LUTHAITEXTILECO.,LTD.
INTERIMREPORT2023
August2023
PartIImportantNotes,TableofContentsandDefinitions
TheBoardofDirectors(orthe“Board”),theSupervisoryCommitteeaswellasthedirectors,supervisorsandseniormanagementofLuThaiTextileCo.,Ltd.(hereinafterreferredtoasthe“Company”)herebyguaranteethefactuality,accuracyandcompletenessofthecontentsofthisReportanditssummary,andshallbejointlyandseverallyliableforanymisrepresentations,misleadingstatementsormaterialomissionstherein.LiuZibin,theCompany’slegalrepresentative,andZhangKeming,headofaccountingaffairsandheadoftheaccountingdepartment(equivalenttoaccountingmanager)herebyguaranteethattheFinancialStatementscarriedinthisReportarefactual,accurateandcomplete.AlltheCompany’sdirectorshaveattendedtheBoardmeetingforthereviewofthisReportanditssummary.TheCompanyissubjecttothedisclosurerequirementsforlistedcompaniesengagingintextileandapparelasstatedinGuidelineNo.3oftheShenzhenStockExchangeforSelf-regulationofListedCompanies—Industry-specificInformationDisclosure.Theinternationalpoliticalandeconomiclandscapeshavebecomecomplicatedsince2023,andglobalinflationarypressurepersists.ThishasplacedChina’seconomyinanincreasinglycomplexandsevereexternalenvironment.Withthefullresumptionofsocioeconomicdevelopment,theStateCouncilandgovernmentsanddepartmentsatalllevelslauncharangeofpoliciestoboostconsumption.Thishascontributedtoagradualrecoveryinmarketdemandandconsistentlygrowingproductionandsupply,presentinganupturninthenationaleconomicrecovery.AccordingtothedatareleasedbytheNationalBureauofStatistics,theretailsalesofconsumergoodsbetweenJanuaryandJune2023totaledRMB22.7588trillion,up8.2%yearonyear.Thisindicatesthat,astheconsumermarketisrecoveringsteadily,itssupportingroleforthetextileandapparelindustryissignificantlyenhanced.Additionally,datafromChinaCustomsshowsthat,inthefirsthalfof2023,China’sexportoftextilesandappareltotaledUSD142.68billion,ayear-on-yeardecreaseof8.8%.Thisiscausedbyinsufficientdemandinoverseasmarketsasaresultoftheweakglobaleconomicrecovery.Fordetails,pleaserefertoPartIIIManagementDiscussionandAnalysis.TheCompanyhasnointerimdividendplan,eitherintheformofcashorstock.ThisReportanditssummaryhavebeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionsshallprevail.
TableofContents
PartIImportantNotes,TableofContentsandDefinitions ...... 2
PartIICorporateInformationandKeyFinancialInformation ...... 6
PartIIIManagementDiscussionandAnalysis ...... 9
PartIVCorporateGovernance ...... 28
PartVEnvironmentalandSocialResponsibility ...... 30
PartVISignificantEvents ...... 34
PartVIIShareChangesandShareholderInformation ...... 41
PartVIIIPreferredShares ...... 51
PartIXBonds ...... 52
PartXFinancialStatements ...... 56
DocumentsAvailableforReference
1.ThefinancialstatementssignedandstampedbytheCompany’slegalrepresentativeandheadofaccountingaffairsandheadoftheaccountingdepartment;and
2.TheoriginalsofalltheCompany’sannouncementsanddocumentsdisclosedtothepublicduringtheReportingPeriodonSecuritiesTimes,ShanghaiSecuritiesNews,ChinaSecuritiesJournalandTaKungPao.
Definitions
| Term | Definition |
| The“Company”,“LTTC”,“Issuer”or“we” | LuThaiTextileCo.,Ltd.anditsconsolidatedsubsidiaries,exceptwherethecontextotherwiserequires |
| TheBoardofDirectors | TheBoardofDirectorsofLuThaiTextileCo.,Ltd. |
| TheSupervisoryCommittee | TheSupervisoryCommitteeofLuThaiTextileCo.,Ltd. |
| CSRC | TheChinaSecuritiesRegulatoryCommission |
| RMB,RMB’0,000 | ExpressedintheChinesecurrencyofRenminbi,expressedintenthousandRenminbi |
| The“CompanyLaw” | The“CompanyLawofthePeople‘sRepublicofChina” |
| The“SecuritiesLaw” | The“SecuritiesLawofthePeople‘sRepublicofChina” |
| The“ReportingPeriod”or“CurrentPeriod” | Theperiodfrom1January2023to30June2023 |
PartIICorporateInformationandKeyFinancialInformationICorporateInformation
| Stockname | LTTC,LTTC-B | Stockcode | 000726,200726 |
| Previousstockname(ifany) | N/A | ||
| Stockexchangeforstocklisting | ShenzhenStockExchange | ||
| CompanynameinChinese | 鲁泰纺织股份有限公司 | ||
| Abbr.(ifany) | 鲁泰纺织 | ||
| CompanynameinEnglish(ifany) | LUTHAITEXTILECO.，LTD | ||
| Abbr.(ifany) | LTTC | ||
| Legalrepresentative | LiuZibin | ||
IIContactInformation
| BoardSecretary | SecuritiesRepresentative | |
| Name | ZhangKeming | ZhengWeiyinandLiKun |
| Address | No.81,SonglingEastRoad,ZichuanDistrict,Zibo,Shandong,P.R.China | No.81,SonglingEastRoad,ZichuanDistrict,Zibo,Shandong,P.R.China |
| Tel. | 0533-5277008 | 0533-5285166 |
| Fax | 0533-5418805 | 0533-5418805 |
| Emailaddress | zhangkeming@lttc.com.cn | wyzheng@lttc.com.cn，likun@lttc.com.cn |
IIIOtherInformation
1.ContactInformationoftheCompany
Indicatebytickmarkwhetheranychangeoccurredtotheregisteredaddress,officeaddressandtheirzipcodes,websiteaddress,emailaddressandothercontactinformationoftheCompanyintheReportingPeriod.
□Applicable?NotapplicableNochangeoccurredtothesaidinformationintheReportingPeriod,whichcanbefoundinthe2022AnnualReport.
2.MediaforInformationDisclosureandPlacewherethisReportisLodged
IndicatebytickmarkwhetheranychangeoccurredtotheinformationdisclosuremediaandtheplaceforlodgingtheCompany’speriodicreportsintheReportingPeriod.
□Applicable?NotapplicableThewebsiteoftheShenzhenStockExchange,mediaandwebsitewheretheCompany’speriodicreportsaredisclosed,aswellastheplaceforlodgingsuchreportsdidnotchangeintheReportingPeriod.Thesaidinformationcanbefoundinthe2022AnnualReport.
3.OtherInformation
IndicatebytickmarkwhetheranychangeoccurredtootherinformationintheReportingPeriod.
□Applicable?NotapplicableIVKeyFinancialInformation
Indicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow.
□Yes?No
| H12023 | H12022 | Change(%) | |
| Operatingrevenue(RMB) | 2,840,491,262.47 | 3,330,294,463.25 | -14.71% |
| Netprofitattributabletothelistedcompany’sshareholders(RMB) | 221,647,998.15 | 393,950,852.46 | -43.74% |
| Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalgainsandlosses(RMB) | 191,809,861.94 | 365,579,229.64 | -47.53% |
| Netcashgeneratedfrom/usedinoperatingactivities(RMB) | 148,610,216.98 | 117,482,408.74 | 26.50% |
| Basicearningspershare(RMB/share) | 0.26 | 0.45 | -42.22% |
| Dilutedearningspershare(RMB/share) | 0.23 | 0.39 | -41.03% |
| Weightedaveragereturnonequity(%) | 2.42% | 4.77% | -2.35% |
| 30June2023 | 31December2022 | Change(%) | |
| Totalassets(RMB) | 13,573,972,109.67 | 13,351,097,602.03 | 1.67% |
| Equityattributabletothelistedcompany’sshareholders(RMB) | 9,256,925,049.09 | 9,014,156,872.71 | 2.69% |
VAccountingDataDifferencesunderChina’sAccountingStandardsforBusinessEnterprises(CAS)andInternationalFinancialReportingStandards(IFRS)andForeignAccountingStandards
1.NetProfitandEquityunderCASandIFRS
□Applicable?NotapplicableNosuchdifferencesfortheReportingPeriod.
2.NetProfitandEquityDifferencesunderCASandForeignAccountingStandards
□Applicable?NotapplicableNosuchdifferencesfortheReportingPeriod.VIExceptionalGainsandLosses
?Applicable□Notapplicable
Unit:RMB
| Item | Amount | Note |
| Gainorlossondisposalofnon-currentassets(inclusiveofimpairmentallowancewrite-offs) | -86,455.19 | |
| Governmentsubsidieschargedtocurrentprofitorloss(exclusiveofgovernmentsubsidiesconsistentlygivenintheCompany’sordinarycourseofbusinessatfixedquotasoramountsaspergovernmentalpoliciesorstandards) | 27,808,339.07 | |
| Gainorlossonfair-valuechangesinheld-for-tradingfinancialassetsandliabilities&incomefromdisposalofheld-for-tradingfinancialassetsandliabilitiesandavailable-for-salefinancialassets(exclusiveoftheeffectiveportionofhedgesthatariseintheCompany’sordinarycourseofbusiness) | 5,660,105.05 | |
| Reversedportionsofimpairmentallowancesforreceivableswhicharetestedindividuallyforimpairment | 2,281,937.13 | |
| Non-operatingincomeandexpenseotherthantheabove | 1,448,586.39 | |
| Less:Incometaxeffects | 6,932,483.87 | |
| Non-controllinginterestseffects(netoftax) | 341,892.37 | |
| Total | 29,838,136.21 |
Particularsaboutotheritemsthatmeetthedefinitionofexceptionalgain/loss:
□Applicable?NotapplicableNosuchcasesfortheReportingPeriod.ExplanationofwhytheCompanyreclassifiesasrecurrentanexceptionalgain/lossitemlistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—ExceptionalGain/LossItems:
□Applicable?NotapplicableNosuchcasesfortheReportingPeriod.
PartIIIManagementDiscussionandAnalysis
IPrincipalActivityoftheCompanyintheReportingPeriodWiththefullresumptionofsocioeconomicdevelopmentsince2023,thedomesticsalesofthetextileindustryhaveshownanupturn,furtherunblockingtheindustrycirculation.However,thesluggishdemandintheoverseasmarkets,complicatedtradeenvironment,andcontinuinghighproductioncostshaveplacedthetextileindustryunderpressureinthefirsthalfoftheyear,especiallyintermsofexport.Thiscanbemanifestedthroughitsmainbusinessindicators,includingproduction,efficiency,andinvestment.Inthefaceofthesechallenges,theCompanyadheredtothe“customer-focused”philosophyandcontinuedtopromotethe“ImproveQualityandEfficiency”and“OverallInternationalization”strategies.Meanwhile,theCompanyensuredorderlymanagementandoperationbyexpandingmarket,adjustingstructureandbuildingcapabilities.FortheReportingPeriod,theCompanyachievedoperatingrevenueofRMB2,840million,anetprofitattributabletotheCompanyastheparentofRMB222million,andanetprofitattributabletotheCompanyastheparentbeforeexceptionalgainsandlossesofRMB192million,respectivelydown14.71%,43.74%and47.53%whencomparedtothesameperiodoflastyear.NochangesoccurredtotheCompany’sprincipaloperations,productsorbusinessmodels,ortheprimaryfactorsdrivingtheCompany’sgrowthintheReportingPeriod.DuringtheReportingPeriod,theCompanywasratedbytheChinaNationalTextileandApparelCouncilasthe“OutstandingInstitutionof2022forTalentDevelopmentinChina’sTextileIndustry”and“ChineseTextileandApparelBrandof2023withCompetitiveEdge”.ItwasalsoawardedbytheShandongTextileandApparelAssociation“SocialResponsibilityContributionAward”.TheCompanymainlyfocusedonthefollowingaspects:
(I)ImproveitsglobalmarketingsystemandcontinuouslyboostitscapabilitiesofmarketexpansionTheCompanyadheredtothe“customer-focused”philosophy,focusedoncustomerdemand,andleverageditsownadvantagesintheindustrialchainandproductR&Danddesigncapabilitiestoboostitsmarketingcapabilitiesandservices.Meanwhile,theCompanycontinuouslyoptimizeditscustomerserviceprocedure,improvedexhibitionplanningandcustomermanagementprocedures,completedthesetupoftheoverseasmarketingteam,andexpandedthefunctionsofitsoverseasoffices.DoingsohelpedtheCompanyprovidecustomerswithmoreprofessionalandefficientmarketingservices,furtherstabilizeitspartnershipwithcustomers,andboostproductcompetitiveness.Moreover,itattachedgreatimportancetotheriskcontrolofinventoryandsalesproceedsduringthemarketinginordertominimizethebusinessrisk.(II)ContinuouslyadvanceR&DinnovationtofurtherconsolidateitscompetitiveedgeDuringtheReportingPeriod,theCompanyadvancedtheresearchonthetechnologicalresearchprojectsattheCompanylevelandreservetechnologyprojectsinanorderlymannerandenhanceditscapabilityofcollaborativeleadershipinfieldsincludingthemarket,marketing,R&D,andproduction.Italsosecuredsignificantadvancesinprojectssuchastheresearchonthewearabilityofregeneratedcellulosefabricandtheprocessingtechnologyforhigh-whitenessknittedfabric.Moreover,theCompanyintensifieditscommunicationandcooperationwithstrategicsuppliers.ItrolledoutnewcategoriesofproductsthroughindependentR&Dandtheintroductionofcellulosicmaterials,withmaterialssuchasSupF!t,EcoF!t,andFlaxF!thavingbeenpromotedandappliedtoeachproductionline.Technologicalexchangeswithhighereducationinstitutesandinstitutions,suchasDonghuaUniversityandtheNationalCenterforNanoscienceandTechnology,wereorganizedbytheCompany,whichdeliveredfourcooperationintentionsregardingtheprogressincutting-edgetechnologies(e.g.greendyeingandfinishingtechnologyandthedevelopmentofintelligenttextileproducts).DuringtheReportingPeriod,theCompanywasgranted34patents,including26onesforinvention.ItalsowontheChinaPatentAward(Silver).Additionally,theCompanyhadthreetechnologicalachievementsassessedbytheChinaNationalTextileandApparelCouncil,includingoneassessedasaninternationallyadvancedachievement.Moreover,theCompanyundertookonenationalkeyR&Dprograminthe“14thFive-YearPlan”period.TheseeffortshavehelpedtheCompanyformthe“inventionpatent-
focused”intellectualpropertydevelopmentmodel.(III)Pushaheadwithits“OverallInternationalization”strategiclayoutandimprovetheefficiencyofresourceconsolidationIntermsoftheoverseasbusinesssegment,byremovingthecapacityconstraintsofbottleneckedprocesses,shorteningthedeliveryperiod,andimprovingthesampledevelopmentcapability,theCompanyfilledinthesteadilyincreasingordersofstrategiccustomers.Whileshorteningthedeliveryperiod,italsobuiltupitsprocessandtechniquereserves,strengtheneditsproductdevelopmentcapabilities,refinedtheGroup’soverseassupplychainsystem,developedmorelocalsuppliersofrawmaterials,re-planedandre-laidouttheproductexhibitionarea,completedthecategoriesoffabricsamples,andvigorouslycontributedtothedevelopmentoftheglobalsupplychainsystemsofmanufacturersanddistributors.Next,theCompanywillthoroughlyexplorethedomesticmarketsatmultiplelevelsandinvolvingmultiplefields,engageinthedomesticandinternationalproduction-demandcycles,andpromotetechnologicalandbusinesspatterninnovationandsupplychainupdates.Itwillalsocoordinatereasonablequantitygrowthandeffectivequalityimprovement.DoingsowillcontributetotheCompany’sachievementofhigh-qualitydevelopment.TheCompanyissubjecttothedisclosurerequirementsforlistedcompaniesengagingintextileandapparelasstatedinGuidelineNo.3oftheShenzhenStockExchangeforSelf-regulationofListedCompanies—Industry-specificInformationDisclosure.Thesluggishdemandintheoverseasmarkets,complicatedtradeenvironment,andcontinuinghighproductioncostshaveplacedthetextileindustryunderpressureinthefirsthalfof2023,especiallyintermsofexport.Thiscanbemanifestedthroughitsmainbusinessindicators,includingproduction,efficiency,andinvestment.Endcustomersarestillstrugglingtoreduceinventories,decreasingthedownstreamdemand.Accordingly,businessesgenerallypresentalowoperatingrateandthusfacehugebusinesspressure.Nevertheless,China’sapparelexportindustryremainscompetitive.Affectedbymultipleunfavorablefactors,suchastheincreasinglyweakdemandintheprincipalmarketsworldwideandsupplychainadjustments,businessesintheindustryarestrugglingtomaintaintheexportscaleofthetextileandapparelindustryandrecoverinanticipationbyexpandingintoemergingmarketsandcreatingnewbusinessmodels.Inthefuture,theymustenhancetheircapabilitiesandseizemarketopportunitiestoactivelyrespondtochallenges.
IICoreCompetitivenessAnalysis
1.TheCompanyhasacomprehensiveverticalindustrialchainandinternationalizedlayout.Itpossessesthewholeindustrialchainintegratingspinning,bleachinganddyeing,neatening,testing,andgarmentmaking,aswellasexcellentqualitycontrolcapabilitiesthroughvariouslinksoftheproductionofhigh-endyarn-dyedfabrics.Inordertoleverageinternationalresources,giveplaytotheadvantageofinternationalizedindustrialdistributionandreinforcetheleadinginternationalstatusinmanufacturingthefabricsforshirts,theCompanyhasputinplaceproductionbases,designagency,andmarketserviceofficesoverseas.
2.TheCompanyhasbetterintegratedmanagementcapabilityandhigh-levelmanagementsystemarchitecture.Since1995,theCompanyhassuccessivelypassedthecertificationofISO9001qualitymanagementsystem,ISO14001environmentalmanagementsystem,ISO45001OccupationHealthSafetyManagementSystem,SA8000SocialResponsibilityManagementSystem,TheWorldwideResponsibleApparelProductionStandard(WRAP),SustainableTextileProduction(STeP),GlobalOrganicTextileStandard(GOTS),GlobalRecycleStandard(GRS),Higg(FEMandFSLM)andChinaNationalAccreditationServiceforConformityAssessment(CNAS),andrealizedtheinternationalization,standardizationandnormalizationofthecorporatemanagement.Inordertomakeoutstandingachievementinitsoperatingmanagement,betterimprovetheCompany’sbusinessperformanceandcapabilities,theCompanyhasintroducedtheGB/T19580CriteriaforPerformanceExcellencestepbystep,setupthe“bigquality”system,promotedthemanagementinnovationandguaranteedthemanagementquality.
3.TheCompanyestablishesitshigh-leveltechnicalcooperationplatformbyvirtueofstrongR&Dcapability.Infact,theCompanyalwaysinsistsontheindependentinnovation,enhancesitstechnicalcooperationwithvariousresearchinstitutes,collegesanduniversities,strategicclientsandimportantsuppliersbyrelyingonvarioustechnicalplatformsincludingthenationalenterprisetechnicalcenter,thenationalindustrialdesigncenter,thenationaldemonstrationbaseforintroducingtalents,thenationalpost-
doctoralscientificresearchstationandShandongProvincialEngineeringTechnologyResearchCenter,dedicatesitselftothecutting-edgetechnicalresearch,andgraduallytransformsfromtechnologyresearchtointegratedproductdevelopment.Besides,theCompanywillalsotransformfromtheovercomingofkeytechnicaldifficultiestothemasteryoftechnicalprinciplesandtheformulationofindustrialstandards,andfromthefocusontechnicalinnovationtothedynamicintegrationofnewtechniqueexplorationwithmodelinnovation,materializethelow-carbon,greenandsustainabledevelopment.
IIICoreBusinessAnalysis
Overview:
FortheReportingPeriod,theCompanyrecordedoperatingrevenueofRMB2,840million(a14.71%year-on-yeardecrease);costofsalesofRMB2,234million(a10.55%year-on-yeardecrease),sellingexpenseofRMB66million(a10.88%year-on-yearincrease),administrativeexpenseofRMB175million(a7.87%year-on-yeardecrease),researchanddevelopmentexpenseofRMB131million(a14.21%year-on-yearincrease),andnetcashgeneratedfromoperatingactivitiesofRMB149million(a26.50%year-on-yearincrease).Year-on-yearchangesinkeyfinancialdata:
Unit:RMB
| H12023 | H12022 | Change(%) | Mainreasonforchange | |
| Operatingrevenue | 2,840,491,262.47 | 3,330,294,463.25 | -14.71% | |
| Costofsales | 2,233,932,367.67 | 2,497,333,041.59 | -10.55% | |
| Sellingexpense | 66,411,247.30 | 59,894,351.04 | 10.88% | |
| Administrativeexpense | 175,308,361.39 | 190,280,143.57 | -7.87% | |
| Financecosts | -57,007,476.34 | -71,933,482.03 | 20.75% | |
| Incometaxexpense | 20,991,415.51 | 67,767,576.50 | -69.02% | DecreasedgrossprofitandR&Dexpensebeingallowedforover-deductioninthecalculationofthetaxableincomeamount |
| R&Dinvestments | 131,290,032.04 | 114,951,241.87 | 14.21% | |
| Netcashgeneratedfrom/usedinoperatingactivities | 148,610,216.98 | 117,482,408.74 | 26.50% | |
| Netcashgeneratedfrom/usedininvestingactivities | -751,734,011.96 | -522,296,795.23 | -43.93% | Increasedpaymentsforinvestments |
| Netcashgeneratedfrom/usedinfinancingactivities | 51,586,090.91 | 136,772,256.21 | -62.28% | Decreasedborrowingsreceived |
| Netincreaseincashandcashequivalents | -533,029,486.11 | -240,373,645.82 | -121.75% |
SignificantchangestotheprofitstructureorsourcesoftheCompanyintheReportingPeriod:
□Applicable?NotapplicableNosuchchangesintheReportingPeriod.Breakdownofoperatingrevenue:
Unit:RMB
| H12023 | H12022 | Change(%) | ||
| Operatingrevenue | As%oftotaloperatingrevenue(%) | Operatingrevenue | As%oftotaloperatingrevenue(%) | |
| Total | 2,840,491,262.47 | 100% | 3,330,294,463.25 | 100% | -14.71% |
| Byoperatingdivision | |||||
| Textileandapparel | 2,634,843,253.53 | 92.76% | 3,071,908,914.09 | 92.24% | -14.23% |
| Electricityandsteam | 120,527,005.15 | 4.24% | 120,886,686.18 | 3.63% | -0.30% |
| Others | 85,121,003.79 | 3.00% | 137,498,862.98 | 4.13% | -38.09% |
| Byproductcategory | |||||
| Fabricproducts | 1,932,688,936.22 | 68.04% | 2,439,097,155.42 | 73.24% | -20.76% |
| Shirts | 702,154,317.31 | 24.72% | 632,811,758.67 | 19.00% | 10.96% |
| Electricityandsteam | 120,527,005.15 | 4.24% | 120,886,686.18 | 3.63% | -0.30% |
| Others | 85,121,003.79 | 3.00% | 137,498,862.98 | 4.13% | -38.09% |
| Byoperatingsegment | |||||
| HongKong | 117,626,748.26 | 4.14% | 94,978,095.81 | 2.85% | 23.85% |
| JapanAndSouthKorea | 189,783,688.08 | 6.68% | 158,339,499.64 | 4.75% | 19.86% |
| SoutheastAsia | 825,289,532.25 | 29.05% | 1,142,731,135.42 | 34.31% | -27.78% |
| EuropeandAmerica | 488,539,769.45 | 17.20% | 554,392,368.30 | 16.65% | -11.88% |
| Others | 178,285,941.34 | 6.28% | 234,122,756.86 | 7.03% | -23.85% |
| MainlandChina | 1,040,965,583.09 | 36.65% | 1,145,730,607.22 | 34.41% | -9.14% |
Operatingdivision,productcategoryoroperatingsegmentcontributingover10%ofoperatingrevenueoroperatingprofit:
□Applicable?NotapplicableTheCompanyissubjecttothedisclosurerequirementsforlistedcompaniesengagingintextileandapparelasstatedinGuidelineNo.3oftheShenzhenStockExchangeforSelf-regulationofListedCompanies—Industry-specificInformationDisclosure.
Unit:RMB
| Operatingrevenue | Costofsales | Grossprofitmargin | YoYchangeinoperatingrevenue(%) | YoYchangeincostofsales(%) | YoYchangeingrossprofitmargin(%) | |
| Byoperatingdivision | ||||||
| Textileandapparel | 2,634,843,253.53 | 2,032,231,736.66 | 22.87% | -14.23% | -8.83% | -4.57% |
| Byproductcategory | ||||||
| Fabricproducts | 1,932,688,936.22 | 1,502,587,547.17 | 22.25% | -20.76% | -14.01% | -6.11% |
| Shirts | 702,154,317.31 | 529,644,189.49 | 24.57% | 10.96% | 9.95% | 0.69% |
| Byoperatingsegment | ||||||
| SoutheastAsia | 825,289,532.25 | 640,898,239.26 | 22.34% | -27.78% | -21.83% | -5.91% |
| EuropeandAmerica | 488,539,769.45 | 371,547,663.95 | 23.95% | -11.88% | -9.70% | -1.83% |
| MainlandChina | 1,040,965,583.09 | 847,868,522.29 | 18.55% | -9.14% | -6.78% | -2.07% |
CorebusinessdataoftheprioryearrestatedaccordingtothechangedstatisticalcaliberfortheReportingPeriod:
□Applicable?NotapplicablePhysicalstoresoftheCompany:
□Yes?NoNewphysicalstores:
□Yes?NoIndicatebytickmarkwhethertheCompanydisclosesitstopfivefranchisedstores.
□Yes?NoIVOtherInformationRequiredbyInformationDisclosureGuideforCompaniesEngagedinTextileandGarmentServices
1.CapacityTheCompany'sowncapacity
| IndustryClassification | Item | H12023 | H12022 |
| Fabrics | Totalcapacity(fabrics)(10,000meters) | 14,872.50 | 14,715.00 |
| Rateofcapacityutilization | 70% | 87% | |
| Plantsunderconstruction | TheCompany'sconvertiblebondfundraisingprojects:The"FunctionalFabricIntelligentEco-parkProject(PhaseI)"withanannualcapacityof35millionmetersofhigh-gradefunctionalfabricsandthe"OverseasProductLineProjectofHigh-gradeFabrics(PhaseI)"wereinprogress. | TheCompany'sconvertiblebondfundraisingprojects:The"FunctionalFabricIntelligentEco-parkProject(PhaseI)"withanannualcapacityof35millionmetersofhigh-gradefunctionalfabricsandthe"OverseasProductLineProjectofHigh-gradeFabrics(PhaseI)"wereinprogress. | |
| Textileandapparel | Totalcapacity(apparel)(10,000pieces) | 1,115.00 | 1,015.00 |
| Rateofcapacityutilization | 84% | 85% | |
| Plantsunderconstruction |
Year-on-yearchangeintherateofcapacityutilizationabove10%?Yes□NoCapacityutilizationdecreasedasaresultofthereducedoverseasdemandforfabric.Overseascapacity?Yes□No
| IndustryClassification | Item | Domestic | Overseas |
| Fabrics | Percentageofcapacity | 80% | 20% |
| Capacitylayout | MainlyinShandongProvince | MainlyinVietnam | |
| Rateofcapacityutilization | 68% | 77% | |
| Apparel | Percentageofcapacity | 40% | 60% |
| Capacitylayout | MainlyinShandongProvince | MainlyinVietnam,Cambodia,andMyanmar |
| Rateofcapacityutilization | 86% | 83% |
TheCompany’sexpansionplanondevelopingoverseasproductioncapacityTheCompanyhasinvestedinaproductionsiteinSoutheastAsia,whichiscurrentlyintheinfrastructureconstructionphase.
2.SalesmodelandchannelsProductsaleschannelsandoperationmethodsa.SalesmodelTheCompanyadoptedtheorder-basedsalesmodel.Withtheself-ownedtrademark"Luthai"foritsfabricsales,itprovidedcustomerswithdevelopmentanddesignplansbasedoncustomerneeds,fabricsandpatternsleadingthemarket,fashionandtechnology,functionsandenvironmentalprotection.Shirtsweremainlymadeaccordingtotheordersofcustomersathomeandabroad,andsoldbybrandowners.TheCompany'sself-ownedbrandwasoperatedthroughself-ownedexclusiveshopssuchasLuThaiExhibitionandSalesPavilion,countersofaffiliatedstoresinmallsande-networkingmarketing.Meanwhile,theCompanycouldprovidecustomerswithhigh-endcustomizedshirtsandcustomizedbusinessweartomeetthemarketdemandofthehigh-endserviceindustry.b.SaleschannelsDirectsales:TheheadquartersoftheCompanycarriedoutdirectinvestmentsandoperation,andoperatedandmanagedabrandattheheadquartersorbysettingupabranchcompanyinotherregionstoconcludetransactionswithcustomersoffline.Onlinesales:Throughself-developedplatformsandlargethird-partyonlineshoppingplatforms,theCompanyconcludedtransactionswithcustomersontheInternetanddeliveredgoodstocustomersbyexpressdeliveryservices.
Unit:RMB
| Saleschannels | Operatingrevenue | Costofsales | Grossprofitmargin | YoYchangeinoperatingrevenue | YoYchangeincostofsales | YoYchangeingrossprofitmargin |
| Onlinesales | 1,962,704.70 | 803,334.38 | 59.07% | 11.74% | 17.02% | -1.85% |
| Directsales | 1,938,469,930.72 | 1,504,273,871.42 | 22.40% | -20.61% | -13.95% | -6.01% |
| OEM/ODM | 694,410,618.11 | 527,154,530.86 | 24.09% | 10.49% | 9.74% | 0.53% |
3.Sellingexpenseandbreakdownthereof
Unit:RMB
| Item | H12023 | H12022 | Amountofchange | percentageofchange | Note |
| Salaries | 33,546,461.28 | 34,521,119.07 | -974,657.79 | -2.82% | |
| Marketingexpense | 16,171,875.20 | 15,812,366.09 | 359,509.11 | 2.27% | |
| Depreciationcosts | 3,510,556.38 | 3,352,693.87 | 157,862.51 | 4.71% | |
| Businesstravelexpenses | 3,906,192.17 | 411,115.04 | 3,495,077.13 | 850.15% | Increasedbusinesstripstoenhancecommunicationwithcustomers |
| Officecosts | 7,315,422.95 | 4,126,339.40 | 3,189,083.55 | 77.29% | Increasedcostsofseasonalmaintenanceoftheheatingnetwork |
| Others | 1,960,739.32 | 1,670,717.57 | 290,021.75 | 17.36% |
| Total | 66,411,247.30 | 59,894,351.04 | 6,516,896.26 | 10.88% |
4.Franchiseanddistribution
Franchiseesanddistributorsrecordedmorethan30%ofsalesrevenue
□Yes?No
5.Onlinesales
Onlinesalesrecordedmorethan30%ofsalesrevenue
□Yes?NoSelf-developedsalesplatforms?Yes□No
| Startofoperation | 30March2009 |
| Numberofregisteredusers | 155,000 |
| Averagenumberofactivemonthlyusers(AMU) | 5,000 |
| Returnrateofmainbrands | 3.00% |
| Returnrateofmaintypes | 3.00% |
Cooperationwiththird-partysalesplatforms?Yes□NoOnlinesaleschannelsopenedorclosedbytheCompany
□Applicable?NotapplicableImpactontheCompanyinthecurrentperiodandsubsequentperiods:
Notapplicable.
6.AgencyoperationmodelAgencyoperationmodelinvolved
□Yes?No
7.Inventory
Inventory
| Mainproducts | Daysofturnoverofinventories | Quantityofinventory | Inventoryage | Year-on-yearchangeininventorybalance | Reason |
| Fabrics(10,000meters) | 102 | 2,898.89 | Within1year | -35.38% | Acceleratedde-stocking |
| Fabrics(10,000meters) | 748.13 | Over1year | -23.04% | Acceleratedde-stocking | |
| Shirts(10,000 | 30 | 97.98 | Within1 | 2.49% |
| pieces) | year | ||||
| Shirts(10,000pieces) | 14.08 | Over1year | -34.66% | Acceleratedde-stocking |
Reservesforfallingpricesofinventory
| Item | 30June2023 | ||
| Grossamount | Fallingpricereservesorprovisionforimpairmentoncontractperformancecost | Carryingamount | |
| Rawmaterials | 1,054,147,051.45 | 55,397,065.04 | 998,749,986.41 |
| Goodsinprocess | 529,340,419.70 | 15,058,185.71 | 514,282,233.99 |
| Productsonhand | 885,867,404.34 | 193,427,654.40 | 692,439,749.94 |
| Commissionedproducts | 17,371,088.14 | - | 17,371,088.14 |
| Materialsintransit | - | - | - |
| Total | 2,486,725,963.63 | 263,882,905.15 | 2,222,843,058.48 |
Inventoryinformationofretailchannelssuchasfranchisedstoresordistributors:
Notapplicable.
8.Brandbuilding
Productionandsalesofbrandclothing,apparelandhometextileproducts?Yes□NoSelf-ownedbrands
| Brandname | Trademarkname | Mainproducttypes | Characteristics | Targetconsumergroup | Pricezoneofmainproducts | Mainsalesareas | Citylevels |
| LTGRFF | LTGRFF | Shirtsandsuits | Classicbusinessattire | Businesspeople | RMB500-3000 | EastChina,SouthChinaandSouthwestChina | Provincialcapitalcitiesandotherprefecture-levelcities |
Trademarkownershipdisputes
□Applicable?Notapplicable
9.Others
Engagedinbusinessrelatedtoappareldesign
□Yes?NoWhethertheCompanyheldmeetingsfortheplacementoforders
□Yes?No
VAnalysisofNon-CoreBusinesses
?Applicable□Notapplicable
Unit:RMB
| Amount | As%oftotalprofit | Source/Reason | Recurrentornot | |
| Returnoninvestment | 46,798,662.00 | 20.28% | Investmentincomefromthedisposalofheld-for-tradingfinancialassets | Not |
| Gain/lossonchangesinfairvalue | -42,471,705.81 | -18.41% | Lossonchangesinfairvalueofheld-for-tradingfinancialassets | Not |
| Assetimpairments | -75,665,553.95 | -32.79% | Inventoryvaluationallowances | Not |
| Non-operatingincome | 4,231,250.89 | 1.83% | Incomeofnon-operatingcompensation,etc | Not |
| Non-operatingexpense | 2,464,360.53 | 1.07% | Non-operatingdonations,etc. | Not |
VIAnalysisofAssetsandLiabilities
1.SignificantChangesinAssetComposition
Unit:RMB
| 30June2023 | 31December2022 | Changeinpercentage(%) | Reasonforanysignificantchange | |||
| Amount | As%oftotalassets | Amount | As%oftotalassets | |||
| Monetaryassets | 1,551,443,291.97 | 11.43% | 2,067,768,253.97 | 15.49% | -4.06% | |
| Accountsreceivable | 534,155,829.19 | 3.94% | 660,427,526.19 | 4.95% | -1.01% | |
| Inventories | 2,222,843,058.48 | 16.38% | 2,107,849,708.33 | 15.79% | 0.59% | |
| Investmentproperty | 20,010,251.80 | 0.15% | 20,460,935.21 | 0.15% | 0.00% | |
| Long-termequityinvestments | 182,835,476.83 | 1.35% | 184,168,625.69 | 1.38% | -0.03% | |
| Fixedassets | 5,686,991,158.97 | 41.90% | 5,807,847,850.67 | 43.50% | -1.60% | |
| Constructioninprogress | 538,603,980.88 | 3.97% | 199,943,501.73 | 1.50% | 2.47% | |
| Right-of-useassets | 487,341,555.12 | 3.59% | 481,420,505.31 | 3.61% | -0.02% | |
| Short-termborrowings | 527,384,198.32 | 3.89% | 518,946,415.96 | 3.89% | 0.00% | |
| Contractliabilities | 183,455,240.54 | 1.35% | 206,879,672.53 | 1.55% | -0.20% | |
| Long-termborrowings | 164,369,828.94 | 1.21% | 186,431,096.24 | 1.40% | -0.19% | |
| Leaseliabilities | 97,740,959.65 | 0.72% | 98,501,303.83 | 0.74% | -0.02% | |
2.MajorAssetsOverseas
?Applicable□Notapplicable
| Asset | Source | Assetvalue(RMB) | Location | Managementmodel | Controlmeasurestoprotectassetsafety | Returngenerated(RMB) | As%oftheCompany’sequity | Materialimpairmentrisk(yes/no) |
| HongKongproject | Incorporated | 217,137,052.63 | HongKong | Marketing | MainmanagementpersonnelsentbytheCompanyastheparent | 6,264,569.51 | 2.25% | No |
| Americaproject | Incorporated | 900,857.40 | NewYork | Marketing | Mainmanagementpersonnelsentby | -740,116.24 | 0.01% | No |
| theCompanyastheparent | ||||||||
| Cambodiaproject | Incorporated | 213,812,798.67 | SvayRieng | Manufacturing | MainmanagementpersonnelsentbytheCompanyastheparent | 5,406,050.15 | 2.22% | No |
| Myanmarproject | Incorporated | 118,957,902.84 | Rangoon | Manufacturing | MainmanagementpersonnelsentbytheCompanyastheparent | 14,178,564.56 | 1.23% | No |
| Vietnamproject | Incorporated | 3,655,024,262.33 | Vietnam | Manufacturing | MainmanagementpersonnelsentbytheCompanyastheparent | 54,418,516.33 | 37.92% | No |
| Singaporeproject | Incorporated | 1,364,033,246.86 | Singapore | Investment | MainmanagementpersonnelsentbytheCompanyastheparent | 44,201,578.04 | 14.15% | No |
3.AssetsandLiabilitiesatFairValue
?Applicable□Notapplicable
Unit:RMB
| Item | Beginningamount | Gain/lossonfair-valuechangesintheReportingPeriod | Cumulativefair-valuechangeschargedtoequity | ImpairmentallowancefortheReportingPeriod | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Otherchange | Endingamount |
| Financialassets | ||||||||
| 1.Held-for-tradingfinancialassets(excludingderivativefinancialassets) | 239,522,650.65 | -21,296,535.04 | 515,020,415.34 | 80,005,962.14 | 248,030,000.00 | 901,270,568.81 | ||
| 2.Derivativefinancialassets | 28,172,508.83 | -10,603,652.37 | 17,568,856.46 | |||||
| 5.Othernon-currentfinancialassets | 337,110,000.00 | -248,030,000.00 | 89,080,000.00 | |||||
| Subtotaloffinancialassets | 604,805,159.48 | -31,900,187.41 | 515,020,415.34 | 80,005,962.14 | 1,007,919,425.27 | |||
| Others | 11,208,304.78 | -197,321.06 | 13,085,402.23 | 24,096,385.95 | ||||
| Totaloftheabove | 616,013,464.26 | -31,900,187.41 | -197,321.06 | 515,020,415.34 | 80,005,962.14 | 13,085,402.23 | 1,032,015,811.22 | |
| Financialliabilities | 4,276,929.70 | -10,571,518.40 | 14,848,448.10 |
Contentofotherchange:
Changesinaccountsreceivablefinancing.SignificantchangestothemeasurementattributesofthemajorassetsintheReportingPeriod:
□Yes?No
4.RestrictedAssetRightsasatthePeriod-EndFordetails,seePartX.VII.63.AssetswithrestrictedownershipandusingrightinthisReport.
VIIInvestmentsMade
1.TotalInvestmentAmount
□Applicable?Notapplicable
2.MajorEquityInvestmentsMadeintheReportingPeriod
□Applicable?Notapplicable
3.MajorNon-EquityInvestmentsOngoingintheReportingPeriod
□Applicable?Notapplicable
4.FinancialInvestments
(1)SecuritiesInvestments
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
(2)InvestmentsinDerivativeFinancialInstruments?Applicable□Notapplicable
1)DerivativeInvestmentsforHedgingPurposesduringtheReportingPeriod?Applicable□Notapplicable
Unit:RMB'0,000
| Typeofderivative | Initialinvestmentamount | Gain/lossonfair-valuechangesintheReportingPeriod | Cumulativefair-valuechangesrecordedinequity | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Endinginvestmentamount | ProportionofclosinginvestmentamountintheCompany’sendingnetassets |
| Foreignexchangeoption | 256,788.86 | -2,924.38 | 0.00 | 108,632.36 | 138,025.16 | 118,763.7 | 12.32% |
| Total | 256,788.86 | -2,924.38 | 0.00 | 108,632.36 | 138,025.16 | 118,763.7 | 12.32% |
| WhethersignificantchangesoccurredtotheCompany’saccountingpolicyand | Nosignificantchanges | ||||||
| specificaccountingprinciplesofderivativesintheReportingPeriodcomparedtothepreviousReportingPeriod | |
| Actualgain/lossintheReportingPeriod | 1.Asof30June2023,theCompanyheld23unduefinancialderivativescontracts,totalingUSD185million,allofwhichwereforexoptioncontracts.2.FromJanuarytoJune2023,thetotalamountofallduefinancialderivativesoftheCompanywasequivalenttoUSD207millionwhichwereallimplementedbasedoncontracts,generatinggainsofRMB16.0054million. |
| Effectivenessofhedges | TheCompanyconductsforeignexchange(FX)derivativetransactionswiththeintentionofhedging.Specifically,thebusinessiscarriedouttofixcosts,avoidexchangeraterisksandimproveresistanceagainstFXratefluctuations.Asaresult,theCompanyhasgainedbettercapabilitiesofavoidingandpreventingtherisksofFXratefluctuations,andthefinancialrobustnessoftheCompanyhasbeenenhanced. |
| Capitalsourceforderivativeinvestment | TheCompany’sownmoney |
| AnalysisonrisksandcontrolmeasuresofderivativeproductsheldintheReportingPeriod(includingbutnotlimitedtomarketrisk,liquidityrisk,creditrisk,operationrisk,lawrisk,etc.) | TheCompanyconductedderivativesproductstransactioninorderforhedging.Andtheforwardsettlementhedgingwasoperatedbyinstallments,withtherelevantamountnotmorethantheplannedderivativesproductstransactions.Andallderivativesproductstransactionwaszero-deposit.Meanwhile,theCompanyhadacompleteriskcontrolsystemforsufficientanalysisandpreventionofpossibleriskssuchasmarketrisk,liquidityriskandcreditrisk,operationriskandriskoflawsandregulation.1.Marketrisk:whentheinternationalanddomesticeconomicsituationschange,thecorrespondingchangesinexchangeratesandinterestratesmayhaveanadverseimpactonthefinancialderivativestransactionsoftheCompany.Precautionarymeasurestobetakeninclude:theCompanychoosesrisk-controlledfinancialderivativetoolswithsimplestructureandgoodliquiditytocarryoutthehedgingbusiness,strictlycontrolsthescaleoffinancialderivativestradingbystagedoperations,andadjuststhestrategyaccordingtomarketchangesinatimelymanner.2.Liquidityriskandcreditrisk:acreditriskarisingfromfailureofthecontractuallydueCompanyorcounterpartyinperformingthecontractduetoliquidityorfactorsotherthanliquidity.Precautionarymeasurestobetakeninclude:theCompanydeterminestheupperlimitofderivativestransactionamountsaccordingtoproductionandoperationscaleaswellasforeignexchangeincome,andconductsoperationsbystageaccordingtothebudgetoffuturecollectionsanddisbursement.Thederivativetradesarefreeofguaranteedepositandcanstillbeguaranteedinperformanceafterthecontractexpiresbymeansofextensionandbalancesettlementetc.topreventtheCompanyfromcreditdamagesduetolackofliquidity.TheCompanyselectsfinancialinstitutionswithstrongcapabilityandgoodreputationasacounterpartyandsignsstandardderivativetradingcontractstostrictlycontrolcreditriskofthecounterparty.3.Operationrisk:Thederivativeshadhighspecialtyandcomplexity,sointernaloperationprocedures,staffsandexternaleventswouldmaketheCompanytoundertakerisksduringthetransaction.Riskcontrolmeasures:TheCompanypromulgatedstrictauthorizationandapprovalsystemandperfectregulatorymechanism,fixedtheoperationproceduresandapprovalproceduressystemtoconductderivativeproductstransaction,implementedstrictauthorizationandpostchecksandbalancessystem,meanwhile,ithelpedthemestablisharisk-neutralawarenessofexchangerateandimprovedtheoverallqualityofrelevantpersonnelthroughstrengtheningtheprofessionalethicseducationandbusinesstrainingforthem.Besides,itestablishedtheSystemofReportingtheAbnormalSituationTimelysoastoensuretolowertheoperationriskstothemaximum.4.Riskoflawsandregulation:TheCompanyconductedderivativesproductstransactioninstrictaccordancewithrelevantlawsandrules.Iftherewerenostandardoperationproceduresandstrictapprovalprocedures,itwaseasytocausecompliantandregulatoryrisksexistinginthevalidityandfeasibilityofcontract,commitmentsandotherlegaldocumentssigned.Riskcontrolmeasures:TheCompanycarefullystudiedandmasteredlaws,regulationsandpoliciesrelevanttoderivativeproductstransaction,formulatedinternalcontrolrulesfortheforwardsettlementhedgingbusiness,standardizedtheoperationprocedures.Andstrengthenedthecompliantexaminationonderivativeproductstransactionbusiness.TheCompanyconductedderivativetransactionbusinessaccordingtotherelevantapprovalprocedure,whichwasinlinewithrelevantlaws,regulations,theCompany’sArticlesofAssociation,theManagementRulesforDerivativeTransactionsofLuThai,theProposalonPlanforDerivativeTransactionofLuThaiTextileCo.,Ltd.approvedatthe33rdMeetingofthe9thBoardofDirectors,andperformedrelevantinformationdisclosureresponsibilities. |
| Changesofmarketpricesorfairvalues | InaccordancewiththerelevantprovisionsandguidelinesoftheAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstrumentsandtheAccountingStandardsforBusinessEnterprisesNo.37-PresentationofFinancialInstrumentsissuedbytheMinistryofFinance,theCompanytook |
| intheReportingPeriodoftheinvestedderivatives.Andtheanalysisonthefairvalueofthederivativesshouldincludethespecificusemethodsandtherelevantassumptionsandparameters. | therelevantaccountingmeasuresforitsbusinessofFXderivativetransactionstoreflecttherelevantitemsinthebalancesheetandtheincomestatement.DuringtheReportingPeriod,theCompanydeterminedthefairvalueofFXoptionsbasedonthebank’scorrespondingquotationsattheendoftheperiod. |
| Lawsuit(ifapplicable) | N/A |
| Disclosuredateofboardofdirectorsannouncementonapprovalofderivativeinvestment(ifany) | 25May2022 |
| Disclosuredateofgeneralmeetingannouncementonapprovalofderivativeinvestment(ifany) | |
| SpecificopinionfromindependentdirectorsontheCompany’sderivativesinvestmentandriskcontrol | IndependentdirectorsZhouZhiji,QuDongmei,PengYanli,andQuanYuhuahaveissuedthefollowingprofessionaladviceontheCompany'sderivativetransactionbusiness:WebelievethattheCompany'sforeignexchangederivativetransactionbusinessisperformedontheconditionofensuringnormaloperations.Transactionsusingitsownfundsarebeneficialtoavoidingtheriskofexchangeratefluctuations,andareaneffectivetooltohedgeexchangeraterisk.Bystrengtheninginternalcontrol,implementingstop-lossandriskpreventionmeasures,theCompanycanimproveitsabilitytoresistexchangeratefluctuationsandimproveitsmanagementlevel.ThederivativetransactionplanproposedbytheBoardofDirectorsisfeasible,necessary,andtherisksaremanageable.ThereisnodamagetotheinterestsoftheCompanyandalltheshareholders. |
2)DerivativeInvestmentsforSpeculativePurposesduringtheReportingPeriod
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
5.UseofFundsRaised
?Applicable□Notapplicable
(1)OverallUseofFundsRaised?Applicable□Notapplicable
Unit:RMB’0,000
| Raisingyear | Raisingmanner | Totalofraisedcapital | Totalofraisedcapitalusedinthisperiod | Cumulativeamountofraisedcapitalused | Totalofraisedcapitalwhichpurposeischangedinthereportperiod | Cumulativeamountofraisedcapitalwhichpurposeischanged | Ratioofcumulativeamountwhichpurposeischanged | Totalofraisedcapitalunused | Purposeanddirectionofraisedcapitalunused | Amountofraisedcapitalunusedfortwoyears |
| 2020 | Convertiblebonds | 138,800 | 20,592.53 | 112,546.59 | 0 | 25,000 | 18.01% | 31,421.81 | By30June2023,RMB21.3881millionintheunusedraisedcapitalwasdepositedintheraisedcapitalaccount,andRMB292.83millionwasusedforcashmanagement. | 0 |
| Total | -- | 138,800 | 20,592.53 | 112,546.59 | 0 | 25,000 | 18.01% | 31,421.81 | -- | 0 |
| Generalusesituationofraisedcapital | ||||||||||
| (I)AmountofactualraisedcapitalandarrivaldateUponapprovalbyChinaSecuritiesRegulatoryCommissioninthedocument“ZJXK[2020]299”,theCompanypublicallyissued14,000,000convertiblebondson9April2020atparvalueRMB100,theissuedamountwasRMB1.4billion,andtheCompanyactuallyreceivedtheamountofraisedcapitalRMB1.388billionafterdeductedtheunderwritingfeeRMB12million.TheaboveamountwasremittedincashinRMB.Afterdeductedlegalfee,accountantfee,creditratingfee,informationdisclosurefee,issuingcommissionandothercostsRMB2.54millionintotalfromtheaboveactuallyraisedcapital,thenetamountofraisedcapitalwasRMB1385.46million,whichenteredtheaccounton15April2020,andGrantThorntonInternationalLtd(SpecialGeneralPartnership)issuedthecapitalverificationreportwithreferenceNo.GrantThorntonVerification[2020]371ZC0090foritafterverification.(II)UsesituationandbalanceofraisedcapitalAsat30June2023,theCompanydirectlyinvestedRMB1,125.4659millionintotalfromtheraisedcapitalforitscapitalraisingprojects.TheunusedamountwasRMB314.2181million(includingthenetincomeofRMB50.8317millionfrominterestincomedeductedhandlingcharge). | ||||||||||
(2)CommitmentsonProjectswithFundsRaised?Applicable□Notapplicable
Unit:RMB’0,000
| Committedinvestmentprojectsandusedirectionofoverraisedcapital | Whethertheprojectsarechanged(includingpartiallychangedprojects) | Totalofcommittedinvestmentofraisedcapital | Totalinvestmentaftermodification(1) | Amountinvestedinthisreportperiod | Cumulativeinvestmentamountbytheendofperiod(2) | Investmentprogressbytheendofperiod(3)＝(2)/(1) | Datewhentheprojectreachedtheintendedavailablestatus | Benefitrealizedinthisreportperiod | Whetherreachedtheexpectedbenefit | Whetherprojectfeasibilitychangedsignificantly |
| Committedinvestmentprojects | ||||||||||
| 1.Functionalfabricsmarteco-park | No | 85,000 | 85,000 | 901.08 | 58,341.02 | 68.64% | 31December2024 | 0 | N/A | No |
| project(Phase1) | ||||||||||
| 2.Constructionofoverseashigh-endfabricproductlineproject(PhaseI) | Yes | 25,000 | 25,000 | 19,691.45 | 25,399.98 | 101.60% | 31December2024 | 0 | N/A | No |
| 3.Supplementworkingcapital | No | 28,800 | 28,800 | 28,805.59 | 100.02% | 0 | N/A | No | ||
| Subtotalofcommittedinvestmentprojects | -- | 138,800 | 138,800 | 20,592.53 | 112,546.59 | -- | -- | 0 | -- | -- |
| Usedirectionofoverraisedcapital | ||||||||||
| N/A | ||||||||||
| Repaymentofbankloans(ifany) | -- | 0 | 0 | 0 | 0 | 0.00% | -- | -- | -- | -- |
| Supplementworkingcapital(ifany) | -- | 0 | 0 | 0 | 0 | 0.00% | -- | -- | -- | -- |
| Subtotalofusedirectorofoverraisedcapital | -- | 0 | 0 | 0 | 0 | -- | -- | -- | -- | |
| Total | -- | 138,800 | 138,800 | 20,592.53 | 112,546.59 | -- | -- | 0 | -- | -- |
| Explainprojectbyprojectsituationandreasonsthatitdidnotreachtheplannedprogressorexpectedreturn(includingreasonforinputting“N/A”for“Whetherreachedtheexpectedbenefit”) | Duetoobjectivefactorssuchassocio-economicandmacro-environmentalfactors,theconstructionprocessofthefunctionalfabricsmarteco-parkproject(Phase1)hasbeenaffectedtoacertainextentintermsoftheprocurementofequipmentandinputofpersonnel,etc.,anditisexpectedtobepostponeduntilDecember2024tobereadyforitsintendeduse. | |||||||||
| Noteforsignificantchangeofprojectfeasibility | N/A | |||||||||
| Amount,purposeanduseprogress | N/A | |||||||||
| ofoverraisedcapital | |
| Changeofimplementationsiteofcapitalraisingproject | N/A |
| Adjustmentofimplementationmodeofcapitalraisingproject | N/A |
| Advanceinvestmentanddisplacementofcapitalraisingproject | Applicable |
| By30April2020,thetotalamountofdisplacedcapitalwasRMB191.4288million,includingtheamountRMB189.8388millioninvestedintheprojectwiththeself-raisedcapitaloftheCompanyinadvance,andpaymentofissuingcostRMB1.59millionwithitsself-raisedcapital. | |
| Temporarysupplementtoworkingcapitalwithunusedraisedcapital | N/A |
| Balanceofraisedcapitalafterimplementofprojectandrelevantreasons | N/A |
| Purposeandusedirectionofunusedraisedcapital | By30June2023,RMB21.3881millionintheunusedraisedcapitalwasdepositedintheraisedcapitalaccount,andRMB292.83millionwasusedforcashmanagement. |
| Problemsexistinginuseandinformationdisclosureofraisedcapitalorothersituation | None |
(3)ChangesinProjectswithFundsRaised?Applicable□Notapplicable
Unit:RMB’0,000
| Itemsafterchanges | Correspondingoriginalcommitteditems | Amountofplannedfundsinvested | ActualinvestmentamountintheReporting | Accumulativeinvestmentamountasthe | Investmentscheduleastheperiod- | Dateofreachingintendeduseoftheproject | RealizedincomeintheReportingPeriod | Whetherreachedanticipatedincome | Whetheroccurredsignificantchangesinproject |
| afterchanges(1) | Period | period-end(2) | end(3)=(2)/(1) | feasibility | |||||
| Constructionofoverseashigh-endfabricproductionlineproject(PhaseI) | High-endprintinganddyeingfabricproductionlineproject | 25,000 | 19,691.45 | 25,399.98 | 101.60% | 31December2024 | 0 | N/A | No |
| Total | -- | 25,000 | 19,691.45 | 25,399.98 | -- | -- | 0 | -- | -- |
| Notesofreasonsforchanges,decision-makingproceduresandinformationdisclosure(byspecificitems) | InaccordancewiththeCompany'sglobalstrategiclayoutandmarketdemand,theCompanyplannedtoadjustitscapacitystructure.On9June2022,thesecondextraordinarygeneralmeetingandthefirstbondholders'meetingdeliberatedandadoptedtheProposalonChangingthePurposeofPartialRaisedCapitalUnused.Theaimwastoterminatethe"High-endprintinganddyeingfabricproductionlineproject"andleveragetheraisedcapitalofthisprojectofRMB250millionforconstructionofoverseashigh-endfabricproductionlineproject(PhaseI),disclosedon10June2022onthecninfowebsite("www.cninfo.com.cn"). | ||||||||
| Conditionandreasonfornotreachingthescheduleandanticipatedincome(byspecificitems) | N/A | ||||||||
| Notesofconditionofsignificantchangesoccurredinprojectfeasibilityafterchanges | N/A | ||||||||
VIIISaleofMajorAssetsandEquityInterests
1.SaleofMajorAssets
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
2.SaleofMajorEquityInterests
□Applicable?NotapplicableIXMajorSubsidiaries
?Applicable□NotapplicableMajorfully/majority-ownedsubsidiariesandthoseminority-ownedsubsidiarieswithanover10%effectontheCompany’snetprofit:
Unit:RMB
| Name | RelationshipwiththeCompany | Principalactivity | Registeredcapital | Totalassets | Netassets | Operatingrevenue | Operatingprofit | Netprofit |
| LufengWeaving&Dyei | Subsidiary | Fabric | 706160000 | 1,652,667,977.45 | 1,397,190,942.29 | 630,672,258.24 | 7,475,358.75 | 6,009,887.37 |
| ngCo.,Ltd. | ||||||||
| ShandongLulianNewMaterialsCo.,Ltd. | Subsidiary | Fabric | 400000000 | 685,899,119.34 | 136,143,618.67 | 59,510,967.89 | -57,545,974.11 | -57,542,354.11 |
SubsidiariesobtainedordisposedintheReportingPeriod:
□Applicable?NotapplicableInformationaboutmajormajority-andminority-ownedsubsidiaries:
LuFengCompanyLimited(hereinafterreferredtoas“LuFeng”)istheholdingsubsidiaryoftheCompany.Registrationplace:Zibo,Shandong;registeredcapital:RMB706.160million.Themainlymanufacturingandsellingtextileprintinganddyeingproductsandtheproductsofclothingandgarments,anditwereauthenticatedtobehigh-techenterpriseinOctober2014.DuringtheReportingPeriod,withtheweakconsumerdemandacrosstheglobe,LuFengsawdecreasedexportandhigh-added-valueorders,leadingtoadeclineinbothoperatingrevenueandnetprofit.ShandongLulianNewMaterialsCo.,Ltd.(hereinafterreferredtoas"LulianNewMaterials")istheholdingsubsidiaryoftheCompany.Registrationplace:Zibo,Shandong;registeredcapital:RMB400million.ItwasestablishedinApril2019andmainlymanufacturingandsellingfunctionalfabrics.DuringtheReportingPeriod,itwasrampingupproductionandpartofproductswerereleasedcontinually.XStructuredBodiesControlledbytheCompany
□Applicable?Notapplicable
XIRisksFacingtheCompanyandCountermeasures
1.Impactofeconomicenvironment:undertheenormousuncertaintyriskoftheinternationaltrade,thegeopoliticalriskandtheimpactoftheglobaleconomicdownturn,theCompanywillfacechallengesintermsofinternationaltradepoliciesandmarketchanges.Inaddition,theeconomicdevelopmentofChinashouldbetransformedandupgrade,therefore,theCompanywillcontinuetostrictlyguaranteeproductionandsafetyandfurtherutilizevariousresourcesathomeandabroadtodevelopdomesticandoverseasmarkets,soastocatchnewdevelopmentopportunities.
2.Pricefluctuationofrawmaterials:cottonisthemajorproductionmaterialoftheCompany,andthepriceofcottonisimpactedbymarketsupplyanddemand,climate,policy,exchangerate,quotaandotherfactors,therefore,basedontheproductionordersandimportquota,theCompanyseriouslyconsiderstheinformationofglobalcottonmarket,properlyworksoutprocurementstrategyandactivelycontrolcostandgrossmarginfluctuationarisingfrompricechangeofcotton.
3.Changeofexchangerate:theCompanyhasalargeratioinimportandexportbusiness.Inrecentyears,thebi-directionalfluctuationsinRMBexchangeratehavebecomeincreasinglynormalandflexible.Theexchangeratefluctuationwillplacearemarkableimpactonitsperformance.Tolowertheimpactofexchangeratefluctuations,theCompanystucktotherisk-neutralphilosophy.Basedonactualneedsarisingfromproductionandoperations,itincorporatedexchangeraterisksintoroutineoperationsmanagement,andtookmeasuresatpropertimingtominimizetheinfluenceofexchangeraterisksontheoperations:
firstly,theCompanyappropriatelyconductedforeignexchangehedging,usingforwardFXsalesandpurchase,forwardforeign
exchangetradingandoptionportfoliostoavoidsomerisksSecondly,theCompanymadereasonablearrangementonsettlementdayandcurrencystructureandconclusionofagreementsonfixedforeignexchangeratetoavoidexchangerate-relatedrisks.Thirdly,theCompanyadjustedtheRenminbiandforeign-currencyliabilitiesstructuretoactivelypreventrisks.Fourthly,accordingtothefluctuationtrendofexchangerates,theCompanyproperlyadjustedimportsofrawandauxiliarymaterialstopartiallyoffsettheinfluenceofexchangeratefluctuationsontheCompany.
PartIVCorporateGovernanceIAnnualandExtraordinaryGeneralMeetingConvenedduringtheReportingPeriod
1.GeneralMeetingsConvenedduringtheReportingPeriod
| Meeting | Type | Investorparticipationratio | Conveneddate | Disclosuredate | Indextodisclosedinformation |
| The2022AnnualGeneralMeeting | AnnualGeneralMeeting | 32.95% | 12May2023 | 13May2023 | Itdeliberatedandapproved19proposals,includingtheProposalon2022AnnualWorkReportoftheBoardofDirectors,theProposalon2022AnnualWorkReportoftheSupervisoryCommittee,andtheProposalontheCompany's2022AnnualReportandItsSummary. |
2.ExtraordinaryGeneralMeetingConvenedatRequestofPreferenceShareholderswithResumedVotingRights
□Applicable?Notapplicable
IIChangeofDirectors,SupervisorsandSeniorManagement
□Applicable?NotapplicableTheCompany’sdirectors,supervisorsandseniormanagementremainedunchangedduringtheReportingPeriod.Fordetails,seethe2022AnnualReport.IIIInterimDividendPlan
□Applicable?NotapplicableTheCompanyhasnointerimdividendplan,eitherintheformofcashorstock.
IVEquityIncentivePlans,EmployeeStockOwnershipPlansorOtherIncentiveMeasuresforEmployees?Applicable□Notapplicable
1.EquityIncentive
| No. | Deliberationtime | Relevantmeeting | Overviewofexecution | Disclosureindex |
| 1 | 10April2023 | 7thMeetingofthe10thBoardofDirectorsand6thMeetingofthe10thSupervisoryCommittee | TheBoardofDirectorsreviewedandapprovedtheProposalontheAchievementofLiftingtheRestrictionConditionsintheFirstRestrictionPeriodfortheReservedSharesforGrantunderthe2021RestrictedShareIncentiveSchemeandtheProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveCondition.Theindependentdirectorsconsentedindependentlytorelevantmatters.TheSupervisoryCommitteereviewedandapprovedtheforegoingtwoproposalsandissuedthewrittenreviewopinions.BeijingDHH | Fordetails,seerelevantannouncements(No.:2023-015,2023-016,2023-023,and2023-024)anddocumentsdisclosedonApril12,2023onwww.cninfo.com.cn. |
| LawFirmQingdaoOfficeissuedalegalopinion.Thenumberofsubjectsofincentivemeetingtherestrictionliftingconditionsforthereservedsharesforgrantunderthe2021RestrictedShareIncentiveSchemeoftheCompanywasupto343,andatotalof2,919,000restrictedshareswereliftedoutofrestrictions.Theforegoingshareswerelistedandtradedon9May2023. | ||||
| 2 | 5May2023 | - | ItissuedtheIndicativeAnnouncementontheTradingontheMarketofLiftingtheRestrictionintheFirstRestrictionPeriodfortheReservedSharesforGrantofthe2021RestrictedShareIncentiveScheme. | Fordetails,seetherelevantannouncement(No.:2023-027)disclosedonMay5,2023onwww.cninfo.com.cn. |
| 3 | 12May2023 | 2022AnnualGeneralMeeting | ItdeliberatedonandapprovedtheProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveConditionanddisclosedtheAnnouncementofCapitalReductiononRepurchaseandCancelPartialRestrictedShareson13May2023. | Fordetails,seerelevantannouncements(No.:2023-032and2023-033)disclosedonMay13,2023onwww.cninfo.com.cn. |
| 4 | 26May2023 | 9thMeetingofthe10thBoardofDirectorsandthe8thMeetingofthe10thSupervisoryCommittee | TheBoardofDirectorsreviewedandapprovedtheProposalontheAchievementofLiftingtheRestrictionConditionsintheSecondRestrictionPeriodfortheFirstGrantofthe2021RestrictedShareIncentiveScheme.Theindependentdirectorsconsentedindependentlytorelevantmatters.TheSupervisoryCommitteereviewedandapprovedtheforegoingproposalandissuedthewrittenreviewopinions.Thenumberofsubjectsofincentivemeetingtherestrictionliftingconditionsinthesecondrestrictionperiodforthefirstgrantunderthe2021RestrictedShareIncentiveSchemeoftheCompanywasupto717,andatotalof6,979,500restrictedshareswereliftedoutofrestrictions.Theforegoingshareswerelistedandtradedon8June2023. | Fordetails,seerelevantannouncements(No.:2023-036and2023-037)disclosedonMay27,2023onwww.cninfo.com.cn. |
| 5 | 1June2023 | - | ItissuedtheIndicativeAnnouncementontheTradingontheMarketofLiftingtheRestrictionintheSecondRestrictionPeriodfortheFirstGrantofthe2021RestrictedShareIncentiveScheme. | Fordetails,seetherelevantannouncement(No.:2023-040)disclosedonJune1,2023onwww.cninfo.com.cn. |
2.ImplementationofEmployeeStockOwnershipPlan
□Applicable?Notapplicable
3.OtherIncentiveMeasuresforEmployees
□Applicable?Notapplicable
PartVEnvironmentalandSocialResponsibility
IMajorEnvironmentalIssues
IndicatebytickmarkwhethertheCompanyoranyofitssubsidiariesisaheavilypollutingbusinessidentifiedbytheenvironmentalprotectionauthoritiesofChina.?Yes□NoPoliciesandindustrystandardspertainingtoenvironmentalprotectionDuringproductionandoperation,LuThaiTextileCo.,Ltd.anditsholdingsubsidiaries,LuFengCompanyLimitedandShandongLulianNewMaterialsCo.,Ltd.,itswhollyownedsubsidiary,ZiboXinshengThermalPowerCo.,Ltd.,aresubjecttothefollowinglawsandregulationsandindustrystandardsrelatedtoenvironmentalprotection:TheEnvironmentalProtectionLawofthePeople’sRepublicofChina,theLawofthePeople’sRepublicofChinaonPreventionandControlofWaterPollution,theLawofthePeople’sRepublicofChinaonthePreventionandControlofAtmosphericPollution,theLawofthePeople’sRepublicofChinaonthePreventionandControlofSolidWastePollution,theContingencyManagementMeasuresforEnvironmentalEmergencies,theEmissionStandardsofWaterPollutantsinTextileDyeingandFinishingIndustry(GB4287-2012),theStandardforPollutionControlontheMunicipalSolidWasteIncineration(GB18485-2014),andtheEmissionStandardofAirPollutantsofThermalPowerPlants(DB37/664-2019).StatusofenvironmentalprotectionadministrativelicenseLuThaiTextileCo.,Ltd.anditsholdingsubsidiaries,includingLuFengCompanyLimited,ShandongLulianNewMaterialsCo.,Ltd.,andZiboXinshengThermalPowerCo.,Ltd.carriedoutpollutantdischargepermitmanagementandweregrantedthepollutantdischargepermitbytheEcologyandEnvironmentBureauofZibo.ThecurrentpollutantdischargepermitofLuThaiTextileCo.,Ltd.isvaliduntil9June2026;thatofLuFengCompanyLimitedisvaliduntil22November2026;thatofShandongLulianNewMaterialsCo.,Ltd.isvaliduntil25October2026;thatofZiboXinshengThermalPowerCo.,Ltd.isvaliduntil22June2025.Theregulationsforindustrialemissionsandtheparticularrequirementsforcontrollingpollutantemissionsthoseareassociatedwithproductionandoperationalactivities.
| Nameofpolluter | Typeofmajorpollutants | Nameofmajorpollutants | Wayofdischarge | Numberofdischargeoutlets | Distributionofdischargeoutlets | Dischargeconcentration/intensity | Dischargestandardsimplemented | Totaldischarge | Approvedtotaldischarge | Excessivedischarge |
| LuThaiTextileCo.,Ltd | Sewage | CODandammonianitrogen | Continuousdischarge | 2 | ChiefdischargeoutletofHuangjiapuIndustrialPark;chiefdischargeoutletofEastZone | COD≤200mg/L;ammonianitrogen≤20mg/L | EmissionstandardofwaterpollutantsintextiledyeingandfinishingindustryGB4287-2012 | COD:132.609t;ammonianitrogen:1.596t | COD:1495.08t；ammonianitrogen:149.51t | No |
| LuFengCompanyLimited | Sewage | CODandammonianitrogen | Continuousdischarge | 1 | ChiefdischargeoutletofLuFeng | COD≤200mg/L;ammonianitrogen≤20mg/ | Emissionstandardofwaterpollutant | COD：71.659t；ammonia | CODis653.53t；ammonia | No |
| CompanyLimited | L | sintextiledyeingandfinishingindustryGB4287-2012 | nitrogen:1.503t | nitrogenis65.3t | ||||||
| ShandongLulianNewMaterialsCo.,Ltd. | Sewage | CODandammonianitrogen | Continuousdischarge | 1 | ChiefdischargeoutletofLulianNewMaterials | COD≤200mg/L;ammonianitrogen≤20mg/L | EmissionstandardofwaterpollutantsintextiledyeingandfinishingindustryGB4287-2012 | COD：15.935t；ammonianitrogen:0.246t | CODis175.30t；ammonianitrogenis17.5t | No |
| ZiboXinshengThermalPowerCo.,Ltd. | Wastegas | SO2,NQx,andPM | Organizedcontinuousdischarge | 4 | Productionplant | SO2：≤35mg/m3、NQx：≤50mg/m3,PM：≤5mg/m3 | EmissionstandardofairpollutantsofThermalPowerPlantinShandongProvinceDB37/664-2019 | SO2:16.55t,NQx:57.2t,PM:1.677t | SO2is236.13t/a,NQx:674.63t/a,PM:67.47t/a. | No |
TreatmentofpollutantsLuThaiTextileCo.,Ltd.(hereinafterreferredtoas“theCompany”)anditsmajority-ownedsubsidiaryLufengWeaving&DyeingCo.,Ltd.(hereinafterreferredtoas“LufengWeaving&Dyeing”)andShandongLulianNewMaterialsCo.,Ltd.(hereinafterreferredtoas“LulianNewMaterials”)strictlyimplementthe“ThreeSimultaneous”managementsystemforenvironmentalprotectioninprojectconstructions.Thecompaniesareequippedwithcompletefacilitiesforwastegasandwastewatertreatment.LuThaiTextileCo.,Ltd.anditsmajority-ownedsubsidiaryLufengWeaving&DyeingCo.,Ltd.andShandongLulianNewMaterialsCo.,Ltd.continuouslyoptimizethedyeingwastewatertreatmentprogress,improvethetreatedwaterquality,ensurethatthepollutantemissionconcentrationisbetterthanthenationalstandard,furtherimprovetheriverwaterqualityandlocalecologicalenvironment.TheCompanyandLufengWeaving&Dyeingcentralizedlycollectedandcopedwiththedyeingandfinishingwastegas,soastogreatlyreducethepollutantemissionconcentration.Onlinesupportingmonitoringfacilitieswerebuilt,whosedatawasuploadedtothegovernmentenvironmentalmonitoringsystem,tocomprehensivelymonitortheCompany'semissionpollutantssuchaswastewaterandwastegas.Supportteamsweresetuptoberesponsiblefordailyoperationmaintenanceandinspectiontoguaranteethenormaloperationoffacilities.Boththeexhaustemissionandwastewaterdischargemeettheemissionstandards.Thewholly-ownedsubsidiaryZiboXinshengThermalPowerCo.,Ltd.(hereinafterreferredtoas“XinshengThermalPower”)enforcesthe“ThreeSimultaneous”managementsystemforenvironmentalprotectioninextensionprojectconstructioninaccordancewiththegovernmentrequirements,andadoptsthe“limestone-gypsummethod”toreduceemissionconcentrationofsulfurdioxide,the“Low-nitrogencombustion+SNCR”and“SNCR+SCRmethod”toreduceemissionconcentrationofnitrogenoxides,andthe“electric-bagelectrostaticprecipitator+wetelectrostaticprecipitator”toreducesootemissionconcentration.The
overallsystemworkswell.EmergencyplanforenvironmentalincidentsInordertopreventenvironmentalpollutionaccidents,theCompanyandtheholdingsubsidiaryLufengWeaving&DyeingandLulianNewMaterialsrespectivelypreparedtheEmergencyPlanforEnvironmentalIncidents,whichwerefiledwithZiboEnvironmentalProtectionBureauZichuanBranch.ThePlanincludescontentssuchasenvironmentalrisksourcesidentificationandriskassessment,preventionandearlywarningmechanism,emergencysecurity,andsupervisionandmanagement.Thewholly-ownedsubsidiaryZiboXinshengThermalPowerCo.,Ltd.hasformulatedthe“EmergencyPlanforEnvironmentalIncidents”andfileditwiththeecologicalandenvironmentalmanagementdepartment.Theidentificationandriskassessmentofenvironmentalrisksources,preventionandearlywarningmechanisms,emergencyprotectionandsupervisionandmanagementwereincludedintheplan.InputinenvironmentgovernanceandprotectionandpaymentofenvironmentalprotectiontaxDuringtheReportingPeriod,theinputinenvironmentgovernanceandprotectionandpaymentofenvironmentalprotectiontaxfortheCompanyandtheholdingsubsidiaryLufengWeaving&DyeingandLulianNewMaterialsareRMB23.2560millionintotal,amongwhich,RMB22.7832millionforinputinenvironmentgovernanceandprotectionandRMB472.8thousandforpaymentofenvironmentalprotectiontax.Environmentalself-monitoringprogramInaccordancewiththerequirementsofthecompetentenvironmentauthorities,theCompanyandtheholdingsubsidiaryLufengWeaving&DyeingandLulianNewMaterialsobservedtherequirementsofthesuperiorenvironmentalprotectiondepartmenttoinstallautomaticwastewatermonitoringfacilitiesandachievereal-timemonitoringofwastewaterdischarge.Besides,theautomaticenvironmentmonitoringplanwaspreparedasrequiredbyemissionpermit.Inaddition,theyinvitedaqualifiedtestinginstitutiontoconducttestsonsewageandwastegasbasedonthefrequencyofmonitoring,disclosedthemonitoringdataintime,andsubmittedthetestreportstothecompetentenvironmentauthoritiesensuringthemonitoringdataistrueandvalid.Thewholly-ownedsubsidiaryZiboXinshengThermalPowerCo.,Ltd.hasimplementedonlinereal-timemonitoringofenvironmentaldatainaccordancewiththerequirementsofthesuperiorenvironmentalprotectiondepartment,andhasachievedemissionstandards.AdministrativepenaltiesimposedforenvironmentalissuesduringtheReportingPeriod
| Name | Reason | Case | Result | Influenceonproductionandoperation | Rectificationmeasures |
| N/A | N/A | N/A | N/A | N/A | N/A |
OtherenvironmentinformationthatshouldbedisclosedNoneMeasurestakentodecreasecarbonemissionintheReportingPeriodandcorrespondingeffects?Applicable□NotapplicableNoneOtherenvironmentalinformationNoneTheCompanyissubjecttothedisclosurerequirementsforlistedcompaniesengagingintextileandapparelasstatedinGuidelineNo.3oftheShenzhenStockExchangeforSelf-regulationofListedCompanies—Industry-specificInformationDisclosure.RelatedenvironmentalaccidentsinformationNone
IISocialResponsibility
Notapplicable
PartVISignificantEvents
ICommitmentsoftheCompany’sDeFactoController,Shareholders,RelatedPartiesandAcquirers,aswellastheCompanyItselfandOtherEntitiesFulfilledintheReportingPeriodorOngoingatthePeriod-End?Applicable□Notapplicable
| Commitment | Promisor | Typeofcommitment | Detailsofcommitment | Dateofcommitmentmaking | Termofcommitment | Fulfillment |
| CommitmentsmadeintimeofIPOorrefinancing | Controllingshareholder,actualcontroller | DilutionofatsightreturnsonpublicofferingA-shareconvertiblecorporatebonds | 1.NotintervenetheCompany’soperationandmanagementbeyondtheauthorityandnotoccupytheCompany’sinterests.2.FromtheissuancedateofthiscommitmenttothecompletionoftheimplementationoftheCompany'spublicofferingofA-shareconvertiblecorporatebonds,iftheCSRCmakesothernewregulatoryprovisionsonremedialmeasuresforreturnsandthecommitment,andtheabovecommitmentfailstomeettherequirementsoftheCSRC,thecompany/IpromisetoissuesupplementarycommitmenttheninaccordancewiththelatestregulationsofCSRC.3.CommitmentismadetofulfilltheCompany'srelevantremedialmeasuresforreturnsandanycommitmentmadehereinbythecompany/me.Ifthecompany/Iviolate(s)suchcommitmentandcause(s)lossestotheCompanyorinvestors,thecompany/IwillbearthecompensationresponsibilitytotheCompanyorinvestorsinaccordancewiththelaw. | 23May2019 | From23May2019to8April2026 | On-going |
| CommitmentsmadeintimeofIPOorrefinancing | DirectorsandseniormanagementoftheCompany | DilutionofatsightreturnsonpublicofferingA-shareconvertiblecorporatebonds | 1.Commitmentismadenottotransferbenefitstootherunitsorindividualsfreeofchargeorunderunfairconditions,andnootherwaysdamagingtheinterestsoftheCompanywillbetaken.2.IwillstrictlyabidebythebudgetmanagementoftheCompany,andacceptthestrictsupervisionandmanagementoftheCompanytoavoidwasteorexcessiveconsumption.Anyposition-relatedconsumption | 23May2019 | From23May2019to8April2026 | On-going |
| behaviorsofmewilloccurwithinthescopenecessaryfortheperformanceofmyduties.3.CommitmentismadenottousetheCompany'sassetstoengageininvestmentandconsumptionactivitiesunrelatedtotheperformanceofduties.4.CommitmentismadethattheremunerationsystemdevelopedbytheBoardofDirectorsortheRemunerationCommitteeislinkedtotheimplementationoftheCompany'sremedialmeasuresforreturns.5.CommitmentismadethattheconditionsforexercisingtheEquityIncentivePlantobeissuedinthefuturewillbelinkedtotheimplementationoftheCompany'sremedialmeasuresforreturns.6.FromtheissuancedateofthiscommitmenttothecompletionoftheimplementationoftheCompany'spublicofferingofA-shareconvertiblecorporatebonds,iftheCSRCmakesothernewregulatoryprovisionsonremedialmeasuresforreturnsandthecommitment,andtheabovecommitmentfailstomeettherequirementsoftheCSRC,IpromisetoissuesupplementarycommitmenttheninaccordancewiththelatestregulationsofCSRC.7.CommitmentismadetofulfilltheCompany'srelevantremedialmeasuresforreturnsandanycommitmentmadehereinbyme.IfIviolatesuchcommitmentandcauseslossestotheCompanyorinvestors,IwillbearthecompensationresponsibilitytotheCompanyorinvestorsinaccordancewiththelaw. | |||
| Executedontimeornot | Not | ||
IIOccupationoftheCompany’sCapitalbytheControllingShareholderoranyofItsRelatedPartiesforNon-OperatingPurposes
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
IIIIrregularitiesintheProvisionofGuarantees
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
IVEngagementandDisengagementofIndependentAuditor
Aretheinterimfinancialstatementsaudited?
□Yes?NoTheinterimfinancialstatementshavenotbeenaudited.
VExplanationsGivenbytheBoardofDirectorsandtheSupervisoryCommitteeRegardingtheIndependentAuditor's“ModifiedOpinion”ontheFinancialStatementsoftheReportingPeriod
□Applicable?Notapplicable
VIExplanationsGivenbytheBoardofDirectorsRegardingtheIndependentAuditor's“ModifiedOpinion”ontheFinancialStatementsofLastYear
□Applicable?Notapplicable
VIIInsolvencyandReorganization
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
VIIILegalMatters
Significantlawsuitsandarbitrations:
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.Otherlegalmatters:
□Applicable?NotapplicableIXPunishmentsandRectifications
□Applicable?NotapplicableXCreditQualityoftheCompanyaswellasitsControllingShareholderandDeFactoController
□Applicable?Notapplicable
XIMajorRelated-PartyTransactions
1.ContinuingRelated-PartyTransactions
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
2.Related-PartyTransactionsRegardingPurchaseorSalesofAssetsorEquityInterests
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
3.Related-PartyTransactionsRegardingJointInvestmentsinThirdParties
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
4.CreditsandLiabilitieswithRelatedParties
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
5.TransactionswithRelatedFinanceCompanies
□Applicable?NotapplicableTheCompanydidnotmakedepositsin,receiveloansorcreditfromandwasnotinvolvedinanyotherfinancebusinesswithanyrelatedfinancecompanyoranyotherrelatedparties.
6.TransactionswithRelatedPartiesbyFinanceCompaniesControlledbytheCompany
□Applicable?NotapplicableThefinancecompanycontrolledbytheCompanydidnotmakedeposits,receiveloansorcreditfromandwasnotinvolvedinanyotherfinancebusinesswithanyrelatedparties.
7.OtherMajorRelated-PartyTransactions
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
XIIMajorContractsandExecutionthereof
1.Entrustment,ContractingandLeases
(1)Entrustment
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
(2)Contracting
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
(3)Leases
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
2.MajorGuarantees?Applicable□Notapplicable
Unit:RMB'0,000
| GuaranteesprovidedbytheCompanyastheparentanditssubsidiariesforexternalparties(exclusiveofthoseforsubsidiaries) | ||||||||||
| Obligor | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate | Actualguaranteeamount | Typeofguarantee | Collateral(ifany) | Counter-guarantee(ifany) | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
| GuaranteesprovidedbytheCompanyforitssubsidiaries | ||||||||||
| Obligor | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate | Actualguaranteeamount | Typeofguarantee | Collateral(ifany) | Counter-guarantee(ifany) | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
| Wholly-ownedsubsidiary | 26August2022 | 23,845.14 | 24August2022 | 6,698.89 | Joint-liability | N/A | N/A | ThreeyearssincetheapprovaloftheboardoftheCompany | No | Yes |
| Wholly-ownedsubsidiary | 1July2023 | 7,225.8 | 30June2023 | 0 | Joint-liability | N/A | N/A | ThreeyearssincetheapprovaloftheboardoftheCompany | No | Yes |
| TotalapprovedlineforsuchguaranteesintheReportingPeriod(B1) | 7,225.8 | TotalactualamountofsuchguaranteesintheReportingPeriod(B2) | 1,956.96 | |||||||
| TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(B3) | 31,070.94 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(B4) | 6,698.89 | |||||||
| Guaranteesprovidedbetweensubsidiaries | ||||||||||
| Obligor | Disclosuredateoftheguaranteeline | Lineofguarantee | Actualoccurrencedate | Actualguaranteeamount | Typeofguarantee | Collateral(ifany) | Counter-guarantee(ifany) | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedparty |
| announcement | ornot | ||||
| Totalguaranteeamount(totalofthethreekindsofguaranteesabove) | |||||
| TotalguaranteelineapprovedintheReportingPeriod(A1+B1+C1) | 7,225.8 | TotalactualguaranteeamountintheReportingPeriod(A2+B2+C2) | 1,956.96 | ||
| TotalapprovedguaranteelineattheendoftheReportingPeriod(A3+B3+C3) | 31,070.94 | TotalactualguaranteebalanceattheendoftheReportingPeriod(A4+B4+C4) | 6,698.89 | ||
| Totalactualguaranteeamount(A4+B4+C4)as%oftheCompany’snetassets | 0.72% | ||||
| Ofwhich: | |||||
| Balanceofguaranteesprovidedforshareholders,actualcontrollerandtheirrelatedparties(D) | 0 | ||||
| Balanceofdebtguaranteesprovideddirectlyorindirectlyforobligorswithanover70%debt/assetratio(E) | 0 | ||||
| Amountbywhichthetotalguaranteeamountexceeds50%oftheCompany’snetassets(F) | 0 | ||||
| Totalofthethreeamountsabove(D+E+F) | 0 | ||||
| JointresponsibilitiespossiblyborneoralreadyborneintheReportingPeriodforundueguarantees(ifany) | N/A | ||||
| Explanationaboutexternalguaranteeviolatingestablishedprocedure(ifany) | N/A | ||||
Compoundguarantees:
N/ATheCompanyissubjecttothedisclosurerequirementsforlistedcompaniesengagingintextileandapparelasstatedinGuidelineNo.3oftheShenzhenStockExchangeforSelf-regulationofListedCompanies—Industry-specificInformationDisclosure.WhethertheCompanyprovidesguaranteesorfinancialassistancefordealers
□Yes?No
3.CashEntrustedforWealthManagement
?Applicable□Notapplicable
RMB’0,000
| Specifictype | Capitalresources | Amountincurred | UndueBalance | Overdueamount | Overdueamountwithprovisionforimpairment |
| Bank’sfinancialproducts | Raisedfunds | 39,100 | 21,700 | 0 | 0 |
| Bank’sfinancialproducts | Self-ownedfunds | 26,500 | 12,500 | 0 | 0 |
| Brokeragefinancialproducts | Raisedfunds | 9,000 | 1,000 | 0 | 0 |
| Brokeragefinancialproducts | Self-ownedfunds | 115,181.8 | 2,000.2 | 0 | 0 |
| Total | 189,781.8 | 37,200.2 | 0 | 0 | |
Particularsofentrustedcashmanagementwithsinglesignificantamountorlowsecurity,badliquidity,andnocapitalpreservation
□Applicable?Notapplicable
Whetherthereisthecasewheretheprincipalcannotberecoveredatmaturityorothercasewhichmaycauseimpairmentforentrustedassetmanagement
□Applicable?Notapplicable
4.OtherMajorContracts
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
XIIIOtherSignificantEvents?Applicable□NotapplicableTheProposalonRepurchaseofDomesticallyListedForeignShares(B-Stock)wasapprovedatthe10
thMeetingofthe10
th
BoardofDirectorsandtheFirstExtraordinaryGeneralMeetingof2023.Assuch,anamountofnomorethanRMB200millionwouldbeusedtorepurchaseshares,withapricelimitofHKD4.80pershare,within12monthsfromthedatewhenthesharerepurchaseplanwasapprovedatthegeneralmeeting.Fordetails,seetherelevantannouncements(No.:2023-043,2023-044,2023-053,and2023-055)anddocumentsdisclosedon20June2023and7July2023onwww.cninfo.com.cn.XIVSignificantEventsofSubsidiaries
□Applicable?Notapplicable
PartVIIShareChangesandShareholderInformation
IShareChanges
1.ShareChanges
Unit:share
| Before | Increase/decreaseintheReportingPeriod(+/-) | After | |||||||
| Shares | Percentage(%) | Newissues | Sharesasdividendconvertedfromprofit | Sharesasdividendconvertedfromcapitalreserves | Other | Subtotal | Shares | Percentage(%) | |
| I.Restrictedshares | 20,647,892 | 2.33% | -9,168,500 | -9,168,500 | 11,479,392 | 1.33% | |||
| 1.SharesheldbyState | |||||||||
| 2.Sharesheldbystate-ownedlegalperson | |||||||||
| 3.Sharesheldbyotherdomesticinvestors | 20,647,892 | 2.33% | -9,168,500 | -9,168,500 | 11,479,392 | 1.33% | |||
| Amongwhich:Sharesheldbydomesticlegalperson | 0 | ||||||||
| Sharesheldbydomesticnaturalperson | 20,647,892 | 2.33% | -9,168,500 | -9,168,500 | 11,479,392 | 1.33% | |||
| 4.Sharesheldbyotherforeigninvestors | |||||||||
| Amongwhich:Sharesheldbyforeigncorporations | |||||||||
| Sharesheldbyforeignnaturalperson | |||||||||
| II.Unrestricted | 866,985,259 | 97.67% | -14,767,132 | -14,767,132 | 852,218,127 | 98.67% | |||
| shares | |||||||
| 1.RMBordinaryshares | 570,804,568 | 64.31% | 9,168,616 | 9,168,616 | 579,973,184 | 67.15% | |
| 2.Domesticallylistedforeignshares | 296,180,691 | 33.37% | -23,935,748 | -23,935,748 | 272,244,943 | 31.52% | |
| 3.Overseaslistedforeignshares | |||||||
| 4.Other | |||||||
| III.Totalshares | 887,633,151 | 100.00% | -23,935,632 | -23,935,632 | 863,697,519 | 100.00% |
Reasonsforsharechanges:
?Applicable□Notapplicable①DuetothefactthattheCompanyhadissuedconvertibleA-sharebondson9April2020,convertiblebondswereconvertedto116sharesintheperiodfromthebeginningof2023to30June,2023.②On9Mayand8June2023,2,919,000and6,979,500sharesofequityincentiverestrictedshareswereliftedfromrestriction,respectively.③On25May2023,23,935,748domesticallylistedforeignshares(Bshares)wererepurchasedandcanceled.④Duetotheliftofrestrictionsontheequityincentiverestrictedshares,thesharesheldbythedirectorsandexecutivesshallbeunlockedandadjustedinaccordancewithrelevantregulationsonexecutivesharemanagement.Approvalofsharechanges:
?Applicable□Notapplicable①On10April2023,theCompanyheldthe7thMeetingofthe10thBoardofDirectorsandthe6thMeetingofthe10thSupervisoryCommittee,andreviewedandapprovedtheProposalontheAchievementofLiftingtheRestrictionConditionsintheFirstRestrictionPeriodfortheReservedSharesforGrantunderthe2021RestrictedShareIncentiveScheme.Also,theCompanyagreedtoprocesstherestrictionliftingmattersfor2,919,000restrictedsharesheldby343incentivepersonnelwhomettherestrictionliftingconditionsinthefirstrestrictionperiodforthereservedsharesforgrantunderthe2021RestrictedShareIncentiveScheme.②TheCompanyheldthe2ndMeetingofthe10thBoardofDirectorson29June2022andthe3rdExtraordinaryGeneralMeetingof2022on15July2022,reviewingandapprovingtheProposalonRepurchaseoftheCompany’sDomesticallyListedForeignShares(BShare).TheCompanyrepurchased23,935,748BsharesintotalthroughcallauctionviaitssecuritiesaccountforrepurchaseandcompletedtheformalitiesforcancellationoftheforegoingrepurchasedsharesattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimitedon25May2023.③On26May2023,theCompanyheldthe9thMeetingofthe10thBoardofDirectorsandthe8thMeetingofthe10thSupervisoryCommittee,andreviewedandapprovedtheProposalontheAchievementoftheLiftingRestrictionConditionsintheSecondRestrictionPeriodfortheFirstGrantofthe2021RestrictedShareIncentiveScheme.Also,theCompanyagreedtoprocesstherestrictionliftingmattersfor6,979,500restrictedsharesheldby717incentivepersonnelwhomettherestrictionliftingconditionsinthesecondrestrictionperiodforthefirstgrantofthe2021RestrictedShareIncentiveScheme.Transferofshareownership:
?Applicable□NotapplicableTheCompanycompletedtheformalitiesforcancellationofthe23,935,748repurchasedsharesattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimitedon25May2023.Progressonanysharerepurchases:
?Applicable□NotapplicableTheCompanyfirstrepurchasedBshareson27July2022anddisclosedrelevantprogressduringtherepurchaseperiodasrequiredbyrelevantlawsandregulations.Asat8May2023,alltherepurchasedshareshadbeendelivered,andthetotalamountoffundsusedhadhittheceilingontherepurchasefundasstipulatedintherepurchaseprogram.TheCompanyrepurchased23,935,748Bsharesintotalthroughcallauctionviaitssecuritiesaccountforrepurchase,accountingforapproximately8.08%oftheCompany’sBsharesand2.70%oftheCompany’stotalsharecapital.ThehighesttransactionpriceoftherepurchasereachedHKD4.80pershare,andthelowestreachedHKD4.17pershare.ThetotalamountpaidwasHKD112,191,959.87(includingthetransactioncost),equivalenttoRMB99,999,967.54,nomorethanRMB100million.TheforegoingrepurchasedshareswerecanceledattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimitedon25May2023.
Progressonreducingtherepurchasedsharesbymeansofcentralizedbidding:
□Applicable?NotapplicableEffectsofsharechangesonthebasicanddilutedearningspershare,equitypershareattributabletotheCompany’sordinaryshareholdersandotherfinancialindicatorsoftheprioryearandtheprioraccountingperiod,respectively:
?Applicable□NotapplicableSeerelevantcontentsof"IVKeyFinancialInformation"under"PartIICorporateInformationandKeyFinancialInformation".OtherinformationthattheCompanyconsidersnecessaryorisrequiredbythesecuritiesregulatortobedisclosed:
□Applicable?Notapplicable
2.ChangesinRestrictedShares?Applicable□Notapplicable
Unit:share
| Nameoftheshareholders | Restrictedsharesamountattheperiod-begin | Restrictedsharesrelievedoftheperiod | Restrictedsharesincreasedoftheperiod | Restrictedsharesamountattheperiod-end | Restrictedreasons | Restrictedsharesrelieveddate |
| ZhangZhanqi | 485,225 | 190,000 | 140,000 | 435,225 | LockedpublicsharesheldbyseniormanagementandRestrictedsharesfromequityincentive | 100000shareson9May2023and90000shareson8June2023 |
| YuShouzheng | 312,325 | 110,000 | 85,000 | 287,325 | LockedpublicsharesheldbyseniormanagementandRestrictedsharesfromequityincentive | 50000shareson9May2023and60000shareson8June2023 |
| ZhangKeming | 308,275 | 110,000 | 85,000 | 283,275 | LockedpublicsharesheldbyseniormanagementandRestrictedsharesfromequityincentive | 50000shareson9May2023and60000shareson8June2023 |
| WangJiabin | 287,775 | 90,000 | 37,500 | 235,275 | LockedpublicsharesheldbyseniormanagementandRestrictedsharesfromequityincentive | 90000shareson8June2023 |
| ShangChenggang | 272,500 | 110,000 | 85,000 | 247,500 | LockedpublicsharesheldbyseniormanagementandRestrictedsharesfromequityincentive | 50000shareson9May2023and60000shareson8June2023 |
| LiWenji | 257,500 | 110,000 | 47,500 | 195,000 | Lockedpublic | 50000shareson9May2023 |
| sharesheldbyseniormanagementandRestrictedsharesfromequityincentive | and60000shareson8June2023 | |||||
| DuLixin | 250,000 | 110,000 | 47,500 | 187,500 | LockedpublicsharesheldbyseniormanagementandRestrictedsharesfromequityincentive | 50000shareson9May2023and60000shareson8June2023 |
| GuoHeng | 250,000 | 110,000 | 85,000 | 225,000 | LockedpublicsharesheldbyseniormanagementandRestrictedsharesfromequityincentive | 50000shareson9May2023and60000shareson8June2023 |
| XuFeng | 190,000 | 95,000 | 47,500 | 142,500 | LockedpublicsharesheldbyseniormanagementandRestrictedsharesfromequityincentive | 50000shareson9May2023and45000shareson8June2023 |
| LyuWenquan | 150,000 | 70,000 | 70,000 | 150,000 | LockedpublicsharesheldbyseniormanagementandRestrictedsharesfromequityincentive | 25000shareson9May2023and45000shareson8June2023 |
| Otherrestrictedshareholders | 17,884,292 | 8,793,500 | 9,090,792 | LockedpublicsharesheldbyseniormanagementandRestrictedsharesfromequityincentive | 2444000shareson9May2023and6349500shareson8June2023 | |
| Total | 20,647,892 | 9,898,500 | 730,000 | 11,479,392 | -- | -- |
II.IssuanceandListingofSecurities
□Applicable?NotapplicableIIITotalNumberofShareholdersandTheirShareholdings
Unit:share
| Totalnumberofordinaryshareholdersattheperiod-end | 53,240 | Totalnumberofpreferenceshareholderswithresumedvotingrightsattheperiod-end(ifany)(seeNote8) | 0 |
| 5%orgreaterordinaryshareholdersorthetop10ordinaryshareholders | |||
| Nameofshareholder | Natureofshareholder | Shareholdingpercentage(%) | Totalsharesheldattheperiod-end | Increase/decreaseduringtheReportingPeriod | Numberofrestrictedsharesheld | Numberofnon-restrictedsharesheld | Pledged,markedorfrozenshares | |
| Status | Number | |||||||
| ZiboLuchengTextileInvestmentCo.,Ltd. | Domesticnon-state-ownedlegalperson | 16.25% | 140,353,583 | 0 | 0 | 140,353,583 | ||
| Tailun(Thailand)TextileCo.,Ltd. | Foreignlegalperson | 13.69% | 118,232,400 | 0 | 0 | 118,232,400 | ||
| CentralHuijinAssetsManagementCo.,Ltd. | State-ownedlegalperson | 2.30% | 19,884,100 | 0 | 0 | 19,884,100 | ||
| NationalSocialSecurityFundPortfolio413 | Other | 1.54% | 13,260,051 | 0 | 0 | 13,260,051 | ||
| ICBCCreditSuisseInnovationPowerStockTypeSecuritiesInvestmentFund | Other | 1.38% | 11,910,000 | 6810000 | 0 | 11,910,000 | ||
| ICBCCreditSuisseSelectedBalancedMixedSecuritiesInvestmentFund | Other | 0.84% | 7,230,000 | 7230000 | 0 | 7,230,000 | ||
| FEDERATEDHERMESGLOBALINVESTMENTFD(CAYMAN)MASTER,SPCOBOAFTAOFEDERATEDHERMESEMGASIAEQUITYFDMASTERS.P. | Foreignlegalperson | 0.61% | 5,259,028 | 635654 | 0 | 5,259,028 | ||
| DachengChinaSecuritiesAssetManagementPlan | Other | 0.61% | 5,235,900 | 0 | 0 | 5,235,900 | ||
| GFChinaSecuritiesAssetManagementPlan | Other | 0.56% | 4,833,300 | -402600 | 0 | 4,833,300 | ||
| YinhuaChinaSecuritiesAssetManagementPlan | Other | 0.50% | 4,320,212 | -72100 | 0 | 4,320,212 | ||
| Strategicinvestorsorgeneralcorporationsbecomingtop-tenshareholdersduetoplacingofnewshares(ifany)(seeNote3) | Naught | ||
| Relatedoracting-in-concertpartiesamongtheshareholdersabove | ZiboLuchengTextileInvestmentCo.,Ltd.isthelargestshareholderoftheCompanyandtheactualcontroller.Tailun(Thailand)TextileCo.,Ltd.isthesecondlargestshareholderaswellassponsorofforeigncapitaloftheCompany.AllofothershareholdersarepeopleholdingpublicAshareorpublicBshareandtheCompanyisnotabletoconfirmwhetherthereisassociatedrelationshiporconcertedactionamongothershareholders. | ||
| Explainifanyoftheshareholdersabovewasinvolvedinentrusting/beingentrustedwithvotingrightsorwaivingvotingrights | Naught | ||
| Specialaccountforsharerepurchases(ifany)amongthetop10shareholders(seenote11) | Naught | ||
| Shareholdingsofthetoptennon-restrictedordinaryshareholders | |||
| Nameofshareholder | Numberofnon-restrictedsharesheldattheperiod-end | Typeofshares | |
| Type | Shares | ||
| ZiboLuchengTextileInvestmentCo.,Ltd. | 140,353,583 | RMBordinaryshare | 140,353,583 |
| Tailun(Thailand)TextileCo.,Ltd. | 118,232,400 | Domesticallylistedforeignshares | 118,232,400 |
| CentralHuijinAssetsManagementCo.,Ltd. | 19,884,100 | RMBordinaryshare | 19,884,100 |
| NationalSocialSecurityFundPortfolio413 | 13,260,051 | RMBordinaryshare | 13,260,051 |
| ICBCCreditSuisseInnovationPowerStockTypeSecuritiesInvestmentFund | 11,910,000 | RMBordinaryshare | 11,910,000 |
| ICBCCreditSuisseSelectedBalancedMixedSecurities | 7,230,000 | RMBordina | 7,230,000 |
| InvestmentFund | ryshare | ||
| FEDERATEDHERMESGLOBALINVESTMENTFD(CAYMAN)MASTER,SPCOBOAFTAOFEDERATEDHERMESEMGASIAEQUITYFDMASTERS.P. | 5,259,028 | Domesticallylistedforeignshares | 5,259,028 |
| DachengChinaSecuritiesAssetManagementPlan | 5,235,900 | RMBordinaryshare | 5,235,900 |
| GFChinaSecuritiesAssetManagementPlan | 4,833,300 | RMBordinaryshare | 4,833,300 |
| YinhuaChinaSecuritiesAssetManagementPlan | 4,320,212 | RMBordinaryshare | 4,320,212 |
| Explanationonconnectedrelationshipamongthetoptenshareholdersoftradablesharenotsubjecttotradingmoratorium,aswellasamongthetoptenshareholdersoftradablesharenotsubjecttotradingmoratoriumandtoptenshareholders,orexplanationonacting-in-concert | ZiboLuchengTextileInvestmentCo.,Ltd.isthelargestshareholderandtheactualcontrolleroftheCompany.Tailun(Thailand)TextileCo.,Ltd.isthesecondlargestshareholderandtheforeignsponsoroftheCompany.AlltheothershareholdersareholdingtradableA-sharesorB-shares.Anditisunknownwhetherthereisanyrelatedpartyoracting-in-concertpartyamongthem. | ||
| Particularaboutshareholderparticipateinthesecuritieslendingandborrowingbusiness(ifany)(note4) | Naught | ||
Indicatebytickmarkwhetheranyofthetop10ordinaryshareholdersorthetop10unrestrictedordinaryshareholdersoftheCompanyconductedanypromissoryrepoduringtheReportingPeriod.
□Yes?NoNosuchcasesintheReportingPeriod.
IVChangeinShareholdingsofDirectors,SupervisorsandSeniorManagement
?Applicable□Notapplicable
| Name | Officetitle | Incumbent/former | Beginningshareholding(share) | IncreaseintheCurrent | Decreaseinthe | Endingshareholding(share) | Numberofgrantedrestricted | Numberofrestricted | Numberofgrantedrestricted |
| Period(share) | CurrentPeriod(share) | sharesattheperiod-begin(share) | sharesgrantedintheCurrentPeriod(share) | sharesattheperiod-end(share) | |||||
| LiuZibin | ChairmanandPresident | Incumbent | 148,290 | 148,290 | |||||
| XuZhinan | ViceChairman | Incumbent | |||||||
| XuJianlyu | Director | Incumbent | |||||||
| ZhengHuisheng | Director | Incumbent | |||||||
| LiuDeming | Director,ViceControllerofGlobalMarketingDepartment | Incumbent | |||||||
| ZhangZhanqi | Director,Vicepresident,ControllerofGlobalMarketingDepartment | Incumbent | 580,300 | 580,300 | 380,000 | 190,000 | |||
| ZhangKeming | Director,BoardSecretary,ChiefAccountant,ControllerofFinancialManagementDepartment | Incumbent | 377,700 | 377,700 | 220,000 | 110,000 | |||
| DuLixin | Director,ChiefEngineer,ExecutiveDeanofLuThaiEngineeringTechnologyResearchInstitute | Incumbent | 250,000 | 250,000 | 220,000 | 110,000 | |||
| ZhouZhiji | IndependentDirector | Incumbent | |||||||
| QuDongmei | IndependentDirector | Incumbent | |||||||
| PengYanli | IndependentDirector | Incumbent | |||||||
| QuanYuhua | IndependentDirector | Incumbent | |||||||
| ZhangShougang | ChairmanoftheSupervisoryCommittee | Incumbent | 73,100 | 73,100 |
| LiuZilong | Supervisor | Incumbent | 10,000 | 10,000 | |||||
| DongShibing | Supervisor,ManagerofLogisticsManagementDepartment | Incumbent | 5,000 | 5,000 | |||||
| WangJiabin | Counselor | Incumbent | 313,700 | 313,700 | 180,000 | 90,000 | |||
| ShangChenggang | PresidentAssistant,ControllerofGarmentProductLine | Incumbent | 330,000 | 330,000 | 220,000 | 110,000 | |||
| YuShouzheng | PresidentAssistant,ControllerofEnergyandEnvironmentProtectionDepartment | Incumbent | 383,100 | 383,100 | 220,000 | 110,000 | |||
| FujiwaraMatsuzaka | GMofJapanOffice | Incumbent | |||||||
| LiWenji | DeanofLuThaiEngineeringTechnologyResearchInstitute | Incumbent | 260,000 | 260,000 | 220,000 | 110,000 | |||
| GuoHeng | ControllerofFunctionalFabricProductLine | Incumbent | 300,000 | 300,000 | 220,000 | 110,000 | |||
| LyuWenquan | ViceControllerofYarnDyedFabricProductLine,ManagerofYarnDyedProductionManagementDepartment | Incumbent | 200,000 | 200,000 | 140,000 | 70,000 | |||
| XuFeng | ViceControllerofYarnDyedFabricProductLine | Incumbent | 190,000 | 190,000 | 190,000 | 95,000 | |||
| Total | -- | -- | 3,421,190 | 0 | 0 | 3,421,190 | 2,210,000 | 0 | 1,105,000 |
VChangeoftheControllingShareholderortheDeFactoController
ChangeofthecontrollingshareholderintheReportingPeriod
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.ChangeofthedefactocontrollerintheReportingPeriod
□Applicable?Notapplicable
NosuchcasesintheReportingPeriod.
PartVIIIPreferenceShares
□Applicable?NotapplicableNopreferencesharesintheReportingPeriod.
PartIXBonds?Applicable□Notapplicable
IEnterpriseBonds
□Applicable?NotapplicableNoenterprisebondsintheReportingPeriod.
IICorporateBonds
□Applicable?NotapplicableNocorporatebondsintheReportingPeriod.
IIIDebtFinancingInstrumentsofNon-financialEnterprises
□Applicable?NotapplicableNosuchcasesintheReportingPeriod.
IVConvertibleCorporateBonds?Applicable□Notapplicable
1.PreviousAdjustmentsandCorrectionofConversionPriceOn9April2020,theCompanypubliclyissued14millionA-shareconvertiblecorporatebonds(shortname:LuThaiConvertibleBonds,bondcode:127016)onShenzhenStockExchangewithanissuepriceofRMB100pershareandashareconversionpriceofRMB9.01pershare.ThebondswerelistedonShenzhenStockExchangeon13May2020.Inaccordancewithrelatedtermsofthe“ProspectusforthePublicOfferingofA-ShareConvertibleCorporateBondsofLuThaiTextileCo.,Ltd.”,aswellastheregulationsofChinaSecuritiesRegulatoryCommissiononthepublicofferingofconvertiblecorporatebonds,iftheCompanyhasanydistributionofsharedividends,conversionintosharecapital,additionalissueofnewshares(excludingsharecapitalincreaseduetoconversionintosharesfromtheconvertiblecorporatebondsissuedthistime),shareallotmentanddistributionofcashdividendsaftertheissueof“LuThaiConvertibleBonds”,adjustmentshallbemadetotheshareconversionprice.On21May2020,theCompanyheldtheAnnualGeneralMeetingof2019,wherethe“ProposalontheCompany’sProfitDistributionPlanfor2019”wasconsideredandapproved.AccordingtotheProposal,acashamountofRMB1.00(inclusiveoftax)wouldbedistributedtoevery10shares,withthe858,121,541sharesofsharecapitalon31December2019asthebase.TheshareregistrationdatefortheCompany’sequitydistributionof2019was8July2020andtheex-rightsandex-dividenddatewas9July2020.Therefore,theshareconversionpriceof“LuThaiConvertibleBonds”wasadjustedfromRMB9.01persharetoRMB8.91pershare,andthenewpriceaftertheadjustmenttookeffectonandasof9July2020(theex-rightsandex-dividenddate).
On3June2021,theCompanycompletedtheregistrationoffirst-grantedrestrictedstocksofrestrictedshareincentiveschemeattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimited(ChinaClear).7June2021isdesignatedasthelistingdateoffirst-grantedrestrictedstocksoftheCompanyin2021.TheCompanygrants750subjectsofincentive24,285,000restrictedsharesatapriceofRMB3.31pershare,accountingfor2.83%oftotalsharecapitaloftheCompany.ThesourceofthestockisRMBA-shareordinarysharesissuedbytheCompanytosubjectsofincentive.Therefore,theconversionpriceofLuThaiConvertibleBondwillbeadjustedfromRMB8.91persharetoRMB8.76pershare,withtheadjustedconversionpricecomingintoforcefrom7June2021.The2020annualgeneralmeetingconvenedon20April2021deliberatedonandadoptedtheCompany'sProposalonProfitAppropriationPlanin2020,whichdistributescashofRMB0.50per10shares(includingtax)withtotalsharecapitalattherecorddateofthisdistributionschemeasbase.TherecorddateoftheCompany'sinterestdistributionin2020isseton17June2021.Theex-dateisseton18June2021.Therefore,theconversionpriceofLuThaiConvertibleBondwillbeadjustedfromRMB8.76persharetoRMB8.71pershare,withtheadjustedconversionpricecomingintoforcefrom18June2021(theex-date).On22March2022,theCompanycompletedtheregistrationofgrantingreservedsharesunderthe2021restrictedshareincentiveschemeattheShenzhenBranchofChinaClear.22March2022wasdesignatedasthelistingdateforgrantingreservedrestrictedsharesoftheCompany.TheCompanygranted343incentivepersonnel5,838,000restrictedsharesatapriceofRMB3.56pershare,accountingfor0.66%oftotalsharecapitaloftheCompany.ThesourceofthestockisRMBA-shareordinarysharesissuedbytheCompanytoincentivepersonnel.Therefore,theconversionpriceofLuThaiconvertiblebondwillbeadjustedfromRMB8.71persharetoRMB8.68pershare,withtheadjustedconversionpricecomingintoforcefrom22March2022.The2021annualgeneralmeetingconvenedon20May2022deliberatedandadoptedtheCompany'sProposalonProfitAppropriationPlanin2021,whichdistributescashofRMB0.70pertenshares(includingtax)withtotalsharecapitalattherecorddateofthisdistributionschemeasbase.TherecorddateoftheCompany'sinterestdistributionin2021wasseton22June2022.Theex-datewasseton23June2022.Therefore,theconversionpriceofLuThaiconvertiblebondwillbeadjustedfromRMB8.68persharetoRMB8.61pershare,withtheadjustedconversionpricecomingintoforcefrom23June2022.TheCompanycompletedtheformalitiesforcancellationofthe23,935,748repurchasedBsharesattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimitedon25May2023.InaccordancewiththeissuanceclausesintheCompany’sProspectusandrelevantregulationsoftheChinaSecuritiesRegulatoryCommission(CSRC)ontheissuanceofconvertiblebonds,theconversionpriceofLuThaiconvertiblebondshallbeadjustedfromRMB8.61persharetoRMB8.73pershare.Theadjustedconversionpricecameintoforceon26May2023.TheCompanyimplementedthe2022EquityDistributionPlanon16June2023.InaccordancewiththeissuanceclausesintheCompany’sProspectusandrelevantregulationsoftheCSRContheissuanceofconvertiblebonds,theconversionpriceofLuThaiconvertiblebondshallbeadjustedfromRMB8.73persharetoRMB8.63pershare.Theadjustedconversionpricecameintoforceon16June2023.
2.AccumulativeConversion
?Applicable□Notapplicable
| Abbreviation | Startdate | Totalcirculation(piece) | Totalamount | Accumulativeamountconverted(RMB) | Accumulativesharesconverted(share) | Convertedsharesas%oftotalsharesissuedbytheCompanybeforethestartdateofconversion | Unconvertedamount(RMB) | Unconvertedamountas%oftotalamount |
| LuThaiConvertibleBonds | 15October2020 | 14,000,000 | 1,400,000,000.00 | 148,600.00 | 16,726 | 0.00% | 1,399,851,400.00 | 99.99% |
3.Top10ConvertibleBondHolders
| No. | Nameofholders | Natureofholders | Numberofconvertiblebondsheldattheperiod-end(share) | Amountofconvertiblebondsheldattheperiod-end(RMB) | As%ofconvertiblebondsheldattheperiod-end |
| 1 | ChinaConstructionBank-EFundEnhancedIncomeBondSecuritiesInvestmentFund | Other | 694,212 | 69,421,200.00 | 4.96% |
| 2 | NorthwestInvestmentManagement(HongKong)Limited-NorthwestFeilongFundCo.,Ltd. | Foreignlegalperson | 679,990 | 67,999,000.00 | 4.86% |
| 3 | FuguoFuminFixedIncomePensionProduct-ChinaConstructionBankCorporation | Other | 673,269 | 67,326,900.00 | 4.81% |
| 4 | ShanghaiPudongDevelopmentBankCo.,Ltd.-EFundYuxiangReturnBondSecuritiesInvestmentBond | Other | 485,552 | 48,555,200.00 | 3.47% |
| 5 | IndustrialandCommercialBankofChina-ChinaUniversalConvertibleBondSecuritiesInvestmentFund | Other | 391,048 | 39,104,800.00 | 2.79% |
| 6 | ChinaMerchantsBankCo.,Ltd.-DongfanghongJuliBondSecuritiesInvestmentFund | Other | 305,911 | 30,591,100.00 | 2.19% |
| 7 | BasicEndowmentInsuranceFund(Portfolio102) | Other | 273,171 | 27,317,100.00 | 1.95% |
| 8 | ChinaMerchantsBankCo.,Ltd.-BoseraSolid-returnBondListedOpen-endedFund(LOF) | Other | 251,220 | 25,122,000.00 | 1.79% |
| 9 | AgriculturalBankofChina-EssenceTargetIncomeBondSecuritiesInvestmentFund | Other | 219,059 | 21,905,900.00 | 1.56% |
| 10 | ChinaAssetManagementLivingLongerNo.9FixedIncomePensionProduct-ChinaMerchantsBankCo.,Ltd. | Other | 211,147 | 21,114,700.00 | 1.51% |
4.SignificantChangesinProfitability,AssetsConditionandCreditStatusofGuarantors
□Applicable?Notapplicable
5.TheCompany’sLiabilities,CreditChangesatthePeriod-endandCashArrangementstoRepayDebtsinFutureYears
Fortherelevantindicators,pleaserefertothePartIXBonds-VITheMajorAccountingDataandtheFinancialIndicatorsoftheRecent2YearsoftheCompanyupthePeriod-end.ThecreditratingoftheCompany'sconvertiblebondsforthereportingperiodisAA+,whichhasnotchangedcomparedwiththatofthesameperiodoflastyear.VLossesofScopeofConsolidatedFinancialStatementsduringtheReportingPeriodExceeding10%ofNetAssetsupthePeriod-endofLastYear
□Applicable?Notapplicable
VITheMajorAccountingDataandtheFinancialIndicatorsoftheRecent2YearsoftheCompanyupthePeriod-end
Unit:RMB’0,000
| Item | 30June2023 | 31December2022 | Increase/decrease |
| Currentratio | 3.08 | 2.99 | 3.01% |
| Debt/assetratio | 28.99% | 29.53% | -0.54% |
| Quickratio | 1.89 | 1.86 | 1.61% |
| H12023 | H12022 | YoYincrease/decrease | |
| Netprofitbeforeexceptionalgainsandlosses | 19,180.99 | 36,557.92 | -47.53% |
| EBITDA/debtratio | 20.29% | 21.76% | -1.47% |
| Interestcover(times) | 5.49 | 9.19 | -40.26% |
| Cash-to-interestcover(times) | 2.95 | 2.68 | 10.07% |
| EBITDA-to-interestcover(times) | 10.90 | 13.54 | -19.50% |
| Loanrepaymentratio | 100.00% | 100.00% | |
| Interestpaymentratio | 100.00% | 100.00% |
PartXFinancialStatements
IIndependentAuditor’sReportAretheseinterimfinancialstatementsauditedbyanindependentauditor?
□Yes?NoTheyareunauditedbysuchanauditor.
IIFinancialStatementsCurrencyunitforthefinancialstatementsandthenotesthereto:RMB
1.ConsolidatedBalanceSheet
PreparedbyLuThaiTextileCo.,Ltd.
30June2023
Unit:RMB
| Item | 30June2023 | 1January2023 |
| Currentassets: | ||
| Monetaryassets | 1,551,443,291.97 | 2,067,768,253.97 |
| Held-for-tradingfinancialassets | 918,839,425.27 | 267,695,159.48 |
| Notesreceivable | 197,304,993.41 | 168,755,715.84 |
| Accountsreceivable | 534,155,829.19 | 660,427,526.19 |
| Accountsreceivablefinancing | 24,096,385.95 | 11,208,304.78 |
| Prepayments | 127,627,785.82 | 95,021,598.32 |
| Otherreceivables | 48,082,107.24 | 89,855,659.99 |
| Including:Interestreceivable | ||
| Dividendsreceivable | 18,563,298.39 | 18,563,298.39 |
| Inventories | 2,222,843,058.48 | 2,107,849,708.33 |
| Othercurrentassets | 117,577,811.23 | 76,847,903.07 |
| Totalcurrentassets | 5,741,970,688.56 | 5,545,429,829.97 |
| Non-currentassets: | ||
| Long-termreceivables | ||
| Long-termequityinvestment | 182,835,476.83 | 184,168,625.69 |
| Otherequityinstrumentinvestment | ||
| Othernon-currentfinancialassets | 89,080,000.00 | 337,110,000.00 |
| Investmentproperty | 20,010,251.80 | 20,460,935.21 |
| Fixedassets | 5,686,991,158.97 | 5,807,847,850.67 |
| Constructioninprogress | 538,603,980.88 | 199,943,501.73 |
| Right-of-useassets | 487,341,555.12 | 481,420,505.31 |
| Intangibleassets | 347,981,438.31 | 352,889,578.06 |
| Developmentcosts | ||
| Goodwill | 20,563,803.29 | 20,563,803.29 |
| Long-termdeferredexpenses | 2,343,814.17 | 2,948,981.97 |
| Deferredincometaxassets | 145,560,608.14 | 155,774,523.25 |
| Othernon-currentassets | 310,689,333.60 | 242,539,466.88 |
| Totalnon-currentassets | 7,832,001,421.11 | 7,805,667,772.06 |
| Totalassets | 13,573,972,109.67 | 13,351,097,602.03 |
| Currentliabilities: | ||
| Short-termborrowings | 527,384,198.32 | 518,946,415.96 |
| Held-for-tradingfinancialliabilities | 14,848,448.10 | 4,276,929.70 |
| Derivativefinancialliabilities | ||
| Notespayable | 55,450,000.00 | |
| Accountspayable | 260,310,397.35 | 246,588,463.74 |
| Advancesfromcustomers | ||
| Contractliabilities | 183,455,240.54 | 206,879,672.53 |
| Payrollpayable | 248,100,769.78 | 330,027,159.72 |
| Taxespayable | 34,029,875.93 | 31,483,442.06 |
| Otherpayables | 53,589,227.72 | 83,357,296.71 |
| Including:Interestpayable | ||
| Dividendspayable | 441,113.64 | 441,113.64 |
| Held-for-saleliabilities | ||
| Currentportionofnon-currentliabilities | 487,410,386.14 | 307,921,837.35 |
| Othercurrentliabilities | 53,266,227.69 | 66,889,025.17 |
| Totalcurrentliabilities | 1,862,394,771.57 | 1,851,820,242.94 |
| Non-currentliabilities: | ||
| Long-termborrowings | 164,369,828.94 | 186,431,096.24 |
| Bondspayable | 1,449,985,859.18 | 1,438,162,231.27 |
| Leaseliabilities | 97,740,959.65 | 98,501,303.83 |
| Long-termpayables |
| Long-termpayrollpayable | 57,417,997.65 | 57,417,997.65 |
| Provisions | ||
| Deferredincome | 153,040,887.32 | 159,615,037.36 |
| Deferredincometaxliabilities | 150,232,232.76 | 151,243,432.80 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 2,072,787,765.50 | 2,091,371,099.15 |
| Totalliabilities | 3,935,182,537.07 | 3,943,191,342.09 |
| Owners’equity: | ||
| Sharecapital | 863,697,519.00 | 887,633,151.00 |
| Otherequityinstruments | 71,383,779.76 | 71,383,830.75 |
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Capitalreserves | 331,086,224.51 | 395,872,135.71 |
| Less:Treasurystock | 31,843,365.00 | 154,396,198.73 |
| Othercomprehensiveincome | 178,501,177.97 | 107,628,898.09 |
| Specificreserve | 2,777,410.71 | |
| Surplusreserves | 1,215,124,336.54 | 1,215,124,336.54 |
| Generalreserve | ||
| Retainedearnings | 6,626,197,965.60 | 6,490,910,719.35 |
| TotalequityattributabletoownersoftheCompanyastheparent | 9,256,925,049.09 | 9,014,156,872.71 |
| Non-controllinginterests | 381,864,523.51 | 393,749,387.23 |
| Totalowners’equity | 9,638,789,572.60 | 9,407,906,259.94 |
| Totalliabilitiesandowners’equity | 13,573,972,109.67 | 13,351,097,602.03 |
Legalrepresentative:LiuZibinChiefAccountant:ZhangKemingFinancialManager:ZhangKeming
2.BalanceSheetoftheCompanyastheParent
Unit:RMB
| Item | 30June2023 | 1January2023 |
| Currentassets: | ||
| Monetaryassets | 904,068,783.73 | 1,493,189,218.38 |
| Held-for-tradingfinancialassets | 512,161,523.73 | 14,782,050.00 |
| Derivativefinancialassets | ||
| Notesreceivable | 78,506,812.32 | 99,348,764.36 |
| Accountsreceivable | 273,137,962.00 | 357,917,050.71 |
| Accountsreceivablefinancing | 15,197,301.50 | 4,977,876.31 |
| Prepayments | 85,041,332.24 | 52,932,385.24 |
| Otherreceivables | 2,269,454,600.86 | 1,982,595,534.99 |
| Including:Interestreceivable | ||
| Dividendsreceivable | 185,745,705.03 | 18,563,298.39 |
| Inventories | 1,129,000,002.56 | 1,032,571,546.29 |
| Contractassets | ||
| Available-for-saleassets | ||
| Currentportionofnon-currentassets | ||
| Othercurrentassets | 1,706,749.61 | 12,117,078.06 |
| Totalcurrentassets | 5,268,275,068.55 | 5,050,431,504.34 |
| Non-currentassets: | ||
| Long-termreceivables | ||
| Long-termequityinvestments | 3,289,971,143.33 | 3,069,423,182.09 |
| Investmentsinotherequityinstruments | ||
| Othernon-currentfinancialassets | 77,080,000.00 | 325,110,000.00 |
| Investmentproperty | 66,480,366.32 | 68,234,288.24 |
| Fixedassets | 2,167,477,108.69 | 2,239,204,199.53 |
| Constructioninprogress | 27,581,111.26 | 14,457,725.94 |
| Right-of-useassets | 97,587,641.75 | 102,526,417.74 |
| Intangibleassets | 200,822,940.42 | 203,872,938.32 |
| Developmentcosts | ||
| Goodwill | ||
| Long-termdeferredexpenses | 907,110.12 | 1,124,816.52 |
| Deferredincometaxassets | 65,188,470.57 | 70,230,669.83 |
| Othernon-currentassets | 137,366,526.25 | 180,305,870.74 |
| Totalnon-currentassets | 6,130,462,418.71 | 6,274,490,108.95 |
| Totalassets | 11,398,737,487.26 | 11,324,921,613.29 |
| Currentliabilities: | ||
| Short-termborrowings | 87,830,718.55 | 73,701,088.21 |
| Held-for-tradingfinancialliabilities | 2,834,100.00 | |
| Notespayable | 55,000,000.00 | 213,094,435.63 |
| Accountspayable | 86,113,714.25 | 100,586,843.48 |
| Advancesfromcustomers | ||
| Contractliabilities | 72,897,402.82 | 91,983,662.84 |
| Payrollpayable | 170,302,387.74 | 231,917,717.02 |
| Taxespayable | 23,491,218.07 | 9,698,693.68 |
| Otherpayables | 49,283,273.91 | 164,914,178.73 |
| Including:Interestpayable | ||
| Dividendspayable | 441,113.64 | 441,113.64 |
| Liabilitiesheldforsale | ||
| Currentportionofnon-currentliabilities | 487,410,386.14 | 307,273,908.99 |
| Othercurrentliabilities | 37,016,915.36 | 42,075,638.45 |
| Totalcurrentliabilities | 1,072,180,116.84 | 1,235,246,167.03 |
| Non-currentliabilities: | ||
| Long-termborrowings | 164,369,828.94 | 186,431,096.24 |
| Bondspayable | 1,449,985,859.18 | 1,438,162,231.27 |
| Leaseliabilities | 99,528,524.92 | 100,877,929.66 |
| Long-termpayables | ||
| Long-termpayrollpayable | 57,417,997.65 | 57,417,997.65 |
| Provisions | ||
| Deferredincome | 114,186,124.70 | 119,562,568.94 |
| Deferredincometaxliabilities | 109,964,122.90 | 112,945,049.91 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 1,995,452,458.29 | 2,015,396,873.67 |
| Totalliabilities | 3,067,632,575.13 | 3,250,643,040.70 |
| Owners’equity: | ||
| Sharecapital | 863,697,519.00 | 887,633,151.00 |
| Otherequityinstruments | 71,383,779.76 | 71,383,830.75 |
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Capitalreserves | 392,466,258.75 | 457,252,169.95 |
| Less:Treasurystock | 31,843,365.00 | 154,396,198.73 |
| Othercomprehensiveincome | -107,571.25 | -30,162.34 |
| Specificreserve | ||
| Surplusreserves | 1,212,015,596.90 | 1,212,015,596.90 |
| Retainedearnings | 5,823,492,693.97 | 5,600,420,185.06 |
| Totalowners’equity | 8,331,104,912.13 | 8,074,278,572.59 |
| Totalliabilitiesandowners’equity | 11,398,737,487.26 | 11,324,921,613.29 |
3.ConsolidatedIncomeStatement
Unit:RMB
| Item | H12023 | H12022 |
| 1.Revenue | 2,840,491,262.47 | 3,330,294,463.25 |
| Including:Operatingrevenue | 2,840,491,262.47 | 3,330,294,463.25 |
| 2.Costsandexpenses | 2,584,294,892.42 | 2,825,026,554.05 |
| Including:Costofsales | 2,233,932,367.67 | 2,497,333,041.59 |
| Taxesandsurcharges | 34,360,360.36 | 34,501,258.01 |
| Sellingexpense | 66,411,247.30 | 59,894,351.04 |
| Administrativeexpense | 175,308,361.39 | 190,280,143.57 |
| Developmentcost | 131,290,032.04 | 114,951,241.87 |
| Financecosts | -57,007,476.34 | -71,933,482.03 |
| Including:Interestexpense | 39,502,439.47 | 44,216,587.17 |
| Interestincome | 30,385,764.21 | 22,350,147.90 |
| Add:Otherincome | 27,724,922.40 | 27,720,772.37 |
| Returnoninvestment(“-”forloss) | 46,798,662.00 | 1,448,571.38 |
| Including:Shareofprofitorlossofjointventuresandassociates | -1,333,148.86 | -1,076,939.49 |
| Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
| Exchangegain(“-”forloss) | ||
| Netgainonexposurehedges(“-”forloss) | ||
| Gainonchangesinfairvalue(“-”forloss) | -42,471,705.81 | 3,069,030.56 |
| Creditimpairmentloss(“-”forloss) | 16,809,724.05 | 1,994,592.93 |
| Assetimpairmentloss(“-”forloss) | -75,665,553.95 | -81,695,738.30 |
| Assetdisposalincome(“-”forloss) | -404,759.16 | 2,668,023.30 |
| 3.Operatingprofit(“-”forloss) | 228,987,659.58 | 460,473,161.44 |
| Add:Non-operatingincome | 4,231,250.89 | 3,026,253.46 |
| Less:Non-operatingexpense | 2,464,360.53 | 2,165,139.66 |
| 4.Profitbeforetax(“-”forloss) | 230,754,549.94 | 461,334,275.24 |
| Less:Incometaxexpense | 20,991,415.51 | 67,767,576.50 |
| 5.Netprofit(“-”fornetloss) | 209,763,134.43 | 393,566,698.74 |
| 5.1Byoperatingcontinuity | ||
| 5.1.1Netprofitfromcontinuingoperations(“-”fornetloss) | 209,763,134.43 | 393,566,698.74 |
| 5.1.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
| 5.2Byownership | ||
| 5.2.1NetprofitattributabletoshareholdersoftheCompanyastheparent(“-”fornetloss) | 221,647,998.15 | 393,950,852.46 |
| 5.2.1Netprofitattributabletonon-controllinginterests(“-”fornetloss) | -11,884,863.72 | -384,153.72 |
| 6.Othercomprehensiveincome,netoftax | 70,872,279.88 | 80,891,071.35 |
| AttributabletoownersoftheCompanyastheparent | 70,872,279.88 | 80,891,071.35 |
| 6.1Itemsthatwillnotbereclassifiedtoprofitorloss | ||
| 6.1.1Changescausedbyre-measurementsondefinedbenefitschemes | ||
| 6.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
| 6.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | ||
| 6.1.4Changesinthefairvaluearisingfromchangesinowncreditrisk | ||
| 6.1.5Other | ||
| 6.2Itemsthatwillbereclassifiedtoprofitorloss | 70,872,279.88 | 80,891,071.35 |
| 6.2.1Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod | ||
| 6.2.2Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
| 6.2.3Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 6.2.4Creditimpairmentallowanceforinvestmentsinotherdebtobligations | ||
| 6.2.5Reserveforcashflowhedges | ||
| 6.2.6Differencesarisingfromthetranslationofforeigncurrency-denominatedfinancialstatements | 70,961,260.92 | 80,772,687.91 |
| 6.2.7Other | -88,981.04 | 118,383.44 |
| Attributabletonon-controllinginterests | ||
| 7.Totalcomprehensiveincome | 280,635,414.31 | 474,457,770.09 |
| AttributabletoownersoftheCompanyastheparent | 292,520,278.03 | 474,841,923.81 |
| Attributabletonon-controllinginterests | -11,884,863.72 | -384,153.72 |
| 8.Earningspershare | ||
| 8.1Basicearningspershare | 0.26 | 0.45 |
| 8.2Dilutedearningspershare | 0.23 | 0.39 |
Wherebusinesscombinationsundercommoncontroloccurredinthecurrentperiod,thenetprofitachievedbytheacquireesbeforethecombinationswasRMB0.00,withtheamountforthesameperiodoflastyearbeingRMB0.00.Legalrepresentative:LiuZibinChiefAccountant:ZhangKemingFinancialManager:ZhangKeming
4.IncomeStatementoftheCompanyastheParent
Unit:RMB
| Item | H12023 | H12022 |
| 1.Operatingrevenue | 1,609,909,822.43 | 2,096,728,996.78 |
| Less:Costofsales | 1,277,031,824.62 | 1,554,834,847.73 |
| Taxesandsurcharges | 21,096,525.14 | 24,600,731.76 |
| Sellingexpense | 43,132,295.18 | 43,382,853.03 |
| Administrativeexpense | 109,290,133.53 | 133,045,963.42 |
| R&Dexpense | 89,977,015.81 | 76,010,921.94 |
| Financecosts | -76,975,133.92 | -82,597,376.96 |
| Including:Interestexpense | 17,569,729.67 | 15,888,011.59 |
| Interestincome | 22,004,783.28 | 14,238,816.94 |
| Add:Otherincome | 8,593,238.09 | 3,914,908.50 |
| Returnoninvestment(“-”forloss) | 219,763,969.54 | 220,205,603.25 |
| Including:Shareofprofitorlossofjointventuresandassociates | -1,333,148.86 | -1,076,939.49 |
| Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
| Netgainonexposurehedges(“-”forloss) | ||
| Gainonchangesinfairvalue(“-”forloss) | -45,480,664.13 | 1,415,323.45 |
| Creditimpairmentloss(“-”forloss) | 6,259,781.13 | 216,712.40 |
| Assetimpairmentloss(“-”forloss) | -19,582,479.49 | -35,555,171.46 |
| Assetdisposalincome(“-”forloss) | -295,512.79 | 1,800,173.51 |
| 2.Operatingprofit(“-”forloss) | 315,615,494.42 | 539,448,605.51 |
| Add:Non-operatingincome | 2,814,084.00 | 2,262,303.15 |
| Less:Non-operatingexpense | 792,483.54 | 1,108,474.11 |
| 3.Profitbeforetax(“-”forloss) | 317,637,094.88 | 540,602,434.55 |
| Less:Incometaxexpense | 8,203,834.07 | 53,835,226.09 |
| 4.Netprofit(“-”fornetloss) | 309,433,260.81 | 486,767,208.46 |
| 4.1Netprofitfromcontinuingoperations(“-”fornetloss) | 309,433,260.81 | 486,767,208.46 |
| 4.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
| 5.Othercomprehensiveincome,netoftax | -77,408.91 | 220,993.22 |
| 5.1Itemsthatwillnotbereclassifiedtoprofitorloss | ||
| 5.1.1Changescausedbyre-measurementsondefinedbenefitschemes | ||
| 5.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
| 5.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | ||
| 5.1.4Changesinthefairvaluearisingfromchangesinowncreditrisk | ||
| 5.1.5Other | ||
| 5.2Itemsthatwillbereclassifiedtoprofitorloss | -77,408.91 | 220,993.22 |
| 5.2.1Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod | ||
| 5.2.2Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
| 5.2.3Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 5.2.4Creditimpairmentallowanceforinvestmentsinotherdebtobligations | ||
| 5.2.5Reserveforcashflowhedges | ||
| 5.2.6Differencesarisingfromthetranslationofforeigncurrency-denominatedfinancialstatements | ||
| 5.2.7Other | -77,408.91 | 220,993.22 |
| 6.Totalcomprehensiveincome | 309,355,851.90 | 486,988,201.68 |
| 7.Earningspershare | ||
| 7.1Basicearningspershare | 0.36 | 0.56 |
| 7.2Dilutedearningspershare | 0.32 | 0.49 |
5.ConsolidatedCashFlowStatement
Unit:RMB
| Item | H12023 | H12022 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 2,809,154,113.13 | 3,081,011,881.19 |
| Taxrebates | 75,305,681.28 | 118,817,131.92 |
| Cashgeneratedfromotheroperatingactivities | 68,114,428.99 | 17,250,057.84 |
| Subtotalofcashgeneratedfromoperatingactivities | 2,952,574,223.40 | 3,217,079,070.95 |
| Paymentsforcommoditiesandservices | 1,823,197,285.44 | 2,128,158,530.89 |
| Cashpaidtoandforemployees | 849,321,563.91 | 821,334,821.91 |
| Taxespaid | 64,065,437.19 | 80,208,573.82 |
| Cashusedinotheroperatingactivities | 67,379,719.88 | 69,894,735.59 |
| Subtotalofcashusedinoperatingactivities | 2,803,964,006.42 | 3,099,596,662.21 |
| Netcashgeneratedfrom/usedinoperatingactivities | 148,610,216.98 | 117,482,408.74 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestment | 1,525,821,962.14 | 13,323,521.50 |
| Returnoninvestment | 22,361,582.82 | 29,960,712.68 |
| Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 1,794,347.29 | 6,647,359.73 |
| Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | ||
| Cashgeneratedfromotherinvestingactivities | 61,197,806.89 | 32,608,417.38 |
| Subtotalofcashgeneratedfrominvestingactivities | 1,611,175,699.14 | 82,540,011.29 |
| Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 352,801,937.92 | 150,968,099.58 |
| Paymentsforinvestments | 2,006,213,736.27 | 280,000,000.00 |
| Cashusedinotherinvestingactivities | 3,894,036.91 | 173,868,706.94 |
| Subtotalofcashusedininvestingactivities | 2,362,909,711.10 | 604,836,806.52 |
| Netcashgeneratedfrom/usedininvestingactivities | -751,734,011.96 | -522,296,795.23 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | 20,000,880.00 | |
| Including:Capitalcontributionsbynon-controllingintereststosubsidiaries | ||
| Borrowingsraised | 590,526,602.96 | 1,017,900,674.25 |
| Cashgeneratedfromotherfinancingactivities | ||
| Subtotalofcashgeneratedfromfinancingactivities | 590,526,602.96 | 1,037,901,554.25 |
| Repaymentofborrowings | 416,309,860.45 | 793,712,239.85 |
| Interestanddividendspaid | 113,125,135.43 | 89,198,073.90 |
| Including:Dividendspaidbysubsidiariestonon-controllinginterests | ||
| Cashusedinotherfinancingactivities | 9,505,516.17 | 18,218,984.29 |
| Subtotalofcashusedinfinancingactivities | 538,940,512.05 | 901,129,298.04 |
| Netcashgeneratedfrom/usedinfinancingactivities | 51,586,090.91 | 136,772,256.21 |
| 4.Effectofforeignexchangerateschangesoncashandcashequivalents | 18,508,217.96 | 27,668,484.46 |
| 5.Netincreaseincashandcashequivalents | -533,029,486.11 | -240,373,645.82 |
| Add:Cashandcashequivalents,beginningoftheperiod | 1,822,897,270.16 | 1,970,006,884.89 |
| 6.Cashandcashequivalents,endoftheperiod | 1,289,867,784.05 | 1,729,633,239.07 |
6.CashFlowStatementoftheCompanyastheParent
Unit:RMB
| Item | H12023 | H12022 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 1,621,793,418.78 | 2,011,005,609.32 |
| Taxrebates | 35,559,906.66 | 23,074,436.96 |
| Cashgeneratedfromotheroperatingactivities | 56,719,401.33 | 10,572,238.74 |
| Subtotalofcashgeneratedfromoperatingactivities | 1,714,072,726.77 | 2,044,652,285.02 |
| Paymentsforcommoditiesandservices | 1,259,042,871.11 | 1,331,190,780.98 |
| Cashpaidtoandforemployees | 459,317,676.05 | 484,573,239.10 |
| Taxespaid | 24,388,725.60 | 50,678,412.46 |
| Cashusedinotheroperatingactivities | 33,086,342.08 | 42,450,664.45 |
| Subtotalofcashusedinoperatingactivities | 1,775,835,614.84 | 1,908,893,096.99 |
| Netcashgeneratedfrom/usedinoperatingactivities | -61,762,888.07 | 135,759,188.03 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestment | 1,395,821,962.14 | 13,323,521.50 |
| Returnoninvestment | 21,094,108.64 | 186,817,055.74 |
| Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 2,637,307.50 | 7,706,280.16 |
| Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | 431,493,365.00 | |
| Cashgeneratedfromotherinvestingactivities | 1,200,787,279.07 | 1,095,700,570.04 |
| Subtotalofcashgeneratedfrominvestingactivities | 3,051,834,022.35 | 1,303,547,427.44 |
7.ConsolidatedStatementsofChangesinOwners’Equity
| Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 32,526,882.27 | 39,865,621.95 |
| Paymentsforinvestments | 2,318,818,000.00 | 202,500,000.00 |
| Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits | ||
| Cashusedinotherinvestingactivities | 1,238,001,959.48 | 1,343,713,654.95 |
| Subtotalofcashusedininvestingactivities | 3,589,346,841.75 | 1,586,079,276.90 |
| Netcashgeneratedfrom/usedininvestingactivities | -537,512,819.40 | -282,531,849.46 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | 20,000,880.00 | |
| Borrowingsraised | 188,065,597.90 | 507,937,437.39 |
| Cashgeneratedfromotherfinancingactivities | 154,870,600.00 | |
| Subtotalofcashgeneratedfromfinancingactivities | 188,065,597.90 | 682,808,917.39 |
| Repaymentofborrowings | 13,868,839.85 | 416,282,653.26 |
| Interestanddividendspaid | 110,643,219.41 | 85,575,684.96 |
| Cashusedinotherfinancingactivities | 92,590,001.16 | 18,030,031.87 |
| Subtotalofcashusedinfinancingactivities | 217,102,060.42 | 519,888,370.09 |
| Netcashgeneratedfrom/usedinfinancingactivities | -29,036,462.52 | 162,920,547.30 |
| 4.Effectofforeignexchangerateschangesoncashandcashequivalents | 8,061,427.42 | 9,506,927.55 |
| 5.Netincreaseincashandcashequivalents | -620,250,742.57 | 25,654,813.42 |
| Add:Cashandcashequivalents,beginningoftheperiod | 1,283,846,116.80 | 977,713,296.25 |
| 6.Cashandcashequivalents,endoftheperiod | 663,595,374.23 | 1,003,368,109.67 |
H12023
Unit:RMB
| Item | H12023 | ||||||||||||||
| EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | Other | Subtotal | |||||
| Preferredshares | Perpetualbonds | Other | |||||||||||||
| 1.Balancesasattheendoftheprioryear | 887,633,151.00 | 71,383,830.75 | 395,872,135.71 | 154,396,198.73 | 107,628,898.09 | 1,215,124,336.54 | 6,490,910,719.35 | 9,014,156,872.71 | 393,749,387.23 | 9,407,906,259.94 | |||||
| Add:Adjustmentsforchangedaccountingpolicies | |||||||||||||||
| Adjustmentsforcorrectionsofprevious | |||||||||||||||
| errors | ||||||||||||||
| Adjustmentsforbusinesscombinationsundercommoncontrol | ||||||||||||||
| Otheradjustments | ||||||||||||||
| 2.Balancesasatthebeginningoftheyear | 887,633,151.00 | 71,383,830.75 | 395,872,135.71 | 154,396,198.73 | 107,628,898.09 | 1,215,124,336.54 | 6,490,910,719.35 | 9,014,156,872.71 | 393,749,387.23 | 9,407,906,259.94 | ||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | -23,935,632.00 | -50.99 | -64,785,911.20 | -122,552,833.73 | 70,872,279.88 | 2,777,410.71 | 135,287,246.25 | 242,768,176.38 | -11,884,863.72 | 230,883,312.66 | ||||
| 3.1 | 70,872,279.88 | 221,647,998.15 | 292,520,278.03 | -11,884,86 | 280,635,414.31 |
| Totalcomprehensiveincome | 3.72 | ||||||||
| 3.2Capitalincreasedandreducedbyowners | -23,935,632.00 | -50.99 | -64,785,911.20 | -122,552,833.73 | 33,831,239.54 | 33,831,239.54 | |||
| 3.2.1Ordinarysharesincreasedbyshareholders | 116.00 | 923.91 | 1,039.91 | 1,039.91 | |||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstrumen |
| ts | |||||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | 11,076,415.02 | 11,076,415.02 | 11,076,415.02 | ||||||||
| 3.2.4Other | -23,935,748.00 | -50.99 | -75,863,250.13 | -122,552,833.73 | 22,753,784.61 | 22,753,784.61 | |||||
| 3.3Profitdistribution | -86,360,751.90 | -86,360,751.90 | -86,360,751.90 | ||||||||
| 3.3.1Appropriationtosurplusreserves | |||||||||||
| 3.3.2Appropriationtogeneralreserve | |||||||||||
| 3.3.3Appropri | -86,360,751.90 | -86,360,751.90 | -86,360,751.90 |
| ationtoowners(orshareholders) |
| 3.3.4Other |
| 3.4Transferswithinowners’equity |
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves |
| 3.4.2Increaseincapital(orsharecapital)from |
| surplusreserves |
| 3.4.3Lossoffsetbysurplusreserves |
| 3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings |
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings |
| 3.4.6Other | ||||||||||||||
| 3.5Specificreserve | 2,777,410.71 | 2,777,410.71 | 2,777,410.71 | |||||||||||
| 3.5.1Increaseintheperiod | 5,275,200.00 | 5,275,200.00 | 5,275,200.00 | |||||||||||
| 3.5.2Usedintheperiod | 2,497,789.29 | 2,497,789.29 | 2,497,789.29 | |||||||||||
| 3.6Other | ||||||||||||||
| 4.Balancesasattheendoftheperiod | 863,697,519.00 | 71,383,779.76 | 331,086,224.51 | 31,843,365.00 | 178,501,177.97 | 2,777,410.71 | 1,215,124,336.54 | 6,626,197,965.60 | 9,256,925,049.09 | 381,864,523.51 | 9,638,789,572.60 |
H12022
Unit:RMB
| Item | H12022 | ||||||||||||||
| EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensive | Specificreser | Surplusreserves | Generalreser | Retainedearnings | Other | Subtotal | |||||
| Preferred | Perpetual | Other | |||||||||||||
| shares | bonds | income | ve | ve | |||||||||||
| 1.Balancesasattheendoftheprioryear | 882,341,295.00 | 71,384,656.84 | 340,587,387.65 | 78,908,300.00 | -36,423,748.37 | 1,215,124,336.54 | 5,589,201,772.37 | 7,983,307,400.03 | 383,812,031.90 | 8,367,119,431.93 | |||||
| Add:Adjustmentsforchangedaccountingpolicies | |||||||||||||||
| Adjustmentsforcorrectionsofpreviouserrors | |||||||||||||||
| Adjustmentsforbusinesscombinationsundercommon |
| control | ||||||||||||||
| Otheradjustments | ||||||||||||||
| 2.Balancesasatthebeginningoftheyear | 882,341,295.00 | 71,384,656.84 | 340,587,387.65 | 78,908,300.00 | -36,423,748.37 | 1,215,124,336.54 | 5,589,201,772.37 | 7,983,307,400.03 | 383,812,031.90 | 8,367,119,431.93 | ||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | 5,599,856.00 | -826.09 | 38,543,511.51 | -11,223,400.00 | 80,891,071.35 | 331,794,980.01 | 468,051,992.78 | -384,153.72 | 467,667,839.06 | |||||
| 3.1Totalcomprehensiveincome | 80,891,071.35 | 393,950,852.46 | 474,841,923.81 | -384,153.72 | 474,457,770.09 | |||||||||
| 3.2Capitalincreasedandreduced | 5,599,856.00 | -826.09 | 38,543,511.51 | -11,223,400.00 | 55,365,941.42 | 55,365,941.42 |
| byowners | |||||||||
| 3.2.1Ordinarysharesincreasedbyshareholders | 5,599,856.00 | 14,417,713.13 | 20,017,569.13 | 20,017,569.13 | |||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | |||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | 24,125,798.38 | 24,125,798.38 | 24,125,798.38 | ||||||
| 3.2.4 | -826.09 | -11,223,4 | 11,222,573.91 | 11,222,573.91 |
| Other | 00.00 | |||||||
| 3.3Profitdistribution | -62,155,872.45 | -62,155,872.45 | -62,155,872.45 | |||||
| 3.3.1Appropriationtosurplusreserves | ||||||||
| 3.3.2Appropriationtogeneralreserve | ||||||||
| 3.3.3Appropriationtoowners(orshareholders) | -62,155,872.45 | -62,155,872.45 | -62,155,872.45 | |||||
| 3.3.4Other | ||||||||
| 3.4Transferswithin |
| owners’equity |
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves |
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves |
| 3.4.3Lossoffsetbysurplusreserves |
| 3.4.4Changesindefined |
| benefitpensionschemestransferredtoretainedearnings |
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings |
| 3.4.6Other |
| 3.5Specificreserve |
| 3.5.1Increaseintheperiod |
| 3.5.2 |
| Usedintheperiod | ||||||||||||||
| 3.6Other | ||||||||||||||
| 4.Balancesasattheendoftheperiod | 887,941,151.00 | 71,383,830.75 | 379,130,899.16 | 67,684,900.00 | 44,467,322.98 | 1,215,124,336.54 | 5,920,996,752.38 | 8,451,359,392.81 | 383,427,878.18 | 8,834,787,270.99 |
8.StatementsofChangesinOwners’EquityoftheCompanyastheParent
H12023
Unit:RMB
| Item | H12023 | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedearnings | Other | Totalowners’equity | |||
| Preferredshares | Perpetualbonds | Other | ||||||||||
| 1.Balancesasattheendoftheprioryear | 887,633,151.00 | 71,383,830.75 | 457,252,169.95 | 154,396,198.73 | -30,162.34 | 1,212,015,596.90 | 5,600,420,185.06 | 8,074,278,572.59 | ||||
| Add:Adjustmentsforchangedaccountingpolicies | ||||||||||||
| Adjustmentsforcorrectionsofpreviouserrors | |||||||||||
| Otheradjustments | |||||||||||
| 2.Balancesasatthebeginningoftheyear | 887,633,151.00 | 71,383,830.75 | 457,252,169.95 | 154,396,198.73 | -30,162.34 | 1,212,015,596.90 | 5,600,420,185.06 | 8,074,278,572.59 | |||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | -23,935,632.00 | -50.99 | -64,785,911.20 | -122,552,833.73 | -77,408.91 | 223,072,508.91 | 256,826,339.54 | ||||
| 3.1Totalcomprehensiveincome | -77,408.91 | 309,433,260.81 | 309,355,851.90 | ||||||||
| 3.2Capitalincreasedandreducedbyowners | -23,935,632.00 | -50.99 | -64,785,911.20 | -122,552,833.73 | 33,831,239.54 | ||||||
| 3.2.1Ordinary | 116.00 | 923.91 | 1,039.91 |
| sharesincreasedbyshareholders | |||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | |||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | 11,076,415.02 | 11,076,415.02 | |||||||
| 3.2.4Other | -23,935,748.00 | -50.99 | -75,863,250.13 | -122,552,833.73 | 22,753,784.61 | ||||
| 3.3Profitdistribution | -86,360,751.90 | -86,360,751.90 | |||||||
| 3.3.1Appropriationtosurplusreserves | |||||||||
| 3.3.2Appropriationtoowners(or | -86,360,751.90 | -86,360,751.90 |
| shareholders) |
| 3.3.3Other |
| 3.4Transferswithinowners’equity |
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves |
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves |
| 3.4.3Lossoffsetbysurplusreserves |
| 3.4.4Changesin |
| definedbenefitpensionschemestransferredtoretainedearnings | |||||||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | |||||||||||
| 3.4.6Other | |||||||||||
| 3.5Specificreserve | |||||||||||
| 3.5.1Increaseintheperiod | |||||||||||
| 3.5.2Usedintheperiod | |||||||||||
| 3.6Other | |||||||||||
| 4.Balancesasattheend | 863,697,519.00 | 71,383,779.76 | 392,466,258.75 | 31,843,365.00 | -107,571.25 | 1,212,015,596.90 | 5,823,492,693.97 | 8,331,104,912.13 |
H12022
Unit:RMB
oftheperiodItem
| Item | H12022 | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedearnings | Other | Totalowners’equity | |||
| Preferredshares | Perpetualbonds | Other | ||||||||||
| 1.Balancesasattheendoftheprioryear | 882,341,295.00 | 71,384,656.84 | 401,967,421.89 | 78,908,300.00 | -293,580.24 | 1,212,015,596.90 | 4,887,481,100.66 | 7,375,988,191.05 | ||||
| Add:Adjustmentsforchangedaccountingpolicies | ||||||||||||
| Adjustmentsforcorrectionsofpreviouserrors | ||||||||||||
| Otheradjustments | ||||||||||||
| 2.Balancesasatthebeginningoftheyear | 882,341,295.00 | 71,384,656.84 | 401,967,421.89 | 78,908,300.00 | -293,580.24 | 1,212,015,596.90 | 4,887,481,100.66 | 7,375,988,191.05 | |||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | 5,599,856.00 | -826.09 | 38,543,511.51 | -11,223,400.00 | 220,993.22 | 424,611,336.01 | 480,198,270.65 | ||||
| 3.1Totalcomprehensiveincome | 220,993.22 | 486,767,208.46 | 486,988,201.68 | ||||||||
| 3.2Capitalincreasedandreducedbyowners | 5,599,856.00 | -826.09 | 38,543,511.51 | -11,223,400.00 | 55,365,941.42 | ||||||
| 3.2.1Ordinarysharesincreasedbyshareholders | 5,599,856.00 | 14,417,713.13 | 20,017,569.13 | ||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments |
| 3.2.3Share-basedpaymentsincludedinowners’equity | 24,125,798.38 | 24,125,798.38 | ||||||
| 3.2.4Other | -826.09 | -11,223,400.00 | 11,222,573.91 | |||||
| 3.3Profitdistribution | -62,155,872.45 | -62,155,872.45 | ||||||
| 3.3.1Appropriationtosurplusreserves | ||||||||
| 3.3.2Appropriationtoowners(orshareholders) | -62,155,872.45 | -62,155,872.45 | ||||||
| 3.3.3Other | ||||||||
| 3.4Transferswithinowners’ |
| equity |
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves |
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves |
| 3.4.3Lossoffsetbysurplusreserves |
| 3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings |
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | |||||||||||
| 3.4.6Other | |||||||||||
| 3.5Specificreserve | |||||||||||
| 3.5.1Increaseintheperiod | |||||||||||
| 3.5.2Usedintheperiod | |||||||||||
| 3.6Other | |||||||||||
| 4.Balancesasattheendoftheperiod | 887,941,151.00 | 71,383,830.75 | 440,510,933.40 | 67,684,900.00 | -72,587.02 | 1,212,015,596.90 | 5,312,092,436.67 | 7,856,186,461.70 |
IIICompanyProfile
LuThaiTextileCo.,Ltd.(hereinafterreferredtoasthe“Company”)isajointventureinvestedbyZiboLuchengTextileInvestmentCo.,Ltd(originallynamedZiboLuchengTextileCo.,Ltd,hereinafterreferredtoasLuchengTextile)andThailandTailunTextileCo.,Ltd.On3February1993,theCompanyisapprovedbytheformerMinistryofForeignTradeandEconomyoftheState(1993)inWJMZEHZNo.59toconvertintoajoint-stockenterprise.ZiboAdministrationforIndustryandCommerceissuedtheCompanycorporatebusinesslicensewiththeregistrationNo.ofQGLZZZNo.000066.InJuly1997,theCompanyisapprovedbytheSecuritiesCommitteeoftheDepartmentoftheStateintheZWF(1997)No.47toissue80millionsharesofdomesticallylistedforeignshare(B-shares)atthepriceofRMB1.00pershare.UponapprovedbyShenzhenStockExchangewithNo.(1997)296ListingNotice,theCompanyislistedontheShenzhenStockExchangeon19August1997withB-sharesstockcodeof200726.On24November2000,approvedbyZJGSZ[2000]No.199byCSRC,theCompanyincreasedpublicationof50millionsharesofgeneralshare(A-shares)atthebookvalueofRMB1.00,whicharelistedontheShenzhenStockExchangeon25December2000withA-sharesstockcodeof000726throughapprovalbyShenzhenStockExchangewithNo.(2000)162ListingNotice.Asapprovedby2000AnnualGeneralMeetinginMay2001,theCompanycarriedoutthedistributionplanthat10sharesofcapitalpublicreserveareconvertedto3moresharesforeach10shares.AsapprovedbyResolutionsof2001AnnualGeneralMeetinginJune2002,theCompanyimplementedthedistributionplanthat10sharesofcapitalpublicreserveareconverted3moresharesforeach10sharesagain.Asapprovedby2002AnnualGeneralMeetinginMay2003,theCompanyimplementedthedistributionplanthat10sharesofcapitalpublicreserveare2moresharesforeach10shares,andinneremployees’sharedincreasedto40.56millionshares.AsexaminedandapprovedbyZJGSZNo.[2000]199ofCSRC,theinneremployees’shareswillstartcirculation3yearslatersincelistingontheA-sharemarket.On25December2003,theinneremployees’sharesreach3yearssincelistingontheA-sharestockmarket,andtheysetoutcirculationon26December2003.AsapprovedbytheAnnualGeneralMeeting2006heldinJune2007,theCompanyimplementedtheplanonconverting10sharestoallitsshareholderswithcapitalreservesforevery10shares.Aftercapitalization,theregisteredcapitaloftheCompanywasRMB844.8648million.TheCompany,inaccordancewiththeofficialreplyonapprovingLuThaiTextileCo.,Ltd.toissueadditionalshares(ZJXK[2008]No.890document)fromCSRC,issuedtheRenminbicommonshares(Ashares)amountingto150millionshareson8December2008.Accordingtotherelevantresolutionofthe2
nd
SpecialExtraordinaryGeneralMeetingof2011,therelevantresolutionofthe15
th
Meetingofthe6
th
BoardofDirectors,theOpinionofChinaSecuritiesRegulatoryCommissionontheRestrictedShareIncentivePlanofLuThaiTextileCo.,Ltd.(Shang-Shi-Bu-Han[2011]No.206),theCompanyappliedforaregisteredcapitalincrementofRMB14.09million,whichwascontributedbyrestrictedshareincentivereceiverswithmonetaryfunds.InaccordancewiththeresolutionofProposalonRepurchasingandCancelingPartialRestrictedSharesalreadyGrantedfortheOriginalIncentiveTargetsnotReachingtheIncentiveConditionsmadeatthe23
rd
Sessionofthe6
th
BoardofDirectorson13August2012,theCompanycancelingatotalof60,000.00sharesalreadygrantedfortheoriginalincentivetargetsnotreachingtheincentiveconditions.
AccordingtothesecondtemporaryresolutionofProposaloncounterpurchaseofpartofthedomesticlistedforeignshare(Bshare)on25June2012,theCompanycounterpurchasedomesticlistedforeignshare(Bshare)48,837,300shares.AccordingtotheProposalonRepurchaseandCancelPartofUnlockedRestrictedShareoftheOriginalIncentivePersonnelnotConformingtotheIncentiveCondition,ProposalonRepurchaseandCancelunlockedRestrictedShareinSecondUnlockedPeriodofalltheIncentivePersonnelreviewedandapprovedbythe26
th
Meetingofthe6
thBoardofDirectorson27March2013,theCompanyrepurchaseandcancel4,257,000sharesownedbyoriginalpeoplewhomtomotivate.AccordingtotheProposalonRepurchaseandWrite-offofPartlyoftheOriginalIncentiveTargetsNotMetwiththeIncentiveConditionsbutGrantedRestrictedSharesapprovedonthe11
th
Meetingofthe7
thBoardofDirectorson11June2014,toexecuterepurchaseandwrite-offofthewholegrantedsharesof42,000sharesoftheoriginalincentivetargetsnotmetwiththeincentivetargetsoftheCompany.AspertheProposalonBuy-backofSomeA-andB-sharesconsideredandapprovedasaresolutionatthe1
st
specialmeetingofshareholderson5August2015,theCompanyrepurchased33,156,200domesticallylistedforeignshares(B-shares).AspertheProposalonBuy-backofSomeB-sharesconsideredandapprovedasaresolutionatthe2
nd
ExtraordinaryGeneralMeetingon23March2018,theCompanyrepurchased64,480,800domesticallylistedforeignshares(B-shares).Therewere10,800sharesoftheCompanywhichwereconvertedfromtheconvertiblebondsin2020.Inlinewiththeresolutionofthe1stExtraordinaryGeneralMeetingoftheCompanyon13May2021andtheresolutionofthe24thMeetingofthe9thBoardofDirectorson17May2021,theCompanyimplementedtherestrictedshareincentiveschemeandappliedforaregisteredcapitalincrementofRMB24,285,000whichwascontributedbyrestrictedshareincentivereceiverswithmonetaryfunds.Inlinewiththeresolutionofthe26
thMeetingofthe9
thBoardofDirectorsoftheCompanyon26August2021thattheProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveCondition,theCompanyappliedtoreducetheregisteredcapitalofRMB80,000.Therewere4,000sharesoftheCompanywhichwereconvertedfromtheconvertiblebondsin2021.InlinewiththeresolutionofthefirstExtraordinaryGeneralMeetingoftheCompanyon13May2021andtheresolutionofthe30thsessionoftheNinthBoardofDirectorson18February2022,theCompanyappliedforanincreaseofthesharecapitalbyRMB5,838,000,whichwascontributedby343restrictedshareincentivereceiverswithmonetaryfunds.Inconformitywiththeresolutionofthe30thsessionoftheNinthBoardofDirectorsoftheCompanyon18February2022,theProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveCondition,allthe240,000sharesauthorizedtotheoriginalincentivepersonnelwhodidnotconformtotheincentiveconditionoftheCompanywererepurchasedandcancelled.InconformitywiththeresolutionofthesecondsessionoftheTenthBoardofDirectorson29June2022andtheresolutionofthethirdExtraordinaryGeneralMeetingoftheCompanyon15July2022,theProposalonRepurchaseandCancelAuthorizedbutUnlockedRestrictedShareoftheIncentivePersonnelnotConformingtotheIncentiveCondition,allthe308,000sharesauthorizedtotheoriginalincentivepersonnelwhodidnotconformtotheincentiveconditionoftheCompanywererepurchasedandcancelled.Therewere1,900sharesoftheCompanywhichwereconvertedfromtheconvertiblebondsin2022.
Inlinewiththeresolutionofthe3
rd
ExtraordinaryGeneralMeetingoftheCompanyon15July2022,theProposalonRepurchasingtheDomesticallyListedForeignShares(BShares)oftheCompany,theCompanyrepurchased23,935,700Bshares.Atotalof100sharesofconvertiblebondsoftheCompanycouldbeconvertedfromJanuarytoJune2023.Asat30June2023,theCompany'sregisteredcapitalstoodatRMB863,697,500.TheCompany’sregisteredaddress:No.61,LuthaiAvenue,Hi-techDevelopmentZone,Zibo,ShandongTheCompany’sunifiedsocialcreditcode:91370300613281175KTheCompany’slegalrepresentative:LiuZibinTheCompanyestablishesthecorporategovernancestructureconsistingoftheshareholdersmeeting,theBoardofDirectorsandtheSupervisoryCommittee.Atpresent,theCompanyhassetupvariousdepartmentsincludingtheYarn-dyedFabricProductLine,GarmentProductLine,theClothingMarketingDepartment,theGlobalMarketingDepartment,theSupplyChainDepartment,LuThaiEngineeringTechnologyInstitute,theEnterpriseManagementDepartment,theFinancialManagementDepartmentandtheStrategyandMarketDepartmentetc.ThescopeofbusinessoftheCompanyanditssubsidiariesshallincludegeneralprojects:Fabrictextileprocessing;fabricprintinganddyeingprocessing;garmentmanufacturing;thesalesoftextilesandrawmaterials;clothingwholesale;clothingretail;Internetsales(exceptforthesaleofgoodsrequiringalicense);theproductionofClassImedicaldevices;theproductionofroutinemasks(non-medical);theproductionoflabourprotectionappliances;softwaredevelopment;technicalservices,developmentoftechnology,technologyconsulting,technicalexchange,technologytransferandtechnologypromotion;thesalesoftextilespecialequipment;thesalesofmechanicalandelectricalequipment;theprocurementofprimaryagriculturalproducts;businesstraining(trainingsthatrequireapprovalsuchaseducationaltrainingandvocationalskilltrainingexclusive);housinglease;theleaseofnon-residentialrealestate;theleaseoflandusageright;thesalesofspecialchemicalproducts(dangerouschemicalsexclusive);andthesalesofbuildingmaterials.Itshallalsoincludelicensedprojects(businessactivitiescanbecarriedoutlegallyandindependentlywithbusinesslicenseinadditiontoprojectsthatmustbeapprovedbylaw):Inspectionandtestingservice;cateringservice;powergenerationbusiness,powertransmissionbusiness,andpowersupply(distribution)business.(Forprojectsthatmustbeapprovedbylaw,thebusinessactivitiescanonlybecarriedoutuponapprovalbytherelevantdepartments,andthespecificbusinessprojectsshallbesubjecttotheapprovaldocumentorlicenseofrelevantdepartments)TheCompany’sfinancialstatementsandNotesthereofhavebeenapprovedbythe13
thMeetingofthe10
thBoardofDirectorsheldon17August2023.Therewere16subsidiariesincludedintotheconsolidationscopeoftheCompanyinH12023withnochangeinthescopeofconsolidatedfinancialstatements,andforthedetails,pleaserefertoNoteVIII.“ChangesofConsolidationScope”andNotesIX.“EquitiesamongOtherEntities”.
IVBasisforPreparationofFinancialStatements
1.PreparationBasis
Thisfinancialstatementispreparedinaccordancewiththeaccountingstandardsforbusinessenterprises,andtheapplicationguide,interpretationandotherrelevantregulations(hereinaftercollectivelyreferredtoas“AccountingStandardsforBusinessEnterprises”)issuedbytheMinistryofFinance.Inaddition,theCompanyalsodisclosedrelevantfinancialinformationinaccordancewiththeRegulationsonInformationDisclosureandCompilationforCompaniesPublicOfferingSecuritiesNo.15-GeneralProvisionsonFinancialReport(revisedin2014)issuedbyChinaSecuritiesRegulatoryCommission.TheCompany'saccountingisbasedontheaccrualbasis.Exceptforcertainfinancialinstruments,thisfinancialstatementismeasuredonthebasisofhistoricalcost.Iftheassetisimpaired,thecorrespondingimpairmentprovisionshallbemadeinaccordancewithrelevantregulations.
2.Going-concernThefinancialstatementsarepresentedonthebasisofcontinuingoperations.VSignificantAccountingPoliciesandEstimatesSpecificaccountingpoliciesandaccountingestimatesindicators:
TheCompanydeterminesincomerecognitionpolicyaccordingtoitsproductionandoperationcharacteristics,andthespecificaccountingpoliciesareshowninNoteV(27).
1.StatementofCompliancewiththeAccountingStandardsforBusinessEnterprises
ThefinancialstatementspreparedbytheCompanyareincompliancewithincompliancewiththeAccountingStandardsforBusinessEnterprises,whichfactuallyandcompletelypresenttheconsolidated,andtheCompany’sfinancialpositionsasat30June2023,businessresultsandcashflowsforH12023,andotherrelevantinformation.
2.FiscalYearTheCompany’sfiscalyearstartson1Januaryandendson31DecemberofeveryyearaccordingtotheGregoriancalendar.
3.OperatingCycleTheCompanyregards12monthsasanoperatingcycle.
4.RecordingCurrencyTheCompanyanditsdomesticsubsidiariesadoptRMBastherecordingcurrency.TheCompany’soverseassubsidiariesconfirmtoadoptHKDollarandUSDollarastherecordingcurrencyaccordingtheirmajoreconomicenvironmentoftheoperating.WhenpreparingthefinancialstatementsfortheReportingPeriod,theCompanyadoptedRMBastherecordingcurrency.
5.AccountingTreatmentforBusinessCombinationsundertheCommonControlandNotundertheCommonControl
(1)BusinesscombinationsunderthesamecontrolForbusinesscombinationsunderthesamecontrol,theassetsandliabilitiesofthemergedpartyacquiredbythemergerpartyinthemerger,shallbemeasuredatthecarryingvalueofthemergedpartyintheconsolidatedfinancialstatementofthefinalcontrolleronthecombinationdate.Asforthedifferencebetweenthecarryingvalueofthemergerconsiderationandcarryingvalueofthenetassetsobtainedinthemerger,thecapitalreserve(capitalstockpremium)shallbeadjusted,andifthecapitalreserve(capitalstockpremium)isinsufficienttooffset,theretainedearningsshallbeadjusted.RealizebusinesscombinationunderthesamecontrolinstepsbytransactionseveraltimesInspecificfinancialstatements,theshareofbookvalueofthenetassetsofthecombinedpartythatshallbeenjoyedinthecombinedfinancialstatementsofthefinalcontrolpartyonthecombinationdateascalculatedaccordingtotheshareholdingratioofthecombinationdateisregardedastheinitialinvestmentcostoftheinvestment;thedifferencebetweentheinitialinvestmentcostandthesumofbookvalueofinvestmentheldbeforecombinationplusthebookvalueoftheconsiderationnewlypaidonthecombinationdateisusedforadjustingthecapitalreserve(capitalstockpremium),andifthecapitalreserveisinsufficienttooffset,theretainedearningsshallbeadjusted.Inthecombinedfinancialstatements,theassetsandliabilitiesofthecombinedpartyacquiredbythecombiningpartyinthecombination,shallbemeasuredatthebookvalueofthecombinedpartyintheconsolidatedfinancialstatementofthefinalcontrolleronthecombinationdate;thedifferencebetweenthesumofthebookvalueofinvestmentheldbeforecombinationplusthebookvaluenewlypaidonthecombinationdate,andthebookvalueofthenetassetsacquiredincombination,isusedforadjustingthecapitalreserve(capitalstockpremium),andifthecapitalreserve(capitalstockpremium)isinsufficienttooffset,theretainedearningsshallbeadjusted.Thelong-termequityinvestmentheldbythecombiningpartybeforeacquiringthecontrolrightofthecombinedparty,ifrelevantgainsandlosses,othercomprehensiverevenuesandchangesinotherowner’sequityhavebeenconfirmedfromthedateofacquiringequityandthedatewhenthecombiningpartyandthecombinedpartyunderthefinalcontrolofthesameparty,whicheverislater,tothecombinationdate,shalloffsettheretainedearningsatthebeginningorcurrentprofitsandlossesintheperiodofcomparingstatements.
(2)BusinesscombinationsnotunderthesamecontrolForabusinesscombinationnotunderthesamecontrol,thecostofthecombinationistheassetspaid,liabilitiesincurredorassumed,andthefairvalueoftheequitysecuritiesissuedontheacquisitiondatetoobtaincontroloverthepurchasedparty.Onthepurchasedate,theacquiredassets,liabilitiesandcontingentliabilitiesofthepurchasedpartyarerecognizedatfairvalue.Thedifferencebetweenthemergercostandthefairvalueoftheidentifiablenetassetsoftheacquiredpartyacquiredinthemerger(theformerisgreaterthanthelatter)isrecognizedasgoodwill,andsubsequentmeasurementismadebasedonthecostdeductingtheaccumulatedimpairmentprovision;thedifferencebetweenthemergercostandthefairvalueoftheidentifiablenetassetsoftheacquiredpartyacquiredinthemerger(theformerislessthanthelatter)shallberecordedintothecurrentprofitorlossaftertherecheck.AchievebusinesscombinationnotunderthesamecontrolstepbystepthroughmultipletransactionsInspecificfinancialstatements,thesumofbookvalueoftheacquiredparty'sequityinvestmentheldbeforethepurchasedateandtheinvestmentcostnewlypaidonthepurchasedateisregardedastheinitialinvestmentcostoftheinvestment.Theothercomprehensiveincomerecognizedbyusingtheequitymethodofaccountingoftheequityinvestmentheldbeforethepurchasedate,isnotdisposedonthepurchasedate,andthesamebasisasthedirectdisposalofrelevantassetsorliabilitiesoftheinvesteeisusedtoconductaccountingtreatmentwhendisposingtheinvestment;theowner'sequityrecognizedasaresultofthechangesoftheotherowner'sequityexceptforthenetprofitandlossoftheinvestee,othercomprehensiveincomeandprofitdistributionshallbetransferredtothecurrentprofitandlossduringthedisposalperiodwhendisposingtheinvestment.Iftheequityinvestmentheldbeforethepurchasedateismeasuredatfairvalue,theaccumulativechangesinfairvalueoriginallyincludedinothercomprehensiveincomeshallbe
transferredtoretainedearningswhenaccountingbycostmethod.Inconsolidatedfinancialstatements,thecostofconsolidationisthesumoftheconsiderationpaidatthepurchasedateandthefairvalueatthepurchasedateoftheequityalreadyheldbytheacquiredpartybeforethepurchasedate.Forequityoftheacquiredpartythatisalreadyheldbeforethepurchasedate,itshallbere-measuredaccordingtothefairvalueoftheequityonthepurchasedate,andthedifferencebetweenthefairvalueanditsbookvalueshallbeincludedinthecurrentinvestmentincome.Iftheequityoftheacquiredpartyheldbeforethepurchasedateinvolvesothercomprehensiveincomeandthechangesofotherowner'sequity,itshallbetransferredtocurrentincomeonthepurchasedate,exceptforothercomprehensiveincomecausedbychangesinnetliabilitiesornetassetsoftheincomeplanremeasuredandresetbytheinvestee.
(3)TreatmentoftransactioncostsinbusinesscombinationsIntermediaryexpensessuchasauditing,legalservices,evaluationandconsultingandotherrelatedmanagementexpensesincurredforthebusinesscombinationshallbeincludedinthecurrentprofitandlosswhenincurred.Thetransactioncostsofequitysecuritiesordebtsecuritiesissuedasthemergerconsiderationshallbeincludedintheinitialrecognitionamountofequitysecuritiesordebtsecurities.
6.PreparationoftheConsolidatedFinancialStatements
(1)ConsolidationscopeTheconsolidationscopeoftheconsolidatedfinancialstatementsisdeterminedonthebasisofcontrol.ControlmeansthattheCompanyhasthepowerovertheinvestedunit,enjoysvariablereturnsbyparticipatingintherelatedactivitiesoftheinvestedunit,andhastheabilitytousethepowerovertheinvestedunittoinfluencetheamountofitsreturn.SubsidiariesrefertotheentitiescontrolledbytheCompany(includingenterprises,divisiblepartsofinvestedentities,structuredentities,etc.).
(2)PreparationmethodofconsolidatedfinancialstatementsTheconsolidatedfinancialstatementsarepreparedbytheCompanybasedonthefinancialstatementsoftheCompanyanditssubsidiariesandotherrelevantmaterials.Whenpreparingtheconsolidatedfinancialstatements,theaccountingpoliciesandaccountingfiscaloftheCompanyandthoseofsubsidiariesshallbeconsistentandthelargetransactionsandintercoursebalanceamongcompaniesshallbeoffset.SubsidiariesandbusinessesincreasedduetobusinesscombinationsunderthesamecontrolduringtheReportingPeriodshallbeincludedintotheCompany’scombinationscopesincethedatewhentheyarejointlycontrolledbythefinalcontroller,andtheoperatingresultandcashflowsincethenshallberespectivelyincludedintotheconsolidatedincomestatementandconsolidatedcashflowstatement.AsforsubsidiariesandbusinessesincreaseduetobusinesscombinationsnotunderthesamecontrolduringtheReportingPeriod,therevenue,expensesandprofitorthosesubsidiariesandbusinessesfromthepurchasedatetotheendoftheReportingPeriodshallbeincludedintotheconsolidatedincomestatementandthecashflowthereofshallbeincludedintotheconsolidatedcashflowstatement.Theshareofshareholders’equityinsubsidiariesnotbelongingtotheCompanyshallberegardedastheminorityinterestsandseparatelylistedundertheitemofshareholders’equityintheconsolidatedbalancesheet.Theshareofcurrentportionofnetprofitorlossinsubsidiariesbelongingtominorityinterestsshallpresentedastheitemofminorityinterestsundertheitemofnetprofitintheconsolidatedincomestatement.Thedifferencebetweenthelossesofsubsidiariesbornbynot-controllingshareholdersandtheshareofthecompany’sowners’equityattheperiod-beginningthenot-controllingshareholdersenjoy(theformerislargerthanthelatter)shallbeoffsettheminorityinterests.
(3)Purchaseofminorityshareholders'equityofsubsidiariesAsforthedifferencebetweenthecostofalong-termequityinvestmentnewlyacquiredduetothepurchaseoftheminoritysharesandtheshareofnetassetsofthesubsidiarycontinuouslyaccountedfromthepurchasedateorcombinationdatetheCompanyshallenjoybasedonthenewshareholdingratioandthedifferencebetweenthedisposalpriceofpartialequityinvestmentsinthesubsidiaryunderthepremiseofremainingthecontrolpowerandtheshareofnetassetsofthesubsidiarycontinuouslyaccountedfromthepurchasedateorcombinationdatetheCompanyshallenjoyandcorrespondingtothedisposaloflong-termequityinvestments,thecapitalreserve(capitalstockpremium)intheconsolidatedbalancesheetshallbeadjustedandwhenthecapital
reserveisinsufficienttooffset,theretainedearningsshallbeadjusted.
(4)TreatmentoflossofcontroloversubsidiariesIfthecontrolovertheoriginalsubsidiaryislostduetothedisposalofpartialequityinvestmentsorotherreasons,theresidualequityshallberemeasuredatthefairvalueonthedateoflosingthecontrolpower;thebalanceofthesumoftheconsiderationobtainedfromequitydisposalandthefairvalueofresidualequityafterdeductingthesumoftheshareofthecarryingvalueofnetassetsintheoriginalsubsidiarycontinuouslyaccountedfromthepurchasedatetheCompanyshallenjoybasedontheoriginalshareholdingratioandthegoodwillshallberecordedintotheinvestmentincomeoftheperiodwhenthecontrolpowerislost.Theothercomprehensiveincomerelatedtotheequityinvestmentsintheoriginalsubsidiaryshallbetransferredtothecurrentprofitorlosswhenthecontrolpowerislostexceptfortheothercomprehensiveincomearisingfromchangesinnetliabilitiesornetassetsduetotheremeasurementofdefinedbenefitplanbytheinvestee.
7.ClassificationofJointArrangementsandAccountingTreatmentofJointOperations
Jointarrangementreferstoanarrangementunderthejointcontroloftwoormoreparticipants.TheCompany'sjointarrangementsaredividedintojointoperationsandjointventures.
(1)JointoperationsAjointoperationreferstoajointarrangementwherebytheCompanyenjoysrelevantassetsofthearrangement,andassumesobligationsrelevantliabilitiesofthearrangement.TheCompanyrecognizesthefollowingitemsrelatedtotheinterestshareinjointoperation,andconductsaccountingtreatmentinaccordancewithrelevantprovisionsoftheAccountingStandardforBusinessEnterprises:
A.Itrecognizesseparatelyheldassetsandjointlyheldassetsaccordingtotheproportion;B.Itrecognizesseparatelyassumedliabilitiesandjointlyassumedliabilitiesaccordingtotheproportion;C.Incomefromthesaleoftheproportionofjointoperationoutputisrecognized;D.Incomefromthesaleofthejointoperationoutputisrecognizedaccordingtotheproportion.E.Whiletheseparatelyincurredfeeisrecognized,theincurredfeeforjointoperationisrecognizedaccordingtotheproportion.
(2)JointventuresAjointventurereferstoajointarrangementwherebytheCompanyenjoystherightofthenetassetsofthearrangementonly.AccountingtreatmentoftheinvestmentofajointventureisconductedbytheCompanyinlinewiththeprovisionsofrelevantequitymethodofaccountingforlong-termequityinvestment.
8.ConfirmationStandardforCashandCashEquivalent
Theterm“cash”referstocashonhandanddepositsthatareavailableforpaymentatanytime.CashequivalentsrefertoinvestmentsheldbytheCompanythatareshort-term,highlyliquid,easilyconvertibleintoknownamountsofcash,andhavelittleriskofchangeinvalue.
9.ForeignCurrencyBusinessesandTranslationofForeignCurrencyFinancialStatements
(1)ForeigncurrencybusinessTheCompany'sforeigncurrencybusinessistranslatedintotheamountoftherecordingcurrencyattheapproximateexchangerateofthespotexchangerateonthetransactiondate.Onthebalancesheetdate,foreigncurrencymonetaryitemsaretranslatedatthespotexchangerateonthebalancesheetdate.Theexchangedifferencearisingfromthedifferencebetweenthespotexchangerateonthebalancesheetdateandthespotexchangerateatthetimeofinitialrecognitionorthepreviousbalancesheetdateisincludedinthecurrentprofitandloss;forforeigncurrencynon-monetaryitemsmeasuredathistoricalcost,thetranslationadoptsthespotexchangerateonthedaythetransactionoccurs;forforeign
currencynon-monetaryitemsmeasuredatfairvalue,thetranslationadoptsthespotexchangerateonthedaywhenthefairvalueisconfirmed,andthedifferencebetweentheamountofrecordingcurrencyandtheamountoforiginalrecordingcurrencyshallbeincludedintothecurrentprofitorlossorothercomprehensiveincomebasedonthenatureofnon-monetaryitems.
(2)ConversionofforeigncurrencyfinancialstatementsWhenconvertingtheforeigncurrencyfinancialstatementsofoverseassubsidiariesonthebalancesheetdate,theassetsandliabilitiesitemsinthebalancesheetshallbeconvertedatthespotexchangerateonthebalancesheetdate.Otheritemsofshareholders'equityexceptfor"undistributedprofits"shallbeconvertedatthespotexchangerateontheoccurrencedate.Incomeandexpenseitemsintheincomestatementshallbeconvertedusingtheapproximatespotexchangerateonthetransactiondate.Allitemsinthecashflowstatementareconvertedaccordingtotheapproximatespotexchangerateontheoccurrencedateofcashflow.Theimpactofexchangeratechangesoncashistakenasareconcilingitem,andtheitem"impactofexchangeratechangesoncashandcashequivalents"isseparatelylistedinthecashflowstatementtoreflect.Thedifferencearisingfromtheconversionoffinancialstatementsisreflectedinthe"othercomprehensiveincome"undertheshareholders'equityinthebalancesheet.Whendisposingoftheoverseasoperationandlosingcontrolrights,theforeigncurrencystatementconversiondifferencerelatedtotheoverseasoperationshownundertheshareholders'equityinthebalancesheetshallbetransferredtocurrentprofitandlossofdisposalinwholeorinproportiontothedisposalofoverseasoperation.
10.FinancialInstruments
Financialinstrumentsrefertocontractsthatformoneparty’sfinancialassetsandformotherparties’financialliabilitiesorequityinstruments.
(1)RecognitionandderecognitionoffinancialinstrumentsTheCompanyrecognizesafinancialassetorliabilitywhenitbecomesapartyoftherelevantfinancialinstrumentcontract.Whereafinancialassetsatisfiesanyofthefollowingrequirements,therecognitionofitisterminated:
①Thecontractualrightsforcollectingthecashflowofthesaidfinancialassetareterminated;
②Thesaidfinancialassethasbeentransferredandmeetthefollowingderecognitionconditionsfortransferoffinancialassets.Onlywhentheprevailingobligationsofafinancialliabilityarerelievedinallorinpartmaytherecognitionofthefinancialliabilitybeterminatedinallorpartly.WheretheCompany(debtor)entersintoanagreementwithacreditorsoastosubstitutetheexistingfinancialliabilitiesbywayofanynewfinancialliability,andifthecontractualstipulationsregardingthenewfinancialliabilityissubstantiallydifferentfromthatregardingtheexistingfinancialliability,itterminatestherecognitionoftheexistingfinancialliability,andatthesametimerecognizesthenewfinancialliability.Thepurchaseandsaleoffinancialassetsunderthenormalwaysshallberecognizedandstoppedtoberecognizedrespectivelyatthepriceoftransactiondate.
(2)ClassificationandmeasurementoffinancialassetsTheCompanyclassifiesfinancialassetsintothefollowingthreecategoriesaccordingtothebusinessmodeofmanagingfinancialassetsandthecontractualcashflowcharacteristicsoffinancialassetsuponinitialrecognition:financialassetsmeasuredatamortizedcost,financialassetsmeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincome,andfinancialassetsmeasuredatfairvalueandwhosechangesareincludedincurrentprofitandloss.FinancialassetsmeasuredatamortizedcostTheCompanyclassifiesfinancialassetsthatmeetthefollowingconditionsandarenotdesignatedtobemeasuredatfairvalueandwhosechangesareincludedincurrentprofitandlossasfinancialassetsmeasuredatamortizedcost:
TheCompany'sbusinessmodelformanagingthisfinancialassetisaimedatcollectingcontractualcashflow;Thecontractualtermsofthisfinancialassetstipulatethatthecashflowgeneratedonthespecificdateisonlythepaymentofprincipalandinterestbasedontheprincipalamountoutstanding.
Suchfinancialassetsaremeasuredinamortizedcostbytheeffectiveinterestmethodafterinitialrecognition.Gainsorlossesarisingfromfinancialassetsmeasuredinamortizedcostthatarenotpartofanyhedgingrelationshipareincludedincurrentprofitandlosswhenderecognition,amortizationaccordingtotheeffectiveinterestmethod,orimpairmentisrecognized.FinancialassetsmeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincomeTheCompanyclassifiesfinancialassetsthatmeetthefollowingconditionsandarenotdesignatedtobemeasuredatfairvalueandwhosechangesareincludedincurrentprofitandlossasfinancialassetsmeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincome:
TheCompany'sbusinessmodelformanagingthisfinancialassetisaimedatbothcollectingthecontractualcashflowandsellingthisfinancialasset;Thecontractualtermsofthisfinancialassetstipulatethatthecashflowgeneratedonthespecificdateisonlythepaymentofprincipalandinterestbasedontheprincipalamountoutstanding.Suchfinancialassetsaresubsequentlymeasuredatfairvalueafterinitialrecognition.Interest,impairmentlossesorgainsandexchangegainsandlossescalculatedbytheeffectiveinterestmethodareincludedincurrentprofitandloss,whileothergainsorlossesareincludedinothercomprehensiveincome.Whenthefinancialassetisderecognized,theaccumulatedgainsorlossespreviouslyincludedinothercomprehensiveincomearetransferredoutandincludedincurrentprofitandloss.FinancialassetsmeasuredatfairvalueandwhosechangesareincludedincurrentprofitandlossExceptfortheabovefinancialassetsmeasuredatamortizedcostandatfairvaluewithchangesincludedinothercomprehensiveincome,theCompanyclassifiesallotherfinancialassetsasfinancialassetsmeasuredatfairvaluewithchangesincludedincurrentprofitandloss.Uponinitialrecognition,inordertoeliminateorsignificantlyreduceaccountingmismatches,theCompanyirrevocablydesignatessomefinancialassetsthatshouldhavebeenmeasuredatamortizedcostoratfairvalueandwhosechangesareincludedinothercomprehensiveincomeasfinancialassetsmeasuredatfairvalueandwhosechangesareincludedincurrentprofitandloss.Suchfinancialassetsaresubsequentlymeasuredatfairvalueafterinitialrecognition,andtheresultinggainsorlosses(includinginterestanddividendincome)areincludedincurrentprofitandlossunlessthefinancialassetsarepartofthehedgingrelationship.ThebusinessmodelofmanagingfinancialassetsreferstohowtheCompanymanagesfinancialassetstogeneratecashflow.ThebusinessmodeldetermineswhetherthecashflowofthefinancialassetsmanagedbytheCompanycomesfromthecollectionofcontractualcashflow,thesaleoffinancialassetsorboth.TheCompanydeterminesthebusinessmodelformanagingfinancialassetsonthebasisofobjectivefactsandspecificbusinessobjectivesdecidedbykeymanagementpersonneltomanagefinancialassets.TheCompanyevaluatesthecontractualcashflowcharacteristicsoffinancialassetstodeterminewhetherthecontractualcashflowgeneratedbytherelevantfinancialassetsonthespecificdateisonlythepaymentofprincipalandinterestbasedontheprincipalamountoutstanding.Amongthem,theprincipalreferstothefairvalueoffinancialassetsuponinitialrecognition;interestincludesconsiderationforthetimevalueofmoney,creditrisksrelatedtotheprincipalamountoutstandinginthespecificperiod,andotherbasiclendingrisks,costsandprofits.Inaddition,theCompanyevaluatesthecontracttermsthatmayleadtochangesinthetimedistributionoramountofcontractualcashflowoffinancialassetstodeterminewhethertheymeettherequirementsoftheabove-mentionedcontractualcashflowcharacteristics.OnlywhentheCompanychangesthebusinessmodeofmanagingfinancialassetswillallaffectedrelatedfinancialassetsbereclassifiedonthefirstdayofthefirstreportingperiodafterbusinessmodelchanges,otherwisefinancialassetscannotbereclassifiedafterinitialrecognition.Financialassetsaremeasuredatfairvalueuponinitialrecognition.Forfinancialassetsmeasuredatfairvalueandwhosechangesareincludedincurrentprofitandloss,relevanttransactionexpensesaredirectlyincludedincurrentprofitandloss;forothertypesoffinancialassets,relevanttransactionexpensesareincludedintheinitialrecognitionamount.Foraccountsreceivablearisingfromthesaleofproductsortheprovisionoflaborservices,whichdonotincludeordonotconsidersignificantfinancingcomponents,theamountofconsiderationtheCompanyisexpectedtobeentitledtoreceiveistakenastheinitialrecognitionamount.
(3)Classificationandmeasurementoffinancialliabilities
TheCompany'sfinancialliabilitiesareclassifieduponinitialrecognitionas:financialliabilitiesmeasuredatfairvalueandwhosechangesareincludedincurrentprofitandloss,andfinancialliabilitiesmeasuredatamortizedcost.Forfinancialliabilitiesthatarenotclassifiedasmeasuredatfairvalueandwhosechangesareincludedincurrentprofitandloss,relevanttransactioncostsareincludedintheinitialrecognitionamount.FinancialliabilitiesmeasuredatfairvalueandwhosechangesareincludedincurrentprofitandlossFinancialliabilitiesmeasuredatfairvalueandwhosechangesareincludedincurrentprofitandlossincludetransactionalfinancialliabilitiesandfinancialliabilitiesdesignatedasmeasuredatfairvalueuponinitialrecognitionandwhosechangesareincludedincurrentprofitandloss.Subsequentmeasurementshallbecarriedoutaccordingtofairvalueforsuchfinancialliabilities.Gainsorlossesresultingfromchangesinfairvalueanddividendsandinterestexpensesrelatedtosuchfinancialliabilitiesshallbeincludedincurrentprofitandloss.FinancialliabilitiesmeasuredatamortizedcostOtherfinancialliabilitiesaresubsequentlymeasuredatamortizedcostbyusingtheeffectiveinterestmethod.Gainsorlossesresultingfromderecognitionoramortizationareincludedincurrentprofitandloss.DistinctionbetweenfinancialliabilitiesandequityinstrumentsFinancialliabilitiesrefertoliabilitiesthatmeetoneofthefollowingconditions:
①Thecontractualobligationtodelivercashorotherfinancialassetstootherparties.②Thecontractualobligationtoexchangefinancialassetsorfinancialliabilitieswithotherpartiesunderpotentiallyunfavorableconditions.③Non-derivativecontractsthatmustbeorcanbesettledwiththeenterprise'sownequityinstrumentsinthefuture,andtheenterprisewilldeliveravariablenumberofitsownequityinstrumentsaccordingtothecontract.④Derivativecontractsthatmustbeorcanbesettledwiththeenterprise'sownequityinstrumentsinthefuture,exceptderivativescontractsthatexchangeafixedamountofcashorotherfinancialassetswithafixedamountofitsownequityinstruments.Equityinstrumentsrefertocontractsthatcanprovethatanenterprisehastheresidualequityinitsassetsafterdeductingallliabilities.IftheCompanycannotunconditionallyavoidperformingacontractualobligationbydeliveringcashorotherfinancialassets,thecontractualobligationmeetsthedefinitionoffinancialliability.IfafinancialinstrumentmustbeorcanbesettledwiththeCompany'sownequityinstruments,itisnecessarytoconsiderwhethertheCompany'sownequityinstrumentsusedtosettletheinstrumentareusedassubstitutesforcashorotherfinancialassetsortoenabletheholderofthisinstrumenttoenjoytheresidualequityintheassetsafterdeductingallliabilitiesfromtheissuer.Ifitistheformer,thisinstrumentistheCompany'sfinancialliability;ifthelatteristhecase,thisinstrumentistheCompany'sequityinstrument.
(4)DerivativefinancialinstrumentsandembeddedderivativesTheCompany'sderivativefinancialinstrumentsincludeforwardforeignexchangecontracts,structuraldepositsandexchangeoptioncontracts.Initially,thefairvalueonthedatewhenthederivativetransactioncontractissignedshallbeusedformeasurement,andthefairvalueshallbeusedforsubsequentmeasurement.Derivativefinancialinstrumentswithpositivefairvaluearerecognizedasanasset,whilethosewithnegativefairvalueareindeedrecognizedasaliability.Anygainsorlossesarisingfromchangesinfairvaluethatdonotconformtotheprovisionsofhedgeaccountingaredirectlyincludedincurrentprofitandloss.Forhybridinstrumentscontainingembeddedderivatives,suchasthemaincontractisafinancialasset,therelevantprovisionsonclassificationoffinancialassetsshallapplytothehybridinstrumentsasawhole.Ifthemaincontractisnotafinancialasset,andthehybridinstrumentisnotmeasuredatfairvalueanditschangesareincludedincurrentprofitandlossforaccountingtreatment,theembeddedderivativeinstrumenthasnocloserelationshipwiththemaincontractintermsofeconomiccharacteristicsandrisks,andhasthesameconditionsastheembeddedderivativeinstrument,andtheseparateexistinginstrumentmeetsthedefinitionofderivativeinstrument,theembeddedderivativeinstrumentshallbeseparatedfromthehybridinstrumentandtreatedasaseparatederivativefinancialinstrument.Ifitisnotpossibletoseparatelymeasureembeddedderivativeinstrumentsatthetimeofacquisitionorthesubsequentbalancesheetdate,thehybridinstrumentsasawholearedesignatedasfinancialassetsorfinancialliabilitiesmeasuredatfairvalueandtheirchangesareincludedincurrentprofitandloss.
(5)FairvalueoffinancialinstrumentsSeeNoteV(11)forthemethodofdeterminingthefairvalueoffinancialassetsandliabilities.
(6)ImpairmentoffinancialassetsTheCompanyconductsimpairmentaccountingtreatmentforthefollowingitemsandconfirmsthelossprovisionbasedontheexpectedcreditlosses:
Financialassetsmeasuredatamortizedcost;Receivablesandcreditors'investmentsmeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincome;ContractassetsdefinedintheAccountingStandardsforBusinessEnterprisesNo.14-Revenue;Leasereceivables;Financialguaranteecontracts(exceptthosethataremeasuredatfairvalueandwhosechangesareincludedincurrentprofitandloss,thetransferoffinancialassetsdoesnotmeettheconditionsforderecognitionorcontinuetoinvolveinthetransferredfinancialassets).MeasurementofexpectedcreditlossExpectedcreditlossreferstotheweightedaverageofthecreditlossesoffinancialinstrumentsweightedbytheriskofdefault.CreditlossreferstothedifferencebetweenallcontractualcashflowsdiscountedattheoriginaleffectiveinterestrateandreceivableaccordingtothecontractandallcashflowsexpectedtobecollectedoftheCompany,i.e.thepresentvalueofallcashshortfalls.Consideringthereasonableandreliableinformationaboutpastevents,currentsituationandtheforecastoffutureeconomicsituation,thecompanytakestheriskofdefaultastheweight,calculatestheprobabilityweightedamountofthepresentvalueofthedifferencebetweenthecashflowreceivablefromthecontractandthecashflowexpectedtobereceived,andconfirmstheexpectedcreditloss.TheCompanyseparatelymeasurestheexpectedcreditlossesoffinancialinstrumentsatdifferentstages.Ifthecreditriskoffinancialinstrumentshasnotincreasedsignificantlysincetheinitialrecognition,itisinthefirststage.TheCompanymeasuresthelossreserveaccordingtotheexpectedcreditlossinthenext12months;ifthecreditriskoffinancialinstrumentshasincreasedsignificantlysinceitsinitialrecognitionbutnocreditimpairmenthasoccurred,itisinthesecondstage.TheCompanymeasuresthelossreserveaccordingtotheexpectedcreditlossduringthewholedurationofthisinstrument;ifthefinancialinstrumenthassufferedcreditimpairmentsinceitsinitialrecognition,itisinthethirdstage.TheCompanymeasuresthelossreserveaccordingtotheexpectedcreditlossduringthewholedurationofthisinstrument.Forfinancialinstrumentswithlowcreditriskonthebalancesheetdate,theCompanyassumesthattheircreditriskhasnotincreasedsignificantlysincetheinitialrecognition,andmeasuresthelossreserveaccordingtotheexpectedcreditlossinthenext12months.Theexpectedcreditlossduringthewholedurationreferstotheexpectedcreditlosscausedbyallpossibledefaulteventsduringthewholeexpecteddurationoffinancialinstruments.Theexpectedcreditlossinthenext12monthsreferstotheexpectedcreditlosscausedbythepossibledefaulteventsoffinancialinstrumentswithin12months(ortheexpecteddurationiftheexpecteddurationoffinancialinstrumentsislessthan12months)afterthebalancesheetdate,whichispartoftheexpectedcreditlossinthewholeduration.Whenmeasuringtheexpectedcreditloss,thelongesttermthattheCompanyneedstoconsideristhelongestcontracttermthattheenterprisefacescreditrisk(includingtheoptiontorenewthecontract).TheCompanycalculatesinterestincomebasedonthebookbalancebeforedeductingimpairmentprovisionsandtheeffectiveinterestrateforfinancialinstrumentsinthefirstandsecondstagesandwithlowcreditrisk.Theinterestincomeshallbecalculatedaccordingtotheirbookbalanceminustheamortizedcostafterimpairmentprovisionandtheeffectiveinterestrateforfinancialinstrumentsinthethirdstage.Notesreceivable,accountsreceivableandcontractassetsTheCompanyalwaysmeasuresitslossreservesatanamountequivalenttotheexpectedcreditlossduringtheentiredurationfornotesreceivable,contractassetsandaccountsreceivable,regardlessofwhetherthereisanysignificantfinancingcomponent.Ifasinglefinancialassetcannotbeusedtoevaluatetheexpectedcreditlossinformationatareasonablecost,theCompanywilldividethenotesreceivableandaccountsreceivableintoportfolioonthebasisofthecreditriskfeatures,andcalculatetheexpected
creditlossbasedontheportfolio.Thebasisfordeterminingtheportfolioisasfollows:
A.NotesreceivableNotesreceivableportfolio1:bankacceptancebillswithlowcreditratingandL/CNotesreceivableportfolio2:commercialacceptancebillsB.Accountsreceivable
Accountsreceivableportfolio1:paymentnotoverdue(withcreditinsurance)Accountsreceivableportfolio2:paymentnotoverdue(withoutcreditinsurance)Accountsreceivableportfolio3:paymentoverdue(withcreditinsurance)Accountsreceivableportfolio4:paymentoverdue(withoutcreditinsurance)C.ContractassetsContractassetsportfolio1:productsalesContractassetsportfolio2:engineeringconstructionFornotesreceivableandcontractassetsdividedintoportfolios,withreferencetohistoricalcreditlossexperience,combinedwithcurrentconditionsandpredictionsoffutureeconomicconditions,theCompanyhascalculatedexpectedcreditlossesthroughdefaultriskexposureandexpectedcreditlossratefortheentireduration.Foraccountsreceivabledividedintoportfolios,withreferencetohistoricalcreditlossexperience,combinedwithcurrentconditionsandpredictionsoffutureeconomicconditions,theCompanyhaspreparedacomparisontablebetweenthenumberofaging/overduedaysofaccountsreceivableandtheexpectedcreditlossrateovertheentireduration,andhascalculatedtheexpectedcreditloss.OtherreceivablesTheCompanydividesotherreceivablesintoseveralportfoliosbasedonthefeaturesofcreditrisk,andcalculatestheexpectedcreditlossesonthebasisofthecombination.Thebasisfordeterminingtheportfolioisasfollows:
Otherreceivablesportfolio1:ReceivablesfromrelatedpartieswithinthescopeofconsolidationOtherreceivablesportfolio2:TaxrefundreceivableOtherreceivablesportfolio3:DepositreceivableandsecuritydepositOtherreceivablesportfolio4:otherreceivablesForotherreceivablesthataredividedintoportfolios,theCompanycalculatestheexpectedcreditlosswiththedefaultriskexposureandtheexpectedcreditlossratewithinthenext12monthsortheentireduration.Creditors'investmentandothercreditors'investmentForcreditors'investmentandothercreditors'investment,theCompanycalculatestheexpectedcreditbasedonthenatureoftheinvestment,aswellaskindsoftypesofcounterpartiesandriskexposures,thedefaultriskexposureandtheexpectedcreditlossratewithinthenext12monthsortheentiredurationloss.AssessmentonsignificantincreaseofcreditriskInordertodeterminetherelativechangesinthedefaultriskoffinancialinstrumentsduringtheirexpectedlifeandtoassesswhetherthecreditriskoffinancialinstrumentshasincreasedsignificantlysinceinitialrecognition,theCompanycomparesthedefaultriskoffinancialinstrumentsonthebalancesheetdatewiththedefaultriskontheinitialrecognitiondate.Whendeterminingwhetherthecreditriskhasrisengreatlysincetheinitialrecognition,theCompanyconsidersreasonableandreliableinformation(forward-lookinginformationinclusive)thatcanbeobtainedwithoutunnecessaryextracostsorefforts.TheinformationtheCompanyconsidersshallinclude:
Thedebtorfailstopaytheprincipalandinterestaccordingtothecontractexpirationdate;Theexternalorinternalcreditratings(ifany)offinancialinstruments,whichhaveoccurredorareexpected,deterioratesignificantly;Thedebtor’soperatingresults,whichhaveoccurredorareexpected,deterioratesignificantly;Existingorexpectedchangesintechnology,market,economyorlegalenvironmentwillleadtoagreatadverseeffectonthedebtor'sabilitytorepaytheCompany.Basedonthenatureoffinancialinstruments,theCompanyassesseswhetherthereisgreatriskincreditriskonthebasisofindividual
financialinstrumentsorfinancialinstrumentportfolios.Duringassessmentbasedonfinancialinstrumentportfolios,theCompanycandividefinancialinstrumentsonthebasisofcommoncreditriskcharacteristics,suchasoverdueinformationandcreditriskratings.Incasethattheperiodoverdueexceeds30days,theCompanydeterminesthatthereisasignificantincreaseinthecreditriskoffinancialinstruments.FinancialassetswithdepreciationofcreditTheCompanyassesses,onthebalancesheetdate,whetherthereisanycreditimpairmenttofinancialassetsmeasuredatamortizedcostandcreditors'investmentmeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincome.Incaseofoneormoreeventsthatadverselyaffecttheexpectedfuturecashflowofafinancialassetoccur,thefinancialassetwillbecomefinancialassetswithdepreciationofcredit.Theobservableinformationbelowcanbetreatedasevidenceforcreditimpairmenttofinancialassets:
Theissuerordebtoriscaughtinaseriousfinancialdifficulty;Thedebtorbreachestheagreementofcontract,suchasdefaultoroverduepaymentofinterestorprincipal,orotherdefault;Duetoeconomicorcontractualconsiderationsrelatedtothedebtor'sfinancialdifficulties,theCompanygivesconcessionstothedebtor;andtheconcessionswillnotbemadeunderanyothercircumstances;Thereliesagreatprobabilityofbankruptcyorotherfinancialrestructuringforthedebtor;Theissuerordebtoriscaughtinfinancialdifficulties,whichleadstothedisappearanceoftheactivemarketofthefinancialasset;PresentationofexpectedcreditlossprovisionTheCompanyremeasuresexpectedcreditlossesoneachbalancesheetdatetoreflectthechangesinthecreditriskoffinancialinstrumentssinceinitialrecognition;theincreaseorreversalamountofthelossreserveformedtherefromshallbeincludedinthecurrentprofitandlossasimpairmentlossesorgains.Forfinancialassetsmeasuredatamortizedcost,thelossallowanceoffsetsthecarryingamountofthefinancialassetlistedinthebalancesheet;forcreditors’investmentthataremeasuredatfairvalueanditschangesareincludedinothercomprehensiveincome,theCompanyrecognizesitslossreserveinothercomprehensiveincomeandwillnotoffsetthecarryingamountofthefinancialasset.Write-offsIncasethattheCompanyfailstoreasonablyexpectthecontractcashflowofthefinancialassettoberecoveredinafullorpartialscale,thebookbalanceofthefinancialassetwillbewrittenoffdirectly.Suchwrite-downsmayconstitutethederecognitionforrelatedfinancialassets.ThissituationoccursfrequentlywhentheCompanydeterminesthatthedebtordoesnothaveanyassetsoranysourceofincometogeneratesufficientcashflowtorepaytheamountthatwillbewrittenoff.However,inaccordancewiththeproceduresforrecoveringduepaymentsoftheCompany,thewritten-offfinancialassetsmaystillbeaffectedbytheexecutionactivities.Incasethatthefinancialassetwrittenoffisrecoveredlater,itshallbeincludedinthecurrentprofitandlossasthereversaloftheimpairmentloss.
(7)TransferoffinancialassetsThetransferoffinancialassetsreferstothetransferordeliveryoffinancialassetstoanotherparty(transferee)otherthantheissuerofthefinancialasset.IftheCompanyhastransferredalmostalltherisksandrewardsoftheownershipoffinancialassetstothetransferee,derecognizethefinancialasset;ifitretainsalmostalltherisksandrewardsoftheownershipoffinancialassets,thefinancialassetwillnotbederecognized.IftheCompanyhasneithertransferrednorretainedalmostalltherisksandrewardsoftheownershipoffinancialassets,itshallbedealtwithinthefollowingsituations:ifthecontrolofthefinancialassetisabandoned,theconfirmationofthefinancialassetshallbeterminatedandthegeneratedassetsandliabilitiesshallbeconfirmed;Ifthefinancialassetsarecontrolled,therelevantfinancialassetsshallberecognizedaccordingtotheextentoftheircontinuedinvolvementinthetransferredfinancialassets,andtherelevantliabilitiesshallberecognizedaccordingly.
(8)OffsettingfinancialassetsandfinancialliabilitiesWhentheCompanyhasalegalrightthatiscurrentlyenforceabletosetofftherecognizedfinancialassetsandfinancialliabilities,andintendseithertosettleonanetbasis,ortorealizethefinancialassetandsettlethefinancialliabilitysimultaneously,afinancialassetandafinancialliabilityshallbeoffsetandthenetamountispresentedinthebalancesheet.Exceptfortheabovecircumstances,financialassetsandfinancialliabilitiesshallbepresentedseparatelyinthebalancesheetandshallnotbeoffset.
11.MeasurementofFairValueFairvaluereferstothepricethatmarketparticipantscanreceivefromsalesofaassetorshallpayfortransferofaliabilityintheorderlytransactionthatoccursonthemeasurementdate.TheCompanymeasuresrelatedassetsorliabilitiesatfairvalue,assumingthattheorderlytransactionofsellingassetsortransferringliabilitiesisconductedinthemainmarketofrelatedassetsorliabilities;ifthereisnomainmarket,theCompanyassumesthatthetransactionisconductedinthemostbeneficialmarket.Themainmarket(orthemostfavorablemarket)isthetradingmarketthattheCompanycanenteronthemeasurementdate.TheCompanyusestheassumptionsusedbymarketparticipantstomaximizetheireconomicbenefitswhenpricingtheassetorliability.Forfinancialassetsorfinancialliabilitieswithactivemarkets,theCompanyusesthequotationinactivemarketstodetermineitsfairvalue.Ifthereisnoactivemarketforfinancialinstruments,theCompanyusesvaluationtechniquestodetermineitsfairvalue.Whenmeasuringnon-financialassetsatfairvalue,theabilityofmarketparticipantstobestusetheassetforgeneratingeconomicbenefits,ortheabilitytoselltheassettoothermarketparticipantsthatcanbestusetheassettogenerateeconomicbenefitsshallbeconsidered.TheCompanyadoptsvaluationtechniquesthatareapplicableinthecurrentsituationandhavesufficientavailabledataandotherinformationtosupportit.Priorityisgiventousingrelevantobservableinputvalues.Onlywhenobservableinputvalues??areunavailableorarenotfeasibletoobtain,theunobservableinputvaluescanbeused.Forassetsandliabilitiesmeasuredordisclosedatfairvalueinthefinancialstatements,thefairvaluehierarchytowhichtheybelongisdeterminedbasedonthelowestlevelinputvaluethatisimportanttothefairvaluemeasurementasawhole:thefirstlevelinputvalueistheunadjustedquotationofthesameassetsorliabilitiesabletobeobtainedinanactivemarketonthemeasurementdate;thesecondlevelinputvalueisthedirectlyorindirectlyobservableinputvalueoftherelevantassetorliabilityexceptthefirstlevelinputvalue;thethirdlevelinputvalueisunobservableinputvalueofrelatedassetsorliabilities.Oneachbalancesheetdate,theCompanyreassessedtheassetsandliabilitiescontinuouslymeasuredatfairvalueconfirmedinthefinancialstatementstodeterminewhetherthereisatransitionamonglevelsoffairvaluemeasurement.
12.Inventory
(1)ClassificationInventoriesmainlyincluderawmaterials,work-in-progress,stockproducts,productsprocessedonentrustmentandetc.
(2)ValuationmethodofinventoriesacquiringandissuingInventoriesshallbemeasuredatactualcostwhenacquired,andthecostoftheinventoriesincludingtheprocurementcost,processingcostandothercosts.Greyyarn,dyedyarn,andplusmaterialshallbemeasuredatfirst-infirst-outmethodwhenacquiredanddelivered;otherinventoriesshallbemeasuredaspertheweightedaveragemethod
(3)BasisfordeterminingnetrealizablevalueofinventoriesandprovisionmethodsfordeclineinvalueofinventoriesNetrealizablevalueistheestimatedsellingpriceintheordinarycourseofbusinesslesstheestimatedcostsofcompletion,theestimatedcostsnecessarytomakethesaleandrelevanttaxes.Netrealizablevalueisdeterminedonthebasisofclearevidenceobtained,andtakesintoconsiderationthepurposeofholdinginventoriesandeffectofpostbalancesheetevents.Atthebalancesheetdate,inventoriesaremeasuredatthelowerofthecostandnetrealizablevalue.Ifthenetrealizablevalueisbelowthecostofinventories,aprovisionfordeclineinvalueofinventoriesismade.Theprovisionforinventoriesdeclineinvalueis
determinedbythedifferenceofthecostofindividualitemlessitsrealizablevalue.Aftertheprovisionfordeclineinvalueofinventoriesismade,ifthecircumstancesthatpreviouslycausedinventoriestobewrittendownbelowcostnolongerexistsothatthenetrealizablevalueofinventoriesishigherthantheircost,theoriginalprovisionfordeclineinvalueisreversedandthereversalisincludedinprofitorlossfortheperiod.
(4)Theperpetualinventorysystemismaintainedforstocksystem.
(5)Amortizationmethodofthelow-valueconsumptiongoodsandpackingarticlesFortheLow-valueconsumptiongoodsandthepackingarticlesshouldbeamortizedbyone-offamortizationmethodwhenconsuming.
13.Long-termEquityInvestments
Long-termequityinvestmentsincludeequityinvestmentsinsubsidiaries,jointventuresandassociatedenterprises.TheinvesteethattheCompanyisabletoexertsignificantinfluenceisanassociatedenterpriseoftheCompany.
(1)DeterminationofinitialinvestmentcostLong-termequityinvestmentthatformsabusinesscombination:Long-termequityinvestmentobtainedbybusinesscombinationunderthesamecontrol,onthemergerdate,basedonthebookvalueshareofthemergedparty’sowners’equityinthefinalcontroller’sconsolidatedfinancialstatementsasinvestmentcost;Thelong-termequityinvestmentacquiredbyabusinesscombinationshallbetheinvestmentcostofthelong-termequityinvestmentaccordingtothecostofthecombination.Forlong-termequityinvestmentsobtainedbyothermeans:thelong-termequityinvestmentobtainedbypayingcashshallbetheinitialinvestmentcostaccordingtotheactualpurchaseprice;thelong-termequityinvestmentobtainedbyissuingequitysecuritiesshallbetheinitialinvestmentcostofthefairvalueoftheequitysecuritiesissued.
(2)SubsequentmeasurementandprofitandlossconfirmationmethodInvestmentinsubsidiariesisaccountedforusingthecostmethodunlesstheinvestmentmeetstheconditionsforholdingforsale;investmentinassociatesandjointventuresisaccountedforusingtheequitymethod.Forlong-termequityinvestmentsthatareaccountedforusingthecostmethod,inadditiontothecashdividendsorprofitsthathavebeendeclaredbutnotyetincludedintheactualpaymentorconsiderationincludedintheinvestment,thecashdividendsorprofitsdeclaredbytheinvestedentityarerecognizedasinvestmentincomeandrecordedintothecurrentprofitandloss.Forlong-termequityinvestmentsaccountedforusingtheequitymethod,wheretheinitialinvestmentcostisgreaterthanthefairvalueshareoftheinvestee’sidentifiablenetassetsatthetimeofinvestment,theinvestmentcostofthelong-termequityinvestmentisnotadjusted;whentheinitialinvestmentcostislessthantheinvestment,theinvestee’sIfthefairvalueshareofnetassetsisidentified,thebookvalueofthelong-termequityinvestmentisadjusted,andthedifferenceisincludedinthecurrentprofitandlossoftheinvestment.Whenusingtheequitymethodofaccounting,theinvestmentincomeandothercomprehensiveincomearerecognizedseparatelyaccordingtotheshareofnetprofitandlossandothercomprehensiveincomerealizedbytheinvestedunitthatshouldbeenjoyedorshared,andthebookvalueofthelong-termequityinvestmentisadjustedatthesametime;Thedistributionofprofitsorcashdividendsshouldbecalculatedtoreducethebookvalueoflong-termequityinvestment;theinvestee'sotherchangesinowner'sequityotherthannetprofitandloss,othercomprehensiveincomeandprofitdistribution,adjustthebookvalueoflong-termequityinvestmentandIncludedincapitalreserves(othercapitalreserves).Whenconfirmingtheshareoftheinvestee’snetprofitorloss,basedonthefairvalueoftheinvestee’sidentifiableassetsatthetimeofinvestment,andinaccordancewiththeCompany’saccountingpoliciesandaccountingperiod,thenetprofitoftheinvesteeConfirmaftermakingadjustments.Iftheadditionalinvestmentandotherreasonscanexertsignificantinfluenceontheinvesteeorexercisejointcontrolbutdonotconstitutecontrol,ontheconversiondate,thesumofthefairvalueoftheoriginalequityplustheadditionalinvestmentcostwillbeusedastheinitialaccountingfortheequitymethodcostofinvestment.Iftheoriginalequityisclassifiedasnon-tradingequityinstrumentinvestmentmeasuredatfairvaluewhosechangesareincludedinothercomprehensiveincome,therelevantoriginalandaccumulativechangesinfairvalueincludedinothercomprehensiveincomeshallbetransferredtoretainedearningswhenaccounting
byequitymethod.Ifthejointcontrolorsignificantinfluenceontheinvestedunitislostduetothedisposalofpartoftheequityinvestment,etc.,theremainingequityafterthedisposalshallbechangedtotheAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstrumentsisperformed,andthedifferencebetweenfairvalueandbookvalueisincludedinthecurrentprofitandloss.Othercomprehensiveincomerecognizedbytheoriginalequityinvestmentduetotheequitymethodofaccountingshallbeaccountedforonthesamebasisastheinvestee’sdirectdisposalofrelatedassetsorliabilitieswhentheequitymethodofaccountingisterminated;changesinotherowners’equityrelatedtotheoriginalequityinvestmentTransfertocurrentprofitandloss.Ifthecontroloftheinvestedunitislostduetothedisposalofpartoftheequityinvestment,iftheremainingequityafterthedisposalcanexercisejointcontrolorexertsignificantinfluenceontheinvestedunit,theequitymethodisusedforaccountingandtheremainingequityistreatedasWhenacquiring,theequitymethodisadoptedforadjustment;iftheremainingequityafterdisposalcannotexercisejointcontrolorexertsignificantinfluenceontheinvestee,theaccountingshallbechangedaccordingtotherelevantprovisionsof"AccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstrumentsThedifferencebetweenthefairvalueandthebookvalueonthedateoflossofcontrolisincludedinthecurrentprofitandloss.Iftheshareholdingratioofthecompanydecreasesduetothecapitalincreaseofotherinvestors,therebylosingcontrolbutbeingabletoexercisejointcontrolorexertsignificantinfluenceontheinvestee,thenewshareholdingratioshallbeusedtoconfirmthatthecompanyshouldenjoythecapitalincreaseoftheinvestee.Thedifferencebetweentheincreaseinshareandtheincreaseintheshareofnetassetsandtheoriginalbookvalueofthelong-termequityinvestmentcorrespondingtothedecreaseintheproportionoftheshareholdingthatshouldbecarriedforwardareincludedinthecurrentprofitandloss;Thatis,adjustmentsaremadeusingtheequitymethodofaccounting.TheunrealizedinternaltransactiongainsandlossesthatoccurbetweentheCompanyandassociatesandjointventuresarecalculatedaccordingtotheshareholdingratioandareattributedtotheCompany,andtheinvestmentgainsandlossesarerecognizedonthebasisofoffset.However,theunrealizedinternaltransactionlossesincurredbytheCompanyandtheinvesteearetheimpairmentlossesofthetransferredassetsandshallnotbeoffset.
(3)DeterminethebasisforjointcontrolandsignificantinfluenceontheinvestedunitJointcontrolreferstothecommoncontrolofanarrangementinaccordancewiththerelevantagreement,andrelatedactivitiesofthearrangementmustbeagreeduponbythepartiessharingcontrolrightsbeforetheycanmakedecisions.Whenjudgingwhetherthereisjointcontrol,firstdeterminewhetherallparticipantsoracombinationofparticipantscollectivelycontrolthearrangement,andsecondlydeterminewhetherthedecision-makingrelatedactivitiesofthearrangementmustbeunanimouslyagreedbytheparticipantswhocollectivelycontrolthearrangement.IfallparticipantsoraCompanyofparticipantsmustactinconcerttodeterminetherelevantactivitiesofanarrangement,itisconsideredthatallparticipantsoraCompanyofparticipantscollectivelycontrolthearrangement;ifthereisacombinationoftwoormoreparticipantscancollectivelyControllinganarrangementdoesnotconstitutejointcontrol.Whenjudgingwhetherthereisjointcontrol,theprotectiverightsenjoyedarenotconsidered.Significantinfluencemeansthattheinvestorhastherighttoparticipateinthedecision-makingofthefinancialandoperatingpoliciesoftheinvestedunit,butcannotcontrolorjointlycontroltheformulationofthesepolicieswithotherparties.Whendeterminingwhetheritcanexertsignificantinfluenceontheinvestedunit,considerthattheinvestordirectlyorindirectlyholdsthevotingsharesoftheinvestedunitandthecurrentexecutablepotentialvotingrightsheldbytheinvestorandotherpartiesareassumedtobeconvertedintotheinvestedunitAftertheequityofthecompany,theimpactincludesthecurrentconvertiblewarrants,stockoptionsandconvertiblecorporatebondsissuedbytheinvestee.WhentheCompanydirectlyorindirectlyownsmorethan20%(including20%)butlessthan50%ofthevotingsharesoftheinvestedunit,itisgenerallyconsideredtohaveasignificantimpactontheinvestedunit,unlessthereisclearevidencethatsuchcircumstancescannotparticipateintheproductionandoperationdecisionsoftheinvestedunit,anddoesnothaveasignificantimpact;whentheCompanyownslessthan20%(excluding)votingrightsoftheinvestedunit,itgenerallydoesnotconsiderittohaveasignificantimpactontheinvestedunitunlessthereisclearevidencethatUnderthesecircumstances,itcanparticipateintheproductionandoperationdecisionsoftheinvestedunitandhaveasignificantimpact.
(4)ImpairmenttestmethodandimpairmentprovisionmethodFortheinvestmentsinsubsidiaries,associatesandjointventures,themethodofaccruingassetimpairmentisshownintheNoteV-21.
14.InvestmentPropertyMeasurementmodelofinvestmentrealestateCostingmethodmeasurementDepreciationoramortizationmethodTheinvestmentrealestatereferstotherealestategainingtherentorcapitalappreciationorboth.Itincludesrentedlanduseright,holdinglanduserighttobetransferredaftertheappreciationandrentedbuilding,etc.Theinvestmentrealestateismeasuredinitiallyaccordingtothecostandwithdrawndepreciationoramortizationasregulationsoffixedassetsorintangibleassets.TheCompanyadoptsthecostmodetoconductthesubsequentmeasurementontheinvestmentrealestate,seetheNoteV-21forthemethodofwithdrawingassetimpairmentprovision.Thedifferencebetweenthedisposalincomeofinvestmentrealestatesales,transfer,scrapordamageafterdeductingitsbookvalueandrelatedtaxesisincludedinthecurrentprofitandloss.
15.FixedAssets
(1)ConditionsforRecognitionTheterm“fixedassets”referstothetangibleassetsthatsimultaneouslypossessthefeaturesasfollows:(a)theyareheldforthesakeofproducingcommodities,renderinglaborservice,rentingorbusinessmanagement;and(b)theirusefullifeisinexcessofonefiscalyear.ThefixedassetsareonlyrecognizedwhentherelevanteconomicbenefitsprobablyflowintheCompanyanditscostcouldbereliablemeasured.ThefixedassetsoftheCompanyareinitiallymeasuredattheactualcostatthetimeofacquisition.ThesubsequentexpendituresrelatedtothefixedassetsshallbeincludedinthecostofthefixedassetswhentheeconomicbenefitsrelatedtothefixedassetsarelikelytoflowintotheCompanyandthecostscanbemeasuredreliably.Thedailyrepairexpensesoffixedassetsthatdonotmeettheconditionsofcapitalizedsubsequentexpendituresoffixedassetsshallbeincludedinthecurrentprofitandlossorthecostofrelevantassetsaccordingtothebeneficiarieswhenincurred.Thebookvalueofthereplacedpartshallbeterminated.
(2)DepreciationMethods
| Categoryoffixedassets | Method | Usefullife | Salvagevalue(%) | Annualdeprecation(%) |
| Housingandbuilding | Averagemethodofusefullife | 5-30 | 0-10 | 20.00-3.00 |
| Machineryequipments | Averagemethodofusefullife | 10-18 | 0-10 | 10.00-5.00 |
| Transportationvehicle | Averagemethodofusefullife | 5 | 0-10 | 20.00-18.00 |
| Electronicequipmentsandothers | Averagemethodofusefullife | 5 | 0-10 | 20.00-18.00 |
(3)RecognitionBasis,PricingandDepreciationMethodofFixedAssetunderFinanceLease
WhenthefixedassetsleasedbytheGroupmeetoneormoreofthefollowingcriteria,itisrecognizedasfixedassetunderfinancelease:a)Whentheleasetermexpires,theownershipoftheleasedassetsistransferredtotheGroup.b)TheGrouphastheoptiontopurchaseleasedassets,andthepurchasepriceconcludedisexpectedtobemuchlowerthanthefairvalueoftheleasedassetswhentheoptionisexercised,soitcanbereasonablydeterminedthattheGroupwillexercisethisoptionontheleasestartdate.c)Eveniftheownershipoftheassetisnottransferred,theleaseperiodaccountsformostoftheservicelifeoftheleasedasset.d)ThepresentvalueoftheGroup'sminimumleasepaymentontheleasestartdateisalmostequivalenttothefairvalueoftheleasedassetontheleasestartdate.e)TheleasedassetsareofaspecialnatureandonlytheGroupcanleveragethemwithoutmajorrenovation.Thefixedassetsunderfinanceleaseshallbethebookedvalueatthelowerofthefairvalueoftheleasedassetsontheleasestartdateandthepresentvalueoftheminimumleasepayment.Theminimumleasepaymentistakenasthebookvalueoflong-termpayables,andthedifferenceistakenasunrecognizedfinancingexpenses.Theinitialdirectcostssuchashandlingcharges,attorney'sfees,travelexpenses,andstamptaxesthatincurredduringtheleasenegotiationandsigningoftheleasecontractareincludedinthevalueoftheleasedasset.Unrecognizedfinancingexpensesareallocatedleveragingtheeffectiveinterestratemethodineachperiodoftheleaseperiod.Fixedassetunderfinanceleaseadoptsthesamepolicyasitsownfixedassetstowithdrawdepreciationofleasedassets.Ifitcanbereasonablydeterminedthattheownershipoftheleasedassetwillbeacquiredattheendoftheleaseperiod,depreciationwillbeaccruedwithintheusefullifeoftheleasedasset;ifitcannotbereasonablydeterminedthattheownershipoftheleasedassetcanbeacquiredattheendoftheleaseperiod,thedepreciationshallbeaccruedintheshorterperiodbetweentheleaseperiodandtheresiduallifeoftheleasedasset.
(4)OtherNotesAttheendofeachyear,reviewiscarriedoutbytheGroupfortheservicelife,estimatednetresidualvalueanddepreciationmethodoffixedassets.Ifthereisanydifferencebetweentheexpectedservicelifeandtheoriginalestimatedservicelife,theservicelifeoffixedassetswillbeadjusted;ifthereisanydifferencebetweentheexpectednetresidualvalueandtheoriginalestimatednetresidualvalue,theexpectednetresidualvaluewillbeadjusted.MajorrepairexpensesincurredbytheGroupintheregularinspectionoffixedassetsareincludedinthecostoffixedassetsifevidenceshowsthattheymeettherecognitionconditionsoffixedassets,andthosefailtomeettherecognitionconditionsoffixedassetsareincludedinthecurrentprofitandloss.Fixedassetsatintervalsofregularmajorrepairsshallbedepreciatedasaccrued.
16.ConstructioninProgress
Constructioninprocessismeasuredatactualcost.Actualcostcomprisesconstructioncosts,borrowingcoststhatareeligibleforcapitalizationbeforethefixedassetsbeingreadyfortheirintendedusandotherrelevantcosts.Constructioninprocessistransferredtofixedassetswhentheassetsarereadyfortheirintendeduse.SeethedetailsoftheimpairmentprovisionwithdrawalmethodoftheconstructioninprogresstoNotesV-21.
17.EngineeringMaterialsEngineeringmaterialsoftheCompanyrefertovariousmaterialspreparedforprojectsunderconstruction,includingengineeringmaterials,equipmentnotyetinstalled,toolsandinstrumentspreparedforproduction,etc.Thepurchasedengineeringmaterialswillbemeasuredaccordingtothecost.Thereceivedengineeringmaterialswillbetransferred
totheprojectunderconstruction,andtheremainingengineeringmaterialsafterthecompletionoftheprojectwillbestoredasinventory.PleaserefertoNoteV(21)forthemethodofprovisionforimpairmentofassetsforengineeringmaterials.Inthebalancesheet,theendingbalanceofengineeringmaterialsislistedinthe"projectunderconstruction"item.
18.BorrowingCosts
(1)ConfirmationprincipleofCapitalizedBorrowingExpenseTheborrowingexpensesincurredbytheCompany,ifcandirectlybelongtoacquisition,constructionorproductionofassetsmeetingcapitalizationconditions,arecapitalizedandincludedinrelevantassetcost;otherborrowingexpensesareconfirmedasexpenseaccordingtoitsamountatthetimeofoccurrenceandincludedinthecurrentprofitsandlosses.Iftheborrowingexpensesmeetthefollowingconditions,capitalizationstarts:
①Assetsexpenditurehasoccurred,andassetexpenditureincludestheexpenditureoccurringintheformofpaymentincash,transferringnoncashassetorassuminginterestbearingdebtforacquiring,constructingorproducingtheassetsmeetingcapitalizationconditions;
②Borrowingexpenseshaveoccurred;
③Theacquisition,constructionorproductionactivitiesrequiredformakingassetsusableorsaleableasintendedhavestarted.
(2)CapitalizationperiodofborrowingexpensesWhentheCompanyacquires,constructsorproducesassets,whichmeetcapitalizationconditionsandreachtheintendedusableorsaleablestatus,theborrowingexpensesstopcapitalization.Theborrowingexpensesthatoccuraftertheassetsmeetingcapitalizationconditionsreachtheintendedusableorsaleablestatusareconfirmedasexpensesaccordingtoitsamountatthetimeofoccurrenceandareincludedinthecurrentprofitsandlosses.Iftheassetsmeetingcapitalconditionsgenerateimproperinterruptioninthecourseofacquisition,constructionorproduction,andtheinterruptiontimecontinuouslyexceedsthreemonths,capitalizationofborrowingexpensessuspends;theborrowingexpensesinthenormalinterruptionperiodarecontinuallycapitalized.
(3)CapitalizationrateofborrowingexpensesandcalculationmethodofcapitalizedamountTheinterestexpensesofspecialborrowingactuallyoccurringinthecurrentperiod,minustheinterestincomeoftheunusedborrowedcapitalobtainedfromdepositinginbankorthegainontemporaryinvestment,arecapitalized;forcommonborrowing,theweightedaverageofassetexpenditureofthepartthatthecumulativeassetexpenditureexceedsspecialborrowingismultipliedbythecapitalizationrateoftheoccupiedcommonborrowingtodeterminecapitalizationamount.Capitalizationrateiscalculatedanddeterminedaccordingtotheweightedaveragerateofcommonborrowing.Intheperiodofcapitalization,theexchangedifferenceofspecialborrowinginforeigncurrencyisfullycapitalized;theexchangedifferenceofspecialborrowinginforeigncurrencyisincludedinthecurrentprofitsandlosses.
19.Right-of-useAssets
(1)Recognitionconditionsforright-of-useassetsTheterm"right-of-useassets"referstotherightofthelesseetousetheleasedassetsduringtheleaseterm.Atthestartdateoftheleaseterm.TheCompanyinitiallymeasurestheright-of-useassetsatcost.Thecostincludes:a)theinitialmeasurementamountofleaseobligations;b)theleasepaymentamountpaidonorpriortotheinceptionofthelease(lesstherelatedamountofleaseincentivesalreadyenjoyedifany);c)theinitialdirectcostincurredbythelessee;andd)theanticipatedcostofdismantlingandremovingtheleaseholdproperty,restoringthesitewheretheleaseholdpropertyislocated,orbringingtheleaseholdpropertybacktothestateagreeduponintheleaseterms.TheCompanymakesprovisionfordepreciationofright-of-useassetswiththecompositelifemethod.WhereitcanbereasonablycertainthattheCompanywillobtainownershipoftheleasedassetsattheexpiryoftheleaseterm,theleasedassetsaredepreciated
overtheexpectedresidualservicelife;whereitcannotbereasonablycertainthattheCompanycanobtainownershipoftheleasedassetsattheendoftheleaseterm,theleasedassetsaredepreciatedattheshorteroftheleasetermandtheresidualservicelifeoftheleasedassets.TheCompanywilldeterminetheimpairmentofright-of-useassetsandconductaccountingtreatmentinaccordancewithrelevantprovisionsoftheAccountingStandardsforBusinessEnterprisesNo.8-AssetImpairment.
20.IntangibleAssets
(1)PricingMethod,UsefulLifeandImpairmentTest
TheintangibleassetsoftheCompanyincludelanduseright,patentright,etc.Intangibleassetsareinitiallymeasuredatcost,andtheirservicelifeisanalyzedanddeterminedwhenintangibleassetsareacquired.Iftheservicelifeofintangibleassetsislimited,theintangibleassetsshallbeamortizedbythemethodthatcanreflecttheexpectedrealizationmethodoftheeconomicbenefitsrelatedtotheassetswithintheexpectedservicelifesincetheyareavailableforuse.Thestraight-linemethodshallbeusedforamortizationifnoexpectedrealizationmethodcanbedeterminedreliably.Intangibleassetswithuncertainservicelifeshallnotbeamortized.Theamortizationmethodofintangibleassetswithlimitedservicelifeisasfollows:
| Category | Servicelife | Amortizationmethod | Note |
| Landuseright | Stipulatedinthelandcertificate | Methodofline | |
| Patentuseright | 10years | Methodofline | |
| Softwareuseright | 1-3years | Methodofline | |
| Branduseright | 10years | Methodofline |
Attheendofeachyear,theCompanyreviewstheservicelifeandamortizationmethodofintangibleassetswithlimitedservicelife.Iftheestimateisdifferentfromthepreviousone,theoriginalestimateshallbeadjustedandtreatedasperaccountingestimatechange.Ifitisestimatedthatanintangibleassetcannolongerbringfutureeconomicbenefitstotheenterpriseonthedateofbalancesheet,thiscarryingamountoftheintangibleassetshallbetransferredintothecurrentprofitandloss.ThemethodofwithdrawingimpairmentonintangibleassetswasstatedintheNoteV-21.
(2)AccountingPolicyforInternalResearchandDevelopmentExpendituresTheexpendituresforinternalresearchanddevelopmentprojectsofanenterpriseshallbeclassifiedintoresearchexpendituresanddevelopmentexpenditures.Theresearchexpendituresshallberecordedintotheprofitorlossforthecurrentperiod.Thedevelopmentexpenditurescanbecapitalizedonlywhentheysatisfythefollowingconditionssimultaneously:
①Itisfeasibletechnicallytofinishintangibleassetsforuseorsale;②Itisintendedtofinishanduseorselltheintangibleassets;③Theusefulnessofmethodsforintangibleassetstogenerateeconomicbenefitsshallbeproved,includingbeingabletoprovethatthereisapotentialmarketfortheproductsmanufacturedbyapplyingtheintangibleassetsorthereisapotentialmarketfortheintangibleassetsitselfortheintangibleassetswillbeusedinternally;④Itisabletofinishthedevelopmentoftheintangibleassets,andabletouseorselltheintangibleassets,withthesupportofsufficienttechnologies,financialresourcesandotherresources;⑤Thedevelopmentexpendituresoftheintangibleassetscanbereliablymeasured.Thedevelopmentexpendituresshallberecordedintoprofitorlossforthecurrentperiodwhentheydon’tsatisfythefollowingconditions.TheresearchanddevelopmentprojectoftheCompanywillenterthedevelopmentstageaftermeetingtheaboveconditionsandtheprojectisapprovedandinitiatedthroughtechnicalfeasibilityandeconomicfeasibilitystudy.Thecapitalizedexpenditureinthedevelopmentstageislistedasexpenditurefordevelopmentonthebalancesheet,anditwillbetransferredtointangibleassetsfromthedatewhentheprojectreachestheintendedpurpose.
21.ImpairmentofLong-termAssets
Forlongtermequityinvestmentinsubsidiaries,associatedenterprisesandjointventures,investmentrealestatewhichfollow-upmeasurementiscarriedoutbycostpattern,fixedassets,constructioninprogress,right-of-useassets,intangibleassets,businessreputation,etc.(excludinginventory,investmentpropertymeasuredatfairvaluepattern,deferredincometaxassets,financialassets),theimpairmentofassetsshallbedeterminedaccordingtothefollowingmethods:
Onthedateofthebalancesheet,determinationshallbemadetoseewhetherthereisanysignofpossibleimpairmentofassets.Ifthereis,theCompanywillestimateitsrecoverableamountandconductimpairmenttest.Forgoodwill,intangibleassetswithuncertainservicelifeandintangibleassetsthathavenotreachedtheserviceablestateduetobusinessmerger,impairmenttestshallbecarriedouteveryyearregardlessofwhetherthereisanysignofimpairment.Therecoverableamountisdeterminedaccordingtothenetamountofthefairvalueoftheassetminusthedisposalexpensesandthepresentvalueoftheexpectedfuturecashflowoftheasset,thehigheramountshallbeprevail.TheCompanyestimatestherecoverableamountonthebasisofasingleasset.Ifitisdifficulttoestimatetherecoverableamountofasingleasset,therecoverableamountoftheassetgroupshallbedeterminedbasedontheassetgrouptowhichtheassetbelongs.Theassetgroupisdeterminedonthebasisofwhetherthemaincashinflowgeneratedbytheassetgroupisindependentofthecashinflowofotherassetsorassetgroups.Whentherecoverableamountofanassetorassetgroupislowerthanitscarryingamount,thegroupwillwritedownitscarryingamounttotherecoverableamount,andthewrittendownamountwillbeincludedinthecurrentprofitandloss,andthecorrespondingassetimpairmentreservewillbeaccrued.Regardingtheimpairmenttestofbusinessreputation,thecarryingamountofbusinessreputationformedbybusinessmergershallbeapportionedtotherelevantassetgroupinareasonablewayfromthedateofpurchase.Ifitisdifficulttoapportiontotherelevantassetgroup,itshallbeapportionedtotherelevantcombinationofassetgroup.Therelevantassetgrouporcombinationofassetgroupsistheonethatcanbenefitfromthesynergyeffectofbusinessmerger,andistheonesmallerthanthereportablesegmentdeterminedbytheCompany.Intheimpairmenttest,ifthereisanysignofimpairmentintheassetgrouporcombinationofassetgroupsrelatedtobusinessreputation,first,impairmenttestshallbecarriedoutontheassetgrouporcombinationofassetgroupsnotcontainingbusinessreputation,tocalculatetherecoverableamountandrecognizethecorrespondingimpairmentloss.Thenimpairmenttestshallbecarriedoutontheassetgrouporcombinationofassetgroupcontainingbusinessreputationtocomparethecarryingamountwiththerecoverableamount.Iftherecoverableamountislowerthanthecarryingamount,theimpairmentlossofbusinessreputationshallberecognized.Oncetheimpairmentlossofassetsisrecognized,itwillnotbereversedinthefutureaccountingperiod.
22.Long-termDeferredExpenses
Thelong-termexpensestobeamortizedincurredbytheCompanyarevaluedattheactualcostandamortizedaveragelyaccordingtotheexpectedbenefitperiod.Forlong-termexpensestobeamortized,theamortizedvaluethatcannotbenefitthefutureaccountingperiodshallbeincludedinthecurrentprofitandloss.
23.Payroll
(1)AccountingTreatmentofShort-termCompensation
Duringtheaccountingperiodinwhichemployeesprovideservices,theCompanyrecognizestheactualemployeewages,bonuses,socialinsurancepremiumssuchasmedicalinsurancepremiums,industrialinjuryinsurancepremiums,andmaternityinsurancepremiumsandhousingprovidentfundspaidtoemployeesaccordingtotheprescribedstandardsandproportionsasliabilitiesand
includedtheminthecurrentprofitandlossorrelatedassetcosts.
(2)AccountingTreatmentoftheWelfareafterDeparture
Thepost-employmentbenefitplanincludesadefinedcontributionplanandadefinedbenefitplan.Amongthem,thedefinedcontributionplanreferstothepost-employmentbenefitplanthattheenterprisenolongerassumesfurtherpaymentobligationsafterthefixedfundhaspaidafixedfee;thedefinedbenefitplanreferstothepost-employmentbenefitplanotherthantheestablishedcontributionplan.SetwithdrawalplanThesetcontributionplanincludesbasicpensioninsuranceandunemploymentinsurance.Duringtheaccountingperiodinwhichemployeesprovideservices,theamountofdepositpayablecalculatedaccordingtothesetwithdrawalplanisrecognizedasaliabilityandincludedinthecurrentprofitandlossorrelatedassetcosts.DefineabenefitplanForthedefinedbenefitplan,anindependentactuaryperformsanactuarialvaluationontheannualbalancesheetdate,andthecostofprovidingbenefitsisdeterminedbytheexpectedcumulativebenefitunitmethod.TheemployeecompensationcostcausedbytheCompany'sdefinedbenefitplanincludesthefollowingcomponents:
①Servicecost,includingcurrentservicecost,pastservicecostandsettlementgainsorlosses.Amongthem,thecurrentservicecostreferstotheincreaseinthepresentvalueofthedefinedbenefitplanobligationscausedbytheemployeesprovidingservicesinthecurrentperiod;thepastservicecostreferstothedefinedbenefitrelatedtotheemployeeservicesinthepreviousperiodcausedbythemodificationofthedefinedbenefitplanAnincreaseordecreaseinthepresentvalueofplanobligations.
②Thenetinterestofthenetliabilitiesornetassetsofthedefinedbenefitplan,includingtheinterestincomeoftheplanassets,theinterestexpenseofthedefinedbenefitplanobligationsandtheinterestaffectedbytheassetceiling.
③Re-measurethechangescausedbythenetliabilitiesornetassetsofthedefinedbenefitplan.Unlessotheraccountingstandardsrequireorallowemployeebenefitcoststobeincludedinthecostofassets,theCompanywillincludetheaboveitems①and②intothecurrentprofitandloss;item③isincludedinothercomprehensiveincomeandwillnotbetransferredbacktoprofitorlossinthesubsequentaccountingperiodWhenthedefinedbenefitplanisterminated,allthepartsoriginallyincludedinothercomprehensiveincomearecarriedforwardtoundistributedprofitswithinthescopeofequity.
(3)AccountingTreatmentoftheDemissionWelfareTheCompanyrelievesthelaborrelationwiththeemployeesbeforetheduedateofthelaborcontactsorputsforwardtheadviceofprovidingthecompensationforurgingtheemployeesvolunteeredtoreceivethedownsizingandwhentheCompanycouldnotunilaterallywithdrawthedemissionwelfareowningtotherelievingplanofthelaborrelationorthedownsizingadvice,shouldconfirmtheliabilitiesoftheemployees’salaryfromthedemissionwelfareontheearlierdaybetweenthecostconfirmedbytheCompanyandthecostrelatedtothereorganizationofthepaymentofthedemissionwelfareandincludeswhichinthecurrentgainsandlosses.Regardingtheimplementationofinternalretirementplanoftheemployees,theeconomiccompensationbeforetheofficialretirementdatebelongstothedismissalwelfare.Fromthedatewhentheemployeesstopprovidingservicestothenormalretirementdate,thewagesandsocialinsurancepremiumstobepaidtotheearlyretiredemployeesshallbeincludedinthecurrentprofitandlossatonetime.Financialcompensation(suchasnormalpension)aftertheofficialretirementdateshallbehandledaswelfareafterseparation.
(4)AccountingTreatmentoftheWelfareofOtherLong-termStaffs
Otherlong-termemployeebenefitsprovidedbytheCompanytoemployeesthatmeettheconditionsofdefinedcontributionplansshallbehandledinaccordancewiththeabove-mentionedrelevantprovisionsondefinedcontributionplans.Thoseinlinewiththedefinedbenefitplanshallbehandledinaccordancewiththeabove-mentionedrelevantprovisionsonthedefinedbenefitplan.However,thepartof"changescausedbyremeasuringthenetliabilitiesornetassetsofthedefinedbenefitplan"inthesalarycostofrelevantemployeesshallbeincludedinthecurrentprofitandlossortherelevantassetcost.
24.LeaseLiabilities
TheCompanyinitiallymeasurestheleaseobligationatthepresentvalueoftheleasepaymentsoutstandingatthecommencementdateoftheleaseterm.Leasepaymentsinclude:a)fixedpayment(includingsubstantialfixedpayment),andtherelevantamountafterdeductingtheleaseincentiveifany;b)variableleasepaymentsdependingonindexorratio;c)estimatedpaymentsduetotheguaranteedresidualvalueprovidedbythelessee;d)exercisepriceofthepurchasedoption,providedthatthelesseereasonablydeterminesthattheoptionwillbeexercised;ande)theamounttobepaidfortheexerciseoftheleaseterminationoptions,providedthattheleasetermreflectsthatthelesseewillexercisetheoptionstoterminatethelease.TheCompanyusestheinterestrateimplicitinleaseastherateofdiscount.Iftheinterestrateimplicitinleasecannotbereasonablydetermined,theCompany'sincrementalborrowingrateisusedastherateofdiscount.TheCompanycalculatestheinterestexpensesoftheleaseobligationsduringeachperiodoftheleasetermatafixedperiodicinterestrate,andincludestheminfinancialexpenses.TheperiodicinterestratereferstotherateofdiscountemployedbytheCompanyortherateofdiscountafterrevision.Variableleasepaymentsthatarenotcoveredinthemeasurementoftheleaseobligationsareincludedincurrentprofitorlosswhenactuallyincurred.WhenthereisachangeintheCompany'sevaluationresultsofleaserenewaloptions,leaseterminationoptionsorpurchaseoptions,theCompanywillre-measuretheleaseobligationutilizingthepresentvalueofthechangedleasepaymentandtherevisedrateofdiscount,andadjustthebookvalueofright-of-useassetsaccordingly.Wherethereisachangeinsubstantialleasepayment,estimatedpaymentsduetotheguaranteedresidualvalue,orvariableleasepaymentsdependingonindexorratio,theCompanywillre-measuretheleaseobligationleveragingthepresentvalueofthechangedleasepaymentandtheoriginalrateofdiscount,andadjustthebookvalueofright-of-useassetsaccordingly.
25.Provisions
Iftheobligationrelatedtocontingencymeetsthefollowingconditionsatthesametime,theCompanywillrecognizeitasaprovision.
(1)TheobligationisthecurrentobligationassumedbytheCompany;
(2)TheperformanceoftheobligationislikelytocauseanoutflowofeconomicbenefitsoftheCompany;
(3)Theamountoftheobligationcanbemeasuredreliably.Theprovisionsareinitiallymeasuredinaccordancewiththeoptimalestimateofthenecessaryexpendituresforthefulfillmentofthecurrentobligation,withfactorssuchasrisks,uncertaintyandthetimevalueofmoneyrelatedtocontingenciestakenintoconsiderationcomprehensively.Wherethetimevalueofmoneyhasasignificantimpact,thebestestimateisdeterminedbydiscountingtherelevantfuturecashoutflow.TheCompanyre-checksthebookvalueoftheprovisionsonthebalancesheetdateandadjuststhebookvaluetoreflectthecurrentbestestimate.Ifallorpartoftheexpenditurerequiredtosettlerecognizedprovisionsisexpectedtobecompensatedbyathirdpartyorotherparties,theamountofcompensationshallberecognizedseparatelyasanassetonlywhenitissubstantiallycertainthatitwillbereceived.Therecognizedamountofcompensationshallnotexceedthebookvalueoftherecognizedliabilities.
26.Share-basedPaymentsandEquityInstruments
(1)Categoryofshare-basedpaymentTheshare-basedpaymentsoftheCompanyaredividedintoequity-settledsharepaymentsandcash-settledsharepayments.
(2)MethodofdeterminingthefairvalueofequityinstrumentsTheCompanyshalldeterminethefairvalueofequityinstrumentssuchasoptionsgrantedinactivemarketsaccordingtothequotationsinactivemarkets.Forgrantedequityinstrumentssuchasoptionswithoutactivemarkets,thefairvalueisdeterminedbyoptionpricingmodel.Thefollowingfactorsshallbeconsideredfortheselectedoptionpricingmodel:A.Exercisepriceoftheoption;B.Expirationdateoftheoption;C.Currentpriceoftheobjectshares;D.Expectedfluctuationrateofstockprice;E.Estimateddividendsofshares;F.Risk-freeinterestratewithintheoptionterm.
(3)GroundforrecognizingtheoptimalestimationoffeasiblerightequityinstrumentsOneachbalancesheetdateduringthewaitingperiod,theCompanyshallmaketheoptimalestimatebasedonsubsequentinformationsuchasthelatestchangeinthenumberofemployeeswithfeasiblerights,andrevisethenumberofequityinstrumentsfortheestimatedfeasiblerights.Onthefeasiblerightdate,thefinalestimatednumberoffeasiblerightequityinstrumentsshallbethesameastheactualnumberoffeasiblerights.
(4)Relevantaccountingtreatmentforimplementing,modifyingandterminatingshare-basedpaymentplanEquity-settledshare-basedpaymentsshallbemeasuredatthefairvalueoftheequityinstrumentsgrantedtoemployees.Wheretherightisexercisedimmediatelyafterthegrant,relevantcostsorfeesshallbeincludedinaccordancewiththefairvalueoftheequityinstrumentsonthegrantdatetoaccordinglyincreasethecapitalreserve.Wheretherightisexerciseduponthecompletionoftheservicesduringthewaitingperiodortheachievementofthespecifiedresultconditions,theservicesobtainedinthecurrentperiodshallbeincludedintherelevantcostsorfeesandthecapitalreserveaccordingtothefairvalueoftheequityinstrumentsonthegrantdatebasedontheoptimalestimateofthenumberoffeasiblerightequityinstrumentsoneachbalancesheetdateduringthewaitingperiod.Therecognizedrelatedcostsorfeesandtotalowner'sequityafterthefeasiblerightdateshallnotbeadjustedanymore.Thecash-settledshare-basedpaymentsshallbemeasuredaccordingtothefairvalueofliabilitiescalculatedanddeterminedonthebasisofsharesorotherequityinstruments,whichareassumedbytheCompany.Wheretherightisexercisedimmediatelyafterthegrant,thefairvalueoftheliabilitiesassumedbytheCompanyshallbeincludedintherelevantcostsorfeesonthegrantdate,soastoaccordinglyincreasetheliabilities.Forthecash-settledshare-basedpayments,forwhichtherightisexerciseduponthecompletionoftheservicesduringthewaitingperiodortheachievementofthespecifiedresultconditions,theservicesobtainedinthecurrentperiodshallbeincludedincostsorfeesandcorrespondingliabilitiesaccordingtothefairvalueamountofliabilitiesassumedbytheCompanybasedontheoptimalestimateoffeasiblestatusoneachbalancesheetdateduringthewaitingperiod.Oneachbalancesheetdateandsettlementdatebeforetherelevantliabilitiesaresettled,thefairvalueoftheliabilitiesshallbere-measured,andthechangesshallbeincludedinthecurrentprofitandloss.WhentheCompanymodifiesashare-basedpaymentplan,ifthemodificationincreasesthefairvalueoftheequityinstrumentsgranted,theincreaseintheservicesacquiredshallberecognizedaccordinglyaccordingtotheincreaseinthefairvalueoftheequityinstruments;ifthemodificationincreasesthenumberofequityinstrumentsgranted,thefairvalueoftheincreasedequityinstrumentsshallberecognizedaccordinglyastheincreaseintheservicesacquired.Theincreaseinthefairvalueoftheequityinstrumentsreferstothedifferencebetweenthefairvaluesoftheequityinstrumentsbeforeandafterthemodificationonthemodificationdate.Ifthemodificationreducesthetotalfairvalueoftheshare-basedpaymentoranyothermethodnotconducivetotheemployeesisadoptedtomodifythetermsandconditionsoftheshare-basedpaymentplan,theaccountingtreatmentoftheservicesacquiredwouldcontinue,asifsuchchangehadneveroccurred,unlesstheCompanycancelssomeorallofthegrantedequityinstruments.Duringthewaitingperiod,ifthegrantedequityinstrumentiscanceled(exceptforthecancellationduetonon-marketconditionsthatdonotmeetthefeasibleconditions),theCompanyshalltreatthecanceledequityinstrumentasanacceleratedexercise,immediatelyincludetheleftamounttoberecognizedduringthewaitingperiodinthecurrentprofitandloss,andrecognizethecapitalreserveatthesametime.Wheretheemployeeorotherpartycanchoosetomeetthenon-feasiblerightconditionbutfailsduringthewaiting
period,itshallbetreatedasthecancellationofthegrantedequityinstrument.
27.RevenueAccountingpoliciesadoptedfortherecognitionandmeasurementofrevenue
(1)GeneralprincipleTheCompanyrecognizesrevenuewhenithasfulfilleditscontractperformanceobligationinacontract,namely,whenthecustomerobtainsthecontrolovertherelatedcommodityorservice.Ifacontractcontainstwoormoreperformanceobligations,theCompanyallocatestransactionpricetosingleperformanceobligationsonthecontractcommencementdateaccordingtotherelativeratioofseparatepriceofgoodsorservicescommittedbysingleperformanceobligation,andincomeismeasuredaccordingtothetransactionpriceallocatedtosingleperformanceobligation.Whenmeetingoneofthefollowingconditions,theCompanybelongstoperformanceofcontractperformingobligationsinaperiod,orotherwise,theCompanybelongstoperformanceofcontractperformingobligationsatapointoftime:
①WhiletheCompanyisperformingthecontract,thecustomeracquiresandconsumestheeconomicbenefitarisingfromperformancebytheCompany.
②ThecustomercancontrolthegoodsinconstructioninthecourseofperformancebytheCompany.
③ThegoodsoutputtedinthecourseofperformancebytheCompanyhaveirreplaceablepurpose,andtheCompanyhastherighttocollectionofmoneyforthecompletedperformancepartcumulativeuptonowinthewholetermofcontract.Fortheperformanceobligationperformedinaperiod,theCompanyconfirmsincomeaccordingtotheperformanceprogressinsuchperiod.Whentheperformanceprogresscannotbereasonablydetermined,ifthecostthattheCompanyhasincurredisexpectedtobecompensated,incomeisconfirmedaccordingtothecostamountthathasoccurred,untiltheperformanceprogresscanbereasonablydetermined.Fortheperformanceobligationperformedatapointoftime,incomeisconfirmedatthepointoftimewhenthecustomeracquiresthecontrolrighttorelevantgoodsorservices.Whenitjudgeswhetherthecustomerhasacquiredthecontrolrighttothegoodsorservices,theCompanywillconsiderthefollowingindications:
①TheCompanyenjoysthecurrentcollectionrighttothegoodsorservices,i.e.thecustomerundertakescurrentpaymentobligationtothegoods.
②TheCompanyhastransferredthelegalownershipofthegoodstothecustomer,thatis,thecustomerhasownedthelegalownershipofthegoods.
③TheCompanyhastransferredthekindofthegoodstothecustomer,namely,thecustomerhaspossessedthegoodinkind.
④TheCompanyhastransferredthemajorrisksandremunerationontheownershipofthegoods,i.e.thecustomerhasacquiredthemajorrisksandremunerationontheownershipofthegoods.
④Thecustomerhasacceptedthegoodsorservices.
⑤Otherindicationsshowingthatthecustomerhasacquiredthecontrolrighttothegoods.TheCompanyhastransferredgoodsorservicesandhastherighttocollectconsideration(andtherightdependsonfactorsotherthantimeelapse)ascontractassets,andcontractassetisaccruedimpairmentonthebasisofexpectedcreditloss(refertoNoteV10(6)).TherightoftheCompany,unconditionally(onlydependingontimeelapse)chargingconsiderationfromthecustomer,islistedasreceivable.TheobligationoftheCompanythatshalltransfergoodsorservicestothecustomerfortheconsiderationthathasbeenorshallbecollectedisliabilitytothecontract.Thecontractassetsandcontractliabilitiesunderthesamecontractarelistedinnetamount.Ifnetamountisdebitbalance,itislistedintheitems“contractasset”or“othernon-currentasset”accordingtoitsfluidity;ifnetamountiscreditbalance,itislistedintheitems“contractliability”or“othernon-currentliability”accordingtoitsfluidity.
(2)SpecificmethodsThespecificincomeconfirmingmethodsoftheCompanyarefollowing:
Forincomeofdomesticproducts,aftertheCompanydeliversproductstothepurchaseraccordingtotheprovisionsofthecontractandthepurchaserconfirmsreceipt,thepurchaseracquiresthecontrolrightofproducts,andtheCompanyconfirmsincome.Forincomeofexportableproducts,aftertheCompanycompletescustomsdeclarationofproducts,departureandobtainsbillofladingaccordingtotheprovisionsofthecontract,thepurchaseracquiresthecontrolrightofproducts,andtheCompanyconfirmsincome.RevenueforDAPbusinessisrecognizedwhentheproductsareshippedtothedesignatedreceivinglocationanddeliveredtothecustomer.Differencesinaccountingpoliciesforrevenuerecognitionduetodifferentbusinessmodelsofthesametypeofbusiness
28.GovernmentGrantsGovernmentgrantsarerecognizedwhentheymeettheconditionsattachedtogovernmentgrantsandwhentheycanbereceived.Governmentgrantsformonetaryassetsshallbemeasuredaccordingtotheamountreceivedorreceivable.Governmentgrantsfornon-monetaryassetsshallbemeasuredbyfairvalue,andtheyshallbemeasuredbythenominalamountofRMB1ifthefairvaluecannotbeobtainedreliably.AssetrelatedgovernmentgrantsrefertothegovernmentgrantsobtainedbytheCompanyforacquisitionandconstructionorotherformsoflong-termassets.Inaddition,theyaregovernmentgrantsrelatedtoincome.Regardingthegovernmentgrantsthatthegovernmentdocumentdoesnotspecifytheobjectofsubsidyandcanformlong-termassets,thepartofgovernmentsubsidycorrespondingtotheassetvalueshallberegardedastheasset-relatedgovernmentsubsidyandtherestshallberegardedasincome-relatedgovernmentsubsidy.Ifitisdifficulttodistinguish,thegovernmentsubsidyshallberegardedastheincome-relatedgovernmentsubsidy.Thegovernmentgrantsrelatedtoassetsshallberecognizedasthedeferredincome,whichshallbeincludedintheprofitandlossininstallmentinareasonableandsystematicwaywithintheservicelifeoftherelevantassets.Income-relatedgovernmentgrantswhichareusedtocompensatetherelevantcostsorlossesincurredshallbeincludedinthecurrentprofitandloss.Thoseusedtocompensatetherelevantcostsorlossesinthelaterperiodshallbeincludedinthedeferredincome,andshallbeincludedinthecurrentprofitandlossduringtherecognitionperiodoftherelevantcostsorlosses.Thegovernmentgrantsmeasuredaccordingtothenominalamountshallbedirectlyincludedinthecurrentprofitandloss.ThesamemethodisadoptedforthesameorsimilargovernmentsubsidybusinessesoftheCompany.Governmentgrantsrelatedtodailyactivitiesshallbeincludedinotherincomesaccordingtotheessenceofbusinesstransactions.Governmentgrantsirrelevanttodailyactivitiesareincludedinnon-businessincome.Whentherecognizedgovernmentgrantsneedtobereturned,andareusedtooffsetthecarryingvalueofrelatedassetswheninitiallyrecognized,thecarryingvalueoftheassetsshallbeadjusted;thebookbalanceofrelevantdeferredincomeshallbeoffsetifthereisabalanceofrelevantdeferredincome,andtheexcesspartshallbeincludedinthecurrentprofitandloss.Otherwise,itshallbedirectlyincludedinthecurrentprofitandloss.Regardingtheinterestsubsidyofthepolicypreferentialloanobtained,iftheMinistryofFinanceallocatestheinterestsubsidytotheloanbank,theactualreceivedloanamountshallbetakenastheentryvalueoftheloan,andtheloancostshallbecalculatedaccordingtotheloanprincipalandthepolicypreferentialinterestrate.IftheMinistryofFinanceallocatestheinterestsubsidydirectlytotheCompany,theinterestsubsidywilloffsettheborrowingcosts.
29.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilitiesIncometaxincludescurrentincometaxanddeferredincometax.Allshallbeincludedinthecurrentprofitandlossasincometaxexpenseexcepttheadjustmentbusinessreputationarisingfrombusinessmerger,orthedeferredincometaxrelatedtothetransactionsoreventsdirectlyincludedintheowner'sequityisincludedintheowner'sequity.Pursuanttothetemporarydifferencebetweenthecarryingamountofassetsandliabilitiesonthedateofbalancesheetandthetaxbasis,theCompanyrecognizesthedeferredincometaxbybalancesheetliabilitymethod.
Foralltaxabletemporarydifferences,relateddeferredincometaxliabilitiesarerecognized,unlessthetaxabletemporarydifferencesaregeneratedinthefollowingtransactions:
(1)Theinitialrecognitionofbusinessreputationortheinitialrecognitionofassetsorliabilitiesarisingfromtransactionswiththefollowingcharacteristics:Thetransactionisnotabusinessmerger,anddoesnotaffecttheaccountingprofitortaxableincomewhenitoccurs;
(2)Regardingthetaxabletemporarydifferencerelatedtotheinvestmentofsubsidiaries,jointventuresandassociatedenterprises,thetimeofreversalofthetemporarydifferencecanbecontrolledandthetemporarydifferenceisunlikelytobereversedintheforeseeablefuture.Fordeductibletemporarydifferences,deductiblelossesandtaxcreditsthatcanbecarriedforwardinsubsequentyears,theCompanyislikelytoobtainthefuturetaxableincomeasthelimittooffsetthedeductibletemporarydifferences,deductiblelossesandtaxcredits,inwhichwaytorecognizethedeferredincometaxassetsarisingfromthedeductibletemporarydifferences,deductiblelossesandtaxcredits,unlessthedeductibletemporarydifferencesaregeneratedinthefollowingtransactions:
(1)Thetransactionisnotabusinessmerger,anddoesnotaffecttheaccountingprofitnortaxableincomewhenitoccurs;
(2)Thecorrespondingdeferredincometaxassetsshallberecognizedifthedeductibletemporarydifferencesrelatedtotheinvestmentofsubsidiaries,jointventuresandassociatedenterprisesmeetthefollowingconditionssimultaneously:Thetemporarydifferencesarelikelytobereversedintheforeseeablefuture,andthetaxableincomeusedtodeductthedeductibletemporarydifferencesislikelytobeobtainedinthefuture.Onthedateofthebalancesheet,theincometaxassetsanddeferredincometaxliabilitiesshallbemeasuredbytheCompanyonthebasisoftheapplicabletaxrateduringtheperiodwhentheassetsareexpectedtoberecoveredortheliabilitiesareexpectedtobepaidoff,andtheincometaximpactontheexpectedrecoveryofassetsonthedateofthebalancesheetoronthemethodtopayofftheliabilitiesshallbereflected.Thebookvalueofdeferredincometaxassetsshallbereviewedateachbalancesheetdate.Ifitisunlikelytoobtainsufficienttaxableincometooffsetagainstthebenefitofthedeferredincometaxasset,thebookvalueofthedeferredincometaxassetsshallbewrittendown.Anysuchwrite-downshouldbesubsequentlyreversedwhereitbecomesprobablethatsufficienttaxableincomewillbeavailable.
30.Lease
(1)IdentificationofleaseOnthestartdateofthecontract,theCompanyassessedasthelesseeorthelessorwhetherthecustomersinthecontractareentitledtoobtainalmostalltheeconomicbenefitsarisingfromtheuseoftheidentifiedassetsduringtheuseperiod,andhavetherighttodominatetheuseoftheidentifiedassetsduringtheuseperiod.Ifapartytothecontracttransferredtherightallowingthecontrolovertheuseofoneormoreassetsthathavebeenidentifiedwithinacertainperiod,inexchangeforaconsideration,suchcontractisdeterminedbytheCompanytobealeaseorincludesalease.
(2)Asthelessee
Onthecommencementdateoftheleaseterm,theCompanyrecognizestheright-of-useassetsandleaseliabilitiesforallleases,exceptforshort-termleasesandlow-valueassetleaseswithsimplifiedtreatment.Foraccountingpoliciesfortheright-of-useassets,seeNoteV-19.Leaseliabilitiesareinitiallymeasuredinlinewiththeleasepaymentsnotyetpaidonthecommencementdateoftheleasetermusingthepresentvaluecalculatedbytheinterestrateimplicitinlease.Iftheinterestrateimplicitinleasecannotbedetermined,theincrementalborrowingrateshallbeusedasthediscountrate.Leasepaymentsinclude:Fixedpaymentandsubstantialfixedpayment,andtherelevantamountafterdeductingtheleaseincentiveifany;variableleasepaymentsdependingonindexorratio;exerciseprice
ofthepurchasedoption,providedthatthelesseereasonablydeterminesthattheoptionwillbeexercised;theamounttobepaidfortheexerciseoftheleaseterminationoptions,providedthattheleasetermreflectsthatthelesseewillexercisetheoptionstoterminatethelease;andestimatedpaymentsduetotheguaranteedresidualvalueprovidedbythelessee.Subsequently,itcalculatestheinterestexpensesoftheleaseliabilitiesduringeachperiodoftheleasetermatafixedperiodicinterestrate,andincludesthemincurrentprofitandloss.Variableleasepaymentsthatarenotcoveredinthemeasurementoftheleaseliabilitiesareincludedincurrentprofitorlosswhenactuallyincurred.Short-termleaseAshort-termleasereferstoaleaseforaperiodnotexceeding12monthsonthecommencementdateofthelease,exceptforleaseswithapurchaseoption.TheCompanyincludestheshort-termleasepaymentinthecostofrelevantassetsorthecurrentprofitandlossineachperiodoftheleasetermbythestraight-linemethod.Low-valueassetleaseAlow-valueassetleasereferstoaleasewherethevalueislowerthanRMB40,000andasingleleasedassetisanewasset.TheCompanyincludestheleasepaymentofthelow-valueassetleaseinthecostofrelevantassetsorthecurrentprofitandlossineachperiodoftheleasetermbythestraight-linemethod.Forlow-valueassetlease,itchoosestoadopttheaforesaidsimplifiedtreatmentmethodinlinewiththespecificstatusofeachlease.LeasechangeIfaleasechangesandmeetsthefollowingconditionssimultaneously,theleasechangeshallberegardedasaseparateleaseforaccountingtreatment:a)Theleasechangeexpandsitsleasecopebyincreasingoneormultipleuserightsofleaseassets;andb)Theincreasedconsiderationisequivalenttotheamountoftheseparatepricefortheexpandedpartofthelease,whichisadjustedaccordingtothecontract.Wheretheleasechangeisnotregardedasaseparateleaseforaccountingtreatment,ontheeffectivedateoftheleasechange,bytheCompany,theconsiderationofthecontractisamortizedagainuponchange,theleasetermisredetermined,andtheleaseliabilitiesareremeasuredaccordingtothepresentvaluethatiscalculatedbytheleasepaymentsandthereviseddiscountrateuponchange.TheCompanyshallcorrespondinglyreducethebookvalueoftheright-of-useassetsandincludetheprofitorlossoftheleaseterminatedinpartorwholeinthecurrentprofitorloss,iftheleasechangenarrowsthescopeofleaseorshortenstheleaseterm.TheCompanyshallcorrespondinglyadjustthebookvalueoftheright-of-useassets,ifotherleasechangesresultinthere-calculationoftheleaseliability.
(3)AsthelessorWhentheCompanyisalessor,itshallrecognizeleasesthatsubstantiallytransferallrisksandremunerationrelatedtotheownershipofassetsasfinanceleases,andleasesotherthanfinanceleasesasoperatingleases.FinancialleaseInafinancelease,theCompanyrecognizesthenetleaseinvestmentasthebookvalueoffinanceleasereceivablesonthecommencementdateoftheleaseterm.Thenetleaseinvestmentisthesumoftheunguaranteedresidualvalueandthepresentvalueofleasereceivablesnotyetreceivedonthecommencementdateoftheleasetermattheinterestrateimplicitinlease.TheCompanycalculatesandconfirmstheinterestincomeatafixedperiodicinterestrateineachperiodintheleaseterm.Variableleasepaymentsobtainedthatarenotincludedinthenetleaseinvestmentformeasurement,wheretheCompanyisthelessor,areincludedintheprofitorlossofthecurrentperiodwhenactuallyincurred.AccountingtreatmentshallbeconductedforthederecognitionandimpairmentoffinanceleasereceivablesinaccordancewiththeprovisionsoftheAccountingStandardforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstrumentsandtheAccountingStandardforBusinessEnterprisesNo.23-TransferofFinancialAssets.Operatingleases
TheCompanyshallrecognizethecurrentprofitandlossoftherentoftheoperatingleaseineachperiodoftheleasetermbythestraight-linemethod.Theinitialdirectcostsrelatedtotheoperatingleaseshallbecapitalized,amortizedwithintheleasetermonthesamebasisastherecognitionofrentalearning,andincludedinprofitorlossforthecurrentperiod.Thereceivedvariableleasepaymentsrelatedtotheoperatingleasethatarenotincludedintheleasepaymentsreceivableareincludedinprofitorlossforthecurrentperiodwhentheyareactuallyincurred.LeasechangeWhereanoperatingleasechanges,theaccountingtreatmentisconductedforitwhichisregardedasanewleasefromtheeffectivedateofthechange,andreceivablesinadvanceorleasereceivablesrelatedtoleasebeforechangearedeemedasthereceivablesinthenewlease.Whereafinanceleasechangesandmeetsthefollowingconditionssimultaneously,thechangeisregardedasaseparateleasebytheCompanyforaccountingtreatment:a)Thechangeexpandsitsleasecopebyincreasingoneormultipleuserightsofleaseassets;andb)Theincreasedconsiderationisequivalenttotheamountoftheseparatepricefortheexpandedpartofthelease,whichisadjustedaccordingtothecontract.Whereafinanceleasechangesandisnotregardedasaseparateleaseforaccountingtreatment,theCompanytreatsthechangedleaseunderthefollowingcircumstances:a)Ifthechangecomesintoforceonthecommencementdateoftheleaseterm,theleasewillbeclarifiedasanoperatinglease,whileitwillberegardedasanewleaseforaccountingtreatmentbytheCompanyontheeffectivedateoftheleasechange,andthenetleaseinvestmentbeforetheeffectivedateofleasechangewillberegardedasthebookvalueofleaseassets;andb)Ifthechangecomesintoforceonthecommencementdateoftheleaseterm,theleasewillbeclarifiedasafinancelease,theCompanywillcarryoutaccountingtreatmentinaccordancewiththeprovisionsonmodificationorrenegotiationofacontractoftheAccountingStandardforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstruments.
31.CostofSafetyProductionandMaintenance
InaccordancewiththeregulationsoftheNoticeonIssuingtheManagementMeasuresfortheProvisionandUseofEnterpriseProductionSafetyCosts(C.Z.[2022]No.136)issuedbytheMinistryofFinanceandtheMinistryofEmergency,andbasedontheaboveactualannualoperatingrevenueofpowergenerationandsupplyenterprises,theCompanyadoptsthemethodwherethedeductionratedeclineswhentheoperatingrevenueincreasestodeductsafetyproductioncostsaccordingtothefollowingstandards:
| Annualactualsalesrevenuestandard | Proportionofsafetyproductioncost(%) |
| NotexceedingRMB10million | 3 |
| RMB10milliontoRMB100million | 1.5 |
| RMB100milliontoRMB1billion | 1 |
| RMB1billiontoRMB5billion | 0.8 |
Safetyproductioncostsandcostsforsustainingsimplereproductionareincludedinthecostofrelevantproductionorcurrentlossandprofitwhendeducted,andaresimultaneouslyincludedinthe“specificreserve”.Whenusingthedeductedsafetyproductioncostsandthecostsforsustainingsimplereproductioninconformitywithregulations,theoutgoingexpendituresshalldirectlybeusedtooffsetthespecificreserve;thecostsbecomingfixedassetsshallbeaggregatedunder“constructioninprogress”andthenberecognizedasfixedassetswhenthesafetyprojectiscompletedandreachestheintendedavailablestatus;Theaforesaidfixedassetswillnotbedepreciatedasaccruedinthefutureperiod.
32.RepurchaseofShares
BeforethesharesrepurchasedbytheCompanyarecancelledortransferred,theyaremanagedastreasuryshares,andallexpenditures
fortherepurchaseofsharesaretransferredtothecostoftreasuryshares.Considerationandtransactioncostspaidinsharerepurchasereduceshareholders'equity.Whenbuyingback,transferringorcancellingsharesintheCompany,noprofitsorlossesarerecognized.Thetransferofinventorysharesshallbecreditedtothecapitalreserveonthebasisofthedifferencebetweentheamountactuallyreceivedandthecarryingamountofthetreasurystock.Writeoffsurplusreservesandundistributedprofitsifcapitalreservesareinsufficienttooffset.Write-offoftreasurystockscanreducesharesinparwithparvalueandnumberofwrite-outstocks.Thecapitalreserveisoffsetbasedonthedifferencebetweenbookbalanceandfacevalueofcancelledtreasurystocks.Writeoffsurplusreservesandundistributedprofitsifcapitalreservesareinsufficienttooffset.
33.RestrictedSharesIntheequityincentiveplan,theCompanygrantsrestrictedstockstotheincentivepersonnel,whofirstlysubscribethestocks.Iftheunlockingconditionsspecifiedintheequityincentiveplanarenotmet,theCompanywillrepurchasethestocksatthepreviouslyagreedprice.Wheretherestrictedstocksissuedtotheemployeeshasgonethroughcapitalincreaseproceduressuchasregistrationinaccordancewithrelevantprovisions,theCompanyshall,onthegrantdate,recognizethesharecapitalandthecapitalreserve(sharecapitalpremium)inconformitywiththesubscriptionpaymentreceivedfromtheemployees.Meanwhile,itshallrecognizethetreasurystocksandotherpayableswithrespecttorepurchaseobligations.
34.ChangesinMainAccountingPoliciesandEstimates
(1)SignificantChangesinAccountingPolicies
□Applicable?Notapplicable
(2)SignificantChangesinAccountingEstimates
□Applicable?Notapplicable
(3)AdjustmentstoFinancialStatementItemsattheBeginningoftheYearoftheFirstImplementationoftheNewAccountingStandardsImplementedsince2023
□Applicable?Notapplicable
35.MaterialAccountingJudgmentsandEstimates
TheCompanyevaluatestheimportantaccountingestimatesandkeyassumptionsadoptedonanongoingbasis,basedonhistoricalexperienceandotherfactors,includingreasonableexpectationsoffutureevents.Importantaccountingestimatesandcriticalassumptionsthathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfiscalyeararelistedasfollows:
ClassificationoffinancialassetsThesignificantjudgmentsinvolvedwhentheCompanydeterminestheclassificationoffinancialassetsincludeanalysisofbusinessmodelsandcontractualcashflowcharacteristics.TheCompanydeterminesthebusinessmodelformanagingfinancialassetsatthelevelofthefinancialassetportfolio,takingintoaccountfactorssuchastheapproachofevaluatingandreportingtheperformanceoffinancialassetstokeymanagementpersonnel,therisksaffectingtheperformanceoffinancialassetsandthemannerinwhichtheyaremanaged,andwayinwhichtherelevantbusinessmanagementpersonnelarecompensated.Thefollowingmainjudgmentsexistinassessingwhetherthecontractualcashflowsoffinancialassetsareconsistentwiththebasiclendingarrangements:
Whetherthetimedistributionoramountoftheprincipalamountduringthedurationmaychangeduetoearlyrepaymentorforother
reasons;whethertheinterestincludesonlythetimevalueofmoney,creditrisk,otherbasiclendingrisksandconsiderationagainstcostsandprofits.Forexample,whethertheamountofearlyrepaymentreflectsonlytheoutstandingprincipalandinterestbasedontheoutstandingprincipal,aswellasreasonablecompensationpaidforearlyterminationofthecontract.MeasurementofexpectedcreditlossesofaccountsreceivableTheCompanycalculatestheexpectedcreditlossofaccountsreceivableusingtheexposuretodefaultriskofaccountsreceivableandtheexpectedcreditlossratio,anddeterminestheexpectedcreditlossratiobasedontheprobabilityofdefaultandthedefaultlossratio.Whendeterminingtheexpectedcreditlossratio,theCompanyusesdatasuchasinternalhistoricalcreditlossexperienceandadjustshistoricaldatatotakeintoaccountcurrentconditionsandforward-lookinginformation.Whenconsideringforward-lookinginformation,theCompanyusesindicatorssuchastheriskofeconomicdownturnandchangesintheexternalmarketenvironment,technologicalenvironmentandcustomerprofile.TheCompanyregularlymonitorsandreviewstheassumptionsrelatedtothecalculationofexpectedcreditlosses.GoodwillimpairmentWeshallassesswhetherthereisimpairmentofgoodwillatleastannually.Thisrequiresestimatingtheusevalueoftheassetgrouptowhichgoodwillhasbeenassigned.Whenestimatingtheusevalue,theCompanyshallestimatethefuturecashflowsfromtheassetgroupandselecttheappropriatediscountratetocalculatethepresentvalueoffuturecashflowsatthesametime.DeferredincometaxassetsTotheextentthatitisprobablethatsufficienttaxableprofitwillbeavailabletooffsetthelosses,theCompanyrecognizesdeferredincometaxassetsforallunusedtaxlosses.ThisrequirestheCompany'smanagementtousemanyjudgmentstoestimatethetimingandamountoffuturetaxableprofits,takingintoaccounttaxplanningstrategies,soastodeterminetheamountofdeferredincometaxassetstoberecognized.DeterminationoffairvalueofunlistedequityinvestmentThefairvalueofunlistedequityinvestmentistheexpectedfuturecashflowsdiscountedatthecurrentdiscountrateforitemswithsimilartermsandriskcharacteristics.SuchvaluationrequirestheCompanytoestimateexpectedfuturecashflowsanddiscountratesandisthereforesubjecttouncertainty.Underlimitedcircumstances,iftheinformationusedtodeterminefairvalueisinsufficient,oriftherangeofpossibleestimatesoffairvalueiswideandthecostrepresentsthebestestimateoffairvaluewithinthatrange,thecostmayrepresentitsappropriateestimateoffairvaluewithinthatrangeofdistribution.
VITaxation
1.MainTaxesandTaxRate
| Categoryoftaxes | Taxbasis | Taxrate |
| VAT | Taxablevalue-addedamount(thetaxableamountiscalculatedbymultiplyingthetaxablesalesbytheapplicabletaxrateanddeductingtheinputtaxallowedtobedeductedinthecurrentperiod) | 13%,9%,6%,5%,3%,0 |
| Urbanmaintenanceandconstructiontax | Turnovertaxactuallypaid | 7%,5% |
| Enterpriseincometax | Incometaxpayable | 0,11%,15%,16.5%,17%,20%,25% |
Notesofthedisclosuresituationofthetaxpayingbodieswithdifferententerprisesincometaxrate
| Taxpayer | Incometaxrate |
| TheCompany | 15% |
| LufengWeaving&Dyeing | 15% |
| LulianNewMaterials | 15% |
| LuThaiHongKong | 16.50% |
| ShanghaiLuThai | 20% |
| ShanghaiZhinuo | 20% |
| ZhishuConsulting | 20% |
| BanyangVilla | 20% |
| LuThaiVocationalTrainingSchool | 0% |
| HuilinInternational | 15% |
| LIIPL | 17% |
| VACL | 11% |
| Othersintheconsolidationscope | 25% |
2.TaxPreference
TheCompany,togetherwithitsholdingsubsidiaries,includingLufengWeaving&DyeingandLulianNewMaterials,hasbeenrecognizedasahigh-techenterprise.Therefore,inaccordancewithArticle28oftheEnterpriseIncomeTaxLawofthePeople’sRepublicofChinaandtheAnnouncementoftheStateAdministrationofTaxationonIssuesConcerningtheImplementationofPreferentialIncomeTaxPoliciesforHigh-techEnterprises(AnnouncementNo.24[2017]oftheStateAdministrationofTaxation),theapplicableenterpriseincometaxrateshallbe15%.LuThai(HongKong)TextileCo.,Ltd.(hereinafterrefersasLuThai(HongKong)Textile),thewholly-ownedsubsidiaryoftheCompany,wasincorporatedinHongKongSAR,whoseprofittaxshallbepaidattaxrateof16.5%.Thewholly-ownedsubsidiaries,includingShanghaiLuthai,ShanghaiZhinuo,ZhishuConsulting,andBanyangVilla,havebeenrecognizedassmall,low-profitenterprises.AccordingtotheAnnouncementoftheMinistryofFinanceandtheStateTaxationAdministrationonPreferentialIncomeTaxPoliciesforSmall,Low-profitEnterprisesandPrivatelyorIndividually-ownedBusinesses(AnnouncementNo.6[2023]oftheMinistryofFinanceandtheStateTaxationAdministration)andAnnouncementoftheMinistryofFinanceandtheStateTaxationAdministrationonFurtherImplementingthePreferentialIncomeTaxPoliciesforMicroandSmallEnterprises(AnnouncementNo.13[2022]oftheMinistryofFinanceandtheStateTaxationAdministration),theportionoftheannualtaxableincomeofsmall,low-profitenterprisesnotexceedingRMB3millionshallbeincludedinthetaxableincomeatareducedrateof25%,andtheenterpriseincometaxshallbepaidatthetaxrateof20%.Thewholly-ownedsubsidiary,LuThaiVocationalTrainingSchool,hasbeenrecognizedasanon-profitmakingorganizationexemptfromtaxbetween2021and2025.AccordingtoArticle26,Item4oftheEnterpriseIncomeTaxLawofthePeople’sRepublicofChina,thepolicywherebyeligiblenon-profitmakingorganizationsareexemptfromenterpriseincometaxshallapplytotheforegoingsubsidiary.Thewholly-ownedsubsidiary,HuilinInternational,whichwasregisteredintheHainanFreeTradePortandoperatesintheencouragedindustry,shallpayenterpriseincometaxatareducedtaxrateof15%between1January2020and31December2024,accordingtotheAnnouncementoftheMinistryofFinanceandtheStateTaxationAdministrationonthePreferentialIncomeTax
PoliciesforEnterprisesRegisteredintheHainanFreeTradePort(AnnouncementNo.31[2020]oftheMinistryofFinanceandtheStateTaxationAdministration).TheWholly-ownedsubsidiaryLIIPLofHuilinInternationalisregisteredinSingaporeandpaysthecorporateincometaxatarateof17%.ThewhollyownsubsidiaryVACL,accordingtotheBurma’sSpecialEconomicZoneLawissuedbyPyidaungsuHluttaw,VACLenjoystaxpreferenceoncorporateincometaxof7(7yearstaxholiday)+5(5yearstaxrevenuesdropbyhalf)+5(re-investtheprofitswithin1yearandcontinuestoenjoythehalftaxrevenues5yearsafterwards).Aftergraceperiod,enterpriseincometaxratewasof22%.Year2023isthefirstyearoftaxhalvingperiodwiththeenterpriseincometaxrateat11%.LuThaiAmerica,thewholly-ownedsubsidiaryoftheCompanyregisteredinNewYork,America,wasimposedthefederalenterpriseincometaxatfixedtaxrateof21%,andimposedtheNewYorkEnterpriseincometaxatthefixedtaxrateof6.5%.
VII.NotestoMainItemsofConsolidatedFinancialStatements
1.MonetaryAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Cashonhand | 4,718,966.73 | 2,360,089.79 |
| Bankdeposits | 1,544,812,531.20 | 2,054,133,036.04 |
| Othermonetaryfunds | 1,911,794.04 | 11,275,128.14 |
| Total | 1,551,443,291.97 | 2,067,768,253.97 |
| Ofwhich:totalamountdepositedoverseas | 254,835,924.09 | 246,365,368.50 |
Othernotes:
(1)On30June2023,themonetaryassetswithrestrictedownershipwereofRMB1,910,353.64,whichwerethedepositfordomesticguaranteebusinessofRMB515,460.80andthedepositforL/CofUSD193,043.38(equivalenttoRMB1,394,892.84).
(2)TheinterestreceivableinbankdepositswasRMB26,959,329.60.
2.TradingFinancialAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Financialassetsatfairvaluethroughprofitorloss | 918,839,425.27 | 267,695,159.48 |
| Ofwhich: | ||
| Debtinstrumentinvestment | 901,270,568.81 | 239,522,650.65 |
| Derivativefinancialassets | 17,568,856.46 | 28,172,508.83 |
| Ofwhich: | ||
| Total | 918,839,425.27 | 267,695,159.48 |
3.NotesReceivable
(1)NotesReceivableListedbyCategory
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Bankacceptancebill | 85,221,612.48 | 95,123,874.32 |
| L/C | 112,083,380.93 | 73,631,841.52 |
| Total | 197,304,993.41 | 168,755,715.84 |
Unit:RMB
| Category | Endingbalance | Beginningbalance | ||||||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
| Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
| Notesreceivableforwhichbaddebtprovisionseparatelyaccrued | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 |
| Ofwhich: | ||||||||||
| Notesreceivableofbaddebtprovisionwithdrawnbygroups | 197,304,993.41 | 100.00% | 197,304,993.41 | 168,755,715.84 | 100.00% | 168,755,715.84 | ||||
| Ofwhich: | ||||||||||
| Tradeacceptance | 0.00 | 0.00% | ||||||||
| BankacceptancebillandL/C | 197,304,993.41 | 100.00% | 197,304,993.41 | 168,755,715.84 | 100.00% | 168,755,715.84 | ||||
| Total | 197,304,993.41 | 100.00% | 0.00 | 0.00% | 197,304,993.41 | 168,755,715.84 | 100.00% | 168,755,715.84 | ||
Pleaserefertotherelevantinformationofdisclosureofbaddebtprovisionofotheraccountsreceivableifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofnotesreceivable.
□Applicable?Notapplicable
(2)BadDebtProvisionWithdrawal,ReversedorRecoveredintheReportingPeriodWithdrawalofbaddebtprovision:
Unit:RMB
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |||
| Withdrawal | Reversedorrecovered | Verification | Others | |||
| Commercialacceptancebill | 0.00 | 0.00 | 0.00 | |||
| Total | 0.00 | 0.00 | 0.00 | |||
OfwhichsignificantamountofreversalorrecoverybaddebtprovisionintheReportingPeriod:
□Applicable?Notapplicable
(3)NotesReceivablewhichHadEndorsedbytheCompanyorHadDiscountedandHadnotDueontheBalanceSheetDateatthePeriod-end
Unit:RMB
| Item | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
| Bankacceptancebill | 57,867,417.94 | |
| Total | 57,867,417.94 |
4.AccountsReceivable
(1)ListedbyCategory
Unit:RMB
| Category | Endingbalance | Beginningbalance | ||||||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
| Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
| AccountsreceivablewithdrawalofBaddebtprovisionseparatelyaccrued | 2,855,563.31 | 0.49% | 2,855,563.31 | 100.00% | 5,137,500.44 | 0.71% | 5,137,500.44 | 100.00% | 0.00 | |
| Ofwhich: | ||||||||||
| Accountsreceivablewithdrawalofbaddebtprovisionofbygroup | 577,630,215.71 | 99.51% | 43,474,386.52 | 7.53% | 534,155,829.19 | 716,765,668.96 | 99.29% | 56,338,142.77 | 7.86% | 660,427,526.19 |
| Ofwhich: | ||||||||||
| Undueaccounts(creditinsuranceinsured) | 182,353,008.63 | 31.41% | 1,914,706.61 | 1.05% | 180,438,302.02 | 166,814,345.91 | 23.11% | 1,751,550.62 | 1.05% | 165,062,795.29 |
| Undueaccounts(nocreditinsurance) | 284,593,682.19 | 49.03% | 14,229,684.15 | 5.00% | 270,363,998.04 | 395,429,681.72 | 54.78% | 19,771,484.04 | 5.00% | 375,658,197.68 |
| Overdueaccounts(creditinsuranceinsured) | 42,993,075.36 | 7.41% | 6,749,912.83 | 15.70% | 36,243,162.53 | 73,996,751.59 | 10.25% | 11,617,489.99 | 15.70% | 62,379,261.60 |
| Overdueaccounts(nocreditinsurance) | 67,690,449.53 | 11.66% | 20,580,082.93 | 30.40% | 47,110,366.60 | 80,524,889.74 | 11.15% | 23,197,618.12 | 28.81% | 57,327,271.62 |
| Total | 580,485,779.02 | 100.00% | 46,329,949.83 | 7.98% | 534,155,829.19 | 721,903,169.40 | 100.00% | 61,475,643.21 | 8.52% | 660,427,526.19 |
Baddebtprovisionseparatelyaccrued:June2023
Unit:RMB
| Name | Endingbalance | |||
| Carryingamount | Baddebtprovision | Withdrawalproportion | Reasonforwithdraw | |
| Customer1 | 2,807,080.87 | 2,807,080.87 | 100.00% | Customer'sapplicationforbankruptcyprotection |
| Customer2 | 48,482.44 | 48,482.44 | 100.00% | Customerinfinancialdifficulty |
| Total | 2,855,563.31 | 2,855,563.31 | ||
Baddebtprovisionseparatelyaccrued:Y2022
Unit:RMB
| Name | Endingbalance |
| Carryingamount | Baddebtprovision | Withdrawalproportion | Reasonforwithdraw | |
| Customer1 | 2,705,609.83 | 2,705,609.83 | 100.00% | Customerfiledforbankruptcyprotection |
| Customer2 | 1,986,544.97 | 1,986,544.97 | 100.00% | Customerfinancialdifficulties |
| Customer3 | 281,353.47 | 281,353.47 | 100.00% | Customerfiledforbankruptcyprotection |
| Customer4 | 90,959.35 | 90,959.35 | 100.00% | Customerfinancialdifficulties |
| Customer5 | 73,032.82 | 73,032.82 | 100.00% | Customerfinancialdifficulties |
| Total | 5,137,500.44 | 5,137,500.44 |
Withdrawalofbaddebtprovisionbygroup:June2023
Unit:RMB
| Name | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion | |
| Group1:Undueaccounts(creditinsuranceinsured) | 182,353,008.63 | 1,914,706.61 | 1.05% |
| Group2:Undueaccounts(nocreditinsurance) | 284,593,682.19 | 14,229,684.15 | 5.00% |
| Group3:Overdueaccounts(creditinsuranceinsured) | 42,993,075.36 | 6,749,912.83 | 15.70% |
| Group4:Overdueaccounts(nocreditinsurance) | 67,690,449.53 | 20,580,082.93 | 30.40% |
| Total | 577,630,215.71 | 43,474,386.52 | |
Notes:
Baddebtprovisionwithdrawnbygroups:Y2022
Unit:RMB
| Name | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion | |
| Group1:Undueaccounts(creditinsuranceinsured) | 166,814,345.91 | 1,751,550.62 | 1.05% |
| Group2:Undueaccounts(nocreditinsurance) | 395,429,681.72 | 19,771,484.04 | 5.00% |
| Group3:Overdueaccounts(creditinsuranceinsured) | 73,996,751.59 | 11,617,489.99 | 15.70% |
| Group4:Overdueaccounts(nocreditinsurance) | 80,524,889.74 | 23,197,618.12 | 28.81% |
| Total | 716,765,668.96 | 56,338,142.77 | |
Notes:
Pleaserefertotherelevantinformationofdisclosureofbaddebtprovisionofotheraccountsreceivableifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivable.
□Applicable?NotapplicableDisclosurebyaging
Unit:RMB
| Aging | Endingbalance |
| Within1year(including1year) | 569,409,935.73 |
| 1to2years | 3,654,284.87 |
| 2to3years | 38,830.18 |
| Over3years | 7,382,728.24 |
| 3to4years | 6,307,156.76 |
| 4to5years | 765,372.56 |
| Over5years | 310,198.92 |
| Total | 580,485,779.02 |
(2)BadDebtProvisionWithdrawal,ReversedorRecoveredintheReportingPeriod
Withdrawalofbaddebtprovision:
Unit:RMB
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |||
| Withdrawal | Reversedorrecovered | Verification | Others | |||
| Baddebtprovisionseparatelyaccrued | 5,137,500.44 | -2,281,937.13 | 2,855,563.31 | |||
| Withdrawalofbaddebtprovisionbygroup | 56,338,142.77 | -12,677,803.47 | 185,952.78 | 43,474,386.52 | ||
| Total | 61,475,643.21 | -14,959,740.60 | 185,952.78 | 46,329,949.83 | ||
(3)AccountsReceivableWritten-offinCurrentPeriod
Unit:RMB
| Item | Written-offamount |
| Written-offaccountsreceivable | 185,952.78 |
(4)Top5oftheEndingBalanceoftheAccountsReceivableCollectedaccordingtoArrearsParty
Unit:RMB
| Nameoftheentity | Endingbalance | Proportiontototalendingbalanceofaccountsreceivable | Endingbalanceofbaddebtprovision |
| Aggregateamountoftop5ofaccountsreceivableofendingbalancecollectedbyarrearsparty | 109,253,305.36 | 18.82% | 8,336,603.06 |
| Total | 109,253,305.36 | 18.82% |
5.AccountsReceivableFinancing
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| NotesReceivable | 24,293,707.01 | 11,300,942.26 |
| Less:Othercomprehensiveincome-fairvaluechange | -197,321.06 | -92,637.48 |
| Total | 24,096,385.95 | 11,208,304.78 |
ChangesinaccountsreceivablefinancingandfairvalueintheReportingPeriod
□Applicable?NotapplicablePleaserefertotherelevantinformationofdisclosureofbaddebtprovisionofotheraccountsreceivableifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivablefinancing.
□Applicable?Notapplicable
6.Prepayment
(1)PrepaymentListedbyAgingAnalysis
Unit:RMB
| Aging | Endingbalance | Beginningbalance | ||
| Amount | Proportion | Amount | Proportion | |
| Within1year | 126,679,716.40 | 99.26% | 94,608,438.10 | 99.57% |
| 1to2years | 826,642.15 | 0.65% | 411,030.94 | 0.43% |
| 2to3years | 121,427.27 | 0.10% | 2,129.28 | 0.00% |
| Over3years | 0.00 | 0.00% | ||
| Total | 127,627,785.82 | 95,021,598.32 | ||
(2)Top5PrepaymentinEndingBalanceCollectedaccordingtothePrepaymentTarget
Thetotaltop5prepaymentinendingbalancecollectedaccordingtotheprepaymenttargetfortheCompanywasRMB66,505,029.66,accountingfor52.11%oftotalendingbalanceofprepayment.
7.OtherReceivables
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Dividendreceivable | 18,563,298.39 | 18,563,298.39 |
| Otherreceivables | 29,518,808.85 | 71,292,361.60 |
| Total | 48,082,107.24 | 89,855,659.99 |
(1)DividendReceivable
1)DividendReceivableClassification
Unit:RMB
| Project(orinvestee) | Endingbalance | Beginningbalance |
| FengshouCotton | 19,540,314.10 | 19,540,314.10 |
| Less:Baddebtprovision | -977,015.71 | -977,015.71 |
| Total | 18,563,298.39 | 18,563,298.39 |
2)SignificantDividendsReceivableAgingover1Year
Unit:RMB
| Project(orinvestee) | Endingbalance | Aging | Reason | Whetheroccurredimpairmentanditsjudgmentbasis |
| FengshouCotton | 19,540,314.10 | 2-3years | Collectinaccordancewithagreeddividendpaymentplan | Notpastdue |
| Total | 19,540,314.10 |
3)WithdrawalofBadDebtProvision
?Applicable□Notapplicable
Unit:RMB
| Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
| Expectedcreditlossinthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
| Balanceof1January2023 | 977,015.71 | 977,015.71 | ||
| Balanceof1January2023intheCurrentPeriod | ||||
| Balanceof30June2023 | 977,015.71 | 977,015.71 |
Changesofcarryingamountwithsignificantamountchangedoflossprovisioninthecurrentperiod
□Applicable?Notapplicable
(2)OtherReceivables
1)OtherReceivablesClassifiedbyNature
Unit:RMB
| Nature | Endingcarryingamount | Beginningcarryingamount |
| Exportrebates | 3,221,539.24 | 14,027,493.50 |
| VATtobereturned | 8,278,028.44 | 8,307,493.84 |
| Paymentonbehalf | 12,651,588.94 | 11,897,474.75 |
| Guaranteedepositandcashdeposit | 3,015,014.86 | 4,220,014.58 |
| Borrowingsandpettycash | 2,064,938.80 | 1,543,080.24 |
| Others | 3,397,510.13 | 36,256,599.70 |
| Total | 32,628,620.41 | 76,252,156.61 |
2)WithdrawalofBadDebtProvision
Unit:RMB
| Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
| Expectedcreditlossinthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
| Balanceof1January2023 | 3,681,740.03 | 1,278,054.98 | 4,959,795.01 | |
| Balanceof1January2023intheCurrentPeriod | ||||
| WithdrawaloftheCurrentPeriod | -2,218,958.32 | 368,974.87 | -1,849,983.45 | |
| Balanceof30June2023 | 1,462,781.71 | 1,647,029.85 | 0.00 | 3,109,811.56 |
Changesofcarryingamountwithsignificantamountchangedoflossprovisioninthecurrentperiod
□Applicable?NotapplicableDisclosurebyaging
Unit:RMB
| Aging | Endingbalance |
| Within1year(including1year) | 27,810,178.47 |
| 1to2years | 625,737.48 |
| 2to3years | 872,530.00 |
| Over3years | 3,320,174.46 |
| 3to4years | 765,952.27 |
| 4to5years | 76,463.18 |
| Over5years | 2,477,759.01 |
| Total | 32,628,620.41 |
3)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriod
Withdrawalofbaddebtprovision:
Unit:RMB
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |||
| Withdrawal | Reversedorrecovered | Verification | Others | |||
| Expectedcreditlossofthenext12monthsatthefirststage | 3,681,740.03 | -2,218,958.32 | 1,462,781.71 | |||
| Expectedlossintheduration(creditimpairmentnotoccurred)atthesecondstage | 1,278,054.98 | 368,974.87 | 1,647,029.85 | |||
| Expectedlossintheduration(creditimpairmentoccurred)atthethirdstage | 0.00 | |||||
| Total | 4,959,795.01 | -1,849,983.45 | 0.00 | 0.00 | 0.00 | 3,109,811.56 |
4)Top5OtherAccountsReceivableinEndingBalanceCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameoftheentity | Nature | Endingbalance | Aging | Proportiontototalendingbalanceofotherreceivables% | Endingbalanceofbaddebtprovision |
| Customer1 | InputVAT | 8,134,048.45 | Within1year | 24.93% | 406,702.42 |
| Customer2 | Advancepayments | 5,138,238.51 | Within1year | 15.75% | 256,911.93 |
| Customer3 | Exportrebates | 3,221,539.23 | Within1year | 9.87% | 161,076.96 |
| Customer4 | Advancepayments | 1,144,279.95 | Within1year | 3.51% | 57,214.00 |
| Customer5 | Advancepayments | 1,229,536.19 | Within1year | 3.77% | 61,476.81 |
| Total | 18,867,642.33 | 57.83% | 943,382.12 |
8.Inventory
WhethertheCompanyneedstocomplywiththedisclosurerequirementsfortherealestateindustryNo
(1)CategoryofInventory
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreservesofinventoriesorimpairmentprovisionforcontractperformancecosts | Carryingvalue | Carryingamount | Depreciationreservesofinventoriesorimpairmentprovisionforcontractperformancecosts | Carryingvalue | |
| Rawmaterials | 1,054,147,051.45 | 55,397,065.04 | 998,749,986.41 | 964,638,749.13 | 47,996,904.87 | 916,641,844.26 |
| Goodsinprocess | 529,340,419.70 | 15,058,185.71 | 514,282,233.99 | 502,282,021.10 | 12,926,711.64 | 489,355,309.46 |
| Inventorygoods | 885,867,404.34 | 193,427,654.40 | 692,439,749.94 | 869,338,282.54 | 181,010,948.47 | 688,327,334.07 |
| Assignedprocessingproducts | 17,371,088.14 | 17,371,088.14 | 13,525,220.54 | 13,525,220.54 | ||
| Total | 2,486,725,963.63 | 263,882,905.15 | 2,222,843,058.48 | 2,349,784,273.31 | 241,934,564.98 | 2,107,849,708.33 |
(2)FallingPriceReservesofInventoryandImpairmentReservesforContractPerformanceCosts
Unit:RMB
| Item | Beginningbalance | Increasedamountofthecurrentperiod | Decreasedamountforthecurrentperiod | Endingbalance | ||
| Withdrawal | Others | Transferred-backorcharged-off | Others | |||
| Rawmaterials | 47,996,904.87 | 8,300,734.32 | 628,508.02 | 1,529,082.17 | 55,397,065.04 | |
| Goodsinprocess | 12,926,711.64 | 9,932,665.69 | 0.00 | 7,801,191.62 | 15,058,185.71 | |
| Inventorygoods | 181,010,948.47 | 57,432,153.94 | 871,636.46 | 45,887,084.47 | 193,427,654.40 | |
| Total | 241,934,564.98 | 75,665,553.95 | 1,500,144.48 | 55,217,358.26 | 263,882,905.15 | |
9.OtherCurrentAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Othertax | 11,981,883.51 | 9,813,869.63 |
| Prepaidincometax | 3,660,072.09 | 14,983,737.42 |
| Prepaidothertaxes | 1,517.42 | 432,344.55 |
| Convertiblebrokenlotfund | 199,688.35 | 199,689.59 |
| Refundabledeposits | 101,734,649.86 | 51,418,261.88 |
| Total | 117,577,811.23 | 76,847,903.07 |
10.Long-termEquityInvestment
Unit:RMB
| Investee | Beginningbalance(carryingvalue) | Increase/decreaseforthecurrentperiod | EndingBalance(CarryingValue) | Endingbalanceofdepreciationreserve | |||||||
| Additionalinvestment | Reducedinvestment | Gainsandlossesrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Changesofotherequity | Cashbonusorprofitsannouncedtoissue | Withdrawalofimpairmentprovision | Others | ||||
| I.Jointventures | |||||||||||
| II.Associatedenterprises | |||||||||||
| NingboMeishanBondedPort | 60,547,749.28 | -351,268.49 | 60,196,480.79 | ||||||||
| AreaHaohongEquityInvestmentPartnership(L.P)(hereinafterreferredtoas“HaohongInvestment”) | ||||||
| NingboHaoyingEquityInvestmentPartnership(L.P)(hereinafterreferredtoas“HaoyingInvestment”) | 123,620,876.41 | -981,880.37 | 122,638,996.04 | |||
| Subtotal | 184,168,625.69 | 0.00 | -1,333,148.86 | 182,835,476.83 | ||
| Total | 184,168,625.69 | 0.00 | -1,333,148.86 | 182,835,476.83 |
11.OtherNon-currentFinancialAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Equityinstrumentinvestment | 77,080,000.00 | 325,110,000.00 |
| Financialassetsassignedmeasuredbyfairvalueandthechangesbeincludedinthecurrentgainsandlosses | 12,000,000.00 | 12,000,000.00 |
| Total | 89,080,000.00 | 337,110,000.00 |
12.InvestmentProperty
(1)InvestmentPropertyAdoptingtheCostMeasurementMode?Applicable□Notapplicable
Unit:RMB
| Item | Housesandbuildings | Landuseright | Constructioninprogress | Total |
| I.Originalcarryingvalue | ||||
| 1.Beginningbalance | 33,577,852.12 | 33,577,852.12 | ||
| 2.Increasedamountforthecurrentperiod | ||||
| (1)Outsourcing | ||||
| (2)Transferfrominventory/fixedassets/constructioninprogress | ||||
| (3)Businesscombinationincrease | ||||
| 3.Decreasedamountforthecurrentperiod | ||||
| (1)Disposal | ||||
| (2)Othertransfer | ||||
| 4.Endingbalance | 33,577,852.12 | 33,577,852.12 | ||
| II.Accumulativedepreciationandaccumulativeamortization | ||||
| 1.Beginningbalance | 13,116,916.91 | 13,116,916.91 | ||
| 2.Increasedamountforthecurrentperiod | 450,683.41 | 450,683.41 | ||
| (1)Withdrawaloramortization | 450,683.41 | 450,683.41 | ||
| 3.Decreasedamountforthecurrentperiod | ||||
| (1)Disposal | ||||
| (2)Othertransfer | ||||
| 4.Endingbalance | 13,567,600.32 | 13,567,600.32 | ||
| III.Depreciationreserves | ||||
| 1.Beginningbalance | ||||
| 2.Increasedamountforthecurrentperiod | ||||
| (1)Withdrawal | ||||
| 3.Decreasedamountforthecurrentperiod | ||||
| (1)Disposal | ||||
| (2)Othertransfer | ||||
| 4.Endingbalance | ||||
| IV.Carryingvalue |
| 1.Endingcarryingvalue | 20,010,251.80 | 20,010,251.80 | |
| 2.Beginningcarryingvalue | 20,460,935.21 | 20,460,935.21 |
(2)InvestmentPropertyAdoptingtheFairValueMeasurementMode
□Applicable?Notapplicable
13.FixedAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Fixedassets | 5,686,991,158.97 | 5,807,847,850.67 |
| Total | 5,686,991,158.97 | 5,807,847,850.67 |
(1)ListofFixedAssets
Unit:RMB
| Item | Housesandbuildings | Machineryequipment | Transportationequipment | Electronicequipmentandothers | Total |
| I.Originalcarryingvalue: | |||||
| 1.Beginningbalance | 3,652,101,893.21 | 7,427,223,782.49 | 53,341,156.82 | 133,738,892.88 | 11,266,405,725.40 |
| 2.Increasedamountforthecurrentperiod | 52,599,868.40 | 50,249,815.12 | 3,853,107.92 | 26,151,727.42 | 132,854,518.86 |
| (1)Purchase | 0.00 | 39,274,124.69 | 1,389,395.20 | 571,014.34 | 41,234,534.23 |
| (2)Transferfromconstructioninprogress | 8,072,170.65 | 6,897,469.12 | 0.00 | 14,969,639.77 | |
| (3)Businesscombinationincrease | 0.00 | ||||
| (4)Otherincrease | 44,527,697.75 | 4,078,221.31 | 2,463,712.72 | 25,580,713.08 | 76,650,344.86 |
| 3.Decreasedamountforthecurrentperiod | 0.00 | 23,965,219.50 | 64,957.26 | 1,423,445.95 | 25,453,622.71 |
| (1)Disposalorscrap | 0.00 | 15,624,873.76 | 64,957.26 | 1,423,445.95 | 17,113,276.97 |
| (2)Transferfromconstructioninprogress | 8,340,345.74 | 8,340,345.74 |
| (3)Otherdecrease | |||||
| 4.Endingbalance | 3,704,701,761.61 | 7,453,508,378.11 | 57,129,307.48 | 158,467,174.35 | 11,373,806,621.55 |
| II.Accumulativedepreciation | |||||
| 1.Beginningbalance | 1,217,812,756.74 | 4,048,548,925.66 | 39,994,380.21 | 114,073,387.92 | 5,420,429,450.53 |
| 2.Increasedamountforthecurrentperiod | 72,186,131.10 | 167,031,980.40 | 4,229,794.65 | 3,787,671.09 | 247,235,577.24 |
| (1)Withdrawal | 66,557,814.24 | 151,896,224.05 | 3,940,544.52 | 3,584,593.29 | 225,979,176.10 |
| (2)OtherIncreases | 5,628,316.86 | 15,135,756.35 | 289,250.13 | 203,077.80 | 21,256,401.14 |
| 3.Decreasedamountforthecurrentperiod | 0.00 | 14,677,834.08 | 58,461.53 | 1,342,123.48 | 16,078,419.09 |
| (1)Disposalorscrap | 0.00 | 11,572,660.17 | 58,461.53 | 1,342,123.48 | 12,973,245.18 |
| (2)Transferfromconstructioninprogress | 3,105,173.91 | 3,105,173.91 | |||
| (4)Otherdecrease | |||||
| 4.Endingbalance | 1,289,998,887.84 | 4,200,903,071.98 | 44,165,713.33 | 116,518,935.53 | 5,651,586,608.68 |
| III.Depreciationreserves | |||||
| 1.Beginningbalance | 429,416.16 | 37,631,204.93 | 5,671.30 | 62,131.81 | 38,128,424.20 |
| 2.Increasedamountforthecurrentperiod | |||||
| (1)Withdrawal |
3.Decreasedamountforthecurrentperiod
| 3.Decreasedamountforthecurrentperiod | 2,899,570.30 | 0.00 | 2,899,570.30 | ||
| (1)Disposalorscrap | 2,899,570.30 | 2,899,570.30 |
4.Endingbalance
| 4.Endingbalance | 429,416.16 | 34,731,634.63 | 5,671.30 | 62,131.81 | 35,228,853.90 |
| IV.Carryingvalue | |||||
| 1.Endingcarryingvalue | 2,414,273,457.61 | 3,217,873,671.50 | 12,957,922.85 | 41,886,107.01 | 5,686,991,158.97 |
| 2.Beginningcarryingvalue | 2,433,859,720.31 | 3,341,043,651.90 | 13,341,105.31 | 19,603,373.15 | 5,807,847,850.67 |
(2)FixedAssetsLeasedoutbyOperationLease
Unit:RMB
| Item | Endingcarryingamount |
| Housesandbuildings | 4,882,924.27 |
(3)FixedAssetsFailedtoAccomplishCertificationofProperty
Unit:RMB
| Item | Carryingvalue | Reason |
| Lufengweavingdyegrayyarnwarehouse | 10,186,234.68 | Undertherelevantcertificateproceduresofacceptance,measurement,examinationbytherealestatetradingcenterandotherdepartments |
| LulianNewMaterialsfabricinspectionworkshop | 83,527,790.14 | Thesameasabove |
| LulianNewMaterialsyarnwarehouse | 8,344,878.57 | Thesameasabove |
14.ConstructioninProgress
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Constructioninprogress | 377,550,919.39 | 162,197,188.04 |
| Engineeringmaterials | 161,053,061.49 | 37,746,313.69 |
| Total | 538,603,980.88 | 199,943,501.73 |
(1)ListofConstructioninProgress
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| ReformprojectofXinshengThermalPower | 16,078,622.35 | 16,078,622.35 | 18,548,362.41 | 18,548,362.41 | ||
| High-gradefabricproductlineproject(I) | 331,642,537.17 | 331,642,537.17 | 110,653,801.46 | 110,653,801.46 | ||
| Othersporadicprojects | 29,829,759.87 | 29,829,759.87 | 32,995,024.17 | 32,995,024.17 | ||
| Total | 377,550,919.39 | 377,550,919.39 | 162,197,188.04 | 162,197,188.04 | ||
(2)ChangesinSignificantConstructioninProgressduringtheReportingPeriod
Unit:RMB
| ProjectName | Budget | Beginningbalance | Increasedamountofthecurrentperiod | Transferredinfixedassets | Otherdecreasedamountforthecurrentperiod | Endingbalance | Proportionofaccumulatedinvestmentinconstructionstobudget | Jobschedule | Accumulatedamountofinterestcapitalization | Ofwhich:amountofcapitalizedinterestsfortheReportingPeriod | CapitalizationrateofinterestsfortheReportingPeriod | Capitalresources |
| ReformprojectofXinshengThermalPower | 30,000,000.00 | 18,548,362.41 | 4,079,396.96 | 6,549,137.02 | 16,078,622.35 | 80.00% | 90.00% | Other | ||||
| High-gradefabricproductlineproject(I) | 464,800,000.00 | 110,653,801.46 | 220,988,735.71 | 331,642,537.17 | 71.35% | 71.35% | 9,703,751.96 | 9,703,751.96 | 3.68% | Publicofferingfundandself-raisedfund | ||
| Othersporadicprojects | 32,995,024.17 | 5,255,238.45 | 8,420,502.75 | 29,829,759.87 | Other | |||||||
| Total | 494,800,000.00 | 162,197,188.04 | 230,323,371.12 | 14,969,639.77 | 0.00 | 377,550,919.39 | 9,703,751.96 | 9,703,751.96 |
(3)EngineeringMaterials
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Specialequipment | 161,053,061.49 | 161,053,061.49 | 37,746,313.69 | 37,746,313.69 | ||
| Total | 161,053,061.49 | 161,053,061.49 | 37,746,313.69 | 37,746,313.69 | ||
15.Right-of-useAssets
Unit:RMB
| Item | Housesandbuildings | Landuseright | Total |
| I.Originalcarryingvalue | |||
| 1.Beginningbalance | 74,496,696.93 | 445,512,889.01 | 520,009,585.94 |
| 2.Increasedamountforthecurrentperiod | 3,714,244.15 | 14,457,623.14 | 18,171,867.29 |
| (1)OtherIncrease | 3,714,244.15 | 14,457,623.14 | 18,171,867.29 |
| 3.Decreasedamountforthecurrentperiod | |||
| 4.Endingbalance | 78,210,941.08 | 459,970,512.15 | 538,181,453.23 |
| II.Accumulativedepreciation | |||
| 1.Beginningbalance | 22,293,617.24 | 16,295,463.39 | 38,589,080.63 |
| 2.Increasedamountforthecurrentperiod | 6,383,739.71 | 5,867,077.77 | 12,250,817.48 |
| (1)Withdrawal | 5,147,501.62 | 5,553,109.05 | 10,700,610.67 |
| (2)OtherIncreases | 1,236,238.09 | 313,968.72 | 1,550,206.81 |
| 3.Decreasedamountforthecurrentperiod | |||
| (1)Disposal | |||
| 4.Endingbalance | 28,677,356.95 | 22,162,541.16 | 50,839,898.11 |
| III.Depreciationreserves | |||
| 1.Beginningbalance | |||
| 2.Increasedamountforthecurrentperiod | |||
| (1)Withdrawal | |||
| 3.Decreasedamountforthecurrentperiod | |||
| (1)Disposal | |||
| 4.Endingbalance | |||
| IV.Carryingvalue | |||
| 1.Endingcarryingvalue | 49,533,584.13 | 437,807,970.99 | 487,341,555.12 |
| 2.Beginningcarryingvalue | 52,203,079.69 | 429,217,425.62 | 481,420,505.31 |
16.Intangibleassets
(1)Listofintangibleassets
Unit:RMB
| Item | Landuseright | Patentright | Non-patenttechnologies | Softwareuserights | Total |
| I.Originalcarryingvalue | |||||
| 1.Beginningbalance | 470,314,218.02 | 409,550.00 | 1,408,745.96 | 472,132,513.98 | |
| 2.Increasedamountforthecurrentperiod | 377,450.16 | 377,450.16 | |||
| (1)Purchase | 371,681.42 | 371,681.42 | |||
| (2)InternalR&D | |||||
| (3)Businesscombinationincrease | |||||
| (4)Otherincrease | 5,768.74 | 5,768.74 | |||
| 3.Decreasedamountforthecurrentperiod | 207,079.65 | 207,079.65 | |||
| (1)Disposal | 207,079.65 | 207,079.65 | |||
| 4.Endingbalance | 470,314,218.02 | 409,550.00 | 1,579,116.47 | 472,302,884.49 | |
| II.Accumulatedamortization | |||||
| 1.Beginningbalance | 118,257,329.99 | 71,671.98 | 913,933.95 | 119,242,935.92 | |
| 2.Increasedamountforthecurrentperiod | 5,273,783.82 | 20,476.86 | 257,228.08 | 5,551,488.76 | |
| (1)Withdrawal | 5,273,783.82 | 20,476.86 | 256,508.20 | 5,550,768.88 | |
| (4)OtherIncreases | 719.88 | 719.88 | |||
| 3.Decreasedamountforthecurrentperiod | 265,898.85 | 207,079.65 | 472,978.50 | ||
| (1)Disposal | 265,898.85 | 207,079.65 | 472,978.50 | ||
| 4.Endingbalance | 123,265,214.96 | 92,148.84 | 964,082.38 | 124,321,446.18 | |
| III.Depreciationreserves | |||||
| 1.Beginningbalance | |||||
| 2.Increasedamountforthecurrentperiod | |||||
| (1)Withdrawal | |||||
| 3.Decreasedamountforthecurrentperiod | |||||
| (1)Disposal | |||||
| 4.Endingbalance | |||||
| IV.Carryingvalue | |||||
| 1.Endingcarryingvalue | 347,049,003.06 | 317,401.16 | 615,034.09 | 347,981,438.31 | |
| 2.Beginningcarryingvalue | 352,056,888.03 | 337,878.02 | 494,812.01 | 352,889,578.06 |
TheproportionofintangibleassetsformedfromtheinternalR&DoftheCompanyatthePeriod-endtotheendingbalanceofintangibleassetswas0.00%.
17.Developmentcosts
Unit:RMB
| Item | Beginningbalance | Increasedamountofthecurrentperiod | Decreasedamountforthecurrentperiod | Endingbalance | ||||
| Internaldevelopmentcosts | Others | Recognizedasintangibleassets | Transferredintothecurrentprofitorloss | |||||
| R&Dofproducts | 131,290,032.04 | 131,290,032.04 | ||||||
| Total | 131,290,032.04 | 131,290,032.04 | ||||||
18.Goodwill
(1)OriginalCarryingValueofGoodwill
Unit:RMB
| Nameoftheinvestedunitsoreventsgeneratinggoodwill | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance | ||
| Formedbybusinesscombination | Disposal | |||||
| XinshengPower | 20,563,803.29 | 20,563,803.29 | ||||
| Total | 20,563,803.29 | 20,563,803.29 | ||||
19.Long-termPrepaidExpense
Unit:RMB
| Item | Beginningbalance | Increasedamountofthecurrentperiod | Amortizationamountofthecurrentperiod | Otherdecreasedamount | Endingbalance |
| Decorationfee | 2,869,384.57 | 587,479.50 | 2,281,905.07 | ||
| Technicalservicecharges | 79,597.40 | 17,688.30 | 61,909.10 | ||
| Total | 2,948,981.97 | 605,167.80 | 2,343,814.17 |
20.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities
(1)DeferredIncomeTaxAssetsHadNotBeenOff-set
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||
| Deductibletemporarydifferences | Deferredincometaxassets | Deductibletemporarydifferences | Deferredincometaxassets | |
| Provisionforimpairmentofassets | 277,685,760.46 | 38,500,375.54 | 255,841,124.12 | 38,889,866.26 |
| Internalunrealizedprofit | 86,662,593.50 | 12,083,037.05 | 131,224,111.61 | 17,495,580.49 |
| Deductiblelosses | 137,197,410.39 | 26,000,771.84 | 152,699,543.87 | 28,176,066.84 |
| Payrollpayable | 56,249,001.82 | 8,449,107.07 | 73,899,001.83 | 11,096,607.07 |
| Deferredincome | 152,710,698.64 | 23,806,448.32 | 159,284,848.68 | 24,863,045.77 |
| Contractliabilities | 83,530,009.89 | 20,882,502.45 | 81,088,515.08 | 20,272,128.77 |
| Changesinfairvalueofothernon-currentfinancialassets | 330,000.00 | 49,500.00 | 330,000.00 | 49,500.00 |
| Changesinfairvalueoftradingfinancialliabilities | 5,258,300.00 | 788,745.00 | ||
| Thechangesofaccountsreceivablefinancinginfairvalue | 197,321.06 | 29,598.16 | 92,637.48 | 13,895.62 |
| Operatingleases | 6,274,343.04 | 1,002,949.03 | 6,274,343.07 | 1,002,949.03 |
| Restrictedstockincentivefees | 53,367,269.88 | 8,005,090.48 | 53,367,269.88 | 8,005,090.48 |
| Convertiblecorporatebonds | 17,827,648.45 | 2,674,147.27 | 17,827,648.45 | 2,674,147.27 |
| Associatedenterprises | 21,922,239.51 | 3,288,335.93 | 21,570,971.02 | 3,235,645.65 |
| Total | 899,212,596.64 | 145,560,608.14 | 953,500,015.09 | 155,774,523.25 |
(2)DeferredIncomeTaxLiabilitiesHadNotBeenOff-set
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||
| Taxabletemporarydifference | Deferredincometaxliabilities | Taxabletemporarydifference | Deferredincometaxliabilities | |
| Depreciationoffixedassets | 658,195,369.06 | 105,285,717.34 | 643,426,505.04 | 101,589,274.02 |
| Changesinfairvalueoftradingfinancialassets | 220,307,574.56 | 33,046,136.19 | 23,985,450.00 | 3,597,817.50 |
| Changesinthefairvalueofothernon-currentfinancialassets | 20,127,400.00 | 3,019,110.00 | 268,073,567.06 | 40,211,035.06 |
| Associatedenterprises | 35,962,517.54 | 5,394,377.63 | 36,944,397.91 | 5,541,659.69 |
| Fundincome | 23,245,944.02 | 3,486,891.60 | 2,024,310.22 | 303,646.53 |
| Total | 957,838,805.18 | 150,232,232.76 | 974,454,230.23 | 151,243,432.80 |
(3)Deferredincometaxassetsorliabilitieshadbeenoff-setlistedinnetamount
Unit:RMB
| Item | Endingoff-setamountofdeferredincometaxassetsandliabilities | Endingbalanceofdeferredincometaxassetsandliabilities | Beginningoff-setamountofdeferredincometaxassetsandliabilities | Beginningbalanceofdeferredincometaxassetsandliabilities |
| Deferredincometaxassets | 145,560,608.14 | 155,774,523.25 |
| Deferredincometaxliabilities | 150,232,232.76 | 151,243,432.80 |
(4)Listofunrecognizeddeferredincometaxassets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Deductibletemporarydifference | 81,763,112.47 | 49,938,675.28 |
| Deductiblelosses | 231,228,211.52 | 170,560,094.42 |
| Total | 312,991,323.99 | 220,498,769.70 |
(5)Deductiblelossesofunrecognizeddeferredincometaxassetswilldueinthefollowingyears
Unit:RMB
| Years | Endingamount | Beginningamount | Note |
| Y2023 | |||
| Y2024 | 646.08 | 646.08 | |
| Y2025 | 52,127.16 | 52,127.16 | |
| Y2026 | 71,952,021.26 | 71,952,021.26 | |
| Y2027 | 98,555,299.92 | 98,555,299.92 | |
| Y2028 | 60,668,117.10 | ||
| Total | 231,228,211.52 | 170,560,094.42 |
21.OtherNon-currentAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Prepaymentforequipment | 175,390,097.49 | 175,390,097.49 | 80,902,453.33 | 80,902,453.33 | ||
| Termdepositsover1year | 135,000,000.00 | 135,000,000.00 | 151,000,000.00 | 151,000,000.00 | ||
| Interestreceivablefromtermdepositsover1year | 299,236.11 | 299,236.11 | 10,637,013.55 | 10,637,013.55 | ||
| Total | 310,689,333.60 | 310,689,333.60 | 242,539,466.88 | 242,539,466.88 | ||
22.Short-termBorrowings
(1)CategoryofShort-termBorrowings
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Creditloan | 527,384,198.32 | 518,946,415.96 |
| Total | 527,384,198.32 | 518,946,415.96 |
Notesofthecategoryforshort-termloans:
Theshort-termborrowingincludesinterestpayableofRMB421,939.05.
23.Tradingfinancialliabilities
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Tradingfinancialliabilities | 14,848,448.10 | 4,276,929.70 |
| Ofwhich: | ||
| Derivativefinancialliabilities | 14,848,448.10 | 4,276,929.70 |
| Ofwhich: | ||
| Total | 14,848,448.10 | 4,276,929.70 |
24.Notespayable
Unit:RMB
| Category | Endingbalance | Beginningbalance |
| Bankacceptancebill | 55,450,000.00 | |
| Total | 55,450,000.00 |
ThetotalamountofnotespayableduebutunpaidwasRMB0.00.
25.AccountsPayable
(1)Listofaccountspayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Paymentforgoods | 131,163,917.73 | 112,354,158.59 |
| Engineeringequipment | 87,382,830.12 | 91,747,417.03 |
| Others | 41,763,649.50 | 42,486,888.12 |
| Total | 260,310,397.35 | 246,588,463.74 |
26.ContractLiabilities
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Advancefromsales | 191,626,217.13 | 221,918,730.24 |
| Less:contractliabilityrecordedinothercurrentliabilities | -8,170,976.59 | -15,039,057.71 |
| Total | 183,455,240.54 | 206,879,672.53 |
27.PayrollPayable
(1)Listofpayrollpayable
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance |
| I.Short-termsalary | 329,320,005.76 | 598,092,985.75 | 679,451,558.37 | 247,961,433.14 |
| II.Post-employmentbenefit-definedcontributionplans | 707,153.96 | 73,520,413.75 | 74,088,231.07 | 139,336.64 |
| III.Terminationbenefits | 832,782.28 | 832,782.28 | 0.00 | |
| Total | 330,027,159.72 | 672,446,181.78 | 754,372,571.72 | 248,100,769.78 |
(2)ListofShort-termSalary
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance |
| 1.Salary,bonus,allowance,subsidy | 264,765,901.82 | 526,347,917.28 | 610,947,255.76 | 180,166,563.34 |
| 2.Employeewelfare | 17,866,827.97 | 17,866,827.97 | 0.00 | |
| 3.Socialinsurance | 35,064.83 | 37,474,492.21 | 37,460,418.57 | 49,138.47 |
| Ofwhich:Medicalinsurancepremiums | 17,115.51 | 33,671,087.41 | 33,646,335.61 | 41,867.31 |
| Work-relatedinjuryinsurancepremiums | 6,185.58 | 3,790,287.71 | 3,789,728.58 | 6,744.71 |
| Maternityinsurance | 11,763.74 | 13,117.09 | 24,354.38 | 526.45 |
| 4.Housingfund | 6,986,392.10 | 6,986,392.10 | ||
| 5.Laborunionbudgetandemployeeeducationbudget | 64,519,039.11 | 9,417,356.19 | 6,190,663.97 | 67,745,731.33 |
| Total | 329,320,005.76 | 598,092,985.75 | 679,451,558.37 | 247,961,433.14 |
(3)Listofdefinedcontributionplans
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance |
| 1.Basicpensioninsurance | 444,238.10 | 70,614,664.50 | 70,927,274.36 | 131,628.24 |
| 2.Unemploymentinsurancepremiums | 262,915.86 | 2,905,749.25 | 3,160,956.71 | 7,708.40 |
| Total | 707,153.96 | 73,520,413.75 | 74,088,231.07 | 139,336.64 |
Othernotes:
TheCompany,inlinewiththerequirement,participatesinendowmentinsurance,unemploymentinsuranceplans,andsoon.Undertheseplans,theCompanymakesmonthlycontributionstotheseplansat16%and0.7%ofthesocialsecuritycontributionbase,respectively.NofurtherpaymentobligationswillbeincurredbytheCompanybeyondtheabovemonthlycontributionfees.Therelevantexpenseoccurredwasrecordedintocurrentprofitsandlossesorrelatedassetcosts.
28.TaxesPayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| VAT | 7,385,708.58 | 8,191,703.94 |
| Enterpriseincometax | 10,491,445.36 | 7,853,201.82 |
| Personalincometax | 2,580,485.54 | 1,070,729.43 |
| Urbanmaintenanceandconstructiontax | 1,797,820.16 | 3,625,674.57 |
| Stampduty | 879,149.92 | 760,689.83 |
| Realestatetax | 5,169,486.75 | 5,023,343.97 |
| Landusetax | 3,818,481.25 | 1,980,295.59 |
| Educationalfee | 600,226.10 | 1,602,333.55 |
| Localeducationsurcharge | 536,174.30 | 1,068,222.36 |
| Taxonnaturalresources | 531,085.39 | 99,406.00 |
| Environmentalprotectiontax | 239,812.58 | 207,841.00 |
| Total | 34,029,875.93 | 31,483,442.06 |
29.OtherPayables
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Dividendspayable | 441,113.64 | 441,113.64 |
| Otherpayables | 53,148,114.08 | 82,916,183.07 |
| Total | 53,589,227.72 | 83,357,296.71 |
(1)Dividendspayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Dividendspayabletoindividualshareholders | 441,113.64 | 441,113.64 |
| Total | 441,113.64 | 441,113.64 |
(2)OtherPayables
1)Otherpayableslistedbynature
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Depositsandcashdepositsetc. | 5,050,613.85 | 4,246,108.66 |
| Collectingpaymentonbehalfofothers | 4,707,395.36 | |
| Restrictedstockrepurchaseobligations | 31,556,265.00 | 65,286,630.00 |
| Others | 11,833,839.87 | 13,383,444.41 |
| Total | 53,148,114.08 | 82,916,183.07 |
30.CurrentPortionofNon-currentLiabilities
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Long-termborrowingsmaturedwithin1year | 483,930,000.00 | 300,800,000.00 |
| Leaseobligationmaturedwithin1year | 3,480,386.14 | 7,121,837.35 |
| Total | 487,410,386.14 | 307,921,837.35 |
31.Othercurrentliabilities
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Taxtobechargedoff | 8,170,976.59 | 15,039,057.71 |
| Endorsedunduebillundernon-derecognition | 45,095,251.10 | 51,849,967.46 |
| Total | 53,266,227.69 | 66,889,025.17 |
32.Long-termBorrowings
(1)Categoryoflong-termborrowings
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Creditloan | 648,299,828.94 | 487,231,096.24 |
| Less:currentportionoflong-termborrowings | -483,930,000.00 | -300,800,000.00 |
| Total | 164,369,828.94 | 186,431,096.24 |
Notetothecategoryoflong-termborrowings:
Thelong-termborrowingincludesinterestpayableofRMB504,231.04.Othernotes,includinginterestraterange:
| Item | Endingbalance | Interestraterange(%) | Beginningbalance | Interestraterange(%) |
| Creditloan | 648,299,828.94 | 2.6-3.5 | 487,231,096.24 | 3.06-3.65 |
33.BondsPayable
(1)Bondspayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Convertiblecorporatebonds | 1,449,985,859.18 | 1,438,162,231.27 |
| Total | 1,449,985,859.18 | 1,438,162,231.27 |
(2)Changesofbondspayable(excludingotherfinancialinstrumentsdividedasfinancialliabilitiessuchaspreferredsharesandperpetualbonds)
Unit:RMB
| Name | Parvalue | Issuedate | Bondduration | Issueamount | Beginningbalance | IssuedintheReportingPeriod | Interestaccruedatparvalue | Amortizationofpremiumanddepreciation | RepaidintheReportingPeriod | Currentsharesconverted | Endingbalance |
| LuThaiConvertibleBond127016 | 1,400,000,000.00 | 9April2020 | 6 | 1,400,000,000.00 | 1,438,162,231.27 | 0.00 | 8,519,720.60 | 17,303,424.24 | 13,998,516.93 | 1,000.00 | 1,449,985,859.18 |
| Total | 1,400,000,000.00 | 1,438,162,231.27 | 0.00 | 8,519,720.60 | 17,303,424.24 | 13,998,516.93 | 1,000.00 | 1,449,985,859.18 |
(3)Notestotheconditionsandtimeofthesharestransferoftheconvertiblecorporatebonds
AccordingtotheApprovalofthePublicIssueofConvertibleCorporateBondsofLuThaiTextileCo.,Ltd.(ZH.J.X.K[2020]No.
299)oftheChinaSecuritiesRegulatoryCommission,theCompanyissued14millionconvertiblebondswithafacevalueofRMB100eachforatotalissueamountofRMB1.4billionwithamaturityof6years,i.e.from9April2020to8April2026.ThecouponratesoftheconvertiblebondsissuedbytheCompanyare0.3%,0.6%,1%,1.5%,1.8%and2%inthefollowingorderfromthefirststagetothesixthstage,withinterestpayableannually.Theconversionperiodshallcommencefrom(andinclude)
thefirsttradingdayon15October2020,sixmonthsafterthedateofissue,andshallendon(andinclude)thetradingdaypriortothematuritydateoftheconvertiblebonds(8April2026).Holdersmayapplyforconversionduringtheconversionperiod.TheinitialconversionpriceofconvertiblecorporatebondswasRMB9.01persharewhenitwasissuedbutwasadjustedtoRMB8.91persharesinceJuly9,2020,aftertheCompanyimplementedthe2019profitsharingagreementonJuly8,2020.AftertheCompanyimplementedtherestrictedstockincentiveplanin2021,thepricewasadjustedtoRMB8.76pershareaccordinglysinceJune7,2021.Upontheimplementationofthe2020profitsharingagreementbytheCompanyonJune18,2021,itwasadjustedtoRMB8.71pershareaccordinglyagainsinceJune18,2021.Upontheimplementationofthe2021profitsharingagreementbytheCompanyonJune23,2022,itwasadjustedtoRMB8.61pershareaccordinglyagainsinceJune23,2022.TheCompanycompletedtheformalitiesforcancellationofthe23,935,748repurchasedBshareson25May2023,andtheconversionpriceoftheconvertiblebondwasadjustedtoRMB8.73pershareon26May2023.Upontheimplementationofthe2022ProfitDistributionPlanbytheCompanyon16June2023,theconversionpriceoftheconvertiblebondwasadjustedtoRMB8.63pershareaccordinglyon16June2023.
34.Leaseobligation
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Leasepayments | 133,197,067.77 | 139,634,635.96 |
| Unrecognizedfinancingcosts | -31,975,721.98 | -34,011,494.78 |
| Less:Currentportionofleaseliabilities | -3,480,386.14 | -7,121,837.35 |
| Total | 97,740,959.65 | 98,501,303.83 |
OthernotesTheamountofinterestexpenseonleaseliabilitiesaccruedinH12023wasRMB2,315,000.27,whichwasincludedinfinancialcosts-interestexpense.
35.Long-termPayrollPayable
(1)Listoflong-termpayrollpayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| III.Otherlong-termwelfare | 57,417,997.65 | 57,417,997.65 |
| Total | 57,417,997.65 | 57,417,997.65 |
36.DeferredIncome
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance | Reasonforformation |
| Governmentgrants | 159,615,037.36 | 14,190,000.00 | 20,764,150.04 | 153,040,887.32 | Governmentgrants |
| Total | 159,615,037.36 | 14,190,000.00 | 20,764,150.04 | 153,040,887.32 |
37.ShareCapital
Unit:RMB
| Beginningbalance | Increase/decrease(+/-) | Endingbalance | |||||
| Newsharesissued | Bonusshares | Sharesconvertedfromcapitalreserve | Others | Subtotal | |||
| Totalshares | 887,633,151.00 | -23,935,632.00 | -23,935,632.00 | 863,697,519.00 | |||
Othernotes:
(1)TheCompanyheldthe2ndMeetingofthe10thBoardofDirectorson29June2022andthe3rdExtraordinaryGeneralMeetingof2022on15July2022,reviewingandapprovingtheProposalonRepurchaseoftheCompany’sDomesticallyListedForeignShares(BShare).TheCompanyrepurchased23,935,748BsharesintotalthroughcallauctionviaitssecuritiesaccountforrepurchaseandcompletedtheformalitiesforcancellationoftheforegoingrepurchasedsharesattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimitedon25May2023.
(2)Atotalof116sharesofconvertiblebondsoftheCompanycanbeconvertedintheReportingPeriod.ThischangeinsharecapitalhasbeenauditedbyZhitongAccountingFirm(SpecialGeneralPartnership)andthecapitalverificationreportZTYZ(2023)No.371C000235wasissuedon18May2023.
38.OtherEquityInstruments
(1)Changesofoutstandingfinancialinstrumentssuchaspreferredsharesandperpetualbondsattheperiod-end
Unit:RMB
| Outstandingfinancialinstruments | Period-beginning | Increase | Decrease | Period-end | ||||
| Number | Carryingvalue | Number | Carryingvalue | Number | Carryingvalue | Number | Carryingvalue | |
| Convertibledebttoequity | 71,383,830.75 | 50.99 | 71,383,779.76 | |||||
| Total | 71,383,830.75 | 50.99 | 71,383,779.76 | |||||
Adescriptionoftheincreaseordecreaseinotherequityinstrumentsforthecurrentperiodandreasonsthereof,andbasisforcorrespondingaccountingtreatment:
Thedecreaseinotherequityinstrumentsfortheperiodisduetotheconvertibledebt-for-equityswap.
39.CapitalReserves
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance |
| Capitalpremium(premiumonstock) | 294,877,268.02 | 30,336,158.91 | 75,863,250.13 | 249,350,176.80 |
| Othercapitalreserves | 100,994,867.69 | 11,076,415.02 | 30,335,235.00 | 81,736,047.71 |
| Total | 395,872,135.71 | 41,412,573.93 | 106,198,485.13 | 331,086,224.51 |
Othernotes,includingadescriptionoftheincreaseordecreaseforthecurrentperiodandthereasonsforthechange:
(1)Thecapitalreserves—capitalpremiumarisingfromtherepurchaseofBsharesdecreasedbyRMB75,863,250.13.
(2)Thecapitalreserve-othercapitalreserveincreasedbyRMB11,010,319.17duringtheReportingPeriod,arisingfromtherestrictedshareincentivefees.TheportionofrestrictedsharesofRMB30,335,235.00duetobeunlockedwastransferredfromthecapitalreserve-othercapitalreservetothecapitalreserve-capitalpremium.
(3)Thecapitalreserves—capitalpremiumarisingfromtheconversionofconvertiblebondsincreasedbyRMB923.91intheReportingPeriod.
40.Treasurystocks
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance |
| Restrictedstockrepurchase | 65,286,630.00 | 33,443,265.00 | 31,843,365.00 | |
| Bsharesrepurchase | 89,109,568.73 | 10,689,429.40 | 99,798,998.13 | 0.00 |
| Total | 154,396,198.73 | 10,689,429.40 | 133,242,263.13 | 31,843,365.00 |
41.Othercomprehensiveincome
Unit:RMB
| Item | Beginningbalance | Amountofthecurrentperiod | Endingbalance | |||||
| Amountbeforedeductingincometaxforthecurrentperiod | Less:recordedinothercomprehensiveincomeinpriorperiodandtransferredinprofitorlossintheCurrentPeriod | Less:recordedinothercomprehensiveincomeinpriorperiodandtransferredinretainedearningsintheCurrentPeriod | Less:Incometaxexpense | AttributabletotheCompanyastheparentaftertax | Attributableminorityshareholdersaftertax | |||
| II.Othercomprehensiveincomethatmaysubsequentlybereclassifiedtoprofitorloss | 107,628,898.09 | 70,856,577.34 | -15,702.54 | 70,872,279.88 | 178,501,177.97 | |||
| Differencesarisingfrom | 107,695,495.07 | 70,961,260.92 | 70,961,260.92 | 178,656,755.99 | ||||
| translationofforeigncurrency-denominatedfinancialstatements | |||||||
| Thechangesofaccountsreceivablefinancinginfairvalue | -66,596.98 | -104,683.58 | -15,702.54 | -88,981.04 | -155,578.02 | ||
| Totalofothercomprehensiveincome | 107,628,898.09 | 70,856,577.34 | -15,702.54 | 70,872,279.88 | 178,501,177.97 |
42.SpecialReserve
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance |
| Safetyproductioncosts | 5,275,200.00 | 2,497,789.29 | 2,777,410.71 | |
| Total | 5,275,200.00 | 2,497,789.29 | 2,777,410.71 |
43.Surplusreserves
Unit:RMB
| Item | Beginningbalance | Increaseforthecurrentperiod | Decreaseforthecurrentperiod | Endingbalance |
| Statutorysurplusreserves | 1,211,782,763.96 | 1,211,782,763.96 | ||
| Discretionalsurplusreserves | 3,341,572.58 | 3,341,572.58 | ||
| Total | 1,215,124,336.54 | 1,215,124,336.54 |
44.RetainedEarnings
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Beginningbalanceofretainedprofitsbeforeadjustments | 6,490,910,719.35 | 5,589,201,772.37 |
| Beginningbalanceofretainedprofitsafteradjustments | 6,490,910,719.35 | 5,589,201,772.37 |
| Add:NetprofitattributabletoownersoftheCompanyastheparent | 221,647,998.15 | 393,950,852.46 |
| Dividendsofcommonsharespayable | 86,360,751.90 | 62,155,872.45 |
| Endingretainedprofits | 6,626,197,965.60 | 5,920,996,752.38 |
Listofadjustmentofbeginningretainedprofits:
1)RMB0.00beginningretainedprofitswasaffectedbyretrospectiveadjustmentconductedaccordingtotheAccountingStandardsforBusinessEnterprisesandrelevantnewregulations.
2)RMB0.00beginningretainedprofitswasaffectedbychangesinaccountingpolicies.
3)RMB0.00beginningretainedprofitswasaffectedbycorrectionofsignificantaccountingerrors.
4)RMB0.00beginningretainedprofitswasaffectedbychangesincombinationscopearisingfromsamecontrol.
5)RMB0.00beginningretainedprofitswasaffectedtotallybyotheradjustments.
45.Operatingrevenueandcostofsales
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| Mainoperations | 2,755,370,258.68 | 2,166,155,297.68 | 3,192,795,600.27 | 2,393,341,282.26 |
| Otheroperations | 85,121,003.79 | 67,777,069.99 | 137,498,862.98 | 103,991,759.33 |
| Total | 2,840,491,262.47 | 2,233,932,367.67 | 3,330,294,463.25 | 2,497,333,041.59 |
Informationaboutperformanceobligations:NoneInformationinrelationtothetransactionpriceapportionedtotheresidualcontractperformanceobligation:
AsattheendoftheReportingPeriod,therevenueamountcorrespondingtothecontractperformanceobligationyettobefulfilledoryettobecompletedunderasignedcontractisRMB0.00,includingRMB0.00expectedtoberecognizedasrevenuein0,RMB
0.00expectedtoberecognizedasrevenuein0,andRMB0.00expectedtoberecognizedasrevenuein0.
46.Taxesandsurtaxes
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Urbanmaintenanceandconstructiontax | 7,809,806.48 | 9,776,946.60 |
| Educationalfee | 3,269,199.52 | 4,171,872.08 |
| Taxonnaturalresources | 461,899.63 | 269,306.00 |
| Realestatetax | 10,749,586.45 | 10,096,302.07 |
| Landusetax | 7,639,050.17 | 5,119,280.86 |
| Vehicleandvesselusagetax | 47,802.52 | 48,152.44 |
| Stampduty | 1,545,453.42 | 1,777,082.23 |
| Localeducationsurcharge | 2,364,499.69 | 2,781,248.07 |
| Environmentalprotectiontax | 473,062.48 | 461,067.66 |
| Total | 34,360,360.36 | 34,501,258.01 |
Othernotes:
PleaserefertoNoteVI.Taxesfordetailsofvarioustaxesandadditionalstandardsforcalculationandpayment.
47.Sellingexpense
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Salary | 33,546,461.28 | 34,521,119.07 |
| Marketingexpense | 16,171,875.20 | 15,812,366.09 |
| Travelexpense | 3,906,192.17 | 411,115.04 |
| Depreciationcharge | 3,510,556.38 | 3,352,693.87 |
| Officeoperatingfee | 7,315,422.95 | 4,126,339.40 |
| Others | 1,960,739.32 | 1,670,717.57 |
| Total | 66,411,247.30 | 59,894,351.04 |
48.Administrativeexpense
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Salary | 80,911,708.29 | 93,534,860.68 |
| Depreciationcharge | 19,438,392.08 | 18,872,138.30 |
| Warehousefunding | 18,862,735.72 | 19,455,536.27 |
| Labor-unionexpenditure | 5,566,260.80 | 6,143,835.05 |
| Employeeeducationbudget | 3,894,091.42 | 4,312,539.39 |
| Amortizationofintangibleassets | 5,795,577.62 | 5,805,244.20 |
| Carriagecharges | 3,694,751.74 | 3,275,956.40 |
| Others | 37,144,843.72 | 38,880,033.28 |
| Total | 175,308,361.39 | 190,280,143.57 |
49.R&Dexpense
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Laborcost | 74,856,472.66 | 66,198,913.29 |
| Materialexpense | 36,990,187.47 | 31,344,635.57 |
| Depreciationcharge | 8,755,526.54 | 9,209,535.98 |
| Other | 10,687,845.37 | 8,198,157.03 |
| Total | 131,290,032.04 | 114,951,241.87 |
50.Financialcosts
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Interestexpense | 49,206,191.44 | 55,026,837.64 |
| Less:Capitalizedinterestexpense | 9,703,751.96 | 10,810,250.47 |
| Interestincome | 30,385,764.22 | 28,264,778.38 |
| Add:Capitalizedinterestincome | 5,914,630.48 | |
| Foreignexchangegainsorlosses | -70,727,318.86 | -98,749,158.07 |
| Less:Capitalizedforeignexchangegainsorlosses | ||
| Others | 4,603,167.24 | 4,949,236.76 |
| Total | -57,007,476.34 | -71,933,482.03 |
51.Otherincome
Unit:RMB
| Sources | Reportingperiod | Sameperiodoflastyear |
| Governmentgrants | 6,960,772.36 | 2,101,748.17 |
| Transferofdeferredincome | 20,764,150.04 | 25,619,024.20 |
| Total | 27,724,922.40 | 27,720,772.37 |
52.Investmentincome
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Long-termequityinvestmentincomeaccountedbyequitymethod | -1,333,148.86 | -1,076,939.49 |
| Investmentincomefromdisposaloftradingfinancialassets | 48,131,810.86 | 2,525,510.87 |
| Total | 46,798,662.00 | 1,448,571.38 |
53.Gainonchangesinfairvalue
Unit:RMB
| Sources | Reportingperiod | Sameperiodoflastyear |
| Tradingfinancialassets | -31,900,187.41 | 6,691,520.36 |
| Ofwhich:Incomefromchangesinfairvaluegeneratedbyderivativefinancialinstruments | -10,603,652.37 | 685,949.57 |
| Tradingfinancialliabilities | -10,571,518.40 | -3,622,489.80 |
| Total | -42,471,705.81 | 3,069,030.56 |
54.Creditimpairmentloss
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Baddebtlossofotherreceivables | 1,849,983.45 | -907,638.23 |
| Baddebtlossofnotesreceivable | 0.00 | 6,394.34 |
| Baddebtlossofaccountsreceivable | 14,959,740.60 | 1,397,801.18 |
| Baddebtlossofdividendsreceivable | 0.00 | 1,498,035.64 |
| Total | 16,809,724.05 | 1,994,592.93 |
55.Assetimpairmentloss
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| II.Inventoryfallingpricelossandimpairmentprovisionforcontractperformancecosts | -75,665,553.95 | -79,469,872.91 |
| V.Impairmentlossonfixedassets | -2,225,865.39 | |
| Total | -75,665,553.95 | -81,695,738.30 |
56.Assetdisposalincome
Unit:RMB
| Sources | Reportingperiod | Sameperiodoflastyear |
| Fixedassetdisposalincome("-"forloss) | -404,759.16 | 2,668,023.30 |
| Intangibleassetdisposalincome("-"forloss) | ||
| Total | -404,759.16 | 2,668,023.30 |
57.Non-operatingincome
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
| Claimincome | 2,140,794.59 | 2,413,323.36 | |
| Other | 2,090,456.30 | 612,930.10 | |
| Total | 4,231,250.89 | 3,026,253.46 |
58.Non-operatingexpense
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
| Donations | 438,626.02 | 1,067,708.86 |
| Other | 2,025,734.51 | 1,097,430.80 |
| Total | 2,464,360.53 | 2,165,139.66 |
59.Incometaxexpense
(1)Listofincometaxexpense
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Currentincometaxexpense | 10,575,366.34 | 70,344,008.61 |
| Deferredincometaxexpense | 10,416,049.17 | -2,576,432.11 |
| Total | 20,991,415.51 | 67,767,576.50 |
(2)Adjustmentprocessofaccountingprofitandincometaxexpense
Unit:RMB
| Item | Reportingperiod |
| Profitbeforetaxation | 230,754,549.94 |
| Currentincometaxexpenseaccountedatstatutory/applicabletaxrate | 34,613,182.49 |
| Influenceofapplyingdifferenttaxratesbysubsidiaries | -11,549,295.44 |
| Influenceofincometaxbeforeadjustment | -1,312,665.55 |
| Influenceofnon-taxableincome | 0.00 |
| Influenceofnotdeductablecosts,expensesandlosses | 77,929.18 |
| Influenceofutilizingdeductablelossesofunrecognizeddeferredincometaxassetsfromprioryears | 0.00 |
| Effectofdeductibletemporarydifferencesordeductiblelossesondeferredincometaxassetsnotrecognizedintheperiod | 15,167,029.28 |
| InfluenceofadditionaldeductionofR&Dexpenses(filledinwith"-") | -12,441,424.78 |
| Influenceofotherexpensededuction(filledinwith"-") | -3,563,339.67 |
| Incometaxexpense | 20,991,415.51 |
60.Othercomprehensiveincome
RefertoNoteVII-41fordetails.
61.Cashflowstatement
(1)Cashgeneratedfromotheroperatingactivities
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Governmentsubsidy | 21,278,038.60 | 1,980,644.87 |
| Claimincome | 1,680,611.12 | 1,683,147.72 |
| Recoveryofemployeeborrowings,pettycashanddeposit | 5,065,850.80 | 7,337,923.73 |
| Collectionforemployees | 1,913,782.89 | 5,216,485.83 |
| Other | 38,176,145.58 | 1,031,855.69 |
| Total | 68,114,428.99 | 17,250,057.84 |
(2)Cashusedinotheroperatingactivities
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Businesstravelcharges | 24,090,673.70 | 24,176,311.80 |
| Insurance | 2,214,458.96 | 2,535,111.86 |
| Servicefees | 3,463,173.10 | 7,492,345.81 |
| Decoration&repairexpenses | 1,205,617.14 | 1,853,995.94 |
| Donation | 954,843.00 | 1,005,693.17 |
| Pre-payment | 30,558.79 | 4,599,753.95 |
| Paymentofemployeeborrowings,pettycashanddeposit | 5,533,763.00 | 4,351,232.81 |
| Others | 29,886,632.19 | 23,880,290.25 |
| Total | 67,379,719.88 | 69,894,735.59 |
(3)Cashgeneratedfromotherinvestingactivities
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Interestincome | 21,207,422.84 | 20,657,090.40 |
| Incomefromforwardforeignexchangeandoptions | 16,005,350.00 | 2,525,510.87 |
| Incomefromholdingoftradingfinancialassets | ||
| Returnofguarantees | 805,891.25 | 1,100,000.00 |
| Returnoftermdeposits | 23,179,142.80 | 8,325,816.11 |
| Total | 61,197,806.89 | 32,608,417.38 |
(4)Cashusedinotherinvestingactivities
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Termdeposit | 2,506,369.87 | 172,545,016.96 |
| Paymargin | 1,387,667.04 | 1,323,689.98 |
| Total | 3,894,036.91 | 173,868,706.94 |
(5)Cashusedinotherfinancingactivities
Unit:RMB
| Item | Reportingperiod | Sameperiodoflastyear |
| Paymentofright-of-useassets | 9,505,516.17 | 9,179,573.11 |
| Paymentofcashdepositsforprofitdistribution | 9,039,411.18 | |
| Total | 9,505,516.17 | 18,218,984.29 |
62.Supplementalinformationforcashflowstatement
(1)Supplementalinformationforcashflowstatement
Unit:RMB
| Supplementalinformation | Amountduringthecurrentperiod | Sameperiodoflastyear |
| 1.Reconciliationofnetprofittonetcashflowsgeneratedfromoperatingactivities | ||
| NetProfit | 209,763,134.43 | 393,566,698.74 |
| Add:Provisionforimpairmentofassets | 58,855,829.90 | 79,701,145.37 |
| Depreciationoffixedassets,oil-gasassets,andproductivebiologicalassets | 247,686,260.65 | 224,384,809.38 |
| Depreciationofright-of-useassets | 12,250,817.48 | 8,988,103.95 |
| Amortizationofintangibleassets | 5,551,488.76 | 5,502,457.48 |
| Amortizationoflong-termprepaidexpenses | 605,167.80 | 490,056.67 |
| Lossesfromdisposaloffixedassets,intangibleassetsandotherlong-livedassets(gains:negative) | -404,759.16 | -3,069,030.56 |
| Lossesfromscrapoffixedassets(gains:negative) | -28,052.73 | |
| Lossesfromchangesinfairvalue(gainsrepresentedby"-") | 42,471,705.81 | -6,691,520.36 |
| Financecosts(gains:negative) | -61,610,643.58 | -76,882,718.79 |
| Investmentloss(gainsrepresentedby"-") | -46,798,662.00 | -1,448,571.38 |
| Decreaseindeferredincometaxassets(gains:negative) | 10,213,915.11 | -6,803,474.24 |
| Increaseindeferredincometaxliabilities(“-”meansdecrease) | -1,011,200.04 | 4,250,378.88 |
| Decreaseininventory(gains:negative) | -136,941,690.32 | -283,734,148.64 |
| Decreaseinaccountsreceivablegeneratedfromoperatingactivities(gainsrepresentedby"-") | 70,267,472.18 | 1,860,662.45 |
| Increaseinaccountspayableusedinoperatingactivities(decreaserepresentedby"-") | -262,288,620.04 | -222,604,387.48 |
| Others | ||
| Netcashflowfromoperatingactivities | 148,610,216.98 | 117,482,408.74 |
| 2.Significantinvestingandfinancingactivitieswithoutinvolvementofcashreceiptsandpayments | ||
| Conversionofdebttocapital | ||
| Convertiblecorporatebondsmaturedwithinoneyear | ||
| Fixedassetunderfinancelease | ||
| 3.Netincrease/decreaseofcashandcashequivalent: | ||
| Closingbalanceofcash | 1,289,867,784.05 | 1,729,633,239.07 |
| Less:Openingbalanceofcash | 1,822,897,270.16 | 1,970,006,884.89 |
| Plus:Closingbalanceofcashequivalents | ||
| Less:Openingbalanceofcashequivalents | ||
| Netincreaseincashandcashequivalents | -533,029,486.11 | -240,373,645.82 |
(2)Cashandcashequivalents
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| I.Cash | 1,289,867,784.05 | 1,822,897,270.16 |
| Including:Cashonhand | 4,718,966.73 | 2,360,089.79 |
| Bankdepositsondemand | 1,285,147,376.92 | 1,810,590,630.08 |
| Othermonetaryassetsondemand | 1,440.40 | 9,946,550.29 |
| III.Endingbalanceofcashandcashequivalents | 1,289,867,784.05 | 1,822,897,270.16 |
63.Assetswithrestrictedownershiporrighttouse
Unit:RMB
| Item | Endingcarryingamount | ReasonforRestriction |
| Monetarycapital | 1,910,353.64 | Cashdeposit |
| Othercurrentassets | 101,734,649.86 | Refundabledeposits |
| Total | 103,645,003.50 |
64.Foreigncurrencymonetaryitems
(1)Foreigncurrencymonetaryitems
Unit:RMB
| Item | Closingforeigncurrencybalance | Exchangerate | EndingbalanceconvertedtoRMB |
| Monetarycapital | |||
| Ofwhich:USD | 47,723,907.12 | 7.2258 | 344,843,408.07 |
| EUR | 1,275,226.42 | 7.8771 | 10,045,086.03 |
| HKD | 4,136,573.14 | 0.9220 | 3,813,920.44 |
| JPY | 12,478,328.00 | 0.0501 | 625,164.23 |
| CHF | 616.44 | 8.0614 | 4,969.37 |
| GBP | 57.18 | 9.1432 | 522.81 |
| Dong | 52,333,090,739.00 | 0.0003 | 16,044,838.61 |
| MMK | 661,474,026.72 | 0.0034 | 2,276,037.74 |
| Riel | 101,084,492.00 | 0.0017 | 176,856.29 |
| Notesreceivable | |||
| Ofwhich:USD | 15,447,197.45 | 7.2258 | 111,618,359.33 |
| Accountsreceivable | |||
| Ofwhich:USD | 51,855,545.54 | 7.2258 | 374,697,800.96 |
| EUR | 97,826.27 | 7.8771 | 770,587.31 |
| HKD | |||
| Dong | 20,354,280,945.00 | 0.0003 | 6,240,433.12 |
| Long-termborrowings | |||
| Ofwhich:USD | |||
| EUR | |||
| HKD | |||
| Otherreceivables | |||
| Ofwhich:USD | 1,304,108.06 | 7.2258 | 9,423,224.02 |
| EUR | 40,900.00 | 7.8771 | 322,173.39 |
| HKD | 148,549.00 | 0.922 | 136,962.18 |
| JPY | 4,595,040.00 | 0.0501 | 230,211.50 |
| Dong | 697,724,334.00 | 0.0003 | 213,915.79 |
| MMK | 2,000,000.00 | 0.0034 | 6,881.71 |
| Accountspayable | |||
| Ofwhich:USD | 3,512,862.89 | 7.2258 | 25,383,244.67 |
| EUR | 18,289.20 | 7.8771 | 144,065.86 |
| JPY | 803,987.00 | 0.0501 | 40,279.75 |
| Dong | 30,280,322,995.00 | 0.0003 | 9,283,665.24 |
| MMK | 33,728,957.00 | 0.0034 | 116,056.53 |
| Otherpayables | |||
| Ofwhich:USD | 4,443.21 | 7.2258 | 32,105.75 |
| Dong | 1,035,006,422.00 | 0.0003 | 317,323.34 |
| MMK | 1,030,000.00 | 0.0034 | 3,544.08 |
| Short-termborrowings | |||
| Ofwhich:USD | 32,722,650.43 | 7.2258 | 236,447,327.48 |
| Dong | 269,388,429,265.00 | 0.0003 | 82,591,985.48 |
(2)Notestooverseasentitiesincluding:forsignificantoverseaentities,mainoperatingplace,recordingcurrencyandselectionbasisshallbedisclosed;iftherearechangesinrecordingcurrency,relevantreasonsshallbedisclosed.
?Applicable□NotapplicableTheoperatingplacesoftheCompany'ssubsidiarieswereHongKong,Burma,America,Vietnam,SingaporeandCambodia,andtherecordingcurrencywasHKDforHongKongandUSDforotheroverseascompanies.
65.GovernmentGrants
(1)Basicinformationongovernmentgrants
Unit:RMB
| Category | Amount | Listeditems | Amountrecordedinthecurrentprofitorloss |
| Withholdingandremittingofreturnofhandlingcharges | 252,541.79 | Otherincome | 252,541.79 |
| Technicaltransformationprojectsubsidies | 3,969,900.00 | Otherincome | 3,969,900.00 |
| Taxreductionandexemption | 2,106,830.57 | Otherincome | 2,106,830.57 |
| Humanresourcessubsidies | 471,500.00 | Otherincome | 471,500.00 |
| Qualityimprovementsubsidies | 160,000.00 | Otherincome | 160,000.00 |
| Total | 6,960,772.36 | 6,960,772.36 |
(2)ReturnofGovernmentGrants
□Applicable?NotapplicableVIII.ChangeofConsolidationScope
1.Otherreasonsforchangesofconsolidationscope
Notesofotherchangesinthecombinationscope(e.g.,newsubsidiaries,liquidationofsubsidiaries,etc.)andrelevantsituations:
Nochange.
IX.EquityinOtherEntities
1.EquityinSubsidiary
(1)CompositionsoftheGroup
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| Luthai(HongKong) | HongKong | HongKong | Wholesaleandretailindustry | 100.00% | Set-up | |
| ShanghaiLuthai | Shanghai | Shanghai | Wholesaleandretailindustry | 100.00% | Set-up | |
| LufengCompanyLimited | Zibo | Zibo | Manufacturingindustry | 75.00% | Set-up | |
| LuqunTextile | Zibo | Zibo | Manufacturingindustry | 100.00% | Set-up | |
| XinshengPower | Zibo | Zibo | Manufacturingindustry | 100.00% | Businesscombinationnotunderthesamecontrol | |
| ShanghaiZhinuo | Shanghai | Shanghai | Technologydevelopment,technicalconsultancyandtransferoftechnologies | 100.00% | Set-up | |
| LulianNewMaterials | Zibo | Zibo | Manufacturingindustry | 75.00% | Set-up | |
| LujiaImport&Export | Zibo | Zibo | Importandexporttrade | 100.00% | Set-up | |
| ZhishuConsulting | Beijing | Beijing | Managementconsulting | 100.00% | Set-up | |
| LuThaiOccupationalTrainingSchool | Zibo | Zibo | Skilltraining | 100.00% | Set-up | |
| BanyangMountainVilla | Zibo | Zibo | Cateringservices | 100.00% | Set-up | |
| HuilinInternational | Wenchang | Wenchang | Modernserviceindustry | 100.00% | Set-up | |
| LIIPL(sub-subsidiary) | Singapore | Singapore | Wholesaletextilesandleather,holdingcompany | 100.00% | Set-up | |
| VACL | Burma | Burma | Manufacturingindustry | 100.00% | Set-up | |
| LuThai(America) | America | America | Wholesaleandretailindustry | 100.00% | Set-up | |
| YuanhuiFund | 100.00% | Subscribe | ||||
(2)Significantnon-wholly-ownedsubsidiary
Unit:RMB
| Name | Shareholdingproportionofnon-controllinginterests | Theprofitorlossattributabletothenon-controllinginterests | Declaringdividendsdistributedtonon-controllinginterests | Balanceofnon-controllinginterestsattheperiod-end |
| LufengCompanyLimited | 25.00% | 2,463,643.73 | 347,714,974.91 | |
| LulianNewMaterials | 25.00% | -14,348,507.45 | 34,149,548.60 |
(3)Themainfinancialinformationofsignificantnotwholly-ownedsubsidiary
Unit:RMB
| Name | Endingbalance | Beginningbalance | ||||||||||
| Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliability | Totalliabilities | Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliability | Totalliabilities | |
| LufengCompanyLimited | 958,137,401.46 | 694,530,575.99 | 1,652,667,977.45 | 199,990,653.27 | 55,486,381.89 | 255,477,035.16 | 977,751,666.75 | 736,108,963.24 | 1,713,860,629.99 | 264,894,436.41 | 57,773,566.53 | 322,668,002.94 |
| LulianNewMaterials | 100,506,241.61 | 585,392,877.73 | 685,899,119.34 | 546,423,954.43 | 3,331,546.24 | 549,755,500.67 | 194,594,378.81 | 590,738,673.35 | 785,333,052.16 | 588,315,533.14 | 3,331,546.24 | 591,647,079.38 |
Unit:RMB
| Name | Reportingperiod | Sameperiodoflastyear | ||||||
| Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | |
| LufengCompanyLimited | 630,672,258.24 | 6,009,887.37 | 5,998,315.24 | 111,673,719.55 | 824,088,561.65 | 53,903,771.42 | 53,785,571.14 | 286,465,944.48 |
| LulianNewMaterials | 59,510,967.89 | -57,542,354.11 | -57,542,354.11 | -50,620,961.20 | 37,558,406.73 | -45,385,029.29 | -45,385,029.29 | -20,097,376.54 |
2.Equityinjointventuresorassociatedenterprises
(1)Significantjointventuresorassociatedenterprises
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Accountingtreatmentoftheinvestmenttojointventureorassociatedenterprise | |
| Directly | Indirectly | |||||
| I.Jointventures | ||||||
| II.Associatedenterprises | ||||||
| HaohongInvestment | Ningbo | Ningbo | Equityinvestment | 33.33% | Equitymethod | |
| HaoingInvestment | Ningbo | Ningbo | Equityinvestment | 47.62% | Equitymethod | |
(2)Mainfinancialinformationofsignificantassociatedenterprises
Unit:RMB
| Endingbalance/reportingperiod | Beginningbalance/thesameperiodoflastyear | |||
| HaohongInvestment | HaoyingInvestment | HaohongInvestment | HaoyingInvestment | |
| Currentassets | 183,836,731.09 | 276,420,297.42 | 184,892,005.99 | 278,997,681.82 |
| Non-currentassets | ||||
| Totalassets | 183,836,731.09 | 276,420,297.42 | 184,892,005.99 | 278,997,681.82 |
| Currentliabilities | 3,253,866.05 | 3,255,230.09 | ||
| Non-currentliability | ||||
| Totalliabilities | 3,253,866.05 | 3,255,230.09 | ||
| Netassets | 180,582,865.04 | 276,420,297.42 | 181,636,775.90 | 278,997,681.82 |
| Equityofnon-controllinginterests | ||||
| EquityattributabletoshareholdersoftheCompanyastheparent | 180,582,865.04 | 276,420,297.42 | 181,636,775.90 | 278,997,681.82 |
| Netassetssharescalculatedattheshareholdingproportion | 60,196,480.79 | 131,628,581.43 | 60,547,749.28 | 132,856,975.88 |
| Adjusteditems | ||||
| -Goodwill | ||||
| -Unrealizedprofitofinternaltransactions | ||||
| -Others | -8,989,585.38 | -9,236,099.47 | ||
| Carryingvalueofinvestmenttoassociatedenterprises | 60,196,480.79 | 122,638,996.04 | 60,547,749.28 | 123,620,876.41 |
| Fairvalueofequityinvestmentsinassociatedenterpriseswithpubliclyquotedprices | ||||
| Operatingrevenue | ||||
| Netprofit | -1,053,910.87 | -2,577,384.40 | 1,783,344.27 | -4,386,967.62 |
| Netprofitfromdiscontinuedoperations | ||||
| Othercomprehensiveincome | ||||
| Totalcomprehensiveincome | -1,053,910.87 | -2,577,384.40 | 1,783,344.27 | -4,386,967.62 |
| Dividendsreceivedfromtheassociatesinthecurrentperiod |
X.RisksAssociatedwithFinancialInstruments
TheCompany'smajorfinancialinstrumentsincludemonetarycapital,notesreceivable,accountsreceivable,accountsreceivablefinancing,otherreceivables,othercurrentassets,tradingfinancialassets,investmentindebtobligations,othernon-currentfinancialassets,long-termreceivables,notespayable,accountspayable,otherpayables,short-termborrowings,currentportionofnon-currentliabilities,long-termborrowings,bondspayable,andleaseliabilities.DetailsofvariousfinancialinstrumentsaredisclosedinrelevantNotes.Risksrelatedtothesefinancialinstruments,andriskmanagementpoliciestheCompanyhasadoptedtoreducetheserisksaredescribedasfollows.TheCompanymanagementmanagesandmonitorstheriskexposuretoensuretheaboverisksarecontrolledinalimitedscope.
1.RiskmanagementobjectivesandpoliciesTheCompanyhasconductedtheriskmanagementtoachieveanappropriatebalancebetweentheriskandtheincomeandtominimizetheadverseinfluenceoffinancialrisksontheCompany’sfinancialperformance.Accordingtosuchriskmanagementobjective,theCompanyhasformulatedcorrespondingriskmanagementpolicytorecognizeandanalyzepossiblerisksencounteredbytheCompany,settheappropriateacceptablerisklevelanddesignedcorrespondinginternalcontrolprocedurestomonitortheCompany’srisklevel.Meanwhile,theCompanywillregularlyreviewtheseriskmanagementpoliciesandrelevant
internalcontrolsystemsoastocaterforthemarketorrespondtoanychangeintheCompany’sbusinessoperations.Accordingly,theCompany’sinternalauditdepartmentwillalsoregularlyorrandomlycheckwhethertheinternalcontrolsystemisimplementedinconformitywithrelevantriskmanagementpolicies.ThemajorriskscausedbyfinancialinstrumentsoftheCompanyarecreditrisk,liquidityriskandmarketrisk(includingforeignexchangeriskandinterestraterisk).TheBoardofDirectorsshallberesponsibleforplanningandestablishingtheriskmanagementframeworkfortheCompany,determiningtheCompany’sriskmanagementpoliciesandrelevantguidelinesandmonitoringtheimplementationofvariousriskmanagementmeasures.However,theCompanyhasestablishedcorrespondingriskmanagementpoliciestorecognizeandanalyzepossiblerisksencounteredbytheCompany.Besides,variousrisksarespecifiedintheseriskmanagementpolicies,includingthecreditrisk,theliquidityriskandthemarketriskmanagementetc.Onaregularbasis,theCompanywillevaluatethespecificmarketingenvironmentandvariouschangesintheCompany’sbusinessoperationssoastodeterminewhetheranyriskmanagementpolicyandsystemneedbeupdated.
(1)CreditriskCreditRiskmeansthattheCompanywillsufferanyfinanciallossesduetothecounterparty’sfailureinfulfillingthecontractobligations.TheCompanyshallmanagethecreditriskbasedonthespecificGroupClassification,andthecreditriskmainlyarisesfrombankdeposit,notesreceivable,accountsreceivable,otherreceivablesandlong-termaccountsreceivableetc.TheGroup’sbankdepositsaremainlysavedinstate-ownedbanksandotherlargeandmedium-sizedlistedbanks.TheGroup’sbankdepositsareexpectednottosufferanymajorcreditrisks.Fornotesreceivable,accountsreceivable,otheraccountsreceivableandlong-termaccountsreceivable,theCompanyhasestablishedrelevantpoliciestocontrolthecreditriskexposure.Accordingtotheclient’sfinancialstatus,creditrecordandotherfactors(includingthecurrentmarketcondition),theCompanywillevaluatetheclient’screditqualificationandsetcorrespondingcreditperiod.TheCompanyregularlymonitorsthecreditrecordsofcustomers.Forcustomerswithbadcreditrecords,theCompanyadoptedcorrespondingmethods,suchaswrittenpressingforpayment,shorteningcreditperiod,andcancelingcreditperiod,soastoensuretheCompany'soverallcreditriskiscontrollable.ThehugestcreditriskexposurebornebytheCompanyisthebookvalueofeachfinancialassetreflectedinthebalancesheet,andtheCompanyalsofacescreditriskduetotheprovisionoffinancialguarantee,asdetailedinNoteXII2.Intermsofaccountsreceivable,thetop5customersinaccountsreceivablewereaccountedfor18.82%ofthetotalamountofaccountsreceivableoftheCompany(21.75%in2022).Asforotherreceivables,thetop5oftheendingbalanceaccordingtothearrearspartywasaccountedfor57.83%ofthetotalamountofotherreceivablesoftheCompany(85.42%in2022).InvestmentindebtobligationsTheGroupsupervisedthechangesofcreditriskthroughtrackingthepublishedexternalcreditratings.Inordertomakesurewhetherthecreditratingwasthelatest,andwhetherthecreditriskhasincreasedobviouslyofevaluationreportdatebutnotbeenreflectedinthepublishedexternalratings,theCompanyhassupplementedthroughexaminingthechangesofbondyieldandtheavailablenewsandsupervisioninformation.Onthebalancesheetdate,thecarryingvalueofinvestmentindebtobligationsoftheCompanyarelistedasfollowsaccordingtoreportitems(Unit:RMB’0,000).
| 30June2023 | 31December2022 | |
| TradingFinancialAssets | 90,127.06 | 23,952.27 |
| OtherCurrentAssets | - | |
| Total | 90,127.06 | 23,952.27 |
(2)Liquidityrisk
LiquidityRiskreferstotheriskofcapitalshortageencounteredbytheCompanyduringthecashpaymentorthesettlementofotherfinancialassets.Duringthemanagementofliquidityrisk,theCompanyshallreserveandmonitorcorrespondingcashandcashequivalentdeemedsufficientbythemanagementsoastomeettheCompany’soperationalrequirementsandmitigatetheimpactcausedbythecashflowfluctuation.TheGroup’smanagementwillmonitortheuseofbankloansandguaranteethefulfillmentofloanagreement.Meanwhile,majorfinancialinstitutionsshallpromisetoprovidetheGroupwithsufficientreservefundsinordertosatisfytheshort-termandlong-termfunddemand.TheGroupshallraiseitsworkingcapitalbasedonthecapitalgeneratedfrombusinessoperationsandbankloans.
(3)MarketriskThefinancialinstrument’smarketriskreferstothefluctuationriskoffairvalueoffinancialinstrumentorfuturecashflowcausedbythechangesofmarketprice,includingtheinterestrateriskandtheexchangeraterisk.InterestrateriskInterestrateriskreferstotheriskoffluctuationsinthefairvalueorfuturecashflowsoffinancialinstrumentsarisingfromchangesinmarketinterestrates.Theinterestratecanderivefromtherecognizedinterest-bearingfinancialinstrumentsandunrecognizedfinancialinstruments(includingcertainloancommitment).TheGroup’sinterestrateriskmainlyarisesfromthebankloan.FinancialliabilitiesbasedonthefloatinginterestratewillcausethecashflowinterestraterisktotheCompany,andfinancialliabilitiesbasedonthefixedinterestratethefairvalueinterestraterisk.However,theCompanyhaspaidcloseattentiontheimpactofinterestratefluctuationsontheCompany’sinterestraterisk.Atpresent,theCompanyhasnottakenanyinterestratehedgingmeasures.Theriseofinterestratewillincreasethecostofnewly-addedinterest-bearingdebtsandtheinterestcostoftheCompany’sunsettledinterest-bearingdebtsbasedonthefloatinginterestrate,andcausemajoradverseinfluenceontheCompany’sfinancialperformance.Themanagementwilltimelymakecorrespondingadjustmentaccordingtothelatestmarketsituation,andcorrespondinginterestrateswapwillbearrangedtoreducetheinterestraterisk.Theinterest-bearingfinancialinstrumentsheldbytheCompanyareasfollows(Unit:RMB’0,000):
| Item | 30June2023 | 31December2022 |
| Fixed-interestfinancialinstruments | ||
| Including:short-termborrowings | 52,334.96 | 49,811.77 |
| Currentportionoflong-termborrowings | 29,880.00 | 19,880.00 |
| Long-termborrowings | 6,284.07 | 10,330.00 |
| BondsPayable | 144,998.59 | 143,816.22 |
| Total | 233,497.61 | 223,837.99 |
| Floating-interestfinancialinstruments | ||
| Financialassets | 90,127.06 | 23,952.27 |
| Including:tradingfinancialassets | 90,127.06 | 23,952.27 |
| Financialliabilities | 28,976.78 | 20,540.58 |
| Including:short-termborrowings | 361.29 | 2,077.58 |
| Currentportionoflong-termborrowings | 18,513.00 | 10,200.00 |
| Long-termborrowings | 10,102.49 | 8,263.00 |
On30June2023,ifthelendingratecalculatedatfloatinginterestrateupordown100basispointswithothervariablesunchanged,thenetprofitandshareholders’equitywillbedecreasedorincreasedaboutRMB2,897,700.On30June2023,ifthefloatinginterestrateoftradingfinancialassetsupordown100basispointswithothervariablesunchanged,thenetprofitandshareholders’equitywillbedecreasedorincreasedaboutRMB9,012,700.Foreignexchangerisk
Foreignexchangeriskisreferredtothefluctuationriskoffairvalueoffinancialinstrumentsorfuturecashflowsresultedfromthechangeofforeignexchangerate.Theforeignexchangeratewasoriginatedfromthefinancialinstrumentsdenominatedinforeigncurrenciesotherthantherecordingcurrency.On30June2023,theamountofforeigncurrencyfinancialassetsandforeigncurrencyfinancialliabilitiesconvertedtorenminbiisasfollows(Unit:RMB’0,000):
| Item | Foreigncurrencyliabilities | Foreigncurrencyassets | ||
| AmountattheEndofThisReportingPeriod | AmountattheBeginningofThisReportingPeriod | AmountattheEndofThisReportingPeriod | AmountattheBeginningofThisReportingPeriod | |
| USD | 26,186.27 | 16,573.86 | 84,058.28 | 105,905.57 |
| EUR | 14.41 | 108.42 | 1,113.78 | 2,061.26 |
| JPY | 4.03 | 30.43 | 85.54 | 29.81 |
| HKD | 0.00 | 0.00 | 395.09 | 234.03 |
| GBP | 0.00 | 0.00 | 0.05 | 0.05 |
| CHF | 0.00 | 0.00 | 0.50 | 0.10 |
| SEK | ||||
| Dong | 9,219.30 | 4,068.90 | 2,249.92 | 5,883.56 |
| MMK | 11.96 | 20.55 | 228.29 | 72.24 |
| Riel | 0.00 | 0.00 | 17.69 | 21.74 |
| Total | 35,435.96 | 20,802.16 | 88,149.14 | 114,208.36 |
TheGrouphaspaidcloseattentiontheimpactofexchangeratefluctuationsontheGroup’sexchangeraterisk.Asattheendofeachreportingperiod,fortheGroup'smonetarycapital,billsreceivable,accountsreceivable,accountspayable,short-termborrowingsandlong-termborrowingsdenominatedinforeigncurrencies,theimpactontheGroup'sshareholders'equityandprofitassuminga10%appreciationordepreciationofRMBagainstforeigncurrencies,whileotherfactorsremainunchanged,wouldbeasfollows(Unit:RMB’0,000):
| Exchangeratefluctuations | Currentperiod | Sameperiodlastyear | ||
| Impactonprofit | Impactonshareholders'equity | Impactonprofit | Impactonshareholders'equity | |
| 10%appreciationagainstRMB | -5,271.32 | -5,271.32 | -9,469.17 | -9,469.17 |
| 10%depreciationagainstRMB | 5,271.32 | 5,271.32 | 9,469.17 | 9,469.17 |
2.CapitalmanagementTheobjectivesofcapitalmanagementpoliciesoftheCompanyaretoensurethecontinuousoperationoftheCompanysoastoprovidereturntoshareholdersandbenefitotherstakeholders,aswellastoreducecapitalcostbymaintainingtheoptimalcapitalstructure.Inordertomaintainoradjustcapitalstructure,theCompanymightadjustfinancingmethodandthedividendspaidtoshareholders,returncapitaltoshareholders,issuenewsharesandotherequityinstrumentorsellassetstoreducedebts.TheGroupsupervisedthecapitalstructurebasedontheasset-liabilityratio(namelytotalliabilitiesdividetotalassets).On30June2023,theasset-liabilityratiowas28.99%oftheCompany(29.53%on31December2022).
XI.DisclosureofFairValue
1.EndingFairValueofAssetsandLiabilitiesatFairValue
Unit:RMB
| Item | Closingfairvalue |
| Fairvaluemeasurementitemsatlevel1 | Fairvaluemeasurementitemsatlevel2 | Fairvaluemeasurementitemsatlevel3 | Total | |
| I.Consistentfairvaluemeasurement | -- | -- | -- | -- |
| (I)Tradingfinancialassets | 218,443,273.75 | 700,396,151.52 | 918,839,425.27 | |
| 1.Financialassetsatfairvaluethroughprofitorloss | 218,443,273.75 | 700,396,151.52 | 918,839,425.27 | |
| (1)Investmentindebtinstruments | 218,443,273.75 | 682,827,295.06 | 901,270,568.81 | |
| (3)Derivativefinancialassets | 17,568,856.46 | 17,568,856.46 | ||
| (VI)Accountsreceivablefinancing | 24,096,385.95 | 24,096,385.95 | ||
| (VII)Othernon-currentfinancialassets | 89,080,000.00 | 89,080,000.00 | ||
| Thetotalamountofassetsconsistentlymeasuredatfairvalue | 218,443,273.75 | 700,396,151.52 | 113,176,385.95 | 1,032,015,811.22 |
| (VI)Tradingfinancialliabilities | 14,848,448.10 | 14,848,448.10 | ||
| Ofwhich:Derivativefinancialliabilities | 14,848,448.10 | 14,848,448.10 | ||
| Thetotalamountofliabilitiesconsistentlymeasuredatfairvalue | 14,848,448.10 | 14,848,448.10 | ||
| II.InconsistentFairValueMeasurement | -- | -- | -- | -- |
2.MarketPriceRecognitionBasisforConsistentandInconsistentFairValueMeasurementItemsatLevel1
Forequityoflistedcompanies,theCompanyrecognizesthefairvaluebasedonitsmarketpriceonthepubliclytradedmarket.
3.Valuationtechniqueadoptedandnatureandamountdeterminationofimportantparametersforconsistentandinconsistentfairvaluemeasurementitemsatlevel2Forwealthmanagementproducts,theCompanydeterminestheirfairvaluebasedontheprospectiveearningrateasagreedinthecontract.Forfundproducts,theCompanydeterminestheirfairvaluebasedonthenetunitvalueprovidedbythefundmanager.Forforwardoptions,theCompanydeterminestheirfairvaluebasedonbankforwardforeignexchangequotationsattheendoftheperiod.
4.Valuationtechniqueadoptedandnatureandamountdeterminationofimportantparametersforconsistentandinconsistentfairvaluemeasurementitemsatlevel3
Fortheunlistedequityinvestment,theCompanyadoptsthecomparablelistedcompanycomparisonmethod,andthenon-observableinputvalueofthecomparablelistedcompanycomparisonmethodincludestheliquiditydiscount.TheinvestmentintoShandongHongqiaoThermoelectricCo.,Ltd.madebyLuqunTextile(theCompany’ssubsidiary)isexpectedtobeheldinthelongrunforobtainingthediscountonpowerpurchase.Asnorevenuedistributionrightisvestedinthe
investment,theinvestedunit’soperatingprofitandlossarenotsharedorborne,andtheequitytransferisnotproposed,theCompanyregardsitasthefinancialassetwhichshallbemeasuredbasedonthefairvalueandwhosevariationsareincludedinthecurrentprofitandloss,andtheinvestmentcostisdeemedasthefairvalueofthefinancialasset.Foraccountsreceivablesfinancingatfairvalueandthechangesincludedinothercomprehensiveincome,itsfairvalueshallbedeterminedbythediscountcashflowmethod.
5.ExplaintheReasonforConversionandtheGoverningPolicywhentheConversionHappensifConversionHappensamongConsistentFairValueMeasurementItemsatDifferentLevels
TheCompanytakesthedateoftheeventgivingrisetotheconversionbetweenlevelsasthepointatwhichtheconversionbetweenlevelsisrecognised.RemegenCo.,Ltd.wheretheCompanyhasshareinvestmentwaslistedandistradable,thereforethefairvaluemeasurementofthisothernon-currentfinancialassethasbeenconvertedfromlevel2tolevel1.
6.FairValueofFinancialAssetsandLiabilitiesNotMeasuredatFairValue
Thefinancialassetsandfinancialliabilitiesmeasuredatamortizedcostmainlyinclude:monetaryassets,notesreceivable,accountsreceivable,otherreceivables,short-termborrowings,notespayable,accountspayables,otherpayables,currentportionoflong-termborrowings,long-termborrowingsandbondspayable,etc.
XII.RelatedPartyandRelated-partyTransactions
1.InformationrelatedtothecompanyastheparentoftheCompany
| Name | Registrationplace | Natureofbusiness | Registeredcapital | Proportionofshareheldbythecompanyastheparentagainstthecompany(%) | Proportionofvotingrightsownedbythecompanyastheparentagainstthecompany(%) |
| LuchengTextile | Zibo | Textile,chemistryandinvestment | RMB63,260,000 | 16.25% | 16.25% |
Notes:informationontheCompanyastheparentThefinalcontrollersoftheCompanyareMr.LiuZibinandMr.LiuDeming.
2.SubsidiariesoftheCompanyRefertoNoteIX-1.
3.InformationonthejointventuresandassociatedenterprisesoftheCompanyRefertoNoteIX-2.
4.Informationonotherrelatedparties
| Name | Relationshipwiththecompany |
| ZiboLiminPurifiedWaterCo.,Ltd.(hereinafterreferredtoas"LiminPurifiedWater") | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| ZiboLuqunLandCo.,Ltd(hereinafterreferredtoas"LuqunLand") | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| ZiboLuruiFineChemicalCo.,Ltd.(hereinafterreferredtoas"LuruiChemical") | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| ZiboLujiaPropertyManagementCo.,Ltd.(hereinafterreferredtoas"LujiaProperty") | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| HongKongTungHoiInternationalCompanyLimited(hereinafterreferredtoas"TungHoiInternational") | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| ZiboChengshunHosieryCo.,Ltd.(hereinafterreferredtoas"ChengshunHosiery") | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| ZiboChengshunEconomicandTradeCo.,Ltd.(hereinafterreferredtoas"ChengshunEconomicandTrade") | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| ChengshunPetrochemical(ZhejiangZhoushan)Co.,Ltd.(hereinafterreferredtoas"ChengshunPetrochemical") | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| ZiboLuchengPetrochemicalSalesCo.,Ltd.(hereinafterreferredtoas"LuchengPetrochemical") | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| ShanghaiHengjiuTextileNewMaterialsCo.,Ltd.(hereinafterreferredtoas"HengjiuTextile") | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| ShandongXiruiNewMaterialCo.,Ltd.(hereinafterreferredtoas"XiruiNewMaterial") | Wholly-ownedsubsidiaryoftheparentcompany'swholly-ownedsubsidiary |
| ZiboLumeiEconomicandTradeCo.,Ltd.(hereinafterreferredtoas"LumeiEconomicandTrade") | Wholly-ownedsubsidiaryoftheCompanyastheparent |
| NingboXiranInvestmentCo.,Ltd.(“NingboXiran”) | Wholly-ownedsubsidiaryoftheCompanyastheparent |
5.Listofrelated-partytransactions
(1)InformationonacquisitionofgoodsandreceptionoflaborserviceInformationonacquisitionofgoodsandreceptionoflaborservice
Unit:RMB
| Relatedparty | Content | Reportingperiod | Theapprovaltradecredit | Whetherexceedtradecreditornot | Sameperiodoflastyear |
| LiminPurifiedWater | Recycledwater,sewagetreatment | 13,016,170.41 | 19,400,000.00 | Not | 13,452,523.98 |
| LuruiFineChemical | Auxiliaries | 30,532,002.97 | 46,800,000.00 | Not | 51,716,798.45 |
| TungHoiInternational | Auxiliaries | 18,138,767.89 | 20,000,000.00 | Not | |
| ChengshunHosiery,LuqunLand | Papercore,hosiery,hosiery,electricity,etc. | 3,511,793.11 | 5,458,333.33 | Not | 4,473,602.71 |
| ChengshunTrading | Supermarketretail | 781,733.59 | 1,880,000.00 | Not | 3,939,234.06 |
| LuchengPetrochemical | Oils | 1,997,076.22 | 2,000,000.00 | Not | 1,993,157.77 |
| ChengshunPetrochemical | Naturalgasandoilproducts | 25,248,021.93 | 39,375,000.00 | Not | 27,957,095.10 |
| XiruiNewMaterials | Facemasks | Not | 150,069.91 |
Informationofsalesofgoodsandprovisionoflaborservice
Unit:RMB
| Relatedparty | Content | Reportingperiod | Sameperiodoflastyear |
| ChengshunHosiery | Yarn,yarn-dyedfabric,etc. | 211,763.04 | 519,500.49 |
| ChengshunHosiery | Materials,electricity,runningwater,heating,steam | 128,111.06 | 154,962.88 |
| ChengshunTrading | Materials,electricity,tapwater,yarn,garments,food,heating,steam | 61,083.89 | 50,822.62 |
| LuchengPetrochemical | Electricity,materials | 6,733.58 | 7,266.40 |
| LiminPurifiedWater | Materials,electricity,garments,lunchcomponentsservices,food | 2,764,696.42 | 2,647,392.88 |
| LuruiFineChemical | Garments,fabrics,food | 153,643.21 | 41,838.73 |
| LujiaProperty | Materials,garments | 17,773.07 | 34,377.34 |
| XiruiNewMaterials | Cateringandaccommodationservice | 9,917.94 | |
| XiruiNewMaterials | Materials,garments,etc. | 54,623.19 | 44,576.98 |
| LuqunProperty | Materials,garments | 365,076.11 | |
| LumeiEconomicandTrade | Garments | 63.72 |
Notes
(2)Informationonrelated-partyleaseTheCompanywaslessor:
Unit:RMB
| Nameoflessee | Categoryofleasedassets | Theleaseincomeconfirmedinthecurrentperiod | Theleaseincomeconfirmedinthesameperiodoflastyear |
| ChengshunEconomicandTrade | Rentofhousesandbuildings | 36,108.00 | 36,108.00 |
| ChengshunHosiery | Rentofhousesandbuildings | 8,400.00 |
TheCompanywaslessee:
Unit:RMB
| Nameoflessor | Categoryofleasedassets | Rentalexpenseofsimplifiedshort-termleasesandlow-valueassetleases(ifapplicable) | Variableleasepaymentsthatarenotcoveredinthemeasurementoftheleaseliabilities(ifapplicable) | Rentpayable | Interestexpenseonleaseliabilitiesborne | Addedright-of-useassets | |||||
| Amountofthecurrentperiod | Amountofthepreviousperiod | Amountofthecurrentperiod | Amountofthepreviousperiod | Amountofthecurrentperiod | Amountofthepreviousperiod | Amountofthecurrentperiod | Amountofthepreviousperiod | Amountofthecurrentperiod | Amountofthepreviousperiod | ||
| LuchengTextile | Rentofland | 1,807,428.60 | 1,807,428.60 | 561,567.29 | 618,066.67 | ||||||
| LuchengTextile | Rentofgasstation | 116,571.42 | 116,571.42 | 53,613.54 | 56,468.65 | ||||||
| LuchengTextile | Rentofbuildings | 5,511,114.30 | 5,511,114.30 | 962,595.71 | 1,144,374.63 | ||||||
| LuqunProperty | Rentoflandandbuildings | 985,714.26 | 985,714.26 | 568,899.59 | 587,802.00 | ||||||
6.Accountsreceivableandpayableofrelatedparty
(1)Accountsreceivable
Unit:RMB
| Item | Relatedparty | Endingbalance | Beginningbalance | ||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | ||
| Prepayments | LuruiFineChemical | 197,267.31 | |||
(2)Accountspayable
Unit:RMB
| Item | Relatedparty | Endingcarryingamount | Beginningcarryingamount |
| Accountspayable | LuruiFineChemical | 412,650.99 | |
| Accountspayable | TungHoiInternational | 2,950,527.17 | 976,966.23 |
| Contractliability | LuqunProperty | 271,236.18 | 649,676.55 |
XIII.StockPayment
1.Theoverallsituationofshare-basedpayments?Applicable□Notapplicable
Unit:RMB
| ThetotalamountofequityinstrumentsgrantedbytheCompanyforthecurrentperiod | 0.00 |
| ThetotalamountoftheCompany'sequityinstrumentsexercisedforthecurrentperiod | 9,898,500.00 |
| ThetotalamountofequityinstrumentsoftheCompanylosingefficacyforthecurrentperiod | 0.00 |
| TherangeofexercisepricesofstockoptionsissuedandoutstandingattheendoftheperiodoftheCompanyandtheremainingtermofthecontract | - |
| TherangeofexercisepricesofotherequityinstrumentsissuedattheendoftheperiodoftheCompanyandtheremainingtermofthecontract | - |
2.Equity-settledshare-basedpayments
?Applicable□Notapplicable
Unit:RMB
| Methodsfordeterminingthefairvalueofequityinstrumentsonthegrantdate | Differencebetweenthemarketpriceofthestockandthegrantpriceonthegrantdate |
| Basisfordeterminingthenumberoffeasiblerightequityinstruments | Optimalestimationofexpectedfeasiblerightinthefuture |
| Reasonsforthesignificantdiscrepancybetweenthecurrentperiodestimatesandthepreviousestimates | N/A |
| Accumulatedamountofequity-settledshare-basedpaymentincluded | 79,311,785.83 |
| incapitalreserves | |
| Thetotalamountoftheexpenserecognizedforthecurrentperiodpaidonequity-settledshares | 11,010,319.17 |
3.Cash-settledshare-basedpayments
□Applicable?Notapplicable
XIV.CommitmentsandContingency
1.SignificantCommitments
Significantcommitmentsonbalancesheetdate
(1)Capitalcommitments
| Commitmentssignedbuthasn’tbeenrecognizedinfinancialstatements | 30June2023 | 31December2022 |
| Commitmentonconstructingandpurchasinglong-livedassets(RMB’0,000) | 30,305.38 | 50,131.58 |
2.Contingency
(1)SignificantContingencyonBalanceSheetDate
Asat30June2023,therewasnocontingencysuchaspendinglawsuitsandexternalguaranteesintheCompanytodisclose.
(2)ExplanationshallbegivenevenifthereisnosignificantcontingencyfortheCompanytodisclose
TherewasnosignificantcontingencyintheCompanytodisclose.XV.NotesofMainItemsintheFinancialStatementsoftheCompanyastheParent
1.AccountsReceivable
(1)ListedbyCategory
Unit:RMB
| Category | Endingbalance | Beginningbalance | ||||||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
| Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
| Accountsreceivable | 2,855,563.31 | 0.97% | 2,855,563.31 | 100.00% | 4,856,146.97 | 1.24% | 4,856,146.97 | 100.00% | ||
| withdrawalofBaddebtprovisionseparatelyaccrued | ||||||||||
| Ofwhich: | ||||||||||
| Accountsreceivablewithdrawalofbaddebtprovisionofbygroup | 290,930,481.12 | 99.03% | 17,792,519.12 | 6.12% | 273,137,962.00 | 386,947,247.21 | 98.76% | 29,030,196.50 | 7.50% | 357,917,050.71 |
| Ofwhich: | ||||||||||
| Undueaccounts(creditinsuranceinsured) | 41,732,783.74 | 14.21% | 438,194.24 | 1.05% | 41,294,589.50 | 45,947,651.98 | 11.73% | 482,450.35 | 1.05% | 45,465,201.63 |
| Undueaccounts(nocreditinsurance) | 219,947,547.38 | 74.87% | 10,997,377.38 | 5.00% | 208,950,170.00 | 272,913,162.58 | 69.66% | 13,645,658.14 | 5.00% | 259,267,504.44 |
| Overdueaccounts(creditinsuranceinsured) | 15,230,253.18 | 5.18% | 2,391,149.75 | 15.70% | 12,839,103.43 | 31,716,529.93 | 8.10% | 4,979,495.20 | 15.70% | 26,737,034.73 |
| Overdueaccounts(nocreditinsurance) | 14,019,896.82 | 4.77% | 3,965,797.75 | 28.29% | 10,054,099.07 | 36,369,902.72 | 9.28% | 9,922,592.81 | 27.28% | 26,447,309.91 |
| Total | 293,786,044.43 | 100.00% | 20,648,082.43 | 7.03% | 273,137,962.00 | 391,803,394.18 | 100.00% | 33,886,343.47 | 8.65% | 357,917,050.71 |
Baddebtprovisionseparatelyaccrued:June2023
Unit:RMB
| Name | Endingbalance | |||
| Carryingamount | Baddebtprovision | Withdrawalproportion | Reasonforwithdraw | |
| Customer1 | 2,807,080.87 | 2,807,080.87 | 100.00% | Customer'sapplication |
| forbankruptcyprotection | ||||
| Customer2 | 48,482.44 | 48,482.44 | 100.00% | Customerinfinancialdifficulty |
| Total | 2,855,563.31 | 2,855,563.31 |
Baddebtprovisionseparatelyaccrued:Y2022
Unit:RMB
| Name | Endingbalance | |||
| Carryingamount | Baddebtprovision | Withdrawalproportion | Reasonforwithdraw | |
| Customer1 | 2,705,609.83 | 2,705,609.83 | 100.00% | Customer'sapplicationforbankruptcyprotection |
| Customer2 | 1,986,544.97 | 1,986,544.97 | 100.00% | Customerinfinancialdifficulty |
| Customer3 | 90,959.35 | 90,959.35 | 100.00% | Customerinfinancialdifficulty |
| Customer4 | 73,032.82 | 73,032.82 | 100.00% | Customerinfinancialdifficulty |
| Total | 4,856,146.97 | 4,856,146.97 | ||
Withdrawalofbaddebtprovisionbygroup:June2023
Unit:RMB
| Name | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion | |
| Group1:Undueaccounts(creditinsuranceinsured) | 41,732,783.74 | 438,194.24 | 1.05% |
| Group2:Undueaccounts(nocreditinsurance) | 219,947,547.38 | 10,997,377.38 | 5.00% |
| Group3:Overdueaccounts(creditinsuranceinsured) | 15,230,253.18 | 2,391,149.75 | 15.70% |
| Group4:Overdueaccounts(nocreditinsurance) | 14,019,896.82 | 3,965,797.75 | 28.29% |
| Total | 290,930,481.12 | 17,792,519.12 | |
Notes:
Baddebtprovisionwithdrawnbygroups:Y2022
Unit:RMB
| Name | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion | |
| Group1:Undueaccounts(creditinsuranceinsured) | 45,947,651.98 | 482,450.35 | 1.05% |
| Group2:Undueaccounts(nocreditinsurance) | 272,913,162.58 | 13,645,658.14 | 5.00% |
| Group3:Overdueaccounts(creditinsuranceinsured) | 31,716,529.93 | 4,979,495.20 | 15.70% |
| Group4:Overdueaccounts(nocreditinsurance) | 36,369,902.72 | 9,922,592.81 | 27.28% |
| Total | 386,947,247.21 | 29,030,196.50 | |
Notes:
Pleaserefertotherelevantinformationofdisclosureofbaddebtprovisionofotheraccountsreceivableifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivable.?Applicable□NotapplicableDisclosurebyaging
Unit:RMB
| Aging | Endingbalance |
| Within1year(including1year) | 287,831,138.50 |
| 1to2years | 2,247,298.88 |
| 2to3years | 31,034.12 |
| Over3years | 3,676,572.93 |
| 3to4years | 2,800,273.41 |
| 4to5years | 566,100.60 |
| Over5years | 310,198.92 |
| Total | 293,786,044.43 |
(2)BadDebtProvisionWithdrawal,ReversedorRecoveredintheReportingPeriod
Withdrawalofbaddebtprovision:
Unit:RMB
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |||
| Withdrawal | Reversedorrecovered | Verification | Others | |||
| Baddebtprovision | 33,886,343.47 | -13,238,163.27 | 97.77 | 20,648,082.43 | ||
| Total | 33,886,343.47 | -13,238,163.27 | 97.77 | 20,648,082.43 | ||
(3)AccountsReceivableWritten-offinCurrentPeriod
Unit:RMB
| Item | Written-offamount |
| Written-offaccountsreceivable | 97.77 |
(4)Top5oftheEndingBalanceoftheAccountsReceivableCollectedaccordingtoArrearsParty
Unit:RMB
| Nameoftheentity | Endingbalance | Proportiontototalendingbalanceofaccountsreceivable | Endingbalanceofbaddebtprovision |
| Aggregateamountoftop5ofaccountsreceivableofendingbalancecollectedbyarrears | 103,294,017.09 | 35.16% | 4,897,094.60 |
| party | ||
| Total | 103,294,017.09 | 35.16% |
2.OtherReceivables
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Dividendreceivable | 185,745,705.03 | 18,563,298.39 |
| Otherreceivables | 2,083,708,895.83 | 1,964,032,236.60 |
| Total | 2,269,454,600.86 | 1,982,595,534.99 |
(1)DividendReceivable
1)DividendReceivableClassification
Unit:RMB
| Project(orinvestee) | Endingbalance | Beginningbalance |
| FengshouCotton | 19,540,314.10 | 19,540,314.10 |
| ZJTexitle | 175,981,480.67 | |
| Less:baddebtprovision | -9,776,089.74 | -977,015.71 |
| Total | 185,745,705.03 | 18,563,298.39 |
2)WithdrawalofBadDebtProvision?Applicable□Notapplicable
Unit:RMB
| Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
| Expectedcreditlossinthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
| Balanceof1January2023 | 977,015.71 | 977,015.71 | ||
| Balanceof1January2023intheCurrentPeriod | ||||
| WithdrawaloftheCurrentPeriod | 8,799,074.03 | 8,799,074.03 | ||
| Balanceof30June2023 | 9,776,089.74 | 9,776,089.74 |
ChangesofcarryingamountwithsignificantamountchangedoflossprovisionintheCurrentPeriod
□Applicable?Notapplicable
(2)OtherReceivables
1)Otherreceivablesclassifiedbycategory
Unit:RMB
| Nature | Endingcarryingamount | Beginningcarryingamount |
| Intercoursefunds | 2,078,500,343.98 | 1,914,694,616.18 |
| Exportrebates | 9,934,992.64 | |
| Paymentonbehalf | 6,805,978.11 | 9,769,724.73 |
| Guaranteedepositandcashdeposit | 2,829,693.46 | 3,278,418.46 |
| Borrowingsandpettycash | 1,368,737.16 | 968,504.94 |
| Other | 2,153,164.28 | 35,155,692.70 |
| Total | 2,091,657,916.99 | 1,973,801,949.65 |
2)Withdrawalofbaddebtprovision
Unit:RMB
| Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
| Expectedcreditlossofthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
| Balanceof1January2023 | 8,577,358.06 | 1,192,354.99 | 9,769,713.05 | |
| Balanceof1January2023intheCurrentPeriod | ||||
| WithdrawaloftheCurrentPeriod | -1,804,402.91 | -16,288.98 | -1,820,691.89 | |
| Balanceof30June2023 | 6,772,955.15 | 1,176,066.01 | 7,949,021.16 |
Changesofcarryingamountwithsignificantamountchangedoflossprovisioninthecurrentperiod
□Applicable?NotapplicableDisclosurebyaging
Unit:RMB
| Aging | Endingbalance |
| Within1year(including1year) | 1,856,188,216.78 |
| 1to2years | 151,060,529.29 |
| 2to3years | 81,093,588.73 |
| Over3years | 3,315,582.19 |
| 3to4years | 761,360.00 |
| 4to5years | 76,463.18 |
| Over5years | 2,477,759.01 |
| Total | 2,091,657,916.99 |
3)Top5oftheEndingBalanceoftheOtherReceivablesCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameofentity | Nature | Endingbalance | Aging | Proportiontoendingbalanceoftotalotherreceivables | Endingbalanceofbaddebtprovision |
| Customer1 | Intercoursefunds | 630,682,888.49 | Within1year | 30.15% | 1,892,048.67 |
| Customer2 | Intercoursefunds | 606,370,330.06 | Within1year,1to2yearsand2to3years | 28.99% | 1,819,110.99 |
| Customer3 | Intercoursefunds | 524,383,925.26 | Within1year | 25.07% | 1,573,151.78 |
| Customer4 | Intercoursefunds | 208,420,388.97 | Within1year | 9.96% | 625,261.17 |
| Customer5 | Intercoursefunds | 91,535,922.02 | Within1year | 4.38% | 274,607.77 |
| Total | 2,061,393,454.80 | 98.55% | 6,184,180.38 |
3.Long-termEquityInvestment
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Investmenttosubsidiaries | 3,107,135,666.50 | 3,107,135,666.50 | 2,885,254,556.40 | 2,885,254,556.40 | ||
| Investmenttojointventuresandassociatedenterprises | 182,835,476.83 | 182,835,476.83 | 184,168,625.69 | 184,168,625.69 | ||
| Total | 3,289,971,143.33 | 3,289,971,143.33 | 3,069,423,182.09 | 3,069,423,182.09 | ||
(1)Investmenttosubsidiaries
Unit:RMB
| Investee | Beginningbalance(carryingvalue) | Increase/decrease | Endingbalance(carryingvalue) | Endingbalanceofdepreciationreserve | |||
| Additionalinvestment | Reducedinvestment | Withdrawalofimpairmentprovision | Other | ||||
| XinshengPower | 176,340,737.93 | 176,340,737.93 | |||||
| LufengCompanyLimited | 529,620,000.00 | 529,620,000.00 | |||||
| LuqunTextile | 171,784,550.00 | 171,784,550.00 | |||||
| Luthai(HongKong) | 128,771,800.00 | 128,771,800.00 | |||
| ShanghaiLuthai | 20,000,000.00 | 20,000,000.00 | |||
| LuThai(America) | 10,209,050.00 | 10,209,050.00 | |||
| VACL | 62,337,238.57 | 62,337,238.57 | |||
| ZJTextile | 409,118,889.90 | 409,118,889.90 | 0.00 | ||
| LulianNewMaterials | 300,000,000.00 | 300,000,000.00 | |||
| LujiaImport&Export | 10,000,000.00 | 10,000,000.00 | |||
| LuThaiOccupationalTrainingSchool | 100,000.00 | 100,000.00 | |||
| ShanghaiZhinuo | 5,000.00 | 5,000.00 | |||
| ZhishuConsulting | 2,000,000.00 | 2,000,000.00 | |||
| HuilinInternational | 859,967,290.00 | 431,000,000.00 | 1,290,967,290.00 | ||
| BanyangMountainVilla | 5,000,000.00 | 5,000,000.00 | |||
| YuanhuiFund | 200,000,000.00 | 200,000,000.00 | 400,000,000.00 | ||
| Total | 2,885,254,556.40 | 631,000,000.00 | 409,118,889.90 | 3,107,135,666.50 |
(2)Investmenttojointventuresandassociatedenterprises
Unit:RMB
| Investee | Beginningbalance(carryingvalue) | Increase/decrease | Endingbalance(carryingvalue) | Endingbalanceofdepreciationreserve | |||||||
| Additionalinvestment | Reducedinvestment | Gainsandlossesrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Changesofotherequity | Cashbonusorprofitsannouncedtoissue | Withdrawalofimpairmentprovision | Other | ||||
| I.Jointventures | |||||||||||
| II.Associatedenterprises | |||||||||||
| HaohongInvestment | 60,547,749.28 | 0.00 | 0.00 | -351,268.49 | 0.00 | 60,196,480.79 | |||||
| HaoyingInvestment | 123,620,876.41 | 0.00 | 0.00 | -981,880.37 | 0.00 | 122,638,996.04 | |||||
| Subtotal | 184,168,625.69 | 0.00 | -1,333,148.86 | 0.00 | 182,835,476.83 | ||||||
| Total | 184,168,625.69 | 0.00 | -1,333,148.86 | 0.00 | 182,835,476.83 | ||||||
4.OperatingRevenueandCostofSales
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod | ||
| Revenue | Cost | Revenue | Cost | |
| Principalbusiness | 1,487,391,745.52 | 1,187,994,259.75 | 1,923,502,455.26 | 1,403,671,534.86 |
| Others | 122,518,076.91 | 89,037,564.87 | 173,226,541.52 | 151,163,312.87 |
| Total | 1,609,909,822.43 | 1,277,031,824.62 | 2,096,728,996.78 | 1,554,834,847.73 |
Informationaboutperformanceobligations:NoneInformationinrelationtothetransactionpriceapportionedtotheresidualcontractperformanceobligation:
AsattheendoftheReportingPeriod,therevenueamountcorrespondingtothecontractperformanceobligationyettobefulfilledoryettobecompletedunderasignedcontractisRMB0.00,includingRMB0.00expectedtoberecognizedasrevenueintheyear,RMB0.00expectedtoberecognizedasrevenueintheyear,andRMB0.00expectedtoberecognizedasrevenueintheyear.
5.InvestmentIncome
Unit:RMB
| Item | Amountofthecurrentperiod | Amountofthepreviousperiod |
| Long-termequityinvestmentincomeaccountedbycostmethod | 167,571,836.72 | 219,600,542.74 |
| Long-termequityinvestmentincomeaccountedbyequitymethod | -1,333,148.86 | -1,076,939.49 |
| Investmentincomefromdisposaloflong-termequityinvestment | 22,374,515.10 | |
| Investmentincomefromdisposaloftradingfinancialassets | 31,150,766.58 | 1,682,000.00 |
| Total | 219,763,969.54 | 220,205,603.25 |
XVI.SupplementaryMaterials
1.ItemsandAmountsofNon-recurringProfitorLoss?Applicable□Notapplicable
Unit:RMB
| Item | Amount | Note |
| Gains/lossesfromthedisposalofnon-currentassets(inclusiveofimpairmentallowancewrite-offs) | -86,455.19 | |
| Governmentgrantsrecordedinthecurrentprofitorloss(exceptforthoseacquiredintheordinarycourseofcompany'sbusiness,inlinewithnationalpoliciesandregulations,orgrantedcontinuouslyaccordingtocertainstandardquotasoramounts) | 27,808,339.07 | |
| Gain/lossfromchangeoffairvalueoftradingfinancialassetsandliabilities,andinvestmentgainsfromdisposaloftradingfinancialassetsandliabilitiesaswellasfinancialassetsavailableforsale,otherthanvalidhedgingrelatedtotheCompany’scommonbusinesses | 5,660,105.05 |
| Reversalofprovisionforimpairmentofreceivablesseparatelytestedforimpairment | 2,281,937.13 | |
| Othernon-operatingincomeandexpenseotherthantheabove | 1,448,586.39 | |
| Less:Incometaxeffects | 6,932,483.87 | |
| Non-controllinginterestseffects | 341,892.37 | |
| Total | 29,838,136.21 | -- |
Detailsofotherprofitandlossitemsinlinewiththedefinitionofnon-recurringgainsandlosses:
□Applicable?NotapplicableTherearenootherprofitandlossitemsinlinewiththedefinitionofnon-recurringgainsandlossesintheCompany.Notetodefinethenon-recurringprofitandlossitemslistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—Non-recurringGainsandLossesasrecurringprofitandlossitems.
□Applicable?Notapplicable
2.ReturnonEquityandEarningsPerShare
| ProfitasofReportingPeriod | WeightedaverageROE(%) | EPS | |
| EPS-basic | EPS-diluted | ||
| NetprofitattributabletoordinaryshareholdersoftheCompany | 2.42% | 0.26 | 0.23 |
| NetprofitattributabletoordinaryshareholdersoftheCompanyafterdeductionofnon-recurringprofitorloss | 2.10% | 0.22 | 0.21 |
ChairmanoftheBoard:LiuZibin
LuThaiTextileCo.,Ltd.19August2023