Shenzhen Topband Co., Ltd.
Semi-annual Report 2022
July 2022
Section I Important Notes, Contents and DefinitionsThe Board of Directors, the Board of Supervisors and directors, supervisors and seniorexecutives of the Company hereby assure that the content set out in the Semi-annual Report is true,accurate and complete. It shall be free from false records, misleading statements or major omissions,and shall bear individual and joint legal liabilities therein.Wu Yongqiang, the principal of the Company, Xiang Wei, accounting head, and Luo Muchen,accounting department head (the person in charge of accounting department) hereby guarantee thetruth, accuracy and completeness of the financial report in this semi-annual report.All directors have attended the Board Meeting at which the Report was scrutinized.There is no significant risk affecting the financial condition and sustainable profitability of theCompany, but there may be risks of declining market demand, increased competition in the industry,raw material price fluctuations, changes in export rebate policy and foreign exchange rate fluctuationsdue to the macro environment home and abroad. For detailed risk warnings, please refer to the"Possible Risk Factors" in Section III of this report and investors are advised to pay attention toinvestment risks.The Company plans not to distribute cash dividends and bonus shares, nor to convert theaccumulation fund to increase the share capital.
Contents
Section I Important Notes, Contents and Definitions ...... 2
Section II Profile and Main Financial Indicators ...... 6
Section III Discussion and Analysis of the Management ...... 9
Section IV Corporate Governance ...... 31
Section V Environmental and Social Responsibility ...... 35
Section VI Important Matters ...... 37
Section VII Share Change and Shareholders ...... 47
Section VIII Information on Preferred Shares ...... 54
Section IX Relevant Information of Bonds ...... 55
Section X Financial Report ...... 56
Section XI Other Reported Data ...... 211
Directory of documents for future reference
I. Accounting statements containing the signatures and seals of the legal representative, the financialhead and the accounting department head.II. The originals of all the company documents publicly disclosed in newspapers designated by theCSRC during the reporting period and the original manuscripts of announcements.III. The original of the Semi-annual Report 2022 bearing the signature of the chairman.All the above documents are ready and complete, and are available for reference at the office of theBoard of Directors of the Company.
Definitions
| Terms | Refer to | Contents |
| Company, the Company, Topband | Refer to | Shenzhen Topband Co., Ltd. |
| Yuan, 10,000 yuan | Refer to | Yuan, RMB 10,000 yuan |
| CSRC | Refer to | China Securities Regulatory Commission |
| Exchange | Refer to | Shenzhen Stock Exchange |
| Reporting period | Refer to | From January 1, 2022 to June 30, 2022 |
| Articles of Association | Refer to | Articles of Association of Shenzhen Topband Co., Ltd. |
| Huizhou Topband | Refer to | Huizhou Topband Electrical Technology Co., Ltd. |
| YAKO Automation | Refer to | Shenzhen YAKO Automation Technology Co., Ltd. |
| HCD | Refer to | Shenzhen Allied Control System Co., Ltd. |
| Topband Software | Refer to | Shenzhen Topband Software Technology Co., Ltd. |
| ORVIBO | Refer to | Shenzhen ORVIBO Technology Co., Ltd. |
| Chongqing Yiyuan | Refer to | Chongqing Topband Industrial Co., Ltd. |
| Ningbo Topband | Refer to | Ningbo Topband Intelligent Control Co., Ltd. |
| Meanstone Intelligent | Refer to | Shenzhen Meanstone Intelligent Technology Co., Ltd. |
| HANSC Intelligent | Refer to | Shenzhen HANSC Intelligent Technology Co., Ltd. |
| Hong Kong Topband | Refer to | Topband (Hong Kong) Co., Ltd. |
| Topband Smart Europe | Refer to | Topband Smart Europe Company Limited |
| Topband Mexico | Refer to | Topband Mexico Company Limited |
| Topband Battery | Refer to | Shenzhen Topband Battery Co., Ltd. |
| AIoT | Refer to | Artificial intelligence of things |
| ICT | Refer to | Information Communications Technology |
| BLDC Motor | Refer to | Brushless DC Motor |
| IPD | Refer to | Integrated Product Development |
| ISC | Refer to | Integrated Supply Chain |
Section II Profile and Main Financial Indicators
I. Company information
| Stock abbreviation | Topband | Stock code | 002139 |
| Listed stock exchange | Shenzhen Stock Exchange | ||
| Chinese name of the Company | 深圳拓邦股份有限公司 | ||
| Chinese abbreviation of the Company name (if any) | 拓邦股份 | ||
| English name (if any) | Shenzhen Topband Co.,Ltd | ||
| English abbreviation (if any) | Topband | ||
| Legal representative | Wu Yongqiang | ||
II. Contact person and contact information
| Secretary of the Board of Directors | Representative of securities affairs | |
| Name | Wen Zhaohui | Zhang Yuhua |
| Address | Topband Industrial Park, Keji Second Road, Shiyan Sub-district, Bao'an District, Shenzhen | Topband Industrial Park, Keji Second Road, Shiyan Sub-district, Bao'an District, Shenzhen |
| Tel | 0755-26957035 | 0755-26957035 |
| Fax | 0755-26957440 | 0755-26957440 |
| wenzh@topband.com.cn | zhangyuhua@topband.com.cn |
III. Others
1. Company's contact information
Whether the Company's registered address, company office address and its postal code, company website and e-mail address have changed during the reporting period
□ Applicable ? Not applicable
The Company's registered address, company office address and its postal code, company website, and e-mail remainunchanged during the reporting period. For details, please refer to the Annual Report 2021.
2. Information Disclosure and Storage Location
Whether information disclosure and storage place has changed during the reporting period
□ Applicable ? Not applicable
The name of the information disclosure newspaper selected by the Company, the website address designated by the
China Securities Regulatory Commission to publish the semi-annual report, and the storage place for the Company'ssemi-annual report remain unchanged during the reporting period. For details, please refer to the Annual Report2021.
3. Other relevant information
Whether other relevant information has changed during the reporting period
□ Applicable ? Not applicable
IV. Main accounting data and financial indicators
Whether the Company is required to retroactively adjust or restate the accounting data of previous years
□ Yes ? No
| This reporting period | Same period last year | Y-o-y increase /decrease | |
| Operating income (yuan) | 4,228,003,137.57 | 3,644,045,612.40 | 16.02% |
| Net profit attributable to shareholders of listed companies (yuan) | 246,508,271.38 | 428,185,704.03 | -42.43% |
| Net profit attributable to the shareholders of the listed company for deduction of non-recurring profits and losses (yuan) | 204,656,056.10 | 319,714,520.44 | -35.99% |
| Net cash flow from operating activities (yuan) | 74,886,255.39 | -225,705,738.12 | 133.18% |
| Basic earnings per share (yuan/share) | 0.20 | 0.38 | -47.37% |
| Diluted earnings per share (yuan/share) | 0.20 | 0.37 | -45.95% |
| Weighted average ROE | 4.77% | 11.13% | -6.36% |
| At the end of the reporting period | End of the previous year | Increase or decrease at the end of the current year compared with the end of the previous year | |
| Total assets (yuan) | 10,174,791,588.35 | 9,606,992,402.39 | 5.91% |
| Net assets attributable to shareholders of listed companies (yuan) | 5,285,706,108.91 | 5,028,315,406.63 | 5.12% |
V. Differences in accounting data under domestic and foreign accounting standards
1. Differences in net profit and net assets between financial reports disclosed in accordance withInternational Accounting Standards and those disclosed in accordance with PRC GAAP at the same time
□ Applicable ? Not applicable
There is no difference in net profit and net assets between financial reports disclosed in accordance withInternational Accounting Standards and those disclosed in accordance with PRC GAAP during the reporting period.
2. Difference between the net profit and net assets in the financial reports disclosed in accordance with bothforeign accounting standards and Chinese accounting standards at the same time
□ Applicable ? Not applicable
There is no difference in net profit and net assets between financial reports disclosed in accordance with foreignaccounting standards and those disclosed in accordance with PRC GAAP during the reporting period.VI. Items and amount of non-recurring profits and losses
? Applicable □ Not applicable
Unit: yuan
| Items | Amount | Description |
| Profits and losses on disposal of non-current assets (including the write-off portion of the provision for asset impairment) | -378,109.64 | |
| Government subsidies included in the current profits and losses (except those that are closely related to the normal business of the Company, conform to national policies and regulations and are continuously enjoyed in a fixed or quantitative manner according to certain standards) | 14,625,339.37 | |
| Profits and losses due to fair value changes arising from the holding of tradable financial assets and liabilities, as well as the investment income from the disposal of tradable financial assets and liabilities and available-for-sale financial assets, except for the effective hedging business related to the normal business of the Company | 31,603,205.99 | |
| Other non-operating income and expenses other than those mentioned above | -1,217,111.70 | |
| Other items of profits and losses that meet the definition of non-recurring profits and losses | 241,902.47 | Financing income |
| Minus: amount affected by income tax | 2,794,910.05 | |
| Amount affected by minority shareholders' equity (after tax) | 228,101.16 | |
| Total | 41,852,215.28 |
Details of other items of profits and losses that conform to the definition of non-recurring profits and losses:
□ Applicable ? Not applicable
None.Explanation of defining the items of non-recurring profits and losses listed in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public - Non-recurring Profits andLosses as recurring items of profits and losses
□ Applicable ? Not applicable
The items of non-recurring profits and losses listed in the Explanatory Announcement No. 1 on InformationDisclosure for Companies Offering Securities to the Public — Non-recurring Profits and Losses are not defined asthe recurring profits and losses by the Company.
Section III Discussion and Analysis of the ManagementI. Main businesses during the reporting period
(I) Main business and productsThe Company mainly engages in R&D, production and sales of intelligent control system solutions, i.e.,providing diversified customized solutions for industries of home appliances, tools, new energy, industrial andintelligent solutions, etc., with the "four electrics and one network" technology of electric control, motor, battery,power supply and IoT platform as its core. The Company is a global leading provider of intelligent controltechnology, a pioneer of intelligent control solutions for the home appliances and tool industries, and an innovativeleader in new energy, industrial and intelligent solutions.
1. Core technology of the Company: "four electrics and one network": electric control, motor, battery,power supply technology and IoT platform.
1.1 Electric control technology. The electric control technology is a technology to achieve intelligent controlwith the microcomputer as the core, including: sensing technology, power electronics, signal processing technology,communication technology, interactive technology, power and energy conversion technology, electromagneticcompatibility, etc. The Company has established hundreds of electric control technology platforms, whichcompletely cover the demand range of products in four major industries.
1.2 Motor technology. The motor technology is a technology that converts electrical energy into kinetic energy.The Company has built dozens of advanced motor technology platforms around various types of motors such as
Intelligent controlbusiness application in
"five industries"
Home
appliancesTool
| Tool | New energy | Industry |
Intelligentsolutions
IntelligentsolutionsCore technology layout
Core technology layout
of "four electrics and
one network"
| Electric control technology | Motor technology | Battery technology | Power source technology |
IoT platform
brushless DC motors (BLDC), stepper motors, and servo motors. Among them, the Company takes the lead in thetool motor and motion control industries. Among them, the Company takes the lead in the tool motor and motioncontrol industries. Motion control refers to the real-time control of the position, speed and direction of mechanicalmoving parts, so that such mechanical moving parts move in accordance with the expected trajectory and thespecified motion parameters. The motion control system is generally composed of man-machine interactioninterface, controller, driver, motor and other components, which are the core components of intelligentmanufacturing equipment, and is the premise and basis for the realization of intelligent manufacturing.
1.3 Battery technology. The battery technology is a technology for energy storage and management. Its coretechnologies include battery material application technology, cell design and manufacturing technology and batterysystem integration technology. Battery material application technology includes related application technologies ofpositive and negative electrode materials, electrolytes and diaphragm. Cell design and manufacturing technologyincludes electrochemical architecture design, coating, lamination/winding, formation and other manufacturingtechnologies. Battery system integration technology includes a series of technologies such as battery assembly,thermal management, collision and leakage safety, accurate measurement of voltage/current/temperature signals,battery state estimation and cell balance. The technology spans many fields such as material science,electrochemistry, electronics and control engineering. After years of accumulation, the Company has developedcomplete technical capabilities of design, development, customization and production ranging from cell technology(CELL), battery management technology (BMS) to battery pack (PACK) system.
1.4 Power source technology. Power technology is a kind of electric energy conversion technology, whichcan transform the front-end input into the output required by the load safely, efficiently and intelligently. TheCompany has analog power, switching power and digital power technology platforms of different power levels andvarious types, which can provide charging and inversion solutions and various customized power solutions.
1.5 IoT platform. The IoT platform is a technology that integrates perception layer, connection layer andapplication layer, mainly including connection management, device management and application. The Companyhas formed a complete technical capability from IoT module, intelligent terminal to APP, and PaaS IoT platform,and has developed solutions for more than ten business scenarios.
2. Main products of the Company: Customized system solutions for five industries, namely homeappliances, tools, new energy, industry and intelligent solutions.
2.1 Intelligent control of home appliances
The Company provides brand customers in the home appliance industry with customized product concepts,design, development, manufacturing and delivery services, including the master control, power control, motor driveand control, display control, temperature control, and voice control of home appliances.
2.2 Tool intelligent control
The tool industry mainly includes electric tools, garden tools and other professional tools. The Companyprovides customized services from the product concept, design, development to manufacturing and delivery forbrand customers in the tool industry. The business covers the electric control, motor and battery, and the productforms include not only the controller, motor, battery pack BMS but also the module and the complete machine.
2.3 New energy business
New energy business is mainly oriented to energy storage and green commuting, in which products and systemsolutions including inverters, controllers, battery cells, battery management systems, battery packs, battery swapcabinets, PACK and motor control are provided for fields such as household energy storage, portable energy storage,energy storage of communication base stations, motorcycles and tricycles, other special vehicles, new energyvehicles and IoT.
2.4 Industry
In the industrial control industry, the Company's main business includes R&D, production, sales of drive andcontrol products with focus on special industrial intelligent control solutions. The Company mainly providescontrollers, drives and motors for downstream automation equipment customers, which are widely used in 3Celectronics, photovoltaic, battery, robotics, medical equipment, semiconductor equipment, textile machinery,packaging machinery, etc. We are committed to helping automation equipment manufacturers improve equipmentdesign performance, reduce equipment manufacturing costs, and speed up the development of new equipment.
2.5 Intelligent solutions
The intelligent solution is the integrated intelligent solution of "innovative products + AIoT platform +customized service" for the "clothing, food, housing and transportation", "industry, catering, hotel, and park" andother scenarios with the Company's AIoT (Artificial Intelligence of Things) technology platform and intelligentproduct innovation capabilities as the core.
(II) Industry situation
1. Basic situation
The intelligent control industry, in which the Company is involved, is a long-term thriving industry, with a
trillion-dollar market, and its applications cover all walks of life, such as the household appliances, smart home,intelligent building, power tools, robots, industry and automation, automotive electronics, new energy and medicalequipment. The intelligent controller, the main product of the industry, is a high-tech product produced with theautomatic control technology and computer technology as the core, incorporating the sensor technology,microelectronic technology and power electronics technology and many other technical categories, and acting asthe "nerve center" and "brain" in the industry.
An intelligent and low-carbon society is the irresistible trend, with a long-term, continuous, wide-ranging andfar-reaching change, which will deeply affect modern life and change the form of products. The industry is now ata crossroad of intelligence, scenario-based, green and low carbon. With the deepening of social intelligence, thecontinuous integration and development of intelligent control technology and 5G, IoT, artificial intelligence, cloudcomputing and other new technologies, the accelerated iteration of various products, the constant upgrading of theintelligence level, and the emerging of the new products, new formats and new models, more new opportunities willbe created for the intelligent control products in various intelligent and low-carbon application scenarios such asclothing, food, housing and transportation, enterprises, cities, etc., making the intelligent controller industry highlyprospective.
2. Position in the industry
The Company is a global leading provider of intelligent control solutions, focusing on the field of intelligentcontrol, adhering to the value concept of "agile innovation partner" and driving its development with technologicalinnovation. It has formed a comprehensive technical system of "four electrics and one network" (electric control,motor, battery, power supply and IoT platform) to provide customized intelligent control solutions for downstreamcustomers in industries such as home appliances, tools, new energy, industry and intelligent solutions. Centering onthe three unique capabilities, i.e. "platform-based technological innovation capability, partnership customer servicecapability and systematic quick response capability", the Company keeps forging ahead and has established closecooperative relations with a large number of industry heading customers. It has now become a leader in intelligentcontrol solutions in home appliance and tool industries and an innovation leader in new energy, industry andintelligent solutions.II. Core competitiveness analysis
1. Systematic rapid response capability. With the development of ICT technology and the accelerated speed
of global innovation iteration, the services provided by the Company to customers increasingly need to be moreagile in terms of operation. Based on a deep understanding of the intelligent control business, the Company hascreated a strong platform system from the implementation of IPD concept of R&D and design process, ISC reformof core customers of supply chain system, laboratory and quality assurance system, and intelligent manufacturingplatform system, building a customer-centered process-oriented organization and internalizing the strengths andcapabilities of the Company into agile capabilities of operation, thus further strengthening the differentiatedcapabilities of rapid innovation and response, and guarantee sustainable and high-speed growth of the Company.
2. Platform-based technological innovation capability. With the technology as DNA and the innovation asthe gene of development, the Company has formed a unique innovation leading capability. The Company hasaccumulated and formed the most complete technology platform in the industry, with capabilities for in-depthunderstanding of various control mechanisms, independent implementation and industry leading, covering allaspects of core technologies of intelligent control integration solutions, such as: intelligent control algorithms, motorelectric control, sensing, man-machine interaction, image recognition, power technology, Android technology,temperature control technology, heating, cooling, etc. The Company has the most abundant product lines in itsindustry, each of which has accumulated and formed a complete, mass-production-proven product platform coveringwhite home appliances, small home appliances, power tools, gardening tools, intelligent hardware, smart campus,consumer electronics and other fields, and can quickly provide customers with the best and most guaranteedcustomized solutions. In addition, the Company has a unique overall solution capacity of "intelligent controller +high efficiency motor + lithium battery" in industry, further strengthening the capacity of the Company to lead thetechnology.
3. Partnership-based customer service capability. The Company takes "agile innovation partner" as itstechnology value proposition, and develops partnership with customers with the development concept of value co-creation and value co-win. Relying on the advantage of leading technology capacity and based on the deep insightof customer needs, the Company has formed the partnership-based customer service capacity with the fastestresponse and the most powerful value creation, established in-depth cooperation partnership with domestic andforeign excellent brand customers in various business fields, and formed a good reputation and brand reputation inthe industry. The partnership-based customer service capacity is widely recognized and praised by customers.
III. Main business analysisIn the first half of 2022, the pandemic in many places in China repeated. In the first quarter, two waves ofpandemics occurred in Shiyan Sub-district, Bao'an District, Shenzhen, where the Company's headquarters is located,affecting the production and operation to a certain extent. In the second quarter, the pandemic in Shanghai and itssurrounding areas had a wider impact on customers in the Yangtze River Delta and on the semiconductor supply tovarying degrees. Under the background of the state's policy of "Adopting vigorous measures to prevent import ofcases and resurgence of infections" and implementing the scientific, accurate and dynamic zero-COVID policy, theCompany's production and operation faced many external challenges, such as multiple difficulties in transportation,personnel, and materials. During the reporting period, all employees of the Company united sincerely, took theinitiative and did their best to organize the resumption of work and production under the premise of ensuring safety.We took advantage of the production capacity layout in many places in China and overseas factories, to ensure thetimely delivery of customer orders to the greatest extent by optimizing the allocation of production capacity andincreasing the stocking of scarce materials.With the joint efforts of all Topband staff, the Company achieved operating incomes of 4.228 billion yuanduring the reporting period, a year-on-year increase of 16.02%, and net profits of 247 million yuan attributable toshareholders of the listed companies, a year-on-year decrease of 42.43%, and net profits of 205 million yuanattributable to shareholders of the listed companies after deduction of non-recurring profits and losses, a year-on-year decrease of 35.99%. Among them, various indicators such as revenue and profit in the second quarter havebeen significantly improved compared with the first quarter. In the second quarter, the operating incomes increasedby 26.37% from the previous quarter, and the net profit attributable to shareholders of the listed companies afterdeduction of non-recurring gains and losses reached 147 million yuan, an increase of 155% from the first quarter.(I) During the reporting period, the operating income was 4.228 billion yuan, a year-on-year
increase of 16.02%. The main reasons are as follows:
The future belongs to an intelligent society, and all walks of life need controllers for people's necessities.Secondly, the intelligent control industry is showing a trend of focusing on the head companies and transferring toa professional third party. During the reporting period, due to the impact of the pandemic, the Russian-Ukrainianwar and the year-on-year base, the growth rate of the basic business (home appliances and tool units) slowed down.As the Company's growth business, the new energy unit achieved rapid growth. Overseas business progressedsmoothly, and the proportion of export revenue increased to over 60% during the reporting period. New
breakthroughs were made in each business segment in terms of product categories and customers.The business development in the first half of 2022 is as follows:
(1) Tool unit: the Company's basic business unit. In the first half of 2022, the sales revenue reached 1.607billion yuan, a year-on-year increase of 7.96%. The Company reserved a relatively rich product line in this unit,providing downstream customers with one-stop solutions covering controllers, motors, BMS, battery packs andcomplete machines. The focus of tool unit was mainly on power tools and garden tools, with a high downstreamconcentration. The world's top ten complete machine customers occupied the main market share, and companiesfrom Europe and the United States accounted for a relatively high market share in the terminal market. During thereporting period, affected by the economic prosperity of Europe and the United States, the growth rate slowed down.In the medium and long term, the application scenarios of tools are increasing, and there is still plenty of room forimproving the penetration rate in markets other than Europe and the United States. The industry will not change itscontinuous growth trend due to short-term factors such as the pandemic. With the increase in the rate of lithiumbattery and cordless application, and the increase in the volume of product platforms and leading customers, theCompany's market share in this unit will further increase.
(2) Home appliance unit: the Company's basic business unit. In the first half of 2022, the sales revenuereached 1.515 billion yuan, a year-on-year increase of 12.1%. The main reasons included the smooth developmentof big customers, the increase of the number and volume of customers,and the constant emergence of innovativeproducts, e.g. the rapid growth of innovative intelligent devices, commercial air conditioning,frequency conversionair conditioning，kitchen appliances, purification products and service robots which opened up the growth spaceof the home appliance unit. For the traditional business, the Company will strengthen the ability to gain insight intomarket opportunities, deeply understand customer needs, improve its resource integration ability and internaloperational efficiency, and strive for more orders to ensure its scale advantages. For innovative business, we willmake use of the core advantages of technological innovation to incubate and market innovative productscontinuously so as to achieve both commercial success and rapid growth.
(3) New energy unit: The Company's growth business. In the first half of 2022, the sales revenue reached 858million yuan, a year-on-year increase of 61.23%. Focusing on energy storage, green commuting and other fields,the unit is higher than the overall growth rate of the Company. The Company's new energy business has rich productlines and diverse product forms. In the field of new energy, we can provide solutions for inverters, cells, batterymanagement systems, battery packs, battery swap cabinets, PACK and other products and complete systems.
Relying on years of technology accumulation and stable quality assurance, we can open the market quickly with theadvantages of customized solutions. Due to the historical industry opportunity of low carbon plus the overseasenergy shortage caused by war and severe weather, the overseas market demand for energy and household energystorage is rather strong in the first half of 2022, and it is expected thatthe trend of high growth will continue.
(4) Industrial unit: In the first half of 2022, the sales revenue reached 135 million yuan, a year-on-yeardecrease of 18.82%. The Company mainly provides controllers, drives and motors for downstream automationequipment customers, which are widely used in 3C electronics, robots, medical device, photovoltaic equipment,semiconductor equipment, textile machinery, packaging machinery, etc. During the reporting period, the economicsituation and pandemic had a certain impact on the demand of industrial automation industry. By adopting thestrategy of focusing on key industries and key customers, the Company made breakthroughs in photovoltaicindustries and other industries, with a small year-on-year growth of servo products. We are committed to helpingautomation equipment manufacturers improve equipment design performance, reduce equipment manufacturingcosts, and speed up the development of new equipment. Benefiting from domestic substitutions and intelligentupgrading of factories, the unit will usher in a new boom cycle in the future.
(5) Intelligent solutions: The intelligent solution is the integrated solution of "innovative products + AIoTplatform + customized service" for the "clothing, food, housing and transportation", "industry, catering, hotel, andpark" and other scenarios with the Company's AIoT (Artificial Intelligence of Things) technology platform andintelligent product innovation capabilities as the core. In the first half of 2022, the sales revenue reached 83 millionyuan, a year-on-year increase of 5.04%.
(II) During the reporting period, the net profits attributable to shareholders of the listed companies afterdeduction of non-recurring gains and losses reached 205 million yuan, a year-on-year decrease of 35.99%.The main reasons are as follows:
1. Supply-side impact: Material cost was an important part of the Company's main business cost. In 2021,due to the pandemic and other external influences, the cost of raw materials such as chips had risen sharply, andgradually stabilized in the first half of 2022, but the prices of imported semiconductors and transistors were at highlevel, without significant drop. In the first half of 2022, the external environment was turbulent. In order to ensurethe safety of delivery, the Company reserved a certain amount of inventories, consumed some high-pricedinventories in the second quarter and counted them into cost accordingly. During the reporting period, the integratedgross margin of products was 19.08%, an increase of 0.07 percentage points from the previous quarter and a year-
on-year decrease of 5.04 percentage points.
2. Influence of equity incentive expenses: During the reporting period, the accrued equity incentive expensesincreased by approximately 71 million yuan on a year-on-year basis.
3. Three period expenses (selling expenses, R&D expenses and management expenses): After thededuction of equity incentive expenses, the three expenses increased by about 150 million yuan year-on-year. Themain reasons were that the Company's business was in a period of rapid development, requiring more R&DInvestments on new projects. Meanwhile, under the development strategy of multi-regionalization and closecustomer relationship, overseas bases such as Romania and Mexico were still in the early stage of investment, as aresult, selling expenses increased year-on-year. With the promotion of these strategies, the ability to serve customersnearby can be improved, and the impact of political risks such as trade wars and the pandemic on company operationcan be also reduced.
(III) During the reporting period, the net profits attributable to shareholders of the listed companiesreached 247 million yuan, a year-on-year decrease of 42.43%. The main reasons are as follows:
In addition to the above factors affecting the net profits attributable to shareholders of the listed companiesafter deduction of non-recurring gains and losses, the gain from fair value changes from external investment duringthe reporting period decreased by approximately 65 million yuan year-on-year.Year-on-year changes in key financial data
Unit: yuan
| This reporting period | Same period last year | Year-on-year increase or decrease | Reasons for change | |
| Operating income | 4,228,003,137.57 | 3,644,045,612.40 | 16.02% | Compared with the same period of last year, it increased by 583.96 million yuan or 16.02% during the reporting period. The main reason is that the Company increased efforts in market development and expanded the sales scale during the period. |
| Operating cost | 3,421,434,029.61 | 2,765,295,741.39 | 23.73% | Compared with the same period of last year, it increased by 656.14 million yuan or 23.73% during the reporting period. The main reason is that the increase in revenue during the period resulted in raised costs. |
| Selling expenses | 125,180,825.48 | 76,889,884.59 | 62.81% | Selling expenses: Compared with the same period of last year, they increased by 48.29 million yuan or 62.81% during the reporting period. The main reason is that the increase in employees during the period resulted in an increase in salary expenses, and the accrued expenses of restricted stock also increased compared with the same period last year. |
| Management | 160,894,026.46 | 94,842,819.69 | 69.64% | Management expenses: Compared with the same period of |
| expenses | last year, they increased by 66.05 million yuan or 69.64% during the reporting period. The main reason is that the increase in employees during the period resulted in an increase in salary expenses, and the accrued expenses of restricted stock also increased compared with the same period last year. | |||
| Finance expenses | -63,616,375.63 | 53,761,157.16 | -218.33% | Financial expenses: Compared with the same period of last year, they decreased by 117.38 million yuan or 218.33% during the reporting period. The main reason is that the increase in the exchange rate of the US dollars against the RMB during the period resulted in a large exchange gain, while it is ascribed to the exchange loss in the same period of last year. |
| Income tax expenses | 17,807,321.21 | 45,639,842.16 | -60.98% | Income tax expenses: Compared with the same period of last year, they decreased by 27.83 million yuan or 60.98% during the reporting period. The main reason is that the deferred tax expense accrued due to the change in fair value of the investment held on ORVIBO increased compared with the same period of last year, but there is no such effect in this reporting period. |
| R&D investment | 352,138,564.64 | 233,628,312.83 | 50.73% | R&D investment: Compared with the same period of last year, it increased by 118.51 million yuan or 50.73% during the reporting period. The main reason is that the Company's R&D personnel and the accrued expenses for the equity incentive plan greatly increased compared with the same period of last year. |
| Net cash flow from operating activities | 74,886,255.39 | -225,705,738.12 | 133.18% | Compared with the same period of last year, it increased by 300.59 million yuan or 133.18% during the reporting period. The main reason is the increase in cash received from sales of goods and labor services provided during the period. |
| Net cash flow from investment activities | -487,956,696.27 | -409,322,535.05 | -19.21% | Compared with the same period of last year, it decreased by 78.63 million yuan or 19.21% during the reporting period. The main reason is that the cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets increased compared with the same period of last year. |
| Net cash flow from financing activities | 230,261,666.20 | 748,918,536.69 | -69.25% | Compared with the same period of last year, it decreased by 518.66 million yuan or 69.25% during the reporting period. The main reason is that the capitals raised through non-public offering of shares were credited into account in the same period last year, and there is no such effect in this reporting period. |
| Net increase in cash and cash equivalents | -162,322,238.96 | 87,547,923.94 | -285.41% |
Significant changes in the Company's profit composition or profit sources during the reporting period
□ Applicable ? Not applicable
There was no significant change in the Company's profit composition or profit source during the reporting period.Composition of operating income
Unit: yuan
| This reporting period | Same period last year | Year-on-year increase or decrease | |||
| Amount | Proportion in operating income | Amount | Proportion in operating income | ||
| Total operating income | 4,228,003,137.57 | 100% | 3,644,045,612.40 | 100% | 16.02% |
| By industry | |||||
| Intelligent control electronics industry | 4,228,003,137.57 | 100.00% | 3,644,045,612.40 | 100.00% | 16.02% |
| By product | |||||
| Tool | 1,606,784,503.47 | 38.00% | 1,488,294,121.01 | 40.84% | 7.96% |
| Home appliances | 1,515,196,016.05 | 35.84% | 1,351,595,006.58 | 37.09% | 12.10% |
| New energy | 858,103,466.53 | 20.30% | 532,217,782.45 | 14.61% | 61.23% |
| Industry | 135,322,059.03 | 3.20% | 166,694,953.58 | 4.57% | -18.82% |
| Intelligent solutions | 83,117,293.53 | 1.97% | 79,127,608.68 | 2.17% | 5.04% |
| Other | 29,479,798.96 | 0.70% | 26,116,140.10 | 0.72% | 12.88% |
| By region | |||||
| Domestic | 1,568,861,062.41 | 37.11% | 1,550,764,762.74 | 42.56% | 1.17% |
| Foreign | 2,659,142,075.16 | 62.89% | 2,093,280,849.66 | 57.44% | 27.03% |
The situation of industries, products or regions accounting for more than 10% of the Company's operating incomeor operating profit? Applicable □ Not applicable
Unit: yuan
| Operating income | Operating cost | Gross profit rate | Increase or decrease of operating income over the same period of last year | Increase or decrease of operating costs over the same period of last year | Increase or decrease of gross profit rate over the same period of last year | |
| By industry | ||||||
| Intelligent control electronics industry | 4,228,003,137.57 | 3,421,434,029.61 | 19.08% | 16.02% | 23.73% | -5.04% |
| By product | ||||||
| Tool | 1,606,784,503.47 | 1,274,042,349.51 | 20.71% | 7.96% | 17.58% | -6.48% |
| Home appliances | 1,515,196,016.05 | 1,257,127,675.01 | 17.03% | 12.10% | 15.83% | -2.67% |
| New energy | 858,103,466.53 | 714,351,510.60 | 16.75% | 61.23% | 76.19% | -7.07% |
| By region | ||||||
| Domestic | 1,568,861,062.41 | 1,280,900,681.66 | 18.35% | 1.17% | 10.92% | -7.18% |
| Foreign | 2,659,142,075.16 | 2,140,533,347.95 | 19.50% | 27.03% | 32.91% | -3.56% |
The Company's main business data for the most recent year adjusted according to the caliber at the end of thereporting period when the statistical caliber of the Company's main business data is adjusted in the reporting period
□ Applicable ? Not applicable
Reasons for the change of more than 30% in relevant data? Applicable □ Not applicable
In the first half of 2022, the Company's new energy revenue increased by 61.23% year-on-year, which is mainlydue to the historical opportunity of low carbon and the increased demand for energy and energy storage productscaused by overseas energy crisis.IV. Analysis of non-main business
□ Applicable ? Not applicable
V. Analysis of assets and liabilities
1. Significant changes in asset composition
Unit: yuan
| End of the current year | End of last year | Increase or decrease of proportion | Description of major changes | |||
| Amount | Proportion in total assets | Amount | Proportion in total assets | |||
| Monetary capital | 1,592,155,704.45 | 15.65% | 1,767,580,056.07 | 18.40% | -2.75% | |
| Accounts receivable | 2,383,927,027.15 | 23.43% | 2,188,161,465.48 | 22.78% | 0.65% | |
| Inventory | 2,200,490,689.46 | 21.63% | 2,184,402,766.04 | 22.74% | -1.11% | |
| Investment property | 107,656,655.34 | 1.06% | 86,975,114.31 | 0.91% | 0.15% | |
| Long-term equity investment | 24,629,564.82 | 0.24% | 26,119,127.82 | 0.27% | -0.03% | |
| Fixed assets | 1,720,571,118.72 | 16.91% | 1,299,517,887.54 | 13.53% | 3.38% | Fixed assets: Compared with the same period of last year, they increased by 421.05 million or 32.40% during the reporting period. The main reason is that during the period, the Operation Center Project in Ningbo East China constructed was available and transferred from the status of construction in progress to fixed assets. |
| Construction in progress | 143,094,482.19 | 1.41% | 495,248,025.93 | 5.16% | -3.75% | Project under construction: Compared with the beginning of the period, it decreased by 352.15 million or 71.11% during the reporting period. The main reason is that during the period, the Operation Center Project in Ningbo East China constructed was available and transferred from the |
| status of construction in progress to fixed assets. | ||||||
| Right-of-use assets | 55,212,987.55 | 0.54% | 58,168,151.88 | 0.61% | -0.07% | |
| Short-term loans | 724,668,584.75 | 7.12% | 409,531,107.26 | 4.26% | 2.86% | Short-term loans: Compared with the beginning of the period, they increased by 315.14 million or 76.95% during the reporting period. The main reason is that the short-term loans undue during the reporting period increased compared with the beginning of the period. |
| Contractual liabilities | 140,315,780.40 | 1.38% | 93,328,006.70 | 0.97% | 0.41% | Contractual liabilities: Compared with the beginning of the period, they increased by 46.99 million or 50.35% during the reporting period. The main reason is that the advance received on contract increased compared with the same period of last year. |
| Long-term loans | 450,511,381.65 | 4.43% | 475,020,000.00 | 4.94% | -0.51% | |
| Lease liabilities | 38,645,239.64 | 0.38% | 40,290,402.14 | 0.42% | -0.04% |
2. Major overseas assets
? Applicable □ Not applicable
Unit: yuan
| Asset details | Reasons of formation | Asset size | Location | Operation mode | Control measures to ensure the safety of assets | Earning position | Proportion of foreign assets to net assets of the Company | Whether there is a significant risk of impairment |
| Operation Center in India | Investment and establishment | 387,131,492.87 | Pune, India | R&D, production and sales | Financial supervision and external audit | 15,709,640.77 | 7.32% | No |
| Operation Center in Vietnam | Investment and establishment | 346,748,112.69 | Binh Duong, Vietnam | R&D, production and sales | Financial supervision and external audit | 56,121,933.02 | 6.56% | No |
3. Assets and liabilities measured at fair value
? Applicable □ Not applicable
Unit: yuan
| Items | Opening balance | Profits and losses from changes in fair value in the current period | Changes in cumulative fair value included in equity | Impairment accrued in the current period | Purchase amount in the current period | Amount sold in the current period | Other changes | Closing balance |
| Financial assets | ||||||||
| 1. Tradable financial assets (excluding derivative financial assets) | 214,999,336.74 | 31,603,205.99 | 170,117,413.30 | 73,000,000.00 | 47,000,000.00 | 272,602,542.73 | ||
| Subtotal of financial assets | 214,999,336.74 | 31,603,205.99 | 170,117,413.30 | 73,000,000.00 | 47,000,000.00 | 272,602,542.73 | ||
| Total of the above | 214,999,336.74 | 31,603,205.99 | 170,117,413.30 | 73,000,000.00 | 47,000,000.00 | 272,602,542.73 | ||
| Financial liabilities | 0.00 | 0.00 | ||||||
Contents of other changesNoneWhether there are significant changes in the measurement attributes of the Company's main assets during thereporting period
□ Yes ? No
4. Restricted asset rights by the end of the reporting period
See Sections X, VII and (LXXXI) of this report for details.VI. Investment analysis
1. General situation
? Applicable □ Not applicable
| Investment in the reporting period (yuan) | Investment amount in the same period of last year (yuan) | Range of change |
| 30,000,000.00 | 46,000,000.00 | -34.78% |
2. Major equity investment obtained during the reporting period
□ Applicable ? Not applicable
3. Major non-equity investment obtained during the reporting period
□ Applicable ? Not applicable
4. Investment in financial assets
(1) Securities investment
□ Applicable ? Not applicable
There was no securities investment during the reporting period.
(2) Derivatives investment
□ Applicable ? Not applicable
There was no derivative investment during the reporting period.
5. Usage of raised capitals
? Applicable □ Not applicable
(1) General use of raised capitals
? Applicable □ Not applicable
Unit: 10,000 yuan
| Year of raising capitals | Ways of raising capitals | Total amount of raised capitals | Total amount of raised capitals used in the current period | Total amount of raised capitals used | Total amount of raised capitals for change of purpose during the reporting period | Cumulative total amount of raised capitals with changed purposes | Cumulative total amount proportion of raised capitals with changed purposes | Total amount of unused raised capitals | Purpose and destination of unused raised capitals | Amount of raised capitals which have been idle for more than two years |
| 2019 | Public offering of convertible bonds | 56,543.65 | 2,753.63 | 41,554.13 | 0 | 0 | 0.00% | 14,989.52 | Temporary replenishment and deposit in the special account for raised capitals | 0 |
| 2021 | Non-public offering of shares | 103,684.71 | 16,997.93 | 51,537.8 | 61,000 | 61,000 | 58.83% | 52,146.91 | Temporary replenishment and deposit in the special account for raised capitals | 0 |
| Total | -- | 160,228.36 | 19,751.56 | 93,091.93 | 61,000 | 61,000 | 38.07% | 67,136.43 | -- | 0 |
| General use of raised capitals | ||||||||||
| 1. Actual amount and time of arrival of capitals raised | ||||||||||
the balance of the raised capitals account is 51.4254 million yuan (including interest income).
(2) Situation of projects committed when raising capitals
? Applicable □ Not applicable
Unit: 10,000 yuan
| Committed investment projects and investment direction of over raised capitals | Whether the project has been changed (including some changes) | Total committed investment of raised capitals | Total investment after adjustment (1) | Amount invested during the reporting period | Accumulated investment by the end of the period (2) | Investment progress by the end of the period (3)=(2)/(1) | The date when the project is ready for use | Benefits achieved during the reporting period | Whether the expected benefits are achieved | Where there is any significant change in the feasibility of the project |
| Committed investment projects | ||||||||||
| Operation Center in Topband East China | No | 56,543.65 | 56,543.65 | 2,753.63 | 41,554.13 | 73.49% | Not applicable | No | ||
| Topband Huizhou No. 2 Industrial Park Project | No | 73,684.71 | 12,684.71 | 4,539.87 | 35.79% | Not applicable | No | |||
| Topband Nantong Industrial Park Phase-I Stage-1 Project | No | 61,000 | 16,997.93 | 16,997.93 | 27.87% | Not applicable | No | |||
| Replenish the Company's working capital | No | 30,000 | 30,000 | 30,000 | 100.00% | Not applicable | No | |||
| Subtotal of committed investment projects | -- | 160,228.36 | 160,228.36 | 19,751.56 | 93,091.93 | -- | -- | -- | -- | |
| Investment direction of over raised capitals | ||||||||||
| None | ||||||||||
| Total | -- | 160,228.36 | 160,228.36 | 19,751.56 | 93,091.93 | -- | -- | 0 | -- | -- |
| Situation and reason of failing to reach the planned progress or expected income (by specific project) | None | |||||||||
| Description of major changes in project feasibility | None | |||||||||
| Amount, use and progress of over raised capitals | Not applicable | |||||||||
| Change of implementation location of investment projects with raised capitals | Applicable | |||||||||
| Applicable | ||||||||||
| 1. On January 8, 2022, the Company held the 18th Meeting of the 7th Board of Directors, deliberated and passed the Proposal on Implementation Mode, Subject and Location of Changes in Some Capital-raising Projects, and agreed that the Company | ||||||||||
| should change the implementation subject, location and mode of the lithium battery business in the planned project. Specifically, the implementation place was changed from Huizhou, Guangdong Province to Nantong, Jiangsu Province. | |
| Adjustment of implementation mode of investment projects with raised capitals | Applicable |
| Applicable | |
| 1. On January 8, 2022, the Company held the 18th Meeting of the 7th Board of Directors, deliberated and passed the Proposal on Implementation Mode, Subject and Location of Changes in Some Capital-raising Projects, and agreed that the Company should change the implementation subject, location and mode of the lithium battery business in the planned project. Specifically, the implementation mode was changed from the land acquisition for building construction to the direct purchasing of building with infrastructure constructed. | |
| Upfront investment and replacement of investment projects with raised capitals | Applicable |
| 1. The Company invested 26.2348 million yuan in advance in the Operation Center Project in Topband East China with self-raised capitals. Ruihua Certified Public Accountants (Special General Partnership) conducts a special audit on the above matters, and issues the Authentication Report on the Report of Shenzhen Topband Co., Ltd. on the Investment Projects with Self-raised Capitals in Advance (RHHZ [2019] No. 48250027). On July 25, 2019, the 25th Meeting of the 5th Board of Directors of the Company deliberated and passed the Proposal on Using Raised Capitals to Replace Self-raised Capitals Invested in Advance. As of June 30, 2021, the Company has completed the replacement of self-raised capitals invested in advance. 2. The Company invested 45.3987 million yuan in Topband Huizhou No. 2 Industrial Park Project with self-raised capitals in advance. Baker Tilly China Certified Public Accountants (Special General Partnership) conducted a special audit on the matter above, and issued the Authentication Report of Pre-investment of Shenzhen Topband Co., Ltd. in the Investment Project of Capitals Raised with Self-raised Capitals (TZYZ [2021] No. 31911). The 10th Meeting of the 7th Board of Directors was held to review and approve the Proposal on Replacement of Pre-invested Self-raised Capitals with Capitals Raised on June 8, 2021. As of June 30, 2022, the Company has completed the replacement of self-raised capitals invested in advance. The Board of Supervisors, Independent Directors and Sponsor Institutions of the Company all expressed their clear consent on the matter. | |
| Temporary replenishment of working capital with idle capitals raised | Applicable |
| 1. On February 15, 2022, the Company held the 20th Meeting of the 7th Board of Directors, deliberated and passed the Proposal on Temporarily Replenishing Working Capital with Some Idle Raised Capitals, and agreed that the Company should temporarily replenish working capital with no more than 840 million yuan of idle capitals raised, with a period of not more |
| than 12 months. As of June 30, 2022, 470 million yuan of temporary supplementary current assets have been used. The Board of Supervisors, Independent Directors and Sponsor Institutions of the Company all expressed their clear consent on the matter. | |
| Amount and reasons of the balance of raised capitals in project implementation | Not applicable |
| Purpose and whereabouts of unused raised capitals | 1. On February 15, 2022, the Company held the 20th Meeting of the 7th Board of Directors, deliberated and passed the Proposal on Temporarily Replenishing Working Capital with Some Idle Raised Capitals, and agreed that the Company should temporarily replenish working capital with no more than 840 million yuan of idle capitals raised, with a period of not more than 12 months. As of June 30, 2022, 47,000 yuan of temporary supplementary current assets have been used. 2. On March 22, 2022, the Company held the 21st Meeting of the 7th Board of Directors, deliberated and passed the Proposal on Purchasing Cash Financial Products with Some Idle Raised Capitals and Self-own Capitals, and agreed that the Company should purchase short-term principal-protected bank financial products with no more than 100 million yuan of idle raised capitals and no more than 600 million yuan of self-own capitals. The capitals can be used on a rolling basis within the amount above. As of June 30, 2022, the Company has purchased no financial products with the idle raised capitals. The Board of Supervisors, Independent Directors and Sponsor Institutions of the Company all expressed their clear consent on the matter. 3. The remaining unused raised capitals are deposited in the Company's special account for raising capitals. |
| Problems or other situations in the usage and disclosure of raised capitals | None |
(3) Change of projects with raised capitals
? Applicable □ Not applicable
Unit: 10,000 yuan
| Changed projects | Original projects committed | Total amount of raised capitals to be invested in the changed project (1) | Actual investment during this reporting period | Actual accumulated investment by the end of the period (2) | Investment progress by the end of the period (3)=(2)/(1) | The date when the project is ready for use | Benefits achieved during the reporting period | Whether the expected benefits are achieved | Whether there was a significant change in the feasibility of the changed project |
| Topband Nantong Industrial | Topband Huizhou No. 2 Industrial Park | 61,000 | 16,997.93 | 16,997.93 | 27.87% | Not applicable | No |
| Park Phase-I Stage-1 Project | (Lithium Battery) Project | ||||||||
| Total | -- | 61,000 | 16,997.93 | 16,997.93 | -- | -- | 0 | -- | -- |
| Reasons for change, decision-making procedures and information disclosure (by specific projects) | Due to the rapid development of the Company's lithium battery business in recent years, the downstream market demand was rather strong. The Company originally planned to purchase land and build a factory to promote the lithium battery project, with a construction period of 2 years. However, in the Nantong Lithium Battery Project, the Company purchased an existing plant with infrastructure constructed, greatly shortening the construction period. In order to facilitate the expansion of the lithium battery business as soon as possible, the Company fully seized the market opportunities of the lithium battery industry and the new energy industry, enhanced its market competitiveness and operating performance, and through the comprehensive assessment, planned to change the implementation subject, location and mode of the lithium battery business in the original capital-raising project, so as to utilize the capitals raised efficiently. The Company, after holding the 18th (Interim) Meeting of the 7th Board of Directors, the 15th (Interim) Meeting of the 7th Board of Supervisors and the 1st Extraordinary General Meeting of Shareholders in 2022, deliberated and passed the Proposal on Implementation Mode, Subject and Location of Changes in Some Capital-raising Projects, to change the implementation mode, subject and location of the lithium battery business in the planned capital-raising project with the non-public offering of shares in 2021. The above content has been disclosed in strict accordance with the information disclosure requirements. | ||||||||
| Situation and reason of failing to reach the planned progress or expected income (by specific project) | Not applicable | ||||||||
| Description of major changes in the feasibility of the changed project | Not applicable | ||||||||
VII. Sale of major assets and equity
1. Sale of major assets
□ Applicable ? Not applicable
The Company did not sell any major assets during the reporting period.
2. Sale of major equity
□ Applicable ? Not applicable
VIII. Analysis of major holding and equity participating companies
? Applicable □ Not applicableSituation of major subsidiaries and equity participating companies with an impact of 10% or more on net profit ofthe Company
Unit: yuan
| Name of company | Company type | Main business | Registered capital | Total assets | Net assets | Operating income | Operating profit | Net profit |
| Huizhou Topband Electrical Technology Co., Ltd. | Subsidiary | R&D, production, sales, import and export of electronic parts and components | 300 million yuan | 4,153,807,245.87 | 1,509,053,369.27 | 2,846,172,700.16 | 98,044,717.93 | 86,580,642.11 |
| Topband （Vietnam) Co.,ltd | Subsidiary | R&D, production, sales, import and export of electronic parts and components | 12.5 million US dollars | 346,748,112.69 | 293,585,686.07 | 301,544,040.97 | 61,942,431.39 | 56,121,933.02 |
| Shenzhen Topband Battery Co., Ltd. | Subsidiary | R&D, production, sales, import and export of electronic parts and components | 50 million yuan | 1,073,972,032.58 | 671,219,273.91 | 506,513,724.74 | 42,330,611.62 | 35,968,469.78 |
Situation of acquisition and disposal of subsidiaries during the reporting period? Applicable □ Not applicable
| Name of company | Method of acquisition and disposal of subsidiaries during the reporting period | Impact on overall production and operations and results |
| Shenzhen Xiaoyou Aitu Innovation Technology Co., Ltd. | Newly established and acquired | No significant impact on the results of the Report |
| Shenzhen Yueshang Robot Co., Ltd. | Newly established and acquired | No significant impact on the results of the Report |
| Shenzhen Topband Motor Co., Ltd. | Newly established and acquired | No significant impact on the results of the Report |
Description of major shareholding companiesNone
IX. Situation of structured entity controlled by the Company
□ Applicable ? Not applicable
X. Risks faced by the Company and countermeasures
1. External risks such as the macro environment
The global epidemic will still make impact on economic activities before control, and trade frictions andgeopolitical tensions will also produce adverse influences on business confidence and investment. The Companymay continue to face an uncertain external environment, so we will further strengthen risk identification and controlfor various businesses and regions and adjust strategies timely to minimize external influences.
2. Risks of technology upgrading
The intelligent controller industry technology, as the main business of the Company, is developing rapidly withfast product upgrading and short life cycle. Although the Company continues to invest in R&D and owns a numberof invention and utility patents, there is still a risk that the technology will not be updated in time to meet marketdemand, or lag behind competitors in launching new products, resulting in a decline in the market share andprofitability of the Company. Considering that, the Company will continue to strengthen product and marketresearch, and improve its insight and planning capabilities.
3. Exchange rate risk
The Company's revenue from export sales accounts for more than half of total revenue. In order to cope withthe risk of exchange rate fluctuation, the Company will reduce and hedge foreign exchange risks bycomprehensively conducting RMB hedging business, international procurement and re-pricing of new product.
4. Other risks
There are many uncertainties in the current macro environment at home and abroad, and there are some factorsthat are unfavorable to the operation of the Company. For example, the shortage of raw materials, wide fluctuationsin prices and customer credit risk will increase the uncertainty of the Company's operation. Given that, the Companywill continue to strengthen raw materials tracking and analysis, improving the dynamic management level ofinventory, and strengthening customer credit risk management and control.
Section IV Corporate GovernanceI. Information on the annual and extraordinary general meetings of shareholders held duringthe reporting period
1. Information on the General Meeting of Shareholders during the reporting period
| Meeting session | Meeting type | Investor participation ratio | Meeting date | Date of disclosure | Meeting resolution |
| First Extraordinary General Meeting of Shareholders in 2022 | Extraordinary General Meeting of Shareholders | 31.74% | 2022/1/24 | 2022/1/25 | Reviewed and approved the Proposal on Implementation Mode, Subject and Location of Changes in Some Capital-raising Projects; |
| 2021 Annual General Meeting | Annual General Meeting of Shareholders | 31.27% | 2022/4/12 | 2022/4/13 | 1. Reviewed and approved the Proposal on 2021 Annual Report and Abstract; 2. Reviewed and approved the Proposal on 2021 Final Financial Report; 3. Reviewed and approved the Proposal on 2021 Profit Distribution Plan; 4. Reviewed and approved the Proposal on 2021 Work Report of the Board of Directors; 5. Reviewed and approved the Proposal on 2021 Work Report of the Board of Supervisors; 6. Reviewed and approved the Proposal on Remuneration of Company Directors in 2021; 7. Reviewed and approved the Proposal on Remuneration of Company Supervisors in 2021; 8. Reviewed and approved the Proposal on Application for Comprehensive Credit Line from Banks by the Company and Its Subsidiaries in 2022; 9. Reviewed and approved the Proposal on Renewing the Employment of Audit Institution in 2022; 10. Reviewed and approved the Proposal on Spinning off Shenzhen YAKO Automation Technology Co., Ltd. (Subsidiary) to List on the Growth Enterprise Market of Shenzhen Stock Exchange in Compliance with Relevant Laws and Regulations; 11. Reviewed and approved the Proposal on Spinning off Shenzhen YAKO Automation Technology Co., Ltd. (Subsidiary) for the Initial Public Offering of A Shares; 12. Reviewed and approved the Proposal on the Plan of Shenzhen Topband Co., Ltd. for Spinning Off of Its Subsidiary (Shenzhen YAKO Automation Technology Co., Ltd.) to List on the Growth Enterprise Market; 13. Reviewed and approved the Proposal on Spinning off Shenzhen YAKO Automation Technology Co., Ltd. (Subsidiary) to List on the Growth Enterprise Market of Shenzhen Stock Exchange in Compliance with Rules for the Spin-off of Listed Companies (For Trial Implementation); 14. Reviewed and approved the Proposal on Spinning off Shenzhen YAKO Automation Technology Co., Ltd. (Subsidiary) to List on the |
Growth Enterprise Market of Shenzhen Stock Exchange and toSafeguard the Legal Rights and Interests of Shareholders and Creditors;
15. Reviewed and approved the Proposal on Maintaining Independence
and Sustainable Operation Abilities;
16. Reviewed and approved the Proposal on Shenzhen YAKOAutomation Technology Co., Ltd. With Relevant Standard OperationCapacities;
17. Reviewed and approved the Proposal on the Description ofShenzhen YAKO Automation Technology Co., Ltd. (Subsidiary)Fulfilling the Completeness and Compliance of Legal ProceduresDuring the Spin-off Listing and Validity of Legal DocumentsSubmitted;
18. Reviewed and approved the Proposal on Authorizing the Board of
Directors and Authorized Persons to Fully Handle Matters RegardingSpin-off Listing of Shenzhen YAKO Automation Technology Co., Ltd.(Subsidiary) on the Growth Enterprise Market of Shenzhen StockExchange;
19. Reviewed and approved the Proposal on the Purpose, Commercial
Reasonableness, Necessity and Feasibility Analysis of the Spin-off;
20. Reviewed and approved the Proposal on Repurchase andCancellation of Some Restricted Stocks from Restricted StockIncentive Plan in 2021.
2. The preferred shareholders with restored voting rights request to convene an Extraordinary GeneralMeeting of Shareholders
□ Applicable ? Not applicable
II. Changes in directors, supervisors and senior executives of the Company
□ Applicable ? Not applicable
There were no changes in the Company's directors, supervisors and senior management during the reportingperiod. For details, please refer to the Annual Report 2021.III. Profit distribution and conversion of capital accumulation fund to share capital in thereporting period
□ Applicable ? Not applicable
The Company plans not to distribute cash dividends and bonus shares, nor to convert the accumulation fund toincrease the share capital within half a year.IV. Implementation of the Company's equity incentive plan, employee stock ownership planor other employee incentive measures
? Applicable □ Not applicable
1. Stock incentive
(1) Implementation of the stock option incentive plan in 2018 during the reporting periodOn March 18, 2022, the 21st Meeting of the 7th Board of Directors and the 17th Meeting of the 7th Board ofSupervisors deliberated and approved the Proposal on the Third Exercise Period of 2018 Stock Option IncentivePlan Meeting the Exercise Conditions and Exercisable Rights and the Proposal on Adjustment of the IncentiveObjects and the Number of Stock Options of 2018 Stock Option Incentive Plan. There were 543 incentive objectsin the third exercise period to exercise their rights independently and a total of 14,049,300 stock options meetingthe exercise conditions. Zhang Ran, Wu Mingli and other 20 incentive objects resigned from the Company due topersonal reasons. Due to the failure to meet conditions of stock incentive objects, their 324,000 stock options thathave been granted but not yet exercised had been canceled by the Company on June 2, 2022. In the stock optionincentive plan in 2018, the objects to be granted were reduced from 567 to 545.On April 26, 2022, the 25th Meeting of the 7th Board of Directors and the 21st Meeting of the 7th Board ofSupervisors reviewed and approved the Proposal on Adjusting the Exercise Price of the Stock Option Incentive Planin 2018. The 2021 annual equity distribution plan was implemented, and the exercise price was adjusted from 3.60yuan per share to 3.55 yuan per share accordingly.As of May 16, 2022, 14,049,300 stock options involving 543 incentive objects that meet the exercisingconditions has been exercised, increasing the Company's capital stock by 14.0493 million yuan.On June 2, 2022, upon review and confirmation by Shenzhen Branch of China Securities Depository andClearing Co., Ltd., 551,500 stock options that failed to meet the exercise conditions has been the canceled, and the2018 stock option incentive plan has been successfully implemented.For details of the implementation of the 2018 stock option incentive plan, please refer to the Company'sannouncements on Securities Times and http://www.cninfo.com.cn on March 22, 2022, April 27, 2022, and June 3,2022.
2) Implementation of the restricted stock incentive plan in 2021 during the reporting periodOn March 30, 2022, the 23rd (Interim) Meeting of the 7th Board of Directors and the 19th (Interim) Meetingof the 7th Board of Supervisors reviewed and approved the Proposal on Repurchase and Cancellation of SomeRestricted Stocks from Restricted Stock Incentive Plan in 2021. 10 employees including Wu Song and LuoQingshan, the incentive objects of the 2021 restricted stock incentive plan, resigned due to personal reasons, andthey no longer meet the conditions for stock incentive objects. Therefore, 221,000 restricted stocks that have been
granted to them but not been unlocked would be canceled by the Company. In the restricted stock incentive plan in2021, the objects to be granted were reduced from 1,224 to 1,214.For details of the implementation of the 2021 restricted stock incentive plan, please refer to the Company'sannouncements on Securities Times and http://www.cninfo.com.cn on March 31, 2022.
2. Implementation of employee stock ownership plan
□ Applicable ? Not applicable
3. Other employee incentives
□ Applicable ? Not applicable
Section V Environmental and Social Responsibility
I. Major environmental issues
Whether the listed companies and their subsidiaries were key pollutant discharging organizations announced bythe Environmental Protection Department
□ Yes ? No
Administrative punishment for environmental problems during the reporting period
| Name of company or subsidiary | Reason for punishment | Violation | Punishment result | Influence on production and operation of listed companies | Rectification measures of the Company |
| Not applicable | Not applicable | Not applicable | Not applicable | Not applicable | Not applicable |
Refer to other environmental information disclosed by key pollutant discharge companiesThere is no serious pollution in the production process of the Company. The Company has always paid specialattention to the social public image, and implemented environmental protection as an important part of its socialresponsibility, to ensure that industrial solid waste is effectively disposed of according to regulations, and the variouspollutants discharged meets the national environmental protection standards.The Company has passed the ISO14001:2015 Environmental Management System Certification, implementedthe supporting HSPMQC080000 Hazardous Substance Process Management System, and in terms of theidentification and evaluation of environmental factors, environmental monitoring and measurement management,environmental communication management, waste water, exhaust gas and solid waste treatment control, hazardoussubstances identification and control, prepared a series of procedural documents, so as to specify the Company'senvironmental protection system and responsibilities under the environmental management system. The passing ofthe system certification and the establishment of relevant supporting systems of the Company show that theCompany has realized institutionalized and operable arrangements in terms of environmental protection.Measures and effects taken to reduce carbon emissions during the reporting period
□ Applicable ? Not applicable
Reasons for not disclosing other environmental informationNot applicable
II. Social responsibilityNot applicable
Section VI Important MattersI. Completed commitments in the reporting period and uncompleted commitments within thetime limit by the end of the reporting period by the Company's actual controller, shareholders,related parties, acquirers, the Company and other committed related parties? Applicable □ Not applicable
| Reasons for commitments | Commitment Party | Commitment type | Commitment content | Commitment time | Commitment period | Performance |
| Commitments made during the initial public offering or refinancing | Wu Yongqiang | Commitments to horizontal competition | Mr. Wu Yongqiang, the actual controller of the Company, has promised that during the period of being the controlling shareholder and/or actual controller of the Company, he would not directly or indirectly engage in any business which was the same, similar or substantially competitive with the main business of the Company at present and in the future. | 2007/6/12 | Long-term effective | Fulfill the commitment strictly |
| Ji Shuhai | Commitments to horizontal competition | Ji Shuhai, a director of the Company as a shareholder, has promised not to directly or indirectly engage in any business which was the same, similar or substantially competitive with the main business of the Company at present and in the future in any way during his term of office. | 2007/6/12 | Long-term effective | Fulfill the commitment strictly | |
| All directors and senior executives of the Company | Other commitments | 1. I would not deliver benefits to other organizations or individuals free of charge or under unfair conditions and not damage the interests of the Company in other means. 2. I fully supported and cooperated with the Company in regulating the duty consumption behavior of directors and senior executives. Any duty consumption behaviors would occur within the scope necessary for fulfilling my duty to the Company. I strictly accepted the supervision and management of the Company to avoid extravagance or excessive consumption. 3. I would strictly abide by the relevant laws and regulations, the regulations and rules of the CSRC, the stock exchange and other regulatory institutions as well as the requirements of the Company's rules and regulations on the code of conduct of directors and senior executives. Besides, I would not use the Company's assets to engage in investment and consumption activities unrelated to the performance of my duties. 4. I would try my best to make the Company implement the compensation demand return measures. 5. I would work hard to link the | 2020/4/29 | On-going | Fulfill the commitment strictly |
| compensation system formulated by the Board of Directors or the Compensation Committee with the implementation of the Company's compensation return measures. At the same time, I would vote in favor of the compensation system proposal when the Board of Directors and the General Meeting of Shareholders of the Company deliberated (if I have voting right). 6. If the Company would implement the employee equity incentive in the future, I would fully support the Company to link the arrangement of exercise conditions of the employee incentive with the implementation of the Company's compensation return measures. At the same time, I would vote in favor of the employee equity incentive proposal when the Board of Directors and the General Meeting of Shareholders of the Company deliberated (if I have voting right). 7. If I violate the above commitments, I would make an explanation and apologize publicly at the General Meeting of Shareholders and the designated newspapers and magazines designated by the CSRC. I voluntarily accept the self-discipline supervision measures taken by the stock exchange and China Association for Public Companies. If my breach of the commitment causes losses to the Company or the shareholders, I shall be liable for compensation in accordance with the law. | |||||
| Wu Yongqiang | Other commitments | 1. I would not abuse the position of the controlling shareholder/actual controller to interfere with the operation and management activities of the Company beyond my power and would not infringe the Company's interests under any circumstances. 2. I would try my best to make the Company implement the compensation demand return measures. 3. I would work hard to link the compensation system formulated by the Board of Directors or the Compensation Committee with the implementation of the Company's compensation return measures. 4. I would work hard to link the exercise conditions (if any) of the corporate equity incentive to be published in the future with the implementation of the Company's compensation return measures. 5. I would support the relevant proposals related to the implementation of the Company's compensation return measures and would vote for them (if I have voting | 2020/4/29 | On-going | Fulfill the commitment strictly |
| right). 6. After the issuance of this commitment, if there are other requirements in the relevant provisions of the regulatory institution on the compensation return measures and its commitment and the above commitments could not meet the relevant requirements of the regulatory institution, I promise that I would issue a supplementary commitment in accordance with the relevant provisions at that time. 7. If I violate the above commitments, I would make an explanation and apologize publicly at the General Meeting of Shareholders and the designated newspapers and magazines designated by the CSRC. I voluntarily accept the self-discipline supervision measures taken by the stock exchange and China Association for Public Companies. If my breach of the commitment causes losses to the Company or the shareholders, I shall be liable for compensation in accordance with the law. | ||||||
| Wu Yongqiang | Other commitments | If Huizhou Topband, a wholly-owned subsidiary of Shenzhen Topband Co., Ltd., failed to bid for the land usage right of the plot DN-02-16 at the southeast of the intersection of Dongxin Avenue and Xing'an Road of Dongjiang High-tech Industrial Park in HZZK Hi-tech Industrial Development Zone to be used by "Huizhou Topband No. 2 Industrial Park Project" and Huizhou Topband was required to purchase or lease other lands while the Company would suffer from heavy losses, I would compensate for such losses (such as overpayment of land-transferring fees, rents). | 2020/7/30 | On-going | Fulfill the commitment strictly | |
| Equity incentive commitment | Peng Ganquan, Zheng Sibin, Ma Wei, Wen Zhaohui and Xiang Wei | Other commitments | I promise that I would not transfer all the Company's shares (including the shares obtained from exercise and other shares) within six months after the exercise of the stock option incentive plan in 2018. | 2022/5/16 | Six months after exercise | Fulfill the commitment strictly |
| Whether the commitment was fulfilled on schedule | Yes | |||||
| If the commitment was not fulfilled within the time limit, the specific reasons for the failure and the next work plan shall be explained in detail. | Not applicable | |||||
II. Non-operating capital occupation of listed companies by controlling shareholders and theirrelated parties
□ Applicable ? Not applicable
There was no non-operating capital occupation of listed companies by controlling shareholders and their relatedparties in the reporting period of the Company.III. External guarantee in violation of regulations
□ Applicable ? Not applicable
The Company had no external guarantee in violation of regulations during the reporting period.IV. Appointment and dismissal of the accounting firmWhether the semi-annual financial report has been audited
□ Yes ? No
The semi-annual report has not been audited.
V. Description of the "non-standard audit report" of the Accounting Firm in the reportingperiod by the Board of Directors and the Board of Supervisors
□ Applicable ? Not applicable
VI. Descriptions of the "non-standard audit report" in the previous year by the Board ofDirectors
□ Applicable ? Not applicable
VII. Matters related to bankruptcy reorganization
□ Applicable ? Not applicable
There were no matter related to bankruptcy reorganization during the reporting period.VIII. Litigation matters
Major litigation and arbitration matters
□ Applicable ? Not applicable
The Company had no major litigation and arbitration matters during the reporting period.Other litigation matters
□ Applicable ? Not applicable
IX. Punishment and rectification
□ Applicable ? Not applicable
X. Integrity condition of the Company, its controlling shareholders and actual controllers
□ Applicable ? Not applicable
XI. Major related transactions
1. Related transactions connected with the daily operation
□ Applicable ? Not applicable
The Company had no related transactions connected with daily operations during the reporting period.
2. Related transactions arising from acquisition and sale of assets or equity
□ Applicable ? Not applicable
The Company had no related transaction of acquisition or sale of assets or equity during the reporting period.
3. Related transactions of joint foreign investment
□ Applicable ? Not applicable
The Company had no related transaction of joint foreign investment during the reporting period.
4. Related creditor's right and debt transaction
□ Applicable ? Not applicable
The Company had no related creditor's right and debt transaction during the reporting period.
5. Transactions with associated financial companies
□ Applicable ? Not applicable
There was no deposit, loan, credit extension or other financial business between the Company and its relatedfinancial companies or between the related parties.
6. Transactions between financial companies controlled by the Company and related parties
□ Applicable ? Not applicable
There was no deposit, loan, credit or other financial business between financial companies controlled by theCompany and related parties.
7. Other major related transactions
? Applicable □ Not applicable
On January 13, 2022, the Company held the 19th Meeting of the 7th Board of Directors, reviewed and approvedthe Proposal on the Estimated Daily Related Transactions in 2022. As of the end of the reporting period, the contractamount or estimated amount of the Company's daily related transaction has been within the approved limit.Inquiries about the website for disclosing the interim report on significant related transactions
| Name of temporary announcement | Disclosure date of temporary announcement | Name of website for disclosing temporary announcement |
| Announcement on the Estimated Daily Related Transactions in 2022 | January 15, 2022 | http://www.cninfo.com.cn |
XII. Major contracts and their performance
1. Trusteeship, contracting and lease
(1) Trusteeship
□ Applicable ? Not applicable
The Company had no trusteeship during the reporting period.
(2) Contracting
□ Applicable ? Not applicable
The Company had no contracting during the reporting period.
(3) Lease
□ Applicable ? Not applicable
The Company had no lease during the reporting period.
2. Material guarantee
? Applicable □ Not applicable
Unit: 10,000 yuan
| External guarantee of the Company and its subsidiaries (excluding guarantee for subsidiaries) | |||||||||||
| Name of guarantee object | Date of disclosure of the relevant announcement of guarantee amount limit | Guarantee amount limit | Actual date of occurrence | Actual guarantee amount | Guarantee type | Collateral (if any) | Counter guarantee (if any) | Guarantee period | Whether it was completed | Whether the guarantee objects were related parties | |
| Not applicable | |||||||||||
| Guarantees of the Company for subsidiaries | |||||||||||
| Name of guarantee object | Date of disclosure of the relevant announcement of guarantee amount limit | Guarantee amount limit | Actual date of occurrence | Actual guarantee amount | Guarantee type | Collateral (if any) | Counter guarantee (if any) | Guarantee period | Whether it was completed | Whether the guarantee objects were related parties | |
| Ningbo Topband | 2019/1/12 | 19,000 | 0 | Joint liability guarantee | The tentative guarantee period shall not exceed 5 years from the date of signing the formal guarantee agreement | No | No | ||||
| Ningbo Topband | 2020/10/20 | 22,000 | 2020/11/5 | 22,000 | Joint liability guarantee | The tentative guarantee period shall not exceed 5 years from the date of signing the formal guarantee agreement | No | No | |||
| Total amount of approved guarantee for subsidiaries at the end of the reporting period (B3) | 41,000 | Total actual balance of guarantee for subsidiaries at the end of the reporting period (B4) | 22,000 | ||||||||
| Guarantee of the subsidiary to its subsidiary | |||||||||||
| Name of | Date of | Guarantee | Actual | Actual | Guarantee | Collateral | Counter | Guarantee | Whether | Whether | |
| guarantee object | disclosure of the relevant announcement of guarantee amount limit | amount limit | date of occurrence | guarantee amount | type | (if any) | guarantee (if any) | period | it was completed | the guarantee objects were related parties |
| Not applicable | ||||||||||
| Total amount of the corporate guarantee (i.e. the sum of the first three items) | ||||||||||
| Total amount of guarantee approved at the end of the reporting period (A3+B3+C3) | 41,000 | Total actual balance of guarantee at the end of the reporting period (A4+B4+C4) | 22,000 | |||||||
| The proportion of the total actual amount of guarantee (A4+B4+C4) in the Company's net assets | 4.16% | |||||||||
| Including: | ||||||||||
Description of details of complex guaranteeNone
3. Entrusted financial management
? Applicable □ Not applicable
Unit: yuan
| Specific types | Capital source of entrusted financing | Amount of entrusted financial management | Unexpired balance | Overdue amount not recovered | Accrued impairment amount of overdue and unrecovered wealth management |
| Bank financial products | Self-own capitals | 43,000,000 | 0 | 0 | 0 |
| Total | 43,000,000 | 0 | 0 | 0 | |
Specific situation of high-risk entrusted financial management with the significant single amount or low security,poor liquidity and non-capital guarantee
□ Applicable ? Not applicable
Entrusted financial management was expected to be unable to recover the principal or there were other situationsthat may lead to impairment
□ Applicable ? Not applicable
4. Others major contracts
□ Applicable ? Not applicable
The Company had no other major contract during the reporting period.
XIII. Description of other major matters
? Applicable □ Not applicable
1. Changes in some planned capital-raising projects with the non-public offering of shares in 2021
1. On January 7, 2022, the Company, after holding the 18th (Interim) Meeting of the 7th Board of Directorsand the 15th (Interim) Meeting of the 7th Board of Supervisors, deliberated and passed the Proposal onImplementation Mode, Subject and Location of Changes in Some Capital-raising Projects, to change theimplementation mode, subject and location of the lithium battery business in the planned capital-raising project withthe non-public offering of shares in 2021, and to change the implementation place of the lithium battery work in theTopband Huizhou No. 2 Industrial Park Project from Huizhou, Guangdong Province to Nantong, Jiangsu Province.The matters had been reviewed and approved on the First Extraordinary General Meeting of Shareholders in 2022.For details, please refer to the Company's announcements on Securities Times and http://www.cninfo.com.cnon January 8, 2022 and January 25, 2022.
2. Spin-off listing of Shenzhen YAKO Automation Technology Co., Ltd.
(1) On March 18, 2022, the Company, after holding the 21st Meeting of the 7th Board of Directors and the17th Meeting of the 7th Board of Supervisors, deliberated and passed the Proposal on Planning the Spin-off Listingof Controlled Subsidiaries. Based on the actual situation and through careful consideration, the Company agreed tothe planned spin-off listing of its holding subsidiary (Shenzhen YAKO Automation Technology Co., Ltd.;hereinafter referred to as "YAKO Automation"), and authorized the Company and the management to launch thepreparatory work for the spin-off listing.
(2) On March 25, 2022, the Company, after holding the 22nd (Interim) Meeting of the 7th Board of Directorsand the 18th (Interim) Meeting of the 7th Board of Supervisors, reviewed and approved the Proposal on the Plan ofShenzhen Topband Co., Ltd. for Spinning Off of Its Subsidiary (Shenzhen YAKO Automation Technology Co.,Ltd.) to List on the Growth Enterprise Market, the Proposal on Spinning off Shenzhen YAKO AutomationTechnology Co., Ltd. (Subsidiary) to List on the Growth Enterprise Market of Shenzhen Stock Exchange inCompliance with Rules for the Spin-off of Listed Companies (For Trial Implementation) and other proposals relatedto the spin-off, authorizing the Company to spin off its subsidiary, YAKO Automation, and to list on the GrowthEnterprise Market of Shenzhen Stock Exchange. In addition, the Company disclosed the Proposal on the Plan ofShenzhen Topband Co., Ltd. for Spinning Off of Its Subsidiary (Shenzhen YAKO Automation Technology Co.,Ltd.) to List on the Growth Enterprise Market; the General Risk Advisory Announcement on Spin-off Listing of
Subsidiaries and related announcements on March 26, 2022. CITIC Securities Co., Ltd. issued the VerificationOpinion on the Spin-off of Shenzhen YAKO Automation Technology Co., Ltd. (Subsidiary) by Shenzhen TopbandCo., Ltd. and Listing on the Growth Enterprise Market, Baker Tilly China Certified Public Accountants (SpecialGeneral Partnership) issued the Financial Verification Opinions on the Spin-off Listing of Subsidiary of ShenzhenTopband Co., Ltd., and Beijing Zhong Lun Law Firm issued the Legal Opinions On Spin-off of Shenzhen YAKOAutomation Technology Co., Ltd. (Subsidiary) to List on the Growth Enterprise Market of Shenzhen StockExchange. The independent directors expressed prior approval and independent opinions on this matter. The aboveproposals were reviewed and approved by the 2021 Annual General Meeting of Shareholders on April 12, 2022.For details, please refer to the Company's announcements on Securities Times and http://www.cninfo.com.cnon March 22, 2022, March 26, 2022 and April 13, 2022.XIV. Major matters of subsidiaries of the Company? Applicable □ Not applicable
1. In March 2022, the Company invested to establish a wholly-owned subsidiary, Shenzhen Topband MotorCo., Ltd., with a registered capital of 10 million yuan, and included it in the scope of consolidated statements sinceits establishment;
2. In March 2022, Shenzhen Topband Investment Co., Ltd., a wholly-owned subsidiary of the Company,invested to establish a wholly-owned sub-subsidiary, Shenzhen Yueshang Robot Co., Ltd., with a registered capitalof 10 million yuan; Shenzhen Topband Investment Co., Ltd., a wholly-owned subsidiary of the Company, investedto establish a wholly-owned subsidiary, Shenzhen Xiaoyou Aitu Innovation Technology Co., Ltd., with a registeredcapital of 10 million yuan. All of them had been included in the scope of consolidated statements since the date ofestablishment;
Section VII Share Change and Shareholders
I. Share change
1. Share change
(Unit: Share)
| Before this change | Increase or decrease of change this time (+, -) | After this change | |||||||
| Quantity | Proportion | Issuance of new shares | Stock dividend | Conversion of accumulation fund into shares | Other | Subtotal | Quantity | Proportion | |
| I. Shares with non-tradable conditions | 228,613,617 | 18.19% | 721,250 | 721,250 | 229,334,867 | 18.04% | |||
| 1. Shares held by the state | 0.00% | ||||||||
| 2. Shares held by state-owned legal persons | 0.00% | ||||||||
| 3. Shares held by other domestic capital | 228,502,617 | 18.18% | 721,250 | 721,250 | 229,223,867 | 18.03% | |||
| Including: shares held by domestic legal persons | 0.00% | ||||||||
| Shares held by domestic natural persons | 228,502,617 | 18.18% | 721,250 | 721,250 | 229,223,867 | 18.03% | |||
| 4. Shares held by foreign investment | 111,000 | 0.01% | 111,000 | 0.01% | |||||
| Including: shares held by overseas legal persons | 0.00% | ||||||||
| Shares held by overseas natural persons | 111,000 | 0.01% | 111,000 | 0.01% | |||||
| II. Shares with unlimited tradable conditions | 1,028,364,455 | 81.81% | 13,328,050 | 13,328,050 | 1,041,692,505 | 81.96% | |||
| 1. A shares | 1,028,364,455 | 81.81% | 13,328,050 | 13,328,050 | 1,041,692,505 | 81.96% | |||
| 2. Domestic listed foreign shares | 0.00% | 0.00% | |||||||
| 3. Overseas listed foreign shares | 0.00% | 0.00% | |||||||
| 4. Others | 0.00% | 0.00% | |||||||
| III. Total number of shares | 1,256,978,072 | 100.00% | 14,049,300 | 14,049,300 | 1,271,027,372 | 100.00% | |||
Reasons for share change? Applicable □ Not applicable
The change in the Company's share capital during the reporting period was due to the joint effect of thefollowing: the third exercising period of the stock option incentive plan in 2018 met the relevant conditions, andthe incentive objects increased 14,049,300 shares for the Company's share capital through independent exercise.Approval of share change? Applicable □ Not applicableDuring the third exercising period of the Company's stock option incentive plan in 2018, the followingdecision-making procedures have been executed:
1. On March 22, 2022, the 21st Meeting of the 7th Board of Directors and the 17th Meeting of the 7th Boardof Supervisors deliberated and approved the Proposal on the Third Exercise Period of 2018 Stock Option IncentivePlan Meeting the Exercise Conditions and Exercisable Rights and the Proposal on Adjustment of the IncentiveObjects and the Number of Stock Options of 2018 Stock Option Incentive Plan. Zhang Ran, Wu Mingli and other20 incentive objects resigned from the Company due to personal reasons, therefore, they no longer meet conditionsof stock incentive objects; 2 incentive objects were rated as "unqualified" in terms of the performance appraisal and22 incentive objects rated as "good" or "qualified". In other words, 75% of exercisable quota of the stock option inthe current year can be exercised. The above stock options that failed to meet the exercise conditions had beencanceled by the Company. The Board of Supervisors of the Company expressed verification opinions on theadjustment of the exercise price of the 2018 stock option incentive plan and the list and number of incentive objectsinvolved in the second exercise period of granting stock options, and the independent directors expressed theirindependent opinions, agreeing that 543 incentive objects would exercise their rights independently in the thirdexercise period, with the total exercisable stock options of 14,049,300.
2. On April 26, 2022, the 25th Meeting of the 7th Board of Directors and the 21st Meeting of the 7th Board ofSupervisors reviewed and approved the Proposal on Adjusting the Exercise Price of the Stock Option Incentive Planin 2018. The 2021 annual equity distribution plan was implemented, and the exercise price was adjusted from 3.60yuan per share to 3.55 yuan per share accordingly.
3. As of May 16, 2022, 14,049,300 stock options involving 543 incentive objects that meet the exercisingconditions has been exercised, increasing the number of share capitals.Transfer of share change? Applicable □ Not applicable
In the third exercise period of the 2018 stock option incentive plan, 14,049,300 stock options were approvedto be exercised. As of the end of the reporting period, due to the exercise of stock options, 14,049,300 shares wereincreased, all of which had been registered under the names of each incentive object.Implementation progress of share repurchase? Applicable □ Not applicableThe Company held the 21st Meeting of the 7th Board of Directors on March 22, 2022, reviewing and approvingthe Proposal on the Repurchase of the Company's Shares, and disclosed the Report on Share Repurchase on March22, 2022. As of June 30, 2022, the Company had repurchased a total of 3,980,800 shares through centralized biddingtransactions, accounting for 0.32% of the total share capital, with the lowest price of 7.93 yuan per share, the highestprice of 10.90 yuan per share and the total transaction amount of 39,336,755.65 yuan (excluding transaction costs).The Company's repurchase plan is still under implementation.Progress in the implementation of the reduction of share repurchase through centralized bidding
□ Applicable ? Not applicable
The impact of share changes on financial indicators such as basic earnings per share and diluted earnings per sharein the latest year and the latest period, net assets per share attributable to ordinary shareholders of the Company, etc.? Applicable □ Not applicable
For the impact of changes in shareholding on financial indicators such as the basic earnings per share, dilutedearnings per share, and net assets per share attributable to ordinary shareholders of the Company in the last year andthe most recent period, please refer to Section X Financial Report XVIII: Supplementary Information 2. Return onnet assets and earnings per share in this Announcement.Other contents deemed necessary by the Company or required to be disclosed by the securities regulatory institution
□ Applicable ? Not applicable
2. Changes in non-tradable shares
? Applicable □ Not applicable
(Unit: Share)
| Name of shareholder | Number of non-tradable shares at the beginning of | Desterilization number of non-tradable shares in the | Increase number of non-tradable shares in the | Number of non-tradable shares at the end of the | Reasons for non-trading | Date of lifting sales restriction |
| the period | current period | current period | period | |||
| Wu Yongqiang | 159,006,536 | 0 | 0 | 159,006,536 | Executives lock-in shares | Not applicable |
| Ji Shuhai | 20,488,981 | 0 | 0 | 20,488,981 | Executives lock-in shares | Not applicable |
| Ma Wei | 6,567,200 | 154,000 | 300,000 | 6,713,200 | Executive lock-up shares and Stock-option-incentive restricted stocks | Not applicable |
| Peng Ganquan | 3,592,674 | 100,000 | 360,000 | 3,852,674 | Executive lock-up shares and Stock-option-incentive restricted stocks | Not applicable |
| Zheng Sibin | 4,645,977 | 133,250 | 240,000 | 4,752,727 | Executive lock-up shares and Stock-option-incentive restricted stocks | Not applicable |
| Wen Zhaohui | 1,944,095 | 45,750 | 180,000 | 2,078,345 | Executive lock-up shares and Stock-option-incentive restricted stocks | Not applicable |
| Xiang Wei | 499,125 | 45,750 | 120,000 | 573,375 | Executive lock-up shares and Stock-option-incentive restricted stocks | Not applicable |
| Dai Huijuan | 239,709 | 0 | 0 | 239,709 | Executives lock-in shares | Not applicable |
| Incentive objects of restricted stock incentive plan | 31,629,320 | 0 | 0 | 31,629,320 | Stock-option-incentive restricted stocks | From 2023 to 2025, the sales restrictions will be lifted in batches according to the performance evaluation |
| Total | 228,613,617 | 478,750 | 1,200,000 | 229,334,867 | -- | -- |
II. Issuance and listing of securities
□ Applicable ? Not applicable
III. Number of shareholders and shareholding situation of the Company
(Unit: Share)
| Total number of ordinary shareholders at the end of the reporting period | 90,934 | Total number of preferred shareholders with voting rights restored at the end of the reporting period (if any) (see Note 8) | 0 | |||||
| Shareholding situation of ordinary shareholders holding more than 5% or top 10 ordinary shareholders | ||||||||
| Name of shareholder | Nature of shareholders | Shareholding proportion | Number of ordinary shares held at the end of the reporting period | Changes in increase or decrease in the reporting period | Number of ordinary shares held subject to sales restrictions | Number of ordinary shares held free from sales restrictions | Pledge, marking or freezing | |
| Share status | Quantity | |||||||
| Wu Yongqiang | Domestic | 16.68% | 212,008,715 | - | 159,006,536 | 53,002,179 | Pledge | 52,210,000 |
| natural person | |||||||||
| Hong Kong Securities Clearing Company Ltd. | Overseas legal person | 6.61% | 84,012,640 | -13,701,510 | 0 | 84,012,640 | |||
| Ji Shuhai | Domestic natural person | 2.15% | 27,318,642 | - | 20,488,981 | 6,829,661 | |||
| Orient Securities Co., Ltd. - Zhonggeng Value Pioneer Equity Securities Investment Fund | Other | 1.86% | 23,639,226 | 15,403,200 | 0 | 23,639,226 | |||
| Xie Renguo | Domestic natural person | 1.78% | 22,641,988 | 1,492,400 | 0 | 22,641,988 | |||
| Industrial and Commercial Bank of China - China Europe Value Selection Return Hybrid Securities Investment Fund | Other | 1.47% | 18,672,787 | 18,672,787 | 0 | 18,672,787 | |||
| Agricultural Bank of China Limited - Cathay Pacific Smart Car Equity Securities Investment Fund | Other | 1.41% | 17,885,785 | -772,127 | 0 | 17,885,785 | |||
| Huatai Securities Co., Ltd. - Zhonggeng Value Pilot Hybrid Securities Investment Fund | Other | 1.31% | 16,596,100 | 16,596,100 | 0 | 16,596,100 | |||
| First State Investment Management (UK) Limited - First State Global Umbrella Fund: First State Greater China Growth Fund | Overseas legal person | 1.29% | 16,424,155 | -1,524,000 | 0 | 16,424,155 | |||
| Li Hong | Domestic natural person | 0.99% | 12,619,876 | 12,619,876 | 0 | 12,619,876 | |||
| The top 10 shareholders of strategic investors or general legal persons due to placement of new shares (if any) (see Note 3) | None | ||||||||
| Description of the above shareholders' relationship or concerted action | Among the top ten shareholders, Orient Securities Co., Ltd. - Zhonggeng Value Pioneer Equity Securities Investment Fund and Huatai Securities Co., Ltd. - Zhonggeng Value Pilot Hybrid Securities Investment Fund are managed by the same fund manager, Zhonggeng Fund Management Co., Ltd. In addition to the afore-mentioned circumstances, the Company does not know whether there is an associated relationship among the top ten shareholders, nor whether they are persons acting in concert. | ||||||||
| Description of the above shareholders' entrusting/entrusted voting rights and waiver of voting rights | None | ||||||||
| Special explanations for the existence of special repurchase accounts among the top 10 shareholders (if any) (see Note 11) | None | ||||||||
| Shareholding of the top 10 ordinary shareholders with unlimited tradable conditions | |||||||||
| Name of shareholder | Number of ordinary shares held with unlimited tradable conditions at the end of the reporting period | Type of shares | |||||||
| Type of shares | Quantity | ||||||||
| Hong Kong Securities Clearing Company Ltd. | 84,012,640 | A shares | 84,012,640 | ||||||
| Wu Yongqiang | 53,002,179 | A shares | 53,002,179 | ||||||
| Orient Securities Co., Ltd. - Zhonggeng | 23,639,226 | A shares | 23,639,226 | ||||||
| Value Pioneer Equity Securities Investment Fund | |||
| Xie Renguo | 22,641,988 | A shares | 22,641,988 |
| Industrial and Commercial Bank of China - China Europe Value Selection Return Hybrid Securities Investment Fund | 18,672,787 | A shares | 18,672,787 |
| Agricultural Bank of China Limited - Cathay Pacific Smart Car Equity Securities Investment Fund | 17,885,785 | A shares | 17,885,785 |
| Huatai Securities Co., Ltd. - Zhonggeng Value Pilot Hybrid Securities Investment Fund | 16,596,100 | A shares | 16,596,100 |
| First State Investment Management (UK) Limited - First State Global Umbrella Fund: First State Greater China Growth Fund | 16,424,155 | A shares | 16,424,155 |
| Li Hong | 12,619,876 | A shares | 12,619,876 |
| Basic Endowment Insurance Fund 1206 Portfolio | 12,602,356 | A shares | 12,602,356 |
| Description of the relationship or concerted action between the top 10 shareholders with unlimited tradable shares and between the top 10 shareholders with unlimited tradable shares and the top 10 shareholders | Not applicable | ||
| Description of the participation of the top 10 ordinary shareholders in securities margin trading (if any) (see Note 4) | None | ||
Whether the top 10 ordinary shareholders and the top 10 ordinary shareholders with unlimited sales conditions carryout the agreed repurchase transaction during the reporting period
□ Yes ? No
The top 10 ordinary shareholders and the top 10 ordinary shareholders with unlimited sales conditions did not carryout the agreed repurchase transaction during the reporting period.IV. Change in ownership percentage held by directors, supervisors and senior management? Applicable □ Not applicable
| Name | Position | Position status | Number of shares held at the beginning of the period (shares) | Number of additional shares held in the current period (shares) | Number of shares reduced in the current period (shares) | Number of shares held at the end of the period (shares) | Number of restricted stocks granted at the beginning of the period (shares) | Number of restricted stocks granted in the current period (shares) | Number of restricted stocks granted at the end of the period (shares) |
| Wu Yongqiang | Chairman | Incumbent | 212,008,715 | 0 | 0 | 212,008,715 | 0 | 0 | 0 |
| Ji Shuhai | Director | Incumbent | 27,318,642 | 0 | 0 | 27,318,642 | 0 | 0 | 0 |
| Zheng Sibin | Director and Deputy | Incumbent | 6,016,970 | 320,000 | 0 | 6,336,970 | 533,000 | 0 | 533,000 |
| General Manager | |||||||||
| Ma Wei | Director and Deputy General Manager | Incumbent | 8,550,934 | 400,000 | 0 | 8,950,934 | 616,000 | 0 | 616,000 |
| Peng Ganquan | Director and Deputy General Manager | Incumbent | 4,656,900 | 480,000 | 0 | 5,136,900 | 400,000 | 0 | 400,000 |
| Wu Hang | Director | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Huang Yuegang | Independent director | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Hua Xiuping | Independent director | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Li Xumeng | Independent director | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Shi Yun | Independent director | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Wen Zhaohui | Vice General Manager and Secretary of the Board of Directors | Incumbent | 2,531,127 | 240,000 | 0 | 2,771,127 | 183,000 | 0 | 183,000 |
| Xiang Wei | Chief financial officer | Incumbent | 604,500 | 160,000 | 0 | 764,500 | 183,000 | 0 | 183,000 |
| Dai Huijuan | Supervisor | Incumbent | 319,612 | 0 | 0 | 319,612 | 0 | 0 | 0 |
| Kang Weiquan | Supervisor | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Chen Jinzhou | Supervisor | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | -- | -- | 262,007,400 | 1,600,000 | 0 | 263,607,400 | 1,915,000 | 0 | 1,915,000 |
V. Changes in controlling shareholders or actual controllersChange of controlling shareholders during the reporting period
□ Applicable ? Not applicable
The controlling shareholder of the Company did not change during the reporting period.Change of actual controller during the reporting period
□ Applicable ? Not applicable
The actual controller of the Company did not change during the reporting period.
Section VIII Information on Preferred Shares
□ Applicable ? Not applicable
The Company did not have preferred shares during the reporting period.
Section IX Relevant Information of Bonds
□ Applicable ? Not applicable
Section X Financial Report
I. Audit report
Whether the semi-annual report had been audited
□ Yes ? No
The semi-annual financial report had not been audited.
II. Financial StatementsThe unit of statements in the financial notes is: Yuan
1. Consolidated Balance Sheet
Prepared by: Shenzhen Topband Co., Ltd.
June 30, 2022
Unit: yuan
| Items | June 30, 2022 | January 1, 2022 |
| Current assets: | ||
| Monetary capital | 1,592,155,704.45 | 1,767,580,056.07 |
| Settlement of provisions | ||
| Lending funds | ||
| Tradable financial assets | 272,602,542.73 | 214,999,336.74 |
| Derivative financial assets | ||
| Notes receivable | 95,010,569.89 | 161,659,470.21 |
| Accounts receivable | 2,383,927,027.15 | 2,188,161,465.48 |
| Receivables financing | 186,797,543.01 | 36,902,507.85 |
| Prepayments | 79,609,133.72 | 41,320,285.02 |
| Premiums receivable | ||
| Reinsurance accounts receivable | ||
| Reinsurance contract reserves receivable | ||
| Other receivables | 56,585,892.25 | 50,156,221.82 |
| Including: interest receivable | ||
| Dividends receivable | ||
| Repurchase of financial assets for resale | ||
| Inventory | 2,200,490,689.46 | 2,184,402,766.04 |
| Contractual assets | ||
| Assets held for sale | ||
| Non-current assets due within one year | ||
| Other current assets | 121,602,690.62 | 113,071,619.93 |
| Total current assets | 6,988,781,793.28 | 6,758,253,729.16 |
| Non-current assets: | ||
| Loans and advances granted | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term receivables | ||
| Long-term equity investment | 24,629,564.82 | 26,119,127.82 |
| Other equity instrument investment | ||
| Other non-current financial assets | ||
| Investment property | 107,656,655.34 | 86,975,114.31 |
| Fixed assets | 1,720,571,118.72 | 1,299,517,887.54 |
| Construction in progress | 143,094,482.19 | 495,248,025.93 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 55,212,987.55 | 58,168,151.88 |
| Intangible assets | 443,953,334.22 | 435,639,773.29 |
| Development expenditure | 86,872,635.77 | 66,358,407.48 |
| Goodwill | 110,732,042.84 | 110,732,042.84 |
| Long-term deferred expenses | 92,574,156.03 | 95,151,616.38 |
| Deferred tax assets | 93,397,197.17 | 102,787,097.36 |
| Other non-current assets | 307,315,620.42 | 72,041,428.40 |
| Total non-current assets | 3,186,009,795.07 | 2,848,738,673.23 |
| Total assets | 10,174,791,588.35 | 9,606,992,402.39 |
| Current liabilities: | ||
| Short-term loans | 724,668,584.75 | 409,531,107.26 |
| Loan from the Central Bank | ||
| Borrowed funds | ||
| Tradable financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | 1,253,202,540.98 | 1,231,106,148.24 |
| Accounts payable | 1,524,099,572.76 | 1,511,284,996.56 |
| Accounts collected in advance | 974,629.25 | 353,895.16 |
| Contractual liabilities | 140,315,780.40 | 93,328,006.70 |
| Financial assets sold for repurchase | ||
| Deposit absorption and interbank deposit | ||
| Acting trading securities | ||
| Acting underwriting securities | ||
| Employee compensation payable | 139,053,053.22 | 198,863,796.02 |
| Taxes payable | 68,877,876.53 | 16,254,542.45 |
| Other account payable | 303,153,820.38 | 318,632,275.66 |
| Including: interest payable | ||
| Dividends payable |
| Service charges and commissions payable | ||
| Reinsurance accounts payable | ||
| Liabilities held for sale | ||
| Non-current liabilities due within one year | 57,373,923.45 | 47,721,695.74 |
| Other current liabilities | 51,893,429.06 | 107,064,543.82 |
| Total current liabilities | 4,263,613,210.78 | 3,934,141,007.61 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term loans | 450,511,381.65 | 475,020,000.00 |
| Bonds payable | ||
| Including: preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | 38,645,239.64 | 40,290,402.14 |
| Long-term payables | ||
| Long-term employee compensation payable | ||
| Estimated liabilities | ||
| Deferred income | 15,381,300.00 | 14,385,200.00 |
| Deferred tax liabilities | 29,064,435.66 | 26,280,456.34 |
| Other non-current liabilities | ||
| Total non-current liabilities | 533,602,356.95 | 555,976,058.48 |
| Total liabilities | 4,797,215,567.73 | 4,490,117,066.09 |
| Owner's equity: | ||
| Share capital | 1,271,027,372.00 | 1,256,978,072.00 |
| Other equity instruments | ||
| Including: preferred shares | ||
| Perpetual bonds | ||
| Capital public reserve | 2,220,790,003.13 | 2,140,053,149.74 |
| Minus: treasury shares | 281,870,057.36 | 242,525,433.60 |
| Other comprehensive income | -73,677,587.01 | -91,831,496.88 |
| Special reserve | ||
| Surplus reserves | 186,397,631.76 | 186,397,631.76 |
| General risk provision | ||
| Retained earnings | 1,963,038,746.39 | 1,779,243,483.61 |
| Total owners' equity attributable to the parent company | 5,285,706,108.91 | 5,028,315,406.63 |
| Minority shareholders' equity | 91,869,911.71 | 88,559,929.67 |
| Total owners' equity | 5,377,576,020.62 | 5,116,875,336.30 |
| Total liabilities and owners' equity | 10,174,791,588.35 | 9,606,992,402.39 |
| Legal Representative: Wu Yongqiang | Accounting Head: Xiang Wei | Accounting Department Head: Luo Muchen |
2. Balance Sheet of Parent Company
Unit: yuan
| Items | June 30, 2022 | January 1, 2022 |
| Current assets: | ||
| Monetary capital | 765,394,438.05 | 1,110,855,192.86 |
| Tradable financial assets | 187,011,836.74 | 187,011,836.74 |
| Derivative financial assets | ||
| Notes receivable | 23,859,650.75 | 50,356,382.14 |
| Accounts receivable | 1,521,964,444.84 | 1,496,921,254.34 |
| Receivables financing | 141,443,890.67 | 13,909,195.16 |
| Prepayments | 12,559,322.70 | 11,308,739.07 |
| Other receivables | 254,051,041.69 | 141,619,648.22 |
| Including: interest receivable | ||
| Dividends receivable | ||
| Inventory | 289,102,986.05 | 343,548,795.39 |
| Contractual assets | ||
| Assets held for sale | ||
| Non-current assets due within one year | ||
| Other current assets | 11,244,101.19 | 14,074,292.52 |
| Total current assets | 3,206,631,712.68 | 3,369,605,336.44 |
| Non-current assets: | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term receivables | ||
| Long-term equity investment | 3,842,139,482.67 | 2,947,556,465.89 |
| Other equity instrument investment | ||
| Other non-current financial assets | ||
| Investment property | ||
| Fixed assets | 142,527,439.98 | 145,229,190.35 |
| Construction in progress | 16,149,521.86 | 6,486,761.99 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 2,643,193.91 | 554,157.99 |
| Intangible assets | 164,571,403.71 | 161,311,708.12 |
| Development expenditure | 55,478,555.44 | 43,638,980.21 |
| Goodwill | ||
| Long-term deferred expenses | 17,984,940.60 | 20,573,462.40 |
| Deferred tax assets | 29,897,120.33 | 55,938,073.37 |
| Other non-current assets | 8,175,127.08 | 8,160,527.96 |
| Total non-current assets | 4,279,566,785.58 | 3,389,449,328.28 |
| Total assets | 7,486,198,498.26 | 6,759,054,664.72 |
| Current liabilities: | ||
| Short-term loans | 151,800,000.00 | 153,591,779.50 |
| Tradable financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | 1,102,041,415.45 | 990,389,640.00 |
| Accounts payable | 483,782,841.62 | 368,537,246.64 |
| Accounts collected in advance | ||
| Contractual liabilities | 61,133,248.93 | 37,061,438.92 |
| Employee compensation payable | 81,235,875.16 | 105,820,526.01 |
| Taxes payable | 18,097,127.89 | 10,652,318.75 |
| Other account payable | 1,035,368,949.02 | 568,675,865.75 |
| Including: interest payable | ||
| Dividends payable | ||
| Liabilities held for sale | ||
| Non-current liabilities due within one year | 1,191,297.13 | 326,602.76 |
| Other current liabilities | 7,470,248.34 | 38,799,661.21 |
| Total current liabilities | 2,942,121,003.54 | 2,273,855,079.54 |
| Non-current liabilities: | ||
| Long-term loans | ||
| Bonds payable | ||
| Including: preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | 1,549,660.92 | 221,776.58 |
| Long-term payables | ||
| Long-term employee compensation payable | ||
| Estimated liabilities | ||
| Deferred income | 6,237,500.00 | 9,053,500.00 |
| Deferred tax liabilities | 20,777,131.09 | 20,935,893.00 |
| Other non-current liabilities | ||
| Total non-current liabilities | 28,564,292.01 | 30,211,169.58 |
| Total liabilities | 2,970,685,295.55 | 2,304,066,249.12 |
| Owner's equity: | ||
| Share capital | 1,271,027,372.00 | 1,256,978,072.00 |
| Other equity instruments | ||
| Including: preferred shares | ||
| Perpetual bonds | ||
| Capital public reserve | 2,268,311,853.78 | 2,189,685,216.22 |
| Minus: treasury shares | 281,870,057.36 | 242,525,433.60 |
| Other comprehensive income | 662,376.02 | 370,109.41 |
| Special reserve | ||
| Surplus reserves | 186,369,113.30 | 186,369,113.30 |
| Retained earnings | 1,071,012,544.97 | 1,064,111,338.27 |
| Total owners' equity | 4,515,513,202.71 | 4,454,988,415.60 |
| Total liabilities and owners' equity | 7,486,198,498.26 | 6,759,054,664.72 |
3. Consolidated income statement
Unit: yuan
| Items | Semi-annual data in 2022 | Semi-annual data in 2021 |
| I. Total operating income | 4,228,003,137.57 | 3,644,045,612.40 |
| Including: operating income | 4,228,003,137.57 | 3,644,045,612.40 |
| Interest income | ||
| Premium earned | ||
| Service charge and commission income | ||
| II. Total operating cost | 3,949,799,858.52 | 3,178,835,573.38 |
| Including: operating cost | 3,421,434,029.61 | 2,765,295,741.39 |
| Interest expense | ||
| Service charge and commission payment | ||
| Surrender value | ||
| Net compensation expenditure | ||
| Net reserve amount set aside for insurance liability | ||
| Policy dividend payment | ||
| Reinsurance expenses | ||
| Taxes and surcharges | 21,060,144.67 | 13,278,244.24 |
| Selling expenses | 125,180,825.48 | 76,889,884.59 |
| Management expenses | 160,894,026.46 | 94,842,819.69 |
| R&D expenses | 284,847,207.92 | 174,767,726.31 |
| Finance expenses | -63,616,375.63 | 53,761,157.16 |
| Including: interest expenses | 14,644,344.03 | 6,676,232.42 |
| Interest income | 6,486,250.66 | 4,397,537.66 |
| Plus: other income | 17,072,867.62 | 12,006,181.38 |
| Return on investment (loss marked with "-") | -1,247,660.53 | 23,876,616.37 |
| Including: investment income from associated enterprises and joint ventures | -2,142,224.73 | -1,390,590.78 |
| Derecognition of income for financial assets measured at amortized cost | ||
| Exchange gains (loss marked with "-") | ||
| Net exposure hedge gain (loss marked with "-") | ||
| Loss from fair value change (income marked with "-") | 31,603,205.99 | 98,312,768.52 |
| Credit impairment loss (loss marked with "-") | -10,907,334.70 | -15,163,819.96 |
| Asset impairment loss (loss marked with "-") | -46,406,707.31 | -99,292,387.41 |
| Income from disposal of assets (loss marked with "-") | -284,674.88 | -317,178.75 |
| III. Operating profits (losses marked with "-") | 268,032,975.24 | 484,632,219.17 |
| Plus: non-operating income | 1,154,014.66 | 1,581,081.80 |
| Minus: non-operating expenses | 3,118,394.89 | 4,486,165.70 |
| IV. Total profit (total loss marked with "-") | 266,068,595.01 | 481,727,135.27 |
| Minus: income tax expenses | 17,807,321.21 | 45,639,842.16 |
| V. Net profit (net loss marked with "-") | 248,261,273.80 | 436,087,293.11 |
| (I) Classification according to business continuity | ||
| 1. Net profit from continuing operations (net loss marked with "-") | 248,261,273.80 | 436,087,293.11 |
| 2. Net profit of discontinued operation (net loss marked with "-") | ||
| (II) Classification according to ownership | ||
| 1. Net profits attributable to the owners of the parent company | 246,508,271.38 | 428,185,704.03 |
| 2. Profits and losses of minority shareholders | 1,753,002.42 | 7,901,589.08 |
| VI. Net after-tax amount of other comprehensive income | 18,153,909.87 | -18,008,020.97 |
| Net after-tax amount of other comprehensive income attributable to the owner | 18,153,909.87 | -18,008,020.97 |
| of the parent company | ||
| (I) Other comprehensive income that cannot be reclassified into profits or losses | ||
| 1. Re-measurement of changes in the defined benefit plans | ||
| 2. Other comprehensive income not available for transferring to profits or losses under equity method | ||
| 3. Changes in fair value of other equity instrument investment | ||
| 4. Changes in fair value of enterprise's own credit risk | ||
| 5. Others | ||
| (II) Other comprehensive income that is reclassified into profits and losses | 18,153,909.87 | -18,008,020.97 |
| 1. Other comprehensive income that can be transferred into profits or losses under the equity method | ||
| 2. Changes in Fair Value of Other Debt Investments | ||
| 3. Amount of financial assets reclassified into other comprehensive income | ||
| 4. Provisions for credit impairment of other debt investment | ||
| 5. Cash flow hedging reserve | ||
| 6. Difference from conversion of foreign currency financial statements | 18,153,909.87 | -17,755,436.98 |
| 7. Others | -252,583.99 | |
| Net after-tax amount of other comprehensive income attributed to the minority of shareholders | ||
| VII. Total comprehensive income | 266,415,183.67 | 418,079,272.14 |
| Total comprehensive income attributable to the owners of the parent company | 264,662,181.25 | 410,177,683.06 |
| Total consolidated income attributable to minority shareholders | 1,753,002.42 | 7,901,589.08 |
| VIII. Earnings per share: | ||
| (I) Basic earnings per share | 0.20 | 0.38 |
| (II) Diluted earnings per share | 0.20 | 0.37 |
In case of merger of enterprises under the same control in the current period, the net profit realized by the combined party before themerger is 0.00 yuan, and the net profit realized by the combined party in the previous period is 0.00 yuan.
| Legal Representative: Wu Yongqiang | Accounting Head: Xiang Wei | Accounting Department Head: Luo Muchen |
4. Income Statement of Parent Company
Unit: yuan
| Items | Semi-annual data in 2022 | Semi-annual data in 2021 |
| I. Operating income | 2,459,847,476.95 | 2,161,935,231.31 |
| Minus: operating cost | 2,093,560,411.93 | 1,795,042,018.32 |
| Taxes and surcharges | 6,995,342.78 | 4,438,662.57 |
| Selling expenses | 83,222,342.05 | 46,844,689.71 |
| Management expenses | 90,353,899.12 | 58,380,674.25 |
| R&D expenses | 160,850,627.57 | 93,574,802.25 |
| Finance expenses | -47,026,844.29 | 32,579,149.03 |
| Including: interest expenses | 7,006,014.82 | 1,261,238.91 |
| Interest income | 3,453,311.38 | 2,906,961.53 |
| Plus: other income | 10,029,658.78 | 4,582,626.08 |
| Return on investment (loss marked with "-") | -31,393.79 | 37,623,948.49 |
| Including: investment income from associated enterprises and joint ventures | -31,393.79 | -495,808.80 |
| Income from derecognition of financial assets measured at amortized cost (loss marked with "-") | 0.00 | 0.00 |
| Net exposure hedge gain (loss marked with "-") | 0.00 | 0.00 |
| Loss from fair value change (income marked with "-") | 0.00 | 98,312,768.52 |
| Credit impairment loss (loss marked with "-") | -6,841,292.71 | -9,738,998.19 |
| Asset impairment loss (loss marked with "-") | -4,678,021.21 | -5,238,034.46 |
| Income from disposal of assets (loss marked with "-") | 73,024.55 | 699,460.42 |
| II. Operating profit (loss marked with "-") | 70,443,673.41 | 257,317,006.04 |
| Plus: non-operating income | 493,670.30 | 154,957.57 |
| Minus: non-operating expenses | 1,372,699.03 | 2,818,249.19 |
| III. Total profit (total loss marked with "-") | 69,564,644.68 | 254,653,714.42 |
| Minus: income tax expenses | -49,570.62 | 30,387,565.98 |
| IV. Net profit (net loss marked with "-") | 69,614,215.30 | 224,266,148.44 |
| (I) Net profit from continuing operation (net loss marked with "-") | 69,614,215.30 | 224,266,148.44 |
| (II) Net profit from termination of operation (net loss marked with "-") | ||
| V. Net after-tax amount of other comprehensive income | 0.00 | -252,583.99 |
| (I) Other comprehensive income that cannot be reclassified into profits or losses | 0.00 | 0.00 |
| 1. Re-measurement of changes in the defined benefit plans | 0.00 | 0.00 |
| 2. Other comprehensive income not available for transferring to profits or losses under equity method | 0.00 | 0.00 |
| 3. Changes in fair value of other equity instrument investment | 0.00 | 0.00 |
| 4. Changes in fair value of enterprise's own credit risk | 0.00 | 0.00 |
| 5. Others | 0.00 | 0.00 |
| (II) Other comprehensive income that is reclassified into profits and losses | 0.00 | -252,583.99 |
| 1. Other comprehensive income that can be transferred into profits or losses under the equity method | 0.00 | 0.00 |
| 2. Changes in Fair Value of Other Debt Investments | 0.00 | 0.00 |
| 3. Amount of financial assets reclassified into other comprehensive income | 0.00 | 0.00 |
| 4. Provisions for credit impairment of other debt investment | 0.00 | 0.00 |
| 5. Cash flow hedging reserve | 0.00 | 0.00 |
| 6. Difference from conversion of foreign currency financial statements | 0.00 | 0.00 |
| 7. Others | 0.00 | -252,583.99 |
| VI. Total comprehensive income | 69,614,215.30 | 224,013,564.45 |
| VII. Earnings per share: | ||
| (I) Basic earnings per share | 0.06 | 0.20 |
| (II) Diluted earnings per share | 0.06 | 0.20 |
5. Consolidated Cash Flow Statement
Unit: yuan
| Items | Semi-annual data in 2022 | Semi-annual data in 2021 |
| I. Cash flow from operating activities: | ||
| Cash received from sales of goods or rendering of services | 4,173,711,961.16 | 3,223,676,867.56 |
| Net increase in customer deposits and interbank deposits | ||
| Net increase in borrowing from the central bank | ||
| Net increase amount of borrowings from other financial institutions | ||
| Cash from receipt of original insurance contract premiums | ||
| Receipt of net cash for reinsurance operations | ||
| Net increment from the insured' deposit and investment |
| Cash from receipt of interest, service charges and commissions | ||
| Net increase in borrowed funds | ||
| Net increase in funds from repurchase operations | ||
| Net cash received by agents trading securities | ||
| Tax rebates received | 220,636,224.87 | 211,748,519.91 |
| Other cash received related to operating activities | 45,888,629.79 | 31,046,302.40 |
| Subtotal of cash inflow from operating activities | 4,440,236,815.82 | 3,466,471,689.87 |
| Cash paid for purchasing goods and accepting labor services | 3,383,604,409.36 | 2,793,464,547.98 |
| Net increase in loans and advances of clients | ||
| Net increase in deposits with central banks and interbanks | ||
| Cash in compensation funds paid for the original insurance contract | ||
| Net increase in lending funds | ||
| Cash for payment of interest, service charges and commissions | ||
| Cash for payment of policy dividends | ||
| Cash payments to and for employees | 776,482,113.10 | 671,904,067.00 |
| Various taxes paid | 76,036,220.46 | 113,796,964.36 |
| Other cash paid in connection with operating activities | 129,227,817.51 | 113,011,848.65 |
| Subtotal of cash outflow from operating activities | 4,365,350,560.43 | 3,692,177,427.99 |
| Net cash flow from operating activities | 74,886,255.39 | -225,705,738.12 |
| II. Cash flow from investing activities: | ||
| Cash received from investment recovery | 47,000,000.00 | 349,382,339.75 |
| Cash received as return on an investment | 129,168.71 | 25,253,304.38 |
| Net cash recouped from disposal of fixed assets, intangible assets, and other long-term assets | 273,431.00 | 815,062.65 |
| Net cash from disposal of subsidiaries and other business units | ||
| Other cash received relating to investment activities | 0.00 | 0.00 |
| Subtotal of cash inflow from investment activities | 47,402,599.71 | 375,450,706.78 |
| Cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets | 453,359,295.98 | 402,240,855.04 |
| Cash paid for investment | 82,000,000.00 | 371,250,000.00 |
| Net increase in pledged loans | ||
| Net cash paid for acquiring subsidiaries and other business units | 0.00 | 11,282,386.79 |
| Other cash paid related to investment activities | 0.00 | 0.00 |
| Subtotal of cash outflow from investment activities | 535,359,295.98 | 784,773,241.83 |
| Net cash flow from investment activities | -487,956,696.27 | -409,322,535.05 |
| III. Cash flow from financing activities: | ||
| Cash received from absorbing investment | 49,875,015.00 | 1,078,017,195.75 |
| Including: cash received by subsidiaries' absorption of minority shareholders' investment | ||
| Cash received from loan | 435,000,000.00 | 255,055,700.02 |
| Other cash received relating to financing activities | 25,597,956.24 | 18,039,024.44 |
| Subtotal of cash inflow from financing activities | 510,472,971.24 | 1,351,111,920.21 |
| Cash paid for repayments of debts | 135,712,618.35 | 527,265,500.00 |
| Cash paid to distribute dividends, profits or pay interest | 79,068,993.14 | 65,867,823.74 |
| Including: dividends and profits paid by subsidiaries to minority shareholders | ||
| Other cash paid related to financing activities | 65,429,693.55 | 9,060,059.78 |
| Subtotal of cash outflow from financing activities | 280,211,305.04 | 602,193,383.52 |
| Net cash flow from financing activities | 230,261,666.20 | 748,918,536.69 |
| IV. Impact of exchange rate fluctuations on cash and cash equivalents | 20,486,535.72 | -26,342,339.58 |
| V. Net increase in cash and cash equivalents | -162,322,238.96 | 87,547,923.94 |
| Plus: balance of cash and cash equivalents at the beginning of the period | 1,736,104,958.20 | 1,196,835,834.93 |
| VI. Balance of cash and cash equivalents at the end of the period | 1,573,782,719.24 | 1,284,383,758.87 |
6. Cash flow statement of the parent company
Unit: yuan
| Items | Semi-annual data in 2022 | Semi-annual data in 2021 |
| I. Cash flow from operating activities: | ||
| Cash received from sales of goods or rendering of services | 2,188,764,560.89 | 2,021,396,547.85 |
| Tax rebates received | 133,415,379.85 | 142,309,354.93 |
| Other cash received related to operating activities | 1,933,981,335.43 | 424,206,181.63 |
| Subtotal of cash inflow from operating activities | 4,256,161,276.17 | 2,587,912,084.41 |
| Cash paid for purchasing goods and accepting labor services | 1,757,859,328.07 | 2,356,322,702.66 |
| Cash payments to and for employees | 331,679,465.82 | 269,073,726.98 |
| Various taxes paid | 11,543,063.13 | 44,861,325.36 |
| Other cash paid in connection with operating activities | 1,510,278,958.46 | 392,382,205.31 |
| Subtotal of cash outflow from operating activities | 3,611,360,815.48 | 3,062,639,960.31 |
| Net cash flow from operating activities | 644,800,460.69 | -474,727,875.90 |
| II. Cash flow from investing activities: | ||
| Cash received from investment recovery | 0.00 | 512,339.75 |
| Cash received as return on an investment | 0.00 | 38,119,757.29 |
| Net cash recouped from disposal of fixed assets, intangible assets, and other long-term assets | 0.00 | 564,922.65 |
| Net cash from disposal of subsidiaries and other business units | 0.00 | 0.00 |
| Other cash received relating to investment activities | 0.00 | 0.00 |
| Subtotal of cash inflow from investment activities | 0.00 | 39,197,019.69 |
| Cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets | 63,613,623.87 | 71,540,415.92 |
| Cash paid for investment | 874,604,000.00 | 279,794,442.93 |
| Net cash paid for acquiring subsidiaries and other business units | 0.00 | 0.00 |
| Other cash paid related to investment activities | 0.00 | 0.00 |
| Subtotal of cash outflow from investment activities | 938,217,623.87 | 351,334,858.85 |
| Net cash flow from investment activities | -938,217,623.87 | -312,137,839.16 |
| III. Cash flow from financing activities: | ||
| Cash received from absorbing investment | 49,875,015.00 | 1,078,017,195.75 |
| Cash received from loan | 120,000,000.00 | 170,000,000.00 |
| Other cash received relating to financing activities | 25,597,956.24 | 8,672,342.48 |
| Subtotal of cash inflow from financing activities | 195,472,971.24 | 1,256,689,538.23 |
| Cash paid for repayments of debts | 120,000,000.00 | 218,569,500.00 |
| Cash paid to distribute dividends, profits or pay interest | 70,323,199.71 | 57,431,645.93 |
| Other cash paid related to financing activities | 55,485,215.43 | 2,494,819.08 |
| Subtotal of cash outflow from financing activities | 245,808,415.14 | 278,495,965.01 |
| Net cash flow from financing activities | -50,335,443.90 | 978,193,573.22 |
| IV. Impact of exchange rate fluctuations on cash and cash equivalents | 9,192,396.84 | -9,917,875.85 |
| V. Net increase in cash and cash equivalents | -334,560,210.24 | 181,409,982.31 |
| Plus: balance of cash and cash equivalents at the beginning of the period | 1,085,257,236.62 | 696,490,741.04 |
| VI. Balance of cash and cash equivalents at the end of the period | 750,697,026.38 | 877,900,723.35 |
7. Consolidated statement of changes in owner's equity
Amount in the current period
Unit: yuan
| Items | Semi-annual data in 2022 | ||||||||||||||
| Owner's equity attributable to the parent company | Minority shareholders' equity | Total owners' equity | |||||||||||||
| Share capital | Other equity instruments | Capital public reserve | Minus: treasury shares | Other comprehensive income | Special reserve | Surplus reserves | General risk provision | Retained earnings | Other | Subtotal | |||||
| Preferred shares | Perpetual bonds | Other | |||||||||||||
| I. Ending balance of last year | 1,256,978,072.00 | 0.00 | 0.00 | 0.00 | 2,140,053,149.74 | 242,525,433.60 | -91,831,496.88 | 0 | 186,397,631.76 | 0.00 | 1,779,243,483.61 | 0.00 | 5,028,315,406.63 | 88,559,929.67 | 5,116,875,336.30 |
| Plus: changes in accounting policies | 0.00 | ||||||||||||||
| Early error correction | 0.00 | ||||||||||||||
| Merger of enterprises under the same control | 0.00 | ||||||||||||||
| Other | 0.00 | ||||||||||||||
| II. Beginning balance of the current year | 1,256,978,072.00 | 0.00 | 0.00 | 0.00 | 2,140,053,149.74 | 242,525,433.60 | -91,831,496.88 | 0 | 186,397,631.76 | 0.00 | 1,779,243,483.61 | 5,028,315,406.63 | 88,559,929.67 | 5,116,875,336.30 | |
| III. Amount of changes in increase or decrease in the current period (decrease marked with "-") | 14,049,300.00 | 0.00 | 0.00 | 0.00 | 80,736,853.39 | 39,344,623.76 | 18,153,909.87 | 0 | 0.00 | 0.00 | 183,795,262.78 | 257,390,702.28 | 3,309,982.04 | 260,700,684.32 | |
| (I) Total comprehensive income | 18,153,909.87 | 246,508,271.38 | 264,662,181.25 | 1,753,002.42 | 266,415,183.67 | ||||||||||
| (II) Capital invested and reduced by owners | 14,049,300.00 | 82,293,833.01 | 39,344,623.76 | 56,998,509.25 | 56,998,509.25 | ||||||||||
| 1.Ordinary shares invested by owners | 14,049,300.00 | 54,522,812.37 | 68,572,112.37 | 68,572,112.37 | |||||||||||
| 2.Capital contributed by holders of other equity instruments | 0.00 | ||||||||||||||
| 3.Amount of share-based payment included in owner's equity | 27,771,020.64 | 27,771,020.64 | 27,771,020.64 | ||||||||||||
| 4.Other | 39,344,623.76 | -39,344,623.76 | -39,344,623.76 | ||||||||||||
| (III) Profit distribution | -62,713,008.60 | -62,713,008.60 | -62,713,008.60 | ||||||||||||
| 1.Withdraw surplus reserve | |||||||||||||||
| 2.Withdrawal of general risk provision | |||||||||||||||
| 3.Distribution to owners (or shareholders) | -62,713,008.60 | -62,713,008.60 | -62,713,008.60 | ||||||||||||
| 4.Other | |||||||||||||||
| (IV) Internal carryover of owner's equity | |||||||||||||||
| 1.Provident funds converted into capital (or capital stock) | |||||||||||||||
| 2.Conversion |
| of surplus reserves to additional capital (or capital stock) | |||||||||||||||
| 3.Surplus public reserve to compensate losses | |||||||||||||||
| 4.Change of defined benefit plans carried forward to retained earnings | |||||||||||||||
| 5.Other comprehensive income carried forward into retained earnings | |||||||||||||||
| 6.Other | |||||||||||||||
| (V) Special reserve | |||||||||||||||
| 1.Amount withdrawn in the current period | |||||||||||||||
| 2.Amount used in the current period | |||||||||||||||
| (VI) Others | -1,556,979.62 | -1,556,979.62 | 1,556,979.62 | ||||||||||||
| IV. Ending balance of the current year | 1,271,027,372.00 | 2,220,790,003.13 | 281,870,057.36 | -73,677,587.01 | 186,397,631.76 | 1,963,038,746.39 | 5,285,706,108.91 | 91,869,911.71 | 5,377,576,020.62 |
Amount of the last year
Unit: yuan
| Items | Semi-annual data in 2021 | ||||||||||||||
| Owner's equity attributable to the parent company | Minority shareholders' equity | Total owners' equity | |||||||||||||
| Share capital | Other equity instruments | Capital public reserve | Minus: treasury shares | Other comprehensive income | Special reserve | Surplus reserves | General risk provision | Retained earnings | Other | Subtotal | |||||
| Preferred shares | Perpetual bonds | Other | |||||||||||||
| I. Ending balance of last year | 1,135,216,809.00 | 956,734,039.75 | 80,017,965.68 | -24,555,229.97 | 151,359,957.53 | 1,324,944,369.91 | 3,463,681,980.54 | 84,992,151.43 | 3,548,674,131.97 | ||||||
| Plus: changes in accounting policies | |||||||||||||||
| Early error correction | |||||||||||||||
| Merger of enterprises under the same control | |||||||||||||||
| Other | |||||||||||||||
| II. Beginning balance of the current year | 1,135,216,809.00 | 956,734,039.75 | 80,017,965.68 | -24,555,229.97 | 151,359,957.53 | 1,324,944,369.91 | 3,463,681,980.54 | 84,992,151.43 | 3,548,674,131.97 | ||||||
| III. Amount of changes in increase or decrease in the current period (decrease marked with "-") | 103,037,863.00 | 0.00 | 1,003,352,341.65 | 0.00 | -18,008,020.97 | 0.00 | 371,620,179.58 | 1,460,002,363.26 | 9,124,003.49 | 1,469,126,366.75 | |||||
| (I) Total comprehensive income | -18,008,020.97 | 428,185,704.03 | 410,177,683.06 | 7,901,589.08 | 418,079,272.14 | ||||||||||
| (II) Capital invested and reduced by | 103,037,863.00 | 976,663,746.46 | 1,079,701,609.46 | 1,079,701,609.46 | |||||||||||
| owners | |||||||||||||||
| 1.Ordinary shares invested by owners | 103,037,863.00 | 982,896,579.72 | 1,085,934,442.72 | 1,085,934,442.72 | |||||||||||
| 2.Capital contributed by holders of other equity instruments | |||||||||||||||
| 3.Amount of share-based payment included in owner's equity | -6,232,833.26 | -6,232,833.26 | -6,232,833.26 | ||||||||||||
| 4.Other | |||||||||||||||
| (III) Profit distribution | -56,565,524.45 | -56,565,524.45 | -5,197,835.08 | -61,763,359.53 | |||||||||||
| 1.Withdraw surplus reserve | |||||||||||||||
| 2.Withdrawal of general risk provision | |||||||||||||||
| 3.Distribution to owners (or shareholders) | -56,565,524.45 | -56,565,524.45 | -5,197,835.08 | -61,763,359.53 | |||||||||||
| 4.Other | |||||||||||||||
| (IV) Internal carryover of owner's equity | |||||||||||||||
| 1.Provident funds converted into capital (or capital stock) | |||||||||||||||
| 2.Conversion of surplus reserves to additional capital (or |
| capital stock) | |||||||||||||||
| 3.Surplus public reserve to compensate losses | |||||||||||||||
| 4.Change of defined benefit plans carried forward to retained earnings | |||||||||||||||
| 5.Other comprehensive income carried forward into retained earnings | |||||||||||||||
| 6.Other | |||||||||||||||
| (V) Special reserve | |||||||||||||||
| 1.Amount withdrawn in the current period | |||||||||||||||
| 2.Amount used in the current period | |||||||||||||||
| (VI) Others | 26,688,595.19 | 26,688,595.19 | 6,420,249.49 | 33,108,844.68 | |||||||||||
| IV. Ending balance of the current year | 1,238,254,672.00 | 1,960,086,381.40 | 80,017,965.68 | -42,563,250.94 | 151,359,957.53 | 1,696,564,549.49 | 4,923,684,343.80 | 94,116,154.92 | 5,017,800,498.72 |
8. Parent company's statement of changes in owner's equity
Amount in the current period
Unit: yuan
| Items | Semi-annual data in 2022 | |||||||||||
| Share capital | Other equity instruments | Capital public reserve | Minus: treasury shares | Other comprehensive income | Special reserve | Surplus reserves | Retained earnings | Other | Total owners' equity | |||
| Preferred shares | Perpetual bonds | Other | ||||||||||
| I. Ending balance of last year | 1,256,978,072.00 | 2,189,685,216.22 | 242,525,433.60 | 370,109.41 | 186,369,113.30 | 1,064,111,338.27 | 4,454,988,415.60 | |||||
| Plus: changes in accounting policies | ||||||||||||
| Early error correction | ||||||||||||
| Other | ||||||||||||
| II. Beginning balance of the current year | 1,256,978,072.00 | 2,189,685,216.22 | 242,525,433.60 | 370,109.41 | 186,369,113.30 | 1,064,111,338.27 | 4,454,988,415.60 | |||||
| III. Amount of changes in increase or decrease in the current period (decrease marked with "-") | 14,049,300.00 | 78,626,637.56 | 39,344,623.76 | 292,266.61 | 6,901,206.70 | 60,524,787.11 | ||||||
| (I) Total comprehensive income | 292,266.61 | 69,614,215.30 | 69,906,481.91 | |||||||||
| (II) Capital invested and reduced by owners | 14,049,300.00 | 78,626,637.56 | 39,344,623.76 | 53,331,313.80 | ||||||||
| 1.Ordinary shares invested by owners | 14,049,300.00 | 54,522,812.37 | 68,572,112.37 | |||||||||
| 2.Capital contributed by holders of other equity instruments | ||||||||||||
| 3.Amount of share-based payment included in owner's equity | 24,103,825.19 | 24,103,825.19 | ||||||||||
| 4.Other | 39,344,623.76 | -39,344,623.76 | ||||||||||
| (III) Profit distribution | -62,713,008.60 | -62,713,008.60 | ||||||||||
| 1.Withdraw surplus reserve | ||||||||||||
| 2.Distribution to owners (or shareholders) | -62,713,008.60 | -62,713,008.60 | ||||||||||
| 3.Other | ||||||||||||
| (IV) Internal carryover of owner's equity | ||||||||||||
| 1.Provident funds converted into capital (or capital stock) | ||||||||||||
| 2.Conversion of surplus reserves to additional capital (or capital stock) | ||||||||||||
| 3.Surplus public reserve to compensate losses | ||||||||||||
| 4.Change of defined benefit plans carried forward to retained earnings | ||||||||||||
| 5.Other comprehensive income carried forward into retained earnings | ||||||||||||
| 6.Other | ||||||||||||
| (V) Special reserve | ||||||||||||
| 1.Amount withdrawn in the current period | ||||||||||||
| 2.Amount used in the current period |
| (VI) Others | ||||||||||||
| IV. Ending balance of the current year | 1,271,027,372.00 | 2,268,311,853.78 | 281,870,057.36 | 662,376.02 | 186,369,113.30 | 1,071,012,544.97 | 4,515,513,202.71 |
Amount of the last year
Unit: yuan
| Items | Semi-annual data in 2021 | |||||||||||
| Share capital | Other equity instruments | Capital public reserve | Minus: treasury shares | Other comprehensive income | Special reserve | Surplus reserves | Retained earnings | Other | Total owners' equity | |||
| Preferred shares | Perpetual bonds | Other | ||||||||||
| I. Ending balance of last year | 1,135,216,809.00 | 1,007,315,299.41 | 80,017,965.68 | 5,569,575.04 | 151,331,439.07 | 805,337,794.69 | 3,024,752,951.53 | |||||
| Plus: changes in accounting policies | ||||||||||||
| Early error correction | ||||||||||||
| Other | ||||||||||||
| II. Beginning balance of the current year | 1,135,216,809.00 | 1,007,315,299.41 | 80,017,965.68 | 5,569,575.04 | 151,331,439.07 | 805,337,794.69 | 3,024,752,951.53 | |||||
| III. Amount of changes in increase or decrease in the current period (decrease marked with "-") | 103,037,863.00 | 1,003,519,387.80 | -252,583.99 | 167,700,623.99 | 1,274,005,290.80 | |||||||
| (I) Total comprehensive income | -252,583.99 | 224,266,148.44 | 224,013,564.45 | |||||||||
| (II) Capital invested and reduced by owners | 103,037,863.00 | 976,663,746.46 | 1,079,701,609.46 | |||||||||
| 1.Ordinary shares invested by owners | 103,037,863.00 | 982,896,579.72 | 1,085,934,442.72 | |||||||||
| 2.Capital contributed by holders of other equity instruments | ||||||||||||
| 3.Amount of share-based payment included in owner's equity | -6,232,833.26 | -6,232,833.26 | ||||||||||
| 4.Other | ||||||||||||
| (III) Profit distribution | -56,565,524.45 | -56,565,524.45 | ||||||||||
| 1.Withdraw surplus reserve | ||||||||||||
| 2.Distribution to owners (or shareholders) | -56,565,524.45 | -56,565,524.45 | ||||||||||
| 3.Other | ||||||||||||
| (IV) Internal carryover of owner's equity | ||||||||||||
| 1.Provident funds converted into capital (or capital stock) | ||||||||||||
| 2.Conversion of surplus reserves to additional capital (or capital stock) | ||||||||||||
| 3.Surplus public reserve to compensate losses | ||||||||||||
| 4.Change of defined benefit plans carried forward to retained earnings | ||||||||||||
| 5.Other comprehensive income carried forward into retained earnings | ||||||||||||
| 6.Other | ||||||||||||
| (V) Special reserve | ||||||||||||
| 1.Amount withdrawn in the current period | ||||||||||||
| 2.Amount used in the current period |
| (VI) Others | 26,855,641.34 | 26,855,641.34 | ||||||||||
| IV. Ending balance of the current year | 1,238,254,672.00 | 2,010,834,687.21 | 80,017,965.68 | 5,316,991.05 | 151,331,439.07 | 973,038,418.68 | 4,298,758,242.33 |
III. Basic information of the CompanyRegistered Chinese name of the Company: 深圳拓邦股份有限公司Address: Room 413, Area B, Tsinghua University Research Institute, High-tech Industrial Park, Yuehai Street,Nanshan District, ShenzhenLegal representative: Wu YongqiangRegistered capital: 1,271,027,372 yuanCapital stock: 1,271,027,372 yuanCompany type: company limited by shares (listing)Business scope: intelligent control of electrical products, intelligent power supply and control, high efficiencylighting products and its control, high efficiency precision motor and control R&D, production and sales.Business term: sustainable operationShenzhen Topband Co., Ltd. (hereinafter referred to as "the Company" or "Company") formerly known asShenzhen Topband Electronic Equipment Co., Ltd., is a limited liability company approved by ShenzhenAdministration for Industry and Commerce on February 9, 1996. It has obtained the business license of enterpriselegal person with the registration number of 19241377-3 and the registered capital of 2 million yuan.
On May 19, 1997, the registered capital of Shenzhen Topband Electronic Equipment Co., Ltd. was increasedto 3.2 million yuan after the resolution of the Shareholders' Meeting of Shenzhen Topband Electronic EquipmentCo., Ltd. and approved by Shenzhen Administration for Industry and Commerce.On January 10, 2001, with the resolution of the Shareholders' Meeting of Shenzhen Topband ElectronicEquipment Co., Ltd. and the approval of Shenzhen Administration for Industry and Commerce (Shenzhen) namechange NZ [2001] No. 0154224 Enterprise Name Change Approval Notice, it was agreed to change the name ofShenzhen Topband Electronic Equipment Co., Ltd. to Shenzhen Topband Electronics & Technology Co., Ltd.
On July 15, 2002, with the approval of SFG (2002) No. 24 issued by Shenzhen Municipal People's Government,it was agreed that Shenzhen Topband Electronics & Technology Co., Ltd. would be reorganized into a joint stocklimited company jointly by five shareholders, namely Wu Yongqiang, Ji Shuhai, Zhuhai Tsinghua Science ParkVenture Capital Co., Ltd., Qi Hongwei and Li Xianqian. After the reorganization, the total share capital of theCompany is 21 million yuan. Shenzhen Pengcheng Certified Public Accountants issued the Capital VerificationReport (SPSYZ (2002) No. 67) to verify the share capital of the Company. On August 16, 2002, the Company was
approved by Shenzhen Administration for Industry and Commerce to register the change of industry and commerce,in exchange for the business license of enterprise legal person with Registration No. 4403012049338. The businessperiod is from February 9, 1996 to February 9, 2046.On November 23, 2004, the registered capital of the Company was increased to 22.8 million yuan upon theresolution of the Shareholders' Meeting and the document of Shenzhen Municipal People's Government "SFG [2004]No. 38" and approved by Shenzhen Administration for Industry and Commerce.
On March 15, 2006, the registered capital of the Company was increased to 31.92 million yuan upon theresolution of the Shareholders' Meeting of the Company, and change in the industrial and commercial registrationwas handled on July 24, 2006.On June 26, 2007, the Company issued 18,080,000 A shares (face value of each share is 1 yuan) to the publicwith an increase of registered capital of 18.08 million yuan, and the registered capital after the change is 50 millionyuan by the approval of "ZJH No. 2007135" Notice on Approving the Initial Public Offering of Shenzhen TopbandElectronic Technology Co., Ltd. by China Securities Regulatory Commission. The investment business has beenverified by Shenzhen Pengcheng Certified Public Accountants Co., Ltd. and the capital verification report SPSYZ[2007] No. 059 has been issued.On August 29, 2008, according to the resolution of the Annual General Meeting of Shareholders in 2008, theCompany increased the registered capital by 50 million yuan with capital reserve, and the registered capital afterthe change was 100 million yuan. The capital increase has been verified by Shenzhen Pengcheng Certified PublicAccountants Co., Ltd., and the capital verification report SPSYZ [2008] No. 179 has been issued.The 6th Meeting of the 3rd Board of Directors of the Company in 2009 deliberated and approved the Plan onthe Distribution of Mid-term Profits in 2009: Based on the total share capital of the Company at the end of thereporting period of 100,000,000 shares, 4 shares were added in share capitals per 10 shares for all shareholdersregarding the capital reserves, and the total share capital increased by 40,000,000 shares. After the increase byconversion, the total share capital of the Company increased from 100,000,000 shares to 140,000,000 shares.On April 7, 2010, the Company held a meeting of the Board of Directors to deliberate and approve the profitdistribution plan for 2009: Based on the total share capital of 140,000,000 shares as of December 31, 2009, theCompany will pay cash dividends of 1.50 yuan (tax included) per 10 shares, and based on the total share capital of140,000,000 shares as of December 31, 2009, 2 shares will be added per 10 shares. After the increase by conversion,the total share capital of the Company increased from 140,000,000 shares to 168,000,000 shares.
The Company held the 2nd Meeting of the 4th Board of Directors in 2012 on March 26, 2012, deliberated andapproved the profit distribution plan for 2011: Based on the total share capital 168,000,000 shares of the Companyon December 31, 2011, 2 shares were additionally given to all shareholders for every 10 shares, and cash dividendof 2 yuan (tax included) was distributed. 1 share was added per 10 shares for all shareholders regarding the capitalreserves. The equity distribution was completed on May 4, 2012. After the increase by conversion, the total sharecapital of the Company increased from 168,000,000 shares to 218,400,000 million shares.According to the resolutions of the 1st Extraordinary General Meeting of Shareholders of the Company in2014, after the approval of ZJXK [2014] No. 1425 of China Securities Regulatory Commission, the Company'snon-public offering did not exceed 36,935,679 new shares. On February 5, 2015, the Company privately issued23,521,768 A shares to specific investors at the price of 13.63 yuan per share. After the issuance, the registeredcapital of the Company was increased to 241,921,768.00 yuan.
According to the Revised Draft of the Second Option Incentive Plan (Draft) of Shenzhen Topband Co., Ltd.reviewed and approved by the Company in 2012 Annual General Meeting of Shareholders and the Proposal on theSecond Exercise Period of the Second Phase Stock Option Incentive Plan Meeting with the Exercise Conditionsand Exercisable Rights, which was deliberated and approved by the 9th Meeting of the 5th Board of Directors ofthe Company, the total exercise was 3,101,700 stock options in 2015, exercise price was 5.72 yuan each. Afterexercise, the registered capital of the Company was increased to 245,023,468.00 yuan.
According to the Restricted Stock Incentive Plan (Draft) of Shenzhen Topband Co., Ltd. in 2015 approved bythe 2nd Extraordinary General Meeting of Shareholders in 2015 and the Proposal on Adjusting the Number ofRestricted Stock Incentive Plans Granted and List of Incentive Objects in 2015 approved at the 18th Meeting of the5th Board of Directors, the Company granted 359 incentive objects restricted stocks 17,633,000 shares. Theregistered capital of the Company was increased to 262,656,468.00 yuan after the issuance.
According to the resolution of the 3rd Extraordinary General Meeting of Shareholders of the Company in 2015,and approved by the Reply to the Approval of Non-public Development of Shares of Shenzhen Topband Co., Ltd.issued by China Securities Regulatory Commission (ZJXK [2016] No. 205), the Company non-publicly issued35,864,345 A shares to specific investors on March 28, 2016, with the issuance price of 16.66 yuan per share. Theregistered capital of the Company was increased to 298,520,813.00 yuan after the issuance.
According to the Revised Draft of the Second Phase Stock Option Incentive Plan (Draft) of Shenzhen TopbandCo., Ltd. deliberated and approved by the 2012 Annual General Meeting of Shareholders of the Company and the
Proposal on the Third Exercise Period of the Second Phase Stock Option Incentive Plan Meeting ExerciseConditions and Exercisable Rights deliberated and approved by the 23rd Meeting of the 5th Board of Directors ofthe Company, a total of 4,594,000 shares were exercised in 2016. After exercise, the registered capital of theCompany was increased to 303,114,813.00 yuan.According to the Proposal on Repurchase and Cancellation of Some Restricted Stocks deliberated andapproved by the 24th Meeting of the 5th Board of Directors of the Company held on April 26, 2016, as for theincentive object who resigned due to personal reasons and no longer met the conditions of becoming the incentiveobject, those 72,000 restricted stocks that have not been unlocked held by the incentive object were repurchasedand cancelled. After cancellation, the registered capital of the Company was reduced to 303,042,813.00 yuan.The 2015 Annual General Meeting of Shareholders of the Company was held on May 11, 2016, and the 2015annual equity distribution plan was approved. Based on the Company's existing total share capital of 301,520,013shares, the Company distributed 1.50 yuan in cash to all shareholders for every 10 shares. At the same time, theCompany increased 5 shares to all shareholders for every 10 shares with the capital accumulation fund, and thecapital increased by 150,760,006 yuan. After the capital increased, the registered capital of the Company wasincreased to 453,802,819.00 yuan.According to the Proposal on Repurchase and Cancellation of Some Restricted Stocks deliberated andapproved by the 28th Meeting of the 5th Board of Directors of the Company held on October 26, 2016, as for theincentive object who resigned due to personal reasons and no longer met the conditions of becoming the incentiveobject, those 331,500 shares of restricted stocks that have not been unlocked held by the incentive object wererepurchased and cancelled. After cancellation, the registered capital of the Company was reduced to 453,471,319.00yuan.The 2016 Annual General Meeting of Shareholders of the Company was held on April 11, 2017, and the 2016annual equity distribution plan was approved. Based on the Company's existing total share capital of 453,471,319shares, the Company distributed 1.50 yuan in cash to all shareholders for every 10 shares. At the same time, theCompany increased 5 shares to all shareholders for every 10 shares with the capital accumulation fund, and thecapital increased by 226,735,659 yuan. After the capital increased, the registered capital of the Company wasincreased to 680,206,978.00 yuan.According to the Proposal on Repurchase and Cancellation of Some Restricted Stocks deliberated andapproved by the 32nd Meeting of the 5th Board of Directors of the Company held on June 13, 2017, as for the
incentive object who resigned due to personal reasons and no longer met the conditions of becoming the incentiveobject, the 346,500 restricted stocks that have not been unlocked held by the incentive object were repurchased andcancelled. After cancellation, the registered capital of the Company was reduced to 679,860,478.00 yuan.The 2017 Annual General Meeting of Shareholders of the Company was held on April 17, 2018, and the 2017annual equity distribution plan was approved. Based on the Company's existing total share capital of 679,860,478shares, the Company distributed 1.0 yuan in cash to all shareholders for every 10 shares. At the same time, theCompany increased 5 shares to all shareholders for every 10 shares with the capital accumulation fund, and thecapital increased by 339,930,239.00 yuan. After the capital increased, the registered capital of the Company wasincreased to 1,019,790,717.00 yuan.
According to the Proposal on Repurchase and Cancellation of Some Restricted Stocks deliberated andapproved by the 6th Meeting of the 6th Board of Directors of the Company held on July 27, 2018, as for the incentiveobject who resigned due to personal reasons and no longer met the conditions of becoming the incentive object, the744,186 restricted stocks that have not been unlocked held by the incentive object were repurchased and cancelled.After cancellation, the registered capital of the Company was reduced to 1,019,046,531.00 yuan.According to the Proposal on Repurchase and Cancellation of Some Restricted Stocks deliberated andapproved by the 6th Meeting of the 6th Board of Directors of the Company held on July 27, 2018, as for the incentiveobject who resigned due to personal reasons and no longer met the conditions of becoming the incentive object, the744,186 restricted stocks that have not been unlocked held by the incentive object were repurchased and cancelled.After cancellation, the registered capital of the Company was reduced to 1,019,046,531.00 yuan.According to the Proposal on Repurchase and Cancellation of Some Restricted Stocks deliberated andapproved by the 15th Meeting of the 6th Board of Directors session Company held on July 26, 2019, as for theincentive object who resigned due to personal reasons and no longer met the conditions of becoming the incentiveobject, the 310,800 restricted stocks that have not been unlocked held by the incentive object were repurchased andcancelled. After cancellation, the registered capital of the Company was reduced to 1,018,735,692 yuan. With theapproval of "SZS [2019] No. 164 Document" issued by Shenzhen Stock Exchange, the Company's 573 million yuanconvertible corporate bonds will be listed and traded in Shenzhen Stock Exchange from April 8, 2019. SinceSeptember 16, 2019, bondholders can exercise the right to transfer shares. As of December 31, 2019, the Companyhas transferred 2,223.00 shares of bonds and increased the share capital by 40,077.00 yuan. After the share transfer,the registered capital of the Company will increase to 1,018,775,769.00 yuan.
The 22nd Meeting of the 6th Board of Directors deliberated and approved the Proposal on the First ExercisePeriod of 2018 Stock Option Incentive Plan Meeting the Exercise Conditions and Exercisable Rights and Proposalon Adjustment of the Incentive Objects and the Number of Stock Options of 2018 Stock Option Incentive Plan:
there are 606 incentive objects in the first exercise period of the 2018 stock option incentive plan in the Company,in total of 12,014,700 stock options, that meet the exercise conditions and can be exercised. The Company plans toadopt the independent exercise mode. As of December 31, 2020, 606 incentive objects in the first exercise periodhad completed the exercise of 12,014,700 stock options, increased the Company's share capital by 12,014,700 yuan,and the share capital increased to 1,030,790,469.00 yuan after the exercise of the stock options.
According to the "SZS [2019] No. 164 Document" by Shenzhen Stock Exchange, the Company's convertiblecorporate bonds of 573 million yuan are listed and traded on Shenzhen Stock Exchange from April 8, 2019. SinceSeptember 16, 2019, the bondholders can exercise the equity transfer. In 2020, a total of 5,712,224.00 bonds wereconverted into shares, increasing the share capital by 104,426,340.00 yuan. After the conversion, the registeredcapital of the Company was increased to 1,135,216,809.00 yuan.
On August 18, 2020, the China Securities Regulatory Commission issued the Reply on Approving the Non-Public Offering of Shares by Shenzhen Topband Co., Ltd. (ZJXK [2020] No. 1865), and approved the Company'snon-public offering of no more than 309,243,655 new shares. In June 2021, the non-public issuance of 92,105,263new shares was listed on the Stock Exchange,with the registered capital increased by 92,105,263 yuan, and theCompany's registered capital increased to 1,238,254,672.00 yuan after the change.
The Company granted 33,544,320 restricted stocks to 1,224 eligible incentive objects on November 2, 2021,the grant date, at a grant price of 7.23 yuan per share. The restricted stocks are set with a restricted period. In thethree fiscal years from 2022 to 2024, the performance assessment will be carried out on an annual basis and therestricted stocks will be lifted at a ratio of 30%, 30% and 40%, respectively. The 14,838,920 shares granted comefrom the repurchase shares, and 18,705,400 shares come from private placement. By granting the restricted stocks,the registered capital of the Company increases by 18,705,400 shares, and the registered capital increases to1,256,978,072.00 yuan after the change.
On March 18, 2022, the 21st Meeting of the 7th Board of Directors and the 17th Meeting of the 7th Board ofSupervisors deliberated and approved the Proposal on the Third Exercise Period of 2018 Stock Option IncentivePlan Meeting the Exercise Conditions and Exercisable Rights and the Proposal on Adjustment of the IncentiveObjects and the Number of Stock Options of 2018 Stock Option Incentive Plan. There were 543 incentive objects
in the third exercise period to exercise their rights independently and a total of 14,049,300 stock options meetingthe exercise conditions. As of June 30, 2022, a total of 14,049,300 stock options have been exercised by 543incentive objects in the third exercise period, increasing the Company's share capital by 14.0493 million yuan. Afterthe stock options are exercised, the share capital will increase to 1,271,027,372 yuan.
(III) The financial report is approved and submitted by the Board of Directors of the Company on July 25,2022.(IV) Scope of consolidated financial statementThere are a total of 38 subsidiary companies included in the scope of the consolidated statement this time, asshown in Note VIII. (I); during the reporting period, 3 companies were newly included in the scope of consolidation,of which 3 were newly-established subsidiaries or grandson companies.IV. Preparation basis of the financial statement
1. Basis of preparation
The financial statements are based on the assumption of continuation of the Company, according to the actualtransactions, in accordance with the relevant provisions of the Accounting Standards for Business Enterprises, andbased on the following important accounting policies and accounting estimates.
2. Continuation
The Company has no major doubt on the ability of continuation and other influencing factors for 12 monthssince the end of the reporting period.V. Significant accounting policies and accounting estimatesSpecific accounting policies and accounting estimates reminders:
None
1. Statement on compliance with Accounting Standards for Business Enterprises
The financial statements prepared on the basis of above compiling foundation give a true and full view of thefinancial position, operating results, cash flow and other relevant information of the Company, conforming to therequirements of the latest Accounting Standards for Business Enterprises and its application guidelines,
interpretations as well as other relevant provisions (collectively referred to as "Accounting Standards for BusinessEnterprises") issued by the Ministry of Finance.Additionally, the presentation and disclosure requirements of the No. 15 Rules for the Preparation andPresentation of Information Disclosure of Companies Offering Securities to the Public - General Provisions onFinancial Reporting (revised in 2014) (hereinafter referred to as "No. 15 Document (revised in 2014)") and theNotice on Matters Related to the Implementation of the New Accounting Standards for Business Enterprises byListed Companies (KJBH [2018] No. 453) were taken as reference in these financial statements.
2. Accounting period
The accounting period of the Company is divided into an annual period and an interim period, and an interimperiod refers to the reporting period shorter than a complete accounting year. The financial year of the Companyadopts the Gregorian calendar year, that is, from January 1 to December 31 every year.
3. Operating cycle
The financial year of the Company adopts the Gregorian calendar year, that is, from January 1 to December 31every year.
4. Recording currency
RMB is the currency of the main economic environment in which the Company and its domestic subsidiariesoperate, so the Company and its domestic subsidiaries use RMB as the recording currency. The recording currencyfor the foreign subsidiaries of the Company shall be determined in accordance with the currency of the maineconomic environment in which they operate. The financial statements of the Company are denominated in RMB.
5. Accounting treatment for business merger under the same control and under different control
The Company, at the date of acquisition, recognizes the difference of the combination cost greater than the fairvalue share of the acquiree's net identifiable assets obtained in the combination as goodwill; if the combination costis less than the fair value share of the acquiree's net identifiable assets obtained in the combination, the Companyfirst re-checks the fair value of the acquiree's identifiable assets, liabilities and contingent liabilities as well as themeasurement of combination cost. The difference shall be included in the current profits and losses, if the
combination cost is still less than the fair value share of the acquiree's net identifiable assets obtained in thecombination.The business combination under different control realized step by step through multiple transactions shall betreated as follows:
1. Adjusting the initial investment cost of long-term equity investment. If the equity held before the acquisitiondate is calculated with the equity method, it shall be re-measured as per the fair value of the equity at the date ofacquisition, and the difference between the fair value and its book value shall be included in the current investmentincome; if the equity of the acquiree held before the acquisition date involves changes in other comprehensiveincome and other equity accounted under the equity method, it shall be transferred to the current income on theacquisition date, excluding other comprehensive income arising from changes in net liabilities or net assets of thedefined benefit plan re-measured by the investee.
2. Recognizing goodwill (or amount included in the current profits and losses). The initial investment cost oflong-term equity investment after the first step adjustment is compared with the fair value share of net identifiableassets of subsidiaries at the date of acquisition. If the former is greater than the latter, the difference is recognizedas goodwill, otherwise, it is included in the current profits and losses.
The situation of disposing equity step by step through multiple transactions to losing control over subsidiaries:
1. Judging whether the transactions in the process of disposing equity step by step to losing control oversubsidiaries belong to the principle of "package transaction"
The terms, conditions and economic impact of transactions relating to disposal of equity investment insubsidiaries meet one or more of the following circumstances, which generally indicates that multiple transactionsshall be accounted for as a package transaction:
(1) Such transactions are concluded at the same time or under the situation of considering the impact on eachother;
(2) Only can the unity of such transactions reach an integral commercial result;
(3) The occurrence of a transaction is based on the occurrence of at least one of other transactions;
(4) A transaction is regarded as uneconomic, but being economic when regarded along with other transactions.
2. Accounting treatment for transactions in the process of disposing equity step by step to losing control oversubsidiaries belonging to "package transaction"
If the transactions relating to disposal of equity investment in subsidiaries to losing control over subsidiariesbelong to "package transaction", these shall be treated as a transaction for disposing the subsidiary and losing control;however, the difference between the price of every disposal and the net assets share held in the subsidiarycorresponding to the disposal of investment before losing control shall be recognized as other consolidated incomein the consolidated financial statements, which shall be transferred to the current profits and losses at the time oflosing control.
In the consolidated financial statements, the remaining equity shall be re-measured according to its fair valueon the date of losing control. The difference between the sum of consideration obtained from equity disposal andfair value of remaining equity less the net assets share held in original subsidiary and continuously calculated fromthe date of acquisition as per the original shareholding proportion shall be included in the investment income of thecurrent period of loss of control. Other comprehensive income related to the equity investment in original subsidiaryshall be transferred to the current investment income at the time of losing control.
3. Accounting treatment for transactions in the process of disposing equity step by step to losing control oversubsidiaries not belonging to "package transaction"
If no loss of control occurs in the disposal of the investment in the subsidiary, the difference between thedisposal price and the net assets share held in the subsidiary corresponding to the disposal of investment in theconsolidated financial statements shall be included in the capital reserve (capital premium or share premium). If thecapital premium is insufficient to offset, the retained earnings shall be adjusted.
In case of losing control over the investment in a subsidiary, the remaining equity shall be re-measuredaccording to its fair value on the date of loss of control in the consolidated financial statements. The differencebetween the sum of consideration obtained from equity disposal and fair value of remaining equity less the net assetsshare held in original subsidiary and continuously calculated from the date of acquisition as per the originalshareholding proportion shall be included in the investment income of the current period of loss of control. Othercomprehensive income related to the equity investment in original subsidiary shall be transferred to the currentinvestment income at the time of losing control.
6. Compiling method of consolidated financial statements
The consolidated financial statements, based on the financial statements of the parent company and itssubsidiaries, are prepared by the Company in accordance with the Accounting Standards for Business EnterprisesNo. 33-Consolidated Financial Statements and with reference to other relevant information.During the combination, the internal equity investment and the owner's equity of the subsidiaries, the internalinvestment income and the profit distribution of the subsidiaries, the internal transactions, the internal claims anddebts are offset. The accounting policies adopted by the subsidiaries shall be consistent with those adopted by theparent company.
7. Classification of joint venture arrangements and accounting treatment for joint operation
1. Identification and classification of joint venture arrangements
Joint venture arrangement refers to an arrangement under joint control by two or more parties. The joint venturearrangement has the following features: 1) all parties are bound by the arrangement; 2) two or more parties jointlycontrol the arrangement. No single party can control the arrangement solely, and any party with joint control overthe arrangement can prevent other parties or a combination of party alliance from controlling the arrangement alone.
Joint control refers to the common control of an arrangement in accordance with relevant agreements, and theactivities related to the arrangement must be agreed upon by the parties holding control right before the decisioncan be made.
Joint venture arrangement includes joint operation and joint venture. Joint operation is the joint venturearrangement in which the joint venture party holds the relevant assets of the arrangement and assumes the relevantliabilities. Joint venture refers to a joint venture arrangement in which the joint venture party has rights only to thenet assets of the arrangement.
2. Accounting treatment for joint venture arrangement
Parties in joint operation shall recognize the following items related to their share of interests in joint operation,and perform accounting treatment in accordance with the relevant provisions of the Accounting Standards forBusiness Enterprises: 1) recognize the assets held separately and those held jointly as per their share; 2) recognizethe liabilities assumed separately and those assumed jointly as per their share; 3) recognize the income generatedfrom the sale of its share of joint operation output; 4) recognize the income from the sale of the output of the joint
operation as per its share; (5) recognize the expenses incurred separately and those incurred in the joint operationas per its share.
The parties of a joint venture shall make accounting treatment for the investment in the joint venture inaccordance with the Accounting Standards for Business Enterprises No. 2 - Long-Term Equity Investment.
8. Standards for determining cash and cash equivalents
Cash in the cash flow statement refers to cash on hand and deposits that are available for payment at any time.Cash equivalents refer to investments with short term (generally due within three months from the date of purchase),strong liquidity, easy to convert into known amount of cash and low risk of value change.
9. Foreign currency transaction and foreign currency statement translation
1. The translation of foreign currency transactions
When foreign currency transactions are initially recognized, they are converted into RMB at the spot exchangerate on the transaction date. On the balance sheet date, foreign currency monetary items are translated at the spotexchange rate on the balance sheet date. The exchange difference arising from different exchange rates shall beincluded in the current profits and losses, except for the exchange difference of the principal and interest of foreigncurrency special borrowings related to the acquisition and construction of assets that meet the capitalizationconditions; foreign currency non-monetary items measured at historical cost shall be translated at the spot exchangerate on the transaction date, with the amount in RMB maintaining unchanged; foreign currency non-monetary itemsmeasured at fair value shall be translated at the spot exchange rate on the date of determining fair value, with thedifference included in the current profits and losses or other comprehensive income.
2. Translation of foreign currency financial statements
The assets and liabilities in balance sheet shall be translated at the spot exchange rate on the balance sheet date;except for the "retained earnings", other items in the owner's equity shall be converted at the spot exchange rate onthe transaction date; the income and expense in the income statement shall be converted at the spot exchange rateon the transaction date. The difference in translation of foreign currency financial statements generated from theabove conversion is recognized as other comprehensive income.
10. Financial instruments
1. Recognition and derecognition of financial instruments
The Company recognizes a financial asset or financial liability when it becomes a party to a financialinstrument contract.The trading of financial assets in a conventional manner shall be recognized and derecognized according to theaccounting of the trading day. Conventional trading of financial assets refers to the collection or delivery of financialassets within the time limit specified by laws and regulations or common practice in accordance with the terms ofthe contract. Trading day refers to the date when the Company promises to buy or sell financial assets.
If the following conditions are met, the financial assets (or a part of financial assets, or a part of a set of similarfinancial assets) shall be derecognized, i.e., they shall be written off from its accounts and balance sheets:
(1) The right to receive cash flow of financial assets has expired;
(2) The right to receive cash flow of financial assets has been transferred, or the Company has assumed theobligation to timely pay the full amount of the cash flow received to a third party under the "transfer agreement";and (a) has transferred substantially all the risks and rewards from the ownership of financial assets, or (b)abandoned the control of the financial asset, though almost all risks and rewards from the ownership of the financialasset are neither transferred nor retained.
2. Classification and measurement of financial assets
At the time of initial recognition, the financial assets of the Company are classified according to the Company'sbusiness model for the management of financial assets and the contractual cash flow characteristics of financialassets as follows: financial assets measured at amortized cost, financial assets measured at fair value through othercomprehensive income, and financial assets measured at fair value through current profits and losses. Thesubsequent measurement of financial assets depends on its classification.
The classification of financial assets is based on the Company's business model for the management of financialassets and the cash flow characteristics of financial assets.
(1) Financial assets measured at amortized cost
Financial assets satisfying the following conditions at the same time are classified as financial assets measuredat amortized cost: The business model for managing such financial assets by the Company is to collect contractualcash flows as the goal; the contract terms of the financial assets stipulate that the cash flow generated on a specificdate is only the payment of the principal and the interest based on the outstanding principal amount. For suchfinancial assets, the effective interest rate method is adopted, and subsequent measurement is made at amortizedcost, and the gains or losses arising from amortization or impairment are included in the current profits and losses.
For such financial assets, the effective interest rate method is adopted, and subsequent measurement is made atamortized cost, and the gains or losses arising from amortization or impairment are included in the current profitsand losses.
(2) Debt instruments investment measured at fair value with changes included in other comprehensive incomeFinancial assets that meet the following conditions at the same time are classified as financial assets measuredat fair value through other comprehensive income: The business model for managing the financial assets by theCompany is to collect contractual cash flows and to sell financial assets; The contract terms of the financial assetstipulate that the cash flow generated on a specific date is only the payment of the principal and the interest basedon the outstanding principal amount. For such financial assets, fair value is adopted for subsequent measurement.The discount or premium is amortized using the effective interest rate method and recognized as interest income orexpense. Except the impairment loss and the exchange difference of foreign currency monetary financial assets arerecognized as the current profits and losses, the changes in the fair value of such financial assets are recognized asother comprehensive income until their accumulated gains or losses are transferred into the current profits and losseswhen the financial asset is derecognized. Interest income related to such financial assets is included in the currentprofits and losses.
(3) Equity instruments investment measured at fair value with changes included in other comprehensive incomeThe Company irrevocably chooses to designate part of the non-tradable equity instrument investment asfinancial assets measured at fair value through other comprehensive income. Only the relevant dividend income isincluded in the current profits and losses, and the changes in fair value are recognized as other comprehensiveincome, until their accumulated gains or losses are transferred into retained earnings when the financial asset isderecognized.
(4) Financial assets measured at fair value with changes included in the current profits and lossesThe financial assets other than the above financial assets measured at amortized cost and those at fair valuethrough other comprehensive income are classified as financial assets measured at fair value with changes includedin the current profits and losses. At the time of initial recognition, for the purpose of elimination or significantreduction of accounting mismatch, financial assets can be designated as those measured at fair value with changesincluded in the current profits and losses. For such financial assets, fair value is used for subsequent measurement,and all changes in fair value are included in the current profits and losses.
If and only when the Company changes the business model for managing financial assets, it will reclassify allthe affected financial assets.
For the financial assets measured at fair value and whose changes are included in the current profits and losses,the relevant transaction costs are directly included in the current profits and losses, and such costs of other types offinancial assets are included in the initial recognition amount.
3. Classification and measurement of financial liabilities
The financial liabilities of the Company are classified at the initial recognition as follows: financial liabilitiesmeasured at amortized cost and financial liabilities measured at fair value through current profits and losses.
Financial liabilities that meet one of the following conditions can be designated as financial liabilities measuredat fair value through current profits and losses at the time of initial measurement: (1) such designation can eliminateor significantly reduce accounting mismatch; (2) according to the company risk management or investment strategystated in formal written documents, the management and performance evaluation for the financial liabilitiesportfolio or portfolio of financial assets and financial liabilities is conducted on the basis of fair value, which isreported to key management personnel within the Company on this basis; (3) the financial liabilities includeembedded derivatives that need to be split separately.
The Company determines the classification of financial liabilities at the time of the initial recognition. For thefinancial liabilities measured at fair value with changes included in the current profits and losses, the relevanttransaction costs are directly included in the current profits and losses, and such costs of other financial liabilitiesare included in the initial recognition amount.
The subsequent measurement of financial liabilities depends on its classification:
(1) Financial liabilities measured at amortized cost
For such financial liabilities, the effective interest rate method is adopted and the subsequent measurement isconducted as per the amortized cost.
(2) Financial liabilities measured at fair value with changes included in the current profits and losses
Such financial liabilities include tradable financial liabilities (including derivatives that belong to financialliabilities) and financial liabilities designated upon initial recognition as those measured at fair value with changesincluded in the current profits or losses.
4. Set off of financial instruments
If the following conditions are met at the same time, financial assets and financial liabilities are presented inthe balance sheet at the net amount after offsetting each other: the Company has the legal right to offset therecognized amount, which is currently enforceable; they plan to settle at the net amount, or realize the financialassets and pay off the financial liabilities at the same time.
5. Impairment of financial assets
The Company recognizes the loss provision based on the expected credit loss for the financial assets measuredat the amortized cost, the debt instrument investment and financial guarantee contract measured at the fair valueand whose changes are included in other comprehensive income. The term "credit loss" refers to the differencebetween all the contractual cash flows that the Company discounted at the original effective interest rate andreceived according to the contract and all the expected cash flows, i.e., the present value of all the cash shortage.
The Company, taking into account all reasonable and well founded information (including forward-lookinginformation) estimates the expected credit losses of financial assets measured at amortized cost and financial assets(debt instruments) measured at fair value with changes included in other comprehensive income in a single orcombined way.
(1) Measurement of expected credit loss
If the credit risk of the financial instrument has increased significantly since the initial recognition, theCompany measures its loss provision according to the amount equivalent to the expected credit loss of the financialinstrument in the whole duration; if the credit risk of the financial instrument has not increased significantly sincethe initial recognition, the Company measures its loss provision according to the amount equivalent to the expectedcredit loss of the financial instrument in the next twelve months. The increased or reversed amount of the lossprovisions arising therefrom shall be included in the current profits and losses as impairment losses or gains. Thespecific assessment of credit risk by the Company is detailed in the Note "IX. Risks Associated with FinancialInstruments".
Generally, if it is overdue for more than 30 days, the Company considers that the credit risk of the financialinstrument has increased significantly, unless there is conclusive evidence to prove that the credit risk of thefinancial instrument has not increased significantly since the initial recognition.
To be specific, the Company divides the credit impairment process of financial instruments that have not beenimpaired at the time of purchase or origination into three stages, with different accounting treatment for theimpairment of financial instruments at different stages:
First stage: credit risk has not increased significantly since initial recognitionFor the financial instrument at this stage, the enterprise shall measure the loss provision according to theexpected credit loss in the next 12 months, and calculate the interest income as per its book balance (i.e. withoutdeducting the impairment provision) and the actual interest rate (if the instrument is a financial asset, the samebelow).Second stage: the credit risk has increased significantly since the initial recognition, but the credit impairmenthas not occurred
For the financial instrument at this stage, the enterprise shall measure the loss provision according to theexpected credit loss of the instrument thought the whole duration, and calculate the interest income as per its bookbalance and the actual interest rate.Third stage: credit impairment occurs after initial recognitionFor the financial instrument at this stage, the enterprise shall measure the loss provision according to theexpected credit loss of the instrument thought the whole duration, but the calculation of interest income is differentfrom the financial assets at the first two stages. For the financial assets with credit impairment, the enterprise shallcalculate the interest income according to its amortized cost (book balance minus accrued provision for impairment,i.e. book value) and the actual interest rate.For the financial assets with credit impairment at the time of purchase or origination, the enterprise shall onlyrecognize the change of expected credit loss in the whole duration after initial recognition as loss provision, andcalculate the interest income as per its amortized cost and the effective interest rate adjusted by credit.
(2) For financial instruments with low credit risk on the balance sheet date, the Company directly assumes thatthe credit risk of such instruments has not increased significantly since the initial recognition, while not comparingthem with the credit risk at the time of initial recognition.
A financial instrument may be considered to have a lower credit risk if the enterprise recognizes that thefinancial instruments feature low default risk, the borrower is able to fulfill its obligations to pay the contractualcash flow in the short term, and that even if there are adverse changes in economic situation and operatingenvironment over a longer period of time, it does not necessarily reduce the borrower's ability to fulfill its obligationsto pay the contractual cash flow.
(3) Receivables and lease receivables
The Company measures the loss provisions as per the amount of expected credit losses throughout the wholeduration by the use of simplified model for expected credit loss for receivables specified in Accounting Standardsfor Business Enterprises No. 14 - Income, excluding significant financing components (including cases in whichfinancing components in contracts not exceeding one year are not taken into account in accordance with thestandards).The Company makes accounting policy choices to adopt a simplified model for expected credit loss, i.e.,measuring the loss provisions as per the amount equivalent to the expected credit loss throughout the whole durationfor receivables including significant financing components and lease receivables regulated by Accounting Standardsfor Business Enterprises No. 21 - Leasing.
6. Transfer of financial assets
If the Company has transferred almost all risks and rewards in the ownership of financial assets to the transferee,the financial assets shall be derecognized, and if it retains almost all risks and rewards in the ownership of thefinancial assets, the financial assets shall not be derecognized.
If the Company neither transfers nor retains almost all the risks and rewards in the ownership of the financialasset, the following conditions shall be referred to: if it gives up the control over the financial asset, it shall terminatethe recognition of the financial asset and recognize the assets and liabilities generated; if it does not abandon thecontrol over the financial asset, the relevant financial assets shall be recognized according to the extent to which itcontinues to be involved in the transferred financial asset, and the relevant liabilities shall be recognized accordingly.
If the financial guarantee is provided to the transferred financial assets to continue to be involved, the assetsgenerated from the continued involvement shall be recognized according to the lower of the book value of thefinancial assets and the amount of financial guarantee. Financial guarantee amount refers to the maximum amountthat will be required to be repaid out of consideration received.
11. Notes receivable
The Company divides notes receivable into two portfolios of bank acceptance bills and commercial acceptancebills by type of financial instrument. With respect to bank acceptance bills, the Company considers its overduedefault risk to be 0 for it has low overdue credit loss which has not significantly increased since the initial recognition,because the acceptance bank pays the payee or holder a certain amount unconditionally when the bill is due. Inrespect of commercial acceptance bills, the Company believes that the probability of default is correlated with the
aging, and the transfer provision shall be accrued according to the accounting estimate policy of expected creditloss of above accounts receivable.
12. Accounts receivable
The Company measures the loss provisions as per the amount of expected credit losses throughout the wholeduration by the use of simplified model for expected credit loss for receivables specified in Accounting Standardsfor Business Enterprises No. 14 - Income, excluding significant financing components (including cases in whichfinancing components in contracts not exceeding one year are not taken into account in accordance with thestandards). The increased or reversed amount of loss provisions generated therefrom shall be included in the currentprofits and losses as impairment losses or gains.The Company has implemented Accounting Standard No. 22 - Recognition and Measurement of FinancialInstruments (CK [2017] No. 7) since January 1, 2019. The Company believes that the probability of default is relatedto the aging, which is still a mark of whether the credit risk of the Company's accounts receivable increasessignificantly, after it has reviewed the appropriateness of the provision for bad debts receivable in previous yearsbased on the Company's historical bad debt losses. Therefore, credit risk loss of the Company's accounts receivableis still estimated on the basis of aging according to the original loss ratio of previous years. The accounting policiesfor measuring overdue credit loss of accounts receivable adopted by the Company are as follows:
1. Receivables with significant individual amount and individual provision for bad debts
Significant individual amount refers to the amount of which the ending balance of individual receivables ismore than 1 million yuan.
At the end of the period, a separate impairment test will be carried out on the individual receivables withsignificant amount. If there is objective evidence that it is impaired, the impairment loss shall be recognized withprovision for bad debts according to the difference between the present value of future cash flow and the book value.
2. Receivables with provision for bad debts by portfolio
The individual receivables with not significant amount at the end of the period, together with the receivablesthat have not been impaired after separate test, are divided into several portfolios according to the aging as the creditrisk characteristics, and the impairment loss is calculated and determined according to a certain proportion of theending balance of these receivables portfolio (the impairment test can be conducted separately), with provision forbad debts.
Except for the receivables for which impairment provision has been made separately, the Company determinesthe proportion for following bad debt provision based on the actual loss rate of the portfolio of the same or similarreceivables in previous years with the aging of receivables as the credit risk feature and in combination with thecurrent situation:
| Aging | Estimated loss of accounts receivable (note) | Estimated loss of other receivables |
| Within 1 year (including 1 year) | 3.10% | 5.00% |
| 1-2 years (including 2 years) | 9.04% | 10.00% |
| 2-3 years (including 3 years) | 22.11% | 30.00% |
| 3-4 years (including 4 years) | 47.51% | 50.00% |
| 4-5 years (including 5 years) | 84.26% | 80.00% |
| Above 5 years | 100.00% | 100.00% |
| Including: those that have been determined to be irrecoverable | Write-off | Write-off |
Note: when measuring the expected credit loss of receivables, the Group has referred to the historicalexperience of credit loss and adjusted it based on forward-looking estimates.
3. Receivables with not significant amount but with single provision for bad debts
Reasons for single provision for bad debts: the Company conducts a separate impairment test for thereceivables with the following characteristics, although its amount is not significant. If there is objective evidencethat the receivables are impaired, the impairment loss shall be recognized with provision for bad debts according tothe difference between the present value of future cash flow and the book value; receivables that are in dispute withthe other party or involved in litigation or arbitration; receivables that have obvious indications that the debtor islikely to be unable to perform the repayment obligation, etc.
Method for bad debt provision: the impairment test shall be conducted separately. If there is objective evidencethat it has been impaired, the impairment loss shall be recognized with provision for bad debts according to thedifference between the present value of future cash flow and its book value.
13. Receivables financing
Financial assets that meet the following conditions at the same time are classified as financial assets measuredat fair value through other comprehensive income: The business model for managing the financial assets by theCompany is to collect contractual cash flows and to sell financial assets; The contract terms of the financial assetstipulate that the cash flow generated on a specific date is only the payment of the principal and the interest basedon the outstanding principal amount.
If the Company transfers the receivables held by it in the form of discount or endorsement, which is frequentand involves a large amount, and its management business mode is essentially the collection and sale of thecontractual cash flow, it is classified into financial assets whose changes are measured at fair value and included inother comprehensive income in accordance with the accounting standards of financial instruments.
14. Other receivables
Recognition method and accounting treatment method for expected credit loss of other receivables
The Company measures the impairment loss by an amount equivalent to the expected credit loss within thenext 12 months or over the entire duration, depending on whether the credit risk of other receivables has increasedsignificantly since the initial recognition. In addition to other receivables with individual credit risk assessment,they are divided into different portfolios based on their credit risk characteristics:
| Items | Basis for determining the portfolios |
| Risk-free portfolio | This portfolio is a risk-free account receivable. |
| Aging portfolio | The credit risk of the portfolio is characterized by the aging of receivables. |
15. Inventories
1. Classification of inventories
Inventories refer to the finished products or commodities held by a company for sale, the unfinished productsin the process of production and outsourced processing, and the materials and supplies consumed for production orrendering of labor service in daily activities of the Company.
The Company's inventories mainly include raw materials (including auxiliary materials and wrappage), outsideprocessing materials, unfinished products, self-made semi-finished products, goods on hand and low valueconsumables.
2. Pricing method of delivered inventories
The delivered inventories are subject to the weighted-average system.
3. Determination basis for net realizable value of the inventory and counting and drawing method for inventoryfalling price reserves
On the balance sheet date, the inventories are measured at the lower of cost and net realizable value, and theinventory revaluation reserves are calculated at the difference between the cost of inventory category and the netrealizable value. The net realizable value of the inventories ready for sale is determined at the estimated sale price
of such inventories minus the estimated sales expenses and relevant taxes during normal production and operation,and that of the inventories to be processed is determined at the estimated sale price of the finished products minusthe costs, sales expenses and relevant taxes estimated to be incurred up to completion during normal production andoperation. On the balance sheet date, the net realizable values are determined separately and compared with thecorresponding costs to determine the amount of withdrawal or reversal of inventory revaluation reserve if a part ofinventory is subject to the contractual price agreement and the rest is not.Net realizable value refers to the amount of the estimated sale price of the inventories minus the costs, salesexpenses and relevant taxes estimated to be incurred up to completion in daily activities. For the provision ofinventory revaluation reserve, it is made based on a single inventory item for various inventories and in a combinedmanner for the inventories which are related to the product line produced and sold in the same region, difficult tobe measured separately from other items and for the same or similar end use or purpose.
4. Inventory system
Perpetual inventory system is applied for the inventories.
5. Amortization method of low value consumables and packaging materials
Both low value consumables and wrappage are amortized with one-off amortization method when they arereceived.
1. Classification of inventories
Inventories refer to the finished products or commodities held by a company for sale, the unfinished productsin the process of production and outsourced processing, and the materials and supplies consumed for production orrendering of labor service in daily activities of the Company.
The Company's inventories mainly include raw materials (including auxiliary materials and wrappage), outsideprocessing materials, unfinished products, self-made semi-finished products, goods on hand and low valueconsumables.
2. Pricing method of delivered inventories
The delivered inventories are subject to the weighted-average system.
3. Determination basis for net realizable value of the inventory and counting and drawing method for inventoryfalling price reserves
On the balance sheet date, the inventories are measured at the lower of cost and net realizable value, and theinventory revaluation reserves are calculated at the difference between the cost of inventory category and the net
realizable value. The net realizable value of the inventories ready for sale is determined at the estimated sale priceof such inventories minus the estimated sales expenses and relevant taxes during normal production and operation,and that of the inventories to be processed is determined at the estimated sale price of the finished products minusthe costs, sales expenses and relevant taxes estimated to be incurred up to completion during normal production andoperation. On the balance sheet date, the net realizable values are determined separately and compared with thecorresponding costs to determine the amount of withdrawal or reversal of inventory revaluation reserve if a part ofinventory is subject to the contractual price agreement and the rest is not.Net realizable value refers to the amount of the estimated sale price of the inventories minus the costs, salesexpenses and relevant taxes estimated to be incurred up to completion in daily activities. For the provision ofinventory revaluation reserve, it is made based on a single inventory item for various inventories and in a combinedmanner for the inventories which are related to the product line produced and sold in the same region, difficult tobe measured separately from other items and for the same or similar end use or purpose.
16. Contractual assets
None
17. Contractual costs
None
18. Assets held for sale
The Company classifies corporate components (or non-current assets) that meet the following conditions asthe assets held for sale: (1) The corporate components can be sold immediately under current background inaccordance with the practice of sales of such assets or disposal portfolio in similar transactions; (2) The sale is verylikely to take place and expected to be completed within one year since a resolution has been made on a sale planand a definite purchase commitment has been obtained(definite purchase commitment refers to a legally bindingpurchase agreement that is signed by a company with other parties and indicates the important clauses with respectto the transaction price, time and severe penalties for breach of contract to minimize the possibility of majoradjustment or revocation of the agreement.). It has been approved by the relevant authority or regulators inaccordance with relevant regulations.
The Company adjusted the estimated net residual value of the asset held for sale to the net amount (not morethan the original book value of such asset held for sale) reflecting its fair value minus the sales expenses. If theoriginal book value is higher than the adjusted estimated net residual value, the difference between the two wasdeemed as the asset impairment loss and included in the current profits and losses, and the provision for impairmentof assets held for sale shall be made. For the amount of asset impairment loss recognized for the disposal portfolioheld for sale, it is necessary to offset the book value of goodwill in the disposal portfolio and then offset the bookvalue of the specified non-current assets in the disposal portfolio applicable for being measured in accordance withthe Standard in proportion.
If the net amount of the fair value of the non-current assets held for sale minus the sales expenses increases onthe subsequent balance sheet date, the amount written-down previously shall be recovered and reversed within theamount of asset impairment loss recognized after such non-current assets are classified as the assets held for sale.The reversed amount shall be included in the current profits and losses. The asset impairment loss recognized beforesuch non-current assets are classified as the assets held for sale shall not be reversed. If the net amount of the fairvalue of the disposal portfolio held for sale minus the sales expenses increases on the subsequent balance sheet date,the amount written-down previously shall be recovered and reversed within the amount of impairment lossrecognized for the non-current assets applicable for being measured in accordance with the Standard after suchdisposal portfolio is classified as the assets held for sale. The reversed amount shall be included in the current profitsand losses. It is not allowed to reverse the book value of the goodwill that has been written down and the impairmentloss recognized for the non-current assets applicable for being measured in accordance with the Standard beforesuch assets are classified as the assets held for sale. The book value of the subsequently reversed amount of the assetimpairment loss recognized for the disposal portfolio held for sale shall be increased according to the proportion ofthe book value of non-current assets applicable for being measured in accordance with the Standard except for thegoodwill in the disposal portfolio.
If the Company loses control over its subsidiary for some reasons such as the sale of its investment into itssubsidiary, it shall classify the entire investment into its subsidiary as the assets held for sale in the individualfinancial statement of the parent company and classify all assets and liabilities of the subsidiary as the assets heldfor sale in the consolidated financial statements provided that the investment into its subsidiary to be sold meets theconditions for classification of assets held for sale.
19. Debt investment
None
20. Other debt investment
None
21. Long-term receivables
None
22. Long-term equity investment
1. Determination of investment costs
(1) If the investment cost is incurred in business combination under the same control in which case thecombining party pays the combination consideration in cash, by transferring the non-cash assets, undertaking thedebts or issuing the equity securities, the initial investment cost shall be determined on the basis of the share of theowner's equity of the combined party in the book value of the ultimate controlling party's consolidated financialstatements on the combination date. For the difference between the initial investment cost of long-term equityinvestment and the book value of the consideration paid for combination or the total face value of the issued shares,the capital reserve (capital premium or share premium) shall be adjusted. If the capital reserve is insufficient to beoffset, the retained earnings shall be adjusted.If a business combination under the same control is realized step by step, the initial investment cost shall bedetermined on the basis of the share of the owner's equity of the combining party in book that is obtained from thecombined party on the combination date and calculated at shareholding ratio. For the difference between the initialinvestment cost and the sum of the book value of the original long-term equity investment plus the book value ofthe consideration newly paid for acquiring further shares on the combination date, the capital reserve (capitalpremium or share premium) shall be adjusted. If the capital reserve is insufficient to be offset, the retained earningsshall be adjusted.
(2) If the investment cost is incurred in the business combination under different control, the initial investmentcost shall be determined as the fair value of the consideration paid for combination on the purchase date.
(3) Investment costs other than those incurred in business combination: The initial investment cost shall be thepurchase price paid actually if the investment is obtained by paying cash, the fair value of the issued equity securitiesif by issuing the equity securities, and the value specified in the investment contract or agreement in case ofinvestment from an investor (unless the unfair value is specified in the contract or agreement).
2. Subsequent measurement and recognition methods for profits and losses
The long-term equity investment that the Company has the control over the investee shall be calculated withcost method in its individual financial statement; those under the same control or significant influence shall becalculated with equity method.
If the cost method is applied, the long-term equity investments shall be priced at the initial investment cost.The cash dividends or profits declared to be distributed by the investee other than those that have been declared butnot distributed and included in the price or consideration paid actually when the investment is obtained shall berecognized as the current investment profit, and it is necessary to consider whether the long-term investment isimpaired in accordance with the relevant policy of asset impairment.
When the equity method is applied, if the initial investment cost of a long-term equity investment is greaterthan the share of fair value of identifiable net assets entitled from the investee at the time of investment, it shall beincluded in the initial investment cost of the long-term equity investment; otherwise, the difference shall be includedin the current profits and losses and the cost of long-term equity investment shall be adjusted.
When the equity method is applied, the profits and losses on investment shall be recognized and the book valueof the long-term equity investment shall be adjusted according to share of the net profits and losses that shall beentitled or shared and have been realized by the investee after the long-term equity investment is obtained. Whenthe share of the net profits and losses entitled from the investee is recognized, the proportion attributable to theinvestor shall be calculated at the shareholding ratio after offsetting the profits and losses of internal transactionswith associated enterprises and joint ventures (full amount shall be recognized if the losses of internal transactionsare the asset impairment losses) in light of the accounting policies and period of the Company on the basis of thefair value of the identifiable assets of the investee when the investment is obtained, and the net profit of the investeeshall be recognized after adjustment. The portion to be distributed shall be calculated with reference to the profitsor cash dividends declared to be distributed by the investee, and the book value of the long-term equity investmentshall be reduced accordingly. The Company recognizes the net loss incurred by the investee to the extent that thebook value of the long-term equity investment and other long-term equity substantially constituting the net
investment into the investee are written down to zero, unless the Company is liable for extra losses. The book valueof the long-term equity investment was adjusted and included in the owner's equity for other changes in the owner'sequity other than the net profits and losses of the investee.
3. Basis for determination of control over and significant influence on the investeeControl refers to having the power over the investee, being entitled to variable returns by participating in therelevant activities of the investee and able to influence the amount of return by exercising the power over the investee.Significant influence refers to that the investor has the right to participate in decision-making in terms of thefinancial and operating policies of the investee but has no right to control or jointly control the formulation of thesepolicies with other parties.
4. Disposal of long-term equity investments
(1) Partial disposal of long-term equity investments into subsidiaries without loss of controlThe difference between the disposal price and the corresponding book value of the disposed investment shallbe recognized as the current investment profit in case of partial disposal of long-term equity investments intosubsidiaries without loss of control.
(2) Loss of control over subsidiaries due to partial disposal of long-term equity investments or other reasonsIf the control over the subsidiaries is lost due to partial disposal of long-term equity investments or otherreasons, the book value of the long-term equity investment corresponding to the sold equity shall be carried forwardfor the disposed equity, and the difference between the sales price and the book value of the disposed long-termequity investment shall be recognized as investment profit (loss). In addition, the remaining equity shall berecognized as long-term equity investment or other related financial assets at its book value. The remaining equityafter disposal that has joint control or significant influence on the subsidiaries shall be subject to the accountingtreatment in accordance with the relevant regulations on the conversion from the cost method to the equity method.
5. Methods for impairment test and provision of impairment reserve
If there is any objective evidence showing that the investments into subsidiaries, associated enterprises andjoint ventures are impaired on the balance sheet date, the provision of impairment reserve shall be made accordinglybased on the difference between the book value and the recoverable amount.
23. Investment property
Measurement model of investment property
Measurement with cost methodDepreciation or amortization method
1. Investment property includes leased land use rights, land use rights held and ready to be assigned afterappreciation, and leased buildings.
2. Investment property is measured initially at cost and subsequently with cost model. The provision fordepreciation and amortization of the investment property are made in the way as used for fixed assets and intangibleassets. If there is any sign showing that the investment property is impaired on the balance sheet date, the provisionof impairment reserve shall be made accordingly based on the difference between the book value and the recoverableamount.
The Company applied the cost model to subsequent measurement of investment property, and depreciated oramortized it in accordance with the policy as used for the buildings or land use rights.
See Note V. (XXIII) "Long-term Assets Impairment" for details of the methods for impairment test andprovision of impairment reserve applicable to investment property.
If the property for private use or inventory is converted to an investment property or the investment propertyis converted to a property for private use, the book value before such conversion shall be deemed as the entry valueafter the conversion.
If the purpose of an investment property is changed to private use, this investment property shall be convertedinto a fixed or intangible asset from the date of change. If the purpose of a property is changed to rent gains orcapital appreciation from private use, the fixed asset or intangible asset shall be converted into an investmentproperty from the date of change. If the purpose of a property is changed to rent gains or capital appreciation fromprivate use, the fixed asset or intangible asset shall be converted into an investment property from the date of change.If any asset is converted into an investment property measured with the cost model, the book value before theconversion shall be deemed as the entry value after the conversion. If any asset is converted into an investmentproperty measured with the fair value model, the fair value on the conversion date shall be deemed as the entryvalue after the conversion.
An investment property shall be derecognized if this investment property is disposed of or permanently retired,and it is expected that no economic benefits can be obtained from its disposal. The disposal income from the sale,transfer, scrapping or damage of an investment property shall be included in the current profits and losses afterdeducting its book value and relevant taxes and dues. The disposal income from the sale, transfer, scrapping or
damage of an investment property shall be included in the current profits and losses after deducting its book valueand relevant taxes and dues.
24. Fixed assets
(1) Conditions for recognition
The fixed assets of the Company refer to the tangible assets that are held for production of goods, rendering oflabor services, and leasing or operating management and have a useful life of more than one fiscal year.
Fixed assets shall be recorded at the actual cost upon the acquisition and subject to the provision for straight-line depreciation from the next month following the date when they are ready for use as intended.
(2) Depreciation method
| Category | Depreciation method | Depreciable life | Residual rate | Annual depreciation rate |
| Houses and buildings | Straight-line method | 20-40 years | 5.00% | 2.375%-4.75% |
| Machinery and equipment | Straight-line method | 10 years | 5.00% | 9.50% |
| Transportation equipment | Straight-line method | 5 years | 5.00% | 19.00% |
| Tooling | Straight-line method | 5 years | 5.00% | 19.00% |
| Electronic equipment and other equipment | Straight-line method | 5 years | 5.00% | 19.00% |
(3) Basis for recognition, valuation and depreciation method of fixed assets under financing lease
Financing lease will be recognized if one or more of following criteria is or are met: ① The ownership of theleased asset is transferred to the lessee at the expiration of the lease term; ② It can be reasonably determined thatthe lessee will exercise the option at the start of the lease since the lessee has such option to purchase the leasedasset and the agreed purchase price is expected to be much lower than the fair value of the leased asset when theoption is exercised; ③ The lease term accounts for most of the useful life of the leased asset [generally, it accountsfor more than 75% (including 75%) of the useful life of the leased asset] even if the ownership of the asset will notbe transferred]; ④ The present value of the minimum lease payment made by the lessee on the start date of leaseis almost equivalent to the fair value [90% and above (including 90%) of the leased asset on the start date of lease];the present value of the minimum lease payment received by the lessor on the start date of lease is almost equivalentto the fair value [90% and above (including 90%) of the leased asset on the start date of lease]; ⑤ The leased assetis of a special nature and will be only used by the lessee if no major transformation is made.
The fixed assets under financing lease shall be recorded at the lower of the fair value of the leased assets onthe start date of lease and the present value of the minimum lease payment and shall be subject to provision fordepreciation in accordance with the depreciation policy of self-owned fixed assets.
25. Construction in progress:
1. The construction in progress shall be transferred to fixed assets at the actual cost of the project when it isready for use as intended. If a product under construction has been ready for use as intended but has not undergonefinal settlement of account, this project shall be transferred to fixed assets at the estimated value first. After finalsettlement of account is made, the original temporary estimated value shall be adjusted according to the actual costwithout adjustment of depreciation previously accrued.
2. If there is any sign showing that a project under construction is impaired on the balance sheet date, theprovision for impairment shall be made accordingly at the difference between the book value and the recoverableamount.
26. Borrowing costs
1. Recognition principle for capitalizing borrowing cost
The borrowing costs of the Company that can be directly attributable to the acquisition, construction orproduction of assets that meet the conditions for capitalization shall be capitalized and included in the cost of therelevant assets, and other borrowing costs shall be recognized as expenses at the time of occurrence and included inthe current profits and losses.
2. The capitalization period of borrowing costs
(1) The borrowing costs shall be capitalized if they meet the following conditions: 1) Asset expenditures havebeen incurred; 2) Borrowing costs have been incurred; 3) Acquisition, construction or production activitiesnecessary for the assets to reach the usable or marketable state as intended have begun.
(2) The capitalization of borrowing costs shall be discontinued if the acquisition, construction or production ofan asset that meets the conditions for capitalization is abnormally interrupted for more than 3 successive months.The borrowing costs incurred during the period of interruption shall be recognized as current expenses until theacquisition, construction or production of assets is resumed.
(3) The capitalization of borrowing costs shall cease when the purchased, constructed or produced assets thatmeet the conditions for capitalization reaches the intended usable or marketable state.
3. Capitalized amount of borrowing costs
If special borrowings are for the purpose of purchase, construction or production of assets that meet theconditions for capitalization, the amount of interest to be capitalized shall be determined as the interest expensesactually incurred (including the amortization of discounts or premiums determined with the effective interest ratemethod) in the current period of the special borrowing minus the interest income from the unused borrowings thathave been deposited in the bank or the profit from temporary investment by the unused borrowings. If generalborrowings are used for the purpose of purchase, construction or production of assets that meet the conditions forcapitalization, the amount of interest to be capitalized shall be determined as the weighted average of assetexpenditure with accumulated asset expenditure exceeding special borrowing multiplied by capitalization rate ofthe general borrowing occupied.
27. Biological assets
None
28. Oil and gas assets
None
29. Right-of-use assets
On the start date of lease, the Company recognizes right-of-use assets and lease liabilities for leases, except forshort-term leases and leases of low-value assets for which the application of the standard provides simplifiedtreatment.
The right-of-use assets shall be initially measured by the Company at the cost. This cost includes:
1. The initial measurement amount of the lease liability;
2. For lease payments paid on or before the starting date of the lease term, if there are lease incentives, theamount of lease incentives already enjoyed shall be deducted;
3. The initial direct expenses incurred by the Company;
4. Estimated costs to dismantle and remove the leased asset, restore the site where the leased asset is located,or restore the leased asset to the state agreed upon in the lease terms. The aforementioned costs are incurred for themake-to-stock production, and the Accounting Standards for Business Enterprises No. 1 - Inventories shall apply.The Company recognizes and measures the costs mentioned in Item 4 above in accordance with the AccountingStandards for Business Enterprises No. 13 - Contingencies.Initial direct costs are the incremental costs incurred to achieve the lease. Incremental costs are the costs thatwould not have been incurred if the enterprise did not completed the lease.The provision for the depreciation of the right-of-use assets shall be made with reference to the relevantdepreciation provisions of the Accounting Standards for Business Enterprises No. 4 - Fixed Assets. If there isreasonable certainty that the lessee will obtain ownership of the leased assets when the lease term expires, theCompany shall make depreciation of leased assets over their remaining service life. If it is not reasonable to becertain that the lessee will obtain the ownership of the leased assets at the expiry of the lease term, the leased assetsshall be calculated and withdrawn as depreciation over the shorter one of the lease term or the remaining servicelife.The Company determines whether the right-of-use assets are impaired in accordance with the AccountingStandards for Business Enterprises No. 8 - Asset Impairment, and carries out accounting treatment for the identifiedimpairment losses.
30. Intangible assets
(1) Valuation method, service life and impairment test
1. Intangible assets include land usage right and software, and shall be initially measured at cost.
2. Intangible assets with limited service life shall be systematically and reasonably amortized according to theexpected realization mode of economic benefits related within the service life, and in case the expected realizationmode cannot be reliably determined, the straight-line method shall be adopted for amortization.
The land usage right shall be averagely amortized within the remaining service life (generally 50 years), andthe software shall be averagely amortized within 3-5 years.
3. In case of evidence of impairment of intangible assets with defined service life on the balance sheet date,corresponding provision for impairment shall be made according to the difference between the book value and therecoverable amount; For intangible assets with uncertain service life and intangible assets that have not reached the
serviceable state, the impairment tests shall be carried out every year, whether there are signs of impairment or not.Currently, the Company has no intangible assets with uncertain service life.
(2) Accounting policy of internal R&D expenditure
Research stage expenditures of internal R&D projects shall be included in the current profits and losses at thetime of occurrence. In case following conditions have been met at the same time, expenditure of internal R&Dprojects in development stage shall be recognized as intangible assets: (1) It is technically feasible to complete theintangible assets for adoption and sale; (2) There is the intention to complete the intangible assets for adoption andsale; (3) There exist ways for intangible assets to generate economic benefits, including the evidence that there is amarket for products produced by using the intangible assets or for the intangible assets. If the intangible assets willbe used internally, it can be proved that they are useful; (4) There are sufficient technical, financial and otherresources to support the development of the intangible assets and to use or sell the intangible assets; (5) Expenditureof the intangible assets in development stage can be measured reliably.
31. Long-term assets impairment
The enterprise shall judge whether there is any sign of possible assets impairment on the balance sheet date.
Goodwill arising from business combination and intangible assets with uncertain service life shall be tested forimpairment every year, no matter whether there is any sign of impairment.
In case of following signs, the assets may be impaired:
(1) Market price of assets falls sharply in the current period, which is significantly higher than the expecteddecline due to time or normal use; (2) There are significant changes in current and future economic, technologicalor legal environment in which the enterprise operates and the market where assets are located, bringing adverseeffects on the enterprise; (3) The market interest rate or other market return on investment has been increased in thecurrent period, affecting the discount rate of the enterprise to calculate the present value of the expected future cashflow of the assets and resulting in a significant decrease in the recoverable amount of the assets; (4) There existsevidence showing that the assets have become obsolete or the entity has been damaged; (5) Assets have been or willbe idle, terminated or planned to be disposed in advance; (6) Evidence in the internal report of the enterprise showsthat economic performance of assets has been or will be lower than the expected, for instance, the net cash flowarising from assets or the realized operating profit (or loss) is far lower (or higher) than the expected amount, etc.
(7) Other indications showing that assets may have been impaired.
In case of signs of assets impairment, corresponding recoverable amount shall be estimated.Recoverable amount shall be determined based on the higher of the net amount of fair value of assets minusthe disposal expenses and the present value of expected future cash flow of assets.Disposal expenses include legal expenses, relevant taxes and handling fees related to disposal of assets as wellas direct expenses incurred to make the assets marketable.Present value of expected future cash flow of assets shall be determined by selecting an appropriate discountrate based on the expected future cash flow generated during continuous use and final disposal of the assets. Toestimate present value of future cash flow of assets, measures shall be taken to comprehensively consider factors asthe expected future cash flow, service life and discount rate of the assets.In case of measurement result of recoverable amount showing that recoverable amount of the asset is lowerthan its book value, the book value shall be written down to the recoverable amount, and the written down amountshall be recognized as the loss of asset impairment and included in the current profits and losses; besides,corresponding provision for asset impairment shall be made at the same time.
32. Long-term deferred expenses
Long-term deferred expenses shall be recorded according to the actual amount, and shall be averagelyamortized in the benefit period or the specified period. In case future accounting period cannot benefit from long-term deferred expenses, all unamortized value of the item shall be transferred into the current profits and losses.
33. Contractual liabilities
The Company shall list contractual assets or liabilities in the balance sheet based on the relationship betweenthe performance of obligations and customer payment. Obligation of the Company to transfer goods or provideservices to customers for consideration received or receivable from customers shall be listed as contractual liabilities.
34. Employee compensation
(1) Accounting treatment of short-term compensation
Employee compensation refers to various forms of remuneration or compensation provided by the Companyfor obtaining services provided by employees or dissolving labor relations. Employee compensation includes short-term compensation, post-employment benefits, dismissal benefits and other long-term employee benefits. The
benefits provided by the Company to the employee's spouse, children, dependents, family members of the deceasedemployee and other beneficiaries are also employee compensation.
Share-based payments issued by the enterprise to its employees shall also be included in employeecompensation, and shall be handled in accordance with relevant provisions of Accounting Standards for BusinessEnterprises No. 11 - Share-based Payments.
The Company shall recognize actual short-term benefits as liabilities and include it in the current profits andlosses or related asset costs during the accounting period when employees provide services. Where, non-monetarywelfare shall be measured at fair value.
(2) Accounting treatment of post-employment benefits
None
(3) Accounting treatment of dismissal benefits
In case the Company terminates labor relationship with employees prior to the expiration of employee's laborcontract, or offers compensation to encourage employees to accept the layoff voluntarily, it shall confirm thecompensation for termination of labor relationship with employees and include the compensation amount in thecurrent profits and losses at the earlier time when it fails to unilaterally withdraw labor relationship termination planor layoff proposal and confirms costs related to reorganization involving the payment of dismissal benefits.
(4) Accounting treatment of other long-term employee benefits.
Employees of the Company have accepted the social basic endowment insurance organized and implementedby the local labor and social security departments. The Company shall pay endowment insurance premium to thelocal agency handling with social basic endowment insurance on a monthly basis based on the payment base andproportion of the local social basic endowment insurance. After employee retirement, the local labor and socialsecurity department shall pay basic social pension to retired employees. The Company shall recognize amount tobe paid according to the above social security provisions as liabilities and include it into the current profits andlosses or related asset cost during the accounting period when employees provide services.
35. Lease liabilities
On the beginning date of the lease term, the Company recognizes the present value of the unpaid lease paymentsas lease liabilities, except for short-term leases and low-value asset leases. When calculating the present value oflease payments, the Company adopts the interest rate implicit in the lease as the discount rate; if the interest rateimplicit in the lease cannot be determined, the lessee's incremental loan interest rate shall be used as the discountrate. The Company calculates the interest expense of the lease liability in each period of the lease term according tothe fixed periodic interest rate and includes it in the current profits and losses, unless it is otherwise specified that itshall be included in the relevant asset cost. The amount of variable lease payments not included in the measurementof lease liabilities shall be included in the current profits and losses when they actually occur, unless it is otherwisespecified that they shall be included in the relevant asset cost. After the beginning date of the lease term, when thesubstantial fixed payment amount changes, the expected amount payable for the guaranteed residual value changes,the index or ratio used to determine the lease payment amount changes, or the evaluation result or actual exerciseof the purchase option, renewal option or termination option changes, the Company shall remeasure the leaseliabilities according to the present value of the changed lease payments.
36. Estimated liabilities
None
37. Share-based payment
1. Types of share-based payment
It includes equity-settled share-based payment and cash-settled share-based payment
2. Determination method of fair value of equity instrument
(1) In case of active market, it shall be determined according to the quoted price in the active market.
(2) In case of no active market, it shall be determined by adopting valuation technologies, including referringto prices used in recent market transactions by parties familiar with the situation and willing to trade, current fairvalue of other financial instruments that are essentially the same, discounted cash flow method and option pricingmodel.
3. Basis for confirming the best estimate of vesting equity instruments
Estimation shall be based on the latest available changes on vesting employee number and other subsequentinformation.
4. Accounting treatment of implementing, modifying and terminating share-based payment plan
(1) Equity-settled share-based payment
Equity-settled share-based payment in exchange for employee services that can be exercised immediately afterthe grant shall be included in the relevant costs or expenses according to the fair value of equity instruments on thegrant date, and the capital reserve shall be adjusted accordingly. For equity-settled share-based payment in exchangefor employee services only after completing service within the waiting period or reaching the specified performanceconditions, it is required to include the services obtained in the current period into relevant costs or expensesaccording to the best estimate of number of vesting equity instruments and the fair value on the grant date of equityinstruments on each balance sheet date within the waiting period, and the capital reserve shall be adjustedaccordingly.
For equity-settled share-based payment in exchange for other party's services, if the fair value of other party'sservices can be reliably measured, it shall be measured based on the fair value of other party's services on theacquisition date; In case the fair value of other party's services cannot be reliably measured, but the fair value ofequity instruments can be reliably measured, it shall be measured based on the fair value of equity instruments onthe acquisition date and shall be included in relevant costs or expenses; besides, the owner's equity shall be increasedaccordingly.
(2) Cash-settled share-based payment
Cash-settled share-based payment in exchange for employee services that can be exercised immediately afterthe grant shall be included in relevant costs or expenses according to the fair value of the liabilities undertaken bythe Company on the grant date, and the liabilities shall be increased accordingly. For cash-settled share-basedpayment in exchange for employee services only after completing service within the waiting period or reaching thespecified performance conditions, it is required to include the services obtained in the current period into relevantcosts, expenses and corresponding liabilities according to the best estimate of vesting rights and the fair value ofthe liabilities undertaken by the Company on each balance sheet date within the waiting period.
(3) Modification and termination of share-based payment plan
In case of increase of fair value of the equity instruments granted due to modification, the Company shallrecognize the increase of services obtained based on the increase of fair value of equity instruments; In case of
increase of the number of equity instruments granted due to modification, the Company shall recognize the fairvalue of the increased equity instruments as the increase of services obtained accordingly. Besides, if the Companymodifies vesting conditions in a way beneficial to employees, it shall consider all modified vesting conditions whendealing with the vesting conditions.
In case of decrease of fair value of the equity instruments granted due to modification, the Company shallcontinue to recognize the amount of services obtained based on the fair value of equity instruments on the grantdate without considering the decrease of fair value of equity instruments; In case of decrease of the number of equityinstruments granted due to modification, the Company shall recognize the decreased part as the cancellation ofgranted equity instruments; Besides, if the Company modifies vesting conditions in a way not beneficial toemployees, it shall not consider the modified vesting conditions when dealing with vesting conditions.In case the Company cancels or settles the granted equity instruments within the waiting period (except thosecancelled due to failure to meet the vesting conditions), the cancellation or settlement shall be accelerated for vesting,and the amount originally confirmed in the remaining waiting period shall be recognized immediately.Share-based payment refers to the transaction of granting equity instruments or undertaking liabilitiesdetermined on the basis of equity instruments to obtain services provided by employees and other parties. Share-based payment can be divided into equity-settled share-based payment and cash-settled share-based paymentShare-based payment can be divided into equity-settled share-based payment and cash-settled share-based payment
Equity-settled share-based payment in exchange for employee services shall be measured at the fair value ofequity instruments granted to employees. Cash-settled share-based payment shall be measured at the fair value ofthe Company's liabilities calculated and determined on the basis of shares or other equity instruments.
38. Preferred shares, perpetual bonds and other financial instruments
None
39. Revenue
Accounting policies adopted for revenue recognition and measurement
1. Revenue recognition
The Company's revenue mainly includes sales revenue of intelligent controller, lithium battery, motor andcontrol system.
The Company has fulfilled performance obligation in the Contract, that is, recognizing revenue when thecustomer obtains the control right of relevant commodities. Obtaining of the control right of relevant commoditiesmeans to be able to dominate the use of the commodities and obtain almost all economic benefits arising therefrom.
2. The Company shall judge the nature of relevant performance obligations as "performance obligationsfulfilled in a certain period" or "performance obligations fulfilled at a certain time point" based on relevantprovisions of revenue standards, and shall confirm revenue according to the following principles respectively.
(1) In case the Company meets one of the following conditions, it shall fulfill the performance obligationswithin a certain period of time:
① Customers obtain and consume economic benefits arising from performance of the Company during theCompany's performance of the Contract.
② Customers can control the assets under construction during the Company's performance of the Contract.
③ Assets of the Company during the performance of the Contract are irreplaceable, and the Company shallbe entitled to collect money for the performance part completed so far in the whole contract period.
For performance obligations fulfilled within a certain period of time, the Company shall recognize revenueaccording to the performance progress within that period, except that the performance progress cannot be reasonablydetermined. The Company shall consider the nature of commodities, and shall determine the proper performanceprogress by adopting the output method or the input method.
(2) For performance obligations fulfilled at a certain time point rather than in a certain period, the Companyshall recognize revenue at the time when customers obtain the control right of relevant commodities.
When judging whether customers have obtained the control right of relevant commodities, the Companyconsider the following signs:
① The Company shall be entitled to immediately collect revenues from commodities, which means thatcustomers have the obligation to pay for commodities immediately.
② The Company has transferred the legal ownership of commodities to customers, which means thatcustomers have obtained the legal ownership of commodities.
③ The Company has transferred commodities in kind to customers, which means that customers havepossessed commodities in kind.
④ The Company has transferred main risks and rewards related to the ownership of commodities to customers,which means that customers have obtained main risks and rewards related to the ownership of commodities.
⑤ Customers have accepted the commodities.
⑥ Other indications that customers have obtained the control right of commodities.
3. The specific method of revenue recognition of the group
In case the sales contract between the Company and customers has been deemed as a performance obligationfulfilled at a certain time point, the specific revenue recognition method shall be formulated according to the actualsituation of the Company's product sales as follows:
Domestic sales: ① The customer picks up the goods in cash. After the payment and delivery, it is consideredthat the customer has obtained the control of the relevant goods, and the Company has recognized the sales revenue;
② If the advance payment is used for settlement, and the other party's customer confirmation receipt is obtainedafter the delivery, it is considered that the customer has obtained the control of the relevant commodities, and theCompany has recognized the sales revenue; ③ If the credit sale is adopted according to a certain payment period,within which the customer settles, and after the delivery, the other party's customer confirmation receipt is obtained,it is considered that the customer has obtained the control of the relevant goods, and the Company has recognizedthe sales revenue.
Foreign sales: the Company shall deliver commodities according to the signed order, hold special exportinvoice, delivery note and other original documents for customs clearance and export, pass customs audit, completeexport declaration procedures, obtain the customs declaration documents as the point of transfer of control of therelevant goods, and recognize the sales revenue by recording the revenue based on the delivery order, special exportinvoice and customs declaration form.
4. Measurement of revenue
The Company shall measure revenue according to the transaction price allocated to each individualperformance obligation. In determining the transaction price, the Company shall consider the influence of variableconsideration, significant financing components in the Contract, non-cash consideration, consideration payable tocustomers as well as other factors.
(1) Variable consideration
The Company shall determine the best estimate of variable consideration according to the expected value orthe most likely amount, but the transaction price including the variable consideration shall not exceed theaccumulated recognized revenue that will not be significantly reversed when relevant uncertainty is eliminated.
When evaluating whether the accumulative recognized revenue is unlikely to be significantly reversed, theenterprise shall further consider the possibility and proportion of revenue reversal.
(2) Significant financing components
In case of significant financing components in the Contract, the Company shall determine the transaction priceaccording to the amount payable in cash when assuming that customers obtain the control right of commodities.Difference between the transaction price and the contract consideration shall be amortized by adopting the effectiveinterest rate method during the contract period.
(3) Non-cash consideration
In case customers pay non-cash consideration, the Company shall determine the transaction price according tothe fair value of the non-cash consideration. In case the fair value of non-cash consideration cannot be reasonablyestimated, the Company shall indirectly determine the transaction price by referring to the separate selling price ofcommodities for transferring commodities to customers that it promises.
(4) Consideration payable to customers
Consideration payable to customers shall be written down against the transaction price, and the current incomeshall be offset at the later of confirming relevant income or paying (or promising to pay) customer's consideration,except that the consideration payable to customers is to obtain other clearly distinguishable commodities fromcustomers.
In case the consideration payable by an enterprise to customers is to obtain other clearly distinguishablecommodities from customers, the purchased commodities shall be confirmed in a way consistent with otherpurchases of the enterprise. In case the consideration payable by an enterprise to customers exceeds the fair valueof a clearly distinguishable commodity obtained from the customer, the excess amount shall be used to offset thetransaction price. In case the fair value of clearly distinguishable commodities obtained from customers cannot bereasonably estimated, the enterprise shall offset the transaction price with the consideration payable to customers infull.Differences in revenue recognition accounting policies caused by different business models of similar businessesNone
40. Government subsidies
1. Government subsidies include government subsidies related to assets and government subsidies related toincome.
2. In case the government subsidies can be included in monetary assets, they shall be measured according tothe amount received or receivable; In case the government subsidies can be classified as non-monetary assets, theyshall be measured at fair value, and once the fair value cannot be obtained reliably, they shall be measured in nominalamount.
3. Government subsidies calculated by adopting the gross method:
(1) Government subsidies related to assets shall be recognized as deferred income and included in profits andlosses by stages in a reasonable and systematic way within the service life of relevant assets. In case relevant assetsare sold, transferred, scrapped or damaged prior to the end of their service life, the balance of relevant deferredincome that has not been allocated shall be transferred to the profits and losses of the current period of asset disposal.
(2) Government subsidies related to income and used to compensate related expenses or losses in the laterperiod shall be recognized as deferred income, and shall be included in the current profits and losses during theperiod when related expenses are recognized; subsidies used to compensate relevant expenses or losses incurredshall be directly included in the current profits and losses.
4. Government subsidies calculated by adopting the net method:
(1) Government subsidies related to assets shall be used to offset the book value of relevant assets;
(2) Government subsidies related to income and used to compensate related expenses or losses in the laterperiod shall be recognized as deferred income, and shall be used to offset related costs when related expenses arerecognized; subsidies used to compensate relevant expenses or losses incurred shall be directly used to offset relatedcosts.
5. The Company shall adopt the gross method to calculate the government subsidies received.
6. For government subsidies including asset-related part and income-related part, measures shall be taken todistinguish different parts and carry out accounting treatment separately; Part difficult to distinguish shall beclassified as government subsidies related to income.
7. The Company shall include the government subsidies related to its daily activities in other income accordingto the essence of economic business, and shall include the government subsidies unrelated to its daily activities innon-operating income and expenditure.
8. For discount interest of preferential policy loans to be obtained by the Company, two measures shall beadopted, including that the Ministry of Finance allocates the discount funds to the lending banks and that theMinistry of Finance allocates the discount funds to the Company:
(1) In case the Ministry of Finance allocates the discount funds to the lending banks, and the lending bankprovides loans to the Company at preferential policy interest rate, the Company shall choose the following methodsfor accounting treatment:
a. Taking the loan amount actually received as the entry value of the loan, and calculating relevant borrowingcosts based on the loan principal and the preferential policy interest rate.
b. Taking the fair value of loan as the entry value, calculate the borrowing costs by adopting the effectiveinterest rate method, and recognizing the difference between the actual received amount and the fair value of theloan as deferred income. Deferred income shall be amortized by adopted the effective interest rate method withinthe duration of loan to offset relevant borrowing costs.
(2) In case the Ministry of Finance allocates the discount funds to the Company, the Company will write downthe corresponding discount interest against relevant borrowing costs.
41. Deferred tax assets/deferred tax liabilities
1. It is required to calculate and recognize the deferred tax assets or liabilities according to the differencebetween the book value of the assets and liabilities and corresponding tax base (in case the tax base of items notrecognized as assets and liabilities can be determined according to the provisions of the tax law, the differencebetween the tax base and their book amount shall be adopted) as well as the applicable tax rate during the period ofexpected recovery of the assets or settlement of the liabilities.
2. Recognition of deferred tax assets shall be limited to the taxable income that is likely to be obtained to offsettemporary deductible differences. On the balance sheet date, if there is conclusive evidence that it is likely to obtainsufficient taxable income in the future periods to offset the deductible temporary differences, the deferred tax assetsnot recognized in the previous accounting periods shall be recognized.
3. The book value of deferred tax assets shall be reviewed on the balance sheet date. In case it is impossible toobtain enough taxable income to offset the benefits of the deferred tax assets in the future, the book value of thedeferred tax assets shall be written down. If it is likely to obtain enough taxable income, the write down amountshall be reversed.
4. The current income tax and deferred tax of the Company shall be recognized as income tax expenses orincome, and shall be included in the current profits and losses, except for income tax arising from the followingcircumstances: (1) business combination; (2) transactions or matters directly recognized in the owner's equity.
42. Lease
(1) Accounting treatment of operating lease
(1) Operating lease business recorded by the Company as the lessee
GHB shall include the rental from the operating lease in the relevant asset costs or current profits and lossesusing straight-line method over the relevant lease term. Initial direct expenses shall be included in the current profitsand losses. Contingent rents shall be included in the current profits and losses at the time of occurrence.
(2) Operating lease business recorded by the Company as the lessor
Rental income of operating lease shall be recognized as the current profits and losses by adopting the straight-line method in each period of the lease term. Initial direct expenses with large amount shall be capitalized at thetime of occurrence, and shall be included in the current profits and losses by stages on the same basis as the rentalrevenue during the whole lease term; Other initial direct expenses with small amount shall be included in the currentprofits and losses at the time of occurrence. Contingent rents shall be included in the current profits and losses atthe time of occurrence.
(2) Accounting treatment of financing lease
(1) Financial lease business recorded by the Company as the lessee
The lower of the fair value of the leased asset and the present value of the minimum lease payment on thebeginning date of lease term shall be taken as the entry value of the leased asset, the minimum lease payment shallbe taken as the entry value of the long-term accounts payable, and the difference of the above two shall be taken asthe unrecognized financing expense at the beginning of the lease term. In addition, initial direct expenses that canbe attributed to the leased item in the process of lease negotiation and signing the lease contract shall also be included
in leased assets. Balance of the minimum lease payment after deducting the unrecognized financing expenses shallbe listed as long-term liabilities or long-term liabilities due within one year.During the lease term, the unrecognized financing expenses shall be calculated and recognized by adopting theeffective interest rate method. Contingent rents shall be included in the current profits and losses at the time ofoccurrence.
(2) Financial lease business recorded by the Company as the lessor
The sum of the minimum lease receipts and the initial direct expenses on the beginning date of lease term shallbe taken as the entry value of the financing lease receivables, and the unguaranteed residual value shall be recordedat the same time at the beginning of the lease term; and the sum of minimum lease collection, initial direct cost anddifference between unguaranteed residual value and its present value shall be recognized as unrealized financingincome. Balance of financing lease receivables after deducting the unrealized financing income shall be listed aslong-term creditor's right or long-term creditor's right due within one year.
During the lease term, the unrealized financing income shall be calculated and recognized by adopting theeffective interest rate method. Contingent rents shall be included in the current profits and losses at the time ofoccurrence.
43. Other important accounting policies and accounting estimation
Hedge accounting
The hedge means the risk management activity where the enterprise designates the financial instruments as thehedge instruments for the risk exposure due to the management of the specific risks such as foreign exchange risk,interest rate risk, price risk, credit risk so that the fair value or the cash flow changes, which is expected tocountervail all or part of the fair value or cash flow change of the hedged projects.
1. In the hedge accounting, the hedge is divided into fair value hedge, cash flow hedge, and net investmenthedge for overseas operation.
2. Only when the fair value hedge, cash flow hedge, or net investment hedge for overseas operation meet thefollowing conditions at the same time can the hedge accounting method stipulated by the Code for handling.
(1) The hedge relationship is only composed of the hedge instruments and hedged projects that meet theconditions; (2) When the hedge begins, the enterprise officially designates the hedge instruments and hedgedprojects and prepares the written documents about hedge relationship and the risk management strategies and risk
management objectives related to the hedge for the enterprise. These documents at least describe the hedgeinstrument, hedged projects, nature of the hedged risks, and evaluation methods on hedge effectiveness (includingthe forming reason analysis for invalid part of the hedge and the confirmation methods of the hedge ratio) etc. (3)The hedge relationship conforms to the requirements of hedge effectiveness.If the hedge meets the following conditions at the same time, the enterprise shall identify that the hedgerelationship conforms to the requirements of hedge effectiveness:
(a) There is the economic relationship between the hedged projects and hedge instruments. The economicrelationship makes the value of the hedge instruments and hedged projects change in the reverse direction due tothe same hedged risks.(b) In the value change generated for the hedged projects and hedge instruments, the effect of the credit risk isnot dominant.(c) The hedge ratio of the hedge relationship shall be equal to the ratio between the hedged project quantity ofthe actual hedge for the enterprise and the actual quantity of the hedge instruments and shall not reflect the unbalanceof the relative weight between the hedged projects and hedge instruments, which will cause the hedge invalidationand may generate the accounting results not consistent with the hedge accounting objectives.The enterprise shall continuously evaluate whether the hedge relationship conforms to the hedge effectivenessrequirements when the hedge begins and during the sequent periods, especially for the analysis of the formingreasons why it is expected to affect the hedge relationship due to the invalid part of the hedge during the residualperiods of the hedge. The enterprise shall at least evaluate the hedge relationship on the day of balance sheet andwhen the major changes will happen for relevant situations affecting the hedge effectiveness requirements.If the hedge relationship does not conform to the hedge effectiveness requirements any more due to the hedgeratio, but the risk management objective to designate the hedge relationship does not change, the enterprise shall re-balance the hedge relationship.
3. Accounting handling of the hedge.
(1) Fair value hedge
If the fair value hedge meets the conditions of the hedge accounting methods, it shall be handled in accordancewith the provisions below:
(a) The profit or loss generated by the hedge instrument shall be incorporated into the profits and losses. If thehedge instrument is used to hedge the non-tradable equity instrument investment (or its components) which is
measured at fair value with the changes including in other comprehensive income, the profit or loss generated bythe hedge instruments shall be incorporated into other comprehensive income.(b) The profit or loss generated by the hedged projects due to the hedge risk exposure shall be incorporatedinto the current profit or loss. At the same time, the account value shall be adjusted for the confirmed hedged projectsmeasured at the fair value.
(2) Cash flow hedge
If the cash flow value hedge meets the conditions to apply the hedge accounting methods, it shall be handledin accordance with the provisions below:
(a) If the profit or loss generated by the hedge instrument belongs to the valid part of the hedge as the cashflow hedge reserve, it shall be incorporated into other comprehensive income. The amount of cash flow hedgereserve included in other comprehensive income in each period shall be the change amount of cash flow hedgereserve in the current period. The amount of cash flow hedge reserve included in other comprehensive income ineach period shall be the change amount of cash flow hedge reserve in the current period.
(b) If the profit or loss generated by the hedge instrument belongs to the invalid part of the hedge (that is, otherprofit or loss after deducting other comprehensive income), it shall be incorporated into the current profits and losses.
(3) Net investment hedge for overseas operation
As for the net investment hedge for overseas operation, including the hedge of monetary items accounting aspart of net investment, it shall be handled in accordance with the provisions similar to the cash flow hedgeaccounting:
(a) If the profit or loss generated by the hedge instrument belongs to the valid part of the hedge, it shall beincorporated into other comprehensive income.
When all or part of the overseas business is disposed, the above profit or loss of hedge instruments included inother comprehensive income shall be transferred out and incorporated into the current profits and losses.
(b) If the profit or loss generated by the hedge instrument belongs to the invalid part of the hedge, it shall beincorporated into the current profits and losses.
Repurchase shares
If the Company or its subsidiaries shares are acquired due to the reduction of registered capital or reward ofemployees, the amount actually paid shall be treated as the treasury share, and the record shall be made for reference.If the repurchase shares are cancelled, the capital reserve will be offset by the difference between the total par value
of the cancelled shares and the number of cancelled shares and the amount paid for the actual repurchase. If thecapital reserve is insufficient to be offset, the retained earnings shall be offset; If the repurchase shares are awardedto the employees of the Company as equity-settled share-based payment, when the employees exercise the right topurchase the shares of the Company or its subsidiaries and receive the price, the cost of treasury shares delivered tothe employees and the accumulated amount of capital reserve (other capital reserves) during the waiting period shallbe resold, and the capital reserve (capital premium or share premium) shall be adjusted according to the difference.
44. Important accounting policy and accounting estimation changes
(1) Important accounting policy changes
□ Applicable ? Not applicable
(2) Important accounting estimation changes
□ Applicable ? Not applicable
45. Others
Not applicableVI. Tax
1. Main tax types and tax rate
| Tax type | Tax basis | Tax rate |
| VAT (value-added tax) | Revenue from sales of goods | 13%、9%、6%、3% |
| Consumption tax | Paid turnover tax amount | 4% |
| City maintenance and construction tax | Paid turnover tax amount | 7% |
| Corporate income tax | Taxable income | 15%、25%、16.5%、25.17%、20%、15.825%、22.46% |
| Education surcharge | Actually paid goods turnover tax | 3% |
| Local education surcharge | Actually paid goods turnover tax | 2% |
Where there are any taxpayers with different corporate income tax rates, details shall be disclosed.
| Name of taxpayer | Income tax rate |
| Shenzhen Topband Co., Ltd. | 15.00% |
| Shenzhen Topband Software Technology Co., Ltd. | 15.00% |
| Shenzhen Topband Automation Technology Co., Ltd. | 25.00% |
| Shenzhen Topband Battery Co., Ltd. | 15.00% |
| Chongqing Topband Industrial Co., Ltd. | 25.00% |
| Topband (Hong Kong) Co., Ltd. | 16.50% |
| Huizhou Topband Electrical Technology Co., Ltd. | 15.00% |
| TOPBAND INDIA PRIVATE LIMITED | 25.17% |
| Shenzhen YAKO Automation Technology Co., Ltd. | 15.00% |
| Shenzhen Allied Control System Co., Ltd. | 15.00% |
| Shenzhen Yansheng Software Co., Ltd. | 15.00% |
| Ningbo Topband Intelligent Control Co., Ltd. | 25.00% |
| Shenzhen Meanstone Intelligent Technology Co., Ltd. | 20.00% |
| Hangzhou Zhidong Motor Technology Co., Ltd. | 20.00% |
| Taixing Ninghui Battery Co., Ltd. | 15.00% |
| Shenzhen Topband Supply Chain Services Co., Ltd. | 25.00% |
| Shenzhen Topband Investment Co., Ltd. | 25.00% |
| Shenzhen Spark IOT Technology Co., Ltd. | 20.00% |
| Shenzhen Zhongli Consulting Co., Ltd. | 20.00% |
| Shenzhen Tunnu Innovation Co., Ltd. | 20.00% |
| TUNNU INNOVATION,INC | 21.00% |
| Shenzhen Senxuan Technology Co., Ltd. | 20.00% |
| Shenzhen Tengyi Industrial Co., Ltd. | 20.00% |
| Topband (Qingdao) Intelligent Control Co., Ltd. | 20.00% |
| Shenzhen Topband Automotive Electronics Co., Ltd. | 20.00% |
| TOPBAND JAPAN Co.,Ltd | 22.46% |
| Tunnu Innovation HK Limited | 8.25% |
| Topband （Vietnam) Co.,ltd | 20.00% |
| TOPBAND SMART DONGNAI(VIETNAM) Co.,ltd | 20.00% |
| Topband Germany GmbH | 15.825% |
| Huizhou Topband Battery Co., Ltd. | 20.00% |
| Shenzhen Xiaoyou Aitu Innovation Technology Co., Ltd. | 20.00% |
| Shenzhen Yueshang Robot Co., Ltd. | 20.00% |
| Shenzhen Topband Motor Co., Ltd. | 20.00% |
| Nantong Topband Youneng Technology Co., Ltd. | 25.00% |
| Huizhou YAKO Automation Technology Co., Ltd. | 20.00% |
| TOPBAND MEXICO,S.DE R.L.D | 30.00% |
| TOPBAND SMART EUROPE COMPANY LIMITED S.R.L.. | 16.00% |
2. Tax preference
On October 31, 2017, the Company obtained the Certificate for High-tech Enterprise that is numberedGR201744204652 and issued by Shenzhen Science and Technology Innovation Commission, Shenzhen FinanceCommission, Shenzhen Municipal Office, SAT and Shenzhen Local Taxation Administration. This Certificate isvalid within 3 years from the date of issuance. On February 5, 2021, the Company has received the Certificate forHigh-tech Enterprise jointly issued by Shenzhen Science and Technology Innovation Commission, ShenzhenFinance Bureau, and Shenzhen Tax Service, State Taxation Administration, and passed the re-certification of high-tech enterprises. This certification is a renewal of the original certificate that has been expired. According to relevantregulations, the Company will be entitled to the preferential policies stated by China for the high-tech enterpriseincome tax for three consecutive years after passing the re-certification of high-tech enterprises. That is, theCompany shall pay its corporate income tax at 15% of corporate income tax rate from 2021 to 2023.
On December 9, 2019, Shenzhen Topband Software Technology Co., Ltd. obtained the Certificate for High-tech Enterprise that is numbered GR201944201381 and issued by Shenzhen Science and Technology InnovationCommission, Shenzhen Finance Commission, Shenzhen Municipal Office, SAT and Shenzhen Local TaxationAdministration. This Certificate is valid within 3 years from the date of issuance. The corporate income tax rateapplicable for the Company from 2019 to 2021 is 15% in accordance with relevant provisions of the Law of thePeople's Republic of China on Enterprise Income Tax, Regulations of the People's Republic of China on theImplementation of Enterprise Income Tax and the Management Measures for the Certification of High-techEnterprises.On December 23, 2021, Shenzhen Allied Control System Co., Ltd. obtained the Certificate for High-techEnterprise that is numbered GR202144206368 and issued by Shenzhen Science and Technology InnovationCommission, Shenzhen Finance Commission, Shenzhen Municipal Office, SAT and Shenzhen Local TaxationAdministration. This Certificate is valid within 3 years from the date of issuance. The corporate income tax rateapplicable for the Company from 2021 to 2023 is 15% in accordance with relevant provisions of the Law of thePeople's Republic of China on Enterprise Income Tax, Regulations of the People's Republic of China on theImplementation of Enterprise Income Tax and the Management Measures for the Certification of High-techEnterprises.On December 23, 2021, Shenzhen YAKO Automation Technology Co., Ltd. obtained the Certificate for High-tech Enterprise that is numbered GR202144205479 and issued by Shenzhen Science and Technology InnovationCommission, Shenzhen Finance Commission, Shenzhen Municipal Office, SAT and Shenzhen Local TaxationAdministration. This Certificate is valid within 3 years from the date of issuance. The corporate income tax rateapplicable for the Company from 2021 to 2023 is 15% in accordance with relevant provisions of the Law of thePeople's Republic of China on Enterprise Income Tax, Regulations of the People's Republic of China on theImplementation of Enterprise Income Tax and the Management Measures for the Certification of High-techEnterprises.On December 23, 2021, Shenzhen Topband Battery Co., Ltd. obtained the Certificate for High-tech Enterprisethat is numbered GR202144203102 and issued by Shenzhen Science and Technology Innovation Commission andShenzhen Tax Service, State Taxation Administration. This Certificate is valid within 3 years from the date ofissuance. The corporate income tax rate applicable for the Company from 2021 to 2023 is 15% in accordance withrelevant provisions of the Law of the People's Republic of China on Enterprise Income Tax, Regulations of the
People's Republic of China on the Implementation of Enterprise Income Tax and the Management Measures for theCertification of High-tech Enterprises.On December 20, 2021, Huizhou Topband Electrical Technology Co., Ltd. obtained the Certificate for High-tech Enterprise that is numbered GR202144003640 and issued by the Department of Science and Technology ofGuangdong Province, the Department of Finance of Guangdong Province, and Guangdong Provincial Tax Service,State Taxation Administration. This Certificate is valid within 3 years from the date of issuance. The corporateincome tax rate applicable for the Company from 2021 to 2023 is 15% in accordance with relevant provisions ofthe Law of the People's Republic of China on Enterprise Income Tax, Regulations of the People's Republic of Chinaon the Implementation of Enterprise Income Tax and the Management Measures for the Certification of High-techEnterprises.On December 23, 2021, Shenzhen Yansheng Software Co., Ltd. obtained the Certificate for High-techEnterprise that is numbered GR202144207744 and issued by Shenzhen Science and Technology InnovationCommission, Shenzhen Finance Commission and Shenzhen Tax Service, State Taxation Administration. ThisCertificate is valid within 3 years from the date of issuance. The corporate income tax rate applicable for theCompany from 2021 to 2023 is 15% in accordance with relevant provisions of the Law of the People's Republic ofChina on Enterprise Income Tax, Regulations of the People's Republic of China on the Implementation of EnterpriseIncome Tax and the Management Measures for the Certification of High-tech Enterprises.On September 15, 2020, Shenzhen Yansheng Software Co., Ltd. passed the verification carried out by theIndustry and Information Technology Bureau of Shenzhen Municipality on the preferential income tax conditionsfor the enterprises engaged in software and integrated circuit design in Shenzhen. According to the provisions ofNo. 68 Announcement of Ministry of Finance and State Taxation Administration on Corporate Income Tax Policiesfor Integrated Circuit Design and Software Industry issued by the Ministry of Finance and State TaxationAdministration in 2019, Shenzhen Yansheng Software Co., Ltd. shall be entitled to the preferential tax policy ofexemptions in two years and reduction in three years, that is, its corporate income tax shall be exempted from thefirst to the second year and reduced by 50% at 25% of statutory tax rate from the third to the fifth year until theexpiration of the preferential period provided that the preferential period shall be calculated from the profit-makingyear before December 31, 2018. The Company's corporate income tax rate from 2019 to 2021 was 12.5%.
On November 25, 2021, the Taizhou Science & Technology Bureau issued the Announcement on theEnterprises to be Included in the National High-tech Enterprise Cultivation Library of Taizhou in 2021, recognizing
Taixing Ninghui Battery Co., Ltd. as a high-tech enterprise. On November 30, 2022, at the working net of High-tech Enterprise Identification Management, the Third Batch of High-tech Enterprises for Identification and Filingin 2021 in Jiangsu Province was published. The Company's applicable corporate income tax rate from 2021 to 2023was 15%.According to CS [2019] No. 13 Notice on the Implementation of Inclusive Tax Relief Policies for Small andMicro Businesses, the small and micro businesses shall pay their corporate income taxes at 20% of tax rate, andreduce the portion of not more than 1 million yuan in their annual taxable incomes by 25% and that of more than 1million yuan but not more than 3 million yuan in their annual taxable incomes by 50% before including such portioninto their taxable incomes. According to Announcement of the State Taxation Administration on MattersConcerning the Implementation of Preferential Income Tax Policies Supporting the Development of Small Low-Profit Enterprises and Individual Industrial and Commercial Households (CS [2021] No. 12), the annual taxableincome of small and low-profit enterprises shall not exceed 1 million yuan. On the basis of the preferential policiesstipulated in Article 2 of the Notice of the Ministry of Finance and the State Administration of Taxation onImplementing the Inclusive Tax Deduction and Exemption Policies for Micro and Small Enterprises (CS [2019] No.
13), the corporate income tax will be halved. The provisions of this Policy apply to Shenzhen Senxuan TechnologyCo., Ltd., Shenzhen Spark IOT Technology Co., Ltd., Shenzhen Tunnu Innovation Co., Ltd., Huizhou TopbandBattery Co., Ltd., Shenzhen Meanstone Intelligent Technology Co., Ltd., Shenzhen Zhongli Consulting Co., Ltd.,Shenzhen Tengyi Industrial Co., Ltd., and Shenzhen Topband Automotive Electronics Co., Ltd. that are subsidiariesand sub-subsidiaries.
3. Others
None
VII. Notes to Items of Consolidated Financial Statements
1. Monetary capital
Unit: yuan
| Items | Ending balance | Beginning balance |
| Cash on hand | 966,707.91 | 1,015,081.13 |
| Bank deposit | 1,391,833,225.22 | 1,337,414,181.07 |
| Other monetary capital | 199,355,771.32 | 429,150,793.87 |
| Total | 1,592,155,704.45 | 1,767,580,056.07 |
| Including: total amount deposited abroad | 271,287,556.54 | 177,157,407.23 |
| Total amount restricted for use due to mortgage, pledge or freezing, etc. | 18,372,985.21 | 31,475,097.87 |
Other description:
Other monetary capital at the end of the period mainly includes the large-denomination certificates of depositof 120,000,000.00 yuan and the fixed-time deposit of 50,000,000.00 yuan. The other restricted monetary capitalamounts to 18,372,985.21 yuan and the unrestricted part amounts to 10,661,717.95 yuan (securities account).
2. Tradable financial assets
Unit: yuan
| Items | Ending balance | Beginning balance |
| Financial asset at fair value and changes through profit or loss | 272,602,542.73 | 214,999,336.74 |
| Including: | ||
| Including: financial products | 4,000,000.00 | |
| Investment in equity instruments | 272,602,542.73 | 210,999,336.74 |
| Including: | ||
| Total | 272,602,542.73 | 214,999,336.74 |
Other description:
None
3. Derivative financial assets
□ Applicable ? Not applicable
Other description:
None
4. Notes receivable
(1) List of classification of notes receivable
Unit: yuan
| Items | Ending balance | Beginning balance |
| Bank acceptance bill | 87,726,220.94 | 141,695,340.12 |
| Commercial acceptance bill | 7,284,348.95 | 19,964,130.09 |
| Total | 95,010,569.89 | 161,659,470.21 |
Unit: yuan
| Category | Ending balance | Beginning balance | ||||||||
| Book balance | Provision for bad debts | Book value | Book balance | Provision for bad debts | Book value | |||||
| Amount | Proportion | Amount | Proportion of | Amount | Proportion | Amount | Proportion of | |||
| provision | provision | |||||||||
| Notes receivable with single provision for bad debts | 87,971,473.36 | 92.37% | 0.00% | 87,971,473.36 | 150,816,667.92 | 93.09% | 0.00% | 150,816,667.92 | ||
| Including: | ||||||||||
| Bank acceptance bill | 87,726,220.94 | 92.11% | 0.00% | 87,726,220.94 | 141,695,340.12 | 87.46% | 0.00% | 141,695,340.12 | ||
| Commercial acceptance bill | 245,252.42 | 0.26% | 0.00% | 245,252.42 | 9,121,327.80 | 5.63% | 0.00% | 9,121,327.80 | ||
| Notes receivable with provision for bad debts by portfolio | 7,264,289.50 | 7.63% | 225,192.97 | 3.10% | 7,039,096.53 | 11,189,682.44 | 6.91% | 346,880.15 | 3.10% | 10,842,802.29 |
| Including: | ||||||||||
| Commercial acceptance bill | 7,264,289.50 | 7.63% | 225,192.97 | 3.10% | 7,039,096.53 | 11,189,682.44 | 6.91% | 346,880.15 | 3.10% | 10,842,802.29 |
| Total | 95,235,762.86 | 100.00% | 225,192.97 | 0.24% | 95,010,569.89 | 162,006,350.36 | 100.00% | 346,880.15 | 0.21% | 161,659,470.21 |
Provision for bad debts by portfolio: 225,192.97
Unit: yuan
| Name | Ending balance | ||
| Book balance | Provision for bad debts | Proportion of provision | |
| Commercial acceptance bill | 7,264,289.50 | 225,192.97 | 3.10% |
Description of the basis for determining the portfolio:
NoneIf the provision for bad debts on notes receivable is based on the general model of expected credit loss, theinformation about the provision for bad debts shall be disclosed by referring to the disclosure method of otherreceivables:
□ Applicable ? Not applicable
(2) Provision for bad debts withdrawn, recovered or reversed in current periodProvision for bad debts in the current period:
Unit: yuan
| Category | Beginning | Amount changed in the current period | Ending balance |
| balance | Provision | Recover or reversal | Write-off | Other | ||
| Provision for bad debts - notes receivable | 346,880.15 | 121,687.18 | 225,192.97 | |||
| Total | 346,880.15 | 121,687.18 | 225,192.97 |
Of which the amount of provision for bad debts recovered or reversed in the current period is significant:
□ Applicable ? Not applicable
(3) Notes receivable pledged by the Company at the end of the period
□ Applicable ? Not applicable
(4) Notes receivable endorsed or discounted by the Company at the end of the period but not yet due at thebalance sheet date
Unit: yuan
| Items | Amount derecognized at the end of period | Amount not derecognized at the end of the period |
| Bank acceptance bill | 56,844,298.34 | |
| Commercial acceptance bill | 150,442.25 | |
| Total | 56,994,740.59 |
(5) Notes that the Company transferred to accounts receivable at the end of the period due to non-performance by drawer
□ Applicable ? Not applicable
(6) Notes receivable actually written off in the current period
□ Applicable ? Not applicable
5. Accounts receivable
(1) Disclosure of accounts receivable by category
Unit: yuan
| Category | Ending balance | Beginning balance | ||||||||
| Book balance | Provision for bad debts | Book value | Book balance | Provision for bad debts | Book value | |||||
| Amount | Proportion | Amount | Proportion of provision | Amount | Proportion | Amount | Proportion of provision | |||
| Accounts receivable with single provision for bad debts | 82,699,866.31 | 3.26% | 70,283,785.12 | 84.99% | 12,416,081.19 | 84,081,324.25 | 3.60% | 70,915,243.12 | 84.34% | 13,166,081.13 |
| Including: | ||||||||||
| Receivables with significant individual amount and single provision for bad debts | 81,649,228.61 | 3.22% | 69,233,147.42 | 84.79% | 12,416,081.19 | 82,399,228.55 | 3.53% | 69,233,147.42 | 84.02% | 13,166,081.13 |
| Receivables with not significant amount but with single provision for bad debts | 1,050,637.70 | 0.04% | 1,050,637.70 | 100.00% | 0.00 | 1,682,095.70 | 0.07% | 1,682,095.70 | 100.00% | |
| Accounts receivable with provision for bad debts by aging combination | 2,450,339,073.11 | 96.74% | 78,828,127.15 | 3.22% | 2,371,510,945.96 | 2,247,009,076.27 | 96.40% | 72,013,691.92 | 3.20% | 2,174,995,384.35 |
| Including: | ||||||||||
| Accounts receivable with provision for bad debts by aging combination | 2,450,339,073.11 | 96.74% | 78,828,127.15 | 3.22% | 2,371,510,945.96 | 2,247,009,076.27 | 96.40% | 72,013,691.92 | 3.20% | 2,174,995,384.35 |
| Total | 2,533,038,939.42 | 100.00% | 149,111,912.27 | 5.89% | 2,383,927,027.15 | 2,331,090,400.52 | 100.00% | 142,928,935.04 | 6.13% | 2,188,161,465.48 |
Single provision for bad debts: 70,283,785.12
Unit: yuan
| Name | Ending balance | |||
| Book balance | Provision for bad debts | Proportion of provision | Reasons for provision | |
| Accounts receivable with a single significant amount and single bad debt provision | 81,649,228.61 | 69,233,147.42 | 84.79% | It is difficult to recover |
| Accounts receivable with insignificant single amount but separate bad debt provision | 1,050,637.70 | 1,050,637.70 | 100.00% | It is difficult to recover |
| Total | 82,699,866.31 | 70,283,785.12 | ||
Provision for bad debts by portfolio: 78,828,127.15
Unit: yuan
| Name | Ending balance | ||
| Book balance | Provision for bad debts | Proportion of provision | |
| Accounts receivable with provision for bad debts by aging combination | 2,450,339,073.11 | 78,828,127.15 | 3.22% |
| Total | 2,450,339,073.11 | 78,828,127.15 |
Description of the basis for determining the portfolio: NoneIf the provision for bad debts on notes receivable is based on the general model of expected credit loss, theinformation about the provision for bad debts shall be disclosed by referring to the disclosure method of otherreceivables:
□ Applicable ? Not applicable
Disclosure by aging
Unit: yuan
| Aging | Ending balance |
| Within 1 year (including 1 year) | 2,516,914,290.06 |
| 1-2 years | 9,369,301.21 |
| 2-3 years | 3,089,442.63 |
| Above 3 years | 3,665,905.52 |
| 3-4 years | 2,273,693.44 |
| 4-5 years | 433,255.48 |
| Above 5 years | 958,956.60 |
| Total | 2,533,038,939.42 |
(2) Provision for bad debts withdrawn, recovered or reversed in current periodProvision for bad debts in the current period:
Unit: yuan
| Category | Beginning balance | Amount changed in the current period | Ending balance | |||
| Provision | Recover or reversal | Write-off | Other | |||
| Provision for bad debts | 142,928,935.04 | 6,849,786.00 | 666,808.77 | 149,111,912.27 | ||
| Total | 142,928,935.04 | 6,849,786.00 | 666,808.77 | 149,111,912.27 | ||
Of which the amount of provision for bad debts recovered or reversed in the current period is significant:
□ Applicable ? Not applicable
(3) Accounts receivable actually written off in the current period
Unit: yuan
| Items | Write-off amount |
| Accounts receivable actually written off | 666,808.77 |
Of which the significant write-offs of accounts receivable:
None
Description of accounts receivable written off:
None
(4) Accounts receivable of top five ending balances grouped by debtors
Unit: yuan
| Name of unit | Ending balance of accounts receivable | Proportion to total ending balances of accounts receivable | Ending balance of provision for bad debts |
| No. 1 | 672,890,156.54 | 26.56% | 20,859,594.85 |
| No. 2 | 77,772,367.29 | 3.07% | 2,477,780.82 |
| No. 3 | 66,988,907.32 | 2.64% | 2,076,656.13 |
| No. 4 | 65,080,405.66 | 2.57% | 52,664,324.53 |
| No. 5 | 61,399,641.38 | 2.42% | 1,903,388.88 |
| Total | 944,131,478.19 | 37.26% |
(5) Accounts receivable derecognized due to transfer of financial assets
□ Applicable ? Not applicable
(6) Amount of assets and liabilities formed by transferring accounts receivable and continuing to be involved
□ Applicable ? Not applicable
Other descriptions: None
6. Receivables financing
Unit: yuan
| Items | Ending balance | Beginning balance |
| Bank acceptance bill | 48,766,925.55 | 26,520,757.05 |
| Accounts receivable | 138,030,617.46 | 10,381,750.80 |
| Total | 186,797,543.01 | 36,902,507.85 |
Changes in increase or decrease in receivables financing and changes in fair value in the current period
□ Applicable ? Not applicable
If the provision for impairment on receivables financing is based on the general model of expected credit loss, theinformation about the provision for impairment shall be disclosed by referring to the disclosure method of otherreceivables:
? Applicable □ Not applicable
| Provision for bad debts | First stage | Second stage | Third stage | Total |
| Expected credit loss in the next 12 months | Expected credit loss for the entire duration (no credit impairment) | Expected credit loss for the entire duration (credit impairment |
| occurred) | ||||
| Balance as of January 1, 2022 | 321,834.27 | 321,834.27 | ||
| Accrual in the current period | 4,094,005.92 | 4,094,005.92 | ||
| Balance as of June 30, 2022 | 4,415,840.19 | - | - | 4,415,840.19 |
Other description:
None
7. Prepayments
(1) List of advance payments by aging
Unit: yuan
| Aging | Ending balance | Beginning balance | ||
| Amount | Proportion | Amount | Proportion | |
| Within 1 year | 78,781,848.02 | 98.96% | 40,538,366.14 | 93.35% |
| 1-2 years | 578,474.25 | 0.73% | 666,816.83 | 5.06% |
| 2-3 years | 208,882.44 | 0.26% | 94,392.13 | 1.08% |
| Above 3 years | 39,929.01 | 0.05% | 20,709.92 | 0.51% |
| Total | 79,609,133.72 | 41,320,285.02 | ||
Explanation of the cause for untimely settlement of advance payments aging more than one year with importantamounts:
None
(2) Accounts prepaid of the top five prepaying entities for ending balance
The total amount of prepayments of top five ending balances grouped by debtors in the year was 17,776,615.70yuan, accounting for 22.33% of the total ending balances of prepayments.Other description:
None
8. Other receivables
Unit: yuan
| Items | Ending balance | Beginning balance |
| Other receivables | 56,585,892.25 | 50,156,221.82 |
| Total | 56,585,892.25 | 50,156,221.82 |
(1) Interest receivable
1) Classification of interest receivable
□ Applicable ? Not applicable
2) Significant overdue interest
□ Applicable ? Not applicable
3) Provision for bad debts
□ Applicable ? Not applicable
(2) Dividends receivable
1) Classification of interest receivable
□ Applicable ? Not applicable
2) Important dividends receivable aged over 1 year
□ Applicable ? Not applicable
3) Provision for bad debts
□ Applicable ? Not applicable
Other description:
None
(3) Other receivables
1) Classification of other receivables by nature of amount
Unit: yuan
| Nature of payment | Book balance at the end of the period | Book balance at the beginning of the period |
| VAT export rebate | 10,510,388.97 | 14,317,249.26 |
| Employee loans | 12,496,377.85 | 11,891,648.41 |
| Margin, deposit | 33,182,470.28 | 28,560,062.74 |
| Other | 5,886,140.51 | 638,217.83 |
| Total | 62,075,377.61 | 55,407,178.24 |
2) Provision for bad debts
Unit: yuan
| Provision for bad debts | First stage | Second stage | Third stage | Total |
| Expected credit loss in the next 12 months | Expected credit loss for the entire duration (no credit impairment) | Expected credit loss for the entire duration (credit impairment occurred) | ||
| Balance as of January 1, 2022 | 5,250,956.42 | 5,250,956.42 |
| Balance as of January 1, 2022 in the current period | ||||
| Accrual in the current period | 238,528.94 | 238,528.94 | ||
| Balance as of June 30, 2022 | 5,489,485.36 | 5,489,485.36 |
Changes in book balance with significant changes in loss reserves in the current period
□ Applicable ? Not applicable
Disclosure by aging
Unit: yuan
| Aging | Ending balance |
| Within 1 year (including 1 year) | 47,652,985.96 |
| 47,652,985.96 | |
| 1-2 years | 7,415,032.74 |
| 2-3 years | 1,499,798.73 |
| Above 3 years | 5,507,560.18 |
| 3-4 years | 3,710,336.23 |
| 4-5 years | 1,775,611.80 |
| Above 5 years | 21,612.15 |
| Total | 62,075,377.61 |
3) Bad debt provision withdrawn, recovered or reversed in the current periodProvision for bad debts in the current period:
Unit: yuan
| Category | Beginning balance | Amount changed in the current period | Ending balance | |||
| Provision | Recover or reversal | Write-off | Other | |||
| Provision for bad debts | 5,250,956.42 | 238,528.94 | 5,489,485.36 | |||
| Total | 5,250,956.42 | 238,528.94 | 5,489,485.36 | |||
Of which the amount of provision for bad debts recovered or reversed in the current period is significant:
□ Applicable ? Not applicable
4) Other receivables actually written off in the current period
□ Applicable ? Not applicable
Of which the significant write-offs of other receivables:
□ Applicable ? Not applicable
Description of other receivable written off:
None
5) Other receivables of top five ending balances grouped by debtors
Unit: yuan
| Name of unit | Nature of payment | Ending balance | Aging | Proportion to total ending balances of other receivables | Ending balance of provision for bad debts |
| No. 1 | Export rebate | 10,510,388.97 | Within 1 year | 16.93% | |
| No. 2 | Investment margin | 9,000,000.00 | Within 1 year | 14.50% | |
| No. 3 | Margin, deposit | 3,463,218.81 | Within 1 year | 5.58% | 173,160.94 |
| No. 4 | Margin, deposit | 1,520,178.00 | 2-3 years | 2.45% | 456,053.40 |
| No. 5 | Margin, deposit | 1,000,000.00 | 4-5 years | 1.61% | 800,000.00 |
| Total | 25,493,785.78 | 41.07% | 1,429,214.34 |
6) Receivables involving government subsidies
None
7) Other receivables derecognized due to transfer of financial assets
□ Applicable ? Not applicable
8) Amount of assets and liabilities formed by transferring other receivables and continuing to be involved
□ Applicable ? Not applicable
Other description:
None
9. Inventory
Whether the Company is required to comply with the disclosure requirements of the property industryNo
(1) Inventory classification
Unit: yuan
| Items | Ending balance | Beginning balance | ||||
| Book balance | Provision for decline in value of inventories or provision for impairment of contract performance cost | Book value | Book balance | Provision for decline in value of inventories or provision for impairment of contract performance cost | Book value | |
| Raw materials | 1,409,913,019.80 | 87,035,791.46 | 1,322,877,228.34 | 1,373,010,350.15 | 87,214,891.71 | 1,285,795,458.44 |
| Goods in process | 145,417,071.36 | 145,417,071.36 | 108,042,400.38 | 14,608.82 | 108,027,791.56 | |
| Goods on hand | 533,250,453.81 | 9,725,109.74 | 523,525,344.07 | 601,322,955.25 | 15,911,446.54 | 585,411,508.71 |
| Goods shipped in transit | 139,260,714.65 | 1,832,879.78 | 137,427,834.87 | 122,939,046.46 | 3,114,595.53 | 119,824,450.93 |
| Self-manufactured semi-finished product | 77,861,681.45 | 6,712,565.54 | 71,149,115.91 | 80,789,830.12 | 3,169,232.84 | 77,620,597.28 |
| Low priced and easily worn articles | 94,094.91 | 94,094.91 | 97,460.86 | 97,460.86 | ||
| Materials entrusted for processing | 7,625,498.26 | 7,625,498.26 | ||||
| Total | 2,305,797,035.98 | 105,306,346.52 | 2,200,490,689.46 | 2,293,827,541.48 | 109,424,775.44 | 2,184,402,766.04 |
(2) Provision for decline in value of inventories and provision for impairment of contract performance cost
Unit: yuan
| Items | Beginning balance | Increase in the current period | Decrease amount in the current period | Ending balance | ||
| Provision | Other | Reversal or write-off | Other | |||
| Raw materials | 87,214,891.71 | 44,463,834.71 | 44,642,934.96 | 87,035,791.46 | ||
| Goods in process | 14,608.82 | 14,608.82 | ||||
| Goods on hand | 15,911,446.54 | 289,835.64 | 6,476,172.44 | 9,725,109.74 | ||
| Goods shipped in transit | 3,114,595.53 | 70,069.32 | 1,351,785.07 | 1,832,879.78 | ||
| Self-manufactured semi-finished product | 3,169,232.84 | 4,033,512.14 | 490,179.44 | 6,712,565.54 | ||
| Total | 109,424,775.44 | 48,857,251.81 | 52,975,680.73 | 105,306,346.52 | ||
(3) Description of capitalized amount of borrowing costs included in ending balance of inventory
□ Applicable ? Not applicable
(4) Description of current amortization amount of contract performance cost
□ Applicable ? Not applicable
10. Contractual assets
□ Applicable ? Not applicable
Amount and reasons for significant changes in the book value of contractual assets during the current period:
□ Applicable ? Not applicable
If the provision for impairment on contractual assets is based on the general model of expected credit loss, theinformation about the provision for bad debts shall be disclosed by referring to the disclosure method of otherreceivables:
□ Applicable ? Not applicable
Provision for impairment of current contract assets:
□ Applicable ? Not applicable
Other description:
None
11. Assets held for sale
□ Applicable ? Not applicable
Other description:
None
12. Non-current assets due within one year
□ Applicable ? Not applicable
Important debt investments/other debt investments
□ Applicable ? Not applicable
Other description:
None
13. Other current assets
Unit: yuan
| Items | Ending balance | Beginning balance |
| Input tax of VAT | 113,621,975.10 | 92,861,498.25 |
| Other taxes paid in advance | 7,980,715.52 | 19,851,631.11 |
| Upfront IPO-related fees | 358,490.57 | |
| Total | 121,602,690.62 | 113,071,619.93 |
Other description:
None
14. Debt investment
□ Applicable ? Not applicable
Changes in book balance with significant changes in loss reserves in the current period
□ Applicable ? Not applicable
Other description:
None
15. Other debt investment
□ Applicable ? Not applicable
Changes in book balance with significant changes in loss reserves in the current period
□ Applicable ? Not applicable
Other description:
None
16. Long-term receivables
(1) Situation of long-term receivables
□ Applicable ? Not applicable
Changes in book balance with significant changes in loss reserves in the current period
□ Applicable ? Not applicable
(2) Long-term receivables derecognized due to transfer of financial assets
□ Applicable ? Not applicable
(3) Amount of assets and liabilities formed by transferring long-term receivables and continuing to beinvolved
□ Applicable ? Not applicable
Other description:
None
17. Long-term equity investment
Unit: yuan
Investee
| Beginning balance (book value) | Changes in increase or decrease in the current period | Ending balance (book value) | Ending balance of provision for impairment | |||||||
| Additional investment | Decrease in investment | Profits and losses on investment recognized under equity method | Adjustment to other comprehensive income | Other changes in equity | Declaration of distribution for cash dividends or profits | Provision for impairment | Other | |||
I. Joint venture
II. Associated enterprises
ShenzhenYuchengxinPowerTechnologyCo., Ltd.
| 9,764,719.19 |
Shenzhen DakaOptoelectronicsCo., Ltd.
| 5,975,059.85 | -31,393.79 | 5,943,666.06 |
Pas ElectronicTechnology(Nanjing) Co.,Ltd.
| 7,967,433.99 | -864,170.61 | 7,103,263.38 |
ShanghaiYidong PowerTechnologyCo., Ltd.
| 12,176,633.98 | -593,998.60 | 11,582,635.38 |
Subtotal
| 26,119,127.82 | -1,489,563.00 | 24,629,564.82 | 9,764,719.19 |
Total
| 26,119,127.82 | -1,489,563.00 | 24,629,564.82 | 9,764,719.19 |
Other description:
None
18. Investment in other equity instruments
□ Applicable ? Not applicable
Other description:
None
19. Other non-current financial assets
□ Applicable ? Not applicable
Other description:
None
20. Investment property
(1) Investment property with cost measurement model
? Applicable □ Not applicable
Unit: yuan
| Items | Houses and buildings | Land usage right | Construction in progress | Total |
| I. Original book value | ||||
| 1. Beginning balance | 94,945,556.51 | 94,945,556.51 | ||
| 2. Increase in the current period | 24,125,005.55 | 24,125,005.55 | ||
| (1) Outsourcing | ||||
| (2) Transfer in of inventory\fixed assets\construction in progress | 24,125,005.55 | 24,125,005.55 | ||
| (3) Increment from business combination | ||||
| 3. Decrease in the current period | ||||
| (1) Disposal | ||||
| (2) Other transfer out | ||||
| 4. Ending balance | 119,070,562.06 | 119,070,562.06 | ||
| II. Accumulated depreciation and accumulated amortization | ||||
| 1. Beginning balance | 7,970,442.20 | 7,970,442.20 | ||
| 2. Increase in the current period | 3,443,464.52 | 3,443,464.52 | ||
| (1) Provision or amortization | 1,178,626.03 | 1,178,626.03 | ||
| (2) Transfer in of inventory, fixed assets and construction in progress | 2,264,838.49 | 2,264,838.49 | ||
| 3. Decrease in the current period | ||||
| (1) Disposal | ||||
| (2) Other transfer out | ||||
| 4. Ending balance | 11,413,906.72 | 11,413,906.72 | ||
| III. Provision for impairment | ||||
| 1. Beginning balance | ||||
| 2. Increase in the current period | ||||
| (1) Accrual | ||||
| 3. Decrease in the current period | ||||
| (1) Disposal | ||||
| (2) Other transfer out | ||||
| 4. Ending balance | ||||
| IV. Book value | ||||
| 1. Ending book value | 107,656,655.34 | 107,656,655.34 | ||
| 2. Beginning book value | 86,975,114.31 | 86,975,114.31 |
(2) Investment property with fair value measurement model
□ Applicable ? Not applicable
(3) Investment property without property certificate of title
□ Applicable ? Not applicable
Other description:
None
21. Fixed assets
Unit: yuan
| Items | Ending balance | Beginning balance |
| Fixed assets | 1,720,571,118.72 | 1,299,517,887.54 |
| Total | 1,720,571,118.72 | 1,299,517,887.54 |
(1) Situation about fixed assets
Unit: yuan
| Items | Houses and buildings | Machinery and equipment | Transportation equipment | Office equipment and others | Total |
| I. Original book value: | |||||
| 1. Beginning balance | 816,660,305.08 | 695,192,193.23 | 2,567,259.53 | 227,092,564.50 | 1,741,512,322.34 |
| 2. Increase in the current period | 359,143,085.59 | 143,019,136.74 | 302,781.40 | 23,645,568.31 | 526,110,572.03 |
| (1) Purchase | 31,371.18 | 45,107,997.05 | 294,099.52 | 23,012,633.58 | 68,446,101.33 |
| (2) Transfer into projects under construction | 358,367,902.49 | 95,841,327.42 | 426,548.65 | 454,635,778.56 | |
| (3) Increment from business combination | |||||
| (4) Impact of exchange rate changes | 743,811.92 | 2,069,812.27 | 8,681.88 | 206,386.08 | 3,028,692.15 |
| 3. Decrease in the current period | 24,125,005.55 | 21,691,241.35 | 220,383.14 | 674,215.81 | 46,710,845.85 |
| (1) Disposal or scrapping | 21,691,241.35 | 220,383.14 | 674,215.81 | 22,585,840.30 | |
| (2) Transfer in of investment property | 24,125,005.55 | 24,125,005.55 | |||
| 4. Ending balance | 1,151,678,385.12 | 816,520,088.62 | 2,649,657.79 | 250,063,917.00 | 2,220,912,048.52 |
| II. Accumulated depreciation | |||||
| 1. Beginning balance | 118,838,866.02 | 220,462,662.52 | 2,199,293.28 | 100,493,612.98 | 441,994,434.80 |
| 2. Increase in the current period | 12,096,646.33 | 37,863,498.55 | 155,860.73 | 17,051,174.68 | 67,167,180.29 |
| (1) Accrual | 12,096,646.33 | 37,863,498.55 | 155,860.73 | 17,051,174.68 | 67,167,180.29 |
| 3. Decrease in the current period | 2,264,838.49 | 5,477,252.99 | 209,363.98 | 869,229.83 | 8,820,685.29 |
| (1) Disposal or scrapping | 5,477,252.99 | 209,363.98 | 869,229.83 | 6,555,846.80 | |
| (2) Transfer in of investment property | 2,264,838.49 | 2,264,838.49 | |||
| 4. Ending balance | 128,670,673.86 | 252,848,908.08 | 2,145,790.03 | 116,675,557.83 | 500,340,929.80 |
| III. Provision for impairment | |||||
| 1. Beginning balance | |||||
| 2. Increase in the current period | |||||
| (1) Accrual | |||||
| 3. Decrease in the current period | |||||
| (1) Disposal or scrapping | |||||
| 4. Ending balance | |||||
| IV. Book value | |||||
| 1. Ending book value | 1,023,007,711.26 | 563,671,180.54 | 503,867.76 | 133,388,359.17 | 1,720,571,118.72 |
| 2. Beginning book value | 697,821,439.06 | 474,729,530.71 | 367,966.25 | 126,598,951.52 | 1,299,517,887.54 |
(2) Temporary idle fixed assets
□ Applicable ? Not applicable
(3) Fixed assets leased out through operating lease
□ Applicable ? Not applicable
(4) Fixed assets without certificate of title
□ Applicable ? Not applicable
Other description:
None
(5) Disposal of fixed assets
□ Applicable ? Not applicable
Other description:
None
22. Construction in progress:
Unit: yuan
| Items | Ending balance | Beginning balance |
| Construction in progress | 143,094,482.19 | 495,248,025.93 |
| Total | 143,094,482.19 | 495,248,025.93 |
(1) Projects under construction
Unit: yuan
| Items | Ending balance | Beginning balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Chongqing Yiyuan | 24,945,471.83 | 24,945,471.83 | 16,356,912.92 | 16,356,912.92 | ||
| Decoration of Huizhou Plant | 2,319,136.25 | 2,319,136.25 | 2,966,677.50 | 2,966,677.50 | ||
| Topband (India) Plant | 15,957,672.34 | 15,957,672.34 | 15,671,909.07 | 15,671,909.07 | ||
| Ningbo Topband Industrial Park | 17,836,966.56 | 17,836,966.56 | 342,090,917.50 | 342,090,917.50 | ||
| Test equipment to be commissioned | 29,478,749.08 | 29,478,749.08 | 102,011,463.63 | 102,011,463.63 | ||
| Vietnam Dong Nai Decoration | 3,711,048.82 | 3,711,048.82 | 7,740,644.30 | 7,740,644.30 | ||
| Dormitory renovation of Huizhou plant | 953,557.22 | 953,557.22 | 953,557.22 | 953,557.22 | ||
| Huizhou YAKO Automation Plant | 16,752,921.13 | 16,752,921.13 | 3,452,853.07 | 3,452,853.07 | ||
| Qingdao Plant | 1,804,902.19 | 1,804,902.19 | 1,086,337.54 | 1,086,337.54 | ||
| Huizhou Electrical No. 2 Industrial Park Phase-I Project | 4,058,841.31 | 4,058,841.31 | 2,916,753.18 | 2,916,753.18 | ||
| Nantong Industrial Park | 4,231,698.02 | 4,231,698.02 | 0.00 | |||
| Plant decoration in Mexico | 17,369,660.72 | 17,369,660.72 | 0.00 | |||
| Other sporadic works | 3,673,856.72 | 3,673,856.72 | ||||
| Total | 143,094,482.19 | 143,094,482.19 | 495,248,025.93 | 495,248,025.93 | ||
(2) Changes in the important projects under construction in the current period
Unit: yuan
| Project name | Budget | Beginning balance | Increase in the current period | Amount of transfer into fixed assets this period | Other decrements this period | Ending balance | Proportion of accumulated project investment in budget | Project progress | Accumulated amount of interest capitalization | Including: interest capitalization amount in the current period | Interest capitalization rate in the current period | Capital source |
| Chongqing Yiyuan | 230,000,000.00 | 16,356,912.92 | 8,588,558.91 | 24,945,471.83 | 93.91% | 94% | Capital raising | |||||
| Topband (India) Plant | 136,004,000.00 | 15,671,909.07 | 379,172.09 | 93,408.82 | 15,957,672.34 | 85.30% | 85% | Other | ||||
| Ningbo Topband | 465,704,300.00 | 342,090,917.50 | 26,231,211.50 | 350,476,789.87 | 8,372.57 | 17,836,966.56 | 73.28% | 79% | Capital raising |
| Industrial Park | ||||||||||||
| Plant in Dong Nai, Vietnam | 75,000,000.00 | 7,740,644.30 | 7,754,828.98 | 7,891,112.62 | 3,893,311.85 | 3,711,048.81 | 90.90% | 85% | Other | |||
| Total | 906,708,300.00 | 381,860,383.79 | 42,953,771.48 | 358,367,902.49 | 3,995,093.24 | 62,451,159.54 |
(3) Provision for impairment of project under construction in the current period
□ Applicable ? Not applicable
Other description:
None
(4) Engineering materials
□ Applicable ? Not applicable
Other description:
None
23. Productive biological assets
(1) Productive biological assets with cost measurement model
□ Applicable ? Not applicable
(2) Productive biological assets with fair value measurement model
□ Applicable ? Not applicable
24. Oil and gas assets
□ Applicable ? Not applicable
25. Right-of-use assets
Unit: yuan
| Items | Houses and buildings | Total |
| I. Original book value | ||
| 1. Beginning balance | 74,075,277.50 | 74,075,277.50 |
| 2. Increase in the current period | 8,603,955.28 | 8,603,955.28 |
| (1) The lease contract for the current period | 8,189,065.35 | 8,189,065.35 |
| (2) Increase in original value due to contract change | 414,889.93 | 414,889.93 |
| 3. Decrease in the current period |
| 4. Ending balance | 82,679,232.78 | 82,679,232.78 |
| II. Accumulated depreciation | ||
| 1. Beginning balance | 15,907,125.62 | 15,907,125.62 |
| 2. Increase in the current period | 11,559,119.61 | 11,559,119.61 |
| (1) Accrual | 11,559,119.61 | 11,559,119.61 |
| 3. Decrease in the current period | ||
| (1) Disposal | ||
| 4. Ending balance | 27,466,245.23 | 27,466,245.23 |
| III. Provision for impairment | ||
| 1. Beginning balance | ||
| 2. Increase in the current period | ||
| (1) Accrual | ||
| 3. Decrease in the current period | ||
| (1) Disposal | ||
| 4. Ending balance | ||
| IV. Book value | ||
| 1. Ending book value | 55,212,987.55 | 55,212,987.55 |
| 2. Beginning book value | 58,168,151.88 | 58,168,151.88 |
Other description:
None
26. Intangible assets
(1) Situation of intangible assets
Unit: yuan
| Items | Land usage right | Patent right | Non-patented technology | Software | Trademark | Total |
| I. Original book value | ||||||
| 1. Beginning balance | 238,231,231.17 | 435,321.58 | 395,881,185.31 | 23,753,932.02 | 9,728,450.00 | 668,030,120.08 |
| 2. Increase in the current period | 1,739,622.05 | 46,777,128.43 | 356,150.23 | 48,872,900.71 | ||
| (1) Purchase | 483,730.00 | 356,150.23 | 839,880.23 | |||
| (2) Internal R&D | 46,777,128.43 | 46,777,128.43 | ||||
| (3) Increment from business combination | ||||||
| (4) Increase due to exchange rate changes | 1,255,892.05 | 1,255,892.05 | ||||
| 3. Decrease in the | 293,768.36 | 293,768.36 |
| current period | ||||||
| (1) Disposal | ||||||
| (2) Decrease due to exchange rate changes | 293,768.36 | 293,768.36 | ||||
| 4. Ending balance | 239,677,084.86 | 435,321.58 | 442,658,313.74 | 24,110,082.25 | 9,728,450.00 | 716,609,252.43 |
| II. Accumulated amortization | ||||||
| 1. Beginning balance | 15,679,029.95 | 435,321.58 | 190,562,973.49 | 20,088,159.26 | 5,624,862.50 | 232,390,346.78 |
| 2. Increase in the current period | 1,957,779.30 | 36,492,956.85 | 945,554.24 | 1,122,408.22 | 40,518,698.61 | |
| (1) Accrual | 1,957,779.30 | 36,492,956.85 | 945,554.24 | 1,122,408.22 | 40,518,698.61 | |
| (2) Increase due to exchange rate changes | ||||||
| 3. Decrease in the current period | 253,127.18 | 253,127.18 | ||||
| (1) Disposal | ||||||
| (2) Decrease due to exchange rate changes | 253,127.18 | 253,127.18 | ||||
| 4. Ending balance | 17,383,682.06 | 435,321.58 | 227,055,930.34 | 21,033,713.50 | 6,747,270.72 | 272,655,918.20 |
| III. Provision for impairment | ||||||
| 1. Beginning balance | ||||||
| 2. Increase in the current period | ||||||
| (1) Accrual | ||||||
| 3. Decrease in the current period | ||||||
| (1) Disposal | ||||||
| 4. Ending balance | ||||||
| IV. Book value | ||||||
| 1. Ending book value | 222,293,402.79 | 215,602,383.40 | 3,076,368.75 | 2,981,179.28 | 443,953,334.22 | |
| 2. Beginning book value | 222,552,201.22 | 205,318,211.82 | 3,665,772.76 | 4,103,587.50 | 435,639,773.30 |
The proportion of intangible assets formed through internal R&D in the balance of intangible assets at the end ofthe current period accounted for 6.53%.
(2) Situation of land usage right without property certificate of title
□ Applicable ? Not applicable
Other description:
None
27. Development expenditure
Unit: yuan
| Items | Beginning balance | Increase in the current period | Decrease amount in the current period | Ending balance | ||||
| Internal development expenditure | Other | Recognized as intangible assets | Transferred to current profits and losses | |||||
| Intelligent controller project | 49,182,845.49 | 54,786,544.75 | 28,942,388.79 | 75,027,001.45 | ||||
| Lithium battery project | 6,675,242.57 | 9,630,943.40 | 4,460,551.65 | 11,845,634.32 | ||||
| Motor and control system project | 10,500,319.42 | 2,873,868.57 | 13,374,187.99 | |||||
| Total | 66,358,407.48 | 67,291,356.72 | 46,777,128.43 | 86,872,635.77 | ||||
Other description:
None
28. Goodwill
(1) Original book value of goodwill
Unit: yuan
| Name of investees or items forming goodwill | Beginning balance | Increase in the current period | Decrement in the current period | Ending balance | ||
| Disposal formed by business combination | ||||||
| Shenzhen YAKO Automation Technology Co., Ltd. | 107,314,446.71 | 107,314,446.71 | ||||
| Shenzhen Allied Control System Co., Ltd. | 53,768,699.68 | 53,768,699.68 | ||||
| Shenzhen Meanstone Intelligent Technology Co., Ltd. | 3,006,892.59 | 3,006,892.59 | ||||
| Hangzhou Zhidong Motor Technology Co., Ltd. | 1,322,921.77 | 1,322,921.77 | ||||
| Taixing Ninghui Battery Co., Ltd. | 1,962,891.12 | 1,962,891.12 | ||||
| Shenzhen Tengyi Industrial Co., Ltd. | 131,783.24 | 131,783.24 | ||||
| Total | 167,507,635.11 | 167,507,635.11 | ||||
(2) Impairment of goodwill
Unit: yuan
| Name of investees or items forming goodwill | Beginning balance | Increase in the current period | Decrement in the current period | Ending balance | ||
| Provision | ||||||
| Shenzhen Allied Control System Co., Ltd. | 53,768,699.68 | 53,768,699.68 | ||||
| Shenzhen Meanstone Intelligent Technology Co., Ltd. | 3,006,892.59 | 3,006,892.59 | ||||
| Total | 56,775,592.27 | 56,775,592.27 |
Information about the asset group or portfolio of goodwillNoneDescription of goodwill impairment test process, key parameters (e.g. growth rate during the forecast period, growthrate during the stabilization period, profitability, discount rate, forecast period, etc. when the present value of futurecash flow is expected) and method for recognizing impairment loss of goodwill:
NoneImpact of goodwill impairment testNoneOther description:
None
29. Long-term deferred expenses
Unit: yuan
| Items | Beginning balance | Increase in the current period | Amortization in the current period | Other reduced amount | Ending balance |
| Decoration cost | 94,763,914.58 | 10,557,592.24 | 16,005,463.90 | 89,316,042.92 | |
| Other | 387,701.80 | 5,197,129.43 | 2,326,718.12 | 3,258,113.11 | |
| Total | 95,151,616.38 | 15,754,721.67 | 18,332,182.02 | 92,574,156.03 |
Other description:
None
30. Deferred tax assets/deferred tax liabilities
(1) Non-offset deferred tax assets
Unit: yuan
| Items | Ending balance | Beginning balance | ||
| Deductible temporary differences | Deferred tax assets | Deductible temporary differences | Deferred tax assets | |
| Provision for asset impairment | 272,048,720.32 | 41,779,910.07 | 261,692,978.84 | 40,332,191.17 |
| Deductible loss | 144,811,506.82 | 28,336,235.00 | 69,221,226.16 | 13,336,499.73 |
| Amortization of intangible assets | 75,799,406.84 | 11,369,911.02 | 60,259,563.87 | 9,038,934.58 |
| Deferred income | 15,201,300.00 | 2,280,195.00 | 14,150,200.00 | 2,122,530.00 |
| Option fee | 64,206,307.20 | 9,630,946.08 | 253,046,279.23 | 37,956,941.88 |
| Total | 572,067,241.18 | 93,397,197.17 | 658,370,248.10 | 102,787,097.36 |
(2) Deferred tax liabilities without offset
Unit: yuan
| Items | Ending balance | Beginning balance | ||
| Taxable temporary difference | Deferred tax liabilities | Taxable temporary difference | Deferred tax liabilities | |
| Valuation and appreciation of assets of business merger under different control | 1,245,029.87 | 186,754.48 | 2,589,919.73 | 388,487.96 |
| Changes in fair value of tradable financial assets | 179,347,913.30 | 22,951,786.25 | 147,744,707.31 | 22,161,706.10 |
| Book-tax difference of fixed assets depreciation | 22,861,445.75 | 5,754,225.90 | 10,334,504.12 | 2,570,545.66 |
| Book-tax difference of rental income | 686,676.15 | 171,669.04 | 4,638,866.49 | 1,159,716.62 |
| Total | 204,141,065.07 | 29,064,435.67 | 165,307,997.65 | 26,280,456.34 |
(3) Deferred tax assets or liabilities listed by net amount after offset
Unit: yuan
| Items | Amount of offset between deferred tax assets and liabilities at the end of the period | Ending balance of deferred tax assets or liabilities after offset | Amount of mutual offset between deferred tax assets and liabilities at the beginning of the period | Beginning balance of deferred tax assets or liabilities after offset |
| Deferred tax assets | 93,397,197.17 | 102,787,097.36 | ||
| Deferred tax liabilities | 29,064,435.66 | 26,280,456.34 |
(4) Details of unrecognized deferred tax assets
Unit: yuan
| Items | Ending balance | Beginning balance |
| Deductible temporary differences | 2,264,776.17 | 6,322,216.54 |
| Deductible loss | 14,499,458.57 | 32,682,476.84 |
| Total | 16,764,234.74 | 39,004,693.38 |
(5) Deductible loss of unrecognized deferred tax assets will mature in the following years
Unit: yuan
| Year | Ending amount | Beginning amount | Remarks |
| 2023 | |||
| 2024 | |||
| 2025 | |||
| 2026 | 277,177.40 | 2,183,482.54 | |
| 2027 | 500,073.69 | ||
| No time limit | 13,722,207.48 | 30,498,994.30 | |
| Total | 14,499,458.57 | 32,682,476.84 |
Other description:
None
31. Other non-current assets
Unit: yuan
| Items | Ending balance | Beginning balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Prepayment for long-term assets | 307,315,620.42 | 307,315,620.42 | 72,041,428.40 | 72,041,428.40 | ||
| Total | 307,315,620.42 | 307,315,620.42 | 72,041,428.40 | 72,041,428.40 | ||
Other description:
None
32. Short-term loans
(1) Classification of short-term borrowings:
Unit: yuan
| Items | Ending balance | Beginning balance |
| Credit loan | 714,100,000.00 | 400,321,259.95 |
| Undue notes payable | 10,568,584.75 | 9,209,847.31 |
| Total | 724,668,584.75 | 409,531,107.26 |
Description of classification of short-term loans:
None
(2) Overdue short-term loans
The total amount of overdue but not repaid short-term loans at the end of the current period is 0.00 yuan, of whichthe important overdue but not repaid short-term loans are as follows:
□ Applicable ? Not applicable
Other description:
None
33. Tradable financial liabilities
□ Applicable ? Not applicable
Other description:
None
34. Derivative financial liabilities
□ Applicable ? Not applicable
Other description:
None
35. Notes payable
Unit: yuan
| Category | Ending balance | Beginning balance |
| Bank acceptance bill | 1,253,202,540.98 | 1,231,106,148.24 |
| Total | 1,253,202,540.98 | 1,231,106,148.24 |
The total amount of notes payable due but unpaid at the end of the current period was 0.00 yuan.
36. Accounts payable
(1) Accounts payable listed
Unit: yuan
| Items | Ending balance | Beginning balance |
| Within 1 year | 1,518,687,879.28 | 1,493,504,084.34 |
| 1-2 years | 2,167,820.25 | 11,697,003.66 |
| 2-3 years | 1,595,291.62 | 4,533,633.55 |
| Above 3 years | 1,648,581.61 | 1,550,275.01 |
| Total | 1,524,099,572.76 | 1,511,284,996.56 |
(2) Significant accounts payable aged over 1 year
□ Applicable ? Not applicable
Other description:
None
37. Advances received
(1) Advances received listed
Unit: yuan
| Items | Ending balance | Beginning balance |
| Within 1 year (including 1 year) | 974,629.25 | 353,895.16 |
| Total | 974,629.25 | 353,895.16 |
(2) Important advance receipts with aging over 1 year
□ Applicable ? Not applicable
Other description:
None
38. Contractual liabilities
Unit: yuan
| Items | Ending balance | Beginning balance |
| Advances on sales | 140,315,780.40 | 93,328,006.70 |
| Total | 140,315,780.40 | 93,328,006.70 |
Amount of and reasons for significant changes in book value during the reporting period
□ Applicable ? Not applicable
39. Employee compensation payable
(1) Presentation of employee pay payable
Unit: yuan
| Items | Beginning balance | Increase in the current period | Decrement in the current period | Ending balance |
| I. Short-term compensation | 198,774,619.59 | 770,678,731.96 | 830,634,537.55 | 138,818,814.00 |
| II. Post-employment benefits - defined contribution plan | 89,176.43 | 37,940,319.31 | 37,795,256.52 | 234,239.22 |
| Total | 198,863,796.02 | 808,619,051.27 | 868,429,794.07 | 139,053,053.22 |
(2) Reporting of short-term remuneration
Unit: yuan
| Items | Beginning balance | Increase in the current period | Decrement in the current period | Ending balance |
| 1. Wages, bonuses, allowances and subsidies | 196,488,729.39 | 727,845,632.14 | 787,976,059.75 | 136,358,301.78 |
| 2. Employee benefits | 647,448.84 | 16,442,519.90 | 16,627,929.30 | 462,039.44 |
| 3. Social insurance expense | 146,677.04 | 12,605,713.57 | 12,623,499.04 | 128,891.57 |
| Including: medical insurance premiums | 141,117.22 | 11,289,399.04 | 11,308,307.39 | 122,208.87 |
| Industrial injury insurance expense | 3,334.60 | 433,497.80 | 432,374.92 | 4,457.48 |
| Maternity insurance expense | 2,225.22 | 882,816.73 | 882,816.73 | 2,225.22 |
| 4. Housing provident fund | 13,320,777.04 | 13,320,777.04 | ||
| 5. Trade union funds and staff education funds | 249.29 | 4,041.31 | 3,981.95 | 308.65 |
| 8. Others | 1,491,515.03 | 460,048.00 | 82,290.47 | 1,869,272.56 |
| Total | 198,774,619.59 | 770,678,731.96 | 830,634,537.55 | 138,818,814.00 |
(3) List of defined contribution plan
Unit: yuan
| Items | Beginning balance | Increase in the current period | Decrement in the current period | Ending balance |
| 1. Basic endowment insurance | 87,064.50 | 37,317,213.89 | 37,178,020.92 | 226,257.47 |
| 2. Unemployment insurance expense | 2,111.93 | 623,105.42 | 617,235.60 | 7,981.75 |
| Total | 89,176.43 | 37,940,319.31 | 37,795,256.52 | 234,239.22 |
Other description:
None
40. Taxes payable
Unit: yuan
| Items | Ending balance | Beginning balance |
| VAT (value-added tax) | 27,917,630.10 | 1,412,358.17 |
| Corporate income tax | 21,680,830.21 | 435,351.06 |
| Individual income tax | 14,174,806.66 | 13,324,912.30 |
| City maintenance and construction tax | 366,380.84 | 145,831.34 |
| Education surcharge | 258,942.89 | 103,910.96 |
| Property tax | 4,172,400.43 | 751,908.84 |
| Other taxes | 306,885.40 | 80,269.78 |
| Total | 68,877,876.53 | 16,254,542.45 |
Other description:
None
41. Other payables
Unit: yuan
| Items | Ending balance | Beginning balance |
| Other account payable | 303,153,820.38 | 318,632,275.66 |
| Total | 303,153,820.38 | 318,632,275.66 |
(1) Interest payable
□ Applicable ? Not applicable
Other description:
None
(2) Dividends payable
□ Applicable ? Not applicable
Other description, including significant dividends payable that have not been paid for more than 1 year. Thereasons for the non-payment shall be disclosed:
None
(3) Other payables
1) Other payables listed by fund nature
Unit: yuan
| Items | Ending balance | Beginning balance |
| Payment for equipment | 22,074,524.03 | 28,870,825.20 |
| Payment for tooling | 926,093.48 | 965,441.44 |
| Transportation expenses | 7,307,668.56 | 10,878,639.69 |
| Rent and utilities | 10,666,137.87 | 4,127,402.12 |
| Margin, deposit | 8,875,643.23 | 5,830,893.34 |
| Wages for labor dispatching | 351,322.03 | 3,595,257.44 |
| Consultation fee | 201,310.38 | 1,283,728.33 |
| Fuel card fee | 0.00 | 2,977,890.66 |
| Payment of decoration | 117,152.63 | 3,254,149.87 |
| restricted stock repurchase obligations | 241,082,253.60 | 242,525,433.60 |
| Other | 11,551,714.57 | 14,322,613.97 |
| Total | 303,153,820.38 | 318,632,275.66 |
2) Other significant payables aged over 1 year
□ Applicable ? Not applicable
Other description:
None
42. Liabilities held for sale
□ Applicable ? Not applicable
Other description:
None
43. Non-current liabilities due within one year
Unit: yuan
| Items | Ending balance | Beginning balance |
| Long-term borrowings due within one year | 36,784,000.00 | 27,209,500.00 |
| Lease liabilities due within one year | 20,589,923.45 | 20,512,195.74 |
| Total | 57,373,923.45 | 47,721,695.74 |
Other description:
None
44. Other current liabilities
Unit: yuan
| Items | Ending balance | Beginning balance |
| Output tax to be written off | 5,467,273.22 | 2,874,899.86 |
| Notes receivable that have been endorsed but not derecognized | 46,426,155.84 | 104,189,643.96 |
| Total | 51,893,429.06 | 107,064,543.82 |
Changes in increase or decrease for the short-term bonds payable:
□ Applicable ? Not applicable
Other description:
None
45. Long-term loans
(1) Classification of long-term loan
Unit: yuan
| Items | Ending balance | Beginning balance |
| Mortgage loan | 133,511,381.65 | 156,520,000.00 |
| Credit loan | 317,000,000.00 | 318,500,000.00 |
| Total | 450,511,381.65 | 475,020,000.00 |
Description of long-term loan classification:
NoneAdditional notes, including interest rate ranges:
None
46. Bonds payable
(1) Bonds payable
□ Applicable ? Not applicable
(2) Changes in increase or decrease for the bonds payable (excluding the preferred share classified asfinancial liability, perpetual liability and other financial instrument)
□ Applicable ? Not applicable
(3) Description of conversion conditions and time of convertible corporate bond
□ Applicable ? Not applicable
(4) Description of other financial instruments classified as financial liabilities
□ Applicable ? Not applicable
Other description:
None
47. Lease liabilities
Unit: yuan
| Items | Ending balance | Beginning balance |
| Rent leasing | 38,645,239.64 | 40,290,402.14 |
| Total | 38,645,239.64 | 40,290,402.14 |
Other description:
None
48. Long-term payables
□ Applicable ? Not applicable
Other description:
None
(2) Special payable
□ Applicable ? Not applicable
Other description:
None
49. Long-term employee compensation payable
(1) Long-term payroll payable table
□ Applicable ? Not applicable
(2) Changes in the defined benefit plan
□ Applicable ? Not applicable
Other description:
None
50. Estimated liabilities
□ Applicable ? Not applicable
Additional descriptions, including relevant important assumptions and estimation explanations of importantestimated liabilities:
None
51. Deferred income
Unit: yuan
| Items | Beginning balance | Increase in the current period | Decrement in the current period | Ending balance | Reasons of formation |
| Government subsidies | 14,385,200.00 | 5,744,000.00 | 4,747,900.00 | 15,381,300.00 | Government subsidies related to assets |
| Total | 14,385,200.00 | 5,744,000.00 | 4,747,900.00 | 15,381,300.00 |
Items involving government subsidies:
| Liabilities items | Beginning balance | Newly increased subsidy in the current period | Amount accounted into non-operating revenue in the current period | Amount included in other income in the current period | Amount of write-down costs in the current period | Other changes | Ending balance | Asset-related/revenue-related |
| Special fund for the industrialization of high-efficiency energy-saving rare-earth permanent magnet motor | 1,105,000.00 | 97,500.00 | 1,007,500.00 | Asset-related | ||||
| R&D equipment project of intelligent home management system such as IoT cloud computing technology | 131,500.00 | 131,500.00 | Asset-related |
| R&D project of key technology for clean energy DC system measurement | 175,000.00 | 25,000.00 | 150,000.00 | Asset-related | ||||
| Nano lithium iron phosphate power battery project | 500,000.00 | 125,000.00 | 375,000.00 | Asset-related | ||||
| Key technology R&D of 18650-2.8A.h high power battery | 357,000.00 | 102,000.00 | 255,000.00 | Asset-related | ||||
| Intelligent grid connected project of distributed photovoltaic power station | 60,000.00 | 30,000.00 | 30,000.00 | Asset-related | ||||
| R&D project of 60A solar charging controller with peak power tracking technology | 410,000.00 | 60,000.00 | 350,000.00 | Asset-related | ||||
| R&D project of unmanned robot cleaner | 2,550,000.00 | 300,000.00 | 2,250,000.00 | Asset-related | ||||
| Key technology R&D project of rare-earth permanent magnet brushless DC motor and controller with high speed ratio and variable frequency | 4,000,000.00 | 2,000,000.00 | 2,000,000.00 | Asset-related | ||||
| Monthly Acceptance Amortization of Huizhou Anti-epidemic National Debt Technical Transformation Project (2006) for 5 Years | 2,912,210.00 | 416,030.00 | 2,496,180.00 | Asset-related | ||||
| Monthly Acceptance Amortization of Technical Transformation Project of Intelligent Controller in Huizhou Province and Technical Transformation of Lithium Battery Automation Production Line in 2006 for 5 Years | 2,184,490.00 | 312,070.00 | 1,872,420.00 | Asset-related | ||||
| Monthly acceptance amortization of provincial-level enterprise technology transformation fund (2106) special for promoting high-quality economic development for 5 years in 2022 | 5,744,000.00 | 1,148,800.00 | 4,595,200.00 | Asset-related |
Other description:
None
52. Other non-current liabilities
□ Applicable ? Not applicable
Other description:
None
53. Share capital
Unit: yuan
| Beginning balance | Increase or decrease of change this time (+, -) | Ending balance | |||||
| Issuance of new shares | Stock dividend | Conversion of accumulation fund into shares | Other | Subtotal | |||
| Total number of shares | 1,256,978,072.00 | 14,049,300.00 | 14,049,300.00 | 1,271,027,372.00 | |||
Other description:
Note: The share capital increased by 14,049,300.00 yuan in the current period, including 14,049,300.00 yuan dueto the exercise of stock options.
54. Other equity instruments
(1) Basic situation on preferred shares, perpetual bonds and other financial instruments outstanding at theend of the periodNot applicable
(2) Table of changes in financial instruments such as preferred shares and perpetual bonds outstanding atthe end of the period
□ Applicable ? Not applicable
Other description:
None
55. Capital reserve
Unit: yuan
| Items | Beginning balance | Increase in the current period | Decrement in the current period | Ending balance |
| Capital premium (share premium) | 2,076,431,608.14 | 54,522,812.37 | 0.00 | 2,130,954,420.51 |
| Other capital reserves | 63,621,541.60 | 79,510,789.24 | 53,296,748.22 | 89,835,582.62 |
| Total | 2,140,053,149.74 | 134,033,601.61 | 53,296,748.22 | 2,220,790,003.13 |
Additional descriptions, including the changes in increase or decrease in the current period and the reasons forchanges:
None
56. Treasury shares
Unit: yuan
| Items | Beginning balance | Increase in the current period | Decrement in the current period | Ending balance |
| Repurchase of company shares in competitive trading | 242,525,433.60 | 39,344,623.76 | 281,870,057.36 | |
| Total | 242,525,433.60 | 39,344,623.76 | 281,870,057.36 |
Additional descriptions, including the changes in increase or decrease in the current period and the reasons forchanges:
Note: The increase of treasury shares in this period is due to the repurchased share of 39,344,623.76 yuan bymajor companies.
57. Other comprehensive income
Unit: yuan
| Items | Beginning balance | Amount incurred in the current period | Ending balance | |||||
| Amount of pre-income tax incurred in the current period | Minus: profits and losses included in other comprehensive income previously and transferred in the current period | Minus: retained earnings included in other comprehensive income previously and transferred in currently | Minus: income tax expenses | Attributable to parent company after tax | Attributable to minority shareholders after tax | |||
| II. Other comprehensive income that is reclassified into profits and losses | -91,831,496.88 | 18,153,909.87 | 18,153,909.87 | -73,677,587.01 | ||||
| Translation difference of foreign currency financial statements | -92,201,606.29 | 18,153,909.87 | 18,153,909.87 | -74,047,696.42 | ||||
| Other | 370,109.41 | 370,109.41 | ||||||
| Total amount of other comprehensive income | -91,831,496.88 | 18,153,909.87 | 18,153,909.87 | -73,677,587.01 | ||||
Other description, including the adjustment to the effective portion of the profits and losses of cash flow hedgingtransferred to the amount initially recognized for the hedged item:
None
58. Special reserve
□ Applicable ? Not applicable
Additional descriptions, including the changes in increase or decrease in the current period and the reasons forchanges:
None
59. Surplus reserve
Unit: yuan
| Items | Beginning balance | Increase in the current period | Decrement in the current period | Ending balance |
| Statutory surplus reserve | 186,397,631.76 | 186,397,631.76 | ||
| Total | 186,397,631.76 | 186,397,631.76 |
Explanation of the surplus reserve, including the changes in increase or decrease in the current period and thereasons for the change:
None
60. Retained earnings
Unit: yuan
| Items | Current period | Previous period |
| Retained earnings at the end of the previous period before adjustment | 1,779,243,483.61 | 1,324,944,369.91 |
| Total retained earnings at the beginning of the period (+ for increase, - for decrease) | -19,061,969.80 | |
| Retained earnings at the beginning of last period after adjustment | 1,779,243,483.61 | 1,305,882,400.11 |
| Plus: net profit attributable to owners of the parent company in the current period | 246,508,271.38 | 564,964,282.18 |
| Minus: withdraw legal surplus reserve | 35,037,674.23 | |
| Common stock dividends payable | 62,713,008.60 | 56,565,524.45 |
| Retained earnings at the end of the period | 1,963,038,746.39 | 1,779,243,483.61 |
Details of retained earnings at the beginning of adjustment period:
1) Due to the retroactive adjustment of Accounting Standards for Business Enterprises and related new regulations,the retained earnings at the beginning of the period was 0.00 yuan.
2) Due to the change of accounting policy, the retained earnings at the beginning of the period was 0.00 yuan.
3) Due to the correction of major accounting errors, the undistributed profit at the beginning of the period was 0.00yuan.
4) Due to the change in merger under the same control, the undistributed profit at the beginning of the period was
0.00 yuan.
5) The retained earnings at the beginning of the period was 0.00 yuan with other adjustments.
61. Operating income and operating costs
Unit: yuan
| Items | Amount incurred in the current period | Amount incurred in the previous period | ||
| Income | Cost | Income | Cost | |
| Main business | 4,212,996,240.53 | 3,420,959,502.11 | 3,613,778,665.34 | 2,751,947,592.34 |
| Other business | 15,006,897.04 | 474,527.50 | 30,266,947.06 | 13,348,149.05 |
| Total | 4,228,003,137.57 | 3,421,434,029.61 | 3,644,045,612.40 | 2,765,295,741.39 |
Income-related information:
Unit: yuan
| Contract classification | Division 1 | Division 2 | Intelligent Control Division | Total |
| Types of commodities | ||||
| Including: | ||||
| Tool | 1,606,784,503.47 | 1,606,784,503.47 | ||
| Home appliances | 1,515,196,016.05 | 1,515,196,016.05 | ||
| New energy | 858,103,466.53 | 858,103,466.53 | ||
| Industry | 135,322,059.03 | 135,322,059.03 | ||
| Intelligent solutions | 83,117,293.53 | 83,117,293.53 | ||
| Other | 29,479,798.96 | 29,479,798.96 | ||
| Classified by business area | ||||
| Including: | ||||
| Domestic | 1,568,861,062.41 | 1,568,861,062.41 | ||
| Foreign | 2,659,142,075.16 | 2,659,142,075.16 | ||
| Total | 4,228,003,137.57 | 4,228,003,137.57 |
Information related to performance obligations:
Not applicableInformation related to the transaction price allocated to the remaining performance obligations:
The amount of income corresponding to the performance obligations that have signed contracts but have not beenperformed or completed at the end of this reporting period is 0.00 yuan, and 0.00 yuan is expected to be recognizedwithin one year.Other description:
None
62. Taxes and surcharges
Unit: yuan
| Items | Amount incurred in the current period | Amount incurred in the previous period |
| City maintenance and construction tax | 6,262,071.28 | 4,966,766.89 |
| Education surcharge | 4,472,907.99 | 3,547,687.35 |
| Property tax | 4,579,610.57 | 3,185,254.25 |
| Land use tax | 601,530.92 | 267,163.92 |
| Stamp duty | 4,843,716.89 | 1,278,559.97 |
| Other | 300,307.02 | 32,811.86 |
| Total | 21,060,144.67 | 13,278,244.24 |
Other description:
None
63. Sales expenses
Unit: yuan
| Items | Amount incurred in the current period | Amount incurred in the previous period |
| Employee compensation | 71,092,467.40 | 41,877,611.55 |
| Transportation expenses | 2,151,858.07 | 1,403,606.36 |
| Business entertainment expenses | 7,717,742.44 | 8,822,018.86 |
| Travel expenses | 2,886,798.49 | 4,242,288.17 |
| Intermediary service expenses | 8,406,618.19 | 4,907,544.95 |
| Exhibition expenses | 1,355,664.97 | 1,032,138.04 |
| Material expenses | 5,099,828.02 | 5,050,324.90 |
| Mail expenses | 1,403,983.61 | 1,170,285.37 |
| Advertising expenses | 2,136,657.03 | 916,778.99 |
| Option fee | 13,224,050.94 | 320,885.87 |
| Other | 9,705,156.32 | 7,146,401.53 |
| Total | 125,180,825.48 | 76,889,884.59 |
Other description:
None
64. Administrative expenses
Unit: yuan
| Items | Amount incurred in the current period | Amount incurred in the previous period |
| Employee compensation | 90,896,179.65 | 59,721,623.90 |
| Decoration cost | 1,047,245.23 | 6,465,540.78 |
| Intermediary service expenses | 6,962,764.32 | 4,322,142.87 |
| Depreciation expense | 18,911,602.57 | 6,619,979.60 |
| Amortization of intangible assets | 2,125,131.65 | 2,677,290.87 |
| Rent and utilities | 7,121,821.96 | 3,404,885.34 |
| Property insurance expenses | 1,294,426.48 | 758,226.43 |
| Office expenses | 1,068,314.24 | 1,246,496.01 |
| Option fee | 16,890,907.13 | 571,018.75 |
| Travel expenses | 1,814,741.13 | 802,360.66 |
| Recruitment expenses | 545,122.70 | 906,502.78 |
| Other | 12,215,769.40 | 7,346,751.70 |
| Total | 160,894,026.46 | 94,842,819.69 |
Other description:
None
65. R&D expenses
Unit: yuan
| Items | Amount incurred in the current period | Amount incurred in the previous period |
| Employee compensation | 163,347,312.36 | 107,357,106.03 |
| Amortization of intangible assets | 37,824,208.93 | 27,849,377.95 |
| Material expenses | 17,546,287.12 | 11,634,261.27 |
| Depreciation expense | 6,180,237.11 | 4,465,093.77 |
| Option fee | 32,417,628.32 | 1,590,663.41 |
| Tooling expenses | 5,454,370.25 | 6,365,344.99 |
| Travel expenses | 1,369,302.27 | 1,805,639.42 |
| Intermediary service expenses | 5,514,466.09 | 1,867,115.15 |
| Utilities | 3,153,073.64 | 1,636,703.79 |
| Rentals | 2,011,756.62 | 922,869.58 |
| Other | 10,028,565.21 | 9,273,550.95 |
| Total | 284,847,207.92 | 174,767,726.31 |
Other description:
None
66. Financial expenses
Unit: yuan
| Items | Amount incurred in the current period | Amount incurred in the previous period |
| Interest expense | 14,644,344.03 | 6,676,232.42 |
| Minus: interest income | 6,486,250.66 | 4,397,537.66 |
| Profit or loss on exchange | -75,077,691.81 | 23,768,783.43 |
| Other | 3,303,222.82 | 27,713,678.97 |
| Total | -63,616,375.63 | 53,761,157.16 |
Other description:
None
67. Other revenues
Unit: yuan
| Source for other revenues | Amount incurred in the current period | Amount incurred in the previous period |
| Government subsidies | 14,488,480.96 | 16,456,682.22 |
| Value added tax refund on demand | 1,793,694.48 | 8,646,329.13 |
| Return of individual income tax service charge | 646,161.64 | 1,105,035.34 |
| Other | 144,530.54 | 0.00 |
68. Investment revenue
Unit: yuan
| Items | Amount incurred in the current period | Amount incurred in the previous period |
| Long-term equity investment revenue accounted by equity method | -1,489,563.00 | -1,390,590.78 |
| Investment revenue from disposal of tradable financial assets | 24,066,351.32 | |
| Investment revenue of financial products | 241,902.47 | 1,200,855.83 |
| Total | -1,247,660.53 | 23,876,616.37 |
Other description:
None
69. Net exposure hedging revenue
None
70. Fair value change revenue
Unit: yuan
| Sources of income from change in fair value | Amount incurred in the current period | Amount incurred in the previous period |
| Tradable financial assets | 31,603,205.99 | 98,312,768.52 |
| Total | 31,603,205.99 | 98,312,768.52 |
Other descriptions: None
71. Credit impairment loss
Unit: yuan
| Items | Amount incurred in the current period | Amount incurred in the previous period |
| Bad debt loss of other receivables | -229,235.75 | -1,036,235.40 |
| Bad debt loss of accounts receivable | -6,705,780.21 | -14,198,551.72 |
| Bad debt loss of commercial acceptance bill | 121,687.18 | -148,671.09 |
| Bad debt loss of receivables financing | -4,094,005.92 | 219,638.25 |
| Total | -10,907,334.70 | -15,163,819.96 |
Other descriptions: None
72. Asset impairment loss
Unit: yuan
| Items | Amount incurred in the | Amount incurred in the |
| current period | previous period | |
| II. Loss on inventory valuation and contract performance cost impairment loss | -46,406,707.31 | -99,292,387.41 |
| Total | -46,406,707.31 | -99,292,387.41 |
Other description:
None
73. Assets disposal revenue
Unit: yuan
| Source of assets disposal revenue | Amount incurred in the current period | Amount incurred in the previous period |
| Revenue from disposal of non-current assets | -284,674.88 | -317,178.75 |
| Total | -284,674.88 | -317,178.75 |
74. Non-operating income
Unit: yuan
| Items | Amount incurred in the current period | Amount incurred in the previous period | Amount included in the current non-recurring profits and losses |
| Revenue from disposal of non-current assets | 259,566.02 | 49,698.80 | 259,566.02 |
| Other | 894,448.64 | 1,531,383.00 | 894,448.64 |
| Total | 1,154,014.66 | 1,581,081.80 | 1,154,014.66 |
Government subsidy included in the current profits and losses: None
Unit: yuan
| Subsidy project | Grant entity | Grant reasons | Nature type | Whether the subsidy affects the profits and losses of the year | Whether it is the special subsidy | Amount incurred in the current period | Amount incurred in the previous period | Asset-related/revenue-related |
| Software rebate | 1,793,694.48 | 4,443,028.35 | Related to revenue | |||||
| Return of individual income tax service charge | 646,161.64 | 1,083,707.40 | Related to revenue | |||||
| Subsidies on R & D | 540,200.00 | 1,465,000.00 | Related to revenue | |||||
| Technological transformation supported by 2020 anti-epidemic national debt funds | 416,030.00 | 208,015.00 | Asset-related | |||||
| R&D project of unmanned robot cleaner | 300,000.00 | 150,000.00 | Asset-related | |||||
| Assisting funds for R&D equipment of intelligent home management system based on IoT cloud computing technology | 131,500.00 | 131,500.00 | Asset-related | |||||
| Nano lithium iron phosphate power | 125,000.00 | 125,000.00 | Asset-related |
| battery project | ||||||||
| Financial support fund of Xinqiao Town of Songjiang District of Shanghai | 110,000.00 | Related to revenue | ||||||
| High rate 18650-2.8Ah power battery key technology R&D project | 102,000.00 | 102,000.00 | Asset-related | |||||
| Subsidy on talent quality improvement project | 100,000.00 | Related to revenue | ||||||
| Industrialization of high efficiency energy saving motor for permanent magnet with rare earth | 97,500.00 | 97,500.00 | Asset-related | |||||
| Subsidy on R&D project of 60A solar charging controller with peak power tracking technology | 60,000.00 | 60,000.00 | Asset-related | |||||
| Exemption subsidies on urban land use tax due to the pandemic | 43,592.50 | Related to revenue | ||||||
| Intelligent grid connected project of distributed photovoltaic power station | 30,000.00 | 30,000.00 | Asset-related | |||||
| Subsidies on clean energy projects | 25,000.00 | 25,000.00 | Asset-related | |||||
| Position stabilization subsidy | 723,938.84 | 24,413.33 | Related to revenue | |||||
| Industrial enterprise bonus | 2,914,312.72 | 20,000.00 | Related to revenue | |||||
| Provincial-level enterprise technology transformation fund for promoting high-quality economic development | 1,148,800.00 | Asset-related | ||||||
| Key technology R&D project of rare-earth permanent magnet brushless DC motor and controller with high speed ratio and variable frequency | 2,000,000.00 | Asset-related | ||||||
| Special fund for intelligent controller and lithium battery technology transformation | 312,070.00 | Asset-related | ||||||
| Cultivation fund for high-tech enterprises | 1,650,000.00 | Related to revenue | ||||||
| Subsidy on export insurance premium from the Commerce Bureau | 1,359,525.00 | Related to revenue |
Shenzhen Science and TechnologyInnovation Commission: technicalbreakthrough projects in 2022submitted to the Major Special ProjectsOffice
| 500,000.00 | Related to revenue | |||||||
| Subsidy on retention training from the Human Resources and Social Security Bureau of Shenzhen | 1,963,000.00 | Related to revenue | ||||||
| Other | 234,134.94 | Related to revenue | ||||||
| Subsidy on high-quality growth of foreign trade and support program by the Commerce Bureau | 1,453,557.00 | Related to revenue | ||||||
| Technology transformation project for intelligent controller and automatic production line of lithium battery | 832,155.00 | Related to revenue | ||||||
| Industrial and commercial electricity subsidy | 459,804.80 | Related to revenue | ||||||
| Provincial economic promotion | 300,000.00 | Related to |
| subsidy in 2021 | revenue | |||||||
| Training replaced for operation subsidy | 288,500.00 | Related to revenue | ||||||
| Patent application subsidy | 157,650.00 | Related to revenue | ||||||
| Policy measure bonus | 70,000.00 | Related to revenue | ||||||
| Exhibition subsidy | 68,400.00 | Related to revenue | ||||||
| Employment filing subsidy | 65,000.00 | Related to revenue | ||||||
| Business development subsidy | 60,258.00 | Related to revenue | ||||||
| Subsidy on Ningbo demonstration projects | 20,000.00 | Related to revenue | ||||||
| Subsidy on Hubei employees newly recruited by small, medium and micro enterprises | 7,000.00 | Related to revenue | ||||||
| Subsidy on software copyright registration | 5,100.00 | Related to revenue | ||||||
| Total | 17,072,867.62 | 12,006,181.38 |
Other description:
None
75. Non-operating expenses
Unit: yuan
| Items | Amount incurred in the current period | Amount incurred in the previous period | Amount included in the current non-recurring profits and losses |
| External donations | 50,000.00 | ||
| Loss on damage and scrapping of non-current assets | 353,000.78 | 148,616.46 | |
| Customer quality deduction expenses | 2,556,764.63 | 3,039,355.65 | |
| Other | 208,629.48 | 1,248,193.58 | |
| Total | 3,118,394.89 | 4,486,165.70 |
Other description:
None
76. Income tax expenses
(1) Table of income tax expenses
Unit: yuan
| Items | Amount incurred in the current period | Amount incurred in the previous period |
| Current income tax expenses | 29,479,656.28 | 24,865,568.64 |
| Deferred tax expense | -11,672,335.07 | 20,774,273.52 |
| Total | 17,807,321.21 | 45,639,842.16 |
(2) Adjustment process of accounting profits and income tax expenses
Unit: yuan
| Items | Amount incurred in the current period |
| Total profits | 266,068,595.01 |
| Income tax expenses calculated at statutory/applicable tax rates | 39,910,289.25 |
| Impact of different tax rates applied to subsidiaries | 558,510.07 |
| Effect of income tax adjustment in previous period | -3,954,736.33 |
| Impact of non-taxable income | 41,163.30 |
| Impact of non-deductible cost, expense and loss | 4,346,251.90 |
| Impact of deductible loss of unrecognized deferred tax assets in previous period | -15,534.79 |
| Impact of deductible temporary differences or deductible losses of unrecognized deferred tax assets in the current period | 2,029,693.10 |
| Impact of additional deductible expenses | -17,669,497.61 |
| Other | -7,438,817.68 |
| Income tax expenses | 17,807,321.21 |
Other description:
None
77. Other comprehensive income
See Note 57. Other comprehensive income for details.
78. Items of cash flow statement
(1) Other cash received related to operating activities
Unit: yuan
| Items | Amount incurred in the current period | Amount incurred in the previous period |
| Interest income | 11,355,372.53 | 4,397,537.66 |
| Government subsidies | 18,797,067.62 | 8,671,130.63 |
| Deposit and margin collection | 8,088,135.22 | 1,058,934.03 |
| Exercise-related individual income tax collected on an agency basis | 6,379,602.34 | 11,047,469.30 |
| Personal borrowings and expenditures | 928,408.04 | 779,256.00 |
| litigation enforcement expenses | 827,707.00 | |
| Other | 340,044.04 | 4,264,267.78 |
| Total | 45,888,629.79 | 31,046,302.40 |
Description of other cash received related to operating activities:
None
(2) Other cash paid related to operating activities
Unit: yuan
| Items | Amount incurred in the current period | Amount incurred in the previous period |
| Service charge | 1,326,317.40 | 1,542,403.90 |
| Management expense paid in cash | 32,070,205.47 | 25,252,906.57 |
| R&D expenses paid in cash | 39,623,450.95 | 33,505,485.16 |
| Sales expense paid in cash | 40,864,307.14 | 34,691,387.17 |
| Margin and deposit expenses | 5,326,178.34 | 3,479,392.66 |
| Employee borrowings | 3,808,623.88 | 3,763,609.50 |
| Other | 6,208,734.33 | 10,776,663.69 |
| Total | 129,227,817.51 | 113,011,848.65 |
Description of other cash paid related to operating activities:
None
(3) Other cash received related to investment activities
□ Applicable ? Not applicable
Description of other cash received related to investment activities:
None
(4) Other cash paid related to investment activities
□ Applicable ? Not applicable
Description of other cash paid related to investment activities:
None
(5) Other cash received related to financing activities
Unit: yuan
| Items | Amount incurred in the current period | Amount incurred in the previous period |
| Note margin | 25,597,956.24 | 18,039,024.44 |
| Total | 25,597,956.24 | 18,039,024.44 |
Description of other cash received related to financing activities:
None
(6) Other cash paid related to financing activities
Unit: yuan
| Items | Amount incurred in the current period | Amount incurred in the previous period |
| Note margin | 14,697,411.67 | 1,561,294.47 |
| Share repurchase | 40,787,803.76 | |
| Payment of lease liabilities | 9,944,478.12 | 6,693,452.50 |
| Intermediary fees for non-public offerings | 805,312.81 | |
| Total | 65,429,693.55 | 9,060,059.78 |
Description of other cash paid related to financing activities:
None
79. Supplementary information of cash flow statement
(1) Supplementary materials of cash flow statement
Unit: yuan
| Supplementary information | Amount in the current period | Amount in the previous period |
| 1. Adjusting net profit to cash flow from operating activities: | ||
| Net profit | 248,261,273.80 | 436,087,293.11 |
| Plus: impairment of assets | 57,314,042.01 | 114,456,207.37 |
| Depreciation of fixed assets, depletion of oil and gas assets, depreciation of productive biological assets | 67,167,180.29 | 49,924,287.12 |
| Depreciation of right-of-use assets | 11,559,119.61 | 6,241,851.65 |
| Amortization of intangible assets | 40,518,698.61 | 31,069,633.99 |
| Amortization of long-term deferred expenses | 18,332,182.03 | 11,996,203.14 |
| Loss from disposal of fixed assets, intangible assets and other long-term assets (income marked with "-") | 284,674.88 | -317,178.75 |
| Losses on scrapping of fixed assets (income marked with "-") | 353,000.78 | 259,335.13 |
| Loss from fair value change (income marked with "-") | -31,603,205.99 | -98,312,768.52 |
| Financial expenses (income marked with "-") | 18,329,844.69 | 33,018,572.00 |
| Investment loss (income marked with "-") | 1,247,660.53 | -23,876,616.37 |
| Decrease in deferred tax assets (increase marked with "-") | 9,389,900.19 | -21,833,194.16 |
| Increase in deferred tax liabilities (decrease marked with "-") | 2,783,979.32 | 14,700,279.13 |
| Decrease in inventory (increase marked with "-") | -11,859,608.55 | -794,887,074.14 |
| Decrease in operating receivables (increase marked with "-") | -278,292,463.29 | -470,369,225.23 |
| Increase in operating payables (decrease marked with "-") | -82,499,123.52 | 484,777,126.41 |
| Other | 3,599,100.00 | 1,359,530.00 |
| Net cash flow from operating activities | 74,886,255.39 | -225,705,738.12 |
| 2. Major investment and financing activities not involving cash receipts and payments: | ||
| Conversion of debt into capital | ||
| Convertible bonds due within one year | ||
| Fixed assets acquired under finance leases | ||
| 3. Net change in cash and cash equivalents: | ||
| Ending balance of cash | 1,573,782,719.24 | 1,284,383,758.87 |
| Minus: beginning balance of cash | 1,736,104,958.20 | 1,196,835,834.93 |
| Plus: ending balance of cash equivalents |
| Minus: beginning balance of cash equivalents | ||
| Net increase in cash and cash equivalents | -162,322,238.96 | 87,547,923.94 |
(2) Net cash paid for the acquisition of subsidiaries in the current period
□ Applicable ? Not applicable
Other descriptions: None
(3) Net cash received for disposal of subsidiaries in the current period
□ Applicable ? Not applicable
Other descriptions: None
(4) Composition of cash and cash equivalents
Unit: yuan
| Items | Ending balance | Beginning balance |
| I. Cash | 1,573,782,719.24 | 1,736,104,958.20 |
| Including: cash in stock | 966,707.91 | 1,015,081.13 |
| Bank deposit available for payment at any time | 1,391,833,225.22 | 1,337,414,181.07 |
| Other monetary capital for payment at any time | 180,982,786.11 | 397,675,696.00 |
| III. Balance of cash and cash equivalents at the end of the period | 1,573,782,719.24 | 1,736,104,958.20 |
Other description:
None
80. Notes to items in change statement of owner's equity
Describe the names and adjusted amounts of "other" items that adjusted the closing balance of the previous year:
None
81. Assets with limited ownership or use right
Unit: yuan
| Items | Book value at the end of the period | Restricted reasons |
| Monetary capital | 18,372,985.21 | Margin, etc. |
| Fixed assets | 250,442,431.76 | Mortgage housing loan |
| Total | 268,815,416.97 |
Other description:
None
82. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: yuan
| Items | Foreign currency balance at the end of the period | Exchange rate for conversion | Balance converted into RMB at the end of the period |
| Monetary capital | |||
| Including: US dollars | 67,927,475.60 | 6.7114 | 455,888,459.74 |
| Euros | 1,581,436.39 | 7.0084 | 11,083,338.80 |
| Hong Kong dollars | 1,825,039.76 | 0.8552 | 1,560,774.00 |
| Indian rupee | 1,036,186,080.97 | 0.0850 | 88,075,816.88 |
| Vietnamese dong | 3,933,217,964.00 | 0.0003 | 1,179,965.39 |
| Japanese Yen | 33,290,117.00 | 0.0491 | 1,634,544.74 |
| Romanian Leu | 2,265,454.06 | 1.4171 | 3,210,374.95 |
| Mexican Peso | 2,707,959.79 | 0.3332 | 902,292.20 |
| Accounts receivable | |||
| Including: US dollars | 169,377,746.94 | 6.7114 | 1,136,761,810.81 |
| Euros | 185,968.75 | 7.0084 | 1,303,343.39 |
| Hong Kong dollars | 7,091,041.17 | 0.8552 | 6,064,258.41 |
| Indian rupee | 941,962,803.65 | 0.0850 | 80,066,838.31 |
| Vietnamese dong | 109,191,626,672.00 | 0.0003 | 32,757,488.00 |
| Japanese Yen | 44,099,511.00 | 0.0491 | 2,165,285.99 |
| Receivables financing | |||
| Including: US dollars | 21,228,897.14 | 6.7114 | 142,475,620.27 |
| Accounts payable | |||
| Including: US dollars | 6,768,711.66 | 6.7114 | 45,427,531.43 |
| Hong Kong dollars | 35,810.06 | 0.8552 | 30,624.41 |
| Indian rupee | 67,574,394.79 | 0.0850 | 5,743,823.56 |
| Vietnamese dong | 8,700,598,543.00 | 0.0003 | 2,610,179.56 |
| Japanese Yen | 66,891,340.00 | 0.0491 | 3,284,364.79 |
Other description:
None
(2) Description of overseas business entities, including for important overseas business entities, disclosure ofmain overseas business locations, recording currency and selection basis as well as disclosure of reasons forchanges in recording currency.? Applicable □ Not applicable
1. Topband India Private Limited, a subsidiary of the Company, is mainly located in Pune City, Maharashtra, India,with Indian rupee as the recording currency;
2. Topband (Vietnam) Co., Ltd, a sub-subsidiary of the Company, is mainly located in Binh Duong, Vietnam, withVietnamese dong as the recording currency;
3. TOPBAND SMART DONGNAI (VIETNAM) Co., ltd, a sub-subsidiary of the Company, is mainly located inDong Nai, Vietnam, with Vietnamese dong as the recording currency;
4. Topband Germany GmbH, a sub-subsidiary of the Company, is mainly located in Unterf?hring, Germany, withEuros as the recording currency;
5. TOPBAND JAPAN Co., Ltd., a sub-subsidiary of the Company, is mainly located in Nagoya, Japan, withJapanese Yen as the recording currency;
6. Q.B.PTE.LTD, the grandson company of Topband, is located in Singapore, with Singapore dollars as thebookkeeping base currency;
7. TOPBAND SMART EUROPE COMPANY LIMITED S.R.L., the grandson company of Topband, is located inTimisoara, Romania, with Leu asthe bookkeeping base currency;
8. TOPBAND MEXICO, S.DER.L.DEC.V, the grandson company of Topband, is located in Monterrey, Mexico,with peso as the bookkeeping base currency.
83. Hedging
The qualitative and quantitative information on hedging items, related hedging instruments, and hedged risks isdisclosed according to the type of hedging:
None
84. Government subsidies
(1) Basic situation of government subsidies
Unit: yuan
| Category | Amount | Items presented | Amount included in the current profits and losses |
| Special fund for the industrialization of high-efficiency energy-saving rare-earth permanent magnet motor | 97,500.00 | Deferred income | 97,500.00 |
| R&D equipment project of intelligent home management system such as IoT cloud computing technology | 131,500.00 | Deferred income | 131,500.00 |
| R&D project of key technology for clean energy DC system measurement | 25,000.00 | Deferred income | 25,000.00 |
| Nano lithium iron phosphate power battery project | 125,000.00 | Deferred income | 125,000.00 |
| Key technology R&D of 18650-2.8A.h high power battery | 102,000.00 | Deferred income | 102,000.00 |
| Intelligent grid connected project of distributed photovoltaic power station | 30,000.00 | Deferred income | 30,000.00 |
| R&D project of 60A solar charging controller with peak power tracking technology | 60,000.00 | Deferred income | 60,000.00 |
| R&D project of unmanned robot cleaner | 300,000.00 | Deferred income | 300,000.00 |
| Key technology R&D project of rare-earth permanent magnet brushless DC motor and controller with high speed ratio and variable frequency | 2,000,000.00 | Deferred income | 2,000,000.00 |
| Monthly Acceptance Amortization of Huizhou Anti-epidemic National Debt Technical Transformation Project (2006) for 5 Years | 416,030.00 | Deferred income | 416,030.00 |
| Monthly Acceptance Amortization of Technical Transformation Project of Intelligent Controller in Huizhou Province and Technical Transformation of Lithium Battery Automation Production Line in 2006 for 5 Years | 312,070.00 | Deferred income | 312,070.00 |
| Monthly acceptance amortization of provincial-level enterprise technology transformation fund (2106) special for promoting high-quality economic development for 5 years in 2022 | 1,148,800.00 | Deferred income | 1,148,800.00 |
| Received from Shenzhen Science and Technology Innovation Commission: the first batch of funds for the cultivation of high-tech enterprises in 2022 | 1,000,000.00 | Other income | 1,000,000.00 |
| Received from the Industry and Information Technology Bureau of Shenzhen Municipality: Chen Weibo applied for the single champion award program and funding plan in manufacturing industry in 2022 | 2,000,000.00 | Other income | 2,000,000.00 |
| Received from Shenzhen Administration for Industry and Commerce: Foreign Trade Office - Export credit insurance premium subsidy program from July to December 2022 | 951,719.00 | Other income | 951,719.00 |
| Received from Shenzhen Science and Technology Innovation Commission: Major Special Projects Office - technical breakthrough projects in 2022 ("2022014 important 3D objects based on SLAM") | 500,000.00 | Other income | 500,000.00 |
| Received from the Human Resources Bureau of Shenzhen Nanshan District: One-time social security subsidy and support program for affected enterprises in sealed and controlled areas | 5,100.00 | Other income | 5,100.00 |
| Received from Shenzhen Patent Office of China National Intellectual Property Administration: the second reimbursement (64-252) of Shenzhen trademark registration funding in 2021 | 1,000.00 | Other income | 1,000.00 |
| Received from the Science and Technology Innovation Bureau of Shenzhen Nanshan District: Enterprise R&D investment subsidy and support plan | 240,200.00 | Other income | 240,200.00 |
| Received from Shenzhen Science and Technology Innovation Commission: the subsidy for the cultivation of high-tech enterprises in 2022 | 200,000.00 | Other income | 200,000.00 |
| Received from Shenzhen Science and Technology Innovation Commission: the first batch of assisting funds for the cultivation of high-tech enterprises in 2022 | 200,000.00 | Other income | 200,000.00 |
| Received from the Commerce Bureau of Shenzhen Municipality: Foreign Trade Office - Export credit insurance premium subsidy program from July to December 2020 | 407,806.00 | Other income | 407,806.00 |
| Received from the Industry and Information Technology Bureau of Bao'an District: the incentive funds for steady growth of industry and enterprises (the second batch) in 2021 | 268,512.72 | Other income | 268,512.72 |
| Received from the Science and Technology Bureau: 20220613 high quality award and subsidy in 2021 | 40,710.00 | Other income | 40,710.00 |
| Received from the Huizhou Zhongkai Science and Technology Innovation Bureau: the first batch of rewards and subsidies to certificated high-tech enterprises in 2021 | 50,000.00 | Other income | 50,000.00 |
| Received from the Zhongkai Economic Development Bureau: special funds for industry and informatization in 2022/funds for the introduction and cultivation of new-generation electronic information manufacturing enterprises in Huizhou | 645,800.00 | Other income | 645,800.00 |
| Received from the Municipal Science and Technology Innovation Commission: the first batch of the third subsidies for the enterprise R&D in 2021 | 100,000.00 | Other income | 100,000.00 |
| Received from Shenzhen Science and Technology Innovation Commission: the subsidy for the R&D expenses of high-tech enterprises in 2021 | 200,000.00 | Other income | 200,000.00 |
| Received from the Xili Sub-district Office, Nanshan District, Shenzhen: the government subsidies for social security in colleges in 2022 | 32,453.11 | Other income | 32,453.11 |
| Received from the Xili Sub-district Office, Nanshan District, Shenzhen: the subsidy to help and support small and micro enterprises (JD) | 5,000.00 | Other income | 5,000.00 |
| Received from the Science and Technology Innovation Bureau of Shenzhen Nanshan District: the double subsidy for national high-tech enterprises in 2022 | 100,000.00 | Other income | 100,000.00 |
| Received the subsidy for the cultivation of high-tech enterprises in 2022 | 100,000.00 | Other income | 100,000.00 |
| Financial subsidies for Hangzhou Zhidong Motor Technology Co., Ltd. | 8,831.09 | Other income | 8,831.09 |
| Received from Shenzhen Social Security Fund Management Bureau: social insurance premium refunded to Shenzhen Topband Supply Chain Services Co., Ltd. | 1,500.00 | Other income | 1,500.00 |
| Received from Shenzhen Social Security Fund Management Bureau: the social security subsidies | 3,475.20 | Other income | 3,475.20 |
| Subsidy on retention training from the Human Resources and Social Security Bureau of Shenzhen | 1,963,000.00 | Other income | 1,963,000.00 |
| Position stabilization subsidy | 723,938.84 | Other income | 723,938.84 |
(2) Situation of government subsidies refund
? Applicable □ Not applicable
Unit: yuan
| Items | Amount | Reason |
| The overpayment by the special subsidy funds for the central foreign trade and economic development was refunded (treasury deposit of Shenzhen Finance Bureau) in 2020 | 8,465.00 | Return of overpayment |
Other description:
None
85. Others
NoneVIII. Changes in the scope of consolidation
1. Merger of enterprises under different control
(1) Merger of enterprise under different control occurred in the current period
□ Applicable ? Not applicable
Other descriptions: None
(2) Combined cost and business reputation
□ Applicable ? Not applicable
Other descriptions: None
(3) Identifiable assets and liabilities of the acquiree on the acquisition date
□ Applicable ? Not applicable
Other descriptions: None
(4) Gains or losses arising from re-measurement of equity held before the acquisition date at fair valueWas there a transaction that realized business combination step by step through multiple transactions and obtainedcontrol during the reporting period
□ Yes ? No
(5) Relevant explanations for the inability to reasonably determine the merger consideration or the fair value of the identifiableassets and liabilities of the acquiree on the acquisition date or at the end of the current period
□ Applicable ? Not applicable
(6) Other descriptions
□ Applicable ? Not applicable
2. Merger of enterprises under the same control
(1) Business combination under common control in the current period
□ Applicable ? Not applicable
Other descriptions: None
(2) Combined cost
□ Applicable ? Not applicable
Other descriptions: None
(3) The book value of the assets and liabilities of the merged party on the combining date
□ Applicable ? Not applicable
Other descriptions: None
3. Reverse purchase
Basic information of the transaction, the basis for the reverse purchase of the transaction, whether the assets andliabilities retained by the listed company constitute the business and its basis, the determination of the merger cost,the amount of the adjustment of the equity when the transaction is processed as an equity transaction and itscalculation:
None
4. Disposal of subsidiaries
Is there single disposal of the investment in a subsidiary which results in loss of control
□ Yes ? No
Whether there are step-by-step disposal of the investment in a subsidiary through multiple transactions and loss ofcontrol in the current period
□ Yes ? No
5. Changes in the scope of merger due to other reasons
Explanations for the changes in the scope of the merger caused by other reasons (e.g., establishment of newsubsidiaries, or liquidation of subsidiaries, etc.) and relevant circumstances:
None
6. Others
NoneIX. Interests in Other Entities
1. Equity in subsidiaries
(1) Composition of enterprise group
| Name of subsidiary | Principal place of business | Registered place | Nature of business | Shareholding proportion | Acquisition method | |
| Direct | Indirect | |||||
| Shenzhen Topband Software Technology Co., Ltd. | Shenzhen | Shenzhen | Production and sales | 100.00% | Establishment | |
| Shenzhen Topband Automation Technology Co., Ltd. | Shenzhen | Shenzhen | Production and sales | 100.00% | Establishment | |
| Shenzhen Topband Battery Co., Ltd. | Shenzhen | Shenzhen | Production and sales | 100.00% | Establishment | |
| Chongqing Topband Industrial Co., Ltd. | Chongqing | Chongqing | Production and sales | 100.00% | Establishment | |
| Topband (Hong Kong) Co., Ltd. | Hong Kong | Hong Kong | Investment | 100.00% | Establishment | |
| Huizhou Topband Electrical Technology Co., Ltd. | Huizhou | Huizhou | Production and sales | 100.00% | Establishment | |
| TOPBAND INDIA PRIVATE LIMITED | India | India | Production and sales | 100.00% | Establishment | |
| Shenzhen YAKO Automation Technology Co., Ltd. | Shenzhen | Shenzhen | Production and sales | 71.54% | Merger of enterprises under different control | |
| Shenzhen Allied Control System Co., Ltd. | Shenzhen | Shenzhen | Production and sales | 100.00% | Merger of enterprises under different control | |
| Huizhou Topband Battery Co., Ltd. | Huizhou | Huizhou | Production and sales | 100.00% | Establishment | |
| Ningbo Topband Intelligent Control Co., Ltd. | Ningbo | Ningbo | Production and sales | 100.00% | Establishment | |
| Shenzhen Meanstone Intelligent Technology Co., Ltd. | Shenzhen | Shenzhen | Production and sales | 77.25% | Merger of enterprises under different control | |
| Shenzhen Yansheng Software Co., Ltd. | Shenzhen | Shenzhen | Production and sales | 71.54% | Merger of enterprises under different control | |
| Hangzhou Zhidong Motor Technology Co., Ltd. | Hangzhou | Hangzhou | Production and sales | 53.66% | Merger of enterprises under different control | |
| Topband（Vietnam)Co.,ltd | Vietnam | Vietnam | Production and sales | 100.00% | Establishment | |
| TOPBAND SMART DONG NAI (VIETNAM) COMPANY LIMITED | Vietnam | Vietnam | Production and sales | 100.00% | Establishment | |
| Topband Germany GmbH | Germany | Germany | Sales | 100.00% | Establishment | |
| TOPBAND JAPAN Co.,Ltd | Japan | Japan | Sales | 100.00% | Establishment | |
| Shenzhen Topband Supply Chain Services Co., Ltd. | Shenzhen | Shenzhen | Sales | 100.00% | Establishment | |
| Shenzhen Topband Investment Co., Ltd. | Shenzhen | Shenzhen | Investment | 100.00% | Establishment | |
| Shenzhen Spark IOT Technology Co., Ltd. | Shenzhen | Shenzhen | Sales | 100.00% | Establishment | |
| Shenzhen Tunnu Innovation Co., Ltd. | Shenzhen | Shenzhen | Sales | 100.00% | Establishment | |
| Shenzhen Senxuan Technology Co., Ltd. | Shenzhen | Shenzhen | Sales | 100.00% | Establishment | |
| Topband (Qingdao) Intelligent Control Co., Ltd. | Qingdao | Qingdao | Production and sales | 100.00% | Establishment | |
| Shenzhen Tengyi Industrial Co., Ltd. | Shenzhen | Shenzhen | Sales | 100.00% | Establishment | |
| Taixing Ninghui Battery Co., Ltd. | Taixing | Taixing | Production and sales | 90.48% | Merger of enterprises under different control | |
| Shenzhen Topband Automotive Electronics Co., Ltd. | Shenzhen | Shenzhen | Sales | 100.00% | Establishment | |
| Q.B.PTE.LTD | Singapore | Singapore | Investment | 100.00% | Establishment | |
| TOPBAND MEXICO,S.DE R.L.DE C.V. | Mexico | Mexico | Production and sales | 100.00% | Establishment | |
| Tunnu Innovation HK Limited | Hong Kong | Hong Kong | Sales | 100.00% | Establishment | |
| TOPBAND SMART EUROPE COMPANY LIMITED S.R.L. | Romania | Romania | Production and sales | 100.00% | Establishment | |
| Huizhou YAKO Automation Technology Co., Ltd. | Huizhou | Huizhou | Production and sales | 71.54% | Establishment | |
| Shenzhen Zhongli Consulting Co., Ltd. | Shenzhen | Shenzhen | Sales | 100.00% | Establishment | |
| TUNNU INNOVATION, INC | The United States | The United States | Sales | 100.00% | Establishment | |
| Shenzhen Xiaoyou Aitu Innovation Technology Co., Ltd. | Shenzhen | Shenzhen | Sales | 100.00% | Establishment | |
| Shenzhen Topband Motor Co., Ltd. | Shenzhen | Shenzhen | Production and sales | 100.00% | Establishment | |
| Shenzhen Yueshang Robot Co., Ltd. | Shenzhen | Shenzhen | Production and sales | 100.00% | Establishment |
Explanation of the shareholding ratio in the subsidiary being different from the voting rights ratio:
NoneBasis for holding half or less of the voting rights but still controlling the investee, and holding more than half of thevoting rights but not controlling the investee:
NoneFor important structured entities included in the consolidation scope, the basis for control:
NoneBasis for determining whether a company is an agent or a principal:
NoneOther description:
None
(2) Important non-wholly-owned subsidiaries
Unit: yuan
| Name of subsidiary | Shareholding ratio of minority shareholders | Profits and losses attributable to minority shareholders during the current period | Dividends declared and distributed to minority shareholders during the current period | Ending balance of minority shareholders' equity |
| Shenzhen YAKO Automation Technology Co., Ltd. | 28.46% | 2,286,359.29 | 0.00 | 83,618,344.62 |
Explanation of the shareholding ratio of minority shareholder in subsidiary shareholder being different from thevoting rights ratio:
NoneOther description:
None
(3) Major financial information of important non-wholly-owned subsidiaries
Unit: yuan
| Name of subsidiary | Ending balance | Beginning balance | ||||||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
| Shenzhen YAKO Automation Technology Co., Ltd. | 299,074,667.87 | 88,459,603.21 | 387,534,271.08 | 79,527,775.44 | 9,821,719.45 | 89,349,494.89 | 308,879,580.82 | 61,169,539.31 | 370,049,120.13 | 74,267,013.30 | 9,059,144.56 | 83,326,157.86 |
Unit: yuan
| Name of subsidiary | Amount incurred in the current period | Amount incurred in the previous period | ||||||
| Operating income | Net profit | Total comprehensive income | Cash flow from operating activities | Operating income | Net profit | Total comprehensive income | Cash flow from operating activities | |
| Shenzhen YAKO Automation Technology Co., Ltd. | 135,322,059.03 | 7,794,618.45 | 7,794,618.45 | -6,317,896.59 | 166,417,599.85 | 30,329,229.86 | 30,329,229.86 | -3,857,802.79 |
Other description:
None
(4) Significant restrictions on the use of enterprise group assets and the liquidation of enterprise group debts
□ Applicable ? Not applicable
(5) Financial support or other support provided to structured entities included in the scope of the consolidated financialstatements
□ Applicable ? Not applicable
Other description:
None
2. Transactions in which the share of owners' equity in a subsidiary changes and the subsidiary is stillunder control
(1) Changes of the share of owner's equity in a subsidiary
□ Applicable ? Not applicable
(2) The impact of the transaction on the minority shareholders' equity and the owners' equity attributable to the parentcompany
□ Applicable ? Not applicable
Other description:
None
3. Interests in joint venture arrangements or associated enterprises
(1) Important joint ventures or associated enterprises
□ Applicable ? Not applicable
Explanation of the shareholding ratio in the joint ventures or associated enterprises being different from the votingrights ratio:
NoneBasis for holding less than 20% of the voting rights but having significant influence, or holding 20% or more of thevoting rights but having no significant influence:
None
(2) Major financial information of important joint ventures
□ Applicable ? Not applicable
(3) Major financial information of important associated enterprises
□ Applicable ? Not applicable
Other description:
None
(4) Summarized financial information of unimportant joint ventures and associated enterprises
□ Applicable ? Not applicable
Other description:
None
(5) Statement that there is a material limitation on the ability of the joint ventures or associated enterprisesto transfer funds to the Company
□ Applicable ? Not applicable
(6) Excess losses incurred by the joint ventures or associated enterprises
□ Applicable ? Not applicable
Other description:
None
(7) Unconfirmed commitments related to the investment of joint ventures
□ Applicable ? Not applicable
(8) Contingent liabilities related to the investment of joint ventures or associated enterprises
□ Applicable ? Not applicable
4. Important joint operation
□ Applicable ? Not applicable
Explanation of the shareholding ratio or shares in the joint operation being different from the voting rights ratio:
NoneIf a joint operation is a separate entity, the basis for classified as a joint operation is as follows:
NoneOther description:
None
5. Interests in structured entities not included in the scope of the consolidated financial statementsRelevant explanations of structured entities not included in the scope of the consolidated financial statements:
None
6. Others
NoneX. Risks Associated with Financial Instruments
The main financial instruments of the Company include equity investment, debt investment, borrowings,accounts receivable, accounts payable, convertible bonds, etc. For details of each financial instrument, please referto the relevant items in this report. The risks associated with these financial instruments and the risk managementpolicies adopted by the Company to mitigate these risks are described below. The Management of the Companymanages and monitors these risk exposures to ensure that these risks are controlled within the limited scope.Sensitivity analysis technique is used for analyzing reasonableness of risk variable and possible impacts fromits variation on current profits and losses or shareholders' equity. Since any risk variable rarely changes in isolation,and the correlation between the variables will have a significant effect on the final amount affected by a change ina risk variable, the following contents are based on the assumption that changes in each variable are made in isolation.The main risks arising from the group's financial instruments include the credit risk, liquidity risk and market risk.
(I) Risk management objective and policy
The Company's risk management objective is to strike an appropriate balance between risks and returns, reducethe negative impact of risks on the Company's business performance to the lowest level, and maximize the interestsof shareholders and other equity investors. Based on this risk management objective, the basic risk managementstrategy of the Company is to determine and analyze various risks faced by it, establish an appropriate risk bearingbottom line and carry out risk management, and conduct timely and reliable supervision of various risks to controlrisks within the limited scope.
1. Market risk
(1) Foreign exchange risk
Foreign exchange risk refers to the risk of loss due to exchange rate fluctuations. The Company's exposure toforeign exchange risks is mainly related to US dollars and Hong Kong dollars. Except for the Company and itssubsidiary, Topband (HK) Co., Limited, which purchases and sells some materials and products in US dollars, Eurosand Hong Kong dollars, TOPBAND INDIA PRIVATE LIMITED, the subsidiary, uses Indian rupee, Topband(Vietnam) Co., Ltd. and TOPBAND SMART DONGNAI (VIETNAM) Co., Ltd., the grandson companies, useVietnamese dong, and Topband Germany GmbH, the grandson company, uses Euros; TOPBAND JAPAN Co., Ltd.,the grandson company, uses Japanese yen, Q.B.PTE. LTD, the grandson company, uses Singapore dollars, andTOPBAND MEXICO, S.DE R.L.DE C.V., the grandson company, uses Mexican pesos; TOPBAND SMARTEUROPE COMPANY LIMITED S.R.L., the grandson company, uses Romanian Leu, Tunnu Innovation HKLimited, the grandson company, uses Hong Kong dollars, and TUNNU INNOVATION, INC, the grandsoncompany, uses US dollars; other major business activities of Topband are settled in RMB. As of June 30, 2022, theassets and liabilities of the Company are all in RMB, except for those described in this report "Foreign currencymonetary items" that the assets and liabilities are in US dollars, Hong Kong dollars, Euros, Vietnamese dong andIndian rupee. The foreign exchange risks arising from the assets and liabilities of such foreign currency balancesmay have an impact on the Company's operating results.The Company pays close attention to the impact of exchange rate fluctuations on the Company's foreignexchange risks. The Company currently takes no measures to avoid foreign exchange risks.
(2) Other price risks
Investments held by the Company and classified as tradable financial assets are measured at fair value on thebalance sheet date. Therefore, the Company is exposed to the risk of changes in the securities market.
2. Credit risk
On June 30, 2022, the maximum credit risk exposure causing the Company's financial losses is mainly incurredfrom the other party's failure to fulfill obligations, which leads the Company to financial asset losses, and financialguarantee undertaken by the Company, including confirmed carrying amounts of financial assets in consolidatedbalance sheets; the carrying value only reflects risk exposure of financial instruments measured at fair value ratherthan the maximum risk exposure, that varies with the fair value in the future.
In order to reduce credit risks, the Company has set up special positions responsible for determining creditlimits, conducting credit approval, and implementing other monitoring procedures to ensure that necessary measures
are taken to recover overdue claims. In addition, the Company reviews the recovery of each individual receivableson each balance sheet date to ensure that adequate provision is made for uncollectible amounts. As a result, theManagement of the Company believes that the credit risk assumed by the Company has been significantly reduced.The Company's working capital is deposited in a bank with a high credit rating, so the credit risk of workingcapital is low.The Company has adopted necessary policies to ensure that all sales customers have good credit records. TheCompany has no other major credit concentration risk.
3. Flow risk
In managing liquidity risks, the Company maintains and monitors cash and cash equivalents deemed sufficientby the Management to meet the Company's operational needs and reduce the impact of cash flow fluctuations. TheManagement of the Company monitors the use of bank loans and ensures compliance with loan agreements. TheManagement of the Company monitors the use of bank loans and ensures compliance with loan agreements.
XI. Disclosure of Fair Value
1. Ending fair value of assets and liabilities measured at fair value
Unit: yuan
| Items | Ending fair value | |||
| The first level of fair value measurement | The second level of fair value measurement | The third level of fair value measurement | Total | |
| I. Continuous fair value measurement | -- | -- | -- | -- |
| (I) Tradable financial assets | 272,602,542.73 | 272,602,542.73 | ||
| 1. Financial asset at fair value and changes through current income | 272,602,542.73 | 272,602,542.73 | ||
| (2) Equity instrument investment | 272,602,542.73 | 272,602,542.73 | ||
| (II) Receivables financing | 186,797,543.01 | 186,797,543.01 | ||
| 1. Financial assets measured at fair value and whose changes are included in other comprehensive income | 186,797,543.01 | 186,797,543.01 | ||
| (1) Bank acceptance bill | 48,766,925.55 | 48,766,925.55 | ||
| (2) Accounts receivable | 138,030,617.46 | 138,030,617.46 | ||
| Total assets continuously measured at fair value | 459,400,085.74 | 459,400,085.74 | ||
| II. Non-continuous fair value measurement | -- | -- | -- | -- |
2. The basis for determining the market price of continuous and non-continuous first-level fair valuemeasurement itemsNone
3. Continuous and non-continuous second-level fair value measurement items, valuation techniques adoptedand qualitative and quantitative information of important parametersNone
4. Continuous and non-continuous third-level fair value measurement items, valuation techniques adoptedand qualitative and quantitative information of important parametersNone
5. Continuous third-level fair value measurement items, adjustment information between beginning andending book value and sensitivity analysis of unobservable parametersNone
6. For continuous fair value measurement items, if the conversion occurs among different levels in the currentperiod, the reasons for the conversion and the policies for determining the conversion time pointNone
7. Technical changes in valuation during the current period and the reasons for such changesNone
8. Fair value of financial assets and financial liabilities not measured at fair valueNone
9. Others
None
XII. Related Parties and Related Transactions
1. Information on the parent company of the Enterprise
| Name of parent company | Registered place | Nature of business | Registered capital | The parent company's shareholding ratio | Proportion of the parent company's voting rights in the |
| in the Enterprise | Enterprise | ||||
| Wu Yongqiang | Shenzhen | 16.68% | 16.68% |
Other description:
None
2. Information on the Company's subsidiaries
For details of the subsidiaries of the enterprise, see "1. Equity in Subsidiaries" in "Note IX. Equity in Other Entities".
3. Information on the joint ventures and associated enterprises of the EnterpriseSee the notes on key joint ventures or associated enterprises of the enterprise.Information about other joint ventures or associated enterprises which make related-party transactions with theCompany in the current period or in the previous period with balance left are as follows:
□ Applicable ? Not applicable
Other description:
None
4. Other related parties
| Name of other related parties | Relationship between other related parties and the Enterprise |
| Shenzhen Jizhiguang Electronics Co., Ltd. | A company substantially controlled by the relative of the Company's legal representative |
| Shenzhen Lianghui Technology Co., Ltd. | A company whose shares are held by the Company |
| Shenzhen ORVIBO Technology Co., Ltd. | A company whose shares are held by the Company |
| Shenzhen HANSC Intelligent Technology Co., Ltd. | A company whose shares are held by the Company |
| Guangdong Zhongchuang Zhijia Scientific Research Co., Ltd. | A company whose shares are held by the Company |
| Guangdong Huixin Semiconductor Co., Ltd. | A company whose shares are held by the Company |
| Fujian Mini Dolphin New Energy Technology Co., Ltd. | A company whose shares are held by the Company |
| Chengdu Senwei Technology Co., Ltd. | A company whose shares are held by the Company |
| Shenzhen Youbi Technology Co., Ltd. | A company whose shares are held by the Company |
| Shanghai Yidong Power Technology Co., Ltd. | A company whose shares are held by the Company |
| Pas Electronic Technology (Nanjing) Co., Ltd. | A company whose shares are held by the Company |
| Jiangsu Donghai Semiconductor Co., Ltd. | A company whose shares are held by the Company |
| Jiangxi Salltech Microelectronis Technology Co., Ltd. | A company whose shares are held by the Company |
Other description:
None
5. Related party transaction
(1) Related transactions involving the purchase and sale of goods and the provision and acceptance ofservicesList of goods purchased/services received
| Related party | Related transaction content | Amount incurred in the current period | Approved transaction limit | Is the transaction limit exceeded | Amount incurred in the previous period |
| Shenzhen Jizhiguang Electronics Co., Ltd. | Raw materials | 8,883,560.73 | 27,000,000.00 | No | 10,416,476.86 |
Unit: yuanList of goods sold/services provided
Unit: yuan
| Related party | Related transaction content | Amount incurred in the current period | Amount incurred in the previous period |
| Shenzhen ORVIBO Technology Co., Ltd. | LED products | 23,092,948.30 | 29,087,963.75 |
Related transactions involving the purchase and sale of goods and the provision and acceptance of servicesNone
(2) Relevant entrusted management/contracting and entrusted management/outsourcingThe Company's entrusted management/contracting situation:
□ Applicable ? Not applicable
Description of relevant entrusted management/contracting
□ Applicable ? Not applicable
The Company's entrusted management/outsourcing situation:
□ Applicable ? Not applicable
Description of associated management/outsourcing
□ Applicable ? Not applicable
(3) Related lease
The Company as a lessor:
□ Applicable ? Not applicable
The Company as a lessee:
□ Applicable ? Not applicable
Description of associated leasing
□ Applicable ? Not applicable
(4) Related party guarantee situation
The Company as a guarantor
□ Applicable ? Not applicable
The Company as a guaranteed party
□ Applicable ? Not applicable
Description of associated guarantee
□ Applicable ? Not applicable
(5) Interbank lending of related parties
□ Applicable ? Not applicable
(6) Asset transfer and debt restructuring of related parties
□ Applicable ? Not applicable
(7) Remuneration of key management personnel
Unit: yuan
| Items | Amount incurred in the current period | Amount incurred in the previous period |
| Remuneration of key management personnel | 3,352,000.00 | 3,310,400.00 |
(8) Other related transactions
For details, please refer to Section VI "Important Matters XI: Significant related transactions" 7. "Othersignificant related transactions".
6. Payables due to related parties
(1) Item receivable
Unit: yuan
| Project name | Related party | Ending balance | Beginning balance | ||
| Book balance | Provision for bad | Book balance | Provision for bad | ||
| debts | debts | ||||
| Accounts receivable | Shenzhen ORVIBO Technology Co., Ltd. | 4,441,161.50 | 137,676.01 | 10,396,665.72 | 322,296.64 |
(2) Payables
Unit: yuan
| Project name | Related party | Book balance at the end of the period | Book balance at the beginning of the period |
| Accounts payable | Shenzhen Jizhiguang Electronics Co., Ltd. | 839,481.80 | 3,099,592.01 |
| Notes payable | Shenzhen Jizhiguang Electronics Co., Ltd. | 1,630,000.00 | 2,376,908.03 |
7. Commitment of related parties
□ Applicable ? Not applicable
8. Others
□ Applicable ? Not applicable
XIII. Share-based payment
1. General situation of share-based payments
? Applicable □ Not applicable
Unit: yuan
| Total amount of equity instruments granted by the Company during the current period | 0.00 |
| Total amount of equity instruments exercised by the Company during the current period | 14,049,300.00 |
| Total amount of the Company's equity instruments that expired during the current period | 227,500.00 |
| The range of the exercise price of the Company's stock options outstanding at the end of the period and the remaining term of the contract | None |
| The range of the exercise price of the Company's other equity instruments outstanding at the end of the period and the remaining term of the contract | On November 2, 2021, the Company granted restricted stocks to incentive objects at a grant price of 7.23 yuan per share, including 1,224 registered objects and 33,544,320 restricted stocks in total. Topband carried out the performance appraisal for companies and the individual incentive objects once in each fiscal year, taking the performance appraisal target as the unlocking condition for restricted stocks. This incentive plan was valid from the grant date of restricted stocks to the date when all restricted stocks were unlocked or canceled, with the maximum time of 48 months. After 12 months from the |
grant date of the restricted stocks granted this time, the incentive objects that meet theunlocking conditions could be unlocked at the exercise ratio of 30%, 30% and 40%within the unlocking day.
Other description:
Description of share-based payment:
1. Stock options in 2018
On November 27, 2018, the 9th Meeting of the 6th Board of Directors of the Company deliberated and passedthe Proposal on Granting Stock Options to Incentive Objects, granting 42,887,000 stock options to 684 eligibleincentive objects at a grant price of 3.80 yuan per share.On July 26, 2019, the 15th Meeting of the 6th Board of Directors of the Company deliberated and passed theProposal on Adjusting the Stock Option Exercise Price of the 2018 Stock Option Incentive Plan, which adjusted theexercise price of the 2018 Stock Option Incentive Plan from 3.80 yuan to 3.70 yuan due to the Company's 2018annual equity distribution.On March 30, 2020, the Company held the 22nd Meeting of the 6th Board of Directors, deliberating andapproving the Proposal on the First Exercise Period of 2018 Stock Option Incentive Plan Meeting the ExerciseConditions and Exercisable Rights and the Proposal on Adjustment of the Incentive Objects and the Number ofStock Options of 2018 Stock Option Incentive Plan: In the first exercise period of the 2018 stock option incentiveplan of the Company, a total of 606 incentive objects with 12,014,700 stock options in total were eligible for exercise.In May 2020, a total of 606 incentive objects with 12,014,700 stock options in total in the first exercise periodcompleted exercise.
On January 16, 2021, given that 76 original incentive objects of the Company, including Huang Xinyu andYang Shengcang, left office due to personal reasons, according to relevant provisions of the 2018 Stock OptionIncentive Plan (Revised Draft), the above personnel did not meet the incentive conditions, and a total of 2,773,000stock options that were granted to the 76 original incentive objects but were not exercised may not be exercised.The Company has completed the cancellation of this part of the stock options on January 29, 2021.
On March 5, 2021, the 6th Meeting of the 7th Board of Directors of the Company deliberated and approvedthe Proposal on the Second Exercise Period of 2018 Stock Option Incentive Plan Meeting the Exercise Conditionsand Exercisable Rights and Proposal on Adjustment of the Incentive Objects and the Number of Stock Options of2018 Stock Option Incentive Plan: there are 567 incentive objects in the second exercise period of the 2018 stockoption incentive plan in the Company, in total of 10,950,600 stock options, that meet the exercise conditions and
can be exercised. The Company plans to adopt the independent exercise mode. Cheng Xuejing and Lin Qiao, theincentive objects, resigned from the Company due to personal reasons, and their 80,500 stock options that havebeen granted but not yet exercised would not be exercised and would be canceled by the Company. On August 6,2021, 10,950,600 stock options involving 567 incentive objects that meet the exercising conditions had beenexercised.On March 18, 2022, the 21st Meeting of the 7th Board of Directors and the 17th Meeting of the 7th Board ofSupervisors of the Company deliberated and approved the Proposal on the Third Exercise Period of 2018 StockOption Incentive Plan Meeting the Exercise Conditions and Exercisable Rights and the Proposal on Adjustment ofthe Incentive Objects and the Number of Stock Options of 2018 Stock Option Incentive Plan: there are 543 incentiveobjects in the third exercise period of the 2018 stock option incentive plan in the Company, in total of 14,049,300stock options, which meet the exercise conditions and can be exercised. The Company plans to adopt theindependent exercise mode. The total number of exercisable stock options was 14,049,300.22 incentive objects,including Zhang Ran and Wu Mingli, resigned from the Company due to personal reasons, and their 324,000 stockoptions that have been granted but not yet exercised would not be exercised and would be canceled by the Company.On May 16, 2022, 14,049,300 stock options involving 543 incentive objects that meet the exercising conditions hadbeen exercised.
2. Restricted stock in 2021
On October 13, 2021, the Company held the 14th Meeting of the 7th Board of Directors, and reviewed andapproved the Proposal on the < Company's Restricted Stock Incentive Plan in 2021 (Draft)> and its Abstract,Proposal on the < Appraisal Management Measures for the Implementation of the Restricted Stock Incentive Planin 2021> and Proposal on Requesting the General Meeting of Shareholders to Authorize the Board of Directors toHandle Matters Related to the Company's Restricted Stock Incentive Plan in 2021, agreeing that the company wouldgrant 34,000,000 restricted stocks to 1,250 incentive objects.On November 2, 2021, the Company held the 16th (Interim) Meeting of the 7th Board of Directors and the13th (Interim) Meeting of the 7th Board of Supervisors, to review and approve the Proposal on Adjusting theNumber of Granted Options and List of Incentive Objects in Restricted Stock Incentive Plan in 2021. In view of theresignation of Ou Li who is one of the incentive objects, and Wang Cheng, Shen Zhiwen and Tian Conghui whovoluntarily gave up the subscription of the restricted stocks granted due to personal reasons, incentive objects were
adjusted from 1,250 to 1,246, and the total restricted stocks granted for the first time was changed from 34,000,000to 33,951,000.On December 7, 2021, the Company held the 17th (Interim) Meeting of the 7th Board of Directors, to reviewand approve the Proposal on Adjusting the Number of Granted Options and List of Incentive Objects in RestrictedStock Incentive Plan in 2021. The board of directors believed that after determining November 2, 2021 as the grantdate of the restricted stock incentive plan in 2021, in the process of capital payment before the share registration,22 incentive objects determined in this incentive plan, including Li Xiang, Yu Dingguo and Lu Yuanshan,voluntarily gave up the subscription of all the restricted stocks granted due to personal reasons, and 10 incentiveobjects, including Ao Xinmeng, Wang Cao, and Liu Xiaoshi, voluntarily gave up the subscription of some of therestricted stocks granted to them due to personal reasons. With the authorization of the 2nd Extraordinary GeneralMeeting of Shareholders in 2021, the board of directors adjusted the grant objects and grant quantities of thisincentive plan. After adjustment, the number of incentive objects under the 2021 Restricted Stock Incentive Plandecreased from 1,246 to 1,224, and the number of restricted stocks granted decreased from 33,951,000 to 33,544,320.On March 30, 2022, the 23rd (Interim) Meeting of the 7th Board of Directors and the 19th (Interim) Meetingof the 7th Board of Supervisors of the Company deliberated and approved the Proposal on the Proposal onRepurchase and Cancellation of Some Restricted Stocks from Restricted Stock Incentive Plan in 2021. 10 incentiveobjects, including Wu Song and Luo Qingshan in the Restricted Stock Incentive Plan in 2021, resigned from theCompany due to personal reasons and no longer met conditions for becoming stock incentive objects. Therefore,their 221,000 restricted stocks that have been granted but not yet unlocked would be canceled by the Company. Inthe restricted stock incentive plan in 2021, the objects to be granted were reduced from 1,224 to 1,214.
2. Equity-settled share-based payments
? Applicable □ Not applicable
Unit: yuan
| Method for determining the fair value of the equity instrument on the grant date | Fair value of equity instruments = (market price on grant date - grant price) * number of shares |
| Basis for determining the number of exercisable equity instruments | Estimation shall be based on the latest available changes on vesting employee number and other subsequent information |
| Reasons for the significant difference between the estimates of the current period and that of the previous period | None |
| Accumulated amount of equity-settled share-based payments included in capital reserves | 184,467,728.73 |
| Total amount of expenses recognized by equity-settled share- | 74,063,749.66 |
based payments in the current period
Other description:
3. Cash-settled share-based payments
□ Applicable ? Not applicable
4. Modification and termination of share-based payments
□ Applicable ? Not applicable
5. Others
NoneXIV. Commitments and contingencies
1. Important commitments
Important commitments that existed on the balance sheet dateNone
2. Contingencies
(1) Significant contingencies on the balance sheet date
□ Applicable ? Not applicable
(2) If the Company has no important contingencies that need to be disclosed, they shall also be explainedNo signification contingencies need to be disclosed by the Company.
3. Others
NoneXV. Events after the balance sheet date
1. Important non-adjusting matters
□ Applicable ? Not applicable
2. Profit distribution
□ Applicable ? Not applicable
3. Sales return
□ Applicable ? Not applicable
4. Description of other events after the balance sheet date
□ Applicable ? Not applicable
XVI. Other important matters
1. Correction of early accounting errors
(1) Retrospective restatement method
□ Applicable ? Not applicable
(2) Prospective application method
□ Applicable ? Not applicable
2. Debt restructuring
□ Applicable ? Not applicable
3. Asset replacement
(1) Exchange of non-monetary assets
□ Applicable ? Not applicable
(2) Other asset replacement
□ Applicable ? Not applicable
4. Annuity plan
□ Applicable ? Not applicable
5. Discontinued operation
□ Applicable ? Not applicable
6. Division information
(1) Basis for recognition and accounting policies of reportable divisions
□ Applicable ? Not applicable
(2) Financial information of reportable divisions
□ Applicable ? Not applicable
(3) If the Company has no reportable divisions, or fails to disclose the total assets and liabilities of eachdivision, the reasons shall be given.None
(4) Other descriptions
None
7. Other important transactions and matters that have an impact on investors' decisionsNone
8. Others
NoneXVII. Notes on Main Items in the Financial Statements of the Parent Company
1. Accounts receivable
(1) Disclosure of accounts receivable by category
Unit: yuan
| Category | Ending balance | Beginning balance | ||||||||
| Book balance | Provision for bad debts | Book value | Book balance | Provision for bad debts | Book value | |||||
| Amount | Proportion | Amount | Proportion of provision | Amount | Proportion | Amount | Proportion of provision | |||
| Accounts receivable | 183,822,763.32 | 11.74% | 183,822,763.32 | 231,814,138.25 | 15.06% | 231,814,138.25 | ||||
| with single provision for bad debts | ||||||||||
| Including: | ||||||||||
| Receivables with significant individual amount and single provision for bad debts | 182,576,113.53 | 11.66% | 182,576,113.53 | 231,795,120.17 | 15.06% | 231,795,120.17 | ||||
| Receivables with not significant amount but with single provision for bad debts | 1,246,649.79 | 0.08% | 1,246,649.79 | 19,018.08 | 0.00% | 19,018.08 | ||||
| Accounts receivable with provision for bad debts by aging combination | 1,382,518,047.60 | 88.26% | 44,376,366.08 | 3.21% | 1,338,141,681.52 | 1,306,965,149.94 | 84.94% | 41,858,033.85 | 3.20% | 1,265,107,116.09 |
| Including: | ||||||||||
| Accounts receivable with provision for bad debts by combination (aging analysis method) | 1,382,518,047.60 | 88.26% | 44,376,366.08 | 3.21% | 1,338,141,681.52 | 1,306,965,149.94 | 84.94% | 41,858,033.85 | 3.20% | 1,265,107,116.09 |
| Total | 1,566,340,810.92 | 100.00% | 44,376,366.08 | 2.83% | 1,521,964,444.84 | 1,538,779,288.19 | 100.00% | 41,858,033.85 | 2.72% | 1,496,921,254.34 |
Single provision for bad debts: 0
Unit: yuan
| Name | Ending balance | |||
| Book balance | Provision for bad debts | Proportion of provision | Reasons for provision | |
| Accounts receivable with a single significant amount and single bad debt provision | 182,576,113.53 | |||
| Accounts receivable with insignificant single amount but separate bad debt provision | 1,246,649.79 | |||
| Total | 183,822,763.32 |
Single provision for bad debts: 44,376,366.08
Unit: yuan
| Name | Ending balance | ||
| Book balance | Provision for bad debts | Proportion of provision | |
| Accounts receivable with bad debt provision drawn by portfolio with credit risk features | 1,382,518,047.60 | 44,376,366.08 | 3.21% |
| Total | 1,382,518,047.60 | 44,376,366.08 | |
Description of the basis for determining the portfolio:
NoneIf the provision for bad debts on notes receivable is based on the general model of expected credit loss, theinformation about the provision for bad debts shall be disclosed by referring to the disclosure method of otherreceivables:
□ Applicable ? Not applicable
Disclosure by aging
Unit: yuan
| Aging | Ending balance |
| Within 1 year (including 1 year) | 1,560,963,332.58 |
| 1-2 years | 540,042.66 |
| 2-3 years | 2,841,066.76 |
| Above 3 years | 1,996,368.92 |
| 3-4 years | 1,834,317.66 |
| 4-5 years | 162,051.26 |
| Above 5 years | 0.00 |
| Total | 1,566,340,810.92 |
(2) Provision for bad debts withdrawn, recovered or reversed in current periodProvision for bad debts in the current period:
Unit: yuan
| Category | Beginning balance | Amount changed in the current period | Ending balance | |||
| Provision | Recover or reversal | Write-off | Other | |||
| Provision for bad debts | 41,858,033.85 | 2,538,332.23 | 20,000.00 | 44,376,366.08 | ||
| Total | 41,858,033.85 | 2,538,332.23 | 20,000.00 | 44,376,366.08 | ||
Of which the amount of provision for bad debts recovered or reversed in the current period is significant:
None
(3) Accounts receivable actually written off in the current period
Unit: yuan
| Items | Write-off amount |
| Accounts receivable actually written off | 20,000.00 |
Of which the significant write-offs of accounts receivable:
NoneDescription of accounts receivable written off:
None
(4) Accounts receivable of top five ending balances grouped by debtors
Unit: yuan
| Name of unit | Ending balance of accounts receivable | Proportion to total ending balances of accounts receivable | Ending balance of provision for bad debts |
| No. 1 | 519,566,713.33 | 33.17% | 16,106,568.11 |
| No. 2 | 77,772,367.29 | 4.97% | 2,477,780.82 |
| No. 3 | 55,238,619.04 | 3.53% | 1,712,397.19 |
| No. 4 | 42,579,958.16 | 2.72% | 1,319,978.70 |
| No. 5 | 40,359,436.26 | 2.58% | 1,251,142.52 |
| Total | 735,517,094.08 | 46.97% |
(5) Accounts receivable derecognized due to transfer of financial assets
□ Applicable ? Not applicable
(6) Amount of assets and liabilities formed by transferring accounts receivable and continuing to be involved
□ Applicable ? Not applicable
Other description:
None
2. Other receivables
Unit: yuan
| Items | Ending balance | Beginning balance |
| Other receivables | 254,051,041.69 | 141,619,648.22 |
| Total | 254,051,041.69 | 141,619,648.22 |
(1) Interest receivable
1) Classification of interest receivable
□ Applicable ? Not applicable
2) Significant overdue interest
□ Applicable ? Not applicable
3) Provision for bad debts
□ Applicable ? Not applicable
(2) Dividends receivable
1) Classification of interest receivable
□ Applicable ? Not applicable
2) Important dividends receivable aged over 1 year
□ Applicable ? Not applicable
3) Provision for bad debts
□ Applicable ? Not applicable
(3) Other receivables
1) Classification of other receivables by nature of amount
Unit: yuan
| Nature of payment | Book balance at the end of the period | Book balance at the beginning of the period |
| Employee loans | 6,803,004.64 | 6,888,020.46 |
| Margin, deposit | 6,726,644.67 | 5,474,993.31 |
| Internal related transactions | 239,737,403.42 | 131,639,091.99 |
| Other | 3,444,215.71 | 7,693.46 |
| Total | 256,711,268.44 | 144,009,799.22 |
2) Provision for bad debts
Unit: yuan
| Provision for bad debts | First stage | Second stage | Third stage | Total |
| Expected credit loss in the next 12 months | Expected credit loss for the entire duration (no credit impairment) | Expected credit loss for the entire duration (credit impairment occurred) | ||
| Balance as of January 1, 2022 | 2,390,151.00 | 2,390,151.00 | ||
| Balance as of January 1, 2022 in the current period | ||||
| Accrual in the current period | 270,075.75 | 270,075.75 | ||
| Balance as of June 30, 2022 | 2,660,226.75 | 2,660,226.75 |
Changes in book balance with significant changes in loss reserves in the current period
□ Applicable ? Not applicable
Disclosure by aging
Unit: yuan
| Aging | Ending balance |
| Within 1 year (including 1 year) | 250,466,000.69 |
| Subtotal within one year | 250,466,000.69 |
| 1-2 years | 2,309,843.41 |
| 2-3 years | 1,197,176.00 |
| Above 3 years | 2,738,248.34 |
| 3-4 years | 1,609,538.34 |
| 4-5 years | 1,112,000.00 |
| Above 5 years | 16,710.00 |
| Total | 256,711,268.44 |
3) Bad debt provision withdrawn, recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: yuan
| Category | Beginning balance | Amount changed in the current period | Ending balance | |||
| Provision | Recover or reversal | Write-off | Other | |||
| Provision for bad debts | 5,250,956.42 | 238,528.94 | 5,489,485.36 | |||
| Total | 5,250,956.42 | 238,528.94 | 5,489,485.36 | |||
Of which the amount of provision for bad debts recovered or reversed in the current period is significant:
None
4) Other receivables actually written off in the current period
□ Applicable ? Not applicable
5) Other receivables of top five ending balances grouped by debtors
Unit: yuan
| Name of unit | Nature of payment | Ending balance | Aging | Proportion to total ending balances of other receivables | Ending balance of provision for bad debts |
| No. 1 | Intercourse funds | 205,115,065.28 | Within 1 year | 79.90% | 0.00 |
| No. 2 | Intercourse funds | 15,468,332.78 | Within 1 year | 6.03% | 0.00 |
| No. 3 | Intercourse funds | 8,423,619.34 | Within 1 year | 3.28% | 0.00 |
| No. 4 | Intercourse funds | 5,114,048.33 | 1-2 years | 1.99% | 0.00 |
| No. 5 | Intercourse funds | 2,908,792.00 | Within 1 year | 1.13% | 0.00 |
| Total | 237,029,857.73 | 92.33% | 0.00 |
6) Receivables involving government subsidies
□ Applicable ? Not applicable
7) Other receivables derecognized due to transfer of financial assets
□ Applicable ? Not applicable
8) Amount of assets and liabilities formed by transferring other receivables and continuing to be involved
□ Applicable ? Not applicable
3. Long-term equity investment
Unit: yuan
| Items | Ending balance | Beginning balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Investment in subsidiaries | 3,836,195,816.61 | 3,836,195,816.61 | 2,941,581,406.04 | 2,941,581,406.04 | ||
| Investment in associated enterprises and joint ventures | 18,377,321.11 | 12,433,655.05 | 5,943,666.06 | 18,408,714.90 | 12,433,655.05 | 5,975,059.85 |
| Total | 3,854,573,137.72 | 12,433,655.05 | 3,842,139,482.67 | 2,959,990,120.94 | 12,433,655.05 | 2,947,556,465.89 |
(1) Investment in subsidiaries
Unit: yuan
| Investee | Beginning balance (book value) | Changes in increase or decrease in the current period | Ending balance (book value) | Ending balance of provision for impairment | |||
| Additional investment | Decrease in investment | Provision for impairment | Other | ||||
| Shenzhen Topband Software Technology Co., Ltd. | 18,699,450.44 | 3,232,708.50 | 21,932,158.94 | ||||
| Shenzhen Topband Battery Co., Ltd. | 5,963,808.90 | 613,985,204.71 | 619,949,013.61 | ||||
| Shenzhen Topband Automation Technology Co., Ltd. | 34,634,741.13 | 606,281.66 | 35,241,022.79 | ||||
| Chongqing Topband Industrial Co., Ltd. | 210,330,745.87 | 483,102.08 | 210,813,847.95 | ||||
| Topband (Hong Kong) Co., Ltd. | 364,511,500.00 | 63,418,000.00 | 427,929,500.00 | ||||
| Huizhou Topband Electrical Technology Co., Ltd. | 1,007,281,720.35 | 10,109,177.83 | 1,017,390,898.18 | ||||
| Ningbo Topband Intelligent Control Co., Ltd. | 519,868,835.07 | 150,318,633.70 | 670,187,468.77 | ||||
| Shenzhen Allied Control System Co., Ltd. | 122,145,544.81 | 2,345,296.53 | 124,490,841.34 | ||||
| Shenzhen Meanstone Intelligent Technology Co., Ltd. | 10,000,000.00 | 0.00 | 10,000,000.00 | ||||
| TOPBAND INDIA PRIVATE LIMITED | 195,026,748.97 | 0.00 | 195,026,748.97 | ||||
| Shenzhen YAKO Automation Technology Co., Ltd. | 350,014,659.96 | 0.00 | 350,014,659.96 | ||||
| Shenzhen Topband Investment Co., Ltd. | 60,092,202.62 | 40,081,661.80 | 100,173,864.42 | ||||
| Shenzhen Topband Supply Chain Services Co., Ltd. | 5,000,000.00 | 0.00 | 5,000,000.00 | ||||
| Shenzhen Senxuan Technology Co., Ltd. | 8,011,447.92 | 34,343.76 | 8,045,791.68 | ||||
| Topband (Qingdao) | 30,000,000.00 | 0.00 | 30,000,000.00 | ||||
| Intelligent Control Co., Ltd. | |||||||
| Shenzhen Topband Motor Co., Ltd. | 10,000,000.00 | 10,000,000.00 | |||||
| Total | 2,941,581,406.04 | 894,614,410.57 | 3,836,195,816.61 |
(2) Investment in associated enterprises and joint ventures
Unit: yuan
| Investment unit | Beginning balance (book value) | Changes in increase or decrease in the current period | Ending balance (book value) | Ending balance of provision for impairment | ||||||||
| Additional investment | Decrease in investment | Profits and losses on investment recognized under equity method | Adjustment to other comprehensive income | Other changes in equity | Declaration of distribution for cash dividends or profits | Provision for impairment | Other | |||||
| I. Joint venture | ||||||||||||
| II. Associated enterprises | ||||||||||||
| Shenzhen Daka Optoelectronics Co., Ltd. | 5,975,059.85 | -31,393.79 | 5,943,666.06 | |||||||||
| Shenzhen Yuchengxin Power Technology Co., Ltd. | 0.00 | 12,433,655.05 | ||||||||||
| Subtotal | 5,975,059.85 | -31,393.79 | 5,943,666.06 | 12,433,655.05 | ||||||||
| Total | 5,975,059.85 | -31,393.79 | 5,943,666.06 | 12,433,655.05 | ||||||||
(3) Other descriptions
4. Operating income and operating cost
Unit: yuan
| Items | Amount incurred in the current period | Amount incurred in the previous period | ||
| Income | Cost | Income | Cost | |
| Main business | 2,387,700,802.78 | 2,029,249,076.26 | 2,108,115,155.95 | 1,747,449,569.91 |
| Other business | 72,146,674.17 | 64,311,335.67 | 53,820,075.36 | 47,592,448.41 |
| Total | 2,459,847,476.95 | 2,093,560,411.93 | 2,161,935,231.31 | 1,795,042,018.32 |
Information related to performance obligations:
Not applicableInformation related to the transaction price allocated to the remaining performance obligations:
The amount of income corresponding to the performance obligations that have signed contracts but have not beenperformed or completed at the end of this reporting period is 0.00 yuan, and 0.00 yuan is expected to be recognizedwithin one year.Other description:
None
5. Return on investment
Unit: yuan
| Items | Amount incurred in the current period | Amount incurred in the previous period |
| Long-term equity investment income accounted by the cost method | -31,393.79 | -495,808.80 |
| Investment revenue from disposal of tradable financial assets | 24,066,351.32 | |
| Subsidiary dividend income | 14,053,405.97 | |
| Total | -31,393.79 | 37,623,948.49 |
6. Others
NoneXVIII. Supplementary Information
1. Schedule of current non-recurring profits and losses
? Applicable □ Not applicable
Unit: yuan
| Items | Amount | Description |
| Disposal of profits and losses of non-current assets | -378,109.64 | |
| Government subsidies included in the current profits and losses (except those that are closely related to the normal business of the Company, conform to national policies and regulations and are continuously enjoyed in a fixed or quantitative manner according to certain standards) | 14,625,339.37 | |
| Profits and losses due to fair value changes arising from the holding of tradable financial assets and liabilities, as well as the investment income from the disposal of tradable financial assets and liabilities and available-for-sale financial assets, except for the effective hedging business related to the normal business of the Company | 31,603,205.99 | |
| Other non-operating income and expenses other than those mentioned above | -1,217,111.70 | |
| Other items of profits and losses that meet the definition of non-recurring profits and losses | 241,902.47 | Financing income |
| Minus: amount affected by income tax | 2,794,910.05 | |
| Impact amount of minority shareholders' equity | 228,101.16 | |
| Total | 41,852,215.28 | -- |
Details of other items of profits and losses that conform to the definition of non-recurring profits and losses:
□ Applicable ? Not applicable
None.Explanation of defining the items of non-recurring profits and losses listed in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public - Non-recurring Profits andLosses as recurring items of profits and losses
□ Applicable ? Not applicable
2. Return on equity and earnings per share
| Profits of the reporting period | Weighted return on average equity | Earnings per share | |
| Basic earnings per share (yuan/share) | Diluted earnings per share (yuan/share) | ||
| Net income attributable to the ordinary shareholders of the Company | 4.77% | 0.20 | 0.20 |
| Net profit attributable to the ordinary shareholders of the Company after deduction of non-recurring profits and losses | 3.96% | 0.16 | 0.16 |
3. Differences in accounting data under domestic and foreign accounting standards
(1) Differences in net profit and net assets between financial reports disclosed in accordance withInternational Accounting Standards and those disclosed in accordance with PRC GAAP at the same time
□ Applicable ? Not applicable
(2) Difference between the net profit and net assets in the financial reports disclosed in accordance with bothforeign accounting standards and Chinese accounting standards at the same time
□ Applicable ? Not applicable
(3) Reasons for differences in accounting data under domestic and foreign accounting standards. If the dataaudited by an overseas audit institution is adjusted for differences, the name of the overseas auditinstitution shall be indicated
4. Others
Section XI Other Reported DataI. Other major social security issues
Whether there were major social security issues in the listed company and its subsidiaries
□ Yes □ No ? N/A
Existing problems and rectificationWhether administrative penalty was imposed during the reporting period
□ Yes □ No ? N/A
Punishment items, punishment measures and rectification
II. Registration form for reception and investigation, communication, interview and otheractivities during the reporting period
? Applicable □ Not applicable
| Time of reception | Location of reception | Method of reception | Type of reception object | Reception object | Main contents of interview and materials provided | Basic Information index for investigation |
| 2022/1/18 2022/1/20 2022/1/21 | Conference room of the Company | Field survey | Organizations | Ruiyuan Fund, Bank of Communications Schroder Fund, China Orient Asset Management, E Fund Management and UBS AM (US) | Learn about the operation of the Company; no information provided. | http://www.cninfo.com.cn |
| 2022/1/24 | Conference room of the Company | Telephone communication | Organizations | Citibank、ABRDN、Allianz Asia、CHINA RE ASSET MGMT CO LTD、Eurizon Capital SGR SPA、Fountaincap Res & Inv (HK) Co、Fullgoal Fund Management、Hang Seng Investment Management、Lazard Freres、Mackenzie Financial Corp、Manulife Asset Mgmt (HK) Ltd、Millennium Capital Management、Neuberger & Berman、New Silk Road Investment Pte、Orchid China Management Limited、Oscar & Partners Capital Ltd、Pinpoint Asset Management Ltd、Point72 Asset Management、Power Corporation of Canada、Principal Global Investors、Schonfeld Strategic Adv HK Ltd、Schroder Invest | Learn about the operation of the Company; no information provided. | http://www.cninfo.com.cn |
| Management UK、Schroders IM Singapore、UBS AM (US)、UBS AM London、Value Partners、Wellington Management Company。 | ||||||
| 2022/2/27 2022/3/1 | Conference room of the Company | Telephone communication | Organizations | Neuberger Berman, Vontobel Asset Management, Allianz Global Investors, Essence Securities, Essence Asset Management, Beijing Zundao Asset Management, BlackRock Fund, Truvalue Asset Management, Dacheng Innovation Capital Management, Topsperity Fund, Topsperity Securities, Orient Securities Asset Management, Shanghai Fusheng Assets Management, Fullgoal Fund Management, Fortune & Royal Fund, Everbright Securities, Everbright Securities Asset Management, Guangdong Hengsheng Fund Management, Guangdong Development Fund, Guotai Asset Management, Guotai Junan Securities, Guosen Securities, HFT Investment Management, Hua An Fund Management, Hwabao WP Fund Management, Huachuang Securities, Huashang Fund Management, Huatai Baoxing Fund Management, Huatai Securities, China Asset Management, China Universal Asset Management, Harvest Fund, CCB Principal Asset Management, Bank Of Communications Schroder Fund Management, Greenwoods Asset Management, JT Asset Management, Minsheng Royal Fund Management, Mingya Fund, China Southern Asset Management, ABC Wealth Management, Ping An Fund, Ping An Annuity Insurance Company of China, Pingyang Jiuyan Asset Management, SPDB-AXA Fund, First Seafront Fund, Rongtong Fund Management, Foresight Fund, Three Gorges Capital Holdings, Fosun Capital, Shanghai Fosun High Technology, Shanghai Yinsheng Asset Management, Shenzhen Orient Ruizhe Asset Management, Pacific Investment Management, Taikang Asset, Teng Yue Partners Master Fund, TF Securities, Xizang Yuancheng Investment Management, First State Cinda Fund Management, CIB Fund Management, Industrial Securities, E Fund Management, Yinhua Fund Management, Maxwealth Fund Management, Shenzhen Yuanjing Changqing Investment Management, Changjiang Securities, China Merchants Asset Management, | Learn about the operation of the Company; no information provided. | http://www.cninfo.com.cn |
| Zheshang Securities, Zhonggeng Fund Management, CICC, Lombarda China Fund Management, Citic-prudential Fund Management, China Securities, CITIC Securities, Bank of China Investment Management, EXC Capital Management, TF Securities, Wells Fargo Funds Management. | ||||||
| 2022/3/21 2022/3/22 2022/3/23 | Conference room of the Company | Telephone communication | Organizations | TF Securities, China Securities, Zhongtai Securities, Guosen Securities, CITIC Securities, CICC Securities, Huachuang Securities, Guotai Junan Securities, Shenwan Hongyuan Securities, Changjiang Securities, Guosheng Securities, Southwest Securities and Haitong Securities. CHAIRPERSON、SPEAKER、CITI、OASIS、POINT 72、BLACKROCK、NEW SILK ROAD、HANG SENG INV、XIN DA NEUBERGER BERMAN、VALUE PARTNERS、AXA、PUTNAM、KADENSA CPT、HANG SENG INV、MARSHALL WACE。TF Securities, Shenzhen Zhicheng Haiwei Asset Management, Sinosafe Assets, China Asset Management, BlackRock Fund, AEGON-INDUSTRIAL Fund Management, Guotai Asset Management, SDIC Fund, China Universal Asset Management, Foresight Fund, Shanghai Silver Leaf Investment, Rongtong Fund Management, CITIC Securities Asset Management, Shanghai South Land Investment Management, Shenzhen Qin Tao Capital Management, Guotai Junan Securities Asset Management, Chaos Investment, China Merchants Fund, Vontobel Asset Management Asia Pacific Limited, Xintai Life Insurance, Shanghai Chunda Investment, Hunan Yuancheng Investment, BOSC Asset, Zhongtai Securities Proprietary, EXC Capital Management, Yongde Ruixuan (Qingdao) Private Equity Fund, Ningbo Liansheng Investment, Shenzhen Qianhai Dengcheng Asset Management, Essence Securities Asset Management, Hangzhou Qianlu Investment, Shenzhen Shangdao Investment Fund, Beijing Ding Investment, Infore Capital, DIB Asset Management (Zhuhai) Co., Ltd., Rays Capital, Yinhua Fund Management, Value Investment Management, Shanghai EverFortune Investment & Management, Pioneer Fund, | Learn about the operation of the Company; no information provided. | http://www.cninfo.com.cn |
| Dongfanghong Fund, Huarong Fund, Tianchong Asset Management, Guhe Asset Management, CITIC Industrial Fund, Silver Leaf Investment, Dongxing Securities. Teng Yue Partners Master Fund. | ||||||
| 2022/3/31 | Flush Roadshow Platform | Others | Organizations | Performance presentation session | Learn about the operation of the Company; no information provided. | http://www.cninfo.com.cn |
| 2022/4/20 2022/4/21 2022/4/22 | Conference room of the Company | Telephone communication | Organizations | TF Securities, China Securities, Zhongtai Securities, Guosen Securities, CITIC Securities, CICC Securities, Huachuang Securities, Guotai Junan Securities, Shenwan Hongyuan Securities, Changjiang Securities, Guosheng Securities, Southwest Securities, Sinolink Securities, Citi Medium- and Small-cap Stock, Haitong Securities, Great Wall Securities, Everbright Securities, Huatai Securities, Minsheng Securities, Pacific Securities, Dongxing Securities, Wanlian Securities and Soochow Securities. TF Securities, Yinhua Fund Management, China Universal Asset Management, Shenzhen Qianhai Dengcheng Asset Management, Foresight Fund, Genharmony Capital, Shenzhen Zhicheng Haiwei Asset Management, Penghua Fund, Rays Capital, Guotai Asset Management, Western Leadbank FMC, Vontobel Asset Management Asia Pacific Limited, Sinosafe Assets, First-Trust Fund Management, BOSC Asset, BOCI Securities, SPDB-AXA Fund, Fosun Asset Management, Neuberger Berman Fund, Jinfu Anda, Ping An Fund, Shanghai Silver Leaf Investment, Huatai Securities Proprietary Securities Investment, Changjun Capital Investment, AEGON-INDUSTRIAL Fund Management, ABC Wealth Management, BlackRock Fund, Beijing Yihejiufu Investment Management, Tangrong Capital, Shanghai Yinsheng Asset Management, First-Trust Fund Management, Rongtong Fund Management, CCB Pension Asset Management, Purekind Fund Management, Tianchong Asset Management, Oriental Alpha Fund, Shanghai Tongben Investment Management Center, Asset Management Department of Essence Securities, Millennium | Learn about the operation of the Company; no information provided. | http://www.cninfo.com.cn |
| Capital, Shanghai Feima Investment and Management, Infore Capital, Pacific Investment Management, Asset Management Department of GF Securities, Changjiang Securities. CICC Securities, CCB Principal Asset Management. | ||||||
| 2022/4/25 2022/4/27 2022/4/28 | Conference room of the Company | Field survey | Organizations | CHAIRPERSON, SPEAKER, OP CAP, FULLGOAL, Great Wall Fund, Rongtong Fund Management, Chuangfu Business Investment Management, Valuebed Capital, Sinolink Securities, CITIC Securities, NORDEA | Learn about the operation of the Company; no information provided. | http://www.cninfo.com.cn |
| 2022/5/6 | Conference room of the Company | Telephone communication | Organizations | ABERDEEN, BARING, MANULIFE, FULLGOAL, SUN BRIDGE CAPITAL, MIGHTY DIVINE, PINPOINT, OASIS, CITI, BlackRock Asset Management, T. Rowe Price Group, Guosen Securities, Mondrian Investment Partners Ltd, CICC Securities. | Learn about the operation of the Company; no information provided. | http://www.cninfo.com.cn |
| 2022/5/16 2022/5/17 2022/5/18 2022/5/19 | Conference room of the Company | Field survey | Organizations | CICC Asset Management, Greenwoods Asset Management, Teng Yue Partners Master Fund, CICC Securities, Perseverance Asset Management, Yinhua Fund Management, TF Securities, GF Securities. | Learn about the operation of the Company; no information provided. | http://www.cninfo.com.cn |
| 2022/5/23 2022/5/24 2022/5/25 2022/5/26 2022/5/27 | Conference room of the Company | Field survey | Organizations | AEGON-INDUSTRIAL Fund Management, TF Securities; Industrial Securities, HFT Investment Management, CITIC Securities, CITIC Asset Management; Shenwan Hongyuan Securities, Ping An Fund, Dacheng Fund, Baoying Fund, TF Securities, E Fund Management; Penghua Fund; Bank Of Communications Schroder Fund Management; Citibank, TAIKANG, SPRING CAPITAL, OP CAPITAL, AMUNDI, SAMSUNG, OASIS, NIGHTY ONE, PRINCIPAL, ABERDEEN, LAZARD, NEW SILK ROAD;May 26: Lombarda China Fund Management, TF Securities; Lion Fund Management; Hengyue Asset Management, Lingzhan Capital, Shenzhen ZHAOTU Investment and Management Corporation, Guangdong Juzhou Investment, Harvest Fund, TF Securities; China Universal Asset Management; Guotai Asset Management. | Learn about the operation of the Company; no information provided. | http://www.cninfo.com.cn |
| 2022/5/30 2022/5/31 2022/6/1 | Conference room of the Company | Field survey | Organizations | TF Securities, Hua An Fund Management; Huatai Baoxing Fund Management; Penghua Fund; Taikang Asset; Perseverance Asset Management; First State Cinda Fund Management, Baoying Fund. | Learn about the operation of the Company; no information provided. | http://www.cninfo.com.cn |
| 2022/6/14 2022/6/16 | Conference room of the Company | Field survey | Organizations | BlackRock Fund, Fidelity Investments | Learn about the operation of the Company; no information provided. | http://www.cninfo.com.cn |
III. Capital transactions between the listed company and its controlling shareholder andrelated parties
□ Applicable ? Not applicable