Assets right restriction till end of reporting period
| Item | Ending book value | Restriction reasons |
| Monetary fund | 14,890,386.86 | Note payable margin |
| Fixed assets | 11,972,048.26 | Collateral for borrowing |
| Intangible assets | 6,463,333.15 | Collateral for borrowing |
| Monetary fund | 92,568.28 | Judicial freeze |
| Investment real estate | 33,323,610.66 | Collateral for borrowing |
| Disposal of fixed assets | 92,857,471.69 | Court seizure |
| Total | 159,599,418.90 |
VI. Investment analysis
1. Overall situation
□ Applicable √ Not applicable
2. The major equity investment obtained in the reporting period
□ Applicable √ Not applicable
3. The major non-equity investment doing in the reporting period
□ Applicable √ Not applicable
4. Financial assets investment
(1) Securities investment
□ Applicable √ Not applicable
The Company has no securities investment in the Period
(2) Derivative investment
□ Applicable √ Not applicable
The Company has no derivatives investment in the Period.
5. Application of raised proceeds
□ Applicable √ Not applicable
The Company has no application of raised proceeds in the Period.VII. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2. Sales of major equity
□ Applicable √ Not applicable
VIII. Analysis of main holding company and stock-jointly companies
√Applicable □ Not applicable
Particular about main subsidiaries and stock-jointly companies net profit over 10%
Unit: RMB/CNY
| Company name | Type | Main business | Register capital | Total assets | Net assets | Operation income | Operation profit | Net profit |
| Hengfa | Subsidiary | Production | 181,643,11 | 490,082,27 | 224,594,86 | 326,746,16 | 694,597.45 | 583,906.55 |
Technology Company
| Technology Company | & sales | 1.00 | 4.87 | 3.57 | 9.37 | |||
| HUAFA Property Company | Subsidiary | Property management | 1,000,000.00 | 17,055,193.87 | 1,798,595.87 | 3,278,337.44 | 1,271,549.03 | 1,497,741.96 |
Particular about subsidiaries obtained or disposed in report period
□Applicable √ Not applicable
Explanation of main holding company and stock-jointly companiesIX. Structured vehicle controlled by the Company
□ Applicable √Not applicable
X. Risks and countermeasures
(1)Risk analysis
Wuhan Hengfa Technology, as an important subsidiary of the company, is faced with increasing pressure underthe influence of intensifying market competition and tight supply of raw and auxiliary materials and other factors,the key to solve the dilemma is to upgrade technology, enhance the added value of technology, and improveprofitability; In the context of downstream consumer demand upgrading, it improves production efficiency byincreasing the research and development of new products, adjusting and improving the product structure, andimproving the production process; At the same time, it expands upstream supply channels of raw and auxiliarymaterials to avoid material shortage affecting production.
For a certain period of time, property leasing is still another important business for the development of thecompany. Making full use of the self-owned property to provide operation, leasing and service businesses willbring a certain contribution to the company's cash flow. After the gradual implementation of the urban renewalproject, it will bring long-term and stable sources of income for the company.
(2) Countermeasures
◆Industrial Business UpgradeThe epidemic of COVID-19 is not over yet, and all colleagues in the company continued to work hard to serveexisting customers, vigorously expanded the market, and gained more market share; Meanwhile, the Companywill intensify the development of raw & auxiliary materials suppliers in shortage within the market, try to avoidthe negative impact of upstream material shortage on the Company’s production. On the basis of maintainingcustomers, actively looked for high-quality technology projects in consumer electronics, and gradually realizedindustrial upgrading through technology optimization and management optimization; at the same time, itstrengthened management, improved production efficiency, improved product quality, and made full use of thegeographical advantages of the company to make the business bigger and stronger.
◆Promote the urban renewal project
Speed up the promotion of renewal unit project of Huafa District, Gongming Street, Guangming New District,Shenzhen and the renewal project renovation progress of Huafa Building, Huaqiang North Street, Futian District,Shenzhen, accelerate the settlement of project procedures, and strive to make stage progress as early as possible.
◆Continue to focus on strengthening the company’s internal controlIn 2022, the company will further optimize the corporate governance structure and improve the internal controlsystem and process and strictly implement and improve the executive ability of relevant system in accordancewith the governance requirements of listed companies, the company’s management and relevant departments willexecute the administrative provisions for approval procedures of fund utilizing, management system of relatedtransactions, working system of internal audit, internal reporting system of major information in strict accordancewith the requirements of internal control documents.
Section IV Corporate GovernanceI. In the report period, the Company held annual general meeting and extraordinaryshareholders’ general meeting
1. Shareholders’ General Meeting in the report period
| Session of meeting | Type | Ratio of investor participation | Date | Date of disclosure | Resolutions |
| Annual General Meeting of 2021 | AGM | 48.15% | 2022-06-09 | 2022-06-10 | http://www.cninfo.com.cn/new/disclosure/detail?stockCode=000020&announcementId=1213660641&orgId=gssz0000020&announcementTime=2022-06-10 |
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
II. Changes of directors, supervisors and senior executives
√ Applicable □ Not applicable
| Name | Position held | Type | Date | Causes |
| Yang Bin | Deputy GM, CFO | Leaving office | 2022-02-17 | Personal reasons |
| Chen Zhigang | Deputy GM, CFO | Appointments | 2022-02-18 | Appointments |
| Jiang Junming | Director, Deputy President | Leaving office | 2022-06-08 | Personal reasons |
| Yang Hongyu | Director, Deputy President | Be elected | 2022-06-09 | Be elected |
III. Profit distribution plan and capitalizing of common reserves plan for the Period
□ Applicable √ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either forthe midterm.IV. Implementation of the company’s stock incentive plan, employee stock ownership plan orother employee incentives
□ Applicable √ Not applicable
The Company had no stock incentive plan, employee stock ownership plan or other employee incentive in the reporting period.
Section V. Environmental and Social ResponsibilityI. Important environmental issues
The listed Company and its subsidiary whether belongs to the key sewage units released from environmental protection department
□ Yes √No
Administrative penalties imposed for environmental issues during the reporting period
| The company or subsidiary | Reasons for penalty | Violations | Penalty results | Impact on the production & operation of listed company | Corrective measures |
| N/A | N/A | N/A | N/A | N/A | N/A |
Other environmental information disclosed with reference to the key emission unitsNot applicable
Measures taken to reduce carbon emission during the reporting period and their effectiveness
□ Applicable √ Not applicable
Reasons for not disclosed other environmental informationNot applicable
II. Social responsibilityN/A
Section VI. Important Matters
I. Commitments that the actual controller, shareholders, related party, offeror and committed party as theCompany etc. have fulfilled during the reporting period and have not yet fulfilled by the end of reportingperiod
□ Applicable √ Not applicable
There were no commitments that the actual controller, shareholders, related party, offeror and committed party as the Company etc.have fulfilled during the reporting period and have not yet fulfilled by the end of reporting periodII. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.III. Guarantee outside against the regulation
□Applicable √Not applicable
No guarantee outside against the regulation in Period.
IV. Appointment and non-reappointment (dismissal) of CPAWhether the financial report has been audited or not
□Yes √no
The company's semi-annual report has not been audited.V. Explanation from Board of Directors and Supervisory Committee for “Qualified Opinion”that issued by CPA
□ Applicable √Not applicable
VI. Explanation from the Board for “Qualified Opinion” of last year’s
□ Applicable √Not applicable
VII. Bankruptcy reorganization
□ Applicable √Not applicable
No bankruptcy reorganization for the Company in reporting periodVIII. LawsuitsSignificant lawsuits and arbitration
√Applicable □Not applicable
| The basic situation of litigation (Arbitration) | Amount of money involved (in 10 thousand Yuan) | Predicted liabilities (Y/N) | Advances in litigation (Arbitration) | The results and effects of litigation (Arbitration) | Execution of the litigation (Arbitration) | Disclosure date | Disclosure index |
| In September 2016, Wuhan Zhongheng Group Co., Ltd. and the Company and Shenzhen Vanke were applied for arbitration due to the dispute case of “Contract for the Cooperative Operation of the Old Projects at Huafa Industrial Park, Gongming Street, Guangming New District”. | 46,460 | N | Ruling on 16 August 2017; put forward the application for dismantling by the Company and controlling shareholder, the application was rejected by the court | Found more in announcement of the Company | In September 2018, Shenzhen Vanke applied for compulsory execution. In October 2019, due to the outsider's application of "objection to execution" and "non-enforcement", the execution procedure was terminated. If the outsider's application was rejected by the Shenzhen Intermediate People’s Court, Shenzhen Vanke would have the right to continue to apply for the resumption of compulsory execution. | 2018-02-09 | http://www.cninfo.com.cn/cninfo-new/disclosure/szse_main/bulletin_detail/true/1204406606?announceTime=2018-02-09 ；http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&stockCode=000020&announcementId=1205326846&announcementTime=2018-08-25 |
| Application for | 1,940.2 | N | The arbitration has been | A decision was issued and the | Implementing | 2018-11-14 | http://www.cninfo.com.cn |
arbitration incase ofcontractdisputebetween theV&T LawFirm andShenzhenZhonghengHuafa Co.,Ltd. andWuhanZhonghengGroup
| arbitration in case of contract dispute between the V&T Law Firm and Shenzhen Zhongheng Huafa Co., Ltd. and Wuhan Zhongheng Group | heard | Company’s motion to dismiss was denied | /new/disclosure/detail?plate=szse&stockCode=000020&announcementId=1205602053&announcementTime=2018-11-14 | ||||
| Shenzhen Zhongheng Huafa Semiconductor Co., Ltd bring a suit against the Company, request for continuation of the assets replacement contract. According to the contract, the two parcels of lands are transferred to Semiconductor Company and compensated economic losses of 52 million yuan | 5,200 | N | The judgment (2020) Yue 03 Min Chu No.17 was issued in May 2021, all claims of Semiconductor Company were rejected | Semiconductor Company has filed an appeal | Trial in progress | 2021-06-03 | http://www.cninfo.com.cn/new/disclosure/detail?stockCode=000020&announcementId=1210151395&orgId=gssz0000020&announcementTime=2021-06-03 |
| Shenzhen Zhongheng Huafa Semiconductor Co., Ltd bring a suit against the Company, Zhongheng Group and Shenzhen Vanke, request for judgment that the above Business Cooperation Contract is invalid | 0 | N | The second trial has issued a verdict | The second trial has issued a verdict | The second trial has issued a verdict | 2022-03-05 | http://www.cninfo.com.cn/new/disclosure/detail?stockCode=000020&announcementId=1212510555&orgId=gssz0000020&announcementTime=2022-03-05 |
Other lawsuits
□Applicable √ Not applicable
IX. Penalty and rectification
□Applicable √ Not applicable
X. Integrity of the company and its controlling shareholders and actual controllers
□ Applicable √Not applicable
XI. Major related transaction
1. Related transaction with routine operation concerned
√Applicable □ Not applicable
| Related party | Relationship | Type of related transaction | Content of related transaction | Pricing principle | Related transaction price | Related transaction amount (in 10 thousand Yuan) | Proportion in similar transactions | Trading limit approved (in 10 thousand Yuan) | Whether over the approved limited or not (Y/N) | Clearing form for related transaction | Available similar market price | Date of disclosure | Index of disclosure |
| Hong Kong Yutian International Investment Co., Ltd. | Controlled by same controlling shareholder and ultimate controller | Procurement | Displays and materials | Determined by fair market trading price | Determined by fair market trading price | 3,209.34 | 40.55% | 12,751.4 | N | Wire transfer | The average market price refers to the price of same specifications which is searched from through the world famous professional market survey | 2022-04-26 | The “Prediction on the Related Transaction for year of 2022 for the Video and Telecommunication Business” (Notice No: 2022-16) on Juchao Websi |
companywebsitehttp://www.witsview.comrecognizedauthority intheindustry andLCDprofessionalmarketsurveycompanywebsite
| company website http://www.witsview.com recognized authority in the industry and LCD professional market survey company website | te (www.cninfo.com.cn) | ||||||||||||
| Wuhan Hengsheng Photo-electricity Industry Co., Ltd. | Controlled by same controlling shareholder and ultimate controller | Procurement | Display | Determined by fair market trading price | Determined by fair market trading price | 4,496.09 | 56.81% | 12,751.4 | N | Wire transfer | ditto | 2022-04-26 | The “Prediction on the Related Transaction for year of 2022 for the Video and Telecommunication Business” (Notice No: 2022-16) on Juchao Website (www |
.cninfo.com.cn)
| .cninfo.com.cn) | |||||||||||||
| Wuhan Hengsheng Photo-electricity Industry Co., Ltd. | Controlled by same controlling shareholder and ultimate controller | Procurement | Display | Determined by fair market trading price | Determined by fair market trading price | 1,091.61 | 96.41% | 5,100.56 | N | Wire transfer | ditto | 2022-04-26 | The “Prediction on the Related Transaction for year of 2022 for the Video and Telecommunication Business” (Notice No: 2022-16) on Juchao Website (www.cninfo.com.cn) |
| Hong Kong Yutian International Investment Co., Ltd. | Controlled by same controlling shareholder and ultimate controller | Sales | Display and materials | Determined by fair market trading price | Determined by fair market trading price | 3,568.06 | 17.50% | 15,939.25 | N | Wire transfer | ditto | 2022-04-26 | The “Prediction on the Related Transaction for year of 2022 for the Video and Telecommunication Busin |
ess”(Notice No:
2022-
16) on
JuchaoWebsite(www.cninfo.com.cn)
| ess” (Notice No: 2022-16) on Juchao Website (www.cninfo.com.cn) | |||||||||||||
| Wuhan Hengsheng Photo-electricity Industry Co., Ltd. | Controlled by same controlling shareholder and ultimate controller | Sales | liquid crystal display glass | Determined by fair market trading price | Determined by fair market trading price | 0 | 0.00% | 318.79 | N | Wire transfer | ditto | 2022-04-26 | The “Prediction on the Related Transaction for year of 2022 for the Video and Telecommunication Business” (Notice No: 2022-16) on Juchao Website (www.cninfo.com.cn) |
| Wuhan Hengsheng Photo-electricity Industry Co., | Controlled by same controlling shareholder and ultimate | Sales | Liquid crystal Display | Determined by fair market trading price | Determined by fair market trading price | 2,788.65 | 13.68% | 6,375.7 | N | Wire transfer | ditto | 2022-04-26 | The “Prediction on the Related Transaction for year of |
Ltd.
| Ltd. | controller | 2022 for the Video and Telecommunication Business” (Notice No: 2022-16) on Juchao Website (www.cninfo.com.cn) | |||||||||||
| Wuhan Hengsheng Photo-electricity Industry Co., Ltd. | Controlled by same controlling shareholder and ultimate controller | Sales | Liquid crystal display related products; Plastic injection hardware | Determined by fair market trading price | Determined by fair market trading price | 62.65 | 0.63% | 510.06 | N | Wire transfer | ditto | 2022-04-26 | The “Prediction on the Related Transaction for year of 2022 for the Video and Telecommunication Business” (Notice No: 2022-16) on Juchao Website (www.cninfo.com.cn) |
Total
| Total | -- | -- | 15,216.4 | -- | 53,747.16 | -- | -- | -- | -- | -- |
| Detail of sales return with major amount involved | N/A | |||||||||
| Report the actual implementation of the daily related transactions which were projected about their total amount by types during the reporting period(if applicable) | During the reporting period, Hengfa Technology actually has 32.0934 million yuan procurement from HK Yutian, 25.17% of the annual amount predicted at the beginning of the year; purchased LCD monitor from Hengsheng Photo-electricity with 44.9609 million yuan approximately, 35.26% of the annual amount predicted at the beginning of the year; purchasing LCD Display from Hengsheng Photo-electricity with about 10.9161 million yuan, 21.4% of the annual amount predicted at the beginning of the year; sold LCD Display whole machine to HK Yutian with 35.6806 million yuan approximately, 22.39% of the annual amount predicted at the beginning of the year; sold LCD display to Hengsheng Photo-electricity with about 27.8865 million yuan, 43.74% of the annual amount predicted at the beginning of the year; and sold LCD relevant products of plastic injection hardware to Hengsheng Photo-electricity with about 626,500 yuan,12.28% of the annual amount predicted at the beginning of the year | |||||||||
| Reasons for major differences between trading price and market reference price | N/A | |||||||||
2. Related transactions of assets or equity acquisition and sold
□Applicable √Not applicable
There were no related transactions of assets or equity acquisition and sold during the reporting period
3. Main related transactions of mutual investment outside
□ Applicable √ Not applicable
No main related transactions of mutual investment outside for the Company in reporting period.
4. Contact of related credit and debt
□ Applicable √ Not applicable
No contact of related credit and debt during the reporting period.
5. Contact with the related finance companies
□ Applicable √ Not applicable
There are no deposits, loans, credits or other financial business between the Company and the finance companies with relatedrelationships or between the related parties
6. Contact between the finance companies that controlled by the Company and related parties
□ Applicable √ Not applicable
There are no deposits, loans, credits or other financial business between the finance companies that controlled by the Company andrelated parties
7. Other significant related transactions
□ Applicable √ Not applicable
The company had no other significant related transactions in reporting period.XII. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable √ Not applicable
No trusteeship for the Company in reporting period.
(2) Contract
□ Applicable √ Not applicable
No contract for the Company in reporting period.
(3) Leasing
√ Applicable □Not applicable
Explanation on leasingWuhan Hengfa Technology Co., Ltd entered into the storage area lease contract with TCL Air Conditioner (Wuhan) Co., Ltd due toproduction and operation requirements. Leased 300 square meters warehouses for business use, the contract expires at end of 2023and the Company exercised the right of first renewal in 2021. Relevant accounting treatment are recognized as Right-of-use assetsand Lease liability in line with the new leasing standards.
Projects that bring gain/loss to the Company accounting to 10% or more of the total profit for the reporting period
□ Applicable √ Not applicable
There was no leasing projects that bring gain/loss to the Company accounting to 10% or more of the total profit during the reportingperiod
2. Major guarantees
√Applicable □ Not applicable
In 10 thousand Yuan
| Particulars about the external guarantee of the Company (Barring the guarantee for subsidiaries) | ||||||||||
| Name of the Company | Related Announcement disclosur | Guarantee limit | Actual date of happening | Actual guarantee limit | Guarantee type | Collateral (if any) | Counter guarantee(if any) | Guarantee term | Implemented (Y/N) | Guarantee for related party |
guaranteed
| guaranteed | e date | (Y/N) | ||||||||
| Joint and several liability guarantee | N | N | ||||||||
| Guarantee to subsidiary by the Company | ||||||||||
| Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening | Actual guarantee limit | Guarantee type | Collateral (if any) | Counter guarantee(if any) | Guarantee term | Implemented (Y/N) | Guarantee for related party (Y/N) |
| Wuhan Hengfa Technology Co., Ltd. | 2022-04-26 | 20,000 | 1,143.36 | Joint and several liability guarantee | Wuhan Hengfa Technology Co., Ltd offering a counter-guarantee to Shenzhen Zhongheng Huafa Technology Co., Ltd within the scope of 36 million yuan | One year | N | Y | ||
| Total amount of approving guarantee for subsidiaries in report period (B1) | 20,000 | Total amount of actual occurred guarantee for subsidiaries in report period (B2) | 3,633.3 | |||||||
| Total amount of approved guarantee for subsidiaries at the end of reporting period (B3) | 20,000 | Total balance of actual guarantee for subsidiaries at the end of reporting period (B4) | 1,143.36 | |||||||
| Guarantee of the subsidiaries for the subsidiaries | ||||||||||
| Name of | Related | Guarante | Actual | Actual | Guarante | Collateral (if any) | Counter guarante | Guarante | Complet | Guarante |
theCompanyguaranteed
| the Company guaranteed | Announcement disclosure date | e limit | date of happening | guarantee limit | e type | e(if any) | e term | e implementation or not | e for related party | |
| Total amount of guarantee of the Company (total of three above mentioned guarantee) | ||||||||||
| Total amount of approving guarantee in report period (A1+B1+C1) | 20,000 | Total amount of actual occurred guarantee in report period (A2+B2+C3) | 3,633.3 | |||||||
| Total amount of approved guarantee at the end of report period (A3+B3+C2) | 20,000 | Total balance of actual guarantee at the end of report period (A4+B4+C4) | 1,143.36 | |||||||
| The proportion of the total amount of actually guarantee in the net assets of the Company (that is A4+ B4+C4) | 3.25% | |||||||||
| Including: | ||||||||||
Explanation on compound guarantee
3.Trust financing
□Applicable √Not applicable
No trust financing occurred in the reporting period
4. Other material contracts
□ Applicable √ Not applicable
No other material contracts for the Company in reporting period.XIII. Explanation on other significant events
√ Applicable □ Not applicable
(1) The Company signed Asset Exchange Contract with Wuhan Zhongheng New Science & TechnologyIndustrial Group Co., Ltd (hereinafter referred to as Wuhan Zhongheng Group) on 29 April 2009 (details werereferred to in the announcement dated 30 April 2009), and pursuant to the contract, since part of the assets of theCompany (namely two parcel of industrial lands located at Huafa road, Gongming town, Guangming new district,Shenzhen (the property certificate No. were SFDZ No.7226760 and SFDZ No.7226763, No. of parcels wereA627-005 andA627-007, and the aggregate area was 48,200 sq.m) were the lands listed in the first batch of planfor 2010 Shenzhen urbanization unit planning preparation plan. For promotion of such urbanization project andjoint cooperation, the Company has not completed the transfer procedures in respect of the aforesaid land.
The Company convoked the first extraordinary meeting of the Board in 2015 on February 16, 2015 and the firstextraordinary general meeting of the Board in 2015 on March 4, 2015, which considered and approved the“Motion on promoting and implementing the urban renewal project for the renewal units of Huafa area atGongming street, Guangming new district, Shenzhen”, specified that the Company and Wuhan Zhongheng Groupshall obtain the corresponding compensatory consideration for removal from the respectively owned project plotsand the respectively contributed and constructed above-ground buildings before the land development, it isestimated that the compensatory consideration obtained by the Company accounts for 50.5% of the totalconsideration and Wuhan Zhongheng Group accounts for 49.5% by calculation.
The sixth extraordinary meeting of the board of directors in 2015 and the third extraordinary general meeting of2015 have considered and adopted the “Proposal on the project promotion and implementation of urban renewaland the progress of related transactions of ‘the updated units at Huafa Area, Gong Ming Street, Guangming NewDistrict, Shenzhen’”, the company has signed the “Agreement on the cooperation of urban renewal project of theupdated units at Huafa Area, Gong Ming Street, Guangming New District, Shenzhen”, “Contract for thecooperative venture of reconstruction project for Huafa Industrial Park, Gong Ming Street, Guangming NewDistrict” on 26 August 2015, and “Agreement on housing acquisition and removal compensation and resettlement”with Wuhan Wuhan Zhongheng Group, Shenzhen Vanke Real Estate Co., Ltd. (hereinafter referred to as“Shenzhen Vanke”), and Shenzhen Vanke Guangming Real Estate Development Co., Ltd. (hereinafter referred toas “Vanke Guangming”).
On 12 September 2016, Shenzhen Vanke applied for arbitration in respect of “Agreement on the cooperation ofurban renewal project of the updated units at Huafa Area, Gong Ming Street, Guangming New District, Shenzhen”against the Company and Wuhan Zhongheng Group. Shenzhen Court of International Arbitration (SCIA) hasgiven a ruling in August 2017. On August 29, 2018, the court accepted the compulsory execution application ofShenzhen Vanke. In October 2019, as a number of outsiders filed an “execution objection” and applied for “noexecution” to Shenzhen Intermediate People’s Court, the Shenzhen Intermediate People’s Court ruled to terminatethe enforcement procedure on March 20, 2020. If the “execution objection” and “no execution” proposed byoutsiders are rejected according to law, Shenzhen Vanke may continue to apply to the Shenzhen IntermediatePeople’s Court to resume execution.
In April 2020, Zhongheng Semiconductor sued the company to Shenzhen Intermediate People’s Court, andrequested the company to transfer the above mentioned two pieces of lands and compensate the economic loss of52 million yuan, the first and second trial judgments reject the Semiconductor’s appeal; ZhonghengSemiconductor sued the Company and the invalid of “Agreement on the cooperation of urban renewal project ofthe updated units at Huafa Area, Gong Ming Street, Guangming New District, Shenzhen” signed by WuhanZhongheng Group Company and Vanke, the second trial rejects all claims of Zhongheng Semiconductor. Progressof the case found more in the Notices released on Juchao website dated 14 Sept. 2016, 1 Nov. 2016, 16 Nov. 2016,on 18 Feb. 2017, 24 March 2017, 25 April 2017, 1 July 2017, 18 August 2017, 9 Feb. 2018, 25 Aug. 2018, 7 Sept.
2018, 21 Apr. 2020, 3 Jun, 2021, 22 Jul. 2021 and Mar. 5, 2022 respectively.
(2) On 31 December 2015, the 88,750,047 shares held by Wuhan Zhongheng Group, are pledge to ChinaMerchants Securities Assets Co., Ltd. with due date of 31 December 2016. On 1 Feb. 2016, Wuhan ZhonghengGroup pledge the 27,349,953 shares held to China Merchants Securities Assets Co., Ltd. with due date of 31December 2016. The above-mentioned pledged shares are deferred by Wuhan Zhongheng Group; pledge expiredon 31 December 2017. The trading day for repurchase put off to the date when pledge actually removed. Till endof this period released, controlling shareholder still not removed the pledge and the Company has apply by letter,relevant Notice of Presentment on Stock Pledge from Controlling Shareholder was released. Found more in noticereleased on Juchao website date 2 Feb. 2018.
In March 2021, Wuhan Zhongheng Group received the judgment on case of “pledged securities repurchasedispute” brought by China Merchants Securities Assets Management Co., Ltd from High People’s Court ofGuangdong Province. Wuhan Zhongheng Group appealed to the Supreme People’s Court against the decision.Found more in notice released on Juchao Website dated March 19, 2021.
(3) The controlling shareholder Wuhan Zhongheng Group holds 119,289,894 shares of the Company’ stock,accounting for 42.13% of the total share capital of the Company, of which 116,489,894 shares were judiciallyfrozen by Shenzhen Intermediate People's Court (hereinafter referred to as "Shenzhen Intermediate Court") onSeptember 27, 2016, which were frozen again by the Shenzhen Intermediate People's Court on December 14,2018, with a frozen period of 36 months; the remaining 2,800,000 shares were frozen by the ShenzhenIntermediate People's Court on May 29, 2019, and were frozen again by the Higher People’s Court of GuangdongProvince on July 5, 2019. For details, please refer to the company’s announcements published on Juchao Websitedated October 27, 2016, January 11, 2019, May 31, 2019 and August 7, 2019.
(4) On September 29, 2016, the company and its controlling shareholder, Wuhan Zhongheng Group, signed the“Agency Contract” with V&T Law Firm. On October 8, 2016, the three parties also signed the “SupplementalAgreement for Agency Contract”, it was agreed that V&T acted as an agent for the company and WuhanZhongheng Group to deal with the arbitration case with Shenzhen Vanke. After losing the lawsuit, due todifferences in the payment of attorney fees, V&T sued our company and Wuhan Zhongheng Group to theShenzhen Court of International Arbitration, and applied to the court to seize a bank account under our company’sname and part of our company dormitories, please refer to “Other Announcements on the Progress InvolvingLitigation and Arbitration” (Announcement Numbers: 2018-43, 2019-02) released on Juchao Website datedNovember 14, 2018 and March 6, 2019. In November 2019, the Shenzhen Court of International Arbitration ruledthat the company and Wuhan Zhongheng Group paid the corresponding fees. According to the relevant agreementof the “Entrusted Agency Contract” and “Supplementary Agreement” signed by the three parties, loss of theruling in the case shall be fully borne by Wuhan Zhongheng Group, therefore, it has no impact on the profit of the
Company. Found more on “Other Announcements on the Progress Involving Litigation and Arbitration”(Announcement No.: 2019-34) released on Juchao Website dated November 25, 2019.
(5) Business of the Company - Styrofoam is a traditional manufacturing industry. The industry has stepping intothe maturity with severe overcapacity, the oversupply leads to a low gross margin and downward trend ofprofitability of the Company’s products. The “proposal to shut down the Styrofoam business from wholly-ownedsubsidiary” was deliberated and approved by the third interim meeting of BOD of 2022. Closure of the plant isprogressing steadily.
XIV. Significant event of subsidiary of the Company
□ Applicable √Not applicable
Section VII. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
Unit: Share
Reasons for share changed
□ Applicable √ Not applicable
Approval of share changed
□ Applicable √ Not applicable
Ownership transfer of share changed
□ Applicable √ Not applicable
| Before the Change | Increase/Decrease in the Change (+, -) | After the Change | |||||||
| Amount | Proportion | New shares issued | Bonus shares | Public reserve transfer into share capital | Others | Subtotal | Amount | Proportion | |
| I. Restricted shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 1. State-owned shares | |||||||||
| 2. State-owned legal person’s shares | |||||||||
| 3. Other domestic shares | |||||||||
| Including: Domestic legal person’s shares | |||||||||
| Domestic natural person’s shares | |||||||||
| 4. Foreign shares | |||||||||
| Including: Foreign legal person’s shares | |||||||||
| Foreign natural person’s shares | |||||||||
| II. Unrestricted shares | 283,161,227 | 100.00% | 0 | 0 | 0 | 0 | 0 | 283,161,227 | 100.00% |
| 1. RMB ordinary shares | 181,165,391 | 63.98% | 0 | 0 | 0 | 0 | 0 | 181,165,391 | 63.98% |
| 2. Domestically listed foreign shares | 101,995,836 | 36.02% | 0 | 0 | 0 | 0 | 0 | 101,995,836 | 36.02% |
| 3. Overseas listed foreign shares | |||||||||
| 4. Others | |||||||||
| III. Total shares | 283,161,227 | 100.00% | 0 | 0 | 0 | 0 | 0 | 283,161,227 | 100.00% |
Progress of shares buy-back
□ Applicable √ Not applicable
Implementation progress of reducing holdings of shares buy-back by centralized bidding
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to commonshareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
2. Changes of lock-up stocks
□ Applicable √ Not applicable
II. Securities issuance and listing
□ Applicable √ Not applicable
III. Amount of shareholders of the Company and particulars about shares holding
Unit: Share
| Total common stock shareholders in reporting period-end | 24,938 | Total preference shareholders with voting rights recovered at end of reporting period (if applicable) (see note 8) | 0 | |||||
| Particulars about common shares held above 5% by shareholders or top ten common shareholders | ||||||||
| Full name of Shareholders | Nature of shareholder | Proportion of shares held | Amount of common shares held at the end of reporting period | Changes in report period | Amount of restricted common shares held | Amount of common shares held without restriction | Information of shares pledged, tagged or frozen | |
| State of share | Amount | |||||||
| Wuhan Zhongheng Group | Domestic non-state-owned legal person | 42.13% | 119,289,894 | 0 | 0 | 119,289,894 | Frozen | 119,289,894 |
| SEG (HONG KONG) CO., LTD. | Overseas legal person | 5.85% | 16,569,560 | 0 | 0 | 16,569,560 | ||
| GOOD HOPE CORNER INVESTM | Overseas legal person | 2.50% | 7,072,000 | 0 | 0 | 7,072,000 | ||
ENTSLTD.
| ENTS LTD. | ||||||||
| Changjiang Securities Brokerage (Hong Kong) Co., Ltd. | Overseas legal person | 1.89% | 5,355,249 | 0 | 0 | 5,355,249 | ||
| Guoyuan Securities Brokerage (Hong Kong) Limited | Overseas legal person | 1.37% | 3,870,117 | 0 | 0 | 3,870,117 | ||
| Li Zhongqiu | Overseas nature person | 1.00% | 2,830,000 | 0 | 0 | 2,830,000 | ||
| Jin Guoping | Domestic nature person | 1,849,300 | 0 | 1,849,300 | ||||
| He Wei | Domestic nature person | 1,818,319 | 0 | 1,818,319 | ||||
| Yao Ming | Domestic nature person | 1,577,300 | 0 | 1,577,300 | ||||
| Li Wei | Domestic nature person | 1,546,800 | 0 | 1,546,800 | ||||
| Strategy investor or general legal person becoming the top 10 common shareholders by placing new shares (if applicable) (see note 3) | N/A | |||||||
| Explanation on associated relationship among the aforesaid shareholders | Among the top ten shareholders, Li Zhongqiu is the actual controller of Wuhan Zhongheng New Science & Technology Industrial Group Co., Ltd. and is a party acting in concert. The Company neither knew whether there exists associated relationship among the other shareholders, nor they belong to consistent actors that are prescribed in Measures for the Administration of Disclosure of Shareholder Equity Changes of Listed Companies. | |||||||
| Description of the above shareholders in relation to delegate/entrusted voting rights and abstention from | N/A | |||||||
voting rights.
| voting rights. | |||
| Special note on the repurchase account among the top 10 shareholders (if applicable) (see note 11) | N/A | ||
| Particular about top ten shareholders with un-lock up common stocks held | |||
| Shareholders’ name | Amount of common shares held without restriction at Period-end | Type of shares | |
| Type | Amount | ||
| Wuhan Zhongheng Group | 119,289,894 | RMB common share | 119,289,894 |
| SEG (HONG KONG) CO., LTD. | 16,569,560 | Domestically listed foreign shares | 16,569,560 |
| GOOD HOPE CORNER INVESTMENTS LTD. | 7,072,000 | Domestically listed foreign shares | 7,072,000 |
| Changjiang Securities Brokerage (Hong Kong) Co., Ltd. | 5,355,249 | Domestically listed foreign shares | 5,355,249 |
| Guoyuan Securities Brokerage (Hong Kong) Limited | 3,870,117 | Domestically listed foreign shares | 3,870,117 |
| Li Zhongqiu | 2,830,000 | Domestically listed foreign shares | 2,830,000 |
| Jin Guoping | 1,849,300 | RMB common share | 1,849,300 |
| He Wei | 1,818,319 | Domestically listed foreign shares | 1,818,319 |
| Yao Ming | 1,577,300 | Domestically listed foreign shares | 1,577,300 |
| Li Wei | 1,546,800 | Domestically listed | 1,546,800 |
foreignshares
| foreign shares | |||
| Expiation on associated relationship or consistent actors within the top 10 un-lock up common shareholders and between top 10 un-lock up common shareholders and top 10 common shareholders | Among the top ten shareholders, Li Zhongqiu is the actual controller of Wuhan Zhongheng New Science & Technology Industrial Group Co., Ltd. and is a party acting in concert. The Company neither knew whether there exists associated relationship among the other shareholders, nor they belong to consistent actors that are prescribed in Measures for the Administration of Disclosure of Shareholder Equity Changes of Listed Companies. | ||
| Explanation on top 10 common shareholders involving margin business (if applicable) (see note 4) | Among the top ten shareholders, Jin Guoping holds 0 shares through regular securities account and 1,849,300 shares through credit securities account. | ||
Whether top ten common stock shareholders or top ten common stock shareholders with un-lock up shares held have a buy-backagreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-lock up shares held of the Company have nobuy-back agreement dealing in reporting period.IV. Changes of shares held by directors, supervisors and senior executives
□ Applicable √ Not applicable
Shares held by directors, supervisors and senior executives have no changes in reporting period, found more details in Annual Report2021.V. Changes in controlling shareholders or actual controllers
Change of controlling shareholder during the reporting period
□ Applicable √ Not applicable
The Company had no change of controlling shareholder during the reporting periodChange of actual controller during the reporting period
□ Applicable √ Not applicable
The Company had no change of actual controller during the reporting period
Section VIII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the Period.
Section IX. Corporate Bonds
□ Applicable √ Not applicable
Section X. Financial Report
I. Audit reportWhether the semi annual report is audited
□ Yes √ No
The company's semi annual financial report has not been auditedII. Financial StatementStatement in Financial Notes are carried Unit: RMB/CNY/CNY
1. Consolidated Balance Sheet
Prepared by SHENZHEN ZHONGHENG HUAFA CO., LTD.
Unit: RMB/CNY
| Item | June 30, 2022 | January 1, 2022 |
| Current assets: | ||
| Monetary funds | 75,664,614.16 | 34,426,043.11 |
| Settlement provisions | ||
| Capital lent | ||
| Trading financial assets | ||
| Derivative financial assets | ||
| Note receivable | 60,827,292.54 | 105,922,317.60 |
| Account receivable | 133,872,767.55 | 128,675,327.97 |
| Receivable financing | 500,000.00 | |
| Accounts paid in advance | 19,963,828.94 | 7,996,570.95 |
| Insurance receivable | ||
| Reinsurance receivables | ||
| Contract reserve of reinsurance receivable | ||
| Other account receivable | 4,628,853.27 | 4,520,412.70 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Buying back the sale of financial assets | ||
| Inventories | 66,100,631.11 | 90,585,670.27 |
| Contractual assets | ||
| Assets held for sale | ||
| Non-current asset due within one year | ||
| Other current assets | 105,743.48 | 3,732,033.86 |
| Total current assets | 361,163,731.05 | 376,358,376.46 |
| Non-current assets: |
Loans and payments on behalf
| Loans and payments on behalf | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term account receivable | ||
| Long-term equity investment | ||
| Investment in other equity instrument | ||
| Other non-current financial assets | ||
| Investment real estate | 45,327,612.66 | 46,191,777.80 |
| Fixed assets | 183,280,126.25 | 187,889,261.50 |
| Construction in progress | 740,000.00 | 740,000.00 |
| Productive biological asset | ||
| Oil and gas asset | ||
| Right-of-use assets | 156,974.04 | 209,298.72 |
| Intangible assets | 38,310,208.33 | 39,171,573.09 |
| Expense on Research and Development | ||
| Goodwill | ||
| Long-term expenses to be apportioned | 1,528,018.90 | 1,691,257.89 |
| Deferred income tax asset | 7,645,824.11 | 7,681,680.11 |
| Other non-current asset | ||
| Total non-current asset | 276,988,764.29 | 283,574,849.11 |
| Total assets | 638,152,495.34 | 659,933,225.57 |
| Current liabilities: | ||
| Short-term loans | 11,433,573.00 | 26,480,857.00 |
| Loan from central bank | ||
| Capital borrowed | ||
| Trading financial liability | ||
| Derivative financial liability | ||
| Note payable | 22,605,511.76 | 21,554,981.30 |
| Account payable | 95,152,390.13 | 88,529,478.96 |
| Accounts received in advance | ||
| Contractual liability | 273,518.20 | 736,355.70 |
| Selling financial asset of repurchase | ||
| Absorbing deposit and interbank deposit | ||
| Security trading of agency | ||
| Security sales of agency | ||
| Wage payable | 4,427,543.85 | 3,844,381.07 |
| Taxes payable | 14,566,092.54 | 14,657,117.69 |
| Other account payable | 40,932,188.01 | 30,448,913.14 |
| Including: Interest payable | 93,178.03 | 113,080.26 |
| Dividend payable | ||
| Commission charge and commission payable | ||
| Reinsurance payable | ||
| Liability held for sale |
Non-current liabilities due within one year
| Non-current liabilities due within one year | 55,104,400.61 | 61,104,400.61 |
| Other current liabilities | 37,185,847.90 | 64,644,280.61 |
| Total current liabilities | 281,681,066.00 | 312,000,766.08 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term loans | ||
| Bonds payable | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Lease liability | 86,325.75 | 115,101.00 |
| Long-term account payable | ||
| Long-term wages payable | ||
| Accrual liability | 801,159.18 | 801,159.18 |
| Deferred income | 3,326,520.00 | 3,565,560.00 |
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 4,214,004.93 | 4,481,820.18 |
| Total liabilities | 285,895,070.93 | 316,482,586.26 |
| Owner’s equity: | ||
| Share capital | 283,161,227.00 | 283,161,227.00 |
| Other equity instrument | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 146,577,771.50 | 146,577,771.50 |
| Less: Inventory shares | ||
| Other comprehensive income | ||
| Reasonable reserve | ||
| Surplus public reserve | 77,391,593.25 | 77,391,593.25 |
| Provision of general risk | ||
| Retained profit | -154,873,167.34 | -163,679,952.44 |
| Total owner’ s equity attributable to parent company | 352,257,424.41 | 343,450,639.31 |
| Minority interests | ||
| Total owner’ s equity | 352,257,424.41 | 343,450,639.31 |
| Total liabilities and owner’ s equity | 638,152,495.34 | 659,933,225.57 |
Legal Representative: Li ZhongqiuPerson in charge of accounting works: Chen ZhigangPerson in charge of accounting institute: Chuai Guoxu
2. Balance Sheet of Parent Company
Unit: RMB/CNY
Item
| Item | June 30, 2022 | January 1, 2022 |
| Current assets: | ||
| Monetary funds | 819,726.82 | 619,099.39 |
| Trading financial assets | ||
| Derivative financial assets | ||
| Note receivable | ||
| Account receivable | ||
| Receivable financing | ||
| Accounts paid in advance | 402,189.53 | 52,129.33 |
| Other account receivable | 95,039,705.78 | 92,468,697.71 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Inventories | 14,806.50 | 14,806.50 |
| Contractual assets | ||
| Assets held for sale | ||
| Non-current assets maturing within one year | ||
| Other current assets | ||
| Total current assets | 96,276,428.63 | 93,154,732.93 |
| Non-current assets: | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term receivables | ||
| Long-term equity investments | 186,618,400.00 | 186,618,400.00 |
| Investment in other equity instrument | ||
| Other non-current financial assets | ||
| Investment real estate | 22,840,740.28 | 23,444,941.60 |
| Fixed assets | 96,561,485.97 | 96,839,357.63 |
| Construction in progress | 740,000.00 | 740,000.00 |
| Productive biological assets | ||
| Oil and natural gas assets | ||
| Right-of-use assets | ||
| Intangible assets | 4,191,344.94 | 4,263,817.80 |
| Research and development costs | ||
| Goodwill | ||
| Long-term deferred expenses | 969,444.45 | 969,444.45 |
| Deferred income tax assets | 7,555,266.74 | 7,555,266.74 |
| Other non-current assets | ||
| Total non-current assets | 319,476,682.38 | 320,431,228.22 |
| Total assets | 415,753,111.01 | 413,585,961.15 |
| Current liabilities: | ||
| Short-term borrowings | ||
| Trading financial liability | ||
| Derivative financial liability |
Notes payable
| Notes payable | ||
| Account payable | 10,745,840.16 | 10,745,840.16 |
| Accounts received in advance | ||
| Contractual liability | 269,268.20 | 263,321.38 |
| Wage payable | 939,175.02 | 1,209,937.19 |
| Taxes payable | 7,802,338.58 | 9,236,248.86 |
| Other accounts payable | 23,797,881.84 | 21,695,466.51 |
| Including: Interest payable | ||
| Dividend payable | ||
| Liability held for sale | ||
| Non-current liabilities due within one year | 55,000,000.00 | 61,000,000.00 |
| Other current liabilities | 13,859.02 | |
| Total current liabilities | 98,554,503.80 | 104,164,673.12 |
| Non-current liabilities: | ||
| Long-term loans | ||
| Bonds payable | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Lease liability | ||
| Long-term account payable | ||
| Long term employee compensation payable | ||
| Accrued liabilities | 801,159.18 | 801,159.18 |
| Deferred income | ||
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 801,159.18 | 801,159.18 |
| Total liabilities | 99,355,662.98 | 104,965,832.30 |
| Owners’ equity: | ||
| Share capital | 283,161,227.00 | 283,161,227.00 |
| Other equity instrument | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 146,587,271.50 | 146,587,271.50 |
| Less: Inventory shares | ||
| Other comprehensive income | ||
| Special reserve | ||
| Surplus reserve | 77,391,593.25 | 77,391,593.25 |
| Retained profit | -190,742,643.72 | -198,519,962.90 |
| Total owner’s equity | 316,397,448.03 | 308,620,128.85 |
| Total liabilities and owner’s equity | 415,753,111.01 | 413,585,961.15 |
3. Consolidated Profit Statement
Unit: RMB/CNY
| Item | 2022 semi-annual | 2021 semi-annual |
| I. Total operating income | 354,146,920.81 | 391,633,808.55 |
| Including: Operating income | 354,146,920.81 | 391,633,808.55 |
| Interest income | ||
| Insurance gained | ||
| Commission charge and commission income | ||
| II. Total operating cost | 347,992,076.14 | 381,924,442.73 |
| Including: Operating cost | 311,845,943.49 | 334,523,805.25 |
| Interest expense | ||
| Commission charge and commission expense | ||
| Cash surrender value | ||
| Net amount of expense of compensation | ||
| Net amount of withdrawal of insurance contract reserve | ||
| Bonus expense of guarantee slip | ||
| Reinsurance expense | ||
| Tax and extras | 2,051,860.11 | 1,428,361.92 |
| Sales expense | 9,503,158.57 | 14,094,617.96 |
| Administrative expense | 17,627,621.80 | 22,680,307.24 |
| R&D expense | 5,022,675.55 | 3,955,647.50 |
| Financial expense | 1,940,816.62 | 5,241,702.86 |
| Including: Interest expenses | 2,729,221.86 | 3,774,381.48 |
| Interest income | -88.74 | 189,945.55 |
| Add: Other income | 4,515,323.81 | 3,553.35 |
| Investment income (Loss is listed with “-”) | 180,088.19 | 149,767.58 |
| Including: Investment income on affiliated company and joint venture | ||
| The termination of income recognition for financial assets measured by amortized cost | ||
| Exchange income (Loss is listed with “-”) | ||
| Net exposure hedging income (Loss is listed with “-”) | ||
| Income from change of fair value (Loss is listed with “-”) | ||
| Loss of credit impairment (Loss is listed with “-”) | ||
| Losses of devaluation of asset (Loss is listed with “-”) | 0.00 | -1,350,000.00 |
| Income from assets disposal (Loss is listed with “-”) | 789,308.26 | |
| III. Operating profit (Loss is listed with “-”) | 11,639,564.93 | 8,512,686.75 |
| Add: Non-operating income | 40,574.92 | 276,599.04 |
| Less: Non-operating expense | 15,308.31 | 215,202.92 |
| IV. Total profit (Loss is listed with “-”) | 11,664,831.54 | 8,574,082.87 |
| Less: Income tax expense | 2,858,046.44 | 1,584,720.39 |
V. Net profit (Net loss is listed with “-”)
| V. Net profit (Net loss is listed with “-”) | 8,806,785.10 | 6,989,362.48 |
| (i) Classify by business continuity | ||
| 1.continuous operating net profit (net loss listed with ‘-”) | 8,806,785.10 | 6,989,362.48 |
| 2.termination of net profit (net loss listed with ‘-”) | ||
| (ii) Classify by ownership | ||
| 1.Net profit attributable to owner’s of parent company | 8,806,785.10 | 6,989,362.48 |
| 2.Minority shareholders’ gains and losses | ||
| VI. Net after-tax of other comprehensive income | ||
| Net after-tax of other comprehensive income attributable to owners of parent company | ||
| (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
| 1.Changes of the defined benefit plans that re-measured | ||
| 2.Other comprehensive income under equity method that cannot be transfer to gain/loss | ||
| 3.Change of fair value of investment in other equity instrument | ||
| 4.Fair value change of enterprise's credit risk | ||
| 5. Other | ||
| (ii) Other comprehensive income items which will be reclassified subsequently to profit or loss | ||
| 1.Other comprehensive income under equity method that can transfer to gain/loss | ||
| 2.Change of fair value of other debt investment | ||
| 3.Amount of financial assets re-classify to other comprehensive income | ||
| 4.Credit impairment provision for other debt investment | ||
| 5.Cash flow hedging reserve | ||
| 6.Translation differences arising on translation of foreign currency financial statements | ||
| 7.Other | ||
| Net after-tax of other comprehensive income attributable to minority shareholders | ||
| VII. Total comprehensive income | 8,806,785.10 | 6,989,362.48 |
| Total comprehensive income attributable to owners of parent Company | 8,806,785.10 | 6,989,362.48 |
| Total comprehensive income attributable to minority shareholders | ||
| VIII. Earnings per share: | ||
| (i) Basic earnings per share | 0.0311 | 0.0248 |
| (ii) Diluted earnings per share | 0.0311 | 0.0248 |
As for the enterprise combined under the same control, net profit of 0 Yuan achieved by the merged party before combination
while 0 Yuan achieved last period.Legal Representative: Li ZhongqiuPerson in charge of accounting works: Chen ZhigangPerson in charge of accounting institute: Chuai Guoxu
4. Profit Statement of Parent Company
Unit: RMB/CNY
| Item | 2022 semi-annual | 2021 semi-annual |
| I. Operating income | 24,122,414.00 | 22,146,204.31 |
| Less: Operating cost | 4,518,020.17 | 4,439,887.16 |
| Taxes and surcharge | 590,485.14 | 572,280.19 |
| Sales expenses | ||
| Administration expenses | 6,887,075.97 | 7,444,373.84 |
| R&D expenses | ||
| Financial expenses | 2,812,875.27 | 3,381,988.26 |
| Including: Interest expenses | 2,812,961.00 | 52,129.33 |
| Interest income | -88.74 | |
| Add: Other income | 4,085.02 | 3,306.96 |
| Investment income (Loss is listed with “-”) | ||
| Including: Investment income on affiliated Company and joint venture | ||
| The termination of income recognition for financial assets measured by amortized cost (Loss is listed with “-”) | ||
| Net exposure hedging income (Loss is listed with “-”) | ||
| Changing income of fair value (Loss is listed with “-”) | ||
| Loss of credit impairment (Loss is listed with “-”) | ||
| Losses of devaluation of asset (Loss is listed with “-”) | ||
| Income on disposal of assets (Loss is listed with “-”) | 254,400.00 | |
| II. Operating profit (Loss is listed with “-”) | 9,572,442.47 | 6,310,981.82 |
| Add: Non-operating income | 22,167.01 | 0.35 |
| Less: Non-operating expense | 240.23 | 8,500.00 |
| III. Total Profit (Loss is listed with “-”) | 9,594,369.25 | 6,302,482.17 |
| Less: Income tax | 1,817,050.07 | 1,236,934.73 |
| IV. Net profit (Net loss is listed with “-”) | 7,777,319.18 | 5,065,547.44 |
| (i) continuous operating net profit (net loss listed with ‘-”) | 7,777,319.18 | 5,065,547.44 |
| (ii) termination of net profit (net loss listed with ‘-”) | ||
| V. Net after-tax of other comprehensive income | ||
| (i) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
| 1.Changes of the defined benefit plans that re- |
measured
| measured | ||
| 2.Other comprehensive income under equity method that cannot be transfer to gain/loss | ||
| 3.Change of fair value of investment in other equity instrument | ||
| 4.Fair value change of enterprise's credit risk | ||
| 5. Other | ||
| (ii) Other comprehensive income items which will be reclassified subsequently to profit or loss | ||
| 1.Other comprehensive income under equity method that can transfer to gain/loss | ||
| 2.Change of fair value of other debt investment | ||
| 3.Amount of financial assets re-classify to other comprehensive income | ||
| 4.Credit impairment provision for other debt investment | ||
| 5.Cash flow hedging reserve | ||
| 6.Translation differences arising on translation of foreign currency financial statements | ||
| 7.Other | ||
| VI. Total comprehensive income | 7,777,319.18 | 5,065,547.44 |
| VII. Earnings per share: | ||
| (i) Basic earnings per share | ||
| (ii) Diluted earnings per share |
5. Consolidated Cash Flow Statement
Unit: RMB/CNY
| Item | 2022 semi-annual | 2021 semi-annual |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 296,973,278.94 | 244,756,106.28 |
| Net increase of customer deposit and interbank deposit | ||
| Net increase of loan from central bank | ||
| Net increase of capital borrowed from other financial institution | ||
| Cash received from original insurance contract fee | ||
| Net cash received from reinsurance business | ||
| Net increase of insured savings and investment | ||
| Cash received from interest, commission charge and commission | ||
| Net increase of capital borrowed | ||
| Net increase of returned business capital |
Net cash received by agents in sale and purchase of securities
| Net cash received by agents in sale and purchase of securities | ||
| Write-back of tax received | 2,582,436.42 | 2,152,394.35 |
| Other cash received concerning operating activities | 13,894,131.24 | 16,266,093.74 |
| Subtotal of cash inflow arising from operating activities | 313,449,846.60 | 263,174,594.37 |
| Cash paid for purchasing commodities and receiving labor service | 174,717,587.41 | 180,586,052.16 |
| Net increase of customer loans and advances | ||
| Net increase of deposits in central bank and interbank | ||
| Cash paid for original insurance contract compensation | ||
| Net increase of capital lent | ||
| Cash paid for interest, commission charge and commission | ||
| Cash paid for bonus of guarantee slip | ||
| Cash paid to/for staff and workers | 30,684,125.76 | 38,342,263.84 |
| Taxes paid | 18,183,319.71 | 13,863,743.82 |
| Other cash paid concerning operating activities | 40,144,591.34 | 52,200,904.14 |
| Subtotal of cash outflow arising from operating activities | 263,729,624.22 | 284,992,963.96 |
| Net cash flows arising from operating activities | 49,720,222.38 | -21,818,369.59 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | ||
| Cash received from investment income | 180,088.19 | 186,685.90 |
| Net cash received from disposal of fixed, intangible and other long-term assets | 3,855,290.26 | 21,750.00 |
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | 57,000,000.00 | |
| Subtotal of cash inflow from investing activities | 61,035,378.45 | 208,435.90 |
| Cash paid for purchasing fixed, intangible and other long-term assets | 1,682,052.83 | 2,524,810.50 |
| Cash paid for investment | ||
| Net increase of mortgaged loans | 0.00 | |
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | 57,000,000.00 | |
| Subtotal of cash outflow from investing activities | 58,682,052.83 | 2,524,810.50 |
| Net cash flows arising from investing activities | 2,353,325.62 | -2,316,374.60 |
| III. Cash flows arising from financing activities: | ||
| Cash received from absorbing investment | ||
| Including: Cash received from absorbing minority shareholders’ investment by subsidiaries | ||
| Cash received from loans | 18,332,990.00 | 57,190,879.00 |
| Other cash received concerning financing activities | ||
| Subtotal of cash inflow from financing activities | 18,332,990.00 | 57,190,879.00 |
| Cash paid for settling debts | 39,754,209.00 | 30,430,404.00 |
| Cash paid for dividend and profit distributing or interest paying | 3,036,885.11 | 3,578,255.11 |
Including: Dividend and profit of minority shareholder paid bysubsidiaries
| Including: Dividend and profit of minority shareholder paid by subsidiaries | ||
| Other cash paid concerning financing activities | ||
| Subtotal of cash outflow from financing activities | 42,791,094.11 | 34,008,659.11 |
| Net cash flows arising from financing activities | -24,458,104.11 | 23,182,219.89 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | 263,652.23 | -403,343.06 |
| V. Net increase of cash and cash equivalents | 27,879,096.12 | -1,355,867.36 |
| Add: Balance of cash and cash equivalents at the period -begin | 32,802,562.90 | 60,968,053.58 |
| VI. Balance of cash and cash equivalents at the period -end | 60,681,659.02 | 59,612,186.22 |
6. Cash Flow Statement of Parent Company
Unit: RMB/CNY
| Item | 2022 semi-annual | 2021 semi-annual |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 14,657,628.10 | 2,336,572.26 |
| Write-back of tax received | 0.00 | 0.00 |
| Other cash received concerning operating activities | 404,017.91 | 12,794,492.62 |
| Subtotal of cash inflow arising from operating activities | 15,061,646.01 | 15,131,064.88 |
| Cash paid for purchasing commodities and receiving labor service | ||
| Cash paid to/for staff and workers | 555,796.92 | 548,093.93 |
| Taxes paid | 5,094,652.76 | 3,454,113.92 |
| Other cash paid concerning operating activities | 398,328.69 | 1,380,064.32 |
| Subtotal of cash outflow arising from operating activities | 6,048,778.37 | 5,382,272.17 |
| Net cash flows arising from operating activities | 9,012,867.64 | 9,748,792.71 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | ||
| Cash received from investment income | ||
| Net cash received from disposal of fixed, intangible and other long-term assets | ||
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | ||
| Subtotal of cash inflow from investing activities | ||
| Cash paid for purchasing fixed, intangible and other long-term assets | ||
| Cash paid for investment | ||
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | ||
| Subtotal of cash outflow from investing activities | ||
| Net cash flows arising from investing activities |
III. Cash flows arising from financing activities:
| III. Cash flows arising from financing activities: | ||
| Cash received from absorbing investment | ||
| Cash received from loans | ||
| Other cash received concerning financing activities | ||
| Subtotal of cash inflow from financing activities | ||
| Cash paid for settling debts | 6,000,000.00 | 6,000,000.00 |
| Cash paid for dividend and profit distributing or interest paying | 2,812,240.21 | 3,383,290.96 |
| Other cash paid concerning financing activities | ||
| Subtotal of cash outflow from financing activities | 8,812,240.21 | 9,383,290.96 |
| Net cash flows arising from financing activities | -8,812,240.21 | -9,383,290.96 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | -1,509.10 | 0.00 |
| V. Net increase of cash and cash equivalents | 199,118.33 | 365,501.75 |
| Add: Balance of cash and cash equivalents at the period -begin | 526,531.11 | 966,379.17 |
| VI. Balance of cash and cash equivalents at the period -end | 725,649.44 | 1,331,880.92 |
7. Statement of Changes in Owners’ Equity (Consolidated)
Current Amount
Unit: RMB/CNY
| Item | 2022 semi-annual | ||||||||||||||
| Owners’ equity attributable to the parent Company | Minority interests | Total owners’ equity | |||||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Provision of general risk | Retained profit | Other | Subtotal | |||||
| Preferred stock | Perpetual capital securities | Other | |||||||||||||
| I. The ending balance of the previous year | 283,161,227.00 | 146,577,771.50 | 77,391,593.25 | -163,679,952.44 | 343,450,639.31 | 343,450,639.31 | |||||||||
| Add: Changes of accounting policy | |||||||||||||||
| Error correction of the last period | |||||||||||||||
Enterprisecombineunder thesame control
| Enterprise combine under the same control | |||||||||||||||
| Other | |||||||||||||||
| II. The beginning balance of the current year | 283,161,227.00 | 146,577,771.50 | 77,391,593.25 | -163,679,952.44 | 343,450,639.31 | 343,450,639.31 | |||||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | 8,806,785.10 | 8,806,785.10 | 8,806,785.10 | ||||||||||||
| (i) Total comprehensive income | 8,806,785.10 | 8,806,785.10 | 8,806,785.10 | ||||||||||||
| (ii) Owners’ devoted and decreased capital | |||||||||||||||
| 1.Common shares invested by shareholders | |||||||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||||||
| 4. Other | |||||||||||||||
| (iii) Profit distribution | |||||||||||||||
| 1. Withdrawal of surplus reserves |
2. Withdrawal
of generalriskprovisions
| 2. Withdrawal of general risk provisions | |||||||||||||||
| 3. Distribution for owners (or shareholders) | |||||||||||||||
| 4. Other | |||||||||||||||
| (iv) Carrying forward internal owners’ equity | |||||||||||||||
| 1. Capital reserves conversed to capital (share capital) | |||||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | |||||||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||||||
| 4. Carry-over retained earnings from the defined benefit plans | |||||||||||||||
| 5. Carry-over retained earnings from other comprehensive income | |||||||||||||||
| 6. Other | |||||||||||||||
| (v) Reasonable reserve | |||||||||||||||
| 1. Withdrawal |
in the reportperiod
| in the report period | |||||||||||||||
| 2. Usage in the report period | |||||||||||||||
| (vi) Others | |||||||||||||||
| IV. Balance at the end of the period | 283,161,227.00 | 146,577,771.50 | 77,391,593.25 | -154,873,167.34 | 352,257,424.41 | 352,257,424.41 |
Amount of the previous period
Unit: RMB/CNY
| Item | 2021 semi-annual | ||||||||||||||
| Owners’ equity attributable to the parent Company | Minority interests | Total owners’ equity | |||||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Provision of general risk | Retained profit | Other | Subtotal | |||||
| Preferred stock | Perpetual capital securities | Other | |||||||||||||
| I. The ending balance of the previous year | 283,161,227.00 | 146,577,771.50 | 77,391,593.25 | -170,881,854.46 | 336,248,737.29 | 336,248,737.29 | |||||||||
| Add: Changes of accounting policy | |||||||||||||||
| Error correction of the last period | |||||||||||||||
| Enterprise combine | |||||||||||||||
under thesame control
| under the same control | |||||||||||||||
| Other | |||||||||||||||
| II. The beginning balance of the current year | 283,161,227.00 | 146,577,771.50 | 77,391,593.25 | -170,881,854.46 | 336,248,737.29 | 336,248,737.29 | |||||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | 6,989,362.48 | 6,989,362.48 | 6,989,362.48 | ||||||||||||
| (i) Total comprehensive income | 6,989,362.48 | 6,989,362.48 | 6,989,362.48 | ||||||||||||
| (ii) Owners’ devoted and decreased capital | |||||||||||||||
| 1.Common shares invested by shareholders | |||||||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||||||
| 4. Other | |||||||||||||||
| (iii) Profit distribution | |||||||||||||||
| 1. Withdrawal of surplus reserves | |||||||||||||||
| 2. |
Withdrawalof generalriskprovisions
| Withdrawal of general risk provisions | |||||||||||||||
| 3. Distribution for owners (or shareholders) | |||||||||||||||
| 4. Other | |||||||||||||||
| (iv) Carrying forward internal owners’ equity | |||||||||||||||
| 1. Capital reserves conversed to capital (share capital) | |||||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | |||||||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||||||
| 4. Carry-over retained earnings from the defined benefit plans | |||||||||||||||
| 5. Carry-over retained earnings from other comprehensive income | |||||||||||||||
| 6. Other | |||||||||||||||
| (v) |
Reasonablereserve
| Reasonable reserve | |||||||||||||||
| 1. Withdrawal in the report period | |||||||||||||||
| 2. Usage in the report period | |||||||||||||||
| (vi) Others | |||||||||||||||
| IV. Balance at the end of the period | 283,161,227.00 | 146,577,771.50 | 77,391,593.25 | -163,892,491.98 | 343,238,099.77 | 343,238,099.77 |
8. Statement of Changes in Owners’ Equity (Parent Company)
Current Amount
Unit: RMB/CNY
| Item | 2022 semi-annual | |||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Other | Total owners’ equity | |||
| Preferred stock | Perpetual capital securities | Other | ||||||||||
| I. The ending balance of the previous year | 283,161,227.00 | 146,587,271.50 | 77,391,593.25 | -198,519,962.90 | 308,620,128.85 | |||||||
| Add: Changes of accounting policy | ||||||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. The beginning | 283,161,22 | 146,587,271. | 77,391,593.2 | -198, | 308,620,128.85 | |||||||
balance of thecurrent year
| balance of the current year | 7.00 | 50 | 5 | 519,962.90 | ||||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | 7,777,319.18 | 7,777,319.18 | ||||||||||
| (i) Total comprehensive income | 7,777,319.18 | 7,777,319.18 | ||||||||||
| (ii) Owners’ devoted and decreased capital | ||||||||||||
| 1.Common shares invested by shareholders | ||||||||||||
| 2. Capital invested by holders of other equity instruments | ||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | ||||||||||||
| 4. Other | ||||||||||||
| (iii) Profit distribution | ||||||||||||
| 1. Withdrawal of surplus reserves | ||||||||||||
| 2. Distribution for owners (or shareholders) | ||||||||||||
| 3. Other | ||||||||||||
| (iv) Carrying forward internal owners’ equity | ||||||||||||
| 1. Capital |
reservesconversed tocapital (sharecapital)
| reserves conversed to capital (share capital) | ||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | ||||||||||||
| 3. Remedying loss with surplus reserve | ||||||||||||
| 4. Carry-over retained earnings from the defined benefit plans | ||||||||||||
| 5. Carry-over retained earnings from other comprehensive income | ||||||||||||
| 6. Other | ||||||||||||
| (v) Reasonable reserve | ||||||||||||
| 1. Withdrawal in the report period | ||||||||||||
| 2. Usage in the report period | ||||||||||||
| (vi) Others | ||||||||||||
| IV. Balance at the end of the period | 283,161,227.00 | 146,587,271.50 | 77,391,593.25 | -190,742,643.72 | 316,397,448.03 |
Amount of the previous period
Unit: RMB/CNY
| Item | 2021 semi-annual | |||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive | Reasonable reserve | Surplus reserve | Retained profit | Other | Total owners’ equity | |||
| Preferre | Perpetual | Other | ||||||||||
dstock
| d stock | capital securities | income | ||||||||||
| I. The ending balance of the previous year | 283,161,227.00 | 146,587,271.50 | 77,391,593.25 | -206,887,603.69 | 300,252,488.06 | |||||||
| Add: Changes of accounting policy | ||||||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. The beginning balance of the current year | 283,161,227.00 | 146,587,271.50 | 77,391,593.25 | -206,887,603.69 | 300,252,488.06 | |||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | 5,065,547.44 | 5,065,547.44 | ||||||||||
| (i) Total comprehensive income | 5,065,547.44 | 5,065,547.44 | ||||||||||
| (ii) Owners’ devoted and decreased capital | ||||||||||||
| 1.Common shares invested by shareholders | ||||||||||||
| 2. Capital invested by holders of other equity instruments |
3. Amount
reckoned intoowners equitywith share-basedpayment
| 3. Amount reckoned into owners equity with share-based payment | ||||||||||||
| 4. Other | ||||||||||||
| (iii) Profit distribution | ||||||||||||
| 1. Withdrawal of surplus reserves | ||||||||||||
| 2. Distribution for owners (or shareholders) | ||||||||||||
| 3. Other | ||||||||||||
| (iv) Carrying forward internal owners’ equity | ||||||||||||
| 1. Capital reserves conversed to capital (share capital) | ||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | ||||||||||||
| 3. Remedying loss with surplus reserve | ||||||||||||
| 4. Carry-over retained earnings from the defined benefit plans | ||||||||||||
| 5. Carry-over |
retainedearnings fromothercomprehensive income
| retained earnings from other comprehensive income | ||||||||||||
| 6. Other | ||||||||||||
| (v) Reasonable reserve | ||||||||||||
| 1. Withdrawal in the report period | ||||||||||||
| 2. Usage in the report period | ||||||||||||
| (vi) Others | ||||||||||||
| IV. Balance at the end of the period | 283,161,227.00 | 146,587,271.50 | 77,391,593.25 | -201,822,056.25 | 305,318,035.50 |
III. Company profile
1. The registration place of the enterprise, the form of organization and the headquarters address
Shenzhen Zhongheng HUAFA Company Limited (hereinafter referred to as Company or the Company),established on 8 December 1981. Uniform social credit code 91440300618830372G.Registered place and head office of the Company: 411 Bldg., Huafa (N) Road, Futian District, ShenzhenLegal representative: Li ZhongqiuRegistered capital: RMB 283,161,227.00
2. The nature of the business and the main business activities.
The Company belongs to the computer, telecommunication and manufacturing of other electronic equipment.Business scope: producing and sales of vary color TV set, liquid crystal display, LCD (operates in branch), radio-recorder, sound equipment, electronic watch, electronic game and computers, the printed wiring board, precisioninjection parts, light packaging material (operates in Wuhan) and hardware (including tool and mould) for variouselectronic products and supporting parts, plating and surface treatment and tin wire, development and operation ofreal estate (Shen Fang Di Zi No.: 7226760) and property management. Funded affiliated companies in Wuhan andJilin. Setting up branches in capital of the province (Lhasa City excluded) in China and municipality directlyunder the central government.
3. Relevant party offering approval reporting of financial statements and date thereofThe financial statement has been deliberated and approved by BOD on August 20, 2022.Main subsidiaries included in the consolidate scope of the statement found in Note VIII-Equity in other subjectsIV. Preparation basis of Financial Statements
1. Preparation basis
Base on the running continuously and actual transactions and events, in line with the Accounting Standards forBusiness Enterprise – Basic Standards and specific principle of accounting standards issued by the Ministry ofFinance (hereinafter collectively referred to as Accounting Standards for Business Enterprise), the Companyprepared and formulate the financial statement lies on the followed important accounting policy and estimation.
2. Going concern
The Company expects that the production and sales will be in a virtuous cycle within 12 months from the end ofhe reporting period, and there is no risk that affects the continued operations.V. Important accounting policy and estimationNotes on specific accounting policies and accounting estimation:
The following disclosure has covered the specific accounting policies and accounting estimates formulated by theCompany according to the actual production and operation characteristics.
1. Declaration of obedience to Accounting Standards for Business EnterpriseThe Financial Statements of the Company are up to requirements of Accounting Standards for BusinessEnterprise and also a true and thorough reflection to the relevant information as the Company’s financial positiondated 30
thJune 2022 and the operation results as well as cash flow from January to June of 2022.
2. Accounting period
The Company’s accounting year is Gregorian calendar year, namely from 1
st
January to 31
stDecember of everyyear.
3. Business cycle
The Company’s business cycle is one year (12 months) as a normal cycle, and the business cycle is thedetermining criterion for the liquidity of assets and liabilities of the Company.
4. Bookkeeping standard currency
The Renminbi (RMB) is taken as the book-keeping standard currency.
5. Accounting methods for consolidation of enterprises under the same control or otherwise
5.1 Consolidation of enterprises under the same control
Where the Company for long term equity investment arising from business combination under common controlsatisfies the combination consideration by payment of cash, transfer of non-cash assets or assumption of debt, thecarrying value of the net assets of the acquire in combined financial statement of the ultimate controller shared bythe Company as at the combination date shall be deemed as the initial investment cost of such long term equityinvestment. If the equity instrument issued by combining party are consider as the combination consideration,than the total value of the issuing shares are consider as the share capital. The difference between the initial costof long-term equity investment and book value of consideration (or total face value of the shares issued) paid,capital surplus adjusted; if the capital surplus not enough to written down, than retained earning adjusted.
5.2 Business combination not under common control
As for business combination not under common control, combination costs refer to the sum of the fair value of theassets paid, liabilities occurred or assumed as well as equity securities issued by the acquirer to obtain control overthe acquire as at the acquisition date. As for acquiree that obtained by consolidation not under the same control,the qualified confirmation of identified assets, liability and contingency liabilities should calculated by fair valueon day of purchased. If the consolidation cost larger than the fair value amount of identified net assets fromacquiree’s, the differences should be recognized as goodwill. If the consolidation cost less than the fair valueamount of identified net assets from acquiree’s, the differences should reckoned into current non-operatingincome.
6. Preparation methods for consolidated financial statements
6.1 Consolidation financial statement range
The Company includes all the subsidiaries (including the separate entities controlled by the Company) intoconsolidated financial statement, including companies controlled by the Company, non-integral part of theinvestees and structural main body.
6.2 Centralize accounting policies, balance sheet dates and accounting periods of parent and subsidiaries.As for the inconsistency between the subsidiaries and the Company in the accounting policies and periods, thenecessary adjustment is made on the subsidiaries’ financial statements in the preparation of the consolidatedfinancial statements according to the Company’s accounting policies and periods.
6.3 Offset of consolidated financial statement
The consolidated financial statements shall be prepared on the basis of the balance sheet of the parent companyand subsidiaries, which offset the internal transactions incurred between the parent company and subsidiaries andwithin subsidiaries. The owner’s equity of the subsidiaries not attributable to the parent company shall bepresented as minority equity under the owner’s equity item in the consolidated balance sheet. The long termequity investment of the parent company held by the subsidiaries, deemed as treasury stock of the corporate groupas well as the reduction of owners’ equity, shall be presented as “Less: treasury stock” under the owners’ equityitem in the consolidated balance sheet.
6.4Accounting for acquisition of subsidiary through combination
For subsidiaries acquired under enterprise merger involving enterprises under common control, the assets,liabilities, operating results and cash flows of the subsidiaries are included in the consolidated financial statementsfrom the beginning of the financial year in which the combination took place. When preparing theconsolidated financial statements, for the subsidiaries acquired from business combination not involvingentities under common control, the identifiable net assets of the subsidiaries are adjusted on the basis of their fairvalues on the date of acquisition.
6.5 Accounting treatment of disposal subsidiaries
In the case of partial disposal of long-term equity investments in subsidiaries without loss of control, in theconsolidated financial statements, the difference between the disposal price and the net asset share correspondingto the disposal of long-term equity investments and enjoying the subsidiaries’ continued calculation from thepurchase date or the merger date is used to adjust the capital reserve (capital premium or equity premium). If thecapital reserve is insufficient to offset, the retained earnings are adjusted.
7. Determination criteria of cash and cash equivalent
The cash recognized in the preparation of the cash flow statements, is the Company’s storage cash and depositsavailable for payment anytime. The cash equivalents recognized in the preparation of the cash flow statementsrefers to the investment held by the Company with characteristic of short-term, strong mobility, easy transfer toknown sum cash and has slim risk from value changes.
8. Foreign currency exchange and the conversion of foreign currency statements
8.1 Foreign currency exchange
The approximate exchange rate of the spot exchange rate on transaction occurred should be used for standardmoney conversion while foreign currency exchange occurred On the balance sheet day, the monetary items are
converted on the current rate on the balance sheet day, concerning the exchange differences between the spotexchange rate on that date and initial confirmation or the sport exchange rate on previously balance sheet date,should reckoned in to current gains/losses except the capitalizing on exchange differences for foreign specificloans, which was reckoned into cost for capitalizing. The non-monetary items measured on the historic cost arestill measured by the original bookkeeping rate with the sum of the bookkeeping standard currency unchanged.Items of non-monetary foreign currency which was calculated by fair value, should converted by spot exchangerate on the confirmation day of fair value, difference between the converted amount of bookkeeping currency andoriginal amount of bookkeeping currency, was treated as changes of fair value (including exchange rate changed)reckoned into current gains/losses or recognized as other consolidated income.
8.2 Conversion of foreign currency financial statements
Upon the conversion of the foreign currency financial statements of the controlling subsidiaries, joint enterprises,and the affiliated enterprises on the bookkeeping standard currency different from the Company’s, the accountingcheck and preparation of the consolidated financial statements are made. Assets and liabilities items in the balancesheet are converted on the current rate on the balance sheet day; owners’ equity items besides the “retained profit”item, the other items are converted on the actual rate. Items of revenue and expenses in profit statement, shouldconverted by the approximate exchange rate of spot exchange rate on occurring date. The conversion difference ofthe foreign currency financial statements is listed specifically in the owners’ equity in the balance sheet. If theforeign cash flow determined by rational system method, the approximate exchange rate of spot exchange rate onoccurring date should prevail. The cash influenced by the rate fluctuation is listed specifically in the cash flowstatement. As for the foreign operation, the conversion difference of the foreign currency statement related to theforeign operation is transferred in proportion into the disposal of the current loss/gain.
9. Financial instrument
9.1 Category and recognition of financial instrument
Financial instrument is the contract that taken shape of the financial asses for an enterprise and of the financialliability or equity instrument for other units.
(1) Financial assets
The Company classifies financial assets that meet the following conditions as financial assets measured atamortized cost: ① The Company’s business model for managing financial assets is to collect contractual cashflows as its goal; ② The contractual terms of the financial assets stipulate that the cash flow generated on aspecific date is only the payment of principal and interest based on the outstanding principal amount.
For investment in non-trading equity instruments, the Company may irrevocably designate it as a financial assetmeasured at fair value and its changes included in other comprehensive income at initial recognition. The
designation is made on the basis of a single investment, and the relevant investment meets the definition of equityinstruments from the perspective of the issuer.
Except for financial assets classified as financial assets measured at amortized cost and financial assets measuredat fair value and whose changes are included in other comprehensive income, the Company classifies the financialassets as financial assets measured at fair value and whose changes are included in current profit or loss. At theinitial recognition, if the accounting mismatch can be eliminated or reduced, the Company can irrevocablydesignate the financial asset as a financial asset measured at fair value and its changes are included in the currentprofit and loss.
(2) Financial liabilities
Financial liabilities are classified as financial liabilities measured at fair value and whose changes are included inthe current profit or loss, financial liabilities formed by the transfer of financial assets that does not meet theconditions for derecognition or continues to be involved in the transferred financial assets, and financial liabilitiesmeasured at amortized cost at initial recognition. All financial liabilities are not reclassified.
9.2 Measurement of financial instruments
The initial recognition of the Company’s financial instruments is measured at fair value. For financial assets andfinancial liabilities measured at fair value and whose changes are included in the current profit and loss, therelated transaction costs are directly included in the current profit and loss; for other types of financial assets orfinancial liabilities, the related transaction costs are included in the initial recognition amount. For the accountsreceivable or bills receivable arising from the sale of products or the provision of labor services, not containing ornot considering significant financing components, the Company shall use the amount of consideration expected tobe received as the initial recognition amount. The subsequent measurement of financial instruments depends ontheir classification.
(1) Financial assets
① Financial assets measured at amortized cost. After initial recognition, such financial assets are measured atamortized cost by using the effective interest method. Gains or losses arising from financial assets that aremeasured at amortized cost and do not belong to any hedging relationship are included in the current profit or losswhen they are derecognized, reclassified, amortized in accordance with the effective interest rate method, orrecognized for impairment.
② Financial assets measured at fair value and whose changes are included in the current profit and loss. Afterinitial recognition, for such financial assets (except for a part of financial assets that belong to the hedgingrelationship), the fair value is used for subsequent measurement, and the resulting gains or losses (includinginterest and dividend income) are included in the current profit and loss.
③ Investment in debt instruments measured at fair value and whose changes are included in other comprehensiveincome. After initial recognition, the subsequent measurement of such financial assets is conducted at fair value.Interest, impairment losses or gains calculated by using the effective interest rate method and the exchange gainsand losses are included in the current profit and loss, and other gains or losses are included in othercomprehensive income. In derecognition, the accumulated gains or losses previously included in othercomprehensive income are transferred out of other comprehensive income and included in the current profit andloss.
(2) Financial liabilities
① Financial liabilities measured at fair value and whose changes are included in the current profit and loss. Suchfinancial liabilities include trading financial liabilities (including derivatives that belong to financial liabilities)and financial liabilities designated to be measured at fair value and whose changes are included in the currentprofit and loss. After initial recognition, the subsequent measurement of such financial liabilities is at fair value,except for those related to hedge accounting, gains or losses (including interest expenses) resulting from changesin the fair value of trading financial liabilities are included in the current profit and loss. If a financial liabilitydesignated to be measured at fair value and whose changes are included in the current profit or loss, the amount ofchange in the fair value of the financial liability caused by changes in the enterprise’s own credit risk is includedin other comprehensive income, other changes in fair value are included in the current profit and loss. If theimpact of changes in the financial liability’s own credit risk included in other comprehensive income causes orexpands the accounting mismatch in profit or loss, the Company will include all gains or losses on the financialliability in the current profit and loss.
② Financial liabilities measured at amortized cost. After initial recognition, such financial liabilities are measuredat amortized cost by using the effective interest method.
9.3 The Company’s methods for confirming the fair value of financial instrumentsIf the financial instrument has an active market, the fair value is determined by the quoted price in the activemarket; if the financial instrument doesn’t have an active market, the fair value is determined by adopting thevaluation technique. Valuation techniques mainly include market approach, income approach and cost approach.In limited circumstances, if the recent information used to determine fair value is insufficient, or the range ofpossible estimated amounts of fair value is widely distributed, and the cost represents the best estimate of fairvalue within this range, the cost may represent the appropriate estimates of fair value within this distribution range.The Company uses all information on the performance and operation of the investee gettable after the initialrecognition date to determine whether the cost represents the fair value or not.
9.4 Confirmation basis and measurement method for the transfer of liabilities of financial assets
(1)Financial assets
If the Company’s financial asset meets one of the following conditions, it shall be terminated for confirmation: ①
The contract right to receive the cash flow of the financial asset is terminated; ② The financial asset has beentransferred, and the Company has transferred almost all risks and rewards of ownership of the financial asset; ③The financial asset has been transferred, although the Company has neither transferred nor retained almost all theremuneration in the ownership of the financial asset, it has not retained control of the financial asset.
If the transfer of financial assets meets the conditions for derecognition, the difference between the following twoamounts shall be included in the current profit and loss: ① The book value of the transferred financial assets onthe date of derecognition; ② The sum of the consideration received for the transfer of financial assets and theamount corresponding to the derecognized part of the cumulative amount of changes in fair value that was directlyincluded in other comprehensive income (the financial assets involved in the transfer are classified as financialassets measured at fair value and their changes are included in other comprehensive income).
(2) Financial liability
If the current obligation of the financial liability (or part of it) has been discharged, the Company derecognizes thefinancial liability (or part of the financial liability).
If the financial liability (or part of it) is derecognized, the Company shall include the difference between its bookvalue and the consideration paid (including non-cash assets transferred out or liabilities assumed) into the currentprofit and loss.
10.Note receivable
10.1 How to determine expected credit losses
Based on expected credit losses, the Company makes impairment accounting treatment and confirm lossprovisions for financial assets (including receivables) measured at amortized cost and financial assets (includingreceivables financing) that are measured at fair value and whose changes are included in other comprehensiveincome, and lease receivables.
The Company assesses on each balance sheet date whether the credit risk of relevant financial instruments hasincreased significantly since initial recognition, and divides the process of credit impairment of financialinstruments into three stages, and adopts different accounting treatment methods for financial instrumentsimpairment at different stages: (1) In the first stage, if the credit risk of a financial instrument has not increasedsignificantly since its initial recognition, the Company shall measure the loss provisions according to the expectedcredit losses of the financial instrument in the next 12 months, and calculate the interest income according to itsbook balance (i.e. without deducting impairment) and actual interest rate; (2) In the second stage, if the credit riskof a financial instrument has increased significantly since the initial recognition but no credit impairment has
occurred, the Company shall measure the loss provisions according to the expected credit losses of the financialinstrument during the entire duration, and calculate the interest income according to its book balance and actualinterest rate; (3) In the third stage, if the credit impairment occurs after initial recognition, the Company shallmeasure loss provisions based on the expected credit losses of the financial instrument for the entire duration, andcalculate the interest income according to its book balance and actual interest rate.
(1) Methods of measuring loss provisions for financial instruments with lower credit riskFor financial instruments with lower credit risk on the balance sheet date, the Company can directly make theassumption that the credit risk of the instrument has not increased significantly since the initial recognitionwithout comparing with the credit risk at the initial recognition.
If the default risk of financial instruments is low, the debtor’s ability to fulfill its contractual cash flow obligationsis strong in the short term, and even if there are adverse changes in the economic situation and operatingenvironment over a long period of time, it may not necessarily reduce the borrower’s ability to fulfill thecontractual cash flow obligations, the financial instrument shall be considered to have lower credit risk.
(2) Methods of measuring loss provisions for accounts receivable and lease receivables
①Receivables that do not contain significant financing components. For the receivables formed by transactionsregulated by “Accounting Standards for Business Enterprises No.14-Revenue” and without containing significantfinancing components, the Company adopts a simplified method, that is, it always calculates the loss provisionsbased on the expected credit losses for the entire duration.
Based on the nature of financial instruments, the Company assesses whether credit risk has increased significantlyon the basis of individual financial assets or financial assets portfolios. The Company divides the notes receivableand accounts receivable into several portfolios based on the characteristics of credit risk, and calculates theexpected credit losses on the basis of the portfolios, the basis for determining the portfolios is as follows:
Accounts receivable portfolio 1: A portfolio that uses the aging of accounts receivables as credit riskcharacteristics,Accounts receivable portfolio 2: Combination of related parties included in the scope of consolidated statementsNotes receivable portfolio 1: Same as the division of accounts receivable portfolioNotes receivable portfolio 2: Management evaluates that this type of fund is bank acceptance portfolio with lowercredit risk
For the accounts receivable and notes receivable being divided into portfolio 1, the Company refers to thehistorical credit loss experience, combines with the current conditions and the prediction of future economicsituation, and prepares a comparison table of the aging of accounts receivable and the expected credit loss rate ofthe entire duration, and calculates the expected credit losses.
For accounts receivable and notes receivable being divided into portfolio 2, the Company refers to historical creditloss experience, combines with the current conditions and the predictions of future economic conditions, andcalculates the expected credit losses of 0% through default risk exposure and expected credit loss rate for theentire duration.
②Accounts receivables and leases receivables that contain significant financing components. For accountsreceivables that contain significant financing components and leases receivables regulated by “AccountingStandards for Business Enterprises No. 21-Leases”, the Company measures loss provisions in accordance with thegeneral method, that is, the “third stage” model.
(3) Methods of measuring loss reserves for other financial assets
For financial assets other than the above, such as debt investment, other debt investment, other receivables, long-term receivables other than lease receivables, etc., the Company uses the general method, that is, the three-stagemodel to measure loss reserves.When measuring the credit impairment of financial instruments, the Company considers the following factors inassessing whether the credit risk has increased significantly:
The Company divides other receivables into a number of portfolios based on the nature of the money, andcalculates the expected credit loss on the basis of the portfolio. The basis for determining the portfolio is asfollows:
Other receivables portfolio 1: A portfolio of unrelated parties with provision for impairment in accordance withthe expected loss rate
Other receivables portfolio 2: A portfolio of related parties included in the scope of the consolidated statement
For other receivables classified into portfolio 1, the Company refers to historical credit loss experience, combineswith current conditions and forecasts of future economic conditions, compiles a comparison table of accountsreceivable aging and expected credit loss rate of the entire duration, and calculates the expected credit loss.
For other receivables classified into portfolio 2, the Company refers to historical credit loss experience, combineswith current conditions and forecasts of future economic conditions, and calculates an expected credit loss of 0%through the default risk exposure and the expected credit loss rate of the entire duration .
(4)Accrual method of bad debt provision for those accrual by account age as the portfolio
Account age Expected credit loss rate of receivable (%) Expected credit loss rate of other receivable (%)Within one year (one year included) 0 0
1-2 years 5 52-3 years 10 10Over 3 years 30 30
10.2 Accounting treatment methods of expected credit losses
In order to reflect the changes in the credit risk of financial instruments since initial recognition, the Companyremeasures the expected credit losses on each balance sheet date, and the resulting increase or reversal of the lossprovisions should be counted as an impairment loss or gain and included in the current profit and loss, and basedon the type of financial instrument, offsets the book value of the financial asset listed in the balance sheet orincludes in the estimated liability (loan commitment or financial guarantee contract) or includes in othercomprehensive income (debt investments measured at fair value and whose changes are included in othercomprehensive income).
11. Account receivable
Same as 10. Note receivable
12.Receivable financing
Same as 10. Note receivable
13. Other account receivable
Determination and accounting treatment on the expected credit losses of other account receivable
Same as 10. Note receivable
14. Inventory
14.1 Categories of inventory
The inventory is goods or manufactured products held for sale, products in process, and materials and mattersutilized in the production or supply of labor. Mainly including raw material, revolving materials (wrappage andlow-value consumption goods etc.), outside processing materials, goods in process, semi-finished goods, stocksand so on.
14.2 Accounting method for inventory delivery
When inventories are issued, the actual cost is determined by weighted average method.
14.3 Accrual method inventory falling price reserves
On the balance sheet day, the inventory is measured on the lower one between the cost and the net realizable value,and the provision for the falling price reserves is accrued on each inventory item; however, as for the inventory oflarge quantity and low price, the provision is accrued on the inventory category.
14.4 Inventory system
Inventory system of the Company is perpetual inventory system
14.5 Amortization method for the low-value consumables and wrap page
Low-value consumables and packages are amortized by one-point method
15. Contract assets
The Company lists the right to receive consideration (and this right depends on factors other than the passage oftime) that has transferred goods or services to the customer as a contract asset.
Impairment of contract assets is based on expected credit losses. For the determination method and accountingtreatment method of the expected credit loss of the contract assets of the Company, please refer to (11) NotesReceivable.
16.Contract costs
The Company’s contract cost includes the incremental cost for obtaining contracts and contract performance cost.The incremental cost incurred to obtain a contract (contract acquisition cost) is the cost that would not have beenincurred if the contract had not been obtained. If the cost is expected to be recovered, the Company shallrecognize it as an asset as the contract acquisition cost.
If the cost incurred by the Company for performing the contract does not fall within the scope of the inventory andother accounting standards and meets the following conditions at the same time, it shall be recognized as an assetas the contract performance cost:
1. The cost is directly related to a current or expected contract, including direct labor, direct materials,manufacturing overhead (or similar expenses), cost clearly borne by the user, and other cost incurred solely as aresult of the contract;
2. The cost increases the Company’s future resources for fulfilling its performance obligations;
3. The cost is expected to be recovered.
The Company amortizes the asset (hereinafter referred to as the “asset related to the contract cost”) recognized bythe contract acquisition cost and the contract performance cost on the same basis as the revenue from thecommodity related to the asset, and includes it in the current profit and loss. If the amortization period of the assetformed by the incremental cost for obtaining the contract does not exceed one year, it shall be included in thecurrent profit and loss when it occurs.
When the book value of the asset related to the contract cost is higher than the difference between the followingtwo items, the Company shall make provision for impairment of the excess and recognize it as an assetimpairment loss:
1. The remaining consideration expected to be obtained due to the transfer of commodity related to the asset;
2. The estimated cost to be incurred for the transfer of the relevant commodity.
17. Long-term equity investment
17.1 Recognition of initial investment cost
For a long-term equity investment obtained by a business combination, if it is a business combination under thesame control, take the share of the combine party obtained in the book value of the net assets in the consolidatedfinancial statements of the ultimate controlling party on the combination date as the initial investment cost; in thecase of the consolidation of enterprises not under the same control, recognized as the initial cost is the recognizedconsolidation cost on the purchase day. As for the long term equity investment obtained by cash payment, theinitial investment cost is the actual purchase payment. As for the long term equity investment obtained by theequity securities offering, the initial investment cost is the fair value of the equity securities. As for the long-termequity investment obtained by debt reorganization, initial investment cost of such investment should determine byrelevant regulation of the “Accounting Standards for Business Enterprise No.12- Debt Reorganization”; as for thelong term equity investment obtained by the exchange of the non-monetary assets, the initial investment cost isrecognized on the relevant rules in the “Accounting Standards for Business Enterprise No. 7- Exchange of Non-Monetary Assets”
17.2 Subsequent measurement and profit or loss recognition
Where the company has a control over the investee, long-term equity investments are measured using cost method.Long-term equity investments in associates and joint ventures are measured using equity method. Where part ofthe equity investments of an investor in its associates are held indirectly through venture investment institutions,common fund, trust companies or other similar entities including investment linked insurance funds, such part ofequity investments indirectly held by the investor shall be measured at fair value through profit or loss accordingto according to relevant requirements of Accounting Standards for Business Enterprises No.22—Recognition andmeasurement of Financial Instruments regardless whether the above entities have significant influence on suchpart of equity investments, while the remaining part shall be measured using equity method.
17.3 Basis of conclusion for common control and significant influence over the investeeJoint control over an investee refers to where the activities which have a significant influence on return on certainarrangement could be decided only by mutual consent of the investing parties sharing the control, which includesthe sales and purchase of goods or services, management of financial assets, acquisition and disposal of assets,research and development activities and financing activities, etc.; Significant influence on the investee refers tothat: significant influence over the investee exists when holding more than 20% but less than 50% of the shareswith voting rights or even if the holding is below 20%, there is still significant influence if any of the followingconditions is met: there is representative in the board of directors or similar governing body of the investee;participation in the investee’s policy setting process; assign key management to the investee; the investee relies onthe technology or technical information of the investing company; or major transactions with the investee.
18. Investment real estate
Measurement for investment real estateCost methodDepreciation or amortization methodThe leased buildings in the Company’s investment property adopts straight-line depreciation to calculate anddistill depreciation, specific accounting policy are same as part of the fixed assets. The leased land use rights inthe investment property and the land use rights to be transferred after appreciation adopt straight-line amortization,specific accounting policy are same as part of the intangible assets.
19. Fixed assets
(1) Recognition
Fixed assets refers to the tangible assets holding for purpose of producing goods, providing labor services, leasingor operation management, which has one accounting fiscal year of using life. Meanwhile as up to the followingconditions, they are recognized: the economic interest related to the fixed assets probably flow into the Company;the cost of the fixed assets can be measured reliably.
(2) Depreciation method
| Category | Depreciation method | Depreciation life (year) | Salvage rate | Annual depreciation rate |
| House building | Straight-line depreciation | 20-50 | 10 | 1.80-4.50 |
| Machinery equipment | Straight-line depreciation | 10 | 10 | 9 |
| Mold equipment | Straight-line | 3 | 10 | 30 |
depreciation
| depreciation | ||||
| Transportation equipment | Straight-line depreciation | 5 | 10 | 18 |
| Instrument equipment | Straight-line depreciation | 5 | 10 | 18 |
| Tool equipment | Straight-line depreciation | 5 | 10 | 18 |
| Office equipment | Straight-line depreciation | 5 | 10 | 18 |
The fixed assets under financing lease are the lease that has substantially transferred all the risks and rewardsassociated with asset ownership. The initial valuation of the fixed assets under financing lease is to take the lowerone between the fair value of the leased assets and the present value of the minimum lease payments on the startdate of the lease period as the entry value; the subsequent valuation of the fixed assets under financing leaseadopts the depreciation policy consistent with the own fixed assets to make depreciation and impairment provision.
(3) Recognition basis, valuation and depreciation method for fixed assets under financing leaseThe fixed assets under financing lease are the lease that has substantially transferred all the risks and rewardsassociated with asset ownership. The initial valuation of the fixed assets under financing lease is to take the lowerone between the fair value of the leased assets and the present value of the minimum lease payments on the startdate of the lease period as the entry value; the subsequent valuation of the fixed assets under financing leaseadopts the depreciation policy consistent with the own fixed assets to make depreciation and impairment provision.
20. Construction in process
21. Borrowing expenses
21.1 Recognition principle on capitalization of borrowing expenses
As for the Company’s actual borrowing expenses directly attributable to the assets construction or production, it iscapitalized and reckoned into the relevant assets cost; as for other borrowing expenses, it is recognized on theactual sum and reckoned into the current loss/gain. The assets up to the capitalization are assets as the capitalassets, investment real estate, and inventory reaching the expectant availability or sale ability.
21.2 Calculation of the capitalization
Capitalization term: the period from the time starts to capitalization to the time the capitalization ends. The periodof capitalization suspended is not included. The capitalization of borrowing expenses should be suspended whilethe abnormal interrupt, which surpass three months continuously, in the middle of acquisition or construction orproduction.
As for the borrowing of the specific borrowing, the capitalization sum is recognized on the current actual
interest expenses less the interest income of the borrowing capital not utilized but deposited in the bank or thereturn of the temporary investment; As for the appropriation of the general borrowing, the capitalization sum isrecognized on the weighted average of, the accumulative assets expenditure above the specific borrowing, andtimes the capitalization rate of the appropriation; As for the discount or premium of the borrowing, the discount orpremium to be diluted in every accounting period is recognized in the actual rate method.
The effective interest method is the method for the measurement of the diluted discount or premium or interestexpenses on the actual interest rate; and the actual interest rate is the interest rate used in the discount of the futurecash flow in the expectant duration period as the current book value of the borrowing.
22. Right-of-use assets
For right-of-use assets, if the lessee can reasonably determine that the ownership of the leased asset can beobtained when the lease term expires, it shall accrue depreciation over the remaining useful life of the leased asset.If it cannot be reasonably determined that the ownership of the leased asset can be obtained at the expiration of thelease term, depreciation shall be accrued within the shorter of the lease term and the remaining useful life of theleased asset. At the same time, the lessee needs to determine whether the right-of-use asset is impaired, andconducts accounting treatment for the recognized impairment loss.
23. Intangible assets
(1) Accounting method, service life and impairment test
1. Recognition principle on capitalization of borrowing expenses
As for the Company’s actual borrowing expenses directly attributable to the assets construction or production, it iscapitalized and reckoned into the relevant assets cost; as for other borrowing expenses, it is recognized on theactual sum and reckoned into the current loss/gain. The assets up to the capitalization are assets as the capitalassets, investment real estate, and inventory reaching the expectant availability or sale ability.
2. Calculation of the capitalization
Capitalization term: the period from the time starts to capitalization to the time the capitalization ends. The periodof capitalization suspended is not included. The capitalization of borrowing expenses should be suspended whilethe abnormal interrupt, which surpass three months continuously, in the middle of acquisition or construction orproduction.
As for the borrowing of the specific borrowing, the capitalization sum is recognized on the current actualinterest expenses less the interest income of the borrowing capital not utilized but deposited in the bank or thereturn of the temporary investment; As for the appropriation of the general borrowing, the capitalization sum isrecognized on the weighted average of, the accumulative assets expenditure above the specific borrowing, and
times the capitalization rate of the appropriation; As for the discount or premium of the borrowing, the discount orpremium to be diluted in every accounting period is recognized in the actual rate method.
The effective interest method is the method for the measurement of the diluted discount or premium or interestexpenses on the actual interest rate; and the actual interest rate is the interest rate used in the discount of the futurecash flow in the expectant duration period as the current book value of the borrowing.
(2) Accounting policies for internal research and development expenditure
Specific criteria for the research phase and development phase of internal R&D projects, and specific criteria fordevelopment phase expenditures to qualify for capitalization
Expenditures for internal research and development projects at the research phase shall be included in the currentprofit or loss when incurred; expenditures incurred at the development phase and recognized as intangible assetsshall be transferred to intangible assets accounting.
24. Long-term assets impairment
Long-term equity investments, investment properties measured at cost and long-term assets such as fixed assets,construction in progress, productive biological assets at cost method, oil and gas assets, intangible assets andgoodwill are tested for impairment if there is any indication that an asset may be impaired at the balance date. Ifthe result of the impairment test indicates that the recoverable amount of the asset is less than its carrying amount,a provision for impairment and an impairment loss are recognized for the amount by which the asset’s carryingamount exceeds its recoverable amount.
The recoverable amount is the higher of an asset’s fair value less costs to sell and the present value of the futurecash flows expected to be derived from the asset. Provision for asset impairment is determined and recognized onthe individual asset basis. If it is not possible to estimate the recoverable amount of an individual asset, therecoverable amount of a group of assets to which the asset belongs is determined. A group of assets is the smallestgroup of assets that is able to generate independent cash inflows.
Goodwill arising from a business combination is tested for impairment at least at each year end, irrespective ofwhether there is any indication that the asset may be impaired. For the purpose of impairment testing, the carryingamount of goodwill acquired in a business combination is allocated from the acquisition date on a reasonablebasis to each of the related asset groups; if it is impossible to allocate to the related asset groups, it is allocated toeach of the related set of asset groups. If the carrying amount of the asset group or set of asset groups is higherthan its recoverable amount, the amount of the impairment loss first reduced by the carrying amount of thegoodwill allocated to the asset group or set of asset groups, and then the carrying amount of other assets (otherthan the goodwill) within the asset group or set of asset groups, pro rata based on the carrying amount of each
asset.
Once the impairment loss of such assets is recognized, it is not be reversed in any subsequent period.
25. Long-term deferred expenses
The Company’s long-term deferred expenditure are expenses paid out and with one year above (one-yearexcluded) benefit period. The long-term deferred expenses are diluted by periods according to the benefit period.As the long-term deferred expenses cannot enable the accounting period’s beneficiary, all dilution values of theproject undiluted yet, are transferred into the current loss/gain.
26. Contract liability
The company presents the obligation to transfer goods or provide services to customers for consideration receivedor receivable as a contract liability.
27. Employees remuneration
(1) Accounting for short-term benefits
In the period of employee services, short-term benefits are actually recognized as liabilities and charged to profitor loss, or if otherwise required or allowed by other accounting standards, to the related costs of assets for thecurrent period. At the time of actual occurrence, The Company’s employee benefits are recorded into the profitsand losses of the current year or assets associated costs according to the actual amount. The non-monetaryemployee benefits are measured at fair value. Regarding to the medical and health insurance, industrial injuryinsurance, maternity insurance and other social insurances, housing fund and labor union expenditure andpersonnel education that the Company paid for employees, the Company should recognize correspondingemployees benefits payable according to the appropriation basis and proportion as stipulated by relevantrequirements and recognize the corresponding liabilities and include these expenses in the profits or losses of thecurrent period or recognized as respective assets costs.
(2) Accounting for post-employment benefits
During the accounting period in which an employee provides service, the amount payable calculated underdefined contribution scheme shall be recognized as a liability and recorded in profit and loss of the current periodor in assets. In respect of the defined benefit scheme, the Company shall use the projected unit credit method andattribute the welfare obligations calculated using the formula stipulated by the defined benefit scheme to theservice period of the employee, and record the obligation in the current profit and loss or related assets cost.
(3) Accounting for termination benefits
The Company recognizes a liability and expenses in the current profit or loss for termination benefits at the earlierof the following dates: when the Company can no longer withdraw the offer of those benefits; and when theCompany recognizes costs for restructuring involving the payment of termination costs.
(4) Accounting for other long-term employee benefits
The Company provides other long-term employee benefits to its employees. For those falling within the scope ofdefined contribution scheme, the Company shall account for them according to relevant requirements of thedefined contribution scheme. In addition, the Company recognizes and measures the net liabilities or net assets ofthe other long-term employee benefits according to relevant requirements of the defined contribution scheme.
28. Lease liability
For the lease liabilities, the lessee shall calculate the interest expenses on the lease liability for each period of thelease term and reckon into current gain/loss.
29. Accrual liability
The obligation related to contingencies is the current obligation assumed by the company, and performing thisobligation may result in an outflow of economic benefits, and this obligation can be determined as the estimatedliabilities when the amount can be reliably measured. The Company makes initial measurement in accordancewith the best estimate for performing the related current obligation, if the expenditure as needed has a continuousrange, and the likelihood of occurrence of various results in this range is the same, the best estimate is determinedby the median value within the range; if a number of items are involved, the best estimate is determined by thecalculation of various possible outcomes and related probabilities.
At the balance sheet date, the book value of estimated liabilities should be rechecked, if there is conclusiveevidence indicates that this book value cannot truly reflect the current best estimate, and then the book valueshould be adjusted in accordance with the current best estimate.
30. Revenue (income)
Accounting policy for recognition and measurement of revenue(income)Different business models of similar business resulted in different accounting policies for revenue recognition
31. Government subsidy
31.1Category of government subsidy and accounting treatment
Governments subsidy of the Company refer to the monetary and non-monetary assets obtained from governmentfor free (excluding the capital invested by government as an owner). If the government grants are monetary assets,it shall be measured according to the amount received or receivable. If the government grants are non-monetaryassets, it shall be measured at fair value; if the fair value cannot be obtained reliably, it shall be measured at thenominal amount.
Government grants related to daily activities are included in other income in accordance with the economicbusiness. Government grants not related to daily activities are included in the non-operating income andexpenditure.
Government grants that the government documents clearly stipulate to be used for the purchase and establishmentor forming long-term assets in other way are recognized as government grants related to assets. For thegovernment grants that the government documents do not clearly specify the subsidy target and can form long-term assets, the part corresponding to the asset value is recognized as the government grants related to the assets,and the rest is recognized as the government grants related to the income. For the government grants which aredifficult to be distinguished, recognize the whole as the government grants related to the income. Governmentgrants related to assets are recognized as deferred income. The amount recognized as deferred income is includedin the current profit and loss in a reasonable and systematic manner within the useful life of the relevant asset.
Government grants other than government grants related to assets are recognized as government grants related toincome. If the government grants related to the income are used to compensate the related expenses or losses ofthe enterprise in the future period, recognize them as deferred income and include them in the current profit andloss during the period of recognizing the related expenses. The government grants used to compensate the relevantexpenses or losses incurred by the enterprise are directly included in the current profit and loss.
The Company obtained the policy preferential loan interest subsidy, and the finance allocated the interest subsidyfunds to the loan bank, and the loan bank provides loans to the Company at a preferential interest rate, take theactual amount of the loan received as the entry value of the loan, and calculate the relevant borrowing costsaccording to the loan principal the policy preferential interest rate. If the finance directly appropriates the interestsubsidy funds to the Company, the Company will offset the relevant borrowing costs with the correspondinginterest subsidy.
31.2 Time points to recognize the government grants
Government grants are recognized when they meet the conditions attached to government grants and can bereceived. Government grants measured in accordance with the amount receivable are recognized when there isconclusive evidence at the end of the period that it meets the relevant conditions stipulated in the financial support
policy and is expected to receive financial support funds. Other government grants other than government grantsmeasured in accordance with the receivable amount are recognized when the grant is actually received.
32. Deferred income tax asset / deferred income tax liability
32.1 Where there is difference between the carrying amount of the assets or liabilities and its tax base, (as for anitem that has not been recognized as an asset or liability, if its tax base can be determined in light of the tax law,the tax base shall recognized as the difference) the deferred income tax and deferred income tax liabilities shall bedetermined according to the applicable tax rate in period of assets expected to recover or liability expected to payoff.
32.2 The deferred income tax assets shall be recognized to the extent of the amount of the taxable income which itis most likely to obtain and which can be deducted from the deductible temporary difference. On balance sheetdate, if there have concrete evidence of obtaining, in future period, enough taxable amounts to deduct thedeductible temporary difference, the un-confirmed deferred income tax assets in previous accounting period shallbe recognized. If there has no enough taxable amounts, obtained in future period, to deducted the deferred incometax assets, book value of the deferred income tax assets shall be kept in decreased.
32.3The taxable temporary differences related to the investments of subsidiary companies and associatedenterprises shall recognized as deferred income tax liability, unless the Company can control the time of thereverse of temporary differences and the temporary differences are unlikely to be reversed in the expected future.As for the deductible temporary difference related to the investment of the subsidiary companies and associatedenterprises, deferred income tax assets shall be recognized while the temporary differences are likely to bereversed in the expected future and it is likely to acquire any amount of taxable income tax that may be used formaking up the deductible temporary differences.
33. Leasing
(1) Accounting treatment for operating lease
Operating lease payments are recognized on a straight-line basis over the term of the relevant lease, and are eitherincluded in the cost of related asset or charged to profit or loss for the period.
(2) Accounting treatment for finance lease
Accounting treatment for finance lease: At the commencement of the lease term, the Group records the leased
asset at an amount equal to the lower of the fair value of the leased asset and the present value of the minimumlease payments. The difference between the recorded amounts is accounted for as unrecognized finance charge,using the effective interest method amortization during the lease term. Minimum lease payments deductingunrecognized financing charges are listed as long-term payable.
34. Changes in important accounting policies and estimates
(1) Changes in important accounting policies
□ Applicable √Not applicable
(2)Changes in important accounting estimates
□ Applicable √Not applicable
VI. Taxes
1. Major tax and tax rate
| Taxes | Taxation basis | Tax rate |
| VAT | Domestic sales revenue | 13%, 9%, 6%, 5%, 3% |
| Consumption tax | Turnover tax payable | 7% |
| Corporate income tax | Taxable income | 15%, 25% |
| Educational surtax | Turnover tax payable | 3% |
| Local educational surtax | Turnover tax payable | 2% |
| Property tax | 70% of original value of the property | 1.2% |
Explain the different taxation entity of the enterprise income tax
| Taxation entity | Income tax rate |
| Wuhan Hengfa Technology Co., Ltd. | 15% |
2. Tax preferences
According to the “Measures for the Determination of High-tech Enterprises”, and through the enterpriseapplication, expert review, and public announcement and other procedures, the Company’s wholly-ownedsubsidiary, Wuhan Hengfa Technology Co., Ltd., has been identified as a high-tech enterprise, and obtained the“High-tech Enterprise Certificate” jointly issued by the Science and Technology Department of Hubei Province,Hubei Provincial Finance Department, Hubei Provincial Office, SAT, and Local Taxation Bureau of HubeiProvince on December 1, 2020, the certificate number is GR202042003237, which is valid for 3 years. Theapplicable corporate income tax rate of the subsidiary Wuhan Hengfa Technology Co., Ltd. for 2022 was 15%.
VII. Notes to main items in consolidated financial statement
1. Monetary fund
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Cash on hand | 460.00 | 220,467.15 |
| Bank deposit | 60,773,767.30 | 32,674,664.03 |
| Other monetary fund | 14,890,386.86 | 1,530,911.93 |
| Total | 75,664,614.16 | 34,426,043.11 |
| The total amount of money that has restrictions on use due to mortgage, pledge or freezing | 92,568.28 | 92,568.28 |
Other explanationAmount of the restricted monetary funds at end of the period was 14,982,955.14 yuan, including bank deposits of 92,568.28 yuan,which were restricted due to the freezing of litigation; other monetary fund was 14,890,386.86 yuan, which were restricted due to thenote deposit. Other than that, the Company has no other amounts that are subject to restriction on use and potential recovery risks dueto mortgages, pledges or freezes.
2. Trading financial assets
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Including: | ||
| Including: |
Other note:
3. Derivative financial assets
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
Other note:
4. Note receivable
(1) Category
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Bank acceptance bill | 2,298,990.09 | 62,186,577.09 |
| Commercial acceptance bill | 58,528,302.45 | 43,735,740.51 |
| Total | 60,827,292.54 | 105,922,317.60 |
Unit: RMB/CNY
| Category | Ending balance | Opening balance | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Proportion | Amount | Accrual ratio | Amount | Proportion | Amount | Accrual ratio | |||
| Including: | 62,827,292.54 | 100.00% | 0.00 | 0.00% | 62,827,292.54 | 105,922,317.6 | 100.00% | 0.00 | 0.00% | 105,922,317.6 |
| 0 | 0 | |||||||||
| Note receivable with bad debt provision accrual by combination | ||||||||||
| Including: | 2,298,990.09 | 3.66% | 0.00 | 0.00% | 2,298,990.09 | 62,186,577.09 | 58.71% | 0.00 | 0.00% | 62,186,577.09 |
| Bank acceptance bill | 60,528,302.45 | 96.34% | 0.00 | 0.00% | 60,528,302.45 | 43,735,740.51 | 41.29% | 0.00 | 0.00% | 43,735,740.51 |
| Commercial acceptance bill | 62,827,292.54 | 100.00% | 0.00 | 0.00% | 62,827,292.54 | 105,922,317.60 | 100.00% | 0.00 | 0.00% | 105,922,317.60 |
| Total | 62,827,292.54 | 100.00% | 0.00 | 0.00% | 62,827,292.54 | 105,922,317.60 | 100.00% | 0.00 | 0.00% | 105,922,317.60 |
If the provision for bad debts of note receivable is made in accordance with the general model of expected credit losses, pleaserefer to the disclosure of other receivables to disclose related information about bad-debt provisions:
□ Applicable √Not applicable
(2) Bad debt provision accrual, collected or reversal in the period
Bad debt provision accrual in the period:
Unit: RMB/CNY
| Category | Opening balance | Amount changed in the period | Ending balance | |||
| Accrual | Collected or reversal | Written-off | Other | |||
Including major amount bad debt provision that collected or reversal in the period:
□ Applicable √Not applicable
(3) Notes receivable that the company has pledged at the end of the period
Unit: RMB/CNY
| Item | Amount pledge at period-end |
| Commercial acceptance bill | 7,715,431.89 |
| Total | 7,715,431.89 |
(4) Notes endorsement or discount and undue on balance sheet date
Unit: RMB/CNY
| Item | Amount derecognition at period-end | Amount not derecognition at period-end |
| Commercial acceptance bill | 37,185,847.90 | |
| Total | 37,185,847.90 |
5. Account receivable
(1) Category
Unit: RMB/CNY
| Category | Ending balance | Opening balance | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amoun | Proport | Amoun | Accrua | Amoun | Proport | Amoun | Accrual | |||
t
| t | ion | t | l ratio | t | ion | t | ratio | |||
| Account receivable with bad debt provision accrual on a single basis | 13,146,290.18 | 9.94% | 13,146,290.18 | 100.00% | 13,146,290.18 | 9.27% | 13,146,290.18 | 100.00% | ||
| Including: | ||||||||||
| Account receivable with bad debt provision accrual by combination | 133,911,789.32 | 91.06% | 39,021.77 | 0.03% | 133,872,767.55 | 128,714,349.74 | 90.73% | 39,021.77 | 0.03% | 128,675,327.97 |
| Including: | ||||||||||
| Combination 1: Take account ages of receivables as a combination of credit risk characteristics | 133,911,789.32 | 91.06% | 39,021.77 | 0.03% | 133,872,767.55 | 128,714,349.74 | 90.73% | 39,021.77 | 0.03% | 128,675,327.97 |
| Total | 147,058,079.50 | 100.00% | 13,185,311.95 | 8.97% | 133,872,767.55 | 141,860,639.92 | 100.00% | 13,185,311.95 | 9.29% | 128,675,327.97 |
Accrual of bad debt provision on single basis: 13,146,290.18
Unit: RMB/CNY
| Name | Ending balance | |||
| Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
| Shenzhen Portman Bowling Club Co., Ltd. | 2,555,374.75 | 2,555,374.75 | 100.00% | Uncollectible |
| Hong Kong Haowei Industrial Co., Ltd. | 1,870,887.18 | 1,870,887.18 | 100.00% | Uncollectible |
| TCL ACE ELECTRIC APPLIANCE (HUIZHOU) CO., LTD. | 1,325,431.75 | 1,325,431.75 | 100.00% | Uncollectible |
| Qingdao Haier Parts Procurement Co., Ltd. | 1,225,326.15 | 1,225,326.15 | 100.00% | Uncollectible |
| SKYWORTH Multimedia (Shenzhen) Co., Ltd. | 579,343.89 | 579,343.89 | 100.00% | Uncollectible |
| Shenzhen Huixin Video Technology Co., Ltd. | 381,168.96 | 381,168.96 | 100.00% | Uncollectible |
| Shenzhen Wandelai Digital Technology Co., Ltd. | 351,813.70 | 351,813.70 | 100.00% | Uncollectible |
| Shenzhen Dalong Electronic Co., Ltd. | 344,700.00 | 344,700.00 | 100.00% | Uncollectible |
| Shenzhen Keya Electronic Co., Ltd. | 332,337.76 | 332,337.76 | 100.00% | Uncollectible |
| Shenzhen Qunping Electronic Co., Ltd. | 304,542.95 | 304,542.95 | 100.00% | Uncollectible |
| China Galaxy Electronics (Hong Kong) Co., Ltd. | 288,261.17 | 288,261.17 | 100.00% | Uncollectible |
| Dongguan Weite Electronic Co., Ltd. | 274,399.80 | 274,399.80 | 100.00% | Uncollectible |
| Chuangjing | 247,811.87 | 247,811.87 | 100.00% | Uncollectible |
| Hong Kong New Century Electronics Co., Ltd. | 207,409.40 | 207,409.40 | 100.00% | Uncollectible |
| Shenyang Beitai Electronic Co., Ltd. | 203,304.02 | 203,304.02 | 100.00% | Uncollectible |
| Beijing Xinfang Weiye Technology Co., Ltd. | 193,000.00 | 193,000.00 | 100.00% | Uncollectible |
| TCL Electronics | 145,087.14 | 145,087.14 | 100.00% | Uncollectible |
(Hong Kong) Co., Ltd.
| (Hong Kong) Co., Ltd. | ||||
| Huizhou TCL Xinte Electronics Co., Ltd. | 142,707.14 | 142,707.14 | 100.00% | Uncollectible |
| Sky Worth – RGB Electronic Co., Ltd. | 133,485.83 | 133,485.83 | 100.00% | Uncollectible |
| Other | 2,039,896.72 | 2,039,896.72 | 100.00% | Uncollectible |
| Total | 13,146,290.18 | 13,146,290.18 |
Accrual of bad debt provision on portfolio: 39,021.77
Unit: RMB/CNY
| Name | Ending balance | ||
| Book balance | Bad debt provision | Accrual ratio | |
| Within one year | 133,167,210.49 | 0.00% | |
| 1-2 years | 718,833.35 | 35,941.67 | 5.00% |
| 2-3 years | 23,217.71 | 2,321.77 | 10.00% |
| Over 3 years | 2,527.77 | 758.33 | 30.00% |
| Total | 133,911,789.32 | 39,021.77 | |
Explanation on portfolio basis:
Take account ages of receivables as a combination of credit risk characteristicsIf the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses, pleaserefer to the disclosure of other receivables to disclose related information about bad-debt provisions:
□ Applicable √Not applicable
By account age
Unit: RMB/CNY
| Account ages | Book balance |
| Within one year (one year included) | 146,313,500.67 |
| 1-2 years | 718,833.35 |
| 2-3 years | 23,217.71 |
| Over 3 years | 2,527.77 |
| 3-4 years | 2,527.77 |
| Total | 147,058,079.50 |
(2) Bad debt provision accrual, collected or reversal in the period
Bad debt provision accrual in the period:
Unit: RMB/CNY
| Category | Opening balance | Amount changed in the period | Ending balance | |||
| Accrual | Collected or reversal | Written-off | Other | |||
| Accounts receivable with provision for bad debts based on individual assessments | 13,146,290.18 | 13,146,290.18 | ||||
| Accounts receivable with provision for bad debts by combination | 39,021.77 | 39,021.77 | ||||
| Total | 13,185,311.95 | 13,185,311.95 | ||||
Including major amount bad debt provision that collected or reversal in the period:
Unit: RMB/CNY
| Company | Amount collected or reversal | Way of collection |
(3) Actual written-off accounts receivable in the current period
Unit: RMB/CNY
| Item | Written-off amount |
Including the important accounts receivable written-off situation:
Unit: RMB/CNY
| Name | Nature of accounts receivable | Written-off amount | Written-off reason | Written-off procedure performed | Whether the payment is generated by related party transactions |
Written-off description of accounts receivable:
(4) Top 5 account receivables collected by arrears party at ending balance
Unit: RMB/CNY
| Company | Ending balance of account receivable | Proportion in total account receivables at period-end | Ending balance of bad debt provision |
| Qingdao Haidayuan Purchasing Service Co., Ltd. | 31,949,615.40 | 23.87% | |
| Hefei Hangjia Display Technology Co., Ltd. | 29,729,570.68 | 22.21% | |
| ViewSonic Technology (China) Co., Ltd. | 13,159,959.00 | 9.83% | |
| Xiamen Edmond Electronic Technology Co., Ltd. | 8,261,850.62 | 6.17% | |
| TCL Air Conditioner (Wuhan) Co., Ltd. | 7,306,764.13 | 5.46% | |
| Total | 90,407,759.83 | 67.54% |
6. Receivable financing
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Notes receivable | 500,000.00 | |
| Total | 500,000.00 |
Receivable financing Changes in the period and changes in fair value
□ Applicable √Not applicable
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses, pleaserefer to the disclosure of other receivables to disclose related information about bad-debt provisions:
□ Applicable √Not applicable
Other explanation:
7. Accounts paid in advance
(1) By account age
Unit: RMB/CNY
Account ages
| Account ages | Ending balance | Opening balance | ||
| Amount | Proportion | Amount | Proportion | |
| Within one year | 19,963,828.94 | 100.00% | 7,996,570.95 | 100.00% |
| Total | 19,963,828.94 | 7,996,570.95 | ||
Explanation on reasons of failure to settle on important account paid in advance with age over one year:
Not applicable
(2) Top 5 account paid in advance at ending balance by prepayment object
| Name of supplier | Amount | Ratio |
| Hong Kong Yutian International Investment Co., Ltd. | 14,502,424.33 | 72.64% |
| AU Optronics Co., Ltd. | 1,549,115.87 | 7.76% |
| Mingyan Technology (Shenzhen) Co., Ltd. | 876,919.77 | 4.39% |
| Nanjing CLP Panda LCD Technology Co., Ltd. | 616,945.60 | 3.09% |
| Zhengzhou Haier Air Conditioner Co., Ltd. | 441,126.00 | 2.21% |
| Total | 17,986,531.57 | 90.09% |
Other explanation:
8. Other account receivable
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Other account receivable | 4,628,853.27 | 4,520,412.70 |
| Total | 4,628,853.27 | 4,520,412.70 |
(1) Interest receivable
1) Category of interest receivable
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
2) Significant overdue interest
Unit: RMB/CNY
| Borrower | Ending balance | Overdue time | Reason for overdue | Whether there is impairment and its judgment basis |
Other note:
3) Accrual of bad debt provision
√ Applicable □ Not applicable
Unit: RMB/CNY
| Bad debt provision | Phase I | Phase II | Phase III | Total |
| Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) |
Balance of 1 Jan. 2022in the period
| Balance of 1 Jan. 2022 in the period |
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √Not applicable
(2) Dividend receivable
1) Category of dividend receivable
Unit: RMB/CNY
| Item (or invested unit) | Ending balance | Opening balance |
2) Important dividend receivable with account age over one year
Unit: RMB/CNY
| Item (or invested unit) | Ending balance | Account age | Reasons for non-recovery | Whether there is impairment and its judgment basis |
3) Accrual of bad debt provision
√ Applicable □ Not applicable
Unit: RMB/CNY
| Bad debt provision | Phase I | Phase II | Phase III | Total |
| Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
| Balance of 1 Jan. 2022 in the period |
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √Not applicable
Other note:
(3) Other account receivable
1) Other account receivable by nature
Unit: RMB/CNY
| Nature | Ending book balance | Opening book balance |
| Margin & deposit | 279,076.70 | 1,829,768.00 |
| Borrow money | 3,031,923.33 | 1,481,984.12 |
| Intercourse funds | 8,723,023.54 | 7,844,053.53 |
| Rental receivable | 7,013,623.97 | 6,999,971.21 |
| Other | 141,721.91 | 925,152.02 |
| Less: Bad debt provision | -14,560,516.18 | -14,560,516.18 |
| Total | 4,628,853.27 | 4,520,412.70 |
2) Accrual of bad debt provision
Unit: RMB/CNY
| Bad debt provision | Phase I | Phase II | Phase III | Total |
| Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
| Balance on1 Jan. 2022 | 14,560,516.18 | 14,560,516.18 | ||
| Balance of 1 Jan. 2022 in the period | ||||
| Balance on Dec. 31, 2022 | 14,560,516.18 | 14,560,516.18 |
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √Not applicable
By account age
Unit: RMB/CNY
| Account ages | Book balance |
| Within one year (one year included) | 1,697,997.65 |
| 1-2 years | 1,725,961.49 |
| 2-3 years | 265,630.40 |
| Over 3 years | 15,790,653.83 |
| 3-4 years | 15,790,653.83 |
| Total | 19,480,243.37 |
3) Bad debt provision accrual, collected or reversal in the period
Bad debt provision accrual in the period:
Unit: RMB/CNY
| Category | Opening balance | Amount changed in the period | Ending balance | |||
| Accrual | Collected or reversal | Written-off | Other | |||
Including the important amount collected or switches back in the period:
Unit: RMB/CNY
| Company | Amount collected or switches back | Way of collection |
4) The actual written-off other receivables in the current period
Unit: RMB/CNY
| Item | Written-off amount |
Including the important written-off situation of other receivables:
Unit: RMB/CNY
| Name | Nature of other receivables | Written-off amount | Written-off reason | Written-off procedure performed | Whether the payment is generated by related party transactions |
Description of other receivables written-off:
5) Top 5 other receivables collected by arrears party at ending balance
Unit: RMB/CNY
Company
| Company | Nature | Ending balance | Account ages | Proportion in total other receivables at period-end | Ending balance of bad debt provision |
| Portman | Rental receivable | 4,021,734.22 | Over 3 years | 20.96% | 4,021,734.22 |
| Jackfang Investment 1F 1076 | Rental receivable | 1,380,608.00 | Over 3 years | 7.19% | 1,380,608.00 |
| TPV Electronic Technology (Fujian) Co., Ltd. | Margin | 800,000.00 | Over 3 years | 4.17% | |
| Jiang Hong | Borrow money | 600,000.00 | Within 1 year | 3.13% | |
| Compensation for traffic accidents | Intercourse funds | 555,785.81 | Over 3 years | 2.90% | 555,785.81 |
| Total | 7,358,128.03 | 38.34% | 5,958,128.03 |
6) Receivables involving government subsidies
Unit: RMB/CNY
| Name | Government subsidy item | Ending balance | Ending account age | Estimated time, amount and basis of receipt |
7) Other receivable for termination of confirmation due to the transfer of financial assets
8) The amount of assets and liabilities that are transferred other receivable and continued to be involvedOther note:
9. Inventories
Whether companies need to comply with the disclosure requirements of the real estate industryNo
(1) Category
Unit: RMB/CNY
| Item | Ending balance | Opening balance | ||||
| Book balance | Inventories fall provision or contract performance costs impairment provision | Book value | Book balance | Inventories fall provision or contract performance costs impairment provision | Book value | |
| Raw materials | 38,396,272.13 | 2,085,289.46 | 36,310,982.67 | 51,030,203.86 | 2,085,289.46 | 48,944,914.40 |
| Inventory goods | 23,660,783.35 | 2,210,144.58 | 21,450,638.77 | 32,258,568.10 | 2,210,144.58 | 30,048,423.52 |
| Low priced and easily worn articles | 97,988.60 | 21,905.99 | 76,082.61 | 141,953.08 | 21,905.99 | 120,047.09 |
| Homemade semi-finished products | 8,588,301.98 | 325,374.92 | 8,262,927.06 | 11,797,660.18 | 325,374.92 | 11,472,285.26 |
| Total | 70,743,346.06 | 4,642,714.95 | 66,100,631.11 | 95,228,385.22 | 4,642,714.95 | 90,585,670.27 |
(2) Inventories fall provision or contract performance costs impairment provision
Unit: RMB/CNY
| Item | Opening balance | Current increased | Current decreased | Ending balance | ||
| Accrual | Other | Reversal or write-off | Other | |||
| Raw materials | 2,085,289.46 | 2,085,289.46 | ||||
| Inventory goods | 2,210,144.58 | 2,210,144.58 | ||||
| Homemade semi-finished products | 325,374.92 | 325,374.92 | ||||
| Low priced and easily worn articles | 21,905.99 | 21,905.99 | ||||
| Total | 4,642,714.95 | 4,642,714.95 | ||||
(3) Explanation on capitalization of borrowing costs at ending balance of inventory
(4) Assets completed without settlement from construction contract at period-end
10. Contract assets
Unit: RMB/CNY
| Item | Ending balance | Opening balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
The amount and reasons for major changes in the book value of contract assets during the current period:
Unit: RMB/CNY
| Item | Change amount | Reason for change |
If the provision for bad debts of contract assets is made in accordance with the general model of expected creditlosses, please refer to the disclosure of other receivables to disclose related information about bad-debtprovisions:
□ Applicable √Not applicable
Accrual provision for impairment of contract assets in the current period
Unit: RMB/CNY
| Item | Current accrual | Current reversal | Current resell/Written-off | Reason |
Other note:
11. Assets held for sale
Unit: RMB/CNY
| Item | Ending book balance | Provision for impairment | Ending book value | Fair value | Estimated disposal cost | Estimated disposal time |
Other note:
12. Non-current assets due within one year
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
Important debt investment/other debt investment
Unit: RMB/CNY
| Creditor’s Rights Item | Ending balance | Opening balance | ||||||
| Face value | Coupon rate | Real interest rate | Expiry date | Face value | Coupon rate | Real interest rate | Expiry date | |
Other note:
13. Other current assets
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Value-added tax to be deducted | 3,732,033.86 | |
| Gain/loss on properties held for disposal | 105,743.48 | |
| Total | 105,743.48 | 3,732,033.86 |
Other explanation:
14. Debt investment
Unit: RMB/CNY
| Item | Ending balance | Opening balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
Important debt investment
Unit: RMB/CNY
| Creditor’s Rights Item | Ending balance | Opening balance | ||||||
| Face value | Coupon rate | Real interest rate | Expiry date | Face value | Coupon rate | Real interest rate | Expiry date | |
Provision for impairment accrual
Unit: RMB/CNY
| Bad debt provision | Phase I | Phase II | Phase III | Total |
| Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
| Balance of 1 Jan. 2022 in the period | —— | —— | —— | —— |
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √Not applicable
Other note:
15. Other debt investment
Unit: RMB/CNY
| Item | Opening balance | Accrued interest | Fair value changes in this period | Ending balance | Cost | Cumulative fair value changes | Accumulated loss reserves recognized in other comprehensive income | Note |
Important other debt investment
Unit: RMB/CNY
| Other Creditor’s Rights Item | Ending balance | Opening balance | ||||||
| Face value | Coupon rate | Real interest rate | Expiry date | Face value | Coupon rate | Real interest rate | Expiry date | |
Provision for impairment accrual
Unit: RMB/CNY
| Bad debt provision | Phase I | Phase II | Phase III | Total |
| Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
| Balance of 1 Jan. 2022 in the period | —— | —— | —— | —— |
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √Not applicable
Other note:
16. Long-term receivables
(1) Long-term receivables
Unit: RMB/CNY
| Item | Ending balance | Opening balance | Discount rate range | ||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | ||
Bad debt provision impairment
Unit: RMB/CNY
| Bad debt provision | Phase I | Phase II | Phase III | Total |
| Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
| Balance of 1 Jan. 2022 in the period | —— | —— | —— | —— |
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √Not applicable
(2) Long-term receivables derecognized due to the transfer of financial assets
(3) The amount of assets and liabilities formed by the transfer of long-term receivables and continuedinvolvementOther note
17. Long-term equity investment
Unit: RMB/CNY
| Enterprise | Opening balance | Current changes (+, -) | Ending balance (book | Ending balance of | |||||||
| Additional | Capital reducti | Investment | Other compre | Other equity | Cash dividen | Impairment | Other | ||||
(bookvalue)
| (book value) | investment | on | gain/loss recognized under equity | hensive income adjustment | change | d or profit announced to issued | accrual | value) | depreciation reserves | ||
| I. Joint venture | |||||||||||
| II. Associated enterprise | |||||||||||
Other note
18. Other equity instrument investment
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
Itemized disclosure of investment in non-trading equity instruments for the current period
Unit: RMB/CNY
| Item | Recognized dividend income | Cumulative gain | Accumulated loss | The amount of comprehensive income transferred to retained earnings | Reasons designated as fair value measurement and its changes included in other comprehensive income | Reason for transferring comprehensive income to retained income |
Other note:
19. Other non-current financial assets
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
Other note:
20. Investment real estate
(1) Investment real estate measured at cost
√ Applicable □ Not applicable
Unit: RMB/CNY
| Item | House and building | Land use right | Construction in process | Total |
| I. Original book value | ||||
| 1. Opening balance | 134,798,893.94 | 134,798,893.94 | ||
| 2. Current increased | ||||
| (1) Outsourcing | ||||
| (2) Inventory\fixed assets\construction in process transfer-in | ||||
| (3) Increased by combination | ||||
| 3. Current decreased | ||||
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
4. Ending balance
| 4. Ending balance | 134,798,893.94 | 134,798,893.94 | ||
| II. Accumulated depreciation and accumulated amortization | ||||
| 1. Opening balance | 88,607,116.14 | 88,607,116.14 | ||
| 2. Current increased | 864,165.14 | 864,165.14 | ||
| (1) Accrual or amortization | 864,165.14 | 864,165.14 | ||
| 3. Current decreased | ||||
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
| 4. Ending balance | 89,471,281.28 | 89,471,281.28 | ||
| III. Impairment provision | ||||
| 1. Opening balance | ||||
| 2. Current increased | ||||
| (1) Accrual | ||||
| 3. Current decreased | ||||
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
| 4. Ending balance | ||||
| IV. Book value | ||||
| 1. Ending book value | 45,327,612.66 | 45,327,612.66 | ||
| 2. Opening book value | 46,191,777.80 | 46,191,777.80 |
(2) Investment real estate measured by fair value
□ Applicable √Not applicable
(3) Investment real estate without property certification held
Unit: RMB/CNY
| Item | Book value | Reason without property certification held |
Other note
21. Fixed assets
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Fixed assets | 83,306,441.83 | 95,031,789.81 |
| Disposal of fixed assets | 99,973,684.42 | 92,857,471.69 |
| Total | 183,280,126.25 | 187,889,261.50 |
(1) Fixed asset
Unit: RMB/CNY
| Item | House | Machinery | Means of | Office | Instrument | Tool | Mold | Total |
building
| building | equipment | transportation | equipment | equipment | equipment | equipment | ||
| I. Original book value | ||||||||
| 1. Opening balance | 72,063,410.41 | 95,810,002.45 | 3,473,225.86 | 8,470,322.17 | 3,424,013.01 | 9,766,024.86 | 27,439,464.52 | 220,446,463.28 |
| 2. Current increased | 1,503,759.73 | 1,503,759.73 | ||||||
| (1) Purchasing | 1,503,759.73 | 1,503,759.73 | ||||||
| (2) Construction in process transfer-in | ||||||||
| (3) Increased by combination | ||||||||
| 3. Current decreased | 17,472,879.92 | 7,822.14 | 42,777.24 | 636,484.30 | 18,159,963.60 | |||
| (1) Disposal or scrapping | 17,472,879.92 | 7,822.14 | 42,777.24 | 636,484.30 | 18,159,963.60 | |||
| 4. Ending balance | 72,063,410.41 | 78,337,122.53 | 3,473,225.86 | 8,462,500.03 | 3,381,235.77 | 9,129,540.56 | 28,943,224.25 | 203,790,259.41 |
| II. Accumulative depreciation | ||||||||
| 1. Opening balance | 22,443,385.19 | 66,166,210.12 | 1,467,827.24 | 6,590,289.96 | 2,881,961.79 | 5,946,957.87 | 19,918,041.30 | 125,414,673.47 |
| 2. Current increased | 1,372,440.94 | 3,905,303.66 | 40,471.06 | 159,101.19 | 165,847.79 | 569,841.46 | 1,477,365.31 | 7,690,371.41 |
| (1) Accrual | 1,372,440.94 | 3,905,303.66 | 40,471.06 | 159,101.19 | 165,847.79 | 569,841.46 | 1,477,365.31 | 7,690,371.41 |
| 3. Current decreased | 12,132,347.82 | 38,190.65 | 127,945.12 | 307,465.30 | 15,278.41 | 12,621,227.30 | ||
| (1) Disposal or scrapping | 12,132,347.82 | 38,190.65 | 127,945.12 | 307,465.30 | 15,278.41 | 12,621,227.30 | ||
| 4. Ending balance | 23,815,826.13 | 57,939,165.96 | 1,508,298.30 | 6,711,200.50 | 2,919,864.46 | 6,209,334.03 | 21,380,128.20 | 120,483,817.58 |
| III. Depreciation reserves | ||||||||
| 1. Opening balance | ||||||||
| 2. Current increased | ||||||||
| (1) Accrual | ||||||||
| 3. Current decreased | ||||||||
| (1) |
Disposal orscrapping
| Disposal or scrapping | ||||||||
| 4. Ending balance | ||||||||
| IV. Book value | ||||||||
| 1. Ending book value | 48,247,584.28 | 20,397,956.57 | 1,964,927.56 | 1,751,299.53 | 461,371.31 | 2,920,206.53 | 7,563,096.05 | 83,306,441.83 |
| 2. Opening book value | 49,620,025.22 | 29,643,792.33 | 2,005,398.62 | 1,880,032.21 | 542,051.22 | 3,819,066.99 | 7,521,423.22 | 95,031,789.81 |
(2) Temporarily idle fixed assets
Unit: RMB/CNY
| Item | Original book value | Accumulated depreciation | Provision for impairment | Book value | Note |
(3) Fixed assets leasing-out by operational lease
Unit: RMB/CNY
| Item | Ending book value |
(4) Fixed assets without property certification held
Unit: RMB/CNY
| Item | Book value | Reason without property certification held |
Other note
(5) Disposal of fixed assets
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Renovation of Gongming Huafa Electric Town | 92,857,471.69 | 92,857,471.69 |
| Disposal of aged equipment and others | 7,116,212.73 | |
| Total | 99,973,684.42 | 92,857,471.69 |
Other explanation
22. Construction in process
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Construction in process | 740,000.00 | 740,000.00 |
| Total | 740,000.00 | 740,000.00 |
(1) Construction in process
Unit: RMB/CNY
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment | Book value | Book balance | Impairment | Book value | |
provision
| provision | provision | |||||
| Huafa Building Reconstruction Project | 240,000.00 | 240,000.00 | 240,000.00 | 240,000.00 | ||
| Gongming Electronic City Reconstruction Project | 500,000.00 | 500,000.00 | 500,000.00 | 500,000.00 | ||
| Total | 740,000.00 | 740,000.00 | 740,000.00 | 740,000.00 |
(2) Changes of major projects under construction
Unit: RMB/CNY
| Item | Budget | Opening balance | Current increased | Fixed assets transfer-in in the Period | Other decreased in the Period | Ending balance | Proportion of project investment in budget | Progress | Accumulated amount of interest capitalization | including: interest capitalized amount of the year | Interest capitalization rate of the year | Source of funds |
(3) The provision for impairment of construction projects
Unit: RMB/CNY
| Item | Current accrual amount | Accrual reason |
Other note
(4) Engineering materials
Unit: RMB/CNY
| Item | Ending balance | Opening balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
Other note:
23. Right to use assets
Unit: RMB/CNY
| Item | House building | Total |
| I. Original book value | ||
| 1. Opening balance | 313,948.08 | 313,948.08 |
| 2. Current increased | ||
| 3. Current decreased | ||
| 4. Ending balance | 313,948.08 | 313,948.08 |
| II. Accumulative depreciation | ||
| 1. Opening balance | 104,649.36 | 104,649.36 |
| 2. Current increased | 52,324.68 | 52,324.68 |
| (1) Accrual | 52,324.68 | 52,324.68 |
| 3. Current decreased | ||
| (1) Disposal |
| 4. Ending balance | 156,974.04 | 156,974.04 |
| III. Depreciation reserves | ||
| 1. Opening balance | ||
| 2. Current increased | ||
| (1) Accrual | ||
| 3. Current decreased | ||
| (1) Disposal | ||
| 4. Ending balance | ||
| IV. Book value | ||
| 1. Ending book value | 156,974.04 | 156,974.04 |
| 2. Opening book value | 209,298.72 | 209,298.72 |
Other note:
24. Intangible assets
(1) Intangible assets
Unit: RMB/CNY
| Item | Land use right | Patent right | Non-patented technology | Computer software | Total |
| I. Original book value | |||||
| 1. Opening balance | 55,415,814.36 | 3,172,234.92 | 58,588,049.28 | ||
| 2. Current increased | |||||
| (1) Purchasing | |||||
| (2) Internal R&D | |||||
| (3) Increased by combination | |||||
| 3. Current decreased | 498,858.97 | 498,858.97 | |||
| (1) Disposal | 498,858.97 | 498,858.97 | |||
| 4. Ending balance | 55,415,814.36 | 2,673,375.95 | 58,089,190.31 | ||
| II. Accumulated amortization | |||||
| 1. Opening balance | 18,096,524.31 | 1,210,523.98 | 19,307,048.29 | ||
| 2. Current increased | 722,744.45 | 139,090.94 | 861,835.39 | ||
| (1) Accrual | 722,744.45 | 139,090.94 | 861,835.39 | ||
| 3. Current decreased | 499,329.60 | 499,329.60 | |||
| (1) Disposal | 499,329.60 | 499,329.60 | |||
| 4. Ending balance | 18,819,269.00 | 850,285.32 | 19,669,554.08 | ||
| III. Depreciation reserves | |||||
| 1. Opening balance | 109,427.90 | 109,427.90 | |||
| 2. Current increased |
(1) Accrual
| (1) Accrual | |||||
| 3. Current decreased | |||||
| (1) Disposal | |||||
| 4. Ending balance | 109,427.90 | 109,427.90 | |||
| IV. Book value | |||||
| 1. Ending book value | 36,596,545.60 | 1,713,662.73 | 38,310,208.33 | ||
| 2. Opening book value | 37,319,290.05 | 1,852,283.04 | 39,171,573.09 |
The proportion of intangible assets form by internal R&D in total book value of intangible assets at period-end
(2) The situation of land use rights that have not completed the ownership certificate
Unit: RMB/CNY
| Item | Book value | Reason without property certification held |
Other note:
25. Development expenditure
Unit: RMB/CNY
| Item | Opening balance | Increase in the current period | Decrease in the current period | Ending balance | ||||
| Internal development expenditure | Other | Recognized as intangible assets | Transferred into current profit and loss | |||||
| Total | ||||||||
Other note
26. Goodwill
(1) Goodwill original book value
Unit: RMB/CNY
| Invested name or matters forming goodwill | Opening balance | Increase in the current period | Decrease in the current period | Ending balance | ||
| Formed by business combination | Dispose | |||||
| Total | ||||||
(2) Goodwill provision for impairment
Unit: RMB/CNY
| Invested name or matters forming goodwill | Opening balance | Increase in the current period | Decrease in the current period | Ending balance | ||
| Accrual | Dispose | |||||
| Total | ||||||
Information about the asset group or combination of asset groups where the goodwill is locatedExplain the process of goodwill impairment testing, key parameters (such as the growth rate of the forecast period when the presentvalue of future cash flows are expected, the growth rate of the stable period, the profit rate, the discount rate, the forecast period, etc.)and the confirmation method of the impairment loss of goodwill:
The impact of goodwill impairment testingOther note
27. Long-term deferred expenses
Unit: RMB/CNY
| Item | Opening balance | Current increased | Amortized in Period | Other decreased | Ending balance |
| Lawyer fee | 969,444.45 | 969,444.45 | |||
| Amortization of cloud service fees | 512,893.11 | 109,905.66 | 402,987.45 | ||
| Huafa Building Central Air Conditioning Overhaul Project | 150,787.00 | 150,787.00 | |||
| China Telecom Corporation Limited Shenzhen Branch | 4,800.00 | 4,800.00 | |||
| Huafa Building Elevator Overhaul Project | 53,333.33 | 53,333.33 | 0.00 | ||
| Total | 1,691,257.89 | 163,238.99 | 1,528,018.90 |
Other explanation
28. Deferred income tax assets/Deferred income tax liabilities
(1) Deferred income tax assets without offset
Unit: RMB/CNY
| Item | Ending balance | Opening balance | ||
| Deductible temporary differences | Deferred income tax assets | Deductible temporary differences | Deferred income tax assets | |
| Provision for assets impairment | 29,705,573.64 | 6,946,556.32 | 29,705,573.64 | 6,946,556.32 |
| Accrual liability | 801,159.18 | 200,289.79 | 801,159.18 | 200,289.79 |
| Deferred income | 3,326,520.00 | 498,978.00 | 3,565,560.00 | 534,834.00 |
| Total | 33,833,252.82 | 7,645,824.11 | 34,072,292.82 | 7,681,680.11 |
(2) Deferred income tax liabilities that are not offset
Unit: RMB/CNY
| Item | Ending balance | Opening balance | ||
| Taxable temporary differences | Deferred income tax liabilities | Taxable temporary differences | Deferred income tax liabilities | |
(3) Amount of deferred income tax asset and deferred income tax liability after trade-off
Unit: RMB/CNY
Item
| Item | Trade-off between the deferred income tax assets and liabilities | Ending balance of deferred income tax assets or liabilities after off-set | Trade-off between the deferred income tax assets and liabilities at period-begin | Opening balance of deferred income tax assets or liabilities after off-set |
| Deferred income tax assets | 7,645,824.11 | 7,681,680.11 |
(4) Deferred income tax asset without recognized
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Deductible temporary differences | 3,163,837.81 | 3,163,837.81 |
| Deductible loss | 5,081,160.28 | 5,081,160.28 |
| Total | 8,244,998.09 | 8,244,998.09 |
(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year
Unit: RMB/CNY
| Year | Ending amount | Opening amount | Note |
| 2027 and future years (applicable to high-tech enterprises and technology-based SMEs) | 5,079,572.71 | 5,079,572.71 | |
| 2026 | 1,587.57 | 1,587.57 | |
| 2025 | |||
| 2024 | |||
| 2023 | |||
| 2022 | |||
| Total | 5,081,160.28 | 5,081,160.28 |
Other explanation:
29. Other non-current assets
Unit: RMB/CNY
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
Other explanation:
30. Short-term borrowings
(1) Category
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Mortgage loan | 7,290,000.00 | |
| Secured portfolio loan | 11,433,573.00 | 19,190,857.00 |
| Total | 11,433,573.00 | 26,480,857.00 |
Explanation on category of short-term loans:
(2) Short-term loans that have been overdue and have not been repaid
The total amount of short-term loans that were overdue and not repaid at the end of the period was RMB 0.00,and the important short-term loans that were overdue and not repaid are as follows:
Unit: RMB/CNY
| Borrower | Ending balance | Borrowing rate | Overdue time | Overdue interest rate |
Other note:
31. Trading financial liabilities
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Including: | ||
| Including: |
Other note:
32. Derivative financial liabilities
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
Other note:
33. Notes payable
Unit: RMB/CNY
| Category | Ending balance | Opening balance |
| Bank acceptance draft | 22,605,511.76 | 21,554,981.30 |
| Total | 22,605,511.76 | 21,554,981.30 |
Totally 0 Yuan due note payable are paid at period-end
34. Account payable
(1) Account payable
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Within one year | 84,279,098.42 | 76,362,296.93 |
| Over one year | 10,873,291.71 | 12,167,182.03 |
| Total | 95,152,390.13 | 88,529,478.96 |
(2) Major account payable over one year
Unit: RMB/CNY
| Item | Ending balance | Reasons for non-payment or carry over |
| Shenzhen Yuehai Global Logistics Co., Ltd. | 2,858,885.97 | Without settlement |
| LG | 1,906,267.50 | Without settlement |
| Tokin Electronics (Nanjing) Plasma Co., Ltd. | 617,963.45 | Without settlement |
| Total | 5,383,116.92 | -- |
Other explanation:
35. Accounts received in advance
(1) Accounts received in advance
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
(2) Important accounts received in advance with account age over one year
Unit: RMB/CNY
| Item | Ending balance | Reasons for outstanding or carry-over |
Other note:
36. Contract liabilities
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Lease received in advance | 4,250.00 | 473,034.32 |
| Sales received in advance | 269,268.20 | 263,321.38 |
| Total | 273,518.20 | 736,355.70 |
Amount and reasons for significant changes in book value during the reporting period
Unit: RMB/CNY
| Item | Change Amount | Reason for change |
37. Wage payable
(1) Wage payable
Unit: RMB/CNY
| Item | Opening balance | Increase during the period | Decrease during the period | Ending balance |
| I. Short-term benefits | 3,844,381.07 | 30,004,922.98 | 29,423,338.40 | 4,427,543.85 |
| II. Post-employment benefits-defined contribution plans | 2,923,103.38 | 2,923,103.38 | ||
| III. Dismiss welfare | 17,830.00 | 17,830.00 | ||
| Total | 3,844,381.07 | 32,945,856.36 | 32,364,271.78 | 4,427,543.85 |
(2) Short-term benefits
Unit: RMB/CNY
| Item | Opening balance | Increase during the period | Decrease during the period | Ending balance |
| 1. Wages , bonuses, allowances and subsidies | 2,813,561.11 | 26,048,826.55 | 25,425,203.47 | 3,437,184.19 |
| 2. Employee benefits | 51,391.40 | 2,419,193.30 | 2,460,442.70 | 10,142.00 |
| 3. Social insurance premium | 22,287.98 | 1,304,063.69 | 1,304,852.79 | 23,077.08 |
| Including: | 22,287.98 | 1,171,767.28 | 1,170,978.18 | 23,077.08 |
Medical insurance
| Medical insurance | ||||
| Work injury insurance | 50,802.86 | 50,802.86 | ||
| Maternity insurance | 82,282.65 | 82,282.65 | ||
| 4. Housing accumulation fund | 24,310.00 | 171,415.44 | 171,415.44 | 24,310.00 |
| 5. Labor union expenditure and personnel education expense | 932,830.58 | 61,424.00 | 61,424.00 | 932,830.58 |
| Total | 3,844,381.07 | 30,004,922.98 | 29,423,338.40 | 4,427,543.85 |
(3) Defined contribution plans
Unit: RMB/CNY
| Item | Opening balance | Increase during the period | Decrease during the period | Ending balance |
| 1. Basic endowment insurance | 2,824,232.22 | 2,824,232.22 | ||
| 2. Unemployment insurance | 98,871.16 | 98,871.16 | ||
| Total | 2,923,103.38 | 2,923,103.38 |
Other explanation:
38. Taxes payable
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| VAT | 5,512,451.48 | 4,271,423.08 |
| Corporate income tax | 6,153,723.35 | 7,387,839.94 |
| Individual income tax | 9,766.38 | 22,943.65 |
| Urban maintenance and construction tax | 406,704.84 | 658,864.50 |
| Property tax | 588,618.67 | 544,525.98 |
| Land use tax | 251,640.57 | 107,577.53 |
| Educational surtax | 175,459.14 | 283,138.75 |
| Local educational surtax | 86,688.01 | 159,099.46 |
| Dike fee | 1,665.00 | 1,665.00 |
| Stamp tax | 27,875.10 | 34,839.80 |
| Disposal fund of waste electrical products | 1,351,500.00 | 1,185,200.00 |
| Total | 14,566,092.54 | 14,657,117.69 |
Other explanation:
39. Other accounts payable
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Interest payable | 93,178.03 | 113,080.26 |
| Other payable | 40,839,009.98 | 30,335,832.88 |
| Total | 40,932,188.01 | 30,448,913.14 |
(1) Interest payable
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Interest of short-term loans payable | 93,178.03 | 113,080.26 |
| Total | 93,178.03 | 113,080.26 |
Significant overdue and unpaid interest:
Unit: RMB/CNY
| Loan unit | Overdue amount | Reason for overdue |
Other explanation:
(2) Dividend payable
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
Other note, including important dividends payable that have not been paid for more than 1 year, should disclosethe reasons for the non-payment:
(3) Other accounts payable
1) Other account payable by nature
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Margin & deposit | 13,943,459.17 | 11,702,750.67 |
| Lease management fee | 3,647,788.39 | 3,647,788.39 |
| Intercourse funds | 13,732,977.24 | 5,411,882.45 |
| After sale and repairmen | 3,043,012.42 | 1,920,745.00 |
| Energy consumption (Water, electricity and steam) | 781,678.27 | 2,554,906.95 |
| Shipping | 1,355,093.10 | 1,762,758.03 |
| Reserve fund | 1,300,000.00 | 1,300,000.00 |
| Other | 3,035,001.39 | 2,035,001.39 |
| Total | 40,839,009.98 | 30,335,832.88 |
2) Significant other account payable with over one year age
Unit: RMB/CNY
| Item | Ending balance | Reasons for non-payment or carry over |
| Shenzhen SED Property Development Co., Ltd. | 2,158,060.75 | Without settlement |
| Shenzhen Huayongxing Environmental Protection Technology Co., Ltd. | 1,000,000.00 | Deposit |
| Linghang Technology (Shenzhen) Co., Ltd | 656,345.28 | Without settlement |
| Shenzhen Tongxing Electronics Co., Ltd. | 578,259.83 | Without settlement |
| Shenzhen Yongdasheng Investment Development Co., Ltd. | 558,970.00 | Deposit |
| Total | 4,951,635.86 |
Other explanationNil
40. Non-current liabilities due within one year
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Long-term loans due within one year | 55,000,000.00 | 61,000,000.00 |
| Lease liabilities due within one year | 104,400.61 | 104,400.61 |
| Total | 55,104,400.61 | 61,104,400.61 |
Other explanation:
41. Other current liabilities
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Unterminated confirmation on note receivable | 37,185,847.90 | 64,546,944.94 |
| Pending sales tax | 97,335.67 | |
| Total | 37,185,847.90 | 64,644,280.61 |
Changes in short-term bonds payable:
Unit: RMB/CNY
| Name of bond | Face value | Issue date | Bond maturity | Issue Amount | Opening balance | Current issue | Interest accrued at face value | Premium and discount amortization | Repayment in the current period | Ending balance | |
| Total |
Other explanation:
42. Long-term loans
(1) Category
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
Description of Long-term loans classification:
Other explanation, including interest rate range:
43. Bonds payable
(1) Bonds payable
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
(2) Changes in increase or decrease in bonds payable (excluding preferred stocks, perpetual bonds andother financial instruments classified as financial liabilities)
Unit: RMB/CNY
| Name | Face | Issue | Bond | Issue | Openin | Current | Interest | Premiu | Repay | Closing |
of bond
| of bond | value | date | maturity | Amount | g balance | issue | accrued at face value | m and discount amortization | ment in the current period | balance | |
| Total | -- | ||||||||||
(3) Description of the conditions and time for the conversion of convertible corporate bonds
(4) Description of other financial instruments classified as financial liabilitiesBasic situation of other financial instruments such as preferred stocks and perpetual bonds issued at the end ofthe periodChanges in financial instruments such as preferred stocks and perpetual bonds issued at the end of the period
Unit: RMB/CNY
| Financial instruments issued | Beginning of period | Increase in the current period | Decrease in the current period | Ending of period | ||||
| Amount | Book value | Amount | Book value | Amount | Book value | Amount | Book value | |
Explanation of the basis for the classification of other financial instruments into financial liabilitiesOther note
44. Lease liabilities
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Lease liability | 86,325.75 | 115,101.00 |
| Total | 86,325.75 | 115,101.00 |
Other note
45. Long-term payables
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
(1) List long-term payables according to the nature of the payment
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
Other note:
(2) Special accounts payable
Unit: RMB/CNY
| Item | Opening balance | Increase in the current period | Decrease in the current period | Ending balance | Cause of formation |
Other note:
46. Long-term Wages payable
(1) Long-term Wages payable
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
(2) Changes in defined benefit plans
Present value of defined benefit plan obligations:
Unit: RMB/CNY
| Item | The Period | Last Period |
Plan assets:
Unit: RMB/CNY
| Item | The Period | Last Period |
Defined benefit plan net liabilities (net assets)
Unit: RMB/CNY
| Item | The Period | Last Period |
Description of the content of the defined benefit plan and related risks, the impact on the company's future cashflow, time and uncertainty:
Explanation of major actuarial assumptions and sensitivity analysis results of defined benefit plans:
Other note:
47. Accrual liability
Unit: RMB/CNY
| Item | Ending balance | Opening balance | Causes |
| Pending action | 801,159.18 | 801,159.18 | |
| Total | 801,159.18 | 801,159.18 |
Other explanations, including important assumptions and estimation about important estimated liabilities:
48. Deferred income
Unit: RMB/CNY
| Item | Opening balance | Increase during the period | Decrease during the period | Ending balance | Causes |
| Government subsidy | 3,565,560.00 | 239,040.00 | 3,326,520.00 | ||
| Total | 3,565,560.00 | 239,040.00 | 3,326,520.00 |
Items involving Government subsidy:
Unit: RMB/CNY
| Liability | Opening balance | New subsidy increased in the period | Amount reckoned in non-operating income in the period | Amount included in other income in the current period | Amount of cost and expense offset in the current period | Other change | Ending balance | Assets-related/Income-related |
| Provincial special fund for transforma | 1,400,000.00 | 100,000.00 | 1,300,000.00 | Assets-related |
tion andupgradingoftraditionalindustryfor 2018
| tion and upgrading of traditional industry for 2018 | ||||||||
| Incentive fund for Wuhan industrial intelligent transformation demonstration project in 2019 | 413,560.00 | 29,540.00 | 384,020.00 | Assets-related | ||||
| Special funds for industrial investment and technological transformation and intelligent transformation in 2020 | 1,752,000.00 | 109,500.00 | 1,642,500.00 | Assets-related |
Other explanation:
49. Other non-current liabilities
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
Other note:
50. Share capital
Unit: RMB/CNY
| Opening balance | Changes in the Period (+,-) | Ending balance | |||||
| Issuing new shares | Bonus shares | Shares transfer from public reserves | Other | Subtotal | |||
| Total shares | 283,161,227.00 | 283,161,227.00 | |||||
Other explanation:
51. Other equity instruments
(1) Basic information of other financial instruments such as preferred stocks and perpetual bonds issuedat the end of the period
(2) Changes in financial instruments such as preferred stocks and perpetual bonds issued at the end ofthe period
Unit: RMB/CNY
| Financial instruments issued | Beginning of period | Increase in the current period | Decrease in the current period | Ending of period | ||||
| Amount | Book value | Amount | Book value | Amount | Book value | Amount | Book value | |
Other equity instruments' changes in the current period, explanations of the reasons for the changes, and thebasis for related accounting treatments:
Other note:
52. Capital public reserve
Unit: RMB/CNY
| Item | Opening balance | Increase during the period | Decrease during the period | Ending balance |
| Capital premium (equity premium) | 146,577,771.50 | 146,577,771.50 | ||
| Total | 146,577,771.50 | 146,577,771.50 |
Other explanation, including changes and reasons of changes:
53. Treasury stocks
Unit: RMB/CNY
| Item | Opening balance | Increase in the current period | Decrease in the current period | Ending balance |
Other note, including changes in the current period and explanations of the reasons for the changes:
54. Other comprehensive income
Unit: RMB/CNY
| Item | Opening balance | The Period | Ending balance | |||||
| Account before income tax in the year | Less: written in other comprehensive income in previous period and carried forward to gains and losses in current period | Less: written in other comprehensive income in previous period and carried forward to retained earnings in | Less: income tax expense | Belong to parent company after tax | Belong to minority shareholders after tax | |||
currentperiod
currentperiod
Other explanation, including the adjustment on initial recognition for arbitrage items that transfer from theeffective part of cash flow hedge profit/loss:
55. Surplus public reserve
Unit: RMB/CNY
| Item | Opening balance | Increase during the period | Decrease during the period | Ending balance |
| Statutory surplus reserves | 77,391,593.25 | 77,391,593.25 | ||
| Total | 77,391,593.25 | 77,391,593.25 |
Other explanation, including changes and reasons for changes:
56. Retained profit
Unit: RMB/CNY
| Item | Current period | Last period |
| Retained profit at the end of the previous period before adjustment | -163,679,952.44 | -170,881,854.46 |
| Retained profit at period-begin after adjustment | -163,679,952.44 | -170,881,854.46 |
| Add: net profit attributable to owners of the parent company | 8,806,785.10 | 6,989,362.48 |
| Retained profit at period-end | -154,873,167.34 | -163,892,491.98 |
Details about adjusting the retained profits at the beginning of the period:
1) The retroactive adjustments to Accounting Standards for Business Enterprises and its relevant newregulations affect the retained profits at the beginning of the period amounting to 0 Yuan.
2) The changes in accounting policies affect the retained profits at the beginning of the period amounting to 0Yuan.
3) The major accounting error correction affects the retained profits at the beginning of the period amounting to0 Yuan
4) Merge scope changes caused by the same control affect the retained profits at the beginning of the periodamounting to 0 Yuan.
5) Other adjustments affect the retained profits at the beginning of the period amounting to 0 Yuan
57. Operating revenue and cost
Unit: RMB/CNY
| Item | Current Period | Last Period | ||
| Revenue | Cost | Revenue | Cost | |
| Main business | 343,768,461.90 | 302,427,802.11 | 323,468,602.68 | 282,596,348.19 |
| Other business | 10,378,458.91 | 9,418,141.38 | 68,165,205.87 | 47,447,861.39 |
| Total | 354,146,920.81 | 311,845,943.49 | 391,633,808.55 | 330,044,209.58 |
Information relating to revenue:
Unit: RMB/CNY
| Category | Branch 1 | Branch 2 | Total | |
| Product types | ||||
| Including: | ||||
| Display | 201,380,980.94 | 201,380,980.94 |
Plastic injectionhardware
| Plastic injection hardware | 92,476,910.14 | 92,476,910.14 | ||
| Foam parts | 22,509,819.38 | 22,509,819.38 | ||
| Property lease | 26,482,662.15 | 26,482,662.15 | ||
| Material income | 9,553,238.60 | 9,553,238.60 | ||
| Utility bills and others | 1,743,309.60 | 1,743,309.60 | ||
| Classification by business area | ||||
| Including: | ||||
| Domestic | 303,461,034.26 | 303,461,034.26 | ||
| Overseas | 50,685,886.55 | 50,685,886.55 | ||
| Market or customer type | ||||
| Including: | ||||
| Contract types | ||||
| Including: | ||||
| Classification by time of goods transfer | ||||
| Including: | ||||
| Classification by contract duration | ||||
| Including: | ||||
| Classification by sales channel | ||||
| Including: | ||||
| Total | 354,146,920.81 | 354,146,920.81 |
Information relating to performance obligations:
NilInformation related to the transaction price apportioned to the remaining performance obligations:
The amount of income corresponding to the performance obligations that have been signed at the end of thisreporting period but have not yet been fulfilled or have not done with fulfillment is 0.00 yuan, among them,yuan of revenue is expected to be recognized in YEAR, yuan of revenue is expected to be recognized in YEAR,and yuan of revenue is expected to be recognized in YEAR.Other explanation
58. Tax and surcharges
Unit: RMB/CNY
| Item | Current Period | Last Period |
| Urban maintenance and construction tax | 524,812.63 | 53,181.85 |
| Educational surtax | 337,932.44 | 23,402.05 |
| Property tax | 803,504.10 | 671,892.72 |
| Land use tax | 140,595.85 | 380,897.71 |
| Vehicle use tax | 420.00 | |
| Stamp tax | 225,040.10 | 283,562.58 |
| Local education development fee | 19,554.99 | 15,425.01 |
| Total | 2,051,860.11 | 1,428,361.92 |
Other explanation:
59. Sales expense
Unit: RMB/CNY
| Item | Current Period | Last Period |
| Employee compensation | 1,511,113.24 | 1,940,607.71 |
| Customs fee | 428,889.32 | 204,766.55 |
| After-sales service fee | 2,181,327.83 | 3,190,859.79 |
| Business entertainment expense | 103,382.79 | 264,119.35 |
| Transportation fee | 3,362,898.88 | 4,858,694.34 |
| Commodity loss and others | 1,915,546.51 | 3,635,570.22 |
| Total | 9,503,158.57 | 14,094,617.96 |
Other explanation:
60. Administrative expense
Unit: RMB/CNY
| Item | Current Period | Last Period |
| Salary | 4,569,059.54 | 6,033,625.10 |
| Depreciation | 1,034,235.99 | 1,259,331.29 |
| Social security fee | 1,196,121.34 | 1,182,922.32 |
| Business entertainment expense | 721,167.15 | 1,829,623.45 |
| Employee benefits | 451,211.62 | 1,205,669.37 |
| Travel expenses | 304,754.99 | 705,255.91 |
| Depreciation and amortization cost | 956,561.62 | 863,491.01 |
| Transportation expenses | 190,138.32 | 220,781.91 |
| Intermediary agency service fee | 1,392,751.91 | 2,163,145.90 |
| Security fee | 783,054.02 | 460,539.40 |
| Repair cost | 2,792,908.99 | 3,428,358.44 |
| Office expenses | 612,830.43 | 1,075,155.32 |
| Communication fee | 70,790.74 | 61,127.20 |
| Securities Information Disclosure Fee | 33,532.00 | 46,361.00 |
| Environmental protection fee | 312,500.95 | 47,617.53 |
| Staff education and labor union funds | 99,228.19 | 12,689.53 |
| Water and electricity | 262,980.96 | 284,729.15 |
| Property insurance premium | 145,636.56 | |
| Litigation fee | 502,311.00 | |
| Other expenses | 1,195,845.48 | 1,799,883.41 |
| Total | 17,627,621.80 | 22,680,307.24 |
Other explanation:
61. R& D expenses
Unit: RMB/CNY
| Item | Current Period | Last Period |
| Personnel labor costs | 3,349,821.11 | 3,424,760.68 |
| Depreciation and amortization expense | 461,134.94 | 437,009.74 |
| Maintenance and inspection fees | 972,301.14 | |
| Other related expenses | 239,418.36 | 93,877.08 |
| Total | 5,022,675.55 | 3,955,647.50 |
Other explanation:
62. Financial expense
Unit: RMB/CNY
| Item | Current Period | Last Period |
| Interest costs | 3,018,586.99 | 3,731,443.17 |
| Less: Interest income | -197,692.42 | 203,041.26 |
| Exchange loss | 1,232,863.24 | 4,068,036.84 |
| Less: exchange gains | 2,188,048.69 | 2,461,568.22 |
| Handing expense | 73,802.64 | 106,832.13 |
| Total | 1,940,816.62 | 5,241,702.86 |
Other explanation:
63. Other income
Unit: RMB/CNY
| Sources | Current Period | Last Period |
| Three generations of fees refunds | 4,283.81 | 3,553.35 |
| Special funds of 2021 provincial foreign trade and economic development | 3,500,000.00 | |
| Special funds of 2021 provincial foreign trade and economic development (processing trade matters) | 575,800.00 | |
| Special funds of 2020 Caidian District Industrial enterprise technology transformation | 130,000.00 | |
| Special funds of 2021 Central foreign economic and trade development (to promote the development of foreign trade SMEs) | 66,200.00 | |
| Provincial special fund for transformation and upgrading of traditional industry for 2018 | 100,000.00 | |
| Incentive fund for Wuhan industrial intelligent transformation demonstration project in 2019 | 29,540.00 | |
| Special funds for industrial investment and technological transformation and intelligent transformation in 2020 | 109,500.00 | |
| Total | 4,515,323.81 | 3,553.35 |
64. Investment income
Unit: RMB/CNY
| Item | Current Period | Last Period |
| Financial income | 180,088.19 | 149,767.58 |
| Total | 180,088.19 | 149,767.58 |
Other explanation:
65. Credit impairment loss
Unit: RMB/CNY
| Item | Current Period | Last Period |
Other explanation:
66. Losses on assets impairment
Unit: RMB/CNY
| Item | Current Period | Last Period |
| II. Inventory falling price loss and impairment loss of contract performance cost | -1,350,000.00 | |
| Total | 0.00 | -1,350,000.00 |
Other explanation:
67. Asset disposal income
Unit: RMB/CNY
| Source of asset disposal income | Current Period | Last Period |
| Fixed assets disposal | 789,308.26 |
68. Non-operating income
Unit: RMB/CNY
| Item | Current Period | Last Period | Amount included in current non-recurring profits or losses |
| Government subsidy | 256,000.00 | ||
| Handling fee and others | 40,574.92 | 20,599.04 | 40,574.92 |
| Total | 40,574.92 | 276,599.04 | 40,574.92 |
Government subsidy reckoned into current gains/losses:
Unit: RMB/CNY
| Item | Issuing subject | Offering causes | Nature | Subsidy impact current gains/losses (Y/N) | The special subsidy (Y/N) | Amount in the Period | Amount in last period | Assets-related/Income-related |
Other explanation:
69. Non-operating expenditure
Unit: RMB/CNY
| Item | Current Period | Last Period | Amount included in current non-recurring profits or losses |
| Other | 15,308.31 | 215,202.92 | 15,308.31 |
| Total | 15,308.31 | 215,202.92 | 15,308.31 |
Other explanation:
70. Income tax expense
(1) Statement of income tax expense
Unit: RMB/CNY
| Item | Current Period | Last Period |
| Current income tax expense | 2,858,046.44 | 1,584,720.39 |
| Total | 2,858,046.44 | 1,584,720.39 |
(2) Adjustment on accounting profit and income tax expenses
Unit: RMB/CNY
| Item | Current Period |
| Total profit | 11,664,831.54 |
| Income tax based on statutory/applicable rate | 2,935,595.03 |
| Impact by different tax rate applied by subsidies | 77,548.59 |
| Income tax expense | 2,858,046.44 |
Other explanationNil
71. Other comprehensive income
See note
72. Annotation of cash flow statement
(1) Cash received with other operating activities concerned
Unit: RMB/CNY
| Item | The Period | Last Period |
| Unit intercourse account | 9,264,523.28 | 15,891,476.38 |
| Repayment from employees | 8,000.00 | 81,510.67 |
| Margin and deposit | 308,402.50 | 3,420.00 |
| Interest income | 41,205.46 | 30,133.34 |
| Government subsidy | 4,272,000.00 | 259,553.35 |
| Total | 13,894,131.24 | 16,266,093.74 |
Note of cash received with other operating activities concerned:
Nil
(2) Cash paid with other operating activities concerned
Unit: RMB/CNY
| Item | The Period | Last Period |
| Unit intercourse account | 17,410,896.15 | 19,499,576.94 |
| Employee loan | 2,418,943.00 | 47,686.67 |
| Deposit and security deposit | 310,606.20 | 1,804,581.00 |
| Communication fee | 315,763.72 | 165,926.34 |
| Utility bill | 1,791,131.38 | 4,662,103.00 |
| Travel expenses | 168,703.63 | 1,168,068.54 |
| Shipping fee | 3,191,066.04 | 2,706,778.65 |
| Repair cost | 1,114,725.46 | 1,369,952.77 |
| Consultation fee | 1,400,000.00 | |
| Office expenses | 6,485.97 | 19,086.70 |
| Communication fee | 56,794.86 | 437,439.91 |
| Other | 13,359,474.93 | 18,919,703.62 |
| Total | 40,144,591.34 | 52,200,904.14 |
Note of cash paid with other operating activities concerned:
”Other” refers to note receivable margin, which is restricted funds.
(3) Cash received with other investment activities concerned
Unit: RMB/CNY
| Item | Current Period | Last Period |
| Financial redemption | 57,000,000.00 | |
| Total | 57,000,000.00 |
Note of cash received with other investment activities concerned:
(4) Cash paid related with investment activities
Unit: RMB/CNY
| Item | Current Period | Last Period |
| Investment and financial management | 57,000,000.00 | |
| Total | 57,000,000.00 |
Note of cash paid related with investment activities:
(5) Other cash received related to financing activities
Unit: RMB/CNY
| Item | Current Period | Last Period |
Description of other received cash related to financing activities:
(6) Cash paid related with financing activities
Unit: RMB/CNY
| Item | Current Period | Last Period |
Note of cash paid related with financing activities:
73. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
Unit: RMB/CNY
| Supplementary information | This Period | Last Period |
| 1. Net profit adjusted to cash flow of operation activities: | ||
| Net profit | 8,806,785.10 | 6,989,362.48 |
| Add: Assets impairment provision | 1,350,000.00 | |
| Depreciation of fixed assets, consumption of oil assets and depreciation of productive biology assets | 7,690,371.41 | 5,855,066.65 |
| Depreciation of right-of-use assets | 52,324.68 | |
| Amortization of intangible assets | 362,505.79 | 875,257.88 |
| Amortization of long-term deferred expenses | 163,238.99 | 114,127.72 |
| Loss from disposal of fixed assets, intangible assets and other long-term assets (gain is listed with “-”) | -789,308.26 | |
| Losses on scrapping of fixed assets (gain is listed with “-”) | ||
| Gain/loss of fair value changes |
(gain is listed with “-”)
| (gain is listed with “-”) | ||
| Financial expenses (gain is listed with “-”) | 1,940,816.62 | 5,241,702.86 |
| Investment loss (gain is listed with “-”) | -180,088.19 | -149,767.58 |
| Decrease of deferred income tax asset ((increase is listed with “-”) | 35,856.00 | |
| Increase of deferred income tax liability (decrease is listed with “-”) | ||
| Decrease of inventory (increase is listed with “-”) | 24,485,039.16 | -61,101,647.02 |
| Decrease of operating receivable accounts (increase is listed with “-”) | 28,321,886.92 | 97,224,785.91 |
| Increase of operating payable accounts (decrease is listed with “-”) | -21,169,205.84 | -78,217,258.49 |
| Other | ||
| Net cash flows arising from operating activities | 49,720,222.38 | -21,818,369.59 |
| 2. Material investment and financing not involved in cash flow | ||
| Conversion of debt into capital | ||
| Switching Company bonds due within one year | ||
| Financing lease of fixed assets | ||
| 3. Net change of cash and cash equivalents: | ||
| Balance of cash at period end | 60,681,659.02 | 59,612,186.22 |
| Less: Balance of cash equivalent at year-begin | 32,802,562.90 | 60,968,053.58 |
| Add: Balance at year-end of cash equivalents | ||
| Less: Balance at year-begin of cash equivalents | ||
| Net increase of cash and cash equivalents | 27,879,096.12 | -1,355,867.36 |
(2) Net cash payment for the acquisition of a subsidiary in the period
Unit: RMB/CNY
| Amount | |
| Including: | -- |
| Including: | -- |
| Including: | -- |
Other note:
(3) Net cash received from the disposal of subsidiaries
Unit: RMB/CNY
| Amount | |
| Including: | -- |
| Including: | -- |
| Including: | -- |
Other note:
(4) Constitution of cash and cash equivalent
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
I. Cash
| I. Cash | 60,681,659.02 | 32,802,562.90 |
| Including: Cash on hand | 460.00 | 220,467.15 |
| Bank deposit available for payment at any time | 75,664,154.16 | 32,582,095.75 |
| III. Balance of cash and cash equivalent at period-end | 60,681,659.02 | 32,802,562.90 |
Other explanation:
74. Note of the changes of owners’ equity
Explain the items and amount at period-end adjusted for “Other” at end of the last year:
Nil
75. Assets with ownership or use right restricted
Unit: RMB/CNY
| Item | Ending book value | Limited reason |
| Monetary fund | 14,890,386.86 | Note payable margin |
| Fixed assets | 11,972,048.26 | Collateral for borrowing |
| Intangible assets | 6,463,333.15 | Collateral for borrowing |
| Monetary fund | 92,568.28 | Judicial freeze |
| Investment real estate | 33,323,610.66 | Collateral for borrowing |
| Disposal of fixed assets | 92,857,471.69 | Court seizure |
| Total | 159,599,418.90 |
Other explanation:
76. Item of foreign currency
(1) Item of foreign currency
Unit: RMB/CNY
| Item | Ending balance of foreign currency | Rate of conversion | Ending RMB balance converted |
| Monetary funds | |||
| Including: USD | 144,521.39 | 6.6863 | 966,313.38 |
| Euro | |||
| HKD | |||
| Account receivable | |||
| Including: USD | 3,148,466.55 | 6.6863 | 21,051,591.91 |
| Euro | |||
| HKD | |||
| Long-term loans | |||
| Including: USD | |||
| Euro | |||
| HKD | |||
Other explanation:
(2) Explanation on foreign operational entity, including as for the major foreign operational entity,disclosed main operation place, book-keeping currency and basis for selection; if the book-keepingcurrency changed, explain reasons
□ Applicable √Not applicable
77. Government subsidy
(1) Government subsidy
Unit: RMB/CNY
| Category | Amount | Item for presentation | Amount reckoned into current gains/losses |
| Special funds of 2021 provincial foreign trade and economic development | 3,500,000.00 | Other income | 3,500,000.00 |
| Special funds of 2021 provincial foreign trade and economic development (processing trade matters) | 575,800.00 | Other income | 575,800.00 |
| Special funds of 2020 Caidian District Industrial enterprise technology transformation | 130,000.00 | Other income | 130,000.00 |
| Special funds of 2021 Central foreign economic and trade development (to promote the development of foreign trade SMEs) | 66,200.00 | Other income | 66,200.00 |
| Provincial special fund for transformation and upgrading of traditional industry for 2018 | 100,000.00 | Other income | 100,000.00 |
| Incentive fund for Wuhan industrial intelligent transformation demonstration project in 2019 | 29,540.00 | Other income | 29,540.00 |
| Special funds for industrial investment and technological transformation and intelligent transformation in 2020 | 109,500.00 | Other income | 109,500.00 |
| Three generation of fees | 4,283.81 | Other income | 4,283.81 |
(2) Government grants rebate
□ Applicable √Not applicable
Other explanation:
VIII. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
| Subsidiary | Main operation place | Registration place | Business nature | Share-holding ratio | Acquired way | |
| Directly | Indirectly | |||||
| Wuhan Hengfa Technology Co., Ltd. | Wuhan | Wuhan | Production & sales | 100.00% | Investment establishment | |
| Shenzhen Zhongheng HUAFA Property Co., Ltd | Shenzhen | Shenzhen | Property management | 100.00% | Investment establishment | |
| Shenzhen HUAFA Hengtian Co., Ltd. | Shenzhen | Shenzhen | Property management | 100.00% | Investment establishment | |
| Shenzhen HUAFA Hengtai Co., Ltd. | Shenzhen | Shenzhen | Property management | 100.00% | Investment establishment | |
| Shenzhen HUAFA Property Lease Management Co., Ltd | Shenzhen | Shenzhen | Property management | 100.00% | Investment establishment | |
| Ruth Co., Ltd. | Hong Kong, China | Hong Kong, China | 100.00% | Equity acquisition | ||
Explanation on share-holding ratio in subsidiary different from ratio of voting right:
Basis for controlling the invested entity with half or below voting rights held and without controlling invested entity but with overhalf and over voting rights:
Major structured entity included in consolidates statement:
The scope of consolidate financial statement is determined on a control basis, which not only includes the subsidiaries determinedon the basis of voting rights themselves or in combination with other arrangements, but also structured subjects determined on thebasis of one or more contractual arrangements.The control means that the Company owns a power over the investee, obtains variable returns through participation in theinvestee’s related activities, and has the ability to use its power over the investee to influence the amount of variable returns. Thesubsidiary is the subject that are controlled by the Company, the structured subjects are subjects that are not designed to havevoting rights as a determinant in determining the controlling party.Basis of termination of agent or consignor:
Other explanation
IX. Related party and related party transactions
1. Parent company of the enterprise
| Parent company | Registration place | Business nature | Registered capital | Share-holding ratio on the enterprise for parent company | Voting right ratio on the enterprise |
| Wuhan Zhongheng New Science & Technology Industrial Group Co., Ltd | Wuhan | Production and sales, real estate development and sales, housing leasing and management | 138,000,000.00 | 42.13% | 42.13% |
Explanation on parent company of the enterpriseNilThe ultimate control of the enterprise is Li Zhongqiu.Other note:
2. Subsidiary of the Enterprise
Found more in VIII. Equity in other entity in the Note
3. Other related party
| Other Related party | Relationship with the Enterprise |
| Shenzhen Zhongheng Semiconductor Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Wuhan Hengsheng Yutian Industrial Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Wuhan Hengsheng Photo-electricity Industry Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Hong Kong Yutian International Investment Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Wuhan New Oriental Real Estate Development Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Wuhan Zhongheng Property Management Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Wuhan Optical Valley Display System Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Wuhan Yutian Dongfang Property Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Wuhan Xiahua Zhongheng Electronics Co. Ltd. | Control by same controlling shareholder and ultimate controller |
| Wuhan Zhongheng Yutian Trading Co,, Ltd | Control by same controlling shareholder and ultimate controller |
| Wuhan Yutian Hongguang Real Estate Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Shenzhen Zhongheng Huayu Investment Holding Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Famous Sky Capital Limited | Control by same controlling shareholder and ultimate controller |
| Hong Kong Zhongheng Yutian Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Shenzhen Zhongheng Yongye Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Shenzhen Yutian Hengrui Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Wuhan Henglian Optoelectronics Co., Ltd. | Control by same controlling shareholder and ultimate controller |
Other note
4. Related transaction
(1) Goods purchasing, labor service providing and receiving
Goods purchasing/labor service receiving
Unit: RMB/CNY
| Related party | Content | Current Period | Trading limit | Whether over the | Last Period |
approved
| approved | approved limited or not (Y/N) | ||||
| Hong Kong Yutian International Investment Co., Ltd. | Purchasing | 32,093,434.47 | 127,514,000.00 | N | 37,751,811.11 |
| Wuhan Hengsheng Photo-electricity Industry Co., Ltd. | Purchasing | 55,876,974.75 | 178,519,600.00 | N | 60,509,427.57 |
| Total | 87,970,409.22 | 306,033,600.00 | N | 98,261,238.68 |
Goods sold/labor service providing
Unit: RMB/CNY
| Related party | Content | Current Period | Last Period |
| Hong Kong Yutian International Investment Co., Ltd. | Sales | 35,680,578.23 | 62,100,265.79 |
| Wuhan Hengsheng Photo-electricity Industry Co., Ltd. | Sales | 28,513,041.72 | 17,319,716.68 |
| Total | 64,193,619.95 | 79,419,982.47 |
Explanation on goods purchasing, labor service providing and receiving
(2) Related guarantee
As the guarantor
Unit: RMB/CNY
| Secured party | Amount guarantee | Start | End | Completed or not (Y/N) |
| Wuhan Hengfa Technology Co., Ltd. | 36,000,000.00 | 2022-04-21 | 2026-04-21 | N |
As the secured party
Unit: RMB/CNY
| Guarantor | Amount guarantee | Start | End | Completed or not (Y/N) |
| Li Zhongqiu | 90,000,000.00 | 2019-07-01 | 2022-07-01 | Y |
Explanation on related guarantee
5. Receivable/payable items of related parties
(1) Receivable
Unit: RMB/CNY
| Item | Related party | Ending balance | Opening balance | ||
| Book balance | Bad debt provision | Book balance | Bad debt provision | ||
| Account receivable | Hong Kong Yutian International Investment Co., Ltd. | 17,899,401.57 | 24,428,463.68 | ||
| Account receivable | Wuhan Hengsheng Photo-electricity Industry Co., Ltd. | 12,099.44 | 13,902,449.94 | ||
Advance payment
| Advance payment | Hong Kong Yutian International Investment Co., Ltd. | 14,502,424.33 | |||
| Total | 32,413,925.34 | 38,330,913.62 |
(2) Payable
Unit: RMB/CNY
| Item | Related party | Closing book balance | Opening book balance |
| Accounts payable | Wuhan Hengsheng Photo-electricity Industry Co., Ltd. | 21,924,311.63 | 17,295,609.05 |
| Accounts payable | Hong Kong Yutian International Investment Co., Ltd. | 10,025,769.59 | |
| Total | 21,924,311.63 | 27,321,378.64 |
X. Commitments or contingency
1. Important commitments
Important commitments on balance sheet dateAs of the date of this report, the company has no important commitments that should be disclosed but notdisclosed.
2. Contingency
(1) Contingency on balance sheet date
As of the date of this report, the company has no undisclosed contingencies that should be disclosed.
(2) For the important contingency not necessary to disclosed by the Company, explained reasonsThe Company has no important contingency that need to disclosed
XI. Other important events
1. Previous accounting errors collection
(1) Retrospective restatement method
Unit: RMB/CNY
| Correction of accounting errors | Processing program | Names of report items in each comparison period affected | Cumulative influence |
(2) Future applicable law
| Correction of accounting errors | Approval procedure | Reasons for adopting future applicable law |
2. Debt restructuring
3. Assets replacement
(1) Exchange of non-monetary assets
(2) Other asset replacement
4. Pension plan
5. Termination of operation
Unit: RMB/CNY
| Item | Income | Expense | Total profit | Income tax expense | Net profit | Termination of operation profit attributable to owners of the parent company |
Other note
6. Segment
(1) Recognition basis and accounting policy for reportable segment
(2) Financial information for reportable segment
Unit: RMB/CNY
| Item | Offset of segment | Total | |
(3) If the company has no reportable segments or is unable to disclose the total assets and liabilities ofeach reportable segment, it should state the reasons
(4) Other explanations
7. Major transaction and events makes influence on investor’s decision
8. Other
(1) The Company signed Asset Exchange Contract with Wuhan Zhongheng New Science & Technology Industrial Group Co., Ltd(hereinafter referred to as Wuhan Zhongheng Group) on 29 April 2009 (details were referred to in the announcement dated 30 April2009), and pursuant to the contract, since part of the assets of the Company (namely two parcel of industrial lands located at Huafa
road, Gongming town, Guangming new district, Shenzhen (the property certificate No. were SFDZ No.7226760 and SFDZNo.7226763, No. of parcels were A627-005 andA627-007, and the aggregate area was 48,200 sq.m) were the lands listed in the firstbatch of plan for 2010 Shenzhen urbanization unit planning preparation plan. For promotion of such urbanization project and jointcooperation, the Company has not completed the transfer procedures in respect of the aforesaid land.
The Company convoked the first extraordinary meeting of the Board in 2015 on February 16, 2015 and the first extraordinary generalmeeting of the Board in 2015 on March 4, 2015, which considered and approved the “Motion on promoting and implementing theurban renewal project for the renewal units of Huafa area at Gongming street, Guangming new district, Shenzhen”, specified that theCompany and Wuhan Zhongheng Group shall obtain the corresponding compensatory consideration for removal from therespectively owned project plots and the respectively contributed and constructed above-ground buildings before the landdevelopment, it is estimated that the compensatory consideration obtained by the Company accounts for 50.5% of the totalconsideration and Wuhan Zhongheng Group accounts for 49.5% by calculation.
The sixth extraordinary meeting of the board of directors in 2015 and the third extraordinary general meeting of 2015 haveconsidered and adopted the “Proposal on the project promotion and implementation of urban renewal and the progress of relatedtransactions of ‘the updated units at Huafa Area, Gong Ming Street, Guangming New District, Shenzhen’”, the company has signedthe “Agreement on the cooperation of urban renewal project of the updated units at Huafa Area, Gong Ming Street, Guangming NewDistrict, Shenzhen”, “Contract for the cooperative venture of reconstruction project for Huafa Industrial Park, Gong Ming Street,Guangming New District” on 26 August 2015, and “Agreement on housing acquisition and removal compensation and resettlement”with Wuhan Wuhan Zhongheng Group, Shenzhen Vanke Real Estate Co., Ltd. (hereinafter referred to as “Shenzhen Vanke”), andShenzhen Vanke Guangming Real Estate Development Co., Ltd. (hereinafter referred to as “Vanke Guangming”).
On 12 September 2016, Shenzhen Vanke applied for arbitration in respect of “Agreement on the cooperation of urban renewalproject of the updated units at Huafa Area, Gong Ming Street, Guangming New District, Shenzhen” against the Company and WuhanZhongheng Group. Shenzhen Court of International Arbitration (SCIA) has given a ruling in August 2017. On August 29, 2018, thecourt accepted the compulsory execution application of Shenzhen Vanke. In October 2019, as a number of outsiders filed an“execution objection” and applied for “no execution” to Shenzhen Intermediate People’s Court, the Shenzhen Intermediate People’sCourt ruled to terminate the enforcement procedure on March 20, 2020. If the “execution objection” and “no execution” proposed byoutsiders are rejected according to law, Shenzhen Vanke may continue to apply to the Shenzhen Intermediate People’s Court toresume execution.
In April 2020, Zhongheng Semiconductor sued the company to Shenzhen Intermediate People’s Court, and requested the company totransfer the above mentioned two pieces of lands and compensate the economic loss of 52 million yuan, the first and second trialjudgments reject the Semiconductor’s appeal; Zhongheng Semiconductor sued the Company and the invalid of “Agreement on thecooperation of urban renewal project of the updated units at Huafa Area, Gong Ming Street, Guangming New District, Shenzhen”signed by Wuhan Zhongheng Group Company and Vanke, the second trial rejects all claims of Zhongheng Semiconductor. Progressof the case found more in the Notices released on Juchao website dated 14 Sept. 2016, 1 Nov. 2016, 16 Nov. 2016, on 18 Feb. 2017,24 March 2017, 25 April 2017, 1 July 2017, 18 August 2017, 9 Feb. 2018, 25 Aug. 2018, 7 Sept. 2018, 21 Apr. 2020, 3 Jun, 2021, 22Jul. 2021 and Mar. 5, 2022 respectively.
(2) On 31 December 2015, the 88,750,047 shares held by Wuhan Zhongheng Group, are pledge to China Merchants Securities AssetsCo., Ltd. with due date of 31 December 2016. On 1 Feb. 2016, Wuhan Zhongheng Group pledge the 27,349,953 shares held to ChinaMerchants Securities Assets Co., Ltd. with due date of 31 December 2016. The above-mentioned pledged shares are deferred byWuhan Zhongheng Group; pledge expired on 31 December 2017. The trading day for repurchase put off to the date when pledgeactually removed. Till end of this period released, controlling shareholder still not removed the pledge and the Company has apply by
letter, relevant Notice of Presentment on Stock Pledge from Controlling Shareholder was released. Found more in notice released onJuchao website date 2 Feb. 2018.
In March 2021, Wuhan Zhongheng Group received the judgment on case of “pledged securities repurchase dispute” brought byChina Merchants Securities Assets Management Co., Ltd from High People’s Court of Guangdong Province. Wuhan ZhonghengGroup appealed to the Supreme People’s Court against the decision. Found more in notice released on Juchao Website dated March19, 2021.
(3) The controlling shareholder Wuhan Zhongheng Group holds 119,289,894 shares of the Company’ stock, accounting for 42.13%of the total share capital of the Company, of which 116,489,894 shares were judicially frozen by Shenzhen Intermediate People'sCourt (hereinafter referred to as "Shenzhen Intermediate Court") on September 27, 2016, which were frozen again by the ShenzhenIntermediate People's Court on December 14, 2018, with a frozen period of 36 months; the remaining 2,800,000 shares were frozenby the Shenzhen Intermediate People's Court on May 29, 2019, and were frozen again by the Higher People’s Court of GuangdongProvince on July 5, 2019. For details, please refer to the company’s announcements published on Juchao Website dated October 27,2016, January 11, 2019, May 31, 2019 and August 7, 2019.
(4) On September 29, 2016, the company and its controlling shareholder, Wuhan Zhongheng Group, signed the “Agency Contract”with V&T Law Firm. On October 8, 2016, the three parties also signed the “Supplemental Agreement for Agency Contract”, it wasagreed that V&T acted as an agent for the company and Wuhan Zhongheng Group to deal with the arbitration case with ShenzhenVanke. After losing the lawsuit, due to differences in the payment of attorney fees, V&T sued our company and Wuhan ZhonghengGroup to the Shenzhen Court of International Arbitration, and applied to the court to seize a bank account under our company’s nameand part of our company dormitories, please refer to “Other Announcements on the Progress Involving Litigation and Arbitration”(Announcement Numbers: 2018-43, 2019-02) released on Juchao Website dated November 14, 2018 and March 6, 2019. InNovember 2019, the Shenzhen Court of International Arbitration ruled that the company and Wuhan Zhongheng Group paid thecorresponding fees. According to the relevant agreement of the “Entrusted Agency Contract” and “Supplementary Agreement”signed by the three parties, loss of the ruling in the case shall be fully borne by Wuhan Zhongheng Group, therefore, it has no impacton the profit of the Company. Found more on “Other Announcements on the Progress Involving Litigation and Arbitration”(Announcement No.: 2019-34) released on Juchao Website dated November 25, 2019.
(5) Business of the Company - Styrofoam is a traditional manufacturing industry. The industry has stepping into the maturity withsevere overcapacity, the oversupply leads to a low gross margin and downward trend of profitability of the Company’s products. The“proposal to shut down the Styrofoam business from wholly-owned subsidiary” was deliberated and approved by the third interimmeeting of BOD of 2022. Closure of the plant is progressing steadily.
XII. Principle notes of financial statements of parent company
1. Account receivable
(1) Category of account receivable
Unit: RMB/CNY
| Category | Ending balance | Opening balance | ||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |
Amount
| Amount | Proportion | Amount | Accrual ratio | Amount | Proportion | Amount | Accrual ratio | |||
| Account receivable with bad debt provision accrual on a single basis | 10,293,424.29 | 100.00% | 10,293,424.29 | 100.00% | 10,293,424.29 | 100.00% | 10,293,424.29 | 100.00% | ||
| Including: | ||||||||||
| Including: | ||||||||||
| Total | 10,293,424.29 | 100.00% | 10,293,424.29 | 100.00% | 10,293,424.29 | 100.00% | 10,293,424.29 | 100.00% |
Accrual of bad debt provision on single basis: 10,293,424.29
Unit: RMB/CNY
| Name | Ending balance | |||
| Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
| Hong Kong Haowei Industrial Co., Ltd. | 1,870,887.18 | 1,870,887.18 | 100.00% | Uncollectible |
| TCL ACE ELECTRIC APPLIANCE (HUIZHOU) CO., LTD. | 1,325,431.75 | 1,325,431.75 | 100.00% | Uncollectible |
| Qingdao Haier Parts Procurement Co., Ltd. | 1,225,326.15 | 1,225,326.15 | 100.00% | Uncollectible |
| SKYWORTH Multimedia (Shenzhen) Co., Ltd. | 579,343.89 | 579,343.89 | 100.00% | Uncollectible |
| Shenzhen Huixin Video Technology Co., Ltd. | 381,168.96 | 381,168.96 | 100.00% | Uncollectible |
| Shenzhen Wandelai Digital Technology Co., Ltd. | 351,813.70 | 351,813.70 | 100.00% | Uncollectible |
| Shenzhen Dalong Electronic Co., Ltd. | 344,700.00 | 344,700.00 | 100.00% | Uncollectible |
| Shenzhen Keya Electronic Co., Ltd. | 332,337.76 | 332,337.76 | 100.00% | Uncollectible |
| Shenzhen Qunping Electronic Co., Ltd. | 304,542.95 | 304,542.95 | 100.00% | Uncollectible |
| China Galaxy Electronics (Hong Kong) Co., Ltd. | 288,261.17 | 288,261.17 | 100.00% | Uncollectible |
| Dongguan Weite Electronic Co., Ltd. | 274,399.80 | 274,399.80 | 100.00% | Uncollectible |
| Hong Kong New Century Electronics Co., Ltd. | 207,409.40 | 207,409.40 | 100.00% | Uncollectible |
| Shenyang Beitai Electronic Co., Ltd. | 203,304.02 | 203,304.02 | 100.00% | Uncollectible |
| Beijing Xinfang Weiye Technology Co., Ltd. | 193,000.00 | 193,000.00 | 100.00% | Uncollectible |
| TCL Electronics (Hong Kong) Co., Ltd. | 145,087.14 | 145,087.14 | 100.00% | Uncollectible |
| Huizhou TCL Xinte Electronics Co., Ltd. | 142,707.14 | 142,707.14 | 100.00% | Uncollectible |
| Sky Worth – RGB Electronic Co., Ltd. | 133,485.83 | 133,485.83 | 100.00% | Uncollectible |
| Other | 1,990,217.45 | 1,990,217.45 | 100.00% | Uncollectible |
| Total | 10,293,424.29 | 10,293,424.29 | -- | |
If the provision for bad debts of accounts receivable is made in accordance with the general model of expectedcredit losses, please refer to the disclosure of other receivables to disclose related information about bad-debtprovisions:
□ Applicable √Not applicable
By account age
Unit: RMB/CNY
| Account age | Ending balance |
| Over 3 years | 10,293,424.29 |
| Over 5 years | 10,293,424.29 |
| Total | 10,293,424.29 |
(2) Bad debt provision accrual, collected or reversal in the period
Bad debt provision accrual in the period:
Unit: RMB/CNY
| Category | Opening balance | Amount changed in the period | Ending balance | |||
| Accrual | Collected or reversal | Written-off | Other | |||
Including major amount bad debt provision that collected or reversal in the period:
Unit: RMB/CNY
| Name | Amount collected or reversal | Way of collection |
(3) Actual written-off accounts receivable in the current period
Unit: RMB/CNY
| Item | Written-off amount |
Including the important accounts receivable written-off situation:
Unit: RMB/CNY
| Name | Nature of accounts receivable | Written-off amount | Written-off reason | Written-off procedure performed | Whether the payment is generated by related party transactions |
Written-off description of accounts receivable:
(4) Top 5 account receivables collected by arrears party at ending balance
Unit: RMB/CNY
| Company | Ending balance of account receivable | Proportion in total account receivables at period-end | Ending balance of bad debt provision |
| Hong Kong Haowei Industrial Co., Ltd. | 1,870,887.18 | 18.18% | 1,870,887.18 |
| TCL ACE ELECTRIC APPLIANCE (HUIZHOU) CO., LTD. | 1,325,431.75 | 12.88% | 1,325,431.75 |
| Qingdao Haier Parts Procurement Co., Ltd. | 1,227,646.55 | 11.93% | 1,227,646.55 |
| SKYWORTH Multimedia (Shenzhen) Co., Ltd. | 579,343.89 | 5.63% | 579,343.89 |
| Shenzhen Huixin Video Technology Co., Ltd. | 381,168.96 | 3.70% | 381,168.96 |
| Total | 5,384,478.33 | 52.32% |
(5) Account receivable derecognition due to financial assets transfer
(6) Assets and liabilities resulted by account receivable transfer and continues involvementOther note:
2. Other account receivable
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
| Other account receivable | 95,039,705.78 | 92,468,697.71 |
| Total | 95,039,705.78 | 92,468,697.71 |
(1) Interest receivable
1) Category of interest receivable
Unit: RMB/CNY
| Item | Ending balance | Opening balance |
2) Significant overdue interest
| Borrower | Ending balance | Overdue time | Overdue reason | Whether there is impairment and its judgment basis |
Other note:
3) Accrual of bad debt provision
□ Applicable √Not applicable
(2) Dividend receivable
1) Category of dividend receivable
Unit: RMB/CNY
| Item (or invested unit) | Ending balance | Opening balance |
2) Important dividend receivable with account age over one year
Unit: RMB/CNY
| Item (or invested unit) | Ending balance | Account age | Reasons for non-recovery | Whether there is impairment and its judgment basis |
3) Accrual of bad debt provision
□ Applicable √Not applicable
Other note:
(3) Other account receivable
1) Other account receivable by nature
Unit: RMB/CNY
| Nature | Ending book balance | Opening book balance |
| Intercourse funds | 103,557,917.67 | 101,523,586.62 |
| Borrow money | 2,779,815.03 | 1,441,111.12 |
| Margin & deposit | 85,304.70 | 304,608.00 |
| Rent receivable and utilities | 7,001,429.97 | 6,999,971.21 |
| Other | 141,721.91 | 725,904.26 |
| Less: Bad debt provision | -18,526,483.50 | -18,526,483.50 |
| Total | 95,039,705.78 | 92,468,697.71 |
2) Accrual of bad debt provision
Unit: RMB/CNY
| Bad debt provision | Phase I | Phase II | Phase III | Total |
| Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
| Balance on1 Jan. 2022 | 18,526,483.50 | 18,526,483.50 | ||
| Balance of 1 Jan. 2022 in the period | ||||
| Balance on Jun. 30, 2022 | 18,526,483.50 | 18,526,483.50 |
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √Not applicable
By account age
Unit: RMB/CNY
| Account age | Ending balance |
| Within one year (one year included) | 16,763,629.05 |
| 1-2 years | 4,969,630.70 |
| 2-3 years | 73,307,622.03 |
| Over 3 years | 18,525,307.50 |
| Over 5 years | 18,525,307.50 |
| Total | 113,566,189.28 |
3) Bad debt provision accrual, collected or reversal in the period
Bad debt provision accrual in the period:
Unit: RMB/CNY
| Category | Opening balance | Amount changed in the period | Ending balance | |||
| Accrual | Collected or reversal | Written-off | Other | |||
Including the important amount collected or switches back in the period:
Unit: RMB/CNY
| Name | Amount collected or switches back | Way of collection |
4) The actual written-off other receivables in the current period
Unit: RMB/CNY
| Item | Written-off amount |
Including the important written-off situation of other receivables:
Unit: RMB/CNY
| Name | Nature of other receivables | Written-off amount | Written-off reason | Written-off procedure performed | Whether the payment is generated by related party transactions |
Description of other receivables written-off:
5) Top 5 other receivables collected by arrears party at ending balance
Unit: RMB/CNY
| Company | Nature | Ending balance | Account ages | Proportion in total other receivables at period-end | Ending balance of bad debt provision |
| Wuhan Hengfa Technology Co., Ltd. | Intercourse funds | 79,365,808.06 | Within 1 year/1-2 years/2-3 years | 69.89% | |
| Shenzhen Zhongheng HUAFA Property Co., Ltd | Intercourse funds | 20,661,335.28 | Within 1 year | 18.19% | |
| Shenzhen HUAFA Property Leasing Co., Ltd. | Rent receivable | 4,559,659.15 | Over 5 years | 4.01% | 4,559,659.15 |
| Portman | Rent receivable | 4,021,734.22 | Over 5 years | 3.54% | 4,021,734.22 |
| Jackfang Investment 1F 1076 | Rent receivable | 1,380,608.00 | Over 5 years | 1.22% | 1,380,608.00 |
| Total | 109,989,144.71 | 96.85% | 9,962,001.37 |
6) Receivables involving government subsidies
Unit: RMB/CNY
| Name | Government subsidy item | Ending balance | Ending account age | Estimated time, amount and basis of receipt |
7) Other receivable for termination of confirmation due to the transfer of financial assets
8) The amount of assets and liabilities that are transferred other receivable and continued to be involvedOther note:
3. Long-term equity investments
Unit: RMB/CNY
| Item | Ending balance | Opening balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
Investment forsubsidiary
| Investment for subsidiary | 187,218,400.00 | 600,000.00 | 186,618,400.00 | 187,218,400.00 | 600,000.00 | 186,618,400.00 |
| Total | 187,218,400.00 | 600,000.00 | 186,618,400.00 | 187,218,400.00 | 600,000.00 | 186,618,400.00 |
(1) Investment for subsidiary
Unit: RMB/CNY
| The invested entity | Opening balance (Book value) | Changes in the period | Closing balance (Book value) | Closing balance of impairment provision | |||
| Additional investment | Reduce investment | Accrual of impairment provision | Other | ||||
| Wuhan Hengfa Technology Co., Ltd. | 183,608,900.00 | 183,608,900.00 | |||||
| Shenzhen Zhongheng HUAFA Property Co., Ltd | 1,000,000.00 | 1,000,000.00 | |||||
| Shenzhen HUAFA Hengtian Co., Ltd. | 1,000,000.00 | 1,000,000.00 | |||||
| Shenzhen HUAFA Hengtai Co., Ltd. | 1,000,000.00 | 1,000,000.00 | |||||
| Shenzhen HUAFA Property Leasing Co., Ltd. | 600,000.00 | ||||||
| Ruth Co., Ltd. | 9,500.00 | 9,500.00 | |||||
| Total | 186,618,400.00 | 186,618,400.00 | 600,000.00 | ||||
4. Operating revenue and cost
Unit: RMB/CNY
| Item | The Period | Last Period | ||
| Revenue | Cost | Revenue | Cost | |
| Other business | 24,122,414.00 | 4,518,020.17 | 22,146,204.31 | 4,439,887.16 |
| Total | 24,122,414.00 | 4,518,020.17 | 22,146,204.31 | 4,439,887.16 |
Information relating to revenue:
Unit: RMB/CNY
| Category | Branch 1 | Branch 2 | Total | |
| Product types | ||||
| Including: | ||||
| Property lease | 22,853,967.50 | 22,853,967.50 | ||
| Utility bill | 1,268,446.50 | 1,268,446.50 | ||
| Classification by business area | ||||
| Including: | ||||
| Domestic | 24,122,414.00 | 24,122,414.00 |
Market or customertype
| Market or customer type | ||||
| Including: | ||||
| Contract types | ||||
| Including: | ||||
| Classification by time of goods transfer | ||||
| Including: | ||||
| Classification by contract duration | ||||
| Including: | ||||
| Classification by sales channel | ||||
| Including: | ||||
| Total | 24,122,414.00 | 24,122,414.00 |
Information relating to performance obligations:
NilInformation relating to the transaction price assigned to the remaining performance obligation:
At end of the period, the corresponding revenue amount for performance obligations that have been signed but have not beenperformed or have not been performed is 0.00 yuan, of which, yuan expected to recognized as revenue in the year.Other explanation:
XIII. Supplementary Information
1. Current non-recurring gains/losses
√ Applicable □ Not applicable
Unit: RMB/CNY
| Item | Amount | Note |
| Gains/losses from the disposal of non-current asset | 789,308.26 | |
| Governmental subsidy reckoned into current gains/losses (except for those with normal operation business concerned, and conform to the national policies & regulations and are continuously enjoyed at a fixed or quantitative basis according to certain standards) | 4,515,323.81 | |
| Gain/loss of entrusted investment or assets management | 180,088.19 | |
| Other non-operating income and expenditure except for the aforementioned items | 25,266.61 | |
| Less: Impact on income tax | 854,130.71 | |
| Total | 4,655,856.16 | -- |
Details of other gains/losses items that meets the definition of non-recurring gains/losses:
□ Applicable √ Not applicable
There are no other gains/losses items that meet the definition of non-recurring gains/losses in the Company.Explain the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/lossin Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss
□ Applicable √Not applicable
2. ROE and earnings per share
| Profits during report period | Weighted average ROE | Earnings per share | |
| Basic earnings per share (RMB/Share) | Diluted earnings per share (RMB/Share) | ||
| Net profits belong to common stock stockholders of the Company | 2.53% | 0.0311 | 0.0311 |
| Net profits belong to common stock stockholders of the Company after deducting nonrecurring gains and losses | 1.19% | 0.0147 | 0.0147 |
3. Difference of the accounting data under accounting rules in and out of China
(1) Difference of the net profit and net assets disclosed in financial report, under both IAS (InternationalAccounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
(2) Difference of the net profit and net assets disclosed in financial report, under both foreign accountingrules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable