InforeEnvironmentTechnologyGroupCo.,
Ltd.
2023AnnualReport
April2024
2023AnnualReport
PartIImportantNotice,TableofContentsandDefinitionsTheBoardofDirectors,theBoardofSupervisorsaswellasthedirectors,supervisorsandseniorofficersofInforeEnvironmentTechnologyGroupCo.,Ltd.warrantthattheinformationinthisreportcontainsnomisrepresentations,misleadingstatementsormaterialomissions,andjointlyandseverallyacceptliabilityforthetruthfulness,accuracyandcompletenessofinformationinthisreport.
MaGang,theCompany'slegalrepresentative,WangQingbo,theCompany'sprincipalofficerinchargeofaccounting,andWuShanshan,theprincipalofficeroftheCompany'saccountingdivision(headofaccounting)warrantthatthefinancialstatementscontainedinthisreportaretruthful,accurateandcomplete.AlldirectorsoftheCompanyattendedtheBoardmeetingtoreviewthisreport.
Anyforward-lookingstatementssuchasfutureplansmentionedinthisreportshallnotbeconsideredaspromisestoinvestors.Investorsareadvisedtopayattentiontopossibleinvestmentrisks.
TheBoardhasapprovedaproposalondividendplanasfollows:Basedonthetotalsharecapital(minussharesintheCompany'srepurchaseaccount)onthedateofrecordforthe2023finaldividendplan,acashdividendofRMB1.25(taxinclusive)per10shareswillbedistributedtotheshareholders,withnocapitalizationofthecapitalreservetosharecapital.
Contents
PartIImportantNotice,TableofContentsandDefinitions ...... 2
PartIICompanyProfileandPrincipalFinancialIndicators ...... 6
PartIIIManagementDiscussionandAnalysis ...... 12
PartIVCorporateGovernance ...... 42
PartVEnvironmentalandSocialResponsibility ...... 64
PartVISignificantEvents ...... 73
PartVIIShareChangesandShareholderInformation ...... 85
PartVIIIInformationonPreferenceShares ...... 93
PartIXInformationonBonds ...... 94
PartXFinancialReport ...... 97
DocumentsAvailableforReference(I)FinancialstatementswithsignaturesandsealsofthelegalrepresentativeoftheCompany,principalofficerinchargeofaccountingandprincipalofficeroftheaccountingdivision.(II)Originalauditreportwiththesealoftheaccountingfirm,andsignedandstampedbycertifiedpublicaccountants(CPAs).(III)OriginalsofallcorporatedocumentsandannouncementspubliclydisclosedonthewebsitedesignatedbytheCSRCduringthereportingperiod.
TheoriginalsandlegallyeffectivephotocopiesoftheaforesaiddocumentsareavailableattheCompanyandthestockexchangeforinspectionbyinvestors.
Definitions
| Term | means | Definition |
| Company,theCompany,InforeEnviro | means | InforeEnvironmentTechnologyGroupCo.,Ltd. |
| ZoomlionEnvironmental | means | ChangshaZoomlionEnvironmentalIndustryCo.,Ltd. |
| InforeTechnology | means | GuangdongInforeTechnologyCo.,Ltd. |
| GreenOrientalCompany | means | ShenzhenGreenOrientalEnvironmentalProtectionCo.,Ltd. |
| CSRC | means | ChinaSecuritiesRegulatoryCommission |
| SZSE | means | ShenzhenStockExchange |
| GeneralMeetingsofShareholders | means | GeneralMeetingsofShareholdersofInforeEnvironmentTechnologyGroupCo.,Ltd. |
| BoardofDirectors,theBoard | means | BoardofDirectorsofInforeEnvironmentTechnologyGroupCo.,Ltd. |
| BoardofSupervisors | means | BoardofSupervisorsofInforeEnvironmentTechnologyGroupCo.,Ltd. |
| CompanyLaw | means | CompanyLawofthePeople'sRepublicofChina |
| SecuritiesLaw | means | SecuritiesLawofthePeople'sRepublicofChina |
| ArticlesofAssociation | means | ArticlesofAssociationofInforeEnvironmentTechnologyGroupCo.,Ltd. |
PartIICompanyProfileandPrincipalFinancialIndicators
I.CompanyInformation
| Stockabbreviation | InforeEnviro | Stockcode | 000967 |
| Shareslistedon | ShenzhenStockExchange | ||
| Chinesename | 盈峰环境科技集团股份有限公司 | ||
| Chineseabbreviatedname | 盈峰环境科技集团 | ||
| Englishname(ifany) | InforeEnvironmentTechnologyGroupCo.,Ltd. | ||
| Legalrepresentative | MaGang | ||
| Registeredaddress | 1818RenminWestRoad,DongguanStreet,ShangyuDistrict,ShaoxingCity,ZhejiangProvince,China | ||
| Postalcode | 312300 | ||
| Historicalupdatestoregisteredaddress | OnFebruary29,2016,theCompanychangeditsregisteredaddressto1818RenminWestRoad,DongguanStreet,ShangyuDistrict,ShaoxingCity,ZhejiangProvince,China,fromShangpuTown,ShangyuCity,ZhejiangProvince. | ||
| Officeaddress | 23/F,InforeCenter,7-8YixingRoad,XinchengArea,BeijiaoTown,ShundeDistrict,FoshanCity,GuangdongProvince | ||
| Postalcode | 528300 | ||
| Companywebsite | www.inforeenviro.com | ||
| inforeenviro@infore.com | |||
II.ContactDetails
| BoardSecretary | SecuritiesRepresentative | |
| Name | JinTaotao | WangFei |
| Address | 23/F,InforeCenter,7-8YixingRoad,XinchengArea,BeijiaoTown,ShundeDistrict,FoshanCity,GuangdongProvince | 23/F,InforeCenter,7-8YixingRoad,XinchengArea,BeijiaoTown,ShundeDistrict,FoshanCity,GuangdongProvince |
| Telephone | 0757-26335291 | 0757-26335291 |
| Fax | 0757-26330783 | 0757-26330783 |
| wangyf@infore.com | wangyf@infore.com |
III.InformationDisclosureandAccess
| Stockexchangewebsiteonwhichthereportispublished | ShenzhenStockExchange:http://www.szse.cn/ |
| Publicationsandwebsitesonwhichthereportispublished | ChinaSecuritiesJournal,SecuritiesTimes,SecuritiesDaily,ShanghaiSecuritiesJournal,andCninfo(http://www.cninfo.com.cn/) |
| Placewherethereportislodged | SecuritiesDepartment,23/F,InforeCenter,7-8YixingRoad,XinchengArea,BeijiaoTown,ShundeDistrict,FoshanCity |
IV.ChangestoRegisteredInformation
| UnifiedSocialCreditCode | 913300006096799222 |
| ChangestotheCompany'sprincipalactivitiessinceitslisting(ifany) | Sinceitwentpublicin2000,theCompanyhaschangeditsbusinessscopefivetimes.ScopeofbusinessasatNovember18,1993:theresearch,developmentandproductionofventilators,air-coolingandwater-coolingequipment,airconditioners,refrigerators,quick-freezingequipment,moldsandpowergenerators.Export(refertothedocumentsofapprovalfromtheMinistryofForeignTradeandEconomicCooperationfordetails);OnJuly2,2002,thescopeofbusinessexpandedtoinclude"metalandplastic-steelcompositepipesandprofiles".OnNovember14,2003,thescopeofbusinessexpandedtoinclude"environmentalengineering".OnFebruary29,2016,astrategictransformationledtoanexpansionoftheCompany'sscopeofbusinessto:R&D,maintenance,andoperationservicesofenvironmentalmonitoringinstruments,development,consulting,andservicesofenvironmentalmanagementtechnologies,operationservicesofenvironmentalmanagementfacilities;designandconstructionofenvironmentalengineering,environmentalengineering,municipalengineering,andwaterconservancyandotherwater-relatedprojects,technologicaldevelopmentandservicesforwaterpollutioncontrol,watertreatment,andecologicalrestoration;R&D,sales,andtechnicalconsultingservicesofcommunicationproducts,networkproducts,mechatronicproducts,automaticcontrolproducts,intelligentbuildingandcommunityproducts,aswellassoftwareproducts;design,development,investment,operationmanagement,andtechnicalconsultingservicesofrelevantsupportingfacilitiesforthedisposalandrecycleofmunicipalwasteandsolidwaste;salesofventilatorsandair-cooled,water-cooled,andairconditioningequipment;operationofimportandexportbusinesses;industrialinvestment,investmentmanagement,assetmanagement,andinvestmentconsultation;OnMay18,2016,"investment,theoperationofimportandexportbusiness,industrialinvestment,investmentmanagementandassetmanagement"wereremovedfromtheCompany'sscopeofbusiness.OnJune28,2019,theCompany'sscopeofbusinesswasupdatedto:R&D,manufacturing,sales,technicalconsultation,maintenanceandoperationservicesofsanitationequipment,specialoperationrobots,newenergyvehicles(NEV),environmentalmonitoringequipment,specialequipmentforenvironmentalprotection,carchargingequipmentandparts;equipmentleasing;design,operationsmanagement,technologicaldevelopmentandtechnicalservicesofsupportingfacilitiesrelatingtodisposalandrecyclingofmunicipalgarbageandsolidwaste;design,construction,operationsmanagement,technologicaldevelopment,technicalservicesofenvironmentalengineering,municipalengineering,gardenengineering,electricpowerengineering,waterconservancyengineering,waterpollutiontreatmentengineering,airpollutiontreatmentengineering,andsoilremediationengineering;operationalcleaning,collection,transportationandtreatmentservicesofurbanhouseholdgarbage(operatingwithlicense);development,technicalconsultationandtechnicalservicesofenvironmentalprotection,IoTandInternettechnologies;softwaredevelopmentandsales;salesofventilators,aircooling,watercoolingandairconditioningequipment;importandexportbusinessandinvestmentconsultation. |
| ChangestotheCompany'scontrollingshareholderssinceitsincorporation(ifany) | 1.In2000,theCompanywentpublic,anditslargestshareholderwasZhejiangFan&Air-cooledEquipmentCo.,Ltd.2.OnFebruary23,2006,theformercontrollingshareholderoftheCompany,ZhejiangShangfengIndustryGroupCo.,Ltd.,andtheCompany'sshareholder,MideaGroupCo.,Ltd.,transferredtheirrespectivestocksof9,575,027sharesand24,897,984sharestoGuangdongInforeGroupCo.,Ltd.GuangdongInforeGroupCo.,Ltd.becametheCompany'slargestshareholder.3.OnAugust5,2008,theCompany'scontrollingshareholder,GuangdongInforeGroupCo.,Ltd.changeditsnameto"GuangdongInforeHoldingInvestmentGroupCo.,Ltd."4.OnSeptember30,2010,GuangdongInforeHoldingInvestmentGroupCo.,Ltd.changeditsnameto"InforeHoldingInvestmentGroupCo.,Ltd."ThelatterbecametheCompany'scontrollingshareholder.5.OnJanuary4,2019,theprivateplacementofnewsharesforthepurchaseofnewassetswasmade,andtheCompanyissued1,017,997,382sharestoNingboInforeAssetManagementCo.,Ltd.toacquireits51%equityinterestinZoomlionEnvironmental.NingboInforeAssetManagementCo.,Ltd.becametheCompany'slargestshareholder.Asattheendofthereportingperiod,theCompany'scontrollingshareholderwasNingboInforeAssetManagementCo.,Ltd. |
V.OtherRelevantInformationTheaccountingfirmengagedbytheCompany
| Nameofaccountingfirm | Pan-ChinaCertifiedPublicAccountantsLLP(SpecialGeneralPartnership) |
| Officeaddressofaccountingfirm | 27/F,Run'aoBusinessCenter(T2),QianjiangCenturyCBD,XiaoshanDistrict,HangzhouCity,ZhejiangProvince |
| Authorizedsignatories | BianShanshan,andWeiXiaohui |
ThesponsorengagedbytheCompanytoexerciseconstantsupervisionovertheCompanyduringthereportingperiod?Applicable□Notapplicable
| Sponsor | Sponsor'sofficeaddress | Representative | Supervisoryperiod |
| HuaxingSecuritiesCo.,Ltd. | HuaxingSecurities,2301,RafflesCityTheBundEastTower,No.1089DongdamingRoad,HongkouDistrict,Shanghai | LiZeming,ZhengZaoshun | 2023 |
ThefinancialadvisorengagedbytheCompanytoexerciseconstantsupervisionovertheCompanyduringthereportingperiod
□Applicable?NotApplicableVI.MajorAccountingDataandFinancialIndicatorsWhethertheCompanyneedstoretrospectivelyadjustorrestateaccountingdatainpreviousyears
□Yes?No
| 2023 | 2022 | YoYchange | 2021 | |
| Operatingrevenue(RMB) | 12,631,050,967.34 | 12,255,992,938.42 | 3.06% | 11,866,291,611.45 |
| Netprofitattributabletothelistedcompany'sshareholders(RMB) | 498,383,730.00 | 418,794,179.13 | 19.00% | 752,792,198.66 |
| Netprofitattributabletothelistedcompany'sshareholdersafternon-recurringgainsandlosses(RMB) | 444,753,430.22 | 324,753,411.18 | 36.95% | 557,050,456.60 |
| Netcashflowsfromoperatingactivities(RMB) | 1,385,556,509.49 | 1,662,482,287.71 | -16.66% | 809,218,720.13 |
| Basicearningspershare(RMB/share) | 0.16 | 0.13 | 23.08% | 0.24 |
| Dilutedearningspershare(RMB/share) | 0.16 | 0.13 | 23.08% | 0.24 |
| Weightedaveragereturnonequity | 2.88% | 2.41% | 0.47% | 4.51% |
| December31,2023 | December31,2022 | YoYchange | December31,2021 | |
| Totalassets(RMB) | 29,048,201,560.36 | 29,271,291,859.98 | -0.76% | 28,362,883,652.30 |
| Netassetsattributabletothelistedcompany'sshareholders(RMB) | 17,437,509,156.73 | 17,288,602,018.09 | 0.86% | 16,927,565,990.33 |
Thelowerofnetprofitbeforeandafternon-recurringgainsandlossesisnegativeforthemostrecentthreefiscalyears,andthelatestauditor'sreportshowsthereisuncertaintyastotheCompany'sabilitytocontinueasagoingconcern.
□Yes?NoThelowerofnetprofitbeforeandafternon-recurringgainsandlossesisnegative.
□Yes?NoVII.AccountingDataDifferencesArisingfromDomestic/OverseasAccountingStandards
1.DifferencesinnetprofitandnetassetsunderChineseAccountingStandardsandInternationalAccountingStandards
□Applicable?NotApplicableNosuchdifferencesduringthereportingperiod.
2.DifferencesinnetprofitandnetassetsunderChineseAccountingStandardsandOverseasAccountingStandards
□Applicable?NotApplicableNosuchdifferencesduringthereportingperiod.
VIII.QuarterlyKeyFinancialIndicators
Unit:RMB
| Q1 | Q2 | Q3 | Q4 | |
| Operatingrevenue | 2,671,198,594.33 | 3,461,432,009.54 | 2,857,777,560.35 | 3,640,642,803.12 |
| Netprofitattributabletothelistedcompany'sshareholders | 156,375,931.23 | 216,592,838.32 | 230,043,358.95 | -104,628,398.50 |
| Netprofitattributabletothelistedcompany'sshareholdersafternon-recurringgainsandlosses | 132,592,018.43 | 194,972,218.23 | 216,119,614.54 | -98,930,420.98 |
| Netcashflowsfromoperatingactivities | -372,981,710.55 | 482,209,744.40 | 213,560,033.15 | 1,062,768,442.49 |
WhetherthefinancialindicatorsaboveortheirsumsdiffermateriallyfromthoseintheCompany'sdisclosedquarterlyandinterimreports
□Yes?No
IX.Non-recurringGainsandLossesItemsandAmounts
?Applicable□Notapplicable
Unit:RMB
| Item | Amountin2023 | 2022 | 2021 | Note |
| Gainorlossforthedisposalofnon-currentassets(inclusiveofprovisionstowriteoffimpairedassets) | -4,146,549.53 | -2,289,681.16 | 6,337,251.97 | - |
| Governmentsubsidiesrecognizedasgainorlossduringthereportingperiod(exclusiveofgovernmentsubsidiesgivenintheCompany'sordinarycourseofbusinessbasedontheestablishedcriteriaandhavingacontinuousimpactontheCompany'sgainorlossasperthegovernmentpoliciesorregulations) | 52,966,550.75 | 80,268,041.82 | 55,341,877.03 | - |
| Gainorlossarisingfromchangesinfairvalueoffinancialassetsandfinancialliabilitiesheldbynon-financialenterprisesaswellasfromthedisposaloffinancialassetsandfinancialliabilities(exclusiveofeffectivehedgesthatariseinrelationtotheCompany'sordinarybusinessoperations) | - | 0.00 | -79,222,823.84 | - |
| Capitalcollectedfromnon-financialenterprisesthatwasrecognizedasgainorlossduringthereportingperiod | 52,623.28 | 1,280,730.46 | 3,173,551.55 | |
| Gainorlossonentrustingotherpartieswithinvestmentorassetmanagement | 12,111,406.99 | 19,091,108.25 | 29,170,261.66 | Incomefromwealthmanagementproducts:RMB12,111,406.99. |
| Reversalofprovisionsforimpairedreceivablesthathavebeenindividuallytestedforimpairment | 484,240.00 | - | - | - |
| Gain/lossondebtrestructuring | -3,130,560.92 | -5,380,200.00 | - | - |
| Operatingrevenueandexpensesotherthantheaboveitems | 9,532,774.64 | 2,164,235.04 | 2,598,028.75 | - |
| Othergainsandlossesthatfallintothedefinitionofnon-recurringgainsandlosses | - | 19,785,940.63 | 172,459,718.81 | - |
| Taxrebates,reductions | - | 1,004,379.44 | 3,768,945.18 | - |
| andexemptionsgrantedultraviresorwithoutofficialdocumentsofapproval | ||||
| Less:Incometax | 11,730,712.09 | 22,153,064.81 | -8,007,245.43 | - |
| Minorityinterestaffected(aftertax) | 2,509,473.34 | -269,278.28 | 5,892,314.48 | - |
| Total | 53,630,299.78 | 94,040,767.95 | 195,741,742.06 | -- |
Detailsonothergainsandlossesthatfallintothedefinitionofnon-recurringgain/loss:
□Applicable?NotApplicableNosuchcasesduringthereportingperiod.Explanationofclassificationofnon-recurringgainsandlosseslistedintheExplanatoryAnnouncementNo.1onInformationDisclosurebyCompaniesOfferingSecuritiestothePublic—Non-recurringGainsandLossesasrecurringgainsandlosses
□Applicable?NotApplicableNosuchcasesduringthereportingperiod.
PartIIIManagementDiscussionandAnalysisI.IndustryPerformanceDuringReportingPeriod
1.IndustryoverviewInforeEnviroisaleadinginvestorandoperatorinthesmarturbanserviceindustry,primarilyengagingintwoareas:urbancleaningservicesandenvironmentalprotectionequipment.Urbancleaningservicesrefertothecomprehensiveactivitiesofcollecting,comprehensivelytreatingandrecyclingdomesticandindustrialwaste,andmanagingrelatedsocialactivitiestominimizetheenvironmentalimpactofurbanwasteandensureacleanandhygienicworkingandlivingenvironmentforcitydwellers.Specifically,theseservicesincludecleaning,maintenanceandwateringofurbanroads,squares,andotherpublicspaces;collectingandtransportingdomesticwastefromresidentialareasandpublicspaces;construction,maintenance,andserviceofsanitationfacilitiessuchaspublictoilets,wastebins,andgarbagetransferstations;terminalharmlesstreatmentofurbanwasteandspecialwaste;planning,construction,andmaintenanceofurbanlandscapesandgreenspaces.
2.Developmenttrends2023markedthebeginningoffullimplementationoftheguidingprinciplesofthe20thCPCNationalCongress,andwasacrucialyearforimplementingChina's14thFive-YearPlan.Theurbanservicemarketmaintainedrobustmomentumthankstothesanitationmarketizationreformandthe"urbansteward"model.Drivenbypolicyincentives,demandforenvironmentalprotectionequipmentremainedhigh,indicatingapositiveoutlookoverthelongterm.However,themarketexperiencedacontinueddeclinefromthepreviousyearduetomacroeconomicchallenges,declineingovernment'sfiscalpaymentcapacity,anddownturnincustomers'budgets.
Increaseinannualamountandtotalamountofurbanservicescontractsinthepasteightyears:
Totalsalesofenvironmentalprotectionequipment,andsalesofpure-electricenvironmentalprotectionequipmentinthepasteightyears:
Urbanserviceisanessentialitemofgovernmentspending,asitiscloselyrelatedtopeople'slivelihoods.Thesector'slong-term
growthisnotentirelyconnectedwithshort-termeconomicvolatility,anditistiedwithlong-termeconomictrends,policydirectives,environmentalrequirements,andpeople'slivingstandards,withoutnotableseasonalandregionalfeatures.Astheexistingsanitationequipmentgraduallyentersareplacementcycleandthesupportivepoliciesfornewenergyincreasein2024,thenewenergysanitationmarketinChinawillreachaneconomicinflectionpoint.Withtheintroductionoffranchisemanagementmeasuresandsupportivepolicies,thesanitationfranchisemarketwillfullyexpand.Itisexpectedthattheoverallgrowthtrendofthesanitationindustrywillremainunchanged.
3.Developmentpriorities
(1)Comprehensiveadoptionofnewenergy-poweredandsmartenvironmentalprotectionequipmentAsChinaadvancesecologicalconstruction,achievingcarbonpeakandneutralityhasbeenincludedinthenationalplanforecologicalendeavors.Againstthisbackdrop,moreandmorecitiesarelaunchinglarge-scaleinitiativestotransitiontheirenvironmentalprotectionequipmenttowardnewenergysources,particularlytheincreasedadoptionoflow-noiseandless-emissionsnewenergy-poweredsanitationvehicles.Thepenetrationrateofnewenergysolutionsintheenvironmentalprotectionequipmentsectorreached8.4%in2023.Asthemarketscalesupandcostsdecrease,thelife-cyclecostofnewenergysanitationvehicleshasbecomesignificantlylowerthanthatofoil-poweredvehicles.Thissignifiesthatthecomprehensivetransitionofenvironmentalprotectionequipmenttonewenergysourcesisenteringaphaseofrapidacceleration.
Thetraditionalsanitationindustryischaracterizedbyitslabor-intensivenature.Withtheagingpopulationandthechangingcareerpreferencesofyoungergenerations,labordemandisskyrocketing,andlaborcostsremainhigh.Thishasgivenrisetothedevelopmentofsmartenvironmentalprotectionequipment.Sanitationcleaningandmaintenanceisalow-growthareaofapplication,andthetechnologyisrelativelymatureandhasbeguntoshoweconomicviability.Currentautonomoussanitationvehiclescanreplacecertainhumanoperationsonclosedandsemi-closedroads.Theycanautomaticallyperformscheduledcleaningtasksduringoff-peakhoursoftrafficinparksandotherareas.Managerscanremotelymonitorthestatusoftherobotsinrealtime.Thissignificantlyreducestheworkloadofsanitationworkers,andminimizestheirexposuretoharshworkingenvironmentwhilereducingmanagementcostsandalleviatinglaborshortages.Asasignificantpartoftheoptimizationofurbanmanagementmodels,thefutureofurban/ruralservicesisincreasinglysteeredtowardsonethatissmart,andrequireslessorevennohumanlabor,signifyingavastdevelopmentspaceandapplicationprospectsinthissector.
(2)SmarturbanservicesAsurbanizationaccelerates,thegradualtransitionfromtraditional"sanitationintegration"toasmarter,moreprecise,andmoreefficient"urbansteward"modelhasbecomeaconsensusinthenewroundofurbanservicereform.Traditionalsanitationmanagementmodelscannolongermeetthedemandformodernurbandevelopment.Theemergenceofsmarturbanservicesoffersasolutionforsustainableurbandevelopment.ByleveragingInternetofThings(IoT)andmobileInternet,smarturbanservicesenablefull-processandreal-timemonitoringofallenvironmentalsanitationservicepersonnel,vehicles,objects,andevents,assistinrationallydesigningsanitationmanagementmodels,boostingoperatingquality,reducingoperatingcosts,andmakingsanitationmanagementeffectivethroughstatisticaldataandassessments.AllsmarturbanservicesaredeployedontheSmartUrbanManagementCloudandconnectedtotheSmartCityNetwork,andareprovidedtomanagersandworkersinacloud-basedmanneranytime.Astechnologycontinuestoadvanceandapplicationscontinuetoexpand,smarturbanserviceswillplayamoreimportantroleinthefuture,drivingcitiestowardsagreener,lower-carbon,andmoresustainablefuture.
Drawingonitsinsightsintothecurrentstateoftheenvironmentalprotectionindustry,InforeEnvirobeganitsforayintothefieldofurbanstewardshipin2021withaforward-lookingperspective.Incorporatingsophisticatedtechnologiesin"intelligentequipment,smartservices,andSmartSanitationCloudPlatform",InforeEnvirohascreatedan"InforeMode"encompassing"fullseriesofintelligentequipment+full-scenariosmarturbanservices".TheCompany's5Gintelligentcleaningrobotscanworkthroughhuman-machinecollaborationandautodriving,andhavestrongcleaningcapabilities.Theycancompletehigh-precisionautomatedcleaningtasks,basedonreal-timepositioning,autonomousnavigation,obstacleavoidanceanddetour,andautonomoussafeoperation,oncomplexoutdoorroadsandunderdynamicallychangingscenarios.IncollaborationwiththenewdigitalandintelligentmanagementmodelandtheremotemonitoringandmanagementmodeloftheSmartSanitationCloudPlatform,theyarecapableof24/7,all-round,
seamless,precise,andefficientoperation,maintenance,supervision,andmanagementofservicepersonnel,vehicles,objects,andevents.Ontopofthesestrengths,theCompanyprovidescustomerswithtailoredsmartsolutionstourbanservicesincluding"smartsupervision,smartoperation,smartservice",aswellasanewmodelfeaturing"management+service+operation"forthewholeprocessofurbanpublicspace,publicresources,andpublicprojects,whichenablesrealtransitionfrommanagementtoservice,andfromgovernancetooperation,tomeettheneedsforrefinedurbanmanagement.
Foradetailedanalysisontheindustry,pleaserefertoDiscussionandAnalysisontheFutureDevelopmentoftheCompany.II.PrincipalBusinessDuringtheReportingPeriod
1.PrincipalactivitiesIntermsofurbanservicebusiness,InforeEnvirohascreatedan"InforeMode"encompassing"fullseriesofintelligentequipment+full-scenariosmarturbanservices"byincorporatingsophisticatedtechnologiesin"intelligentequipment,smartservices,andSmartSanitationCloudPlatform".Theservicesrangefromroadcleaningandmaintenance,snowandiceremoval,wastecollectionandtransportation,wastesorting,municipalinfrastructuremaintenance,urbanlandscaping,waterareacleaningtomarinesanitation.TheCompanyalsoofferscustomersone-stopservicesincludingplanning,design,investment,construction,andoperationofenvironmentalsanitationprojects.Intermsofbusinessscope,theCompanyimplementsan"urbansteward+sanitationintegration"dualstrategy.Regardingbusinessmodel,theCompanypursuesdiversificationthrough"governmentprocurement","franchising",and"equitycooperation".Assuch,ithasconsistentlymaintaineditsindustry-leadingpositioninthelong-cycleurbanservicemarket.
In2023,theCompanyrankedNo.2forincreaseinannualamountofurbanservicecontracts,andrankedNo.3fortotalamountofurbanservicecontracts.TheCompanyrankedNo.1intermsofsalesofenvironmentalprotectionequipmentin2023forthe23rdconsecutiveyearinChina.
2.Principalproducts
Intermsofintelligentequipment,leveragingitsleadingpositionintheenvironmentalprotectionequipmentindustry,strongR&Dandmanufacturingcapabilitiesandawell-establishednationwidesalesnetwork,theCompanyforgedamostcomprehensivesuiteofenvironmentalprotectionequipmentofover400modelswithintheindustry,providingcustomerswithawiderangeofsolutionsincludingvarioussanitationandcleaningequipment,wastecollectionandtransportationequipment,andnewandcleanenergyenvironmentalprotectionequipment.TheCompany'srangeofproductsspansfromcleaningandmaintenanceequipment,wastecollectionandtransportationequipment,wastecompressionstationequipment,kitchenfoodwasterecyclingequipment,municipalandlandscapingequipment,toemergencysnowandiceremovalequipment.AnindustryleaderinintelligentequipmentR&D,theCompanydeveloped5Gintelligentcleaningrobots,autonomoussanitationvehicles,smallsmartcleaningrobots,smartenergystorageequipmentforindustrialandcommercialuse,etc.
SmartSanitationCloudPlatformisabigdatasmarturbanservicecloudplatformdevelopedin-houseandapioneeringplatforminChina'ssanitationindustrythatencompassesthefullindustrialchain.Theplatform,withaninvestmentofnearlyRMB200million,supportedbyover25smarturbanservice-relatedcopyrightedsoftwareandpatentsandintegrating5G,AI,bigdata,cloudcomputing,edgecomputingandotheradvancedtechnologiestoformanimmersiveframeworkanddevelopcoretechnologiessuchasintegratedIoTapplications,datacommunication,videocommandandcontrol,safedrivingtests,IoTsoftwareandhardwarecompatibletechnologiesandbigdataapplications.Throughtheplatform,theCompanycanmonitorallenvironmentalsanitationservicepersonnel,vehicles,objects,andeventsonareal-timebasis.TheCompanyhasdesignedrobustsanitationmanagementmodelstoboostoperatingquality,reduceoperatingcosts,andmakesanitationmanagementeffectivethroughstatisticaldataandassessments.Atpresent,theplatformisprovidingintelligentservicesformorethan80,000productsofcustomersacrossChina,withover40,000dailyactiveusers.Inthefuture,theCompanywillcontinuetoapplydigitaltechnologiesandcreateinnovativeintelligentequipmentandsmartservices.Moreover,throughin-depthintegrationintosmartcitydevelopment,itwillcontinuouslyboosttheapplicationofsmartcorporatecloudplatformstobecomealeaderandenablerinthedigitaltransformationoftheenvironmentalsanitationsectorbydintofintelligence.
Intermsofsmartservices,theCompany's"EnvironmentalSanitationAPP"enablesremotemonitoring,datacollectionandproceduralapprovalforitsline-upofsmartequipmentandproductsduringoperations.Throughvisualizedoperationaldataandautomaticbusinessanalysis,theSmartSanitationCloudPlatformiscapableofdigitalizedequipmentmanagement,sophisticatedprocessmanagement,andquantifiedmaterialsmanagement.Thisdrivesadigitalized,intelligent,IT-based,andintegratedmanagementapproachthroughouttheentiresanitationprocess.
3.Technologyaccumulationandinnovation
(1)CumulativeR&Dcapabilities
InforeEnviro'sR&Dteamofenvironmentalprotectionequipmentcomprisesexpertsfromnationalresearchinstitutions,whohavealongtrackrecordinscientificresearch.BasedonChina'sstatusofenvironmentalgovernance,theCompanyhasbuiltthemostcomprehensiveenvironmentalindustrysysteminChina,providingcustomerswithcompletesetsofequipmentandsolutionsforroadcleaningandmaintenance,solidwastecollectionandtransportation,municipalemergencyrescue,landscapingandmaintenance,snowandiceremoval,kitchenfoodwastetreatment,environmentalgovernanceandwatertreatment.TheCompany'sadvancedtechnologiesinenvironmentalprotectionequipmentpoweredbynewenergyandhydrogenenergyareattheforefrontoftheindustry.TheCompanyowns1,155patents,including599utilitypatents,447utilitymodelpatents,and109designpatents.Itleadstheindustryintermsofthenumberoftechnicalandutilitypatents.Manynational,industry,andlocalstandardshavebeenmadeunderthedirectionofInforeEnviro.Withprovincialresearchcenters,theCompanyhasbeenrecognizedasaNationalIntellectualPropertyModelEnterprise,andaNationalIntellectualPropertyCompetitiveEnterpriseandreceivednumerousawards,includingtheChinaPatentExcellenceAward,ChinaMachineryIndustryScienceandTechnologyAward,HunanProvincialScienceandTechnologyProgressAward,andHuaxiaConstructionScienceandTechnologyAward.Ithasobtainedthefirstautonomousdrivetestlicenseinsanitation.Furthermore,theCompanywasidentifiedbytheMinistryofIndustryandInformationTechnology(MIIT)asaleadingenterprisewithkeytasksinnew-generationAIindustryinnovation,makingitatopplayerinChina'sAIdomainandamemberofthe"nationalteam"ofintelligentcleaningrobotinnovators.
Duringthereportingperiod,theCompanyinvestedRMB353millioninR&Dforcontinuousimprovementandinnovationinproducttech,with353patentapplications,including95utilitypatents,197utilitymodelpatents,and61designpatents.IthasmaderemarkableR&Dresultsandisleadingtheindustryinthisregard.
(2)Innovationofcloudplatform
SmartSanitationCloudPlatformisabigdatasmartcloudplatformthatwasdevelopedin-housebytheCompany.Byintegratingadvancedunderlyingtechnologiessuchasbigdata,cloudcomputing,IoT,mobileInternetandAIintotheplatform,theCompanydevelopedcoretechnologiessuchasintegratedIoTapplications,datacommunication,videocommandanddispatch,safedrivingtests,IoTsoftwareandhardwarecompatibletechnologiesandbigdataapplications.Theseamlessintegrationofenvironmentalprotectionequipmentandoperationsallowstheplatformtoachievereal-timeconnectivitybetweenurbanservicepersonnel,vehicles,objects,andeventsaswellasstandardized,digitalizedandsmartoperationandmanagement.TheCompanyestablishedadigitaloperationandmanagementsystemforsmartservices,which,throughsmartandsafeoperationthatrequireslesshumanlaborandenergyconsumption,enablesittodevelopcompetitiveadvantageswithsmartservices.
Theplatformissupportedbyover20urbanservice-relatedsoftwarecopyrightsandpatentsandhaswonaccoladessuchastheMIIT's2019PilotDemonstrationoftheIntegrationofKeyIndustriesandtheInternet,2021OutstandingCasesofMobileIoT,2021ExcellentIndustrialAppofHunan,2022Changsha'sKeyR&DProject?GarbageClassificationCollectionandTransportationSystemBasedonImageRecognitionandCNNDeepLearningAlgorithm,and2022ChangshaTorchPlanforIntelligentVehicleIndustryEcosystem.Theplatformhasprovidedsmartservicestoover80,000productsofcustomers.
(3)Leaderinnewenergy
Pioneeringthedevelopmentofnewenergyinthesanitationindustry,theCompanyoffersthemostcomprehensiveportfolioofnewenergyproductsintheindustry.InforeEnvirostartedtheresearchanddevelopmentofnewenergy-poweredenvironmentalprotectionequipmentin2007andsuccessfullydevelopedthefirstpure-electricsweepertruckinChinainJuly2008.TheCompanywastaskedwiththecleaningandsanitationofthestreetsduringthe2008BeijingOlympics.OverthreedecadesofsustainedR&DinsanitationvehiclesandoveradecadeofhardworkhaveledInforeEnvirointodevelopingover40typesofnewenergyvehicles(NEV)forcleaning,washing,wastecollectionandurbansanitation.TheCompany'snearly200vehiclemodelsformthemostcomprehensivesuiteofnewenergy-poweredsanitationvehiclesinChina.TheCompanylauncheditsfifthgenerationofnewenergy-poweredenvironmentalprotectionequipment,astheindustry'smostcomprehensiverangeofproducts,includingover100varietiesthatcoverroadsweepingandwashing,garbagetransportation,urbanlandscape,solarpowercleaning,andmobilecharging.Additionally,itunveiledtheindustry'sfirstdomaincontrollerplatformtofullyintegratethechassis-controlsystemofthechassisandupperinstallation,withplatformizedhardware,integratedsoftware,modularfunctionalityandscene-basedproducts.TheCompany
hasreducedsystemcostsby9%whileincreasingsystemperformanceby15%,leadingtheinnovativedevelopmentofnewenergysanitation.Thishelpscustomerslowerpurchasingandoperatingcosts.TheCompanysold1,974pure-electricpoweredsanitationvehiclesin2023,withamarketshareof32.4%,rankingNo.1intheindustry,accordingtothemotorvehicleaccidentliabilityinsurancedatareleasedbytheNationalFinancialRegulatoryAdministration.
(4)PioneerinintelligentcleaningrobotsTheCompanyhasindependentlydevelopedover10modelsofintelligentcleaningrobots(bothbasicand5Gsmartmodelsareavailable)andoffersthemostcomprehensivesuiteofcutting-edgeintelligentcleaningrobotsinthemarket.Theentireseriesofproductsareintegratedwithcoretechnologiessuchasgreennewenergy,5G+AIOTclustercontrol,AI,machinevision,360-degreeimagerecognitionandareequippedwithsensorssuchaslaserradar,ultrasonicradar,highprecisiondifferentialGPS,360-degreecameras,allowingforsmartoperationsandsmartnavigationofintelligentcleaningrobotsaswellaspavingthewayforamorediverseoperationalcapacityinawiderangeoflocationsandscenarios.TheCompany'sfirst"5GCloud+IntelligentCleaningRobot"isasmartremoteclustermodelofoperationthatredefineshowsanitationiscarriedout.Byraisingthestandardsofdigitalizationandefficiencyintheindustrydrasticallyandreducingsafetyriskstosanitationpersonnelaswellaslaborcosts,thenewmodelofoperationpresentsremarkableeconomicandsocialbenefitsforthecommunityandeconomy.
TheCompany's5GintelligentcleaningrobotcrewhasbeendeployedinShenzhen,ChangshaandSuzhou.ThecrewhasbecomeanewbenchmarkforsmarturbanservicesandhasbeenrepeatedlyrecognizedbygovernmentagenciesandotherassociationsasamodelfortechnologicalinnovationthatbreathesnewlifeintothetraditionalsanitationindustrywithAI.The5Gsmartsanitationrobotcrewdigitalizesandinformatizesurbansanitation,raisesthecapabilitiesforandstandardsofinformatizationinthesanitationindustryandimprovesthestandardsofsophisticatedmanagementofurbanpublicservices,creatingabetterlivingenvironmentforthepeople.
OtherbusinessesoftheCompanyprimarilyincludeenvironmentalmonitoring,solidwastetreatment,andventilatorequipmentmanufacturing.
TheCompany'senvironmentalmonitoringbusinesscoversthemonitoringofsmoke,airquality,haze,waterquality,waterconservation,soilanddustandtheprovisionofanintegratedone-stopserviceforenvironmentalprotection,waterconservation,watersupplyandsmartcities.Productsalesarethemainbusinessoperations,supplementedbytheprovisionofservicesforoperationandmaintenance.
TheCompany'ssolidwastedisposalbusinessprimarilyencompassestheincinerationofdomesticwastetogenerateenergy,thelandfillingofdomesticwaste,therecyclingoffoodwasteandtheutilizationofsolidwasteinindustrialparks.Withwaste-to-energyprojectsasthecore,theindustrialparksofsolidwasterecyclingareequippedwithtreatmentfacilitiesfordomesticwastedisposal,hazardouswastedisposal,sludgetreatment,foodwastetreatment,sewagetreatment,constructionwastewatertreatment,ecologicalrestorationoflandfills,leachatetreatmentandflyashdisposal.Theiroperatingmodelispublic-privatepartnership(PPP).TheCompany'sventilationmachinerymanufacturingcoversventilators,mufflers,dampers,refrigerators,magneticlevitationfans,blowersandnuclear-gradedampersfornuclearpower,subways,tunnels,railtransportation,industrialandcivilconstructionandotherareas.Itsfansaremainlysoldviaacombinationofdirectsalesandretailers.
III.AnalysisofCoreCompetitiveness
1.Industryleaderinsanitationequipment
TheCompanysold1,974pure-electricpoweredsanitationvehiclesin2023,withamarketshareof32.4%,rankingNo.1intheindustry,accordingtothemotorvehicleaccidentliabilityinsurancedatareleasedbytheNationalFinancialRegulatoryAdministration.AsaleaderinChina'ssanitationequipmentsector,rankingNo.1intermsofsalesofsanitationequipmentforthe23rdconsecutiveyear,theCompanyownsstate-of-the-arttechnologiesandoffersthemostcomprehensiverangeofenvironmentalprotectionequipment.IntermsofR&D,theCompanyhasmasteredindustry-leadingtechnologiesinnewenergy-poweredenvironmentalprotectionequipment,intelligentcleaningrobotsandautonomousenvironmentalsanitationvehicles,andobtainedthe
firstdrivetestlicenseinenvironmentalsanitationfromthegovernment.TheCompanydevelopedtheworld'sfirstintelligentcleaningrobotcrewandsuccessfullydeployedthecrewinOrangeIsle,a5AlevelnationalscenicspotinChangshaCity,HunanProvince.TheCompany's5GautonomousintelligentcleaningrobotcrewhasalsobeendeployedinthecollegetowninChangsha.TheCompanyhasdevelopedacomprehensivesuiteofenvironmentalprotectionequipmentthatspansover400modelsandallowstheCompanytomeetthediversesanitationdemandacrossthecountry.Asoneofthepioneersinenvironmentalprotectionequipment,theCompanydevelopedthefirstwetanddryvacuumsweepertruck,thefirstfullyhydraulicminiroadsweeper,thefirsttunnelroadwasher,thefirstpure-electricroadsweeperandthefirstnaturalgas-poweredroadwasherinChina.TheCompanyhasextensiveprovenexperienceintheenvironmentalsanitationindustryandbecomethemostinfluentialbrandintheindustry.
2.Fast-growingurbanserviceswithstandardizedmanagementTheCompanyestablishedanewsanitationecosystemwithitsoperationalmodelof"mechanizedproduction+smartoperation+standardizedservice".Withitsnewoperationalmodel,theCompanyaimsforthecentralizedmanagementofservicesandplanning,visualmonitoringoftheentireprocessofsanitation,swiftresponsetoemergenciesandclosed-loopmanagement.Withsmartanalysisperformedonalldataandimprovementstomanagementandcontrolsthatarebasedonevidenceandrigorousscience,theCompanystrivestostandardizeservices,refinesanitationmanagementbyvirtueofsmarttechnologies,growbusinessrapidly,buildkeycompetitiveadvantages,andleadintheneweraofsmarturbanservices.From2016to2023,theCompanyrecordedacontractamountofRMB1.237billion,RMB5.561billion,RMB8.711billion,RMB9.72billion,RMB12.574billion,RMB8.435billion,RMB9.251billion,andRMB7.652billionrespectivelyandanannualservicecontractamountofRMB55million,RMB305million,RMB429million,RMB855million,RMB1.248billion,RMB1.228billion,andRMB1.819billion,andRMB1.553billion,respectivelyforurbanservices.TheCompany'soperatingrevenuefromurbanservicesincreasedby35.38%YoYtoRMB5.63billionin2023.
3."Directrepair+"after-salesserviceAfter-salesserviceisacriticaltouchpointforcompaniestoconnectwithcustomers,andhigh-qualityafter-salesserviceisacompany'scorecompetitiveedge.Basedonproductlifecyclemanagement,theCompanylauncheda"SpeedyService"Programthatfollowsthe"1314"servicestandards—respondingtocustomerswithin15minutes;departingwithin30minutesandarrivingatmaterialserviceareaswithin2hours;addressinggeneralfaultswithin1dayandmaterialfaultswithin3days;offeringfreeservicesfourtimeseachquarter.Forthisserviceprogram,theCompanyhasdeployedresources,includingoneplatform,300serviceoutlets,1,000serviceengineers,and400servicestations.Currently,InforeEnvirocandelivertimely,warm,quality,fairly-priced,andtrustworthyservicestoitscustomers.
4.CorporatecultureandmanagementteamCorporatecultureisthecornerstoneofacompany'screativityandunityaswellasanimportantpartofacompany'skeycompetitiveadvantages.Withthecorporatemissionof"CleanerWorld,BetterFuture",theCompanystickstothecorporatephilosophyof"simpleandprofessionalwithquickexecution"andthecorevaluesof"ourclientsarevitaltous;ouremployeesareourpartnersinourendeavors;weaimtobeachievement-oriented-competencebeatsmediocrity;andtechnologyinnovationisthebasisforourdevelopment."Weadoptthedevelopmentstrategywithleadingtechnologyatthecenter,beingorder-drivenasthemeans,andmotivatingtalentasthebasis,andarecommittedtobecomingarespectedandtrustedleaderinprovidingintelligentequipmentandserviceswithcleaningrobotsatitscore.Afteryearsofefforts,theCompanyhasdeeplyincorporatedthecoreelementsofitscorporatecultureintooperations.Theseprincipleshaveguideditsbusinesssegments,branches,andsubsidiariesinbenchmarkingoperations,advancingrefinedmanagement,andhigh-qualitygrowth.
TheCompanyishelmedbyapragmaticandcompetentmanagementteam.TheCompany'smanagementteamendorsesthecorporatecultureandsharesthesamemanagementphilosophy.Eachmemberoftheteamcomplementstheothers'strengthsandhasclearlydefinedresponsibilities.Asawhole,theteamisunitedandpossessesstrongexecutiveabilities.Withabundantindustryexperienceandforward-lookingvision,theteamidentifiesindustrytrendswithprecisionandspeedandseizesmarketopportunitiespromptly.Formanyyears,theCompanyhaspromotedstockincentivesandemployeestockownershipprogramsaswellassetupteammanagementframeworksforcornerstonepartnerships,seniorpartnershipsandgeneralpartnerships,gatheringagroupof
passionatetrailblazerswhosharetheCompany'svalues,buildingacommunityforkeyemployeesintheCompanyandpropellingtheCompanytowardsstable,healthyandlong-termgrowth.
IV.AnalysisofPrincipalBusiness
1.Overview
InforeEnvirofacedsevereexternalchallengesin2023amidstthemacroeconomicsituation.Despitethat,theCompanyremainedcommittedtoitsdevelopmentstrategiesandannualbusinessplan,withastrongemphasisonitscore"5115"strategy.Itsignificantlyimproveditsinternaloperationsbystrengtheningitskeyteamsandintensifyingtechnologicalinnovationandproductresearchanddevelopment.Asaresult,theCompanymaintaineditspositionasanindustryleaderinsmarturbanservicesbasedonitsestablishedR&Dadvantagesinenvironmentalprotectionequipment.
In2023,theCompanygeneratedRMB498,383,700innetprofitattributabletothelistedcompany'sshareholdersandRMB12,631,051,000inoperatingrevenue.Asattheendofthereportingperiod,theCompanyreportedRMB29,048,201,600intotalassetsandRMB17,437,509,200innetassetsattributabletothelistedcompany'sshareholders.Duringthereportingperiod,theCompanyregisteredrapidgrowthinurbanserviceswhilemaintainingitsleadershipintheenvironmentalprotectionequipmentsector.
1.RankedNo.2forincreaseinannualamountofurbanservicecontractsin2023
AccordingtoHuanjingSinan,InforeEnvirosigned82urbanserviceprojectsacross18Chineseprovincesin2023.ThesenewcontractshaveanannualamountofRMB1.553billion,rankingNo.2intheindustry,andatotalamountofRMB7.652billion,rankingNo.3intheindustry.TheCompany'soperatingrevenuefromurbanservicesincreasedby35.38%YoYtoRMB5.63billion.Asattheendofthereportingperiod,InforeEnvirowasrunning263urbanserviceprojects.ThesecontractshaveanannualamountofRMB6.567billionandatotalamountofRMB60.018billion.TheCompany'sexecutorycontractstotalRMB43.809billion.TheCompanyperformedwellintermsofsustainableoperation.
2.RankedNo.1intermsofsalesofsanitationequipmentin2023
TheCompanysold12,319piecesofenvironmentalprotectionequipmentin2023,accordingtothemotorvehicleaccidentliabilityinsurancedatareleasedbytheNationalFinancialRegulatoryAdministration.ThesalesofenvironmentalprotectionequipmentamountedtoRMB5.085billion,rankingNo.1intheindustryinChinaforthe23rdconsecutiveyear.
3.RankedNo.1intermsofsalesofnewenergy-poweredenvironmentalprotectionequipmentin2023
TheCompanysold1,974pure-electricpoweredsanitationvehiclesin2023,withamarketshareof32.4%,rankingNo.1intheindustry,accordingtothemotorvehicleaccidentliabilityinsurancedatareleasedbytheNationalFinancialRegulatoryAdministration.
4.Improvementinqualityandefficiency,andhigh-qualitydevelopment
Withthekeygoalof"achievinghigh-qualitydevelopment",centeringonallstepsofproductionandoperation,theCompanyexploredmultiplemethodsforimprovingitsassetoperationcapabilitiestoreduceexistingassetsandcontrolincrementalassets.Itdismissedhigh-riskorders,strengthenedtheclassificationandaccountabilitymechanismsforcontractrisks,enhancedrecoveryofcorporatesalesrevenue,andacceleratedoperationalturnoverefficiency.In2023,theCompanyrecordedRMB1,385,556,500innetcashflowsfromoperatingactivities,andYoYincreaseof1.79%and1.23%ingrossprofitmarginfromthetwocorebusinesssegments:intelligentequipmentandsmartservices,leadingtotheimprovementinoperationalqualityultimately,improvementinqualityandefficiency,andeffectivelydrivinghigh-qualitysustainabledevelopment.
5.DigitaltransformationandthesetupofahighlyefficientoperatingsystemInforeEnvirocontinuedtodigitalizevaluechainsasdigitalizationhasbeenoneofitscoretransformationstrategies.TheCompanyfullydigitalizedallapplicationsandprocessesacrossvaluechainsusingonesystemandplatformunderInforeEnviro.Byexpandingonlinecoverageandenhancingstandardizationandinformationtechnology,itadvancedthecomprehensivedigitalizationandvisualizationfordecision-makingsupportacrossallsegments,supportedoperationsmanagementwithdata,acceleratedthe
monetizationofdataassets,improveditsrefinedprocessmanagement,enhancedcontrolcapabilities,reducedcostsandrisks,andempoweredoperations.Iteventuallymanagedtocutcostsandincreaseefficiencies.
6.HighcashdividendsforshareholdersValuinginvestorreturn,theCompanyhasbeenimplementinganactiveprofitdistributionpolicy.Ithaspaidhighcashdividendsformanyyearsinarowasreturnforitsshareholders.Accordingtothe2023profitdistributionplan(proposed)approvedatthesixmeetingoftheTenthBoardofDirectors,acashdividendofRMB1.25(taxinclusive)per10shareswillbedistributedtotheshareholders,basedonthetotalsharecapital(minussharesintheCompany'srepurchaseaccount)onthedateofrecordfortheplan.AtotalcashdividendofaroundRMB396million(taxinclusive)isexpectedtobedistributed,accountingfor79.43%ofthenetprofitattributabletothelistedcompany'sshareholdersin2023.AstheproposedplanisawaitingtheapprovaloftheGeneralMeetingofShareholders,theactualdividendamountwillbedisclosedbytheCompanyintherelevantannouncements.Inthepastthreeyears(2021–2023),theCompanyhaspaidRMB1.056billionincashdividends,accountingfor41.45%,
83.18%and79.43%ofthenetprofitattributabletothelistedcompany'sshareholders,respectively.
7.ActivefulfillmentofsocialresponsibilityaspartofitscorporateresponsibilityIn2023,whileseekingbusinessgrowth,theCompanyfulfilleditssocialresponsibilityasitgotinvolvedinpovertyalleviationanddisasterreliefefforts.Intermsofpovertyalleviation,theCompanytookanactivepartinvariousinitiatives,includingmakingdonations,suchastheShangyuFourthRoundPovertyAlleviationandAssistanceCharityFund,the"WarmthoftheAncientCity"ReliefandAssistanceFoundation,andothercharityfundsorfoundations,includingthosesupportingindividualswithdisabilities.Thesemonetarycontributionsareusedforawiderangeofpurposes,includingpovertyalleviation,education,medicalandeldercare,disasterrelief,innovativepovertyreductionefforts,andpublicwelfareprojects.TheCompanyalsoreadilyrespondstoemergencysituations.Inresponsetofloodscausedbytyphoonsandcontinuedheavyrainfall,particularlyinBeijingandHebei,theCompanyswiftlyputinplaceanemergencyrescuemechanismwithlocalpartnersandcustomersandsentdedicatedteamstoensuretheproperfunctioningofequipmentthrougharound-the-clockpersonnelandvehicleservices.Itsserviceengineersworkedtirelesslytokeepsanitationvehiclefunctioningproperlyanddeliveressentialsuppliespromptly,becomingkeycontributorstothepost-disasterreconstructionefforts.
2.Revenueandcost
(1)Breakdownofoperatingrevenue
Unit:RMB
| 2023 | 2022 | YoYchange | |||
| Amount | Asapercentageofoperatingrevenue | Amount | Asapercentageofoperatingrevenue | ||
| Totalrevenue | 12,631,050,967.34 | 100% | 12,255,992,938.42 | 100% | 3.06% |
| Sector | |||||
| Smarturbanservice | 10,715,122,532.51 | 84.83% | 10,242,746,845.77 | 83.57% | 4.61% |
| Others | 1,915,928,434.83 | 15.17% | 2,013,246,092.65 | 16.43% | -4.83% |
| Product | |||||
| Intelligentequipment | 5,085,372,879.14 | 40.26% | 6,084,414,800.17 | 49.64% | -16.42% |
| Smartservice | 5,629,749,653.37 | 44.57% | 4,158,332,045.60 | 33.93% | 35.38% |
| Others | 1,915,928,434.83 | 15.17% | 2,013,246,092.65 | 16.43% | -4.83% |
| Region | |||||
| Domestic | 12,584,153,957.04 | 99.63% | 12,237,181,369.71 | 99.85% | 2.84% |
| Overseas | 46,897,010.30 | 0.37% | 18,811,568.71 | 0.15% | 149.30% |
| Wholesale | |||||
| Directsales | 11,172,859,318.43 | 88.46% | 10,735,356,968.50 | 87.59% | 4.08% |
| Retail | 1,458,191,648.91 | 11.54% | 1,520,635,969.92 | 12.41% | -4.11% |
(2)Sectors,products,regionsorsalesmodelsaccountingforover10%ofoperatingrevenueorprofit?Applicable□Notapplicable
Unit:RMB
| Operatingrevenue | Operatingcost | Grossprofitmargin | YoYchangeinoperatingrevenue | YoYchangeinoperatingcosts | YoYchangeingrossprofitmargin | |
| Sector | ||||||
| Smarturbanservice | 10,715,122,532.51 | 8,366,738,029.64 | 21.92% | 4.61% | 4.28% | 0.25% |
| Others | 1,915,928,434.83 | 1,378,744,058.28 | 28.04% | -4.83% | -4.67% | -0.13% |
| Product | ||||||
| Intelligentequipment | 5,085,372,879.14 | 3,675,986,033.73 | 27.71% | -16.42% | -18.44% | 1.79% |
| Smartservice | 5,629,749,653.37 | 4,690,751,995.91 | 16.68% | 35.38% | 33.41% | 1.23% |
| Others | 1,915,928,434.83 | 1,378,744,058.28 | 28.04% | -4.83% | -4.67% | -0.13% |
| Region | ||||||
| Domestic | 12,584,153,957.04 | 9,712,142,988.74 | 22.82% | 2.84% | 2.73% | 0.07% |
| Overseas | 46,897,010.30 | 33,339,099.18 | 28.91% | 149.30% | 109.52% | 13.50% |
| Wholesale | ||||||
| Directsales | 11,172,859,318.43 | 8,647,595,286.40 | 22.60% | 4.08% | 4.35% | -0.21% |
| Retail | 1,458,191,648.91 | 1,097,886,801.52 | 24.71% | -4.11% | -7.16% | 2.48% |
TheCompany'smainbusinessdatafortheyearwasadjustedtotakeintoaccountrevisedstatisticalstandardsthatwereupdatedduringthereportingperiod
□Applicable?NotApplicable
(3)Whetherrevenuefromgoodssaleshigherthanrevenuefromrenderingservices?Yes□No
| Sector | Item | Unit | 2023 | 2022 | YoYchange |
| Intelligentequipment | Sales | Unit | 14,903 | 17,674 | -15.68% |
| Production | Unit | 15,216 | 16,221 | -6.20% | |
| Inventory | Unit | 1,947 | 1,634 | 19.16% |
ExplanationofdatawithYoYdifferencesthatexceed30%
□Applicable?NotApplicable
(4)Fulfillmentofmaterialsales/procurementcontractssignedduringthereportingperiod
□Applicable?NotApplicable
(5)BreakdownofoperatingcostsSector
Unit:RMB
| Sector | Item | 2023 | 2022 | YoYchange | ||
| Amount | Asapercentageofoperatingcost | Amount | Asapercentageofoperatingcost | |||
| Smarturbanservice | Rawmaterials | 3,578,986,019.54 | 42.78% | 4,021,886,417.92 | 50.13% | -11.01% |
| Smarturbanservice | Laborexpense | 1,762,380,063.07 | 21.06% | 1,056,998,188.36 | 13.17% | 66.73% |
| Smarturbanservice | Depreciation | 504,195,683.78 | 6.03% | 423,631,356.77 | 5.28% | 19.02% |
| Smarturbanservice | Utilities | 403,490,139.16 | 4.82% | 463,060,371.23 | 5.77% | -12.86% |
| Smarturbanservice | Othermanufacturingoverhead | 2,117,686,124.09 | 25.31% | 2,057,720,725.63 | 25.65% | 2.91% |
| Others | Rawmaterials | 596,485,884.08 | 43.27% | 729,321,140.14 | 50.43% | -18.21% |
| Others | Laborexpense | 125,343,062.94 | 9.09% | 97,064,385.84 | 6.71% | 29.13% |
| Others | Depreciation | 163,979,538.70 | 11.89% | 140,507,354.03 | 9.72% | 16.71% |
| Others | Utilities | 24,003,170.66 | 1.74% | 26,661,871.00 | 1.84% | -9.97% |
| Others | Othermanufacturingoverhead | 468,932,401.90 | 34.01% | 452,659,020.35 | 31.30% | 3.60% |
Note
Laborcostsinrelationtosmarturbanservicesrosesignificantlyoverthepreviousyear,primarilybecauserevenuefromsmartserviceincreasedduringthecurrentperiod,resultinginacorrespondingincreaseinsupportingfacilities,laborcosts,andlaboroutsourcingcosts.
(6)Changesinthescopeofconsolidatedfinancialstatementsforthereportingperiod?Yes□NoFordetailsofthechangesinthescopeoftheconsolidatedfinancialstatementsduringthereportingperiod,pleaserefertoNote8"ChangesintheScopeofConsolidation"inPartXFinancialStatements.
(7)Materialchangesinthebusiness,productsorservicesduringthereportingperiod
□Applicable?NotApplicable
(8)MajorcustomersandsuppliersMajorcustomersoftheCompany
| Totalsalestotopfivecustomers(RMB) | 768,801,478.51 |
| Totalsalestotopfivecustomersasapercentageofannualtotalsales | 6.09% |
| Totalsalestorelatedpartiesamongtopfivecustomersasapercentageofannualtotalsales | 0.00% |
Topfivecustomers
| No. | Customer | Salesrevenue(RMB) | Asapercentageofannualtotalsales |
| 1 | CustomerA | 184,221,542.53 | 1.46% |
| 2 | CustomerB | 159,156,813.97 | 1.26% |
| 3 | CustomerC | 151,343,512.56 | 1.20% |
| 4 | CustomerD | 139,862,294.97 | 1.11% |
| 5 | CustomerE | 134,217,314.48 | 1.06% |
| Total | -- | 768,801,478.51 | 6.09% |
Otherinformationaboutmajorcustomers
□Applicable?NotApplicableMajorsuppliersoftheCompany
| Totalpurchasesfromtopfivesuppliers(RMB) | 1,548,979,382.34 |
| Totalpurchasesfromtopfivesuppliersasapercentageofannualtotalpurchases | 19.85% |
| Totalpurchasesfromrelatedpartiesamongtopfivesuppliersasapercentageofannualtotalpurchases | 0.00% |
Topfivesuppliers
| No. | Supplier | Purchaseduringthereportingperiod(RMB) | Asapercentageoftotalpurchases |
| 1 | SupplierA | 625,907,194.69 | 8.02% |
| 2 | SupplierB | 448,675,120.98 | 5.75% |
| 3 | SupplierC | 245,457,742.48 | 3.15% |
| 4 | SupplierD | 128,693,061.92 | 1.65% |
| 5 | SupplierE | 100,246,262.27 | 1.28% |
| Total | -- | 1,548,979,382.34 | 19.85% |
Otherinformationaboutmajorsuppliers
□Applicable?NotApplicable
3.Expenses
Unit:RMB
| 2023 | 2022 | YoYchange | Reasonformaterialchange | |
| Sellingexpenses | 794,334,952.02 | 762,970,847.95 | 4.11% | -- |
| Administrativeexpenses | 726,159,237.45 | 609,601,680.23 | 19.12% | Mainlyduetoincreaseinrevenuefromsmartserviceduringthecurrentperiod,resultinginacorrespondingincreaseinremunerationofmanagementmembers. |
| FinancialExpenses | 75,321,084.87 | 101,839,423.91 | -26.04% | Mainlyduetoincreaseindepositinterestincomeanddecreaseinloaninterestexpensesduringthecurrentperiod. |
| R&Dexpenses | 344,030,239.33 | 340,775,707.34 | 0.96% | -- |
4.R&Dinvestments
?Applicable□Notapplicable
| NameofmajorR&Dprojects | Objectives | Progress | Proposedgoals | ExpectedimpactonfuturedevelopmentoftheCompany |
| IntelligentMagneticLevitationTurbineCentrifugalCompressorEquipmentforBlowerandVacuumSystems | Toexploreandexpandthesegment | Mass-producedandlaunchedonthemarket | Toindustrializetheresultandgeneratemarketorders | ThishelpstheCompanyimproveitskeycompetitiveadvantages |
| Nuclear-gradeCentrifugalRoofFan | Toexploreandexpandthesegment | Mass-producedandlaunchedonthemarket | Toindustrializetheresultandgeneratemarketorders | ThishelpstheCompanyimproveitskeycompetitiveadvantages |
| Three-phaseCentrifugalBlowerforNuclearIslands | Tomeettheenergyefficiencyrequirementsofcentrifugalblowerfornuclearislands | Mass-producedandlaunchedonthemarket | Toindustrializetheresultandgeneratemarketorders | ThishelpstheCompanyimproveitskeycompetitiveadvantages |
| AutomaticOnlineWaterQualityMonitorfortheContentofTotalThallium | Toexpandtheproductrangefortheonlinemonitoringofthalliumindomesticsewageandindustrialwastewater | Mass-producedandlaunchedonthemarket | Todevelopatypeofautomaticonlinewaterqualitymonitorforthecontentoftotalthallium | ThishelpstheCompanyimproveitskeycompetitiveadvantages |
| AutomaticWaterSampler | Todevelopnewproductssuitableforpretreatmentforsurfacewaterstations,withfunctionssuchasretentionofnon-compliantsamplesandsynchronoussampleretention | Mass-producedandlaunchedonthemarket | Todevelopatypeofpretreatmentequipmentforsurfacewaterstations,i.e.,samplerwithfunctionssuchasretentionofnon-compliantsamplesandsynchronoussampleretention | ThishelpstheCompanyimproveitskeycompetitiveadvantages |
| OzoneAnalyzer | Toexpandtheproductrangefortheonlinemonitoringofambientatmosphericozone | R&Dcompleted | Todevelopatypeofhighlyaccurateozoneanalyzer | ThishelpstheCompanyimproveitskeycompetitiveadvantages |
| PollutionSourceCO2Analyzer | Toexpandtheproductrangefortheonlinemonitoringofpollutinggreenhousegases | R&Dcompleted | TodevelopatypeofonlineautomaticmonitorofCO2emissions | ThishelpstheCompanyimproveitskeycompetitiveadvantages |
| ContinuousMonitoringSystemforVolatileOrganicCompoundsinAmbientAir | Toexpandtherangeofscientificinstruments,enablingonlinemonitoringof116typesofVOCsinambientair | R&Dcompleted | Todevelopasetofonlinemonitoringsystemof116typesofVOCs | ThishelpstheCompanyimproveitskeycompetitiveadvantages |
| AutonomousUnmannedSweepingRobot | Todevelopatypeofunmannedsweepingrobot | R&Dcompleted | Tosuccessfullydevelopatypeofunmannedsweepingrobot | ThishelpstheCompanyimproveitskeycompetitiveadvantages |
| OutdoorUnmannedDrivingOperatingSystemR&D(PhaseII) | Toconductspecializedtechnologydevelopmentforoutdoorunmanneddrivingtechnologytoenhancetechnicalcapabilities | R&Dcompleted | Tosuccessfullydeveloptheoutdoorunmanneddrivingtechnology(phaseII) | ThishelpstheCompanyimproveitskeycompetitiveadvantages |
| ResearchonPneumaticNoiseControlandEnergy-SavingPneumaticConveyingTechnology | Tofurtherreduceproductenergyconsumptionandnoise | R&Dcompleted | Toreduceenergyconsumptionandnoiseofexistingproducts | ThishelpstheCompanyimproveitskeycompetitiveadvantages |
| Third-generationLeakage-freeCompressionGarbageTruck | 1.Tosolvetheproblemoflowloadingcapacityoftheexistingproduct;2.Tosolvetheproblemsofmaterialaccumulationandscatteringonthetopofthegarbagebinintheexistingproduct;3.Tosolvetheproblemofodorleakageduetotheunsealedopenendoftheexistingproduct. | R&Dcompleted | Todevelopawetwastecollectionandcompressiontruckwithfeaturessuchasfullsealing,noleakage,andlargeloadingcapacity | ThishelpstheCompanyimproveitskeycompetitiveadvantages |
| 18-tonPure-ElectricDual-fanRoadCleaners | Toaddressenergyconsumption,noise,andotherproblemsoftheproduct | R&Dcompleted | Toimprovetheperformanceoftheexistingproduct | ThishelpstheCompanyimproveitskeycompetitiveadvantages |
| 18-tonFrontCollectionGreenHedgeTrimmer | Toexpandtheproductrangeforlandscapemaintenance,suchasthetrimming,collectionofgreenbeltsonhighways,ringroadexpressways,andurbanroads,thepruningofhighbranchesofbushonroadside,andslopemowing | R&Dcompleted | Todevelopaspecializedvehiclewithfront-mountedboomarmandquick-changesystemfortransitionsbetweenvariouslandscapingtoolstomanagetrimmingtasksinavarietyofsettings,includinggreenbelts,roadsides,andslopes | ThishelpstheCompanyimproveitskeycompetitiveadvantages |
InformationaboutR&Dpersonnel
| 2023 | 2022 | Change | |
| NumberofR&Dpersonnel | 1,212 | 1,415 | -14.35% |
| R&Dpersonnelasapercentageoftotalstaff | 5.99% | 8.23% | -2.24% |
| EducationbackgroundofR&Dpersonnel | |||
| Bachelor'sdegree | 802 | 995 | -19.40% |
| Master'sdegree | 358 | 374 | -4.28% |
| Doctoraldegree | 11 | 12 | -8.33% |
| Collegedegree | 41 | 34 | 20.59% |
| AgecompositionofR&Dpersonnel | |||
| <30years | 471 | 662 | -28.85% |
| 30~40years | 560 | 641 | -12.64% |
| >40years | 181 | 112 | 61.61% |
InformationaboutR&Dinvestments
| 2023 | 2022 | Change | |
| R&Dinvestments(RMB) | 352,849,905.78 | 364,237,563.22 | -3.13% |
| R&Dinvestmentsasa | 2.79% | 2.97% | -0.18% |
| percentageofoperatingrevenue | |||
| CapitalizedR&Dinvestments(RMB) | 8,819,666.45 | 23,461,855.88 | -62.41% |
| CapitalizedR&DinvestmentsasapercentageoftotalR&Dinvestments | 2.50% | 6.44% | -3.94% |
ReasonsandimpactsofmaterialchangeinR&Dpersonnelcomposition
□Applicable?NotApplicableReasonsforsignificantYoYchangeintotalR&Dinvestmentsasapercentageofoperatingrevenue
□Applicable?NotApplicableReasonsandrationaleforsignificantchangeincapitalizationrateofR&Dinvestment?Applicable□NotapplicableThecapitalizationrateofR&Dinvestmentdecreasedby3.94%YoY,mainlyduetothedecreaseintheinvestmentinR&Dprojectsunderdevelopmentduringthereportingperiod.
5.Cashflow
Unit:RMB
| Item | 2023 | 2022 | YoYchange |
| Subtotalofcashinflowsfromoperatingactivities | 14,265,101,402.26 | 14,255,237,258.75 | 0.07% |
| Subtotalofcashoutflowsfromoperatingactivities | 12,879,544,892.77 | 12,592,754,971.04 | 2.28% |
| Netcashflowsfromoperatingactivities | 1,385,556,509.49 | 1,662,482,287.71 | -16.66% |
| Subtotalofcashinflowsfrominvestingactivities | 1,691,155,211.72 | 5,558,632,508.54 | -69.58% |
| Subtotalofcashoutflowsfrominvestingactivities | 2,766,885,333.81 | 6,696,412,810.26 | -58.68% |
| Netcashflowsfrominvestingactivities | -1,075,730,122.09 | -1,137,780,301.72 | 5.45% |
| Subtotalofcashinflowsfromfinancingactivities | 1,486,267,737.80 | 2,381,374,197.63 | -37.59% |
| Subtotalofcashoutflowsfromfinancingactivities | 2,462,201,245.03 | 2,447,214,731.68 | 0.61% |
| Netcashflowsfromfinancingactivities | -975,933,507.23 | -65,840,534.05 | -1,382.27% |
| Netincreaseincashandcashequivalents | -664,519,991.45 | 461,918,360.27 | -243.86% |
ExplanationofmainimpactfactorofmaterialchangeofthedataYoY?Applicable□NotapplicableThecashinflowsfrominvestingactivitiesdecreasedby69.58%YoY,andthecashoutflowsfrominvestingactivitiesdeclinedby
58.68%YoY,mainlyduetotheYoYdecreaseinthepurchaseandredemptionofwealthmanagementproductsduringthereportingperiod.
Thecashinflowsfromfinancingactivitiesdecreasedby37.59%YoY,andthenetcashflowsfromfinancingactivitiesdroppedby1,382.27%YoY,mainlyduetooptimizationofthedebtmixduringthereportingperiod,resultinginmorerepaymentsofloansthannewborrowings.Explanationofreasonsforthematerialdifferencebetweennetcashflowsfromoperatingactivitiesduringthereportingperiodandnetprofitfortheyear
□Applicable?NotApplicableV.AnalysisofNon-CoreBusiness
?Applicable□Notapplicable
Unit:RMB
| Amount | Asapercentageoftotalprofit | Reasonsforgeneration | Recurrentornon-recurrent | |
| Investmentincome | -51,597,205.92 | -8.46% | -- | RMB4,960,692.79isthereturnsonlong-termequityinvestmentscalculatedusingtheequitymethod,whichisrecurrent;theotherportionisnon-recurrent. |
| Gainorlossonchangesinfairvalue | 0.00% | -- | No | |
| Impairmentofassets | -123,390,769.02 | -20.23% | Mainlyduetoprovisionofgoodwillimpairmentloss | No |
| Non-operatingrevenue | 19,846,705.60 | 3.25% | -- | No |
| Non-operatingexpenses | 13,031,066.19 | 2.14% | -- | No |
VI.AssetsandLiabilities
1.Materialchangesofassetitems
Unit:RMB
| December31,2023 | January1,2023 | Change | Reasonformaterialchange | |||
| Amount | Asapercentageoftotalassets | Amount | Asapercentageoftotalassets | |||
| Cashandcashequivalents | 4,411,376,583.78 | 15.19% | 4,728,203,530.46 | 16.15% | -0.96% | -- |
| Accountsreceivable | 5,867,669,476.86 | 20.20% | 5,625,792,472.37 | 19.22% | 0.98% | -- |
| Contractassets | 74,803,489.48 | 0.26% | 101,023,854.33 | 0.35% | -0.09% | -- |
| Inventories | 971,229,637.15 | 3.34% | 881,038,036.95 | 3.01% | 0.33% | -- |
| Investmentproperties | 1,138,868.60 | 0.00% | 27,105,435.03 | 0.09% | -0.09% | -- |
| Long-termequityinvestment | 681,629,084.69 | 2.35% | 676,829,959.84 | 2.31% | 0.04% | -- |
| Fixedassets | 2,338,316,124.14 | 8.05% | 2,268,287,202.01 | 7.75% | 0.30% | -- |
| Constructioninprogress | 288,057,018.89 | 0.99% | 41,073,267.68 | 0.14% | 0.85% | -- |
| Right-of-useassets | 25,125,671.95 | 0.09% | 31,859,454.24 | 0.11% | -0.02% | -- |
| Short-termborrowings | 126,939,855.26 | 0.44% | 440,103,105.44 | 1.50% | -1.06% | -- |
| Contractliabilities | 306,777,173.57 | 1.06% | 274,289,978.25 | 0.94% | 0.12% | -- |
| Long-termborrowings | 1,884,356,851.73 | 6.49% | 1,922,306,226.32 | 6.57% | -0.08% | -- |
| Leaseliabilities | 16,170,790.76 | 0.06% | 23,255,624.30 | 0.08% | -0.02% | -- |
| Intangibleassets | 5,984,348,824.39 | 20.60% | 6,048,114,364.49 | 20.66% | -0.06% | -- |
Offshoreassetsaccountforhighproportion
□Applicable?NotApplicable
2.Assetsandliabilitiesmeasuredatfairvalue?Applicable□Notapplicable
Unit:RMB
| Item | Openingbalance | Gain/lossonchangesinfairvalueduringtheperiod | Cumulativechangesinfairvalueincludedinequity | Accrualofimpairmentduringtheperiod | Purchaseamountduringtheperiod | Salesamountduringtheperiod | Otherchanges | Closingbalance |
| Financialassets | ||||||||
| 4.Investmentsinotherentityinstruments | 15,352,971.01 | 15,352,971.01 | ||||||
| Subtotaloffinancialassets | 15,352,971.01 | 15,352,971.01 | ||||||
| Total | 15,352,971.01 | 15,352,971.01 | ||||||
| Financialliabilities | 0.00 | 0.00 | ||||||
OtherchangesWhetheranymaterialchangesoccurredtothemeasurementattributesoftheCompany'smajorassetsduringthereportingperiod
□Yes?No
3.Restrictedassetrightsasattheendofthereportingperiod
Unit:RMB
| Items | Closingbalance | Carryingamountsat | Typeofrestriction | Reasonforrestriction |
| theendoftheperiod | ||||
| Cashandcashequivalents | 495,231,329.24 | 495,231,329.24 | Guarantee,freeze,etc. | Deposits,escrowaccounts,frozenduetolitigationpreservation |
| Notesreceivable-bankacceptance | 4,472,210.78 | 4,472,210.78 | Endorsementordiscount | Endorsedordiscountedbutundue |
| Notesreceivable-tradeacceptance | 407,749.04 | 349,861.59 | Endorsementordiscount | Endorsedordiscountedbutundue |
| Accountsreceivable | 357,237,223.82 | 338,232,491.18 | Pledged | Pledged |
| Receivablefinancing | 55,280,364.20 | 55,280,364.20 | Pledged | Pledged |
| Long-termaccountsreceivableandnon-currentassetsduewithinoneyear | 66,695,425.00 | 61,841,516.63 | Factoringfinancingandpledgewithrecourse | Factoringfinancingandpledgewithrecourse |
| Fixedassets | 72,439,458.40 | 27,881,359.42 | Mortgaged | Mortgaged |
| Intangibleassets | 84,779,751.51 | 77,778,795.88 | Mortgaged | Mortgaged |
| 100%equityinterestinBiyangFengheNewEnergyPowerCo.,Ltd. | 105,047,950.25 | 105,047,950.25 | Pledged | Mortgaged[Note] |
| 100%equityinterestinFunanCompany | 78,720,044.41 | 78,720,044.41 | Pledged | |
| 100%equityinterestinPoyangGreenlanderRenewableEnergyCo.,Ltd. | 76,768,690.77 | 76,768,690.77 | Pledged | |
| 75%equityinterestinLianjiangCompany | 112,692,107.66 | 112,692,107.66 | Pledged | |
| 25%equityinterestinLianjiangCompany | 37,564,035.89 | 37,564,035.89 | Freeze | Frozenforlitigationpreservation |
| Total | 1,547,336,340.97 | 1,471,860,757.90 |
[Note]:ThepledgedamountreferstotheCompany'sproportionateshareinnetassetsofeachentity.
VII.Investments
1.Overview
?Applicable□Notapplicable
| Investmentamountforthereportingperiod(RMB) | Investmentamountforthepriorperiod(RMB) | Change |
| 7,056,438.75 | 106,000,002.00 | -93.34% |
2.Materialequityinvestmentsmadeduringthereportingperiod
□Applicable?NotApplicable
3.Materialnon-equityinvestmentsongoingduringthereportingperiod
□Applicable?NotApplicable
4.Financialinvestments
(1)Securitiesinvestments
□Applicable?NotApplicableNosuchcasesduringthereportingperiod.
(2)Derivativesinvestments
□Applicable?NotApplicableNosuchcasesduringthereportingperiod.
5.Useofproceedsfromfundraisingactivities?Applicable□Notapplicable
(1)Overalluseofproceeds?Applicable□Notapplicable
Unit:RMB10,000
| Year | Fundraisingtype | Totalamountofproceeds | Netamountofproceeds | Totalamountofproceedsusedduringtheperiod | Accumulativeamountofproceedsused | Totalamountofproceedswithchangeofuseduringthereportingperiod | Accumulativeamountofproceedswithchangeofuse | Shareofaccumulativeproceedswithchangeofuse | Totalamountofunusedproceeds | Purposeandtrackingofunusedproceeds | Proceedsleftidleforover2years |
| 2020 | Publicofferingofconvertiblecorporatebonds | 147,618.96 | 145,733.62 | 3,956.73 | 38,836.42 | 0 | 0 | 0.00% | 107,743.13 | RMB1billionwilltemporarilyreplenishworkingcapital,andtheremainingamountwillbeusedtoimplementrecentinvestmentprojects. | 0 |
| Total | -- | 147,618.96 | 145,733.62 | 3,956.73 | 38,836.42 | 0 | 0 | 0.00% | 107,743.13 | -- | 0 |
| Explanationoftheoveralluseofproceeds | |||||||||||
| AccordingtotheApprovalofthePublicOfferingofConvertibleCorporateBondsbyInforeEnvironmentTechnologyGroupCo.,Ltd.(Z.J.X.K.[2020]No.2219)issuedbytheCSRC,theleadunderwriteroftheCompany,HuaxingSecuritiesCo.,Ltd.(formerlyknownasHuajingSecurities,hereinafter"HuaxingSecurities")issued14,761,896convertiblecorporatebonds("CBs")tothepublicwiththeofferingpriceofRMB100andaparvalueofRMB100foreachCB,raisingatotalofRMB1,476,189,600.00.Specifically,priorityallotmentof9,405,386CBswereissuedtooriginalshareholdersoftheCompany,accountingfor63.71%ofthetotalamountofthispublicoffering;5,304,730CBswereissuedtopublicinvestorsthroughonlinechannels,accountingfor35.94% | |||||||||||
(2)Projectswithcommittedinvestmentofproceeds?Applicable□Notapplicable
Unit:RMB10,000
ofthetotalamountofthispublicoffering;51,780CBsweretobeunderwrittenbytheleadunderwriter,accountingfor0.35%ofthetotalamountofthispublicoffering.ProceedsinthisofferinghadbeenremittedtotheCompany'sraisedfundsupervisionaccountbytheleadunderwriterHuaxingSecuritiesonNovember10,2020,andtheamountactuallyreceivedafterdeductingRMB15,238,100ofunderwritingandsponsorshipfees(taxexclusive)wasRMB1,460,951,500.AfterdeductingRMB3,615,300(taxexclusive)ofexternalfeesthatweredirectlyrelatedtoCBsuchasonlineofferingexpenses,printingfeefortheprospectus,feesofthereportingaccountant,counselfee,creditratingfee,informationdisclosureexpenses,andissuancecommissionfee,thenetamountofproceedsfromthisofferingwasRMB1,457,336,200.Theavailabilityoftheabove-mentionedproceedshasbeenverifiedbyPan-ChinaCertifiedPublicAccountantsLLPinitsCapitalVerificationReport(T.J.Y.[2020]No.490).
AsatDecember31,2023,theaccumulateduseoffundraisingproceedswasRMB388,364,200,andthetotalamountoffundraisingproceedsnotyetusedwasRMB1,077,431,300.
Committedinvestmentprojectsandinvestmentofexcessiveproceeds
| Committedinvestmentprojectsandinvestmentofexcessiveproceeds | Whetherprojectshavebeenchanged(includingpartialchange) | Totalamountofproceeds | Adjustedtotalinvestmentamount(1) | Investmentamountduringthereportingperiod | Accumulativeinvestmentamountasattheendofthereportingperiod(2) | Investmentprogressasattheendofthereportingperiod(3)=(2)/(1) | Datewhentheprojectsarereadyfortheirintendeduse | Benefitsrealizedduringthereportingperiod | Whethertheestimatedreturnisrealized | Whethertherearematerialchangesintheprojectfeasibility |
| Committedinvestmentprojects | ||||||||||
| Theprojectofthecomprehensivesmartsanitationallocationcenter | No | 129,638.49 | 129,638.49 | 3,956.73 | 22,741.29 | 17.54% | December31,2024 | 8,757.61 | Notapplicable | No |
| Replenishmentofworkingcapital | No | 16,095.13 | 16,095.13 | 0 | 16,095.13 | 100.00% | Notapplicable | Nobenefitgeneratedseparately | Notapplicable | No |
| Subtotalofcommittedinvestmentprojects | -- | 145,733.62 | 145,733.62 | 3,956.73 | 38,836.42 | -- | -- | 8,757.61 | -- | -- |
| Investmentofexcessiveproceeds | ||||||||||
| Notapplicable | ||||||||||
| Repaymentofbankloans(ifany) | -- | 0 | 0 | 0 | 0 | 0.00% | -- | -- | -- | -- |
| Replenishmentofworkingcapital(ifany) | -- | 0 | 0 | 0 | 0 | 0.00% | -- | -- | -- | -- |
| Subtotalofinvestmentofexcessiveproceeds | -- | 0 | 0 | 0 | 0 | -- | -- | -- | -- | |
| Total | -- | 145,733.62 | 145,733.62 | 3,956.73 | 38,836.42 | -- | -- | 8,757.61 | -- | -- |
| Project-by-projectdetailsandreasonsforfailuretorealizeplannedprogressandexpectedreturn(includingthereasonsforchoosing"N/A"for"Whethertheexpectedreturnisrealized") | OnApril26,2024,theProposalontheDelayofPartoftheProjectsofProceedsfromthePublicIssuanceofA-shareConvertibleCorporateBondswasdeliberatedandapprovedatthesixthmeetingoftheTenthBoardofDirectorsandthesixthmeetingoftheTenthBoardofSupervisors.TheCompanyagreedtoadjusttheinvestmentprogressbychangingthedatefortheintendeduseoftheaboveprojectstoDecember31,2026.TheadjustmentwasmadebecausetheinvestmentprogressoftheprojectofthecomprehensivesmartsanitationallocationcenterwasmainlybasedonthecurrentbusinesssizeoftheCompany'ssanitationserviceprojects.Theproject'sinvestmentprogressfellshortofexpectationsduetotheimpactoftheoveralldeclineindemandforsanitationequipmentandthedesignationoforrestrictionsonsanitationequipmentsuppliersforsomeprojectsonthenumberoforders.Therefore,theCompanyadjustedtheproject'sinvestmentprogresstoensurethequalityandfulluseofproceeds. | |||||||||
| Explanationsofthematerialchangesintheprojectfeasibility | Notapplicable | |||||||||
| Amount,purpose,andprogressofexcessiveproceeds | Notapplicable | |||||||||
| Locationchangesintheimplementationofinvestmentprojectsoftheproceeds | Notapplicable | |||||||||
| Adjustmentstotheimplementationmethodofinvestmentprojectsoftheproceeds | Notapplicable | |||||||||
| Earlyinvestmentandplacementoftheinvestmentprojectsoftheproceeds | Notapplicable | |||||||||
| Temporaryreplenishmentofworkingcapitalwithidleproceeds | Applicable | |||||||||
| TheProposalonUsingPartoftheIdleFundraisingProceedstoReplenishWorkingCapitalwasdeliberatedandapprovedatthe21stMeetingoftheNinthBoardofDirectorsandthe19thMeetingoftheNinthBoardofSupervisorsheldbytheCompanyonOctober26,2022,allowingtheCompanytouseidlefundraisingproceedsofnomorethanRMB1billionfortemporaryreplenishmentofworkingcapital,whichshallbeusedfortheproductionandoperationrelatedtotheCompany'smainbusinesseswithatenorofnomorethan12monthsasatthedatewhentheProposalwasdeliberatedandapprovedbytheBoardofDirectors.TheCompanyissuedtheAnnouncementontheReturnofFundraisingProceedsforTemporaryReplenishmentofWorkingCapitalonOctober25,2023,inwhichtheCompanyreturnedalltheRMB1billionofproceedsfortemporaryreplenishmentofworkingcapitaltotherelevantdesignatedaccountforproceedsonOctober24,2023foraperiodnotexceeding12months.TheProposalonUsingPartoftheIdleFundraisingProceedstoReplenishWorkingCapitalwasdeliberatedandapprovedattheFourthMeetingoftheTenthBoardofDirectorsandtheFourthMeetingoftheTenthBoardofSupervisorsheldonOctober28,2023,allowingtheCompanytouseidlefundraisingproceedsofnomorethanRMB1billionfortemporaryreplenishmentofworkingcapital,whichshallbeusedfortheproductionandoperationrelatedtoitsprincipalbusinesseswithatenorofnomorethan12monthsasatthedatewhentheProposalwasdeliberatedandapprovedbytheBoardofDirectors.AsatDecember31,2023,thebalanceoftheidlefundraisingproceedsusedbytheCompanyfortemporaryreplenishmentofworkingcapitalwasRMB1,000,000,000. | ||||||||||
| Theamountofandreasonsforthebalanceoftheproceedsfromtheprojectimplementation | Notapplicable | |||||||||
| Purposeandtrackingoftheunusedproceeds | TheProposalonUsingPartoftheIdleFundraisingProceedstoReplenish | |||||||||
| WorkingCapitalwasdeliberatedandapprovedattheFourthMeetingoftheTenthBoardofDirectorsandtheFourthMeetingoftheTenthBoardofSupervisorsheldonOctober28,2023,allowingtheCompanytouseidlefundraisingproceedsofnomorethanRMB1billionfortemporaryreplenishmentofworkingcapital,whichshallbeusedfortheproductionandoperationrelatedtoitsprincipalbusinesseswithatenorofnomorethan12monthsasatthedatewhentheProposalwasdeliberatedandapprovedbytheBoardofDirectors.AsatDecember31,2023,thebalanceoftheidlefundraisingproceedsusedbytheCompanyfortemporaryreplenishmentofworkingcapitalwasRMB1,000,000,000.TheotherunusedproceedsofRMB77,431,300werekeptinthedesignatedproceedsaccountintheformofdemanddepositstobeusedfortheconstructionofthecorrespondinginvestmentprojects. | |
| Problemsintheuseofproceedsanddisclosure,orothercases | Notapplicable |
(3)Changedprojectsofproceeds
□Applicable?NotApplicableNosuchcasesduringthereportingperiod.
VIII.SaleofMaterialAssetsandEquityInvestments
1.Saleofmaterialassets
□Applicable?NotApplicableNosuchcasesduringthereportingperiod.
2.Saleofmaterialequityinvestments
□Applicable?NotApplicableIX.AnalysisofMajorSubsidiariesandJointStockCompanies
?Applicable□NotapplicableMainsubsidiariesandjointstockcompanieswithanover10%influenceontheCompany'snetprofit
Unit:RMB
| Companyname | Typeofcompany | Principalactivities | Registeredcapital | Totalassets | Netassets | Operatingrevenue | Operatingprofit | Netprofit |
| ChangshaZoomlionEnvironmentalIndustryCo.,Ltd. | Subsidiary | Smarturbanservice | 2,351,529,800 | 17,721,351,611.36 | 8,074,408,455.97 | 10,689,866,567.16 | 815,342,983.52 | 712,220,602.56 |
Acquisitionanddisposalofsubsidiariesduringthereportingperiod?Applicable□Notapplicable
| Companyname | Acquisitionanddisposalofsubsidiariesduringthereportingperiod | Effectsontheoveralloperationsandperformance |
| HubeiYinglingTestingTechnologyServiceCo.,Ltd. | Businesscombinationnotundercommoncontrol | PositiveeffectsontheCompany'sbusiness |
| LiaochengChipingYingshengEnvironmentalSanitationServiceCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| JiangmenLvyingUrbanEnvironmentalServiceCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| FuzhouChangleYingshengUrbanEnvironmentalServiceCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| ChongqingBananYingheUrbanEnvironmentalServiceCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| GuangzhouYingtaiUrbanManagementServiceCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| FoshanShundeYingchuangUrbanEnvironmentalServiceCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| PuningHonglianEnvironmentalServiceCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| HefeiYingshengUrbanEnvironmentalServiceCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| FengyangYingheEnvironmentalSanitationManagementCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| SanyaYinglianUrbanEnvironmentalServiceCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| FuzhouYingheEnvironmentalDevelopmentCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| ChuzhouTongyingEnvironmentalSanitationManagementCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| YongxinYingheEnvironmentalSanitationManagementCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| LianjiangYinglianUrbanEnvironmentalServiceCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| GuangzhouYingzhiUrbanEnvironmentalSanitationServiceCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| ShenzhenLonggangYinglianEnvironmentalServiceCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| ShenzhenYinglianLandscapingEngineeringCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| YangjiangYingheUrbanEnvironmentalServiceCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| RenshouYingheUrbanandRuralSanitationServiceCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| ChibiYinglianEnvironmentalSanitationManagementCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| ShenzhenLonggangYingjiUrbanServiceCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| WuyiYingheEnvironmentalSanitationManagementCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| XuchangJian'anTongyingEnvironmentalSanitationManagementCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| FoshanShundeYinglianUrbanEnvironmentalServiceCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| TaizhouYingheEnvironmentalSanitationManagementCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| ChangshaYingheEnvironmentalSanitationManagementCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| HuichangYingmaoEnvironmentalManagementCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| TangshanYinglianEnvironmentalManagementCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| YongfengYingheEnvironmentalSanitation | Incorporation | PositiveeffectsontheCompany'sbusiness |
| ManagementCo.,Ltd. | ||
| NanjingYinglianEnvironmentalTechnologyCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| SuzhouWujiangYingheEnvironmentalSanitationManagementCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| XiajiangYingheEnvironmentalSanitationManagementCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| LongquanTongyingEnvironmentalSanitationServiceCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| XinhuaYinglianModernEnvironmentalServiceCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| GuangxiLuochengYingxinUrbanEnvironmentalServiceCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| SuzhouYingfenEnvironmentalIndustryCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| RenshouZhongyingSanitationServiceCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| NantongLianyingEnvironmentalServiceCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| HuazhouLianshengUrbanEnvironmentalServiceCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| HeyuanZijinLianshengUrbanEnvironmentalServiceCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| TangshanYingxingSanitationEquipmentManufacturingCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| QuanzhouYingxinUrbanEnvironmentalServiceCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| ZhejiangYolshIntelligentEmergencyEquipmentCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| HeyangYingheUrbanEnvironmentalServiceCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| XuzhouTongyingEnvironmentalSanitationServiceCo.,Ltd. | Incorporation | PositiveeffectsontheCompany'sbusiness |
| MeishanPengshanZhongfengEnvironmentalIndustryCo.,Ltd. | De-registration | Assetoptimization;NomaterialimpactontheCompany'sproduction,operationandperformance |
| ChengduYinglianEnvironmentalManagementCo.,Ltd. | De-registration | Assetoptimization;NomaterialimpactontheCompany'sproduction,operationandperformance |
| GuangxiGuipingYingheEnvironmentalSanitationManagementCo.,Ltd. | De-registration | Assetoptimization;NomaterialimpactontheCompany'sproduction,operationandperformance |
| ShengzhouYingheEnvironmentalSanitationManagementCo.,Ltd. | De-registration | Assetoptimization;NomaterialimpactontheCompany'sproduction,operationandperformance |
| ChongyangYinglianEnvironmentalProtectionCo.,Ltd. | De-registration | Assetoptimization;NomaterialimpactontheCompany'sproduction,operationandperformance |
| YiyangYinglianEnvironmentalSanitationManagementCo.,Ltd. | De-registration | Assetoptimization;NomaterialimpactontheCompany'sproduction,operationandperformance |
| WanningYinglianEnvironmentalIndustryCo.,Ltd. | De-registration | Assetoptimization;NomaterialimpactontheCompany'sproduction,operationandperformance |
| ShenzhenLonghuaDistrictYinglianUrbanServiceCo.,Ltd. | De-registration | Assetoptimization;NomaterialimpactontheCompany'sproduction,operationandperformance |
| GuangdongInforeSmartTechnologyCo.,Ltd. | De-registration | Assetoptimization;NomaterialimpactontheCompany'sproduction,operationandperformance |
| AnhuaYingshengEnvironmentalSanitationServiceCo.,Ltd. | De-registration | Assetoptimization;NomaterialimpactontheCompany'sproduction,operationandperformance |
| GuchengYinglianUrbanEnvironmentalServiceCo.,Ltd. | Transfer | Assetoptimization;NomaterialimpactontheCompany'sproduction,operationandperformance |
| ZaozhuangYinglianUrbanEnvironmentalServiceCo.,Ltd. | Transfer | Assetoptimization;NomaterialimpactontheCompany'sproduction,operationandperformance |
| YichunYinglianUrbanEnvironmentalServiceCo.,Ltd. | Transfer | Assetoptimization;NomaterialimpactontheCompany'sproduction,operationandperformance |
| ChongqingYinglianUrbanEnvironmentalSanitationServiceCo.,Ltd. | Transfer | Assetoptimization;NomaterialimpactontheCompany'sproduction,operationandperformance |
| HuaibeiZhongfengUrbanEnvironmentalServiceCo.,Ltd. | Transfer | Assetoptimization;NomaterialimpactontheCompany'sproduction,operationandperformance |
Factsheetofmajorsubsidiaries
X.StructuredEntitiesControlledbytheCompany
□Applicable?NotApplicable
XI.FutureProspectsoftheCompany
(I)Marketopportunities
1.The2023nationalpoliciesarefavorableforthedevelopmentofthesanitationindustryOnJanuary30,theMinistryofIndustryandInformationTechnology,togetherwithothersevenstatedepartmentsissuedtheNoticeonOrganizingthePilotProgramofPilotZonesforFullElectrificationofPublicServiceVehicles,requiringthatthereshouldbeasignificantriseintheproportionofnewenergyvehiclesinincrementalandupgradedvehiclesinpilotareas,withan80%levelintermsofbuses,taxis,sanitation,postalandexpressdelivery,andurbanlogisticsvehiclesfueledbynewenergy.Thispolicyisfavorableforthedevelopmentoftheindustry.
TheOpinionsoftheCentralCommitteeoftheCPCandtheStateCouncilonFulfillingtheKeyWorkofComprehensivelyPromotingRuralRevitalizationin2023,whichwasissuedonFebruary13,requiresthateffortsshouldbemadetosolidlyadvancetheimprovementsintherurallivingenvironmentandincreasetheintensityofimprovementsinthevillagepublicspace.Thisdirectlybenefitsthewastecollectionandtransportationequipmentsector.OnMay17,theNationalDevelopmentandReformCommission(NDRC)issuedtheGuidelinesonAcceleratingtheConstructionofChargingInfrastructuretoBetterSupportNewEnergyVehiclePurchasesintheCountrysideandRuralRevitalization.Thispolicyencouragesregionswithsuitableconditionstoincreasesupportfortheadoptionofnewenergyvehicles(NEV)inpublictransport,roadpassengertransport,taxis,lawenforcement,sanitation,andlogistics.
TheStateCouncil,atapolicybriefingheldonJune21,announcedapilotprogramforthefullelectrificationofpublicvehicles.Thisprograminvolvesanimplementationplanforheavy-dutytruckelectrification,andaccelerationoftheelectrificationofurbanbuses,logisticsvehicles,taxis,sanitationvehicles,andheavytrucks.
OnJune30,theGeneralOfficeofNDRCandotherdepartmentsissuedtheNoticeonAddressingShortcomingsinPublicSanitationandEnvironmentalFacilitiesandCarryingOutClean-upandRectificationinUrbanandRuralEnvironmentalSanitation.Thisnoticesetsoutinitiativestoimproveurbanenvironmentalsanitationandrurallivingenvironments,andaddressdeficienciesinurbanandruralwasteandsewagetreatment.
OnJuly25,theNDRCissuedtheNoticeontheActionPlanforUpgradingEnvironmentalInfrastructureConstruction(2023-2025).Thisplancallsforacceleratingimprovementsindomesticwastesortingfacilitiesandsystems,reasonablyblueprintingtheconstructionofcollectionpoints,stations,andtransfercompressionstations,andenhancingcollectionandtransportationnetworks.Thisdocumentalsoaimstoaddresstheshortageofdomesticwasteincinerationcapacityincounty-levelregionsbyencouragingtheuseofthemodelofcollectionatvillages,transportationintowns,andprocessingincountiesornearbytopromotetheconstructionoffacilitiesintownswithestablishedstatusandruralareas.
OnJuly31,theNDRCandotherdepartmentsissuedtheNoticeonSeveralMeasurestoPromoteAutomobileConsumption.Thispolicyencouragesthepurchaseofnewenergyvehiclesforgovernmentagencies,publictransport,taxis,postalservices,sanitation,andlandscapinginappropriateareaswhennewvehiclesareneededoroldvehiclesneedtobeupgraded.
OnAugust25,theMinistryofIndustryandInformationTechnologyandsixotherdepartmentsissuedtheNoticeontheWorkPlanforStabilizingGrowthintheAutomobileIndustry(2023-2024).Thisplanrequiresorganizingthepilotprogramofpilotzonesforfullelectrificationofpublicservicevehicles,acceleratingtheadoptionofnewenergybuses,taxis,sanitation,postalandexpressdelivery,andurbanlogisticsvehicles,studying,exploringandpromotingpilotprojectsforzero-emissionheavy-dutytruckinregionalfreighttransporttofurtherincreasetheelectrificationlevelofpublicservicevehicles.Italsocallsforcomprehensivelypromotingthedemonstrationoffuelcellvehiclesandsteadilyincreasingtheapplicationsoffuelcellvehicles.
OnOctober24,thesixthmeetingofthe14thStandingCommitteeoftheNationalPeople'sCongressadoptedaresolutionontheissuancebytheStateCouncilofadditionalgovernmentbondsandtheplantoadjustthe2023centralbudget.ThecentralgovernmentissuedanadditionalRMB1trillionof2023governmentbondsinthefourthquarter.Thesefundswereallocateddirectlytolocalgovernmentsthroughtransferpayments,forthemtofocusonrebuildingdisaster-strickenareasandaddressingdeficienciesindisasterpreventionandreliefinfrastructure.
OnNovember15,theMinistryofIndustryandInformationTechnology,theMinistryofTransport,andsixotherdepartmentsissuedtheNoticeonLaunchingtheFirstBatchofPilotProgramofPilotZonesfortheFullElectrificationofPublicServiceVehicles.Thisnoticeidentifiesfifteencities,namelyBeijing,Shenzhen,Chongqing,Chengdu,Zhengzhou,Ningbo,Xiamen,Jinan,Shijiazhuang,Tangshan,Liuzhou,Haikou,Changchun,YinchuanandOrdos,aspilotzonestoexplorereplicableexperiencesandmodels,toplayademonstrativeandleadingroleinthefullmarketexpansionofNEVsandthedevelopmentofagreenandlow-carbontransportsystem.ThedocumentsetsoutapilotprogramthatfocusesonpromotingNEVsinvarioussectors,includinggovernmentvehicles,citybuses,sanitationtrucks,taxis,postalanddeliveryvehicles,urbanlogisticsvehicles,airportvehicles,andheavy-dutytrucksforspecificapplications,andthegoalistodeployover600,000NEVs.
OnNovember21,thethirdroundofcentralecologicalandenvironmentalinspectioncommenced,withfiveinspectionteamsdispatchedtoFujian,Henan,Hainan,Gansu,andQinghaiforamonth-longinspection.Theinspectionsfocusedonenvironmentalissuesinimplementationofmajorregionalstrategies,majorecologicaldamage,environmentalpollution,environmentalrisks,andrelatedresponses;environmentalinfrastructureconstructionandoperation;rectificationofissues,ecologicalandenvironmentalissuesthathavebeenraisedbythepeopleasmajorconcerns;andtheimplementationoftheprinciplethatbothPartycommitteesandgovernmentstakeresponsibility,andofficialsperformtheirdutieswhilealsotakingresponsibilityforecologicalandenvironmentalprotection.
OnNovember30,theStateCouncilissuedtheNoticeontheActionPlanforContinuousImprovementofAirQuality.ThisplansetsouttargetsofreducingPM2.5concentrationsby10%comparedto2020levels,andlimitingtheproportionofdayswithsevereorsevererairpollutiontolessthan1%inallprefecture-levelandabovecities;reducingPM2.5concentrationsby20%intheBeijing-Tianjin-HebeiRegionandsurroundingareas,and15%inFenweiPlain,andachievingoverallcompliancewithnationalstandardsonPM2.5concentrationinYangtzeRiverDeltaRegion,andmaintainingBeijing'sPM2.5concentrationbelow32microgramspercubic
meter.Inkeyregions,atleast80%ofnewlyaddedorupdatedpublicbuses,taxis,urbanlogisticsvehicles,andlightsanitationvehiclesshouldbefueledbynewenergy.Inprefecture-levelandabovecities,themechanicalcleaningrateofroadswithinthebuilt-upareashouldreacharound80%,andthemechanicalcleaningrateofroadsincountiesshouldreacharound70%.OnDecember25,theMinistryofEcologyandEnvironmentissuedtheNoticeonIssuingtheComprehensiveActionPlanforTacklingAirPollutionintheBeijing-Tianjin-HebeiRegionandSurroundingAreasandtheFenweiPlainduringtheAutumnandWinterof2023-2024.ThisplanrequiresthatbytheendofDecember2023,theconstructionorrenovationofVOCstreatmentfacilitiesshouldbecompletedat1,040enterprises,andVOCsfugitiveemissionsshouldbeaddressedat1,217enterprises.Atleast80%ofnewlyaddedorupdatedpublicservicevehicles,suchaspublicbuses,taxis,logisticsvehicles,andlightsanitationvehicles,shouldbefueledbynewenergy.
2.ThedemandforurbanserviceswillkeepincreasingThesourceofurbanservicesrevenueisthegovernmentbudgetwiththenatureofrigidexpenditureandislessaffectedbymacroeconomicregulationfactors.Thebusinessischaracterizedbycontinuityandstability.
(1)ThescaleofdemandforservicesdrivenbyurbanizationAsurbanizationcontinues,theconstructionofurbanroadswilldirectlyincreasetheareaforroadcleaning,urbanhousing,compoundconstruction,andurbangreening,henceincreasingthedemandforenvironmentalprotectionequipmentandurbancleaningservices.Furthermore,sanitationisoneoftheprerequisitesforeachprovince,city,anddistricttoconstructurbanupgradessuchas"nationalcivilizedcities","nationalhygieniccities","nationalmodelcitiesofenvironmentalprotection",and"nationalecologicalgardencities".From2015to2022,theareaofroadcleaninginChina'scitiesandcountiesincreasedfrom9.678billionsquaremetersto13.337billionsquaremeters,anoverallincreaseofnearly37.8%;thedomesticwasteremovedandtransportedincitiesandcountiesrosefrom258milliontonsto317milliontons,anoverallgrowthof22.9%,accordingtothestatisticsfromtheNationalBureauofStatisticsandtheMinistryofHousingandUrban-RuralDevelopment.Drivenbyurbanization,thereleaseofurbanservicedemandisconstantlyfacilitatedinordertomaintainthecleanlinessandsanitationofurbanroads,residentialcompounds,andmunicipalgardens,aswellasthenormaltransferandtreatmentofdomesticwaste.
(2)The"BeautifulCountryside"kick-started,andtheruralsanitationmarketisgraduallygainingmomentumTheFive-YearActionPlanfortheRemediationandImprovementofRuralLivingEnvironment(2021-2025)requiresthat"theruraltoiletrevolutionshallbefirmlyimplemented","thepromotionofruraldomesticsewagetreatmentshallbeaccelerated",and"thestandardofruraldomesticwastetreatmentshallbeimprovedcomprehensively".Intheeraofbuilding"beautifulvillages"andboostingurbanandruralsanitationintegration,projectslikepromotionbyallcountiesandcomprehensivemanagementhaveemergedcontinuouslyandtheruralsanitationmarketwillenteranewstageforfurtherrapidmarketexpansion.Thiswillcreatevastopportunitiesforurbanservicesandtheentiresanitationindustry.
(3)ContinuedpromotionofwasteclassificationandthecontinuedreleaseofmarketdemandInSeptember2020,PresidentXiJinpingchairedthemeetingoftheCentralComprehensivelyDeepeningReformsCommission,atwhichtheSeveralOpinionsonFurtherPromotingDomesticWasteClassificationwasdeliberatedandapproved.Theacceleratedimplementationofwasteclassificationpolicieswouldoverturnthetraditionaldomesticwastecollectionandtransportationsystem.Conventionalsanitationvehicleswillnolongermeettheneedsofclassifiedcollectionandtransportation.Domesticwasteistreatedinfoursteps,namely"dumping","collection","transportation",and"disposal",requiringupgradesandrenovationoftraditionalsanitationtechnologyandequipment.Additionally,makingthesystemsmartrequiresincreasedinvestment,spurringacontinuousreleaseofmarketdemand.
(4)Fullelectrificationofpublicservicevehiclesandincreasingdemandfornewenergy-poweredenvironmentalprotectionequipmentOnJanuary30,2023,theMIIT,togetherothersevenotherstatedepartmentsissuedtheNoticeonOrganizingthePilotProgramofPilotZonesforFullElectrificationofPublicServiceVehicles,settingouttolaunchnationwidepilotprogramsofpilotzonesforfullelectrificationofpublicservicevehiclesfrom2023to2025.ThedocumentrequiresthatthereshouldbeasignificantriseintheproportionofNEVsinincrementalandupgradedvehiclesinpilotareas,withan80%levelintermsofbuses,taxis,sanitation,postal
andexpressdelivery,andurbanlogisticsvehiclesfueledbynewenergy.Since2012,Chinahasmadeaguidingpolicytoacceleratethecultivationofthenewenergyvehicleindustry,andhassuccessivelyreleasedimportantdocumentsforitspromotion.Afteraperiodofdevelopment,newenergy-poweredsanitationvehiclesarepoisedforsignificantgrowth.
(5)TheincreasingmechanizationwilldrivethegrowthintheenvironmentalprotectionequipmentmarketTheincreaseinmechanizationrateofthesanitationindustrywillreducethecostofsanitationoperationsandrelievethefinancialburdenofgovernmentsandenterprises.WiththeexpansionofChina'surbanandruralroadcleaningareas,themechanizationrateofthesanitationindustryisgraduallyincreasing.Accordingtothe2022UrbanandRuralConstructionStatisticalYearbook,attheendof2022,themechanicalcleaningspaceofroadsincitiesacrossthecountryreached11.1billionsquaremeters,withamechanizationrateof79.7%;themechanicalcleaningspaceofroadsincountiesacrossthecountryreached2.4billionsquaremeters,withamechanizationrateof78.4%.ThisindicatesthatthereisstillroomfordevelopmentintermsofthemechanizationlevelofsanitationindustryinChina.Inthefuture,aslaborcostscontinuetorise,themechanizationofsanitationoperationswillbecomethemaindevelopmentdirectionofthedomesticsanitationmarket,anditwillcoverroadcleaning,guardrailcleaning,wastecollection&transportation,andothersegments.
(6)ThetrendofagingpopulationwilldrivetheexpansionoftheenvironmentalprotectionequipmentmarketThefrequentadjustmentsmadebyChinaintermsofminimumwagesindifferentcitieshavelargelyinfluencedtheoperatingcostsofurbanserviceenterprises.Thedefectsincludinghighoperatingcostsandlowworkingefficiencyinthetraditionalmanualurbanservicemodelhaveincreasedthebusinesspressureonsanitationoperationenterprises.Furthermore,China'selderlypopulationreached297millionattheendof2023,accountingfor21.1%ofthenation'stotalpopulation,accordingtotheStateStatisticsBureau.Theagingtrendwillexacerbatetheworkforcedeficitintheurbanserviceindustry.Meanwhile,withthediversificationofjoboptions,thenumberofyoungandmiddle-agedlaborerswhoarewillingtoengageinsanitationworkisalsodecreasing.Therefore,improvingthemechanizationrateofthesanitationindustryandexpandingtheuseofenvironmentalprotectionequipmentisnotonlyarealisticneedinthefaceofthelabormarketshortage,butalsotherequirementforthedevelopmentofurbansanitationlevel.
(7)IndustrialbreakthroughfueledbytechnologicaladvancementTherapiddevelopmentof5GandAItechnologyhaswidenedindustrialboundariesandopenedupaslewofnewopportunities.Small-sizedsmartdevicesandsmartserviceswillbethenewbonanza,introducingnewvariablesandincrementsforthesector.Smart,lesshumanized,orevenunmannedsanitationwillbeageneraltrend.
(II)Businessplanfor2023In2023,theCompanycloselyrevolvedarounditsdevelopmentstrategyandannualbusinessplan,focusingonitscorestrategicbusiness.Itimprovedinternaloperations,andactivelypromotedsmarturbanservices,achievingitsbusinessplanrelativelywellfor2023.TheCompany'sbusinesstargetssetatthebeginningoftheyearwere:RMB80billionintheplannedcumulativecontractamountofsmarturbanservicesandRMB6.5billioninannualrevenue.TheactualplannedcumulativecontractamountofsmarturbanservicesreachedRMB60.018billion,whileannualrevenuepostedRMB5.63billion.
In2023,theCompanyfailedtoaccomplishitsannualrevenuetargetofRMB6.5billionforsmartservices,withanachievementrateof86.62%.ItalsofailedtoaccomplishitsoperatingtargetofRMB80billionintotalcontractamount,withanachievementrateof75.02%.ThereasonfortheCompany'sfailuretoachievetheoperatingtargetofthetotalcontractamountisadecreaseinorderswithlongcyclesofmorethan5yearsinthemarket,resultinginaslightdecreaseinthetotalcontractamountofordersobtainedbytheCompany.In2024,theCompanywilltakeintoaccountthemarkettrends,diversifyitsoperationsandactivelyattractshort-andmedium-cycleprojects.2024operatingtarget:toachieveacumulativecontractamountofRMB100billionforsmarturbanservicesolutions,andtorealizeanannualrevenueofRMB10billion;from2020to2024,theplannedcumulativecontractamountwouldbeRMB100billion,soastoachieveanannualrevenueofRMB10billion.TheCompanywillcontinuetoincreaseresourceinputinitsstrategiccorebusiness,smarturbanservice,strivingtobeoneofthetop-rankingenterprisesintheindustryinthenextfiveyears.
In2024,theCompanywillcontinuetofollowitsstrategyoftechnologyandproductleadership,withfurtherfocusonitscorebusiness–smarturbanservices.Atthesametime,itwillexpanditspresenceinnewenergyproducts,includingsolarpanelbracketsaswellasenergystorageproductsforindustrialandcommercialpurposes.
(III)Planforuseoffunds
2024isakeyperiodfortheCompany'srapiddevelopment.Givenitsbigdemandforfunding,theCompanywillmakeafundingsupplyanddemandplanthatfitsitsdevelopment.Apartfrommakingfulluseofitsownfunds,theCompanywillalsofurtherstrengthenthemanagementofaccountsreceivablewhileoptimizingthefinancialstructuretoenablestrongfinancialguaranteesforitsbusinessdevelopmentandcontrolfinancialrisks.Themainfundingsourcesarediverse,includinganyandcombinationofissuanceoffinancingbills,medium-termnotes,cashflowsfromoperatingactivities,andbankloans.
(IV)MainriskfactorsthatmayadverselyaffecttheachievementoftheCompany'sfuturedevelopmentstrategiesandbusinessobjectives
1.Policy-relatedrisks
Asthestateattachesmoreimportancetoenvironmentalprotectionandenvironmentalgovernance,unprecedenteddevelopmentopportunitieswillalsoappearintheenvironmentalprotectionindustry,butsuchindustryisalsohighlydependentonnationalindustrialpoliciessinceitistypicallypolicy-driven.Adjustmentstomacroeconomicpolicies,taxpolicies,environmentalindustrypoliciesandenvironmentalmanagementpolicieswillaffecttheCompany'sperformance.
Countermeasures:Toraisethescientificdecision-makingcapacityofmanagersandboosttheCompany'sresilienceagainstpolicy-relatedrisks,theCompanywillpaycarefulattentiontochangesinnationalmacroeconomicpoliciesandstrengthenresearchandanalysisofindustrypolicies.
2.Operationmanagementrisks
AstheCompanycontinuouslyexpandsitsbusinessscale,enrichesitsbusinesstypes,broadensitsmarketsanddevelopsmoresubsidiaries,itsassetscale,personnelscaleandorganizationscalearealsoundergoingrapidexpansion,causingitsorganizationalstructureandmanagementsystemtobecomemorecomplex.AlthoughtheCompanyhasformedacompletesetofmanagementpoliciesforinternalcontrolandimproveditannually,thedifficultiesandrisksinthemanagementandcontrolarestillincreasingduetothedifferencesinindustryattributes,geographicdistribution,culturalcharacteristicsandcorporatecultureofitsbranchinstitutions.
Countermeasures:theCompanyisconcentratingonstrengtheningthemanagementandriskcontrolsystems,furtherimprovingtheoperationmanagementsystemandbusinessprocess,continuingtorefinemanagement,andstrengtheningtheriskcontrolandcultureofsubsidiaries,allwhilestrengtheningthetalentteam.
3.Heightenedmarketcompetitionrisks
ThesanitationindustryinChinaisanemergingcomprehensiveindustrythatisstillintheearlystagesofmarketizationandhasarelativelylowlevelofconcentration.However,theindustryiscurrentlyinaperiodofrapidgrowth.Withitsrapidgrowth,theinvolvementofupstreamanddownstreamenterprises,andthecontinuousparticipationofnewenterprisesindifferentsectors,marketcompetitionwillcontinuetointensify.TheCompanywilllikelyfacetheriskoflosingmarketshareinthefuture.Countermeasures:theCompanywillcontinuetopursueatechnology-drivendevelopmentstrategyinordertopreserveitstechnologicalleadershipintheindustryand,asaresult,solidifyitsmarketleadership.
XII.VisitsPaidtotheCompanyforPurposesofResearch,Communication,andInterviewduringtheReportingPeriod?Applicable□Notapplicable
| Time | Venue | Method | Visitortype | Visitor | Maincontentofdiscussionandmaterialsprovided | Referenceofthestudy'sbasicinformation |
| April24, | Foshan, | Byphone | Institution | HarvestFund,China | Operatingstatus | Fordetails,pleasereferto |
| 2023 | GuangdongProvince | FutureCapital,HaitongSecurities,GreenwoodsAssetManagement,GFSecurities,ChangjiangSecurities,HuataiSecurities,HuataiSecuritiesAssetManagement,ChinaMerchantsSecurities,NationalGreenDevelopmentFund,TianfengSecurities,SoochowSecurities,IndustrialSecurities,GuotaiJunanSecurities,EverbrightSecurities,HuachuangSecurities,etc. | andR&DdirectionoftheCompany | theRecordSheetInvestorRelationsActivitiesdisclosedbytheCompanyonApril24,2023onCninfo(www.cninfo.com.cn) | ||
| May12,2023 | "InteractivePlatformforInvestorRelations"onPanoramaNetwork | OnlinecommunicationonInternetplatform | Others | Investors | BusinessdevelopmentstatusandfuturebusinessstrategyoftheCompany'ssegments | Fordetails,pleaserefertotheRecordSheetofInvestorRelationsActivitiesdisclosedbytheCompanyonMay12,2023onCninfo(www.cninfo.com.cn) |
| December17,2023 | Foshan,GuangdongProvince | Byphone | Institution | ChangjiangSecurities,NortheastSecurities,CITICSecurities,HarvestFund,PenghuaFundManagement,ChinaLifeAsset,MinshengRoyalFund,OrientFund,ABC-CAFundManagement,etc. | MarketsituationandcorecompetitivenessoftheCompany'sproducts | Fordetails,pleaserefertotheInvestorRelationsActivitiesdisclosedbytheCompanyonDecember18,2023onCninfo(www.cninfo.com.cn) |
XIII.ImplementationoftheActionPlanforQualityandReturnImprovements
WhethertheCompanydisclosedtheActionPlanforQualityandReturnImprovements.
□Yes?No
PartIVCorporateGovernance
I.GeneralInformationofCorporateGovernance
1.TheCompanycontinuouslyperfectsitscorporategovernancestructureinstrictaccordancewiththerequirementsoftheCompanyLaw,theSecuritiesLawandtherelevantlawsandregulationsoftheCSRC.TheBoardofDirectorshasfourspecialcommittees,namely,StrategyCommittee,AuditCommittee,NominationCommittee,andRemuneration&AppraisalCommittee,dedicatedtoprovidingadviceandrecommendationstoensuretheBoardofDirectors'deliberationanddecision-makingareprofessionalandefficient.
2.TheCompanyconvenestheAnnualGeneralMeetingofShareholdersinstrictaccordancewiththerelevantprovisionsoftheArticlesofAssociationandRulesofProcedureforGeneralMeetingofShareholders.TheBoardofDirectors,whichisthedecision-makingbodyoftheCompany,conscientiouslyimplementstheresolutionsofGeneralMeetingsofShareholders.TheBoardofSupervisorsexercisesitssupervisoryauthoritiesandpowersinstrictaccordancewiththeregulations,anditsupervisesthefinancialaffairsoftheCompanyaswellasdutyperformanceandactionsofdirectorsandseniorofficers,thussafeguardingthelegitimaterightsandinterestsoftheCompanyandallshareholders.TheManagementoftheCompanystrictlyimplementstheresolutionsofGeneralMeetingsofShareholdersandMeetingsoftheBoardofDirectorsandexecutesdecisions.AllfunctionaldepartmentsandsubsidiariesoftheCompanyareresponsibleforday-to-dayoperations.
3.Duringthereportingperiod,inordertoregulateitsinsiderinformationmanagement,ensureconfidentialityofinsiderinformationandeffectiveregistrationandmanagementofinsiderswhohaveaccesstoinsiderinformation,effectivelypreventsecuritiesviolationsoflawsandregulationssuchasinsidertrading,maintainthefairnessofinformationdisclosure,andprotectthelegitimaterightsandinterestsofthegeneralinvestors,theCompanypromptly,truthfullyandfullyrecordedallthepersonswithaccesstotheinsiderinformationbeforedisclosureatstagessuchasdiscussionandplanning,demonstrationandconsultation,establishmentandinphasessuchasreporting,transmission,preparation,examination,resolution,anddisclosure,aswellrelevantinformationarchivesregardingthecontent,time,place,basisandmethod,etc.fortheinsiderstoknowtheinsiderinformation,andfilewiththerelevantregulatoryauthoritiestostrictlypreventtheoccurrenceofinsidertrading,pursuanttothelawsandregulationssuchastheSecuritiesLaw,theMeasuresfortheAdministrationofInformationDisclosurebyListedCompanies,aswellastherelevantprovisionsoftheArticlesofAssociation,InformationDisclosureManagementPolicy,andPolicyonInternalReportingofMaterialInformationoftheCompany.
4.TheCompanydisclosesinformationinstrictaccordancewiththeprovisionsoftheCompanyLaw,theSecuritiesLaw,theRulesGoverningtheListingofSharesonSZSE,andotherrelevantlaws,regulationsandnormativedocuments,aswellastheInformationDisclosureManagementPolicy,toensurethatitmakestrue,accurate,complete,timelyandfairinformationdisclosuretoincreasetheopennessandtransparencyofitsoperations.TheCompanyhasreceivednodisciplinaryactionssuchascriticismandreprimandfromthestockexchangeforissuesrelatingtoinformationdisclosure.Duringthereportingperiod,therewerenogovernanceirregularitiessuchastheprovisionofundisclosedinformationtothecontrollingshareholderandthedefactocontroller.
5.Duringthereportingperiod,therewasnochangeinthestockpricearisingfromleakageofinsideinformationoftheCompany.Aspartofitsnextsteps,theCompanywillconstantlyimproveitscorporategovernancestructure,furtherstandardizecorporateoperations,andraisethelevelofcorporategovernancepursuanttorelevantlawsandregulationsaswellastherequirementsoftheSZSE.Astotheactualstatusofcorporategovernancewhetherthereisanymaterialdeparturefromlaws,administrativeregulationsandtherulesissuedbytheCSRConlistedcompanygovernance
□Yes?NoAstotheactualstatusofgovernanceoftheCompany,thereisnomaterialnon-compliancewithlaws,administrativeregulations,andtherulesissuedbytheCSRConthegovernanceoflistedcompanies.
II.IndependenceoftheCompanyfromtheControllingShareholderandDeFactoControllerandonEnsuringCompany'sAssets,Personnel,Finance,StructureandBusinessesandOtherAspects
TheCompanyiscompletelyindependentofthecontrollingshareholderintermsofbusinesses,personnel,assets,organizationandfinance,etc.,andhasfullyindependentbusinessesandoperationcapacity.Detailsareasfollows:
(1)Businessindependence:TheCompany'sbusinessesareindependentofthecontrollingshareholder,andthecontrollingshareholderanditsaffiliatesarenotengagedinanybusinessesincompetitionwiththeCompany.
(2)Personnelseparation:ThepersonneloftheCompanyareindependentofthecontrollingshareholder,andthePresident,CFO,BoardSecretaryandotherseniorofficersoftheCompanydonotholdpositionsotherthandirectorsinthecontrollingshareholder,thefinancialofficersoftheCompanydonothaveapart-timejobinaffiliatedcompanies.TheCompanyhasputinplaceindependentpoliciesonlabor,personnelandremunerationmanagementandestablishedanindependentlaborandpersonnelmanagementdepartment.Thus,itslabor,personnelandremunerationmanagementarecompletelyindependent.
(3)Integrityofassets:TheCompanyownsindependentandcompleteassetsandhasindependentproduction,supplyandsalessystems,andthereisnohorizontalcompetitionbetweentheCompanyanditscontrollingshareholderinthemanufacturingandoperationofthesameproducts.
(4)Organizationalindependence:TheCompanyisorganizationallycomplete,andthereisnosuperior-subordinaterelationshipbetweenitscontrollingshareholderandfunctionaldepartmentsthereofandtheCompanyandfunctionaldepartmentsthereof.TheCompany'sBoardofDirectors,BoardofSupervisorsandotherinternalinstitutionsoperatefullyindependently.
(5)Financialseparation:TheCompany'sfinanceisentirelyindependent,withanindependentfinancialdepartment.Ithasalsoestablishedanindependentaccountingsystemandfinancialaccountingmanagementpolicydedicatedtoindependentaccounting,independentopeningofbankaccountsandindependenttaxpayment.
III.HorizontalCompetition
□Applicable?NotApplicableIV.AnnualandExtraordinaryGeneralMeetingsofShareholdersConvenedDuringtheReportingPeriod
1.Generalmeetingsofshareholdersconvenedduringthereportingperiod
| Meeting | Type | Investorparticipationratio | Dateofthemeeting | Disclosuredate | Meetingresolution |
| Thefirstextraordinarygeneralmeetingofshareholdersin2023 | Extraordinarygeneralmeetingofshareholders | 45.17% | January12,2023 | January13,2023 | TheAnnouncementontheResolutionsoftheFirstExtraordinaryGeneralMeetingofShareholdersin2023(AnnouncementNo.:2023-004)waspublishedontheSecuritiesDaily,theSecuritiesTimes,theChinaSecuritiesJournal,andCninfo(http://www.cninfo.com.cn),whicharethemediadesignatedbytheCompanyforinformationdisclosure. |
| The2022Annual | AnnualGeneral | 72.23% | May22,2023 | May23,2023 | TheAnnouncementontheResolutionsofthe2022Annual |
| GeneralMeetingofShareholders | MeetingofShareholders | GeneralMeetingofShareholders(AnnouncementNo.:2023-030)waspublishedontheSecuritiesDaily,theSecuritiesTimes,theChinaSecuritiesJournal,andCninfo(http://www.cninfo.com.cn),whicharethemediadesignatedbytheCompanyforinformationdisclosure. |
2.Extraordinarygeneralmeetingofshareholdersconvenedattherequestofpreferenceshareholderswithresumedvotingrights
□Applicable?NotApplicableV.Informationofdirectors,supervisorsandseniorofficers
1.Basicinformation
| Name | Gender | Age | Position | Incumbent/Former | Startoftenure | Endoftenure | Beginningnumberofsharesheld | Numberofsharesincreasedduringtheperiod | Numberofsharesdecreasedduringtheperiod | Otherchanges | Endingnumberofsharesheld | Reasonsforshareincrease/decrease |
| MaGang | Male | 45 | ChairmanoftheBoardandPresident | Incumbent | December4,2014 | January11,2026 | 1,654,600 | 0 | 0 | 0 | 1,654,600 | N/A |
| SuBin | Male | 46 | Director | Incumbent | September6,2021 | January11,2026 | 0 | 0 | 0 | 0 | 0 | N/A |
| KuangGuangxiong | Male | 45 | Director | Incumbent | January30,2019 | January11,2026 | 0 | 0 | 0 | 0 | 0 | N/A |
| ShenKe | Male | 53 | Director | Incumbent | January30,2019 | January11,2026 | 0 | 0 | 0 | 0 | 0 | N/A |
| ZhangYu | Male | 46 | IndependentDirector | Incumbent | December26,2019 | January11,2026 | 0 | 0 | 0 | 0 | 0 | N/A |
| LiRuidong | Male | 47 | IndependentDirector | Incumbent | December26,2019 | January11,2026 | 0 | 0 | 0 | 0 | 0 | N/A |
| LiYingzhao | Male | 62 | IndependentDirector | Incumbent | January12,2023 | January11,2026 | 0 | 0 | 0 | 0 | 0 | N/A |
| JiaoWanjiang | Male | 43 | ChairmanoftheBoardofSupervisors | Incumbent | November14,2016 | January11,2026 | 308,692 | 0 | 0 | 0 | 308,692 | N/A |
| LiuKan | Male | 40 | Supervisor | Incumbent | December26,2019 | January11,2026 | 0 | 0 | 0 | 0 | 0 | N/A |
| LinMeiling | Female | 39 | EmployeeSupervisor | Incumbent | November14,2016 | January11,2026 | 0 | 0 | 0 | 0 | 0 | N/A |
| WangQingbo | Male | 48 | VicePresident&CFO | Incumbent | April29,2022 | January11,2026 | 800 | 0 | 0 | 0 | 800 | N/A |
| JinTaotao | Male | 41 | VicePresidentandSecretaryof | Incumbent | December26,2019 | January11,2026 | 0 | 0 | 0 | 0 | 0 | N/A |
| theBoardofDirectors | ||||||||||||
| Total | -- | -- | -- | -- | -- | -- | 1,964,092 | 0 | 0 | 0 | 1,964,092 | -- |
Whetheranydirectororsupervisorleftofficeoranyseniorofficerwasdismissedduringtheirtenureduringthereportingperiod
□Yes?NoChangesoftheCompany'sdirectors,supervisorsandseniorofficers?Applicable□Notapplicable
| Name | Positionheld | Type | Date | Reason |
| LiYingzhao | IndependentDirector | Elected | January12,2023 | Newmemberelection |
2.Positionandbiographicalinformation
Professionalbackgrounds,majorworkexperienceandcurrentpostsintheCompanyoftheincumbentdirectors,supervisorsandseniorofficers:
1.Mr.MaGang,bornin1979,holdingamaster'sdegree,isChairmanoftheTenthBoardofDirectorsofInforeEnviro.StartinginDecember2014,hehasbeenservingasPresidentoftheCompany.HejoinedMideaGroupinJune2001,andheldsuccessivelythepositionsofR&DEngineer,branchsalesmanandRegionalDirectoratMideaRiceCookerDivision,GeneralManageratMideaSmallDomesticApplianceSalesCompanyinChina,PresidentofChinaMarketingHeadquartersofMideaDailyHomeElectricApplianceGroup,VicePresidentandDomesticSalesGeneralManageratMideaSmallDomesticApplianceDivision,VicePresidentofMideaSmallDomesticApplianceDivisionandGeneralManageratMideaWaterMaterialProductCompany,andDeputyDirectoratMideaDomesticMarketDepartment.
2.Mr.SuBin,bornin1978,holdingaMaster'sdegree,isDirectoroftheTenthBoardofDirectorsofInforeEnviro.StartinginOctober2020,hehasbeenVicePresidentofInforeGroupCo.,Ltd.FromMarch2013toOctober2020,heheldsuccessivelythepositionsofExecutivePresidentandPresidentofFosunGroup'sEnergyandEnvironmentGroup,aswellastheExecutivePresidentandVicePresidentofFosunCapital,etc.HewasaPartnerofMingliChinaGrowthFundfromJanuary2009toFebruary2013andanExecutiveDirectorofHongshangIndustrialHoldingGroupCo.,Ltd.fromMarch2003toDecember2008.
3.Mr.KuangGuangxiong,bornin1979,holdingamaster'sdegree,isaPRCCertifiedPublicAccountantandInternationalAccountant,inadditiontoDirectoroftheTenthBoardofDirectorsofInforeEnviro.HehasbeenVicePresidentofInforeGroupfromOctober2018tillnow.FromJuly2002toOctober2018,heheldsuccessivelythepositionsofFinancialManageratMideaDailyHomeElectricApplianceGroup,FinancialManageratMideasubsidiaryintheUS,FinancialDirectoratMideaKitchenAppliancesDivision,FinancialDirectoratMideaCommercialAirConditionerDivision,andFinancialDirectoratMidea-KUKAJointVentureinChina.
4.Mr.ShenKe,bornin1971,holdingamaster'sdegree,isDirectoroftheTenthBoardofDirectorsofInforeEnviro.HehasbeenVicePresidentofZoomlionHeavyIndustryScienceandTechnologyCo.,Ltd.fromSeptember2020tillnow.FromJuly2003toSeptember2020,heheldthepositionsofHeadoftheInvestmentDevelopmentDepartment,BoardSecretary,andInvestmentDirectoratZoomlionHeavyIndustryScienceandTechnologyCo.,Ltd.
5.Mr.ZhangYu,bornin1978,holdingadoctoratedegree,isIndependentDirectoroftheTenthBoardofDirectorsofInforeEnviro.HehasservedasAssociateProfessorandProfessoratChinaEuropeInternationalBusinessSchoolsince2015tillnow,andheldthepositionofAssistantProfessoratUniversityofCalifornia,Irvinefrom2008to2015.
6.Mr.LiRuidong,bornin1977,holdingabachelor'sdegree,isIndependentDirectoroftheTenthBoardofDirectorsofInforeEnviro.HehasbeenPresidentandEditor-in-chiefattheChinaEnvironmentMagazinesinceNovember2013tillnow.HeservedasAssistanttoGeneralManagerofEnvironmentalProtectionMagazineCo.,Ltd.fromFebruary2012toNovember2013,andDirectoroftheOfficeoftheEnvironmentalProtectionMagazinefromMarch2008toJanuary2012.
7.Mr.LiYingzhao,bornin1962,holdingadoctoratedegree,isProfessorofAccountingatSchoolofBusinessAdministration,SouthChinaUniversityofTechnology,andheservesasIndependentDirectoroftheTenthBoardofDirectorsofInforeEnviro.HealsocurrentlyservesasIndependentDirectoratGuangdongTLOONGTechnologyGroupCo.,Ltd.,andExternalSupervisorofNanhaiRuralCommercialBankCo.,Ltd.HeservedasIndependentDirectoratsuchlistedcompaniesasGuangzhouFriendshipGroupCo.,Ltd.andShenzhenZhongjinLingnanNonfemetCo.,Ltd.HehasparticipatedintheSZSEtrainingandreceivedtheIndependentDirectorQualification.
8.Mr.WangQingbo,bornin1976,holdingabachelor'sdegree,isVicePresidentandCFOofInforeEnviro.HepreviouslyservedasVicePresidentandVicePresidentofFinanceatGuangdongNVCLightingTechnologyCo.,Ltd.,VicePresidentofFinanceatGuangdongXinbangLogisticsCo.,Ltd.,CFOatMideaAnntoLogisticsDivision,DeputyCFOatMideaSmallDomesticApplianceDivision,FinancialManageratMideaIndustrialDesignCompany,andFinancialSupervisoratMideaFanFactory.
9.Mr.JinTaotao,bornin1983,holdingamaster'sdegree,isVicePresidentandBoardSecretaryofInforeEnviro.HeheldthepositionsofEngineerattheEnvironmentalPlanningInstituteoftheMinistryofEcologyandEnvironment(formerlytheMinistryofEnvironmentalProtection)fromSeptember2005toApril2016,VicePresidentatInforeEnvironmentTechnologyGroupCo.,Ltd.fromMay2016toJune2019,andBoardSecretaryatStariverEnvironmentalTechnologyCo.,Ltd.fromJuly2019toNovember2019.Mr.JinTaotaojoinedtheSZSEboardsecretariestrainingprograminNovember2019andobtainedthequalificationcertificateforBoardSecretary.
10.Mr.JiaoWanjiang,bornin1981,holdingamaster'sdegree,isChairmanoftheTenthBoardofSupervisorsofInforeEnviro.HeiscurrentlytheGeneralManageroftheBusinessDepartmentofInforeEnvironmentTechnologyGroupCo.,Ltd.HesuccessivelyservedasHeadoftheOperationManagementDepartmentandGeneralManageroftheSolidWasteTreatmentDepartmentofInforeEnvironmentTechnologyGroupCo.,Ltd.HejoinedMideainJuly2005.HesuccessivelyheldthepositionsofDomesticSalesBranchManagerofGuangdongMideaSmallDomesticApplianceSalesCompanyinChina,SeniorProductPlanningManageratHeadquartersandHeadofBrand&MarketingDepartmentofHeadquarters.
11.Mr.LiuKan,bornin1984,holdingabachelor'sdegree,isSupervisoroftheTenthBoardofSupervisorsofInforeEnviro.HehasservedtheCompanysinceFebruary2016tillnow,andiscurrentlyDirectoroftheOperationManagementDepartmentofasubsidiary.HeheldthepositionsofGeneralManageratInforeNetworkTechnologyCo.,Ltd.from2017toNovember2019,DirectoroftheOperationManagementDepartmentofUniverstarScience&Technology(Shenzhen)Co.,Ltd.from2016to2017,andRiceCookerProductPlanningManageratMideaSmallDomesticApplianceShenzhenBranchandMideaSmallDomesticApplianceDivisionfrom2006to2015.
12.Ms.LinMeiling,bornin1985,holdingabachelor'sdegree,isSupervisoroftheTenthBoardofSupervisorsofInforeEnviro.SheiscurrentlytheDirectorofHumanResourcesatInforeEnvironmentTechnologyGroupCo.,Ltd.Startingin2010,shehasbeenresponsiblefortheadministrationandHRaffairsoftheCompany.Positionsheldinshareholderentities:
?Applicable□Notapplicable
| Nameofthepersonnelholdingposition | Shareholderentity | Positionheldattheshareholderentity | Startoftenure | Endoftenure | Receivingremunerationorallowancefromtheshareholdingentityornot |
| MaGang | InforeGroupCo.,Ltd. | Director | March6,2018 | April1,2024 | No |
| SuBin | InforeGroupCo.,Ltd. | DirectorandCo-President | November13,2020 | - | Yes |
| KuangGuangxiong | InforeGroupCo.,Ltd. | DirectorandCo-President | October1,2018 | - | Yes |
| ShenKe | ZoomlionHeavyIndustryScienceandTechnology | VicePresident | June29,2015 | - | Yes |
| Co.,Ltd. | ||
| Statementsonpositionsheldinshareholderentities | - | |
Positionsheldinotherentities:
?Applicable□Notapplicable
| Nameofthepersonnelholdingposition | Nameofotherentity | Positionheldinotherentity | Startoftenure | Endoftenure | Receivingremunerationorallowancefromotherentitiesornot |
| SuBin | BeijingBainationPicturesCoLtd. | Director | March18,2021 | - | No |
| SuBin | KUKAHomeCo.,Ltd. | Director | February2,2024 | - | No |
| SuBin | GuangzhouHolly'sInternationalAuctionCo.,Ltd. | Director | August5,2021 | - | No |
| SuBin | NingboInforeEquityInvestmentFundManagementCo.,Ltd. | Manager,ExecutiveDirector | April21,2021 | - | No |
| SuBin | NanjingKeleCompositeMaterialsCo.,Ltd. | GeneralManager | March6,2017 | - | No |
| SuBin | ZhuhaiAofeiInforePrivateEquityFundManagementCo.,Ltd. | GeneralManager,Chairman | September27,2022 | - | No |
| SuBin | ShenzhenHongfengBusinessManagementCo.,Ltd. | ViceChairman | September25,2023 | - | No |
| SuBin | ShanghaiFudehuiTradingCo.,Ltd. | Unknown | April1,2023 | - | No |
| KuangGuangxiong | GuangdongInforeFinanceConnectSmallLoanCo.,Ltd. | Director | July6,2020 | - | No |
| KuangGuangxiong | KUKAHomeCo.,Ltd. | Director | February2,2024 | - | No |
| KuangGuangxiong | GuangzhouBaopuInvestmentCo.,Ltd. | Director | April22,2022 | - | No |
| KuangGuangxiong | GuangdongInforeMaterialTechnologyCo.,Ltd. | Chairman | October9,2023 | - | No |
| KuangGuangxiong | InforeCapitalManagementCo.,Ltd. | Director | March14,2019 | - | No |
| KuangGuangxiong | Yinghe(Shenzhen)RoboticsandAutomationTechnologyCo.,Ltd. | Director | August5,2020 | - | No |
| ShenKe | BichampCuttingTechnology(Hunan)Co.,Ltd. | Director | July5,2014 | - | No |
| ShenKe | ChasingJixiangLifeInsuranceCompanyLimited | Director | October31,2012 | - | No |
| ShenKe | ZoomlionCapitalCo.,Ltd. | Director | October22,2015 | - | No |
| ShenKe | ZoomlionEarthWorkingMachineryCo.,Ltd. | ExecutiveDirector,Manager | July29,2020 | - | No |
| ShenKe | ZoomlionFinanceCo.,Ltd. | Director | May28,2015 | - | No |
| ShenKe | ShaanxiZoomlionWestEarthmovingMachineryCo.,Ltd. | ExecutiveDirector | July30,2020 | - | No |
| ShenKe | ZoomlionPurongFinancialLeasingCo.,Ltd. | Director | April12,2016 | - | No |
| ShenKe | ZoomlionAgricultureCo.,Ltd. | Director | October31,2023 | - | No |
| ShenKe | HunanTeliHydraulicCo.,Ltd. | Supervisor | March11,2020 | - | No |
| ShenKe | HunanFangshengCompanyLimited | Supervisor | January30,2018 | - | No |
| ShenKe | ZoomlionIntelligentAgricultureCo.,Ltd. | Director | November5,2020 | - | No |
| ShenKe | ZoomlionBusinessFactoring(China)Co.,Ltd. | Director | October11,2023 | - | No |
| ShenKe | HunanXiangjiangPrivateEquityFundManagementCo.,Ltd. | Director | April28,2021 | - | No |
| ShenKe | HunanZoomlionEmergencyDeviceCo.,Ltd. | Director | August17,2017 | - | No |
| ShenKe | HunanZoomlionInternationalTradeCo.,Ltd. | Director | September23,2002 | - | No |
| ShenKe | ZoomlionHeavyMachineryZhejiangCo.,Ltd. | Chairman | November8,2023 | - | No |
| ShenKe | ChongqingZoomlionShenghongMachineryManufacturingCo.,Ltd. | ExecutiveDirector | January5,2024 | - | No |
| ShenKe | HunanZhongchenRolledSteelManufacturingEngineeringCo.,Ltd. | Director | May20,2020 | - | No |
| ShenKe | BeijingJunlaiCapitalManagement.CompanyLimited | Director | June22,2018 | - | No |
| ShenKe | ChangshaZhonglianZhitongTrenchlessTechnologyCo.,Ltd. | Director | April13,2009 | - | No |
| ZhangYu | ChinaEuropeInternationalBusinessSchool | Professor | July1,2015 | - | Yes |
| ZhangYu | GuangzhouMINOEquipmentCo.,Ltd. | IndependentDirector | July28,2020 | - | Yes |
| ZhangYu | Aidite(Qinhuangdao)TechnologyCo.,Ltd. | Director | February1,2022 | - | Yes |
| LiRuidong | ChinaEnvironmentMagazine | PresidentandEditor-in-chief | November1,2013 | - | Yes |
| LiYingzhao | JiangxiGreenRecyclingCo.,Ltd. | Director | November19,2020 | - | Yes |
| LiYingzhao | GuangdongTLOONGTechnologyGroupCo.,Ltd. | IndependentDirector | July21,2022 | - | Yes |
| LiYingzhao | ChinaBroadnetGuangzhouNetworkCo.,Ltd. | IndependentDirector | April27,2021 | - | Yes |
| JiaoWanjiang | GuangdongShunkongEnvironmentalInvestmentCo.,Ltd. | Director | November9,2016 | - | No |
| WangQingbo | GuangdongShunkongEnvironmentalInvestmentCo.,Ltd. | Supervisor | February23,2023 | - | No |
| Statementsonpositionsheldinotherentities | - | ||||
Punishmentsimposedinthepastthreeyearsbythesecuritiesregulatorontheincumbentdirectors,supervisorsandseniorofficersaswellasthosewholeftofficeduringthereportingperiod:
□Applicable?NotApplicable
3.Remunerationofdirectors,supervisorsandseniorofficer
Decision-makingprocedure,determinationbasisandactualpaymentsofremunerationfordirectors,supervisorsandseniorofficersTheremunerationsofthedirectors,supervisorsandseniorofficersoftheCompanyfor2023arestrictlyincompliancewiththeRemunerationPlanforDirectors,SupervisorsandSeniorOfficersin2023deliberatedandadoptedbytheCompany,theRulesofProcedurefortheBoardofDirectorsformulatedbytheCompany,theRulesofProcedurefortheBoardofSupervisorsandthe
ArticlesofAssociationoftheCompany,aswellastherelevantprovisionsoftheCompanyLaw.TheremunerationoftheCompany'sdirectors,supervisorsandseniorofficersshallbedeterminedonthebasisofreasonableremunerationinthemarketandtheCompany'sperformanceappraisalresults.TheactualremunerationoftheindependentdirectorsoftheCompanyispaidonanannualbasis.Theactualremunerationofseniorofficersispartlyonamonthlybasis,andthepartlinkedtotheCompany'sperformanceispaidatyear-end.Remunerationofdirectors,supervisorsandseniorofficersoftheCompanyduringthereportingperiod
Unit:RMB10,000
| Name | Gender | Age | Position | Incumbent/Former | Totalpre-taxremunerationfromtheCompany | ReceivingremunerationfromtheCompany'srelatedpartiesornot |
| MaGang | Male | 45 | ChairmanoftheBoardandPresident | Incumbent | 290.17 | No |
| SuBin | Male | 46 | Director | Incumbent | 0 | Yes |
| KuangGuangxiong | Male | 45 | Director | Incumbent | 0 | Yes |
| ShenKe | Male | 53 | Director | Incumbent | 0 | Yes |
| LiYingzhao | Male | 62 | IndependentDirector | Incumbent | 10 | No |
| ZhangYu | Male | 46 | IndependentDirector | Incumbent | 10 | No |
| LiRuidong | Male | 47 | IndependentDirector | Incumbent | 10 | No |
| JiaoWanjiang | Male | 43 | ChairmanoftheBoardofSupervisors | Incumbent | 88.34 | No |
| LiuKan | Male | 40 | Supervisor | Incumbent | 122.12 | No |
| LinMeiling | Female | 39 | EmployeeSupervisor | Incumbent | 16.12 | No |
| WangQingbo | Male | 48 | VicePresident&CFO | Incumbent | 80.1 | No |
| JinTaotao | Male | 41 | VicePresidentandSecretaryoftheBoardofDirectors | Incumbent | 75.44 | No |
| Total | -- | -- | -- | -- | 702.29 | -- |
Otherinformation
□Applicable?NotApplicable
VI.PerformanceofDutiesbyDirectorsduringtheReportingPeriod
1.InformationontheBoardofDirectorsduringthereportingperiod
| Meeting | Dateofthemeeting | Disclosuredate | Meetingresolution |
| The1stmeetingoftheTenthBoardofDirectors | January12,2023 | January13,2023 | TheAnnouncementontheResolutionsoftheFirstMeetingoftheTenthBoardofDirectors(AnnouncementNo.:2023-002)waspublishedontheSecuritiesDaily,theSecuritiesTimes,theChinaSecuritiesJournal,andCninfo(www.cninfo.com.cn),whicharethemediadesignatedbytheCompanyforinformationdisclosure. |
| The2ndmeetingoftheTenthBoardofDirectors | April24,2023 | April25,2023 | TheAnnouncementontheResolutionsoftheSecondMeetingoftheTenthBoardofDirectors(AnnouncementNo.:2023-009)waspublishedintheSecuritiesDaily,theSecuritiesTimes,theChinaSecuritiesJournal,andCninfo(www.cninfo.com.cn),whicharethemediadesignatedbytheCompanyforinformationdisclosure. |
| The3rdmeetingoftheTenthBoardofDirectors | August25,2023 | August26,2023 | TheAnnouncementontheResolutionsoftheThirdMeetingoftheTenthBoardofDirectors(AnnouncementNo.:2023-038)waspublishedintheSecuritiesDaily,theSecuritiesTimes,theChinaSecuritiesJournal,andCninfo(www.cninfo.com.cn),whicharemedia |
| thedesignatedbytheCompanyforinformationdisclosure. | |||
| The4thmeetingoftheTenthBoardofDirectors | October27,2023 | October28,2023 | TheAnnouncementontheResolutionsoftheFourthMeetingoftheTenthBoardofDirectors(AnnouncementNo.:2023-045)waspublishedintheSecuritiesDaily,theSecuritiesTimes,theChinaSecuritiesJournal,andCninfo(www.cninfo.com.cn),whicharethemediadesignatedbytheCompanyforinformationdisclosure. |
2.AttendanceofdirectorsatBoardmeetingsandgeneralmeetingsofshareholders
| AttendanceofdirectorsatBoardmeetingsandgeneralmeetingsofshareholders | |||||||
| Director'sname | NumberofBoardmeetingsheld | NumberofBoardmeetingsattendedonsite | NumberofBoardmeetingsattendedbywayoftelecoms | NumberofBoardmeetingsattendedthroughproxy | NumberofBoardmeetingsabsentwithapologies | HavingfailedtoattendtwoconsecutiveBoardmeetingsinpersonornot | Numberofgeneralmeetingsofshareholdersattended |
| MaGang | 4 | 4 | 0 | 0 | 0 | No | 2 |
| SuBin | 4 | 4 | 0 | 0 | 0 | No | 2 |
| KuangGuangxiong | 4 | 4 | 0 | 0 | 0 | No | 2 |
| ShenKe | 4 | 4 | 0 | 0 | 0 | No | 2 |
| ZhangYu | 4 | 4 | 0 | 0 | 0 | No | 2 |
| LiRuidong | 4 | 4 | 0 | 0 | 0 | No | 2 |
| LiYingzhao | 4 | 4 | 0 | 0 | 0 | No | 2 |
ExplanationoffailuretoattendtwoconsecutiveBoardmeetings
3.ObjectionsraisedtorelevantmattersoftheCompanyWhetheranydirectorsraisedanobjectiontoanyrelevantmatteroftheCompany
□Yes?NoDirectorsdidnotraiseanyobjectiontotherelevantmattersoftheCompanyduringthereportingperiod.
4.OtherinformationabouttheperformanceofdutiesbydirectorsWhetheranyrecommendationsfromdirectorswereadoptedbytheCompany?Yes□NoExplanationofadoption/rejectionofdirectors'recommendationsfortheCompanyDuringthereportingperiod,thedirectorsoftheCompanyactedinadiligentandresponsiblemanner,andactivelyattendedBoardmeetingsandgeneralmeetingsofshareholdersinstrictcompliancewithprovisionsandrequirementsintheArticlesofAssociationoftheCompany,theRulesofProcedurefortheBoardofDirectorsaswellasrelevantlawsandregulations.BasedontheactualsituationoftheCompany,thedirectorsproposedrelevantopinionsontheCompany'smaterialgovernanceandoperationdecisions,reachedaconsensusthroughadequatecommunicationanddiscussion,firmlysupervisedandpromotedtheexecutionofresolutionsoftheBoardofDirectors,ensuredthedecision-makingwasscientific,timelyandhighlyefficientandprotectedthelegitimaterightsandinterestsoftheCompanyandallshareholders.VII.InformationonSpecialCommitteesoftheBoardduringtheReportingPeriod
| Nameofthe | Members | Number | Dateof | Meetingcontents | Important | Other | Specific |
| committee | ofmeetingsheld | themeeting | opinionsandsuggestionsproposed | informationonperformanceofduties | informationonmattersthatobjectionswereraised(ifany) | ||
| AuditCommittee | LiYingzhao,KuangGuangxiong,LiRuidongandZhangYu | 5 | January16,2023 | 1.Pre-approvaloftheFinancialStatementsin2022AnnualReport;2.2022AnnualInternalControlSelf-AssessmentReport;3.2023InternalAuditWorkPlanReport;4.Ex-anteCommunicationof2022AnnualReport. | Approvedtherelevantproposalsofthismeeting. | -- | Notapplicable |
| AuditCommittee | LiYingzhao,KuangGuangxiong,LiRuidongandZhangYu | 5 | April21,2023 | 1.2022AnnualReportanditssummary;2.2022AnnualFinalFinancialAccountingReport;3.2022ProfitDistributionPlanProposal;4.2023FirstQuarterReport;5.AssuranceReportonthePlacementandUseofFundraisingProceedsin2022;6.ProposalontheDelayofPartoftheProjectsofProceedsfromthePublicIssuanceofA-shareConvertibleCorporateBonds;7.ProposalonChangestoAccountingPolicyoftheCompanyandItsSubsidiaries;8.ProposalonProvisionforImpairmentofGoodwillin2022;9.ProposalonEstimatedRoutineRelatedPartyTransactionsfor2023;10.Proposalonthe2023AnnualPlanforEntrustedWealthManagementwithSelf-ownedFunds;11.ProposalonGuaranteeLimitsProvidedbytheCompanytoItsSubsidiaries;12.ProposalontheProvisionofBuyer'sCreditGuaranteesforCustomers;13.ProposalontheApplicationforComprehensiveCreditLinesfromBanksandtheAuthorizationfortheChairmantoSignBankCreditContracts;14.ProposalonContinuouslyCarryingoutAccountsReceivableFactoring;15.ProposalonRelatedPartyTransactionsforTemporaryBorrowingFundsProvidedbyInforeGroupCo.,Ltd.totheCompanyin2023;16.ProposalonProfessionalServicesfortheProcurementInformationSystemandRelatedTransactions;17.ProposalontheReappointmentofAccountingFirms;18.SummaryReportof2022Auditor'sReportbyPan-ChinaCertifiedPublicAccountantsLLP(SpecialGeneralPartnership);19.2022AnnualInternalControlSelf- | Approvedtherelevantproposalsofthismeeting. | -- | Notapplicable |
| AssessmentReport;20.ProposalonRevisingArticlesofAssociation. | |||||||
| AuditCommittee | LiYingzhao,KuangGuangxiongandLiRuidong | 5 | August24,2023 | 1.SummaryofInternalAuditfortheFirstHalfof2023;2.2023InterimReportanditssummary;3.SpecialReportonthePlacementandUseofFundraisingProceedsintheFirstHalfof2023;4.RevisedProcedureforAnnualReportWorkofAuditCommittee;5.RevisedInternalAuditManagementPolicy;6.RevisedProcedureforAnnualReportWorkofIndependentDirectors;7.RevisedAccountabilityPolicyforMaterialErrorsinAnnualReportInformationDisclosure. | Approvedtherelevantproposalsofthismeeting. | -- | Notapplicable |
| AuditCommittee | LiYingzhao,KuangGuangxiongandLiRuidong | 5 | October26,2023 | 1.InternalControlWorkSummaryfortheThirdQuarterof2023;2.ThirdQuarterReportfor2023;3.ProposalontheUseofPartofIdleFundraisingProceedstoTemporarilyReplenishWorkingCapital. | Approvedtherelevantproposalsofthismeeting. | -- | Notapplicable |
| AuditCommittee | LiYingzhao,KuangGuangxiong,LiRuidongandZhangYu | 5 | December11,2023 | CommunicationonPre-approvalof2023AnnualReport | Approvedtherelevantproposalsofthismeeting. | -- | Notapplicable |
| Remuneration&AppraisalCommittee | LiRuidong,KuangGuangxiongandZhangYu | 3 | January12,2023 | 1.ReviewingthePerformanceoftheCompany'sDirectorsandSeniorOfficersinFulfillingTheirDutiesin2022andConductingAnnualPerformanceAssessmentBasedonAssessmentCriteriaandRemunerationPoliciesandPlans;2.ImplementationoftheRemunerationPlanforDirectors,Supervisors,andSeniorOfficersin2022. | Approvedtherelevantproposalsofthismeeting. | -- | Notapplicable |
| Remuneration&AppraisalCommittee | LiRuidong,KuangGuangxiongandZhangYu | 3 | April21,2023 | ProposalontheRemunerationPlanforDirectors,Supervisors,andSeniorOfficersin2023 | Approvedtherelevantproposalsofthismeeting. | -- | Notapplicable |
| Remuneration&AppraisalCommittee | LiRuidong,KuangGuangxiongandZhangYu | 3 | August24,2023 | ProposalontheAdjustmentoftheExercisePriceoftheThirdStockOptionIncentiveScheme | Approvedtherelevantproposalsofthismeeting. | -- | Notapplicable |
| NominationCommittee | ZhangYu,MaGangandLiYingzhao | 1 | January12,2023 |
1.ProposalonElectingMr.MaGangasChairmanoftheTenthBoardofDirectors;2.ProposalontheCompositionoftheSpecialCommitteesoftheTenthBoardofDirectors;3.ProposalonAppointingtheTenthSeniorManagementTeam;4.Proposal
| Approvedtherelevantproposalsofthismeeting. | -- | Notapplicable |
| onAppointingMs.WangFeiasSecuritiesRepresentativeoftheCompany. | |||||||
| StrategyCommittee | MaGang,SuBinandShenKe | 3 | April21,2023 | 1.President'sWorkReport2022;2.ProposalontheDelayofPartoftheProjectsofProceedsfromthePublicIssuanceofA-shareConvertibleCorporateBonds;3.Proposalonthe2023AnnualPlanforEntrustedWealthManagementwithSelf-ownedFunds;4.ProposalonContinuouslyCarryingoutAccountsReceivableFactoring;5.ProposalontheSuspensionofDownwardRevisionoftheConversionPriceofInforeConvertibleBonds. | Approvedtherelevantproposalsofthismeeting. | -- | Notapplicable |
| StrategyCommittee | MaGang,SuBinandShenKe | 3 | August24,2023 | RevisedWorkingRulesforPresident | Approvedtherelevantproposalsofthismeeting. | -- | Notapplicable |
| StrategyCommittee | MaGang,SuBinandShenKe | 3 | October26,2023 | ProposalonUsingPartoftheIdleFundraisingProceedstoReplenishWorkingCapital | Approvedtherelevantproposalsofthismeeting. | -- | Notapplicable |
VIII.WorkoftheBoardofSupervisors
WhethertheBoardofSupervisorsidentifiedanyriskintheCompanyinitssupervisionduringthereportingperiod
□Yes?NoTheBoardofSupervisorshasnoobjectiontosupervisorymattersduringthereportingperiod.IX.InformationonEmployeesoftheCompany
1.Number,specialtyandeducationalbackgroundsofemployees
| Numberofin-serviceemployeesoftheparentcompanyattheendofthereportingperiod | 196 |
| Numberofin-serviceemployeesofthemajorsubsidiariesattheendofthereportingperiod | 20,034 |
| Totalnumberofin-serviceemployeesattheendofthereportingperiod | 20,230 |
| Totalnumberofpaidemployeesduringthereportingperiod | 20,230 |
| Numberofretireestowhomtheparentcompanyoritsmajorsubsidiariesneedtopayretirementpensions | 0 |
| Specialty | |
| Specialtycategory | Numberofpeopleinthespecialty |
| Productionpersonnel | 15,969 |
| Salespersonnel | 1,220 |
| Technicalpersonnel | 1,637 |
| Financepersonnel | 173 |
| Administrativepersonnel | 1,231 |
| Total | 20,230 |
| Educationallevel | |
| Typesofeducationallevel | Numberofpeople |
| Doctoraldegree | 11 |
| Master'sdegree | 474 |
| Bachelor'sdegree | 2,501 |
| College | 2,274 |
| Belowcollege | 14,970 |
| Total | 20,230 |
2.Remunerationpolicy
TheremunerationofemployeesispaidontimeaccordingtotheremunerationpolicyoftheCompany.ThefixedremunerationofemployeesisdeterminedbytheCompanyaccordingtothepositionvalueandindividualperformance,andthefloatingsalaryofemployeesisdeterminedaccordingtotheCompany'sindividualperformanceassessmentresults.TheCompanyswingstheweightofsalarypaymenttowardsstrategicprofessionalstoensurethattheincomelevelofcoretalentiscompetitiveinthemarket.Theemployeeremunerationpolicyissubjecttodynamicadjustmentsbasedonregionalconditions,talentsupply,staffturnover,theextentofchangesintheindustryenvironmentandthecorporatepaymentcapacity.
3.Trainingplan
TheCompanypursuesatalentstrategyofhighquality,highincentives,highperformance,andhighculturalidentity.Tosupportemployeesthroughtargetedandefficienttraining,InforeEnvirohasputinplacea3-tiertrainingsystemthatcoversthecompanylevel,divisionlevel,anddepartmentlevel.
TheCompanyhassetuptheEmployeeSkillsEnhancementCenter,focusingonimprovingthecompetenceandcapabilitiesofemployeeswhileactivelypromotingcorporateculture.Bycontinuouslystrengtheningthetrainerteam,andimprovingonlinelearningplatformsandotherkeyresources,whilemaintainingstandardizedtrainingmanagementprocesses,theCompanyiscommittedtocreatingacollaborativeandefficientorganizationalclimatethatempowersemployeesandpromotesindividualgrowth.
Itslearninganddevelopmentprogramscomprehensivelycoverthreekeyareas:newskills,expertise,andleadership.Leadershipdevelopmentisfacilitatedthroughastringofwell-designedprogramssuchasAscentProgram,ExplorationProgram,andClimbingProgram.Theseinitiativesaimtoguideemployeesincontinuouslyscalingnewheightsintheirprofessionalgrowthanddevelopment.Expertiseprograms,focusingonjob-specificskills,arecarriedoutindiverseformssuchasspecializedtrainingcamps,marketingandR&Dlecturesinordertohelpemployeesmeetjobrequirementsandadapttomarketchanges.TobettersupportnewemployeesinswiftlyintegratingintotheCompanyandachievingacareertransformationwithin90days,bothfromcampusandsocialrecruiting,awiderangeoftrainingprogramsarecarriedout,suchastheYoungTalentTrainingCamp,GraduateTrainingProgram,andprogramsspecifictonewemployeesfromsocialrecruiting.
Moreover,afairandcompetitivecareerdevelopmentsystemforemployeeshasbeenestablishedtoensurethateachindividualhasopportunitiesforcontinuousgrowthandpromotion.TheCompanyregularlyconductscomprehensiveassessmentstopromoteemployees,aspartofitstangibleactionstosupportcareeradvances.In2023,successfulpromotionsforoverthreehundredprofessionalemployeesarenotonlyarecognitionoftheirhardworkandtalent,butalsotheoutcomesoftalentdevelopmentstrategy.
4.Laboroutsourcing
?Applicable□Notapplicable
| Totalhoursoflaboroutsourced | 65,861,146.46 |
| Totalpaymentforlaboroutsourcing(RMB) | 789,175,464.30 |
X.Company'sProfitDistributionandConvertingCapitalReserveintoShareCapital
Formulation,executionoradjustmentsofprofitdistributionpolicy,especiallycashdividendpolicyduringthereportingperiod?Applicable□Notapplicable
AccordingtotheArticlesofAssociation,whilesatisfyingtheconditionsofcashdividendandensuringtheCompany'snormaloperationandlong-termdevelopment,theCompanyshallinprinciplepaycashdividendonanannualbasis.TheBoardofDirectorsmayproposeinterimcashdividendsdependingontheCompany'sprofitstatus,cashflowstatus,developmentstageandcapitalrequirements.TheCompanyshallmaintainthecontinuityandstabilityoftheprofitdistributionpolicy.Whentheconditionsforcashdividendsaremet,thecumulativeprofitdistributedincashintherecentthreeyearsshallnotbelessthan30%oftheaverageannualdistributableprofitrealizedintherecentthreeyears.Duringthereportingperiod,theCompanydistributedprofitinstrictaccordancewiththeprovisionsoftheArticlesofAssociationandfullyprotectedthelegitimaterightsandinterestsofsmallandmediuminvestors.IndependentdirectorshavevoicedtheiropinionsontheproposalontheannualprofitdistributionoftheCompany.
| Specialremarksonthecashdividendpolicy | |
| WhetheritcomplieswiththeCompany'sArticlesofAssociationorresolutionsofthegeneralmeetingsofshareholders: | Yes |
| Whetherdividenddistributionstandardsandratioareexplicitandclear: | Yes |
| Whetherthedecision-makingprocedureandmechanismarecomplete: | Yes |
| Whetherindependentdirectorsdiligentlyperformedtheirdutiesandplayedtheirduerole: | Yes |
| IntheeventthattheCompanydoesnotdistributecashdividends,itshalldisclosethespecificreasonsandthenextstepstoelevatethelevelofreturnforinvestors. | Notapplicable |
Whetherminorityshareholdershavetheopportunitytofullyexpresstheiropinionsanddemandandwhethertheirlegalrightsandinterestsareadequatelyprotected:
| Yes | |
| Incaseofadjustingorchangingthecashdividendpolicy,whethertheconditionsandproceduresinvolvedareincompliancewithapplicableregulationsandtransparent: | Yes |
TheCompanymadeprofitsduringthereportingperiodandtheparentcompany'sprofitsdistributabletoshareholderswerepositive,butnoproposalforcashdividenddistributionwasputforward.
□Applicable?NotApplicable
2.Profitdistributionandconvertingcapitalsurplusintosharecapitalforthereportingperiod?Applicable□Notapplicable
| Bonussharesper10shares(share) | 0 |
| Dividendper10shares(RMB)(taxinclusive) | 1.25 |
| Totalsharesasthebasisfortheproposalforprofitdistribution(share) | 3,166,941,288.00 |
| Cashdividends(RMB)(taxinclusive) | 395,867,661.00 |
| Cashdividendsinotherforms(suchassharerepurchase) | 0.00 |
| (RMB) | |
| Totalcashdividends(inclusiveofthoseinotherforms)(RMB) | 395,867,661.00 |
| Distributableprofit(RMB) | 786,431,614.32 |
| Totalcashdividends(inclusiveofthoseinotherforms)asapercentageoftotaldistributedprofit | 50.34% |
| Informationonthiscashdividend | |
| Others | |
| Detailsabouttheproposalforprofitdistributionandconvertingcapitalreserveintosharecapital | |
| Theprofitdistributionplanfor2023isasfollows:Basedonthetotalsharecapital(minuscompanysharesintheCompany'srepurchaseaccount)onthedateofrecordforthe2023profitdistributionplan,acashdividendofRMB1.25(taxinclusive)per10shareswillbedistributedtotheshareholders,withnobonusissuefromeitherprofitorcapitalreserves.Attheendof2022,theCompanyreportedRMB559,764,885.53inprofitsavailablefordistributionandRMB211,401,343.85inretainedearningsaftercashdividends.In2023,theCompanyrealizedanetprofitofRMB63,892,252.27andasurplusreserveofRMB63,892,252.27.Asaresult,profitsavailablefordistributionattheendof2023reachedRMB786,431,614.32.Whentheprofitdistributionplanfor2023isimplemented,ifthetotalsharecapital(minussharesintheCompany'srepurchaseaccount)onthedateofrecordfortheplanremainsunchanged,whichis3,166,941,288,acashdividendofRMB1.25(taxinclusive)willbedistributedforevery10shares,totalingRMB395,867,661.Asaresult,retainedearningsaftercashdividendswillbeRMB390,563,953.32.Ifthetotalsharecapitalchangesduetoreasonssuchastheconversionofconvertiblebonds,sharerepurchases,stockincentiveexercise,andthelistingofnewsharesfromrefinancingbeforetheplanisimplemented,theCompanywillmaintainthepolicyofdistributingRMB0.125(taxinclusive)pershareandadjustthetotalcashdividendsaccordingly. | |
XI.Company'sImplementationofStockOptionIncentiveSchemeandEmployeeStockOwnershipPlanorOtherEmployeeIncentiveMeasures?Applicable□Notapplicable
1.StockincentiveOverviewoftheThirdStockOptionIncentiveScheme:
1.OnApril22,2021,theProposalonMattersRelatedtotheExerciseintheSecondExercisePeriodoftheThirdStockOptionIncentiveSchemewasdeliberatedandapprovedatthe13thmeetingoftheNinthBoardofDirectorsandthe12thmeetingoftheNinthBoardofSupervisors.Atotalof17,814,000stockoptionsoftheThirdStockOptionIncentiveSchemeweredeemedfittobeexercisedatRMB6.34persharevoluntarilyinthesecondexerciseperiod.Priortotheexerciseofstockoption,iftheCompanyhasdividenddistribution,capitalreservetransferredtosharecapital,distributionofsharebonus,sharesplit,sharereductionorincreaseissueinstocks,etc.,theexercisepriceofstockoptionswillbeadjustedaccordingly.
2.OnAugust19,2021,the14thmeetingoftheNinthBoardofDirectorsandthe13thmeetingoftheNinthBoardofSupervisorsheldbytheCompanydeliberatedandapprovedtheProposalforAdjustmentoftheExercisePricesoftheSecondandThirdStockOptionIncentiveSchemes.InviewofthefactthattheCompany's2020annualequitydistributionwascompletedonJuly8,2021,accordingtorelevantprovisionsontheadjustmentoftheexercisepriceoftheThirdStockOptionIncentiveScheme(Draft),iftheCompanyhascapitalreservetransferredtosharecapital,distributionofsharebonus,sharesplit,sharereduction,dividenddistributionorshareallotments,etc.withinthevalidityperiodofthestockoptions,theexercisepriceofstockoptionswillbeadjustedaccordingly.Aftertheimplementationofthisequitydistribution,theexercisepriceoftheThirdStockOptionIncentiveSchemewillbeadjustedfromRMB6.34persharetoRMB6.22pershare.
3.OnAugust24,2022,the19thmeetingoftheNinthBoardofDirectorsandthe18thmeetingoftheNinthBoardofSupervisorsheldbytheCompanydeliberatedandapprovedtheProposalforAdjustmentoftheExercisePriceoftheThirdStockOptionIncentiveScheme.InviewofthefactthattheCompany's2021annualequitydistributionwascompletedonJuly20,2022,accordingtorelevantprovisionsontheadjustmentoftheexercisepriceoftheThirdStockOptionIncentiveScheme(RevisedDraft),iftheCompanyhascapitalreservetransferredtosharecapital,distributionofsharebonus,sharesplit,sharereduction,dividenddistributionorshare
allotments,etc.withinthevalidityperiodofthestockoptions,theexercisepriceofstockoptionswillbeadjustedaccordingly.Aftertheimplementationofthisequitydistribution,theexercisepriceoftheThirdStockOptionIncentiveSchemewillbeadjustedfromRMB6.22persharetoRMB6.12pershare.
4.OnOctober26,2022,the21stMeetingoftheNinthBoardofDirectorsandthe19thmeetingoftheNinthBoardofSupervisorsheldbytheCompanydeliberatedandapprovedtheProposalfortheAdjustmentoftheEligibleParticipantsandtheNumberofOptionstoBeExercisedundertheThirdStockOptionIncentiveSchemeandCancellationofPartialStockOptionsandtheProposalforMattersRelatingtoOptionExerciseduringtheThirdExercisePeriodoftheThirdStockOptionIncentiveSchemeoftheCompany.
(1)TheCompany's22recipientsresignedandwereidentifiedbytheCompany'sBoardofDirectorsasnolongersuitableforincentives.AccordingtotheThirdStockOptionIncentiveScheme(RevisedDraft),their1,788,000stockoptionsintotalwerecanceledforthesecondandthirdexerciseperiods.Aftertheadjustments,thenumberofrecipientsoftheThirdStockOptionIncentiveSchemewasadjustedfromtheoriginal231to209,andthenumberoflockedstockoptionsgrantedwasadjustedfrom23,752,000to21,964,000.
(2)TheexerciseconditionsforthethirdexerciseperiodundertheThirdStockOptionIncentiveSchemehavebeenmet,andthetotalnumberofexercisableoptionsis21,964,000,whichareexercisedbyindividualexerciseatthepriceofRMB6.12pershare.Priortotheexerciseofstockoption,iftheCompanyhasdividenddistribution,capitalreservetransferredtosharecapital,distributionofsharebonus,sharesplit,sharereductionorincreaseissueinstocks,etc.,theexercisepriceofstockoptionswillbeadjustedaccordingly.
5.OnDecember27,2022,theProposalontheCancellationofExpired,UnexercisedStockOptionsfortheSecondExercisePeriodoftheThirdStockOptionIncentiveSchemewasdeliberatedandapprovedatthe22ndmeetingoftheNinthBoardofDirectorsandthe20thmeetingoftheNinthBoardofSupervisors.The231recipientsexercised16,409,380stockoptions,with1,404,620unexercisedduringthesecondexerciseperiodoftheThirdStockOptionIncentiveScheme.AccordingtotheThirdStockOptionIncentiveScheme(RevisedDraft),theBoardofDirectorsagreedtocancelthe1,404,620expiredstockoptions.Afterthecompletionofthecancellation,theCompany'sThirdStockOptionIncentiveSchemewillcontinuetobeimplementedinaccordancewiththerequirements.
6.OnAugust25,2023,the3rdmeetingoftheTenthBoardofDirectorsandthe3rdmeetingoftheTenthBoardofSupervisorsheldbytheCompanydeliberatedandapprovedtheProposalforAdjustmentoftheExercisePriceoftheThirdStockOptionIncentiveScheme.InviewofthefactthattheCompany's2022annualequitydistributionwascompletedonJuly18,2023,accordingtorelevantprovisionsontheadjustmentoftheexercisepriceoftheThirdStockOptionIncentiveScheme(RevisedDraft),iftheCompanyhascapitalreservetransferredtosharecapital,distributionofsharebonus,sharesplit,sharereduction,dividenddistributionorshareallotments,etc.withinthevalidityperiodofthestockoptions,theexercisepriceofstockoptionswillbeadjustedaccordingly.Aftertheimplementationofthisequitydistribution,theexercisepriceoftheThirdStockOptionIncentiveSchemewillbeadjustedfromRMB6.12persharetoRMB6.01pershare.
7.OnJanuary8,2024,theProposalontheCancellationofExpired,UnexercisedStockOptionsfortheThirdExercisePeriodoftheThirdStockOptionIncentiveSchemewasdeliberatedandapprovedatthe5thextraordinarymeetingoftheTenthBoardofDirectors.AccordingtotheprovisionsoftheThirdStockOptionIncentiveScheme(RevisedDraft),theBoardofDirectorsagreedtocancelthe21,964,000expiredstockoptionsof209recipientsunexercisedduringthethirdexerciseperiod.Afterthecancellation,theThirdStockOptionIncentiveSchemewillbefullyimplemented.
Fordetails,pleaserefertoannouncementspublishedonApril23,2021,August21,2022,August25,2022,October27,2022,December28,2022,August26,2023,andJanuary9,2024onthemediaforinformationdisclosuredesignatedbytheCompanyandCninfo(http://www.cninfo.com.cn).EquityincentivesgrantedtodirectorsandseniorofficersoftheCompany:
□Applicable?NotApplicableAppraisalmechanismandincentivesforseniorofficers
TheCompanyhasestablishedasoundperformanceassessmentandincentivesystem.TheBoardofDirectorshastheRemuneration&AppraisalCommitteeastheadministrativeagencyfortheappointmentandremunerationappraisaloftheseniorofficersoftheCompany,whichshallberesponsibleforformulatingremunerationstandardsandschemesforseniorofficers,reviewingtheirperformanceofdutiesandformulatingscientificandreasonableremunerationschemesandsubmittingtotheBoardforreviewanddiscussion.ThecurrentseniorofficersoftheCompanyshallbesubjecttocomprehensiveperformanceappraisalbasedontheirpositions,thecurrentremunerationpolicyoftheCompany,theCompany'sactualoperatingperformance,individualperformance,performanceofdutiesandachievementofresponsibilitiesandgoals,andtheresultofsuchappraisalshallserveasthebasistodeterminetheirremunerations.TheCompanypaystheremunerationsofseniorofficersbasedonschedule.Duringthereportingperiod,theseniorofficersoftheCompanyconscientiouslyperformedtheirdutiesinstrictaccordancewiththeCompanyLaw,theArticlesofAssociationandtherelevantlawsandregulations,activelyimplementedrelevantresolutionsoftheGeneralMeetingsofShareholdersandBoardmeetings,andcompletedtasksoftheyearinaquitegoodway.
2.Implementationoftheemployeestockownershipplan
?Applicable□NotapplicableInformationonalleffectiveemployeestockownershipplansduringthereportingperiod
| Scopeofemployees | Numberofemployees | Totalnumberofsharesheld | Changes | Asapercentageofthetotalsharecapitalofthelistedcompany | Sourceoffundstoimplementtheplan |
| Directors(excludingindependentdirectors),supervisors,seniorofficers,andbackbonepersonnel(technology,marketing,production,etc.)oftheCompany. | 134 | 64,789,616 | AsatOctober12,2023,thelock-upperiodfortheCompany'sSecondEmployeeStockOwnershipPlanexpired,withemployees'cumulativeholdingof64,789,616sharesoftheCompany,accountingfor2.04%oftheCompany'stotalsharecapital. | 2.04% | Employees'legitimateremuneration,self-raisedfunds,andotherfundsobtainedbymeanspermittedbylawsandregulations. |
Shareholdingofdirectors,supervisorsandseniorofficersintheemployeestockownershipplanduringthereportingperiod
| Name | Position | Numberofsharesheldatthebeginningofthereportingperiod(share) | Numberofsharesheldattheendofthereportingperiod(share) | Asapercentageofthetotalsharecapitalofthelistedcompany |
| MaGang | Chairman&President | 17,246,996 | 17,246,996 | 0.54% |
| WangQingbo | VicePresident&CFO | 4,159,493 | 4,159,493 | 0.13% |
| JinTaotao | VicePresident&BoardSecretary | 2,462,005 | 2,462,005 | 0.08% |
| JiaoWanjiang | ChairmanoftheBoardofSupervisors | 1,846,504 | 1,846,504 | 0.06% |
| LiuKan | Supervisor | 155,495 | 155,495 | 0.00% |
Changesintheassetmanagementinstitutionduringthereportingperiod
□Applicable?NotApplicableChangesinequityarisingfromdisposalofsharesbyholdersduringthereportingperiod
□Applicable?NotApplicableExerciseofshareholders'rightsduringthereportingperiod
NAOtherrelevantcircumstancesandexplanationsoftheemployeestockownershipplanduringthereportingperiod
□Applicable?NotApplicableChangeofthemembersoftheemployeestockownershipplanmanagementcommittee
□Applicable?NotApplicableThefinancialimpactoftheemployeestockownershipplanonthelistedcompanyduringthereportingperiodandrelevantaccountingtreatment
□Applicable?NotApplicableTerminationoftheemployeestockownershipplanduringthereportingperiod
□Applicable?NotApplicableOtherstatements:
NA
3.Otheremployeeincentivemeasures
□Applicable?NotApplicableXII.EstablishmentandImplementationoftheInternalControlPolicyduringtheReportingPeriod
1.Establishmentandimplementationofinternalcontrol
(1)InternalcontroldevelopmentInforeEnvirohasestablishedandimprovedrulesandregulationsrelatingtocorporategovernanceandinternalcontrolinaccordancewiththerequirementsoftheCompanyLaw,theSecuritiesLaw,theBasicStandardforEnterpriseInternalControl,theRulesGoverningtheListingofSharesonSZSEandotherstatutorydocuments.TheoperationsoftheGeneralMeetingofShareholders,theBoardofDirectorsandtheBoardofSupervisorsinInforeEnviroareincompliancewiththeprovisionsoftherelevantlaws,regulations,theArticlesofAssociationoftheCompany,theRulesofProceduresfortheGeneralMeetingofShareholders,theRulesofProceduresfortheBoardofDirectors,andtheRulesofProceduresfortheBoardofSupervisors.Correspondinginternalmanagementpolicywithrespecttosuchmaterialissuesasfinancialaccounting,fundraising,externalinvestment,externalguarantee,relatedpartytransactionsandinformationdisclosurehasbeenestablishedinInforeEnvirotoensurethelegalityandcomplianceofday-to-dayoperationsanddecision-makingproceduresformaterialmatters.
(2)Internalcontrolimplementation
(a)ExecutionofinformationdisclosuremanagementpoliciesUponverification,theCompanyeffectivelycompliedwiththeInformationDisclosureManagementPolicyin2023,withgoodperformanceininformationdisclosure,andwasnotsubjecttopunishmentsbythesecuritiesregulatoryauthoritiesforviolationofrulesoninformationdisclosure.
(b)ImplementationoffinancialinternalcontrolpoliciesUponverification,withrespecttofinanceandaccounting,theCompanyhasestablishedtherelevantinternalmanagementpolicyinaccordancewiththerequirementsoftheAccountingStandardsforEnterprises,theCompanyLawandotherrelevantlawsand
regulations,whichcanensuretheaccuracyandreliabilityofthefinancialandaccountinginformationandthesecurityandeffectivenessofthefinancialandaccountingsystems.(c)ImplementationofotherinternalcontrolpoliciesUponverification,InforeEnvirocompliedwiththeprovisionsoftheArticlesofAssociationandtherelevantrulesandregulations,performednecessarydecision-makingprocedures,andimplementedtheinternalcontrolpolicyquitewell.
2.Detailsofmaterialinternalcontroldeficienciesidentifiedduringthereportingperiod
□Yes?NoXIII.ManagementandControloftheCompanyovertheSubsidiariesduringtheReportPeriod
| Companyname | Integrationplan | Integrationprogress | Problemsintheintegration | Resolutionmeasurestaken | Resolutionprogress | Follow-upresolutionplan |
| Notapplicable | Notapplicable | Notapplicable | Notapplicable | Notapplicable | Notapplicable | Notapplicable |
XIV.AssessmentReportorAuditReportonInternalControl
1.Internalcontrolassessmentreport
| Dateoffulldisclosureoftheinternalcontrolassessmentreport | April29,2024 | |
| Indextofulldisclosureoftheinternalcontrolassessmentreport | Fordetails,pleaserefertotheInternalControlAssessmentReportdisclosedonCninfo(http://www.cninfo.com.cn). | |
| ThetotalassetsoftheorganizationincludedintheassessmentasapercentageofthetotalassetsintheCompany'sconsolidatedfinancialstatements | 100.00% | |
| TherevenueoftheorganizationincludedintheassessmentasapercentageoftherevenueintheCompany'sconsolidatedfinancialstatements | 100.00% | |
| Deficiencyidentificationcriteria | ||
| Category | Relatedtofinancialreporting | Unrelatedtofinancialreporting |
| Qualitativecriteria | Materialdeficiencies:1.Fraudcommittedbydirectors,supervisorsandseniorofficersinrelationtofinancialreporting;2.MaterialmisstatementinfinancialstatementsofthecurrentperiodidentifiedbyCPAs,whichwasnotidentifiedinthecourseofthefunctioningofinternalcontrols;3.IneffectivesupervisionoverinternalcontrolbytheAuditCommitteeandinternalauditagencyoftheCompany;4.Lackofpostqualificationorobviousincompetenceofprincipalfinancialpersonnel;5.Ineffectivecompliancesupervisionand | Materialdeficiencies:Ifthelikelihoodofthedeficiencyishigh,itcouldmateriallyimpairworkefficiencyoreffectiveness,materiallyincreaseuncertaintyinoutcomes,orresultinamaterialdeviationfromexpectedtargets.Significantdeficiencies:Ifthelikelihoodofthedeficiencyismedium,itcouldsignificantlydiminishworkefficiencyoreffectiveness,significantlyincreaseuncertaintyinoutcomes,orresultinasignificantdeviationfromexpectedtargets.Generaldeficiencies: |
| violationsofregulationsthatcouldmateriallyaffectthereliabilityoffinancialstatements;Significantdeficiencies:1.Noanti-fraudproceduresandcontrolshavebeenestablished;2.Internalcontrolovertheselectionandapplicationofaccountingpolicyinlinewiththegenerallyacceptedaccountingstandardshavenotbeenimplemented;3.Thereareoneormoredeficienciesinthecontrolsovertheyear-endfinancialreportingprocess,anditcannotreasonablyensurethatthefinancialstatementsarepreparedtoachievetheobjectivesofauthenticityandcompleteness.Generaldeficiencies:Otherinternalcontroldeficienciesthatdonotconstitutematerialdeficienciesorsignificantdeficiencies. | Ifthelikelihoodofthedeficiencyislow,itcoulddiminishworkefficiencyoreffectiveness,increaseuncertaintyinoutcomes,orresultinadeviationfromexpectedtargets. | |
| Quantitativecriteria | Materialdeficiencies:1.Thepotentiallymisstatedamountintheprofitstatementisgreaterthanorequalto1%oftherevenueintheconsolidatedfinancialstatementsoftheCompanyforthemostrecentfiscalyearor5%ofthetotalpre-taxprofit;2.Thepotentiallymisstatedamountinthebalancesheetisgreaterthanorequalto1%ofthetotalassetsintheconsolidatedfinancialstatementsoftheCompanyforthemostrecentfiscalyear.Significantdeficiencies:1.Thepotentiallymisstatedamountintheprofitstatementisgreaterthanorequalto0.5%oftheCompany'srevenueor3%ofthetotalpre-taxprofitintheconsolidatedfinancialstatementsforthemostrecentfiscalyearbutlessthan1%oftheCompany'srevenueor5%ofthetotalpre-taxprofitintheconsolidatedfinancialstatementsforthemostrecentfiscalyear.2.Thepotentiallymisstatedamountinthebalancesheetisgreaterthanorequalto0.5%ofthetotalassetsintheconsolidatedfinancialstatementsoftheCompanyforthemostrecentfiscalyearbutlessthan1%ofthetotalassetsintheconsolidatedfinancialstatementsforthemostrecentfiscalyear.Generaldeficiencies:1.Thepotentiallymisstatedamountintheprofitstatementislessthan0.5%oftheCompany'srevenueor3%ofthetotalpre-taxprofitintheconsolidatedfinancialstatementsforthemostrecentfiscalyear;2.Thepotentiallymisstatedamountinthebalancesheetislessthan0.5%oftheconsolidatedtotalassetsoftheCompanyforthemostrecentfiscalyear. | Materialdeficiencies:Directpropertylossamountisgreaterthanorequalto1%oftheCompany'stotalassets(latestaudited).Significantdeficiencies:Directpropertylossamountisgreaterthanorequalto0.5%oftheCompany'stotalassets(latestaudited)butlessthan1%oftheCompany'stotalassets(latestaudited).Generaldeficiencies:Directpropertylossamountislessthan0.5%oftheCompany'stotalassets(latestaudited). |
| Numberofmaterialdeficienciesrelatedtofinancialreporting | 0 |
| Numberofmaterialdeficienciesunrelatedtofinancialreporting | 0 |
| Numberofsignificantdeficienciesrelatedtofinancialreporting | 0 |
| Numberofsignificantdeficienciesunrelatedtofinancialreporting | 0 |
2.Auditreportoninternalcontrol
?Applicable□Notapplicable
| TheOpinionparagraphintheauditreportoninternalcontrol | |
| InforeEnviromaintained,inallmaterialrespects,effectiveinternalcontrolrelatedtofinancialreportingasatDecember31,2023,inaccordancewiththeBasicStandardforEnterpriseInternalControlandotherapplicablerules. | |
| Disclosurestatusoftheauditreportoninternalcontrol | Disclosed |
| Disclosuredateofthefullauditreportoninternalcontrol | April29,2024 |
| Indextothefullauditreportoninternalcontrol | Fordetails,pleaserefertotheInternalControlAuditReportdisclosedonCninfo(http://www.cninfo.com.cn) |
| Opiniontypeoftheauditreportoninternalcontrol | Standardunqualifiedopinion |
| Whetheranymaterialdeficiencyunrelatedtofinancialreporting | No |
WhethertheaccountingfirmhasissuedtheauditreportwithmodifiedopinionontheCompany'sinternalcontrol
□Yes?NoWhethertheauditor'sreportontheCompany'sinternalcontrolisconsistentwiththeself-assessmentreportissuedbytheCompany'sBoardofDirectors?Yes□No
XV.RectificationofSelf-DetectedProblemsthroughtheSpecialCampaigntoImproveGovernanceofListedCompaniesAccordingtothesystemoftheCSRCforfillingandreportingthespecialself-examinationlistforthegovernanceoflistedcompanies,theCompanyconductedself-examinationworkduringthespecialcampaignbasedonfactsandinstrictaccordancewiththeCompanyLaw,theSecuritiesLaw,GuidelinesNo.1ofSZSEforSelf-regulationofListedCompanies—StandardizedOperationofCompaniesListedontheMainBoardandotherrelevantlawsandregulationsaswellasitsinternalrulesandregulations,carefullysortedouttheissuesandfilledintheforms.Throughthisself-examination,theCompanybelievesthatitscorporategovernancecomplieswiththerequirementsoftheCompanyLaw,theSecuritiesLaw,GuidelinesNo.1ofSZSEforSelf-regulationofListedCompanies—StandardizedOperationofCompaniesListedontheMainBoardandotherlawsandregulations,andthatitscorporategovernancestructureissoundandfunctionsinastandardizedway,withoutnomaterialissuesorerrors.TheCompanyshallcontinuetostrengthenmanagementinthefollowingareas:
1.FurtherimprovingtheinternalcontrolpolicyoftheCompanyTheCompanyshallsystemicallysortoutandimproveitscorporategovernanceandinternalcontrolinaccordancewiththelatestlawsandregulationsandcombinedwiththerequirementsoftheregulatoryauthoritiesanditsself-examinationresult,furtherperfectitsinternalcontrolpolicyandimplementthecorrespondingexaminationandapprovalprocedureontherevisedandimprovedrelevantpolicies.
2.FurtherfacilitatingspecialcommitteesoftheBoardtoplaytheirroles
Duringthereportingperiod,theCompanymaintainedspecialcommitteesinstrictaccordancewiththerelevantlawsandregulations,andthespecialcommitteesconductedon-siteinspectionandsupervisedandguidedtheCompany'soperationsmanagementandtheexecutionofresolutionsoftheBoardofDirectors.Inthefuture,theCompanyshallcontinuetocreateconditionsformembersofthespecialcommitteestoknowwellthebusinessoftheCompany,facilitatethemselvestoplaytheirrolesandprovideadviceandsuggestionsontheCompany'sdevelopmentplanning,operationsmanagement,riskcontrol,selectionandengagementofseniorofficersandback-uppersonnel,performanceappraisalofseniorofficers,internalcontrolandinternalaudit,etc.,tofurtherimprovethescientificdecision-makingcapacityandriskpreventioncapacityoftheCompany.
3.Furtherimprovingthequalityofinformationdisclosure
TheCompanyshalloptimizeitspolicysysteminstrictaccordancewiththeAdministrationofInformationDisclosureAffairsandincombinationwithitsownsituation.Inday-to-dayinformationdisclosuremanagement,theCompanyshallconductinformationdisclosureinaconciseandeasy-to-understandmanneronthepremisethattheCompany,itsshareholdersandotherinformationdisclosureobligorsshallensuretheauthenticity,accuracy,completeness,timelinessandfairnessofinformationdisclosure.Therelevantpersonnelofinformationdisclosureshalltreattheinformationdisclosureinadiligentmanner,preventerrorsandensurethequalityofinformationdisclosureandelevatethelevelofinformationdisclosure.Duringthereportingperiod,theCompanyanditsrelevantpersonneldisclosedinformationinstrictaccordancewiththerequirementsoflawsandregulations.
4.Furtherrampingupstafftraininginlawsandregulations
Byoptimizinginternaltrainingprogramsandincreasingtraining,theCompanyhelpeditsstaffbetterunderstandlaws,regulations,andnormativedocumentssuchastheSecuritiesLaw,theRulesGoverningtheListingofSharesonSZSE,andtheGuidelinesNo.1ofSZSEforSelf-regulationofListedCompanies—StandardizedOperationofCompaniesListedontheMainBoard.SuchtrainingalsohelpedtheCompanystrictlycomplywithrelevantregulations,manageitsoperationsinaprudentmanner,andpreventviolations.
PartVEnvironmentalandSocialResponsibility
I.MaterialEnvironmentalIssues
Whetherthelistedcompanyanditssubsidiariesaremajorpollutantemittersannouncedbynationalenvironmentalauthorities?Yes□NoEnvironmentalpoliciesandindustrystandards
TheCompanystrictlyabidesbythelaws,regulations,andemissionstandards,suchastheEnvironmentalProtectionLawofthePeople'sRepublicofChina,WaterPollutionPreventionandControlLawofthePeople'sRepublicofChina,IntegratedWastewaterDischargeStandard,andLawofthePeople'sRepublicofChinaonthePreventionandControlofAirPollution.Itconsistentlyimprovesitsmanagementpoliciesandoptimizespollutanttreatmentfacilitiesandtechnologiestominimizethedischargeofpollutants.Environmentaladministrativelicensing
TheCompanyhasbeenrunningallitskeypollutant-dischargingprojectsaccordingtolawsandregulationsformanyyears.Duringtheconstructionperiod,environmentalimpactassessmentwascarriedoutfortheseprojectsunderrelevantlawsandregulationssuchastheEnvironmentalProtectionLawofthePeople'sRepublicofChinaandLawofthePeople'sRepublicofChinaonEnvironmentalImpactAssessment,andenvironmentalimpactassessmentdocumentswereapprovedbyenvironmentalauthorities.Besides,theCompanyobtainedapprovalfromenvironmentalauthoritiesbeforepilotproduction,organizedenvironmentalacceptanceinspectionforthecompletedprojectsduringpilotproduction,andsimultaneouslydesigned,constructedandputintousethesupportingenvironmentalfacilitiesandthemainworks.Industrydischargestandardsanddischargeofpollutantsinproductionandoperatingactivities
| Nameofentityorsubsidiary | Typesofmainpollutantsandcharacteristicpollutants | Namesofmainpollutantsandcharacteristicpollutants | Wayofdischarge | Numberofdischargeoutlets | Layoutofdischargeoutlets | Dischargeconcentration/intensity | Pollutantdischargestandardsimplemented | Totaldischargevolume | Totalapproveddischargevolume | Excessivedischarge |
| FoshanShundeHuaqingyuanWaterEnvironmentalProtectionCo.,Ltd.(PhasesIandII | Wastewater | COD | Continuousdischarge | 1 | BeijiangRivertrunkstreamwaterway | 10.5mg/L | GB18918-2002,Class1A | 388.37t | 1606t/a | N/A |
| Wastewater | Ammonianitrogen | Continuousdischarge | 1 | BeijiangRivertrunkstreamwaterway | 0.54mg/L | GB18918-2002,Class1A | 19.97t | 200.75t/a | N/A | |
| Wastewater | Total | Continuous | 1 | BeijiangRivertrunkstreamwaterway | 0.25mg/L | GB18918-2002, | 9.25t | 20.075t/a | N/A |
| sewagestationsbythegate),FoshanShundeYuanrunWaterEnvironmentalProtectionCo.,Ltd.(PhaseIIIsewagestationbythegate) | phosphorus | discharge | Class1A | |||||||
| Wastewater | Totalnitrogen | Continuousdischarge | 1 | BeijiangRivertrunkstreamwaterway | 6.08mg/L | GB18918-2002,Class1A | 224.88t | 602.25t/a | N/A | |
| FunanGreenlanderEnvironmentalEnergyCo.,Ltd. | Wastegas | Smoke | 80mchimney | 1 | Northsideofthemainplant | 4.2mg/Nm? | GB18485-2014 | 2.316t | 14.6t/a | N/A |
| Wastegas | SO2 | 80mchimney | 1 | Northsideofthemainplant | 40.059mg/Nm? | GB18485-2014 | 24.543t | 89.28t/a | N/A | |
| Wastegas | NOx | 80mchimney | 1 | Northsideofthemainplant | 146.314mg/Nm? | GB18485-2014 | 85.702t | 96.72t/a | N/A | |
| Wastegas | HCl | 80mchimney | 1 | Northsideofthemainplant | 35.987mg/Nm? | GB18485-2014 | 21.406t | / | N/A | |
| Wastegas | CO | 80mchimney | 1 | Northsideofthemainplant | 15.09mg/Nm? | GB18485-2014 | 9.365t | / | N/A | |
| Wastegas | Pb | 80mchimney | 1 | Northsideofthemainplant | 0.0146mg/Nm? | GB18485-2014 | / | / | N/A | |
| Wastegas | Cd | 80mchimney | 1 | Northsideofthemainplant | 0.0000945mg/Nm? | GB18485-2014 | / | / | N/A | |
| Wastegas | Hg | 80mchimney | 1 | Northsideofthemainplant | 0.0048mg/Nm? | GB18485-2014 | / | / | N/A | |
| Wastegas | Dioxins | 80mchimney | 1 | Northsideofthemainplant | 0.057ng-TEQ/m? | GB18485-2014 | / | / | N/A | |
| ShouxianGreenlanderNewEnergyCo.,Ltd. | Wastegas | Smoke | 80mchimney | 1 | Westsideofthemainplant | 2.4mg/Nm? | GB18485-2014 | 1.49t | 12t/a | N/A |
| Wastegas | SO2 | 80mchimney | 1 | Westsideofthemainplant | 43.39mg/Nm? | GB18485-2014 | 20.19t | 70t/a | N/A | |
| Wastegas | NOx | 80mchimney | 1 | Westsideofthemainplant | 202.48mg/Nm? | GB18485-2014 | 123.53t | 144t/a | N/A | |
| Wastegas | HCl | 80mchimney | 1 | Westsideofthemainplant | 51.97mg/Nm? | GB18485-2014 | 29.65t | / | N/A | |
| Wastegas | CO | 80mchimney | 1 | Westsideofthemainplant | 2.8mg/Nm? | GB18485-2014 | 3.74t | / | N/A | |
| Wastegas | Pb | 80mchimney | 1 | Westsideofthemainplant | 0.0016mg/m? | GB18485-2014 | / | / | N/A |
| Wastegas | Cd | 80mchimney | 1 | Westsideofthemainplant | 0.000694mg/m? | GB18485-2014 | / | / | N/A | |
| Wastegas | Hg | 80mchimney | 1 | Westsideofthemainplant | 0.00082mg/Nm? | GB18485-2014 | / | / | N/A | |
| Wastegas | Dioxins | 80mchimney | 1 | Westsideofthemainplant | 0.038ngTEQ/m? | GB18485-2014 | / | / | N/A | |
| LianjiangGreenlanderNewEnergyCo.,Ltd. | Wastegas | Smoke | 80mchimney | 1 | Eastsideofthemainplant | 1.1mg/Nm? | GB18485-2014 | 0.85t | 6.78t/a | N/A |
| Wastegas | SO2 | 80mchimney | 1 | Eastsideofthemainplant | 28.6mg/Nm? | GB18485-2014 | 14.09t | 26.06t/a | N/A | |
| Wastegas | NOx | 80mchimney | 1 | Eastsideofthemainplant | 151mg/Nm? | GB18485-2014 | 96.45t | 104t/a | N/A | |
| Wastegas | HCl | 80mchimney | 1 | Eastsideofthemainplant | 41.718mg/Nm? | GB18485-2014 | 24.27t | / | N/A | |
| Wastegas | CO | 80mchimney | 1 | Eastsideofthemainplant | 28.9mg/Nm? | GB18485-2014 | 20.36t | / | N/A | |
| Wastegas | Pb | 80mchimney | 1 | Eastsideofthemainplant | / | GB18485-2014 | / | / | N/A | |
| Wastegas | Cd | 80mchimney | 1 | Eastsideofthemainplant | / | GB18485-2014 | / | / | N/A | |
| Wastegas | Hg | 80mchimney | 1 | Eastsideofthemainplant | 0.0023mg/Nm? | GB18485-2014 | / | / | N/A | |
| Wastegas | Dioxins | 80mchimney | 1 | Eastsideofthemainplant | 0.063ng-TEQ/m? | GB18485-2014 | / | / | N/A | |
| XiantaoGreenlanderEnvironmentalPowerGenerationCo.,Ltd.(1#furnace) | Wastegas | Smoke | 80mchimney | 1 | Westsideofthemainplant | 0.22mg/m? | GB18485-2014 | 0.109t | / | N/A |
| Wastegas | SO2 | 80mchimney | 1 | Westsideofthemainplant | 22.76mg/m? | GB18485-2014 | 16.52t | 58t/a | N/A | |
| Wastegas | NOx | 80mchimney | 1 | Westsideofthemainplant | 208.97mg/m? | GB18485-2014 | 118.29t | 148.85t/a | N/A | |
| Wastegas | HCl | 80mchimney | 1 | Westsideofthemainplant | 26.69mg/m? | GB18485-2014 | 15.3t | / | N/A | |
| Wastegas | CO | 80mchimney | 1 | Westsideofthemainplant | 2.77mg/m? | GB18485-2014 | 3.47t | / | N/A | |
| Wastegas | Pb | 80mchimney | 1 | Westsideofthemainplant | 0.0029mg/m? | GB18485-2014 | / | / | N/A | |
| Wastegas | Cd | 80m | 1 | Westsideofthemainplant | 0.00013mg/m | GB18485-2014 | / | / | N/A |
| chimney | ? | |||||||||
| Wastegas | Hg | 80mchimney | 1 | Westsideofthemainplant | / | GB18485-2014 | / | / | N/A | |
| Wastegas | Dioxins | 80mchimney | 1 | Westsideofthemainplant | 0.0014ngTEQ/m? | GB18485-2014 | / | / | N/A | |
| XiantaoGreenlanderEnvironmentalPowerGenerationCo.,Ltd.(2#furnace) | Wastegas | Smoke | 80mchimney | 1 | Westsideofthemainplant | 1.03mg/m? | GB18485-2014 | 0.59t | / | N/A |
| Wastegas | SO2 | 80mchimney | 1 | Westsideofthemainplant | 23.13mg/m? | GB18485-2014 | 9.96t | 58t/a | N/A | |
| Wastegas | NOx | 80mchimney | 1 | Westsideofthemainplant | 224.04mg/m? | GB18485-2014 | 81.9t | 148.85t/a | N/A | |
| Wastegas | HCl | 80mchimney | 1 | Westsideofthemainplant | 29.33mg/m? | GB18485-2014 | 9.78t | / | N/A | |
| Wastegas | CO | 80mchimney | 1 | Westsideofthemainplant | 0.87mg/m? | GB18485-2014 | 1.76t | / | N/A | |
| Wastegas | Pb | 80mchimney | 1 | Westsideofthemainplant | 0.0032mg/m? | GB18485-2014 | / | / | N/A | |
| Wastegas | Cd | 80mchimney | 1 | Westsideofthemainplant | 0.00014mg/m? | GB18485-2014 | / | / | N/A | |
| Wastegas | Hg | 80mchimney | 1 | Westsideofthemainplant | / | GB18485-2014 | / | / | N/A | |
| Wastegas | Dioxins | 80mchimney | 1 | Westsideofthemainplant | 0.002ngTEQ/m? | GB18485-2014 | / | / | N/A | |
| PoyangGreenlanderRenewableEnergyCo.,Ltd. | Wastegas | Smoke | 80mchimney | 1 | Northsideofthemainplant | 0.7655mg/Nm? | GB18485-2014 | 0.457t | 12t/a | N/A |
| Wastegas | SO2 | 80mchimney | 1 | Northsideofthemainplant | 40.0409mg/Nm? | GB18485-2014 | 23.9035t | 80t/a | N/A | |
| Wastegas | NOx | 80mchimney | 1 | Northsideofthemainplant | 223.9976mg/Nm? | GB18485-2014 | 133.7214t | 250t/a | N/A | |
| Wastegas | HCl | 80mchimney | 1 | Northsideofthemainplant | 38.3231mg/Nm? | GB18485-2014 | 22.878t | / | N/A | |
| Wastegas | CO | 80mchimney | 1 | Northsideofthemainplant | 2.40mg/Nm? | GB18485-2014 | 1.433t | / | N/A | |
| Wastegas | Pb | 80mchimney | 1 | Northsideofthemainplant | 0.01mg/Nm? | GB18485-2014 | / | / | N/A | |
| Wastegas | Cd | 80mchimney | 1 | Northsideofthemainplant | 0.00015mg/Nm? | GB18485-2014 | / | / | N/A |
| Wastegas | Hg | 80mchimney | 1 | Northsideofthemainplant | 0.000035mg/Nm? | GB18485-2014 | / | / | N/A | |
| Wastegas | Dioxins | 80mchimney | 1 | Northsideofthemainplant | 0.063ng/m? | GB18485-2014 | / | / | N/A | |
| BiyangFengheNewEnergyPowerCo.,Ltd. | Wastegas | Smoke | 80mchimney | 1 | Southsideofthemainplant | 1.72mg/m? | GB18485-2014 | 0.524t | 10.95t/a | N/A |
| Wastegas | SO2 | 80mchimney | 1 | Southsideofthemainplant | 43.02mg/m? | GB18485-2014 | 25.406t | 31.68t/a | N/A | |
| Wastegas | NOx | 80mchimney | 1 | Southsideofthemainplant | 194.13mg/m? | GB18485-2014 | 119.737t | 159.72t/a | N/A | |
| Wastegas | HCl | 80mchimney | 1 | Southsideofthemainplant | 30.46mg/m? | GB18485-2014 | 18.663t | / | N/A | |
| Wastegas | CO | 80mchimney | 1 | Southsideofthemainplant | 5.76mg/m? | GB18485-2014 | 1.817t | / | N/A | |
| Wastegas | Pb | 80mchimney | 1 | Southsideofthemainplant | 0.0642mg/m? | GB18485-2014 | / | / | N/A | |
| Wastegas | Cd | 80mchimney | 1 | Southsideofthemainplant | 0.000126mg/m? | GB18485-2014 | / | / | N/A | |
| Wastegas | Hg | 80mchimney | 1 | Southsideofthemainplant | 0.003mg/m? | GB18485-2014 | / | / | N/A | |
| Wastegas | Dioxins | 80mchimney | 1 | Southsideofthemainplant | 0.0078ngTEQ/Nm? | GB18485-2014 | / | / | N/A | |
| XiantaoYingheEnvironmentalProtectionCo.,Ltd. | Wastegas | Ammoniaandhydrogensulfide | Centralized | 2 | Dischargeoutletsforkitchenwasteandsludgeattheendofthedeodorizationsystem,withwastegasdischargedthroughthechimney | Ammonia:1.5mg/Nm?；Hydrogensulfide:0.06mg/Nm? | GB14554-93 | None | / | N/A |
| Wastegas | Smoke,SO2andNOX | Centralized | 1 | Dischargeoutletsofkitchenbiogascombustionattheendofthecombustionsystem,withwastegasdischargedthroughthechimney | Smoke:20mg/Nm?；SO2：50mg/Nm?；NOX：200mg/Nm? | GB13271-2014 | Smoke:0.00832t；SO2：0t；NOX：0.0251t | Smoke:0.241t；SO2：0.467t；NOX：1.809t | N/A | |
| Wastewater | CODandammonianitrogen | Centralized | 1 | Sewagedischargeoutletsattheendofthesewagetreatmentfacility,withsewagedischargedtothesewageplantinthewestofthecityaftercentralized | COD：500mg/L；Ammonianitrogen: | GB8978-1996 | COD：1.969t；Ammonianitrogen: | COD：4.2627t；Ammonianitrogen: | N/A |
| treatment | 45mg/L | 0.088t | 0.427t | |||||||
| ChangshaZoomlionEnvironmentalIndustryCo.,Ltd. | Wastegas | Benzene | Planned | 2 | Easternexhaustoutletofwastegasfrompaintdryingforwhole-machinecoating(longitude112°50'14.28",latitude28°13'59.99")/Westernexhaustoutletofwastegasfrompaintdryingforwhole-machinecoating(longitude112°50'12.30",latitude28°13'59.99") | 0.03905mg/m? | EmissionStandardofVolatileOrganicCompoundsandNiforSurfaceCoating(AutomobileManufacturingandRepairIndustry)(DB43/1356-2017);1mg/m? | 0.038624t | / | N/A |
| Wastegas | Toluene | Planned | 2 | Easternexhaustoutletofwastegasfrompaintdryingforwhole-machinecoating(longitude112°50'14.28",latitude28°13'59.99")/Westernexhaustoutletofwastegasfrompaintdryingforwhole-machinecoating(longitude112°50'12.30",latitude28°13'59.99") | 0.0514175mg/m? | EmissionStandardofVolatileOrganicCompoundsandNiforSurfaceCoating(AutomobileManufacturingandRepairIndustry)(DB43/1356-2017);3mg/m? | 0.057679t | / | N/A | |
| Wastegas | Xylene | Planned | 2 | Easternexhaustoutletofwastegasfrompaintdryingforwhole-machinecoating(longitude112°50'14.28",latitude28°13'59.99")/Westernexhaustoutletofwastegasfrompaintdryingforwhole-machinecoating(longitude112°50'12.30",latitude28°13'59.99") | 0.300981mg/m? | EmissionStandardofVolatileOrganicCompoundsandNiforSurfaceCoating(AutomobileManufacturingandRepairIndustry)(DB43/1356-2017);17mg/m? | 0.27389t | / | N/A |
| Wastegas | Non-methanehydrocarbons | Planned | 2 | Easternexhaustoutletofwastegasfrompaintdryingforwhole-machinecoating(longitude112°50'14.28",latitude28°13'59.99")/Westernexhaustoutletofwastegasfrompaintdryingforwhole-machinecoating(longitude112°50'12.30",latitude28°13'59.99") | 1.774702mg/m? | EmissionStandardofVolatileOrganicCompoundsandNiforSurfaceCoating(AutomobileManufacturingandRepairIndustry)(DB43/1356-2017);40mg/m? | 1.770279t | 424.83t/a | N/A |
Pollutanttreatment
TheCompanyvaluesenvironmentalprotectionandhasestablishedamanagementcommitteetocoordinateitssafetyandenvironmentalactivities.Safetyandenvironmentaldepartmentsequippedwithmanagementpersonnelhavealsobeensetupacrosskeybusinesssegments.Inrecentyears,theCompanyanditssubsidiarieshavebeenstrengtheningenvironmentalpoliciesandstrictlyregulatingtheoperatingproceduresandjobresponsibilitiesofenvironmentalfacilitiestoensuretheirproperfunctioning.Thishaseffectivelycontrolledpollutantemissions,andnoinstancesofexceedingdischargestandardshaveoccurred.Throughouttheroutineproductionandoperationalprocesses,theenvironmentalfacilitiesintegratedintotheCompanyanditssubsidiariesguaranteetheuninterruptedfunctioningofallenvironmentalsystems.Environmentalself-monitoringplan
TheCompanydevelopedthe2023EnvironmentalSelf-MonitoringPlanforeachofitskeypollutant-dischargingprojectsinaccordancewithenvironmentalimpactassessmentrequirementsandrelevantlawsandregulations,andfiledthemwithlocalecologicalandenvironmentalauthorities.Ithasalsoengagedaprofessionalthird-partyinspectionagencytocarryoutregularenvironmentalmonitoringofthepollutantsdischargedbyitsprojects.Contingencyplanforenvironmentalemergencies
TheCompanyengagedaprofessionalthird-partyagencytodevelopacontingencyplanforenvironmentalemergenciesforeachofitskeypollutant-dischargingprojects,andsuchplanshavebeenapprovedandfiledforrecord.In2023,theCompanycarriedoutregulartraininganddrillsamongitsemployeesindifferentprojectsaccordingtotherequirementsandcontentsofthecontingencyplanstoenablethemtotimelyandaccuratelydealwithenvironmentalpollutionemergencies.
Investmentinenvironmentalgovernanceandprotectionpaymentofenvironmentaltaxes
TheCompany'scommitmenttogreendevelopmentandenvironmentalprotectionunderpinsitssustainedeffortsincleanproduction,energyconservation,consumptionreduction,emissionreduction,andefficiencyimprovement.Byincorporatingitsenvironmentalphilosophyintoday-to-daymanagement,theCompanystrivestobecomearesource-conservingandenvironmentalfriendlybusiness.In2023,itinvestedapproximatelyRMB26.246millioninenvironmentalprotectionandpaidapproximatelyRMB22,800inenvironmentaltaxesundertherelevantlawsandregulations.
Measuresadoptedduringthereportingperiodtoreducecarbonemissionsandtheireffects?Applicable□NotapplicableTheCompanymaderationaluseofwasteresourcesandeffectivelyreducedenvironmentalcarbonemissionsthroughenvironmentalprotectionindustrialmodessuchasdomesticwasteincinerationforpowergeneration,kitchenwasteresourceutilizationandsewagetreatment.Intermsoftheprojectofdomesticwasteincinerationforpowergeneration,thegreenhousegasemissionreductionisabout
0.78-1.32kgperkilowatt-hour,and0.36tCO2epertonofwaste,withsoundemissionreductioneffect.Administrativepenaltiesforenvironmentalissuesduringthereportingperiod
| Nameofentityorsubsidiary | Reason | Violation | Penalty | Impactontheproductionandoperationofthelistedcompany | Rectificationmeasures |
| SusongYingheEnvironmentalSanitationManagementCo.,Ltd. | Non-compliantoperation | ViolationofArticle69oftheHighwaySafetyProtectionRegulations | AfineofRMB200 | Ithadnomaterialimpactontheproductionandoperationofthelistedcompany. | 1.Providedtrainingfordriversinrelevantlegalprovisions;2.Strengthenedthevehiclemanagementpolicytoguaranteeadherencetoloadingprotocols;3.Carriedoutroutineinspectionstoguaranteetheprojectswereoperatedunderestablishedrules. |
| LoudiZoomlionHuabaoEnvironmentalProtectionTechnologyCo.,Ltd. | Non-compliantoperation | ViolationofArticle33oftheRegulationsontheAdministrationofPollutantDischargePermit,Table3-2,Table2-2,Table12-3andTable13ofAdministrativePenaltyDiscretionStandardsofHunanProvinceforEcologicalEnvironmentProtection,Article23oftheRegulationsontheAdministrationofEnvironmentalProtectionofConstructionProjects,andArticle38oftheMeasuresfortheAdministrationofEnvironmentalEmergencyResponse | 1.AfineofRMB865,300ontheCompany;2.AfineofRMB87,500ondirectlyaccountablepersons. | Ithadnomaterialimpactontheproductionandoperationofthelistedcompany. | 1.Conductedtrainingsessionsforemployeesinrelevantlegalprovisions;2.Formulatedandrefinedrelevantrulesandpolicies;3.Implementedroutineinspectionstoensurethatprojectswereoperatedincompliancewithrules. |
| XiangtanYinglianEnvironmentalIndustryCo.,Ltd. | Non-compliantoperation | ViolationofArticle10andArticle39oftheWaterPollutionPreventionandControlLawofthePeople'sRepublicofChina. | RMB670,000 | Ithadnomaterialimpactontheproductionandoperationofthelistedcompany. | 1.Conductedtrainingsessionsforprojectpersonnelinrelevantlegalprovisions;2.Formulatedandrefinedrelevantrulesandpolicies;3.Implementedroutineinspectionstoensurethatprojectswereoperatedincompliancewithrules. |
| ZhangjiagangZhongyingEnvironmental | Non-compliantoperation | ViolationofArticles43and65oftheRegulationsofJiangsuProvinceontheAdministrationofCityAppearanceandEnvironmentalSanitation. | Afineof5,000RMB | Ithadnomaterialimpactontheproductionand | 1.Conductedtrainingsessionsforemployeesinrelevantlegalprovisions;2.Formulatedandrefinedrelevantrulesandpolicies;3. |
| DevelopmentCo.,Ltd. | operationofthelistedcompany. | Implementedroutineinspectionstoensurethatprojectswereoperatedincompliancewithrules. | |||
| ZhangjiagangZhongyingEnvironmentalDevelopmentCo.,Ltd. | Non-compliantoperation | ViolationofArticles43and65oftheRegulationsofJiangsuProvinceontheAdministrationofCityAppearanceandEnvironmentalSanitation. | Afineof5,000RMB | Ithadnomaterialimpactontheproductionandoperationofthelistedcompany. | 1.Conductedtrainingsessionsforemployeesinrelevantlegalprovisions;2.Formulatedandrefinedrelevantrulesandpolicies;3.Implementedroutineinspectionstoensurethatprojectswereoperatedincompliancewithrules. |
OtherdisclosableenvironmentalinformationTheCompanydisclosedtheenvironmentalinformationofeachofitskeypollutant-dischargingprojectsonthegovernment'senvironmentalinformationdisclosureplatformonaregularbasisaccordingtotherequirementsoflocalenvironmentalauthorities.OtherenvironmentalrelatedinformationNA
II.CorporateSocialResponsibilityFordetails,pleaserefertothe2023SustainabilityReportdisclosedatCninfo(www.cninfo.com.cn).III.PerformanceinConsolidatingAchievementsinPovertyAlleviationandPromotingRuralRevitalization
Duringthereportingperiod,theCompanydonatedRMB1,216,100inmoneyandmaterialstosupportpovertyalleviationandruralrevitalizationefforts.
PartVISignificantEvents
I.Performanceofundertakings
1.UndertakingsoftheCompany'sdefactocontroller,shareholders,relatedparties,andacquirer,aswellastheCompanyandothercommitmentmakersfulfilledduringthereportingperiodorongoingattheperiod-end?Applicable□Notapplicable
| Undertaking | Party | Type | Content | Date | Termofundertakings | Fulfillmentofundertakings |
| Undertakingmadeatthetimeofassetrestructuring | DefactocontrollerHeJianfeng | Undertakingonnottorelinquishcontroloverthelistedcompany | Ihavenoplantorelinquishcontroloverthelistedcompanyinthenext60monthsfromthedateofcompletionofthistransaction. | January3,2019 | 60months | Itisbeingproperlyfulfilledwithoutbreach. |
| Undertakingmadeatthetimeofassetrestructuring | DefactocontrollersHeJianfeng,NingboInfore,andInforeGroup | Undertakingtoavoidhorizontalcompetition,regulateandreducerelatedpartytransactions,andmaintainindependenceofthelistedcompany | Undertakingtoavoidhorizontalcompetition,regulateandreducerelatedpartytransactions,andmaintainindependenceofthelistedcompany | August15,2018 | Indefinitely | Itisbeingproperlyfulfilledwithoutbreach. |
| Undertakingmadeatthetimeofassetrestructuring | NingboInfore,HongchuangInvestment,Zoomlion,NingboYingtai,NingboZhongfeng,NingboLiantai | Undertakingtoavoidhorizontalcompetition,andregulateandreducerelatedpartytransactions | Undertakingtoavoidhorizontalcompetition,andregulateandreducerelatedpartytransactions | August15,2018 | Indefinitely | Itisbeingproperlyfulfilledwithoutbreach. |
| Undertakingmadeatthetimeofassetrestructuring | GreenlanderInvestmentHoldingCo.,Ltd.andZhengWeixian | Undertakingrelatedtoperformance | TheaccumulativetotalnetprofitrecordedbyLianjiangGreenlanderNewEnergyCo.,Ltd,XiantaoGreenlanderEnvironmentalPowerGenerationCo.,Ltd.,FunanGreenlanderEnvironmentalEnergyCo.,Ltd.andShouxianGreenlanderNewEnergyCo.,Ltd.from2016to2019shallnotbelessthanRMB120million(netprofitissubjecttothelowerafterdeductingnon-recurringgainsandlosses). | October14,2015 | 48months | Notfulfilledproperly.Theauditednetprofit(netprofitisthelowerofbeforeorafterdeductingnon-recurringgainsandlosses)fortheperiodfrom2016to2019isRMB2,156,500,RMB-24,424,500,RMB-19,192,800,andRMB-625,700respectively;andthe |
| accumulatednetprofitisRMB-42,086,600whichisRMB162,086,600lessthantheperformancecommitment,indicatingafailuretoachievethecommitmentinrespectofthenetprofitfor2016-2019. | ||||||
| Undertakingmadeatthetimeofassetrestructuring | GreenlanderInvestmentHoldingCo.,Ltd.andZhengWeixian | Projectundertakings | 1.From2016to2019,thenewlysignedwasteincinerationpowergenerationBOTagreements(subjecttothesigningoffranchiseagreement)signedbyGreenlanderEnvironmentalshallspecifyatotaldailydisposalcapacityofnotlessthan6,500tons(asingleprojectshallhaveadailydisposalcapacityofnotlessthan500tons,ofwhichatleastoneshallbemorethan2,000tons).2.JiujiangCompanyshallstartconstructionandobtainapprovalbefore31December2020.Ifitfailstostartconstructionortheconstructionisrecoveredbythegovernment,itshallcompensatethelistedcompanyataconsiderationofnolessthanRMB5million. | October14,2015 | 48months | Notfulfilledproperly.ThenewlysignedprojectsbyGreenlanderEnvironmentalfrom2016to2019totaled1,400tons,5,100tonslessthantheprojectundertaking.TheprojectinJiujianhasnotcommencedconstruction. |
| Whethertheundertakingswerefulfilledontime | No | |||||
| Iftheundertakingisnotfulfilledontime,thespecificreasonsfornon-fulfillmentandthenextstepsplanshallbeelaborated | OnJuly18,2022,theHighPeople'sCourtofGuangdongProvinceruledthatGreenlanderInvestmentHoldingCo.,Ltd.andZhengWeixianshallpaytheCompanyRMB113,406,600fornon-fulfillmentofperformancecommitment.Asatthedateofthisreport,theCompanyreceivedRMB106,222,592.96inproceedsfromenforcementoftheruling,orRMB99,229,334.96excludingenforcementfeesappraisalfees,servicefees,applicabletaxes,andcosts. | |||||
2.WhereanyearningsforecastwasmadeforanyoftheCompany'sassetsorprojectsandthereportingperiodisstillwithintheforecastperiod,theCompanyshallexplainwhethertheperformanceoftheassetorprojectreachestheearningsforecastandwhy
□Applicable?NotApplicable
II.OccupationoftheCompany'sCapitalbytheControllingShareholderorOtherRelatedPartiesforNon-OperatingPurposes
□Applicable?NotApplicableNosuchcasesduringthereportingperiod.
III.IllegalProvisionofGuaranteesforExternalParties
□Applicable?NotApplicableNosuchcasesduringthereportingperiod.IV.ExplanationsGivenbytheBoardofDirectorsRegardingthe"ModifiedAuditOpinion"fortheLatestPeriod
□Applicable?NotApplicableV.ExplanationoftheBoardofDirectors,theBoardofSupervisors,andIndependentDirectors(IfAny)Regardingthe"ModifiedAuditOpinion"fortheReportingPeriod
□Applicable?NotApplicableVI.ReasonforChangesinAccountingPolicies,AccountingEstimatesorCorrectionsofMaterialAccountingErrorsasComparedtotheFinancialStatementsforthePriorYear?Applicable□Notapplicable
1.StartingfromJanuary1,2023,theCompanyhasadoptedtheregulationsonaccountingtreatmentthattheexemptionofinitialrecognitionshallnotapplytothedeferredincometaxrelatingtoassetsandliabilitiesarisingfromasingletransactionintheInterpretationofChinaAccountingStandardsforBusinessEnterprisesNo.16issuedbytheMOF.ThischangeinaccountingpolicyhasnoeffectontheCompany'sfinancialstatements.
VII.ReasonforChangesinScopeoftheConsolidatedFinancialStatementsasComparedtotheFinancialStatementsforthePriorYear?Applicable□NotapplicableFordetailsofthechangesinthescopeoftheconsolidatedfinancialstatementsduringthereportingperiod,pleaserefertoNote8"ChangesintheScopeofConsolidation"inPartXFinancialStatements.VIII.EngagementandDisengagementofAccountingFirm
Currentaccountingfirm
| Nameofthedomesticaccountingfirm | Pan-ChinaCertifiedPublicAccountantsLLP(SpecialGeneralPartnership) |
| TheCompany'spaymenttothedomesticaccountingfirm(inRMB10,000) | 315 |
| Consecutiveyearsofthedomesticauditserviceprovidedbythe | 22 |
| accountingfirm | |
| Namesofthedomesticcertifiedpublicaccountantsfromtheaccountingfirm | BianShanshan,WeiXiaohui |
| Consecutiveyearsofauditserviceprovidedbydomesticcertifiedpublicaccountantsfromtheaccountingfirm | 5yearsand2years,respectively |
Whethertheaccountingfirmwaschangedduringthecurrentperiod
□Yes?NoEngagementofanyaccountingfirmforinternalcontrolaudit,financialadvisor,orsponsor?Applicable□NotapplicableDuringtheyear,Pan-ChinaCertifiedPublicAccountantsLLP(SpecialGeneralPartnership)wasappointedastheCompany'sinternalcontrolauditor,andHuaxingSecuritiesCo.,Ltd.wasappointedastheCompany'ssponsor.
IX.PossibilityofDelistingaftertheDisclosureofThisReport
□Applicable?NotApplicableX.BankruptcyandReorganization
□Applicable?NotApplicableNosuchcasesduringthereportingperiod.
XI.MaterialLitigationandArbitration
□Applicable?NotApplicableDuringthereportingperiod,otherlawsuitsthatdidnotmeetthedisclosurecriteriaformateriallitigationprimarilyincludedpurchaseandsalescontractdisputes,withatotalamountofapproximatelyRMB466million,whicharenotexpectedtoincuranyprovisionoflargeamount.XII.PunishmentsandRectifications
□Applicable?NotApplicableNosuchcasesduringthereportingperiod.
XIII.CreditStandingoftheCompanyaswellasItsControllingShareholderandDeFactoController?Applicable□NotapplicableDuringthereportingperiod,theCompanyaswellasitscontrollingshareholderanddefactocontrollerhadgoodcreditstanding,withnosuchcasesasnon-fulfillmentofeffectivecourtjudgmentsoroutstandingdebtsoflargeamountsdueandunpaid.
XIV.MaterialRelatedPartyTransactions
1.Relatedpartytransactionsinrelationtoday-to-dayoperations?Applicable□Notapplicable
| Relatedparty | Relatedpartyrelationship | Typeofrelatedpartytransaction | Contentsofrelatedpartytransaction | Pricingprincipleofrelatedpartytransaction | Transactionprice | Transactionamount(inRMB10,000) | Asapercentageoftransactionsofsametype | Approvedtransactionlimit(inRMB10,000) | Overapprovedlimit | Methodofsettlement | Availablemarketpricefortransactionsofsametype | Disclosuredate | Indextodisclosure |
| ZoomlionHeavyIndustry | Shareholderholdingmorethan5%oftheCompany'sshares | Goodsorfinancialservices | Goodsorfinancialservices | Marketprice | -- | 8,116.42 | 17,000 | No | Aspercontractualterms | -- | April25,2023 | www.cninfo.com.cn | |
| Total | -- | -- | 8,116.42 | -- | 17,000 | -- | -- | -- | -- | -- | |||
| Detailsofanylarge-amountsalesreturn | N/A | ||||||||||||
| Givetheactualfulfillmentsituationduringthereportingperiod(ifany)whereanestimatebytypehadbeenmadeforthetotalamountsofroutinerelatedpartytransactionstooccurduringtheperiod | BeforetheCompany'sroutinerelatedpartytransactionsin2023,subsidiariescomprehensivelyassessedandestimatedtheirrelatedpartytransactions.However,duetochangesinthemarketandcustomerdemand,thereweredifferencesbetweentheCompany'srelatedpartytransactionsandtheactualsituation.Thiswasregularbusinessactivityandhadminimalimpactonday-to-dayoperationsandperformance. | ||||||||||||
| Reasonforanysignificantdifferencebetweenthetransactionpriceandthemarketreferenceprice(ifapplicable) | Notapplicable | ||||||||||||
2.Relatedpartytransactionsregardingpurchaseorsalesofassetsorequityinterests
□Applicable?NotApplicableNosuchcasesduringthereportingperiod.
3.Relatedpartytransactionsregardingjointinvestmentsinexternalparties
□Applicable?NotApplicableNosuchcasesduringthereportingperiod.
4.Currentassociatedrightsofcreditandliabilities
□Applicable?NotApplicableNosuchcasesduringthereportingperiod.
5.Transactionswithfinancecompanieswithrelatedpartyrelationships?Applicable□NotapplicableDepositbusiness
| Relatedparties | Relatedpartyrelationship | Maximumdailydepositlimit(inRMB10,000) | Rangeofdepositrate | Openingbalance(inRMB10,000) | Amountofthecurrentperiod | Endingbalance(inRMB10,000) | |
| Totaldepositedamount(inRMB10,000) | Totalwithdrawnamount(inRMB10,000) | ||||||
| ZoomlionFinanceCo.,Ltd. | Relatedcompanyofshareholderholdingmorethan5%oftheCompany's | 0 | Nointerestaccrued | 31 | 31 | ||
Loanbusiness
□Applicable?NotApplicableCreditorotherfinancialbusiness
□Applicable?NotApplicable
6.TransactionsbetweenthefinancecompanycontrolledbytheCompanyandrelatedparties
□Applicable?NotApplicableThereisnodeposit,loan,credit,orotherfinancialbusinessbetweenthefinancecompanycontrolledbytheCompanyandrelatedparties.
7.Othermaterialrelatedpartytransactions
□Applicable?NotApplicableNosuchcasesduringthereportingperiod.
XV.MaterialContractsandExecutionThereof
1.Trusts,subcontracts,andleases
(1)Trusts
□Applicable?NotApplicableNosuchcasesduringthereportingperiod.
(2)Subcontracts
□Applicable?NotApplicableNosuchcasesduringthereportingperiod.
(3)Leases?Applicable□NotapplicableDescriptionofleasesInaccordancewiththePropertyLeaseContractsignedbetweentheCompanyandtherelatedpartyFoshanShundeYinghaiInvestmentCo.,Ltd.,theCompanyleasedthe23rdfloorofYingfengBusinessBuildingat8YixingRoad,JunlanCommunity,BeijiaoTown,ShundeDistrict,FoshanCity,asthebusinesspremiseswithagrossfloorareaof1,578.68sqm.Therentpayablefor2023wasRMB1,348,100,andtheactualpaymentwasRMB1,348,100.AsatDecember31,2023,theaboveamountshavebeensettled.ItemsthatbroughtprofitsorlossestotheCompanyaccountingformorethan10%ofthegrossprofitoftheCompanyduringthereportingperiod
□Applicable?NotApplicableNoleasingitemsbroughtprofitsorlossestotheCompanyaccountingformorethan10%ofthegrossprofitoftheCompanyduringthereportingperiod.
2.Materialguarantees
?Applicable□Notapplicable
Unit:RMB10,000
| GuaranteesprovidedbytheCompanyanditssubsidiariesforexternalparties(excludingthoseforsubsidiaries) | ||||||||||
| Guaranteedparty | Disclosuredateoftheguaranteelimitannouncement | Guaranteelimit | Actualoccurrencedate | Actualguaranteeamount | Guaranteetype | Collateral(ifany) | Counter-guarantee(ifany) | Termofguarantee | Completedornot | Guaranteeforarelatedpartyornot |
| Buyer'screditbusiness | April25,2023 | 1,687.47 | August31,2021 | 1,687.47 | Jointandseveralliabilityguarantee | N/A | -- | 4years | No | No |
| Buyer'screditbusiness | April25,2023 | 687.85 | June27,2022 | 687.85 | Jointandseveralliabilityguarantee | N/A | -- | 3years | No | No |
| Buyer'screditbusiness | April25,2023 | 6,122.01 | September18,2022 | 6,122.01 | Jointandseveralliabilityguarantee | N/A | -- | 1year | No | No |
| Buyer'screditbusiness | April25,2023 | 353.7 | September9,2022 | 353.7 | Jointandseveralliabilityguarantee | N/A | -- | 1year | No | No |
| Buyer'screditbusiness | April25,2023 | 4,306.24 | June30,2021 | 4,306.24 | Jointandseveralliabilityguarantee | N/A | -- | 3years | No | No |
| Buyer'screditbusiness | April25,2023 | 6,787.84 | September5,2022 | 6,787.84 | Jointandseveralliabilityguarantee | N/A | -- | 2years | No | No |
| Buyer'screditbusiness | April25,2023 | 85,054.89 | -- | -- | -- | |||||
| Totalapprovedlimitforexternalguaranteeduringthereportingperiod(A1) | 105,000 | Totalactualamountofexternalguaranteeduringthereportingperiod(A2) | 19,945.11 | |||||||
| Totalapprovedlimitforexternalguaranteeattheendofthereportingperiod(A3) | 105,000 | Totalactualbalanceofexternalguaranteeattheendofthereportingperiod(A4) | 19,945.11 | |||||||
| GuaranteesprovidedbytheCompanyforitssubsidiaries | ||||||||||
| Guaranteedparty | Disclosuredateoftheguaranteelimitannouncement | Guaranteelimit | Actualoccurrencedate | Actualguaranteeamount | Guaranteetype | Collateral(ifany) | Counter-guarantee(ifany) | Termofguarantee | Completedornot | Guaranteeforarelatedpartyornot |
| ZhejiangShangfengSpecialBlowerIndustrialCo.,Ltd. | April25,2023 | 28,600 | February3,2023 | 9,754.12 | Jointandseveralliabilityguarantee | N/A | -- | 3years | No | Yes |
| ZhejiangShangfeng | April25,2023 | 22,350 | May22,2023 | 13,687.35 | Jointandseveral | N/A | -- | 1year | No | Yes |
| SpecialBlowerIndustrialCo.,Ltd. | liabilityguarantee | |||||||||
| ZhejiangShangfengSpecialBlowerIndustrialCo.,Ltd. | April25,2023 | 30,000 | October31,2023 | 2,596.74 | Jointandseveralliabilityguarantee | N/A | -- | 1year | No | Yes |
| ZhejiangShangfengSpecialBlowerIndustrialCo.,Ltd. | April25,2023 | 12,000 | March31,2022 | 8,700 | Jointandseveralliabilityguarantee | N/A | -- | 3years | No | Yes |
| ZhejiangShangfengSpecialBlowerIndustrialCo.,Ltd. | April25,2023 | 15,000 | July24,2023 | 8,105.96 | Jointandseveralliabilityguarantee | N/A | -- | 1year | No | Yes |
| GuangdongInforeTechnologyCo.,Ltd. | April25,2023 | 4,000 | March1,2021 | 12.72 | Jointandseveralliabilityguarantee | N/A | -- | 1year | No | Yes |
| GuangdongInforeTechnologyCo.,Ltd. | April25,2023 | 5,000 | August16,2023 | 1,079.03 | Jointandseveralliabilityguarantee | N/A | -- | 1year | No | Yes |
| GuangdongInforeSmartSanitationTechnologyCo.,Ltd. | April25,2023 | 2,000 | December1,2021 | Jointandseveralliabilityguarantee | N/A | -- | 4years | No | Yes | |
| ChangshaZhongbiaoEnvironmentalIndustryCo.,Ltd. | April25,2023 | 5,000 | September11,2021 | Jointandseveralliabilityguarantee | N/A | -- | 2years | No | Yes | |
| ShenzhenGreenOrientalEnvironmentalProtectionCo.,Ltd. | February2,2016 | 13,000 | August25,2016 | 2,795 | Jointandseveralliabilityguarantee | N/A | -- | 8years | No | Yes |
| ShouxianGreenlanderNewEnergyCo.,Ltd. | April30,2022 | 9,221 | November10,2022 | 7,170.3 | Jointandseveralliabilityguarantee | N/A | -- | 15years | No | Yes |
| XiantaoGreenlanderEnvironmentalPowerGenerationCo.,Ltd. | April30,2022 | 27,870 | June7,2022 | 25,210 | Jointandseveralliabilityguarantee | N/A | -- | 13years | No | Yes |
| Poyang | August25, | 25,000 | April26, | 25,000 | Jointand | N/A | -- | 10years | No | Yes |
| GreenlanderRenewableEnergyCo.,Ltd. | 2022 | 2023 | severalliabilityguarantee | |||||||
| MaomingInforeEnvironmentWaterTreatmentTechnologyCo.,Ltd. | December26,2017 | 15,000 | March20,2018 | 9,435.05 | Jointandseveralliabilityguarantee | N/A | -- | 15years | No | Yes |
| LianjiangGreenlanderNewEnergyCo.,Ltd. | April30,2022 | 9,963 | November30,2020 | 7,641.49 | Jointandseveralliabilityguarantee | N/A | -- | 15years | No | Yes |
| LianjiangGreenlanderNewEnergyCo.,Ltd. | April30,2022 | 17,600 | May25,2022 | 8,648.2 | Jointandseveralliabilityguarantee | N/A | -- | 15years | No | Yes |
| Lu'anZhongfengUrbanEnvironmentalServiceCo.,Ltd. | April23,2021 | 8,000 | June8,2021 | 7,400 | Jointandseveralliabilityguarantee | N/A | -- | 13years | No | Yes |
| TongshanTongdaWaterTreatmentTechnologyCo.,Ltd. | April25,2020 | 6,000 | February1,2021 | 925 | Jointandseveralliabilityguarantee | N/A | -- | 18years | No | Yes |
| ChangdeZelianEnvironmentalServiceCo.,Ltd. | April23,2021 | 12,000 | May26,2021 | 11,700 | Jointandseveralliabilityguarantee | N/A | -- | 15years | No | Yes |
| XiantaoYingheEnvironmentalProtectionCo.,Ltd. | August21,2020 | 30,100 | January20,2021 | 12,200 | Jointandseveralliabilityguarantee | N/A | -- | 15years | No | Yes |
| BiyangFengheNewEnergyPowerCo.,Ltd. | April25,2023 | 22,000 | May23,2022 | 21,426 | Jointandseveralliabilityguarantee | N/A | -- | 14years | No | Yes |
| ChangshaZoomlionChanggaoEnvironmentalIndustryCo.,Ltd. | October24,2019 | 10,000 | March25,2020 | 3,000 | Jointandseveralliabilityguarantee | N/A | -- | 5years | No | Yes |
| XiangtanYinglianEnvironmentalIndustryCo.,Ltd. | April30,2022 | 15,000 | July5,2022 | 4,000 | Jointandseveralliabilityguarantee | N/A | -- | 10years | No | Yes |
| Tongren | April30, | 14,300 | August19, | 9,750 | Jointand | N/A | -- | 15years | No | Yes |
| BijiangDistrictZhongfengEnvironmentalIndustryCo.,Ltd. | 2022 | 2022 | severalliabilityguarantee | |||||||
| Huai'anYingheEnvironmentTechnologyCo.,Ltd. | August25,2022 | 15,000 | December26,2022 | 5,595 | Jointandseveralliabilityguarantee | N/A | -- | 15years | No | Yes |
| InforeZoomlionUrbanEnvironmentalServiceCo.,Ltd. | April25,2023 | 3,000 | November19,2023 | Jointandseveralliabilityguarantee | N/A | -- | 1year | No | Yes | |
| ZhejiangShangfengSpecialBlowerIndustrialCo.,Ltd. | April25,2023 | 17,000 | -- | -- | -- | |||||
| GuangdongInforeTechnologyCo.,Ltd. | April25,2023 | 1,000 | -- | -- | -- | |||||
| GuangdongInforeSmartSanitationTechnologyCo.,Ltd. | April25,2023 | 1,000 | -- | -- | -- | |||||
| LianjiangGreenlanderNewEnergyCo.,Ltd. | April25,2023 | 1,200 | -- | -- | -- | |||||
| LilingZhaoyangEnvironmentalProtectionCo.,Ltd. | April25,2023 | 50,000 | -- | -- | -- | |||||
| Huai'anChenjieEnvironmentalEngineeringCo.,Ltd. | April25,2023 | 5,000 | -- | -- | -- | |||||
| Otherwholly-ownedsubsidiaries | April25,2023 | 7,000 | -- | -- | -- | |||||
| Totalapprovedguaranteelimitforsubsidiariesduringthereportingperiod(B1) | 231,150 | Totalactualguaranteeamountforsubsidiariesduringthereportingperiod(B2) | 68,935.92 | |||||||
| Totalapprovedguaranteelimitforsubsidiariesattheendofthereportingperiod | 518,204 | Totalactualguaranteebalanceforsubsidiariesattheendofthereporting | 205,831.96 | |||||||
| (B3) | period(B4) | ||||||||||
| Guaranteesbetweensubsidiaries | |||||||||||
| Guaranteedparty | Disclosuredateoftheguaranteelimitannouncement | Guaranteelimit | Actualoccurrencedate | Actualguaranteeamount | Guaranteetype | Collateral(ifany) | Counter-guarantee(ifany) | Termofguarantee | Completedornot | Guaranteeforarelatedpartyornot | |
| Totalapprovedguaranteelimitforsubsidiariesduringthereportingperiod(C1) | 0 | Totalactualguaranteeamountforsubsidiariesduringthereportingperiod(C2) | 0 | ||||||||
| Totalapprovedguaranteelimitforsubsidiariesattheendofthereportingperiod(C3) | 0 | Totalactualguaranteebalanceforsubsidiariesattheendofthereportingperiod(C4) | 0 | ||||||||
| Totalguaranteeamount(totalofthethreekindsabove) | |||||||||||
| Totalapprovedguaranteelimitduringthereportingperiod(A1+B1+C1) | 336,150 | Totalactualguaranteeamountduringthereportingperiod(A2+B2+C2) | 88,881.03 | ||||||||
| Totalapprovedguaranteelimitattheendofthereportingperiod(A3+B3+C3) | 623,204 | Totalactualguaranteebalanceattheendofthereportingperiod(A4+B4+C4) | 225,777.07 | ||||||||
| Totalactualguarantees(A4+B4+C4)asapercentageoftheCompany'snetassets | 12.95% | ||||||||||
| Ofwhich: | |||||||||||
| Amountofguaranteesprovidedforshareholders,theactualcontrollerandtheirrelatedparties(D) | 0 | ||||||||||
| Balanceofdebtguaranteesprovideddirectlyorindirectlyfortheguaranteedpartywithaliability-to-assetratioover70%(E) | 156,651.97 | ||||||||||
| Totalofthethreetypesofguaranteesabove(D+E+F) | 156,651.97 | ||||||||||
| DescriptionofanycasesduringthereportingperiodwhereunexpiredguaranteecontractsledtoguaranteeliabilityorhadindicationsthattheCompanymayassumejointandseveralliabilitiesforcompensation(ifapplicable). | N/A | ||||||||||
Descriptionofcompositeguarantees
3.Entrustedcashmanagement
(1)Entrustedwealthmanagement?Applicable□NotapplicableOverviewofentrustedwealthmanagementduringthereportingperiod
Unit:RMB10,000
| Type | Fundingsource | Entrustedamount | Undueamount | Unrecoveredoverdueamount | Accruedimpairmentamountforunrecoveredoverduewealth |
| management | |||||
| Bank'swealthmanagementproduct | Ownfunds | 85,630 | 0 | 0 | 0 |
| Total | 85,630 | 0 | 0 | 0 | |
High-riskentrustedwealthmanagementwithamaterialsingleamountorlowsecurityandlowliquidity
□Applicable?NotApplicableEntrustedwealthmanagementwithexpectedirrecoverableprincipalorothercircumstancesthatmayleadtoimpairment
□Applicable?NotApplicable
(2)Entrustedloans
□Applicable?NotApplicableNosuchcasesduringthereportingperiod.
4.Othermaterialcontracts
□Applicable?NotApplicableNosuchcasesduringthereportingperiod.
XVI.OtherMaterialEvents
□Applicable?NotApplicableNosuchcasesduringthereportingperiod.
XVII.MaterialEventsofSubsidiaries?Applicable□NotapplicableOnApril29,2022,theProposalontheRevisedPlanofInforeEnvironmentTechnologyGroupCo.,Ltd.fortheSpin-offofZhejiangShangfengSpecialBlowerIndustrialCo.,Ltd.tobeListedontheChiNextBoardwasdeliberatedandapprovedatthe18thmeetingoftheNinthBoardofDirectors.
OnMay24,2022,theproposalonthespin-offofZhejiangShangfengSpecialBlowerIndustrialCo.,Ltd.("Shangfeng")forlistingontheChiNextmarketofSZSEweredeliberatedandapprovedattheCompany's2021AnnualGeneralMeetingofShareholders.Fordetails,pleaserefertotheannouncementpublishedonApril30,2022onthemediaforinformationdisclosuredesignatedbytheCompanyandCninfo(www.cninfo.com.cn).
OnJune30,2022,SZSEacceptedtheapplicationforIPOandlistingontheChiNextsubmittedbyShangfeng.OnJuly25,2022,SZSEissuedtheLetteronReviewandInquiryoftheApplicationDocumentsofZhejiangShangfengHigh-techSpecialWindIndustrialCo.,Ltd.forIPOandListingontheChiNext(S.H.H.[2022]No.010721).ShangfengsubmitteditsreplytotheletteronDecember7,2022.
OnDecember15,2022,SZSEissuedtheLetterontheSecondRoundofReviewandInquiryoftheApplicationDocumentsofZhejiangShangfengSpecialBlowerIndustrialCo.,Ltd.forIPOandListingontheChiNext(S.H.H.[2022]No.011129).ShangfengsubmitteditsreplytotheletteronMarch17,2023.
OnJuly21,2023,SZSErendereditsdecision(S.Z.S.S.[2023]No.586)toterminatethereviewprocessfortheintendedIPOandlistingofZhejiangShangfengSpecialBlowerIndustrialCo.,Ltd.ontheChiNext.
PartVIIShareChangesandShareholderInformationI.ShareChanges
1.Sharechanges
Unit:Share
| Beforechange | Increase/decrease(+/-) | Afterchange | |||||||
| Quantity | Ratio | Newissues | Sharesasdividendconvertedfromprofit | Sharesasdividendconvertedfromcapitalreserves | Others | Sub-total | Quantity | Ratio | |
| I.RestrictedShares | 1,838,140 | 0.06% | 0 | 0 | 0 | -365,671 | -365,671 | 1,472,469 | 0.05% |
| 1.SharesheldbytheState | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 2.Sharesheldbystate-ownedcorporations | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 3.Sharesheldbyotherdomesticinvestors | 1,838,140 | 0.06% | 0 | 0 | 0 | -365,671 | -365,671 | 1,472,469 | 0.05% |
| Including:Sharesheldbydomesticcorporations | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Sharesheldbydomesticindividuals | 1,838,140 | 0.06% | 0 | 0 | 0 | -365,671 | -365,671 | 1,472,469 | 0.05% |
| 4.Sharesheldbyoverseasinvestors | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Including:Sharesheldbyoverseascorporations | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Sharesheldbyoverseasindividuals | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| II.UnrestrictedShares | 3,177,667,419 | 99.94% | 1,111 | 0 | 0 | 365,671 | 366,782 | 3,178,034,201 | 99.95% |
| 1.RMB- | 3,177,667,419 | 99.94% | 1,111 | 0 | 0 | 365,671 | 366,782 | 3,178,034,201 | 99.95% |
| denominatedcommonshares | |||||||||
| 2.Domesticallylistedforeignshares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 3.Overseaslistedforeignshares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 4.Others | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| III.TotalNumberofShares | 3,179,505,559 | 100.00% | 1,111 | 0 | 0 | 0 | 1,111 | 3,179,506,670 | 100.00% |
Reasonsforsharechanges?Applicable□Notapplicable
1.Upontheexpiryofthelock-upperiodduetoachangeintheCompany'sseniorofficerpositions,thelock-uponseniorofficer-heldshareswaslifted,resultinginadecreaseof365,671restrictedsharesandacommensurateriseof365,671unrestrictedshares.
2.AsatDecember31,2023,16,944sharesintotalwereconvertedfromtheInforeConvertibleBondsissuedbytheCompany.Inparticular,1,111shareswereconvertedin2023,resultinginanincreaseintheCompany'snon-restrictedsharesby1,111.Approvalofchangesinsharecapital?Applicable□Notapplicable
WiththeapprovalgrantedbytheCSRCunderDocumentZ.J.X.K.[2020]No.2219,theCompanypubliclyissued14,761,896convertiblecorporatebondsonNovember4,2020,withaparvalueofRMB100andatotalamountofRMB1,476,189,600.PerapprovalofSZSE,theCompany'sconvertiblecorporatebondsofRMB1,476,189,600havebeenlistedfortradingonSZSE,startingonDecember2,2020.TheInforeConvertibleBondsinthisofferingareconvertibleintotheCompany'ssharesfromMay10,2021.Transferofshares?Applicable□Notapplicable
Duringthereportingperiod,ChinaSecuritiesDepositoryandClearing(Shenzhen)CorporationLimitedhandledtheshareregistrationproceduresfor1,111sharesconvertedfromconvertiblecorporatebonds.Effectsofsharechangesonbasicearningspershare,dilutedearningspershare,netassetvaluepershareattributabletotheCompany'scommonshareholdersandotherfinancialindicatorsoftheprioryearandtheprioraccountingperiod,respectively
□Applicable?NotApplicableOtherinformationthattheCompanydeemsdisclosableordisclosableasrequiredbythesecuritiesregulatoryauthorities
□Applicable?NotApplicable
2.Changesinrestrictedshares
?Applicable□Notapplicable
Unit:Share
| Nameofshareholder | Numberofsharesheldatthebeginningoftheperiod | Increaseofrestrictedsharesduringtheperiod | Decreaseofrestrictedsharesduringtheperiod | Numberofsharesheldattheendoftheperiod | Reasonsfortradingrestriction | Dateofliftingtradingrestriction |
| Others | 1,838,140 | 0 | 365,671 | 1,472,469 | Locked-upsharesofseniorofficers | Annualrestrictionliftingunderregulations |
| Total | 1,838,140 | 0 | 365,671 | 1,472,469 | -- | -- |
II.IssuanceandListingofSecurities
1.Issuanceofsecurities(exclusiveofpreferenceshares)duringthereportingperiod
□Applicable?NotApplicable
2.Changesintotalnumberofshares,shareholderstructureandassetandliabilitystructures?Applicable□Notapplicable
1.Upontheexpiryofthelock-upperiodduetoachangeintheCompany'sseniorofficerpositions,thelock-uponseniorofficer-heldshareswaslifted,resultinginadecreaseof365,671restrictedsharesandacommensurateriseof365,671unrestrictedshares.
2.WiththeapprovalgrantedbytheCSRCunderDocumentZ.J.X.K[2020]No.2219,theCompanypubliclyissued14,761,896convertiblecorporatebondsonNovember4,2020,eachwithaparvalueofRMB100andthetotalissuedamountisRMB1,476,189,600.PerapprovalofSZSE,theCompany'sconvertiblecorporatebondsofRMB1,476,189,600havebeenlistedfortradingonSZSE,startingonDecember2,2020.TheInforeConvertibleBondsinthisofferingareconvertibleintotheCompany'ssharesfromMay10,2021.OnJanuary3,2024,theCompanydisclosedtheAnnouncementonResultsofConversionofConvertibleBondsandChangesinShareCapitalintheFourthQuarterof2023.AsatDecember31,2023,16,944sharesintotalwereconvertedfromthe"InforeConvertibleBonds"issuedbytheCompany.Inparticular,1,111shareswereconvertedin2023,resultinginanincreaseinnon-restrictedsharesby1,111.
3.Existinginternalemployeeshares
□Applicable?NotApplicableIII.ControllingShareholdersandDeFactoController
1.Numberofshareholdersandtheirshareholdings
Unit:Share
| Numberofshareholdersofcommonsharesattheendofthereportingperiod | 35,253 | Numberofshareholdersattheendofthemonthpriortothedisclosuredateofthisreport | 34,412 | Numberofpreferenceshareholderswithresumedvotingpowerattheendofthereportingperiod(ifany)(seeNote8) | 0 | Numberofpreferenceshareholderswithresumedvotingpowerattheendofthepreviousmonthpriortothedisclosuredateofthisreport(ifany)(seeNote8) | 0 | |
| Shareholdersholdingover5%oftotalsharesortop10shareholders | ||||||||
| Nameofshareholder | Natureofshareholder | Shareholdingratio | Shareholdingsattheendofthereportingperiod | Increase/decreaseduringthereportingperiod | Numberofrestrictedsharesheld | Numberofunrestrictedsharesheld | Sharespledged,taggedorfrozen | |
| Sharestatus | Quantity | |||||||
| Ningbo | Domestic | 32.02% | 1,017,997,38 | 0 | 0 | 1,017,997,38 | Pledged | 610,798,429 |
| InforeAssetManagementCo.,Ltd. | non-state-ownedcorporation | 2 | 2 | |||||
| ZoomlionHeavyIndustryScienceandTechnologyCo.,Ltd. | Domesticnon-state-ownedcorporation | 12.56% | 399,214,659 | 0 | 0 | 399,214,659 | Notapplicable | 0 |
| InforeGroupCo.,Ltd. | Domesticnon-state-ownedcorporation | 11.31% | 359,609,756 | 0 | 0 | 359,609,756 | Pledged | 100,000,000 |
| Hongchuang(Shenzhen)InvestmentCenter(LimitedPartnership) | Domesticnon-state-ownedcorporation | 9.76% | 310,423,813 | 0 | 0 | 310,423,813 | Notapplicable | 0 |
| InforeEnvironmentTechnologyGroupCo.,Ltd.－TheSecondEmployeeStockOwnershipPlan | Others | 2.04% | 64,789,616 | 0 | 0 | 64,789,616 | Notapplicable | 0 |
| HeJianfeng | Domesticnaturalperson | 2.00% | 63,514,690 | 0 | 0 | 63,514,690 | Notapplicable | 0 |
| ZaraGreenHongKongLimited | Foreigncorporation | 1.72% | 54,778,335 | 0 | 0 | 54,778,335 | Notapplicable | 0 |
| ChenLiyuan | Domesticnaturalperson | 0.98% | 31,018,000 | 0 | 0 | 31,018,000 | Notapplicable | 0 |
| GuangdongHengjianCapitalManagementHoldingCo.,Ltd. | State-ownedcorporation | 0.88% | 28,059,147 | 0 | 0 | 28,059,147 | Notapplicable | 0 |
| HongKongSecuritiesClearingCompanyLtd. | Foreigncorporation | 0.86% | 27,190,851 | 10,888,577 | 0 | 27,190,851 | Notapplicable | 0 |
| Strategicinvestor/generalcorporationbecomingatop10shareholderinarightsissue(ifany)(seeNote3) | Notapplicable. | |||||||
| Relatedpartyoracting-in-concertrelationshipamongtheaforementionedshareholders | NingboInforeAssetManagementCo.,Ltd.andInforeGroupCo.,Ltd.sharethesamedefactocontrollerHeJianfeng,andtheyarepersonsactinginconcertmutually.Apartfromthat,theCompanyisnotawareofanyrelatedpartyoracting-in-concertrelationship(asdefinedintheMeasuresfortheAdministrationoftheTakeoverofListedCompanies)amongothershareholdersaforementioned. | |||||||
| Shareholdersaboveentrusting/entrustedwithorwaivingvotingrights | Notapplicable. | |||
| Top10shareholderswithrepurchaseaccount(ifany)(seeNote10) | NA | |||
| Shareholdingoftop10unrestrictedshareholders | ||||
| Nameofshareholder | Numberofunrestrictedsharesattheendofthereportingperiod | Typeofshare | ||
| Typeofshare | Quantity | |||
| NingboInforeAssetManagementCo.,Ltd. | 1,017,997,382 | RMB-dominatedcommonshares | 1,017,997,382 | |
| ZoomlionHeavyIndustryScienceandTechnologyCo.,Ltd. | 399,214,659 | RMB-dominatedcommonshares | 399,214,659 | |
| InforeGroupCo.,Ltd. | 359,609,756 | RMB-dominatedcommonshares | 359,609,756 | |
| Hongchuang(Shenzhen)InvestmentCenter(LimitedPartnership) | 310,423,813 | RMB-dominatedcommonshares | 310,423,813 | |
| InforeEnvironmentTechnologyGroupCo.,Ltd.－TheSecondEmployeeStockOwnershipPlan | 64,789,616 | RMB-dominatedcommonshares | 64,789,616 | |
| HeJianfeng | 63,514,690 | RMB-dominatedcommonshares | 63,514,690 | |
| ZaraGreenHongKongLimited | 54,778,335 | RMB-dominatedcommonshares | 54,778,335 | |
| ChenLiyuan | 31,018,000 | RMB-dominatedcommonshares | 31,018,000 | |
| GuangdongHengjianCapitalManagementHoldingCo.,Ltd. | 28,059,147 | RMB-dominatedcommonshares | 28,059,147 | |
| HongKongSecuritiesClearingCompanyLtd. | 27,190,851 | RMB-dominatedcommonshares | 27,190,851 | |
| Relatedpartyoracting-in-concertrelationshipamongtop10unrestrictedpublicshareholders,aswellasbetweentop10unrestrictedpublicshareholdersandtop10shareholders | NingboInforeAssetManagementCo.,Ltd.andInforeGroupCo.,Ltd.sharethesamedefactocontrollerHeJianfeng,andtheyarepersonsactinginconcertmutually.Apartfromthat,theCompanyisnotawareofanyrelatedpartyoracting-in-concertrelationship(asdefinedintheMeasuresfortheAdministrationoftheTakeoverofListedCompanies)amongothershareholdersaforementioned. | |||
| Top10commonshareholdersinvolvedinsecuritiesmargintrading(ifany)(seeNote4) | InforeEnvironmentTechnologyGroupCo.,Ltd.-SecondEmployeeStockOwnershipPlanholds64,789,616sharesintheCompanythroughcreditaccounts. | |||
Toptencommonshareholdersinvolvedinsecuritieslendingthroughsecuritiesfinancingtransactions
□Applicable?NotApplicableChangesinthetoptencommonshareholderscomparedtothepreviousperiod?Applicable□Notapplicable
Unit:Share
| Changesinthetoptencommonshareholderscomparedtotheendofthepreviousperiod | |||||
| Nameofshareholder | Addition/withdrawalduringthereportingperiod | Outstandingbalanceofsecuritieslentthroughsecuritiesfinancingtransactionsattheendoftheperiod | Numberofsharesheldinshareholders'generalandcreditaccounts,andsecuritieslentthroughsecuritiesfinancingtransactionsthathavenotbeenreturnedbytheendoftheperiod | ||
| Totalnumber | Asapercentageof | Totalnumber | Asapercentageof | ||
| totalsharecapital | totalsharecapital | ||||
| HongKongSecuritiesClearingCompanyLtd. | Addition | 0 | 0.00% | 27,190,851 | 0.86% |
| NingboYingtaiInvestmentPartnership(LimitedPartnership) | Withdrawal | 0 | 0.00% | 10,228,414 | 0.32% |
Whetheranytop10commonshareholdersortop10unrestrictedcommonshareholdersoftheCompanyconductedanyagreedrepurchasetransactionsduringthereportingperiod
□Yes?NoNosuchcasesduringthereportingperiod.
2.Controllingshareholder
Natureofcontrollingshareholder:NaturalpersonTypeofcontrollingshareholder:Corporation
| Nameofcontrollingshareholder | Legalrepresentative/Person-in-charge | Dateofincorporation | Organizationcode | Principalbusinessactivities |
| NingboInforeAssetManagementCo.,Ltd. | WeiTing | May2,2017 | 91330206MA290L5J3L | Assetmanagement,industrialinvestment,investmentmanagement. |
| Otherdomesticallyandoverseaslistedcompaniesascontrollingshareholdersandequityparticipantsduringthereportingperiod | Notapplicable. | |||
Changesincontrollingshareholdersduringthereportingperiod
□Applicable?NotApplicableDuringthereportingperiod,therewasnochangeincontrollingshareholdersoftheCompany.
3.DefactocontrollerandpersonsactinginconcertNatureofdefactocontroller:DomesticnaturalpersonTypeofdefactocontroller:Naturalperson
| Nameofdefactocontroller: | Relationshipwithdefactocontroller | Nationality | Residencyinothercountry/regionornot |
| HeJianfeng | Himself | China | Yes |
| Mainoccupationandposition | ChairmanoftheBoardandPresidentofInforeGroupCo.,Ltd. | ||
| Controllinginterestsinotherdomesticallyandoverseaslistedcompaniesinthepast10years | BeijingBainationPicturesCo.,Ltd.(Stockcode:300291)JasonFurniture(Hangzhou)Co.,Ltd.(Stockcode:603816) | ||
Changeindefactocontrollerduringthereportingperiod
□Applicable?NotApplicableDuringthereportingperiod,therewasnochangeinthedefactocontrolleroftheCompany.
OwnershipandcontrolrelationshipbetweenthedefactocontrollerandtheCompany
ThedefactocontrollercontrolstheCompanyviatrustorotherassetmanagementarrangement
□Applicable?NotApplicable
4.ThepledgedsharesintheCompany'scontrollingshareholderorlargestshareholderanditspersonsactinginconcertaccountfor80%oftheirtotalshareholdings
□Applicable?NotApplicable
5.Othercorporateshareholderswithashareholdingofmorethan10%
?Applicable□Notapplicable
| Nameofcorporateshareholder | Legalrepresentative/Person-in-charge | Dateofincorporation | Registeredcapital | Principalbusinessormanagementactivities |
| ZoomlionHeavyIndustryScienceandTechnologyCo.,Ltd. | ZhanChunxin | August31,1999 | RMB8,677,992,236 | Development,production,andsalesofengineeringmachinery,agriculturalmachinery,sanitationmachinery,cranetrucksandexclusivechassis,fireenginesandexclusivechassis,aerialworkmachines,emergencyandrescueequipment,miningmachinery,machineryincoalmines,materialtransportationfacilities,othermachinery,metalandnon-metalmaterials,andnewhigh-techproductsofoptical-electro-mechanicalintegrationandprovisionofleasingandafter-saletechnicalservices;Salesofbuildinganddecorativematerials,vehiclesforengineeringandmetalmaterials,chemicalmaterials,andchemicalproducts(excludinghazardouschemicalsandmonitoringproducts);Salesoflubricantoil,lubricatinggreaseandhydraulicoil(excludinghazardouschemicals);Retailofrefinedoilproducts(operatedbylicensedsubsidiariesonly);Operationofcommodityandtechnologyimportandexportbusinesses;Investmentinrealestatewithself-ownedassets(withoutpermittocarryoutnationalfinanciallyregulatedandfinancialcreditbusinessessuchasabsorbingdeposits,fund-raisingandcollection,entrustedloans,andissuingnotesandlending).Salesofusedvehicles;Disassemblyandrecoveryofdisused |
| machineryequipment.(Businessactivitiessubjecttoapprovalunderlawsshallnotbecarriedoutunlessapprovalfromcompetentauthoritieshasbeenobtained.) | ||||
| InforeGroupCo.,Ltd. | HeJianfeng | April19,2002 | RMB4,450,000,000 | Investmentinvariousindustries,investmentmanagement,investmentconsultation,andassetmanagement;Enterprisemanagementandenterpriseconsulting;Computerinformationservicesandsoftwareservices;Filmproductionandplanning(basedonvalidatedlicenses);Advertisingplanningandproduction;Appraisalandconsultancyservicesofartwork(excludingivoryandivoryproducts)andcollectibles;Planningofcultureandartexhibitions;Salesofmaternalandbabyproductsandclothing;Supplyandmarketingofdomesticbusinessandgoodsexceptfortheaboveitems;Businessinformationconsultingservices;Importandexportofcommoditiesortechnologies(excludingtheimportandexportofcommoditiesandtechnologiesthatareprohibitedbythestateorinvolveadministrativereviewandapproval);R&D,manufacturing,salesandleasingofsanitationequipment,robots,newenergyvehicles,andenvironmentalmonitoringequipment;Cleaning,collection,recycling,transportation,andtreatmentservicesofurbandomesticwaste;Undertakingenvironmentalengineeringandwaterpollutioncontrolprojects;R&D,manufacturingandsalesofventilators,andair-cooling,water-coolingandairconditioningequipment;R&D,manufacturing,andsalesofnewmaterials,equipment,andproducts.(Productionandmanufacturingprojectsareoperatedbysubsidiaries)(Businessactivitiessubjecttoapprovalunderlawsshallnotbecarriedoutwithouttheapprovalofrelevantauthorities.) |
6.LimitationsonshareholdingreductionbytheCompany'scontrollingshareholder,defactocontroller,reorganizerandothercommitmentmakers
□Applicable?NotApplicable
IV.RepurchaseofSharesduringtheReportingPeriod
Progressofsharerepurchase
□Applicable?NotApplicableProgressofreducingtherepurchasedsharesbywayofcentralizedbidding:
□Applicable?NotApplicable
PartVIIIInformationonPreferenceShares
□Applicable?NotApplicableDuringthereportingperiod,theCompanyhadnopreferenceshares.
PartIXInformationonBonds?Applicable□Notapplicable
I.EnterpriseBond
□Applicable?NotApplicableDuringthereportingperiod,theCompanyhadnoenterprisebonds.
II.CorporateBond
□Applicable?NotApplicableDuringthereportingperiod,theCompanyhadnocorporatebonds.
III.DebtFinancingInstrumentsofNon-financialEnterprises
□Applicable?NotApplicableDuringthereportingperiod,theCompanyhadnodebtfinancinginstrumentsofnon-financialenterprises.IV.ConvertibleCorporateBonds?Applicable□Notapplicable
1.PreviousadjustmentstoconversionpriceWiththeapprovalgrantedbytheCSRCunderDocumentZ.J.X.K.[2020]No.2219,theCompanypubliclyissued14,761,896convertiblecorporatebondsonNovember4,2020,withaparvalueofRMB100andatotalamountofRMB1,476,189,600.TheinitialconversionpriceofthistrancheofconvertiblebondsisRMB8.31pershare.Incaseofdistributionofbonusshares,increaseofsharecapitalthroughconversion,issuanceofnewshares(excludingtheincreasedsharecapitalduetotheconversionofconvertiblecorporatebondsissuedthistime),allotmentofsharesanddistributionofcashdividends,theconversionpricewillbeadjustedaccordinglypursuanttorelevantlawsandregulations.
OnJuly8,2021,theCompany'sequitydistributionfor2020wascompleted.InaccordancewiththeissuancetermsoftheProspectusforPublicOfferingofConvertibleCorporateBondsbyInforeEnvironmentTechnologyGroupCo.,Ltd.andtherelevantregulationsoftheCSRContheissuanceofconvertiblebonds,theconversionpriceofInforeConvertibleBondswasadjustedfromtheoriginalRMB8.31persharetoRMB8.19persharesinceJuly8,2021.TheadjustedconversionpricetookeffectonJuly8,2021.OnJuly20,2022,theCompany'sequitydistributionfor2021wascompleted.InaccordancewiththerelevantrequirementsoftheProspectusforPublicOfferingofConvertibleCorporateBondsbyInforeEnvironmentTechnologyGroupCo.,Ltd.,theconversionpriceofInforeConvertibleBondswasadjustedfromtheoriginalRMB8.19persharetoRMB8.09pershare,effectiveonJuly20,2022.TheadjustedconversionpricetookeffectasfromJuly20,2022.
OnJuly18,2023,theCompany'sequitydistributionfor2022wascompleted.InaccordancewiththerelevantrequirementsoftheProspectusforPublicOfferingofConvertibleCorporateBondsbyInforeEnvironmentTechnologyGroupCo.,Ltd.,theconversionpriceofInforeConvertibleBondswasadjustedfromtheoriginalRMB8.09persharetoRMB7.98pershare,effectiveonJuly18,2023.TheadjustedconversionpricetookeffectonJuly18,2023.
2.Informationoncumulativeconversionofbondsintoshares
?Applicable□Notapplicable
| Abbreviatednameofconvertiblebond | Startandenddateofconversion | Totalissuednumber(sheet) | Totalissuedamount(RMB) | Accumulatedconversionamount(RMB) | Accumulatedconversionnumber(share) | ThenumberofsharesconvertedasapercentageofthetotalissuedsharesintheCompanybeforestartofconversion | Amountunconverted(RMB) | Unconvertedamountasapercentageofthetotalissuedamount |
| InforeConvertibleBonds | 2021-05-10 | 14,761,896 | 1,476,189,600.00 | 138,900.00 | 16,944 | 0.00% | 1,476,050,700.00 | 99.99% |
3.Informationontop10convertiblebondholders
| No. | Nameofconvertiblebondholder | Natureofconvertiblebondholder | Numberofconvertiblebondsheldattheendofthereportingperiod(sheet) | Amountofconvertiblebondsheldattheendofthereportingperiod(RMB) | Proportionofconvertiblebondsheldattheendofthereportingperiod |
| 1 | RenminStable,Double-BenefitFixed-incomePensionProduct-IndustrialandCommercialBankofChinaLimited | Others | 510,449 | 51,044,900.00 | 3.46% |
| 2 | CNPCEnterpriseAnnuityProgram-IndustrialandCommercialBankofChinaLimited | Others | 469,484 | 46,948,400.00 | 3.18% |
| 3 | CITICSecurities-SanyHeavyIndustryCo.,Ltd.-CITICSecuritiesSanyZunxiangCustomizedNo.1SingleAssetManagementProgram | Others | 460,310 | 46,031,000.00 | 3.12% |
| 4 | IndustrialandCommercialBankofChinaLimited-Aegon-industrialHengyiBondSecuritiesInvestmentFund | Others | 360,000 | 36,000,000.00 | 2.44% |
| 5 | ChinaAMCYannianyishouFixed-incomePensionProduct-AgriculturalBankofChinaLimited | Others | 343,276 | 34,327,600.00 | 2.33% |
| 6 | FullgoalFuyiAggressiveFixed-incomePensionProduct-IndustrialandCommercialBankofChinaLimited | Others | 336,594 | 33,659,400.00 | 2.28% |
| 7 | ChinaAMC-HexieHealthInsuranceCo.,Ltd.-UniversalLifeInsurance-ChinaAMC-HuajingFixedIncomeNo.1SingleAssetManagementProgram | Others | 300,791 | 30,079,100.00 | 2.04% |
| 8 | CITICBankCorporationLimited-XinAoCreditBondSecuritiesInvestmentFund | Others | 300,000 | 30,000,000.00 | 2.03% |
| 9 | NationalSocialSecurityFund210Portfolio | Others | 294,176 | 29,417,600.00 | 1.99% |
| 10 | CCBCorporationEnterpriseAnnuityProgram-IndustrialandCommercialBankofChinaLimited | Others | 292,404 | 29,240,400.00 | 1.98% |
4.Informationonmaterialchangesintheprofitability,assetstatusandcreditstandingofguarantor
□Applicable?NotApplicable
5.ChangeintheCompany'sliabilitiesandcreditstanding,andcasharrangementsfordebtrepaymentincomingyearsattheendofthereportingperiod
OnJune19,2023,ChinaChengxinInternationalCreditRatingCo.,Ltd.issuedtheFollow-upRatingReportonthePublicOfferingofConvertibleCorporateBondsbyInforeEnvironmentTechnologyGroupCo.,Ltd.(2023)(X.P.W.H.Z.[2023]TrackNo.0566),assigningtheCompanyacorporatecreditratingofAA+,withstableratingoutlookforthecoming12to18months.Fordetails,pleaserefertotheFollow-upRatingReportonPublicOfferingofConvertibleCorporateBondsbytheCompanydisclosedbytheCompany(2023)onJune21,2023onCninfo(www.cninfo.com.cn).
TheprimarysourcesoffundingfortheCompanytopaytheprincipalandinterestoftheconvertiblebondsinthefutureareasfollows:(1)TheCompanyseeksorganicgrowthbystrengtheningfinancialmanagementandincreasingnetcashinflowsandnetprofitsfromoperatingactivities;(2)TheCompanyhasagoodcreditstandingandareasonableassetmixandcanobtainfinancingfrombanksandotheravenuestoreasonablyarrangeforredemptionfunds.
V.DuringtheReportingPeriod,theLossintheScopeofConsolidatedStatementsOutstripped10%oftheNetAssetsattheEndofthePreviousYear
□Applicable?NotApplicable
VI.OverdueInterest-BearingDebtsOtherThanBondsattheEndoftheReportingPeriod
□Applicable?NotApplicableVII.ViolationofRulesandRegulationsDuringtheReportingPeriod
□Yes?NoVIII.MainAccountingDataandFinancialIndicatorsoftheCompanyinLastTwoYearsasattheEndoftheReportingPeriod
Unit:RMB10,000
| Item | Attheendofthereportingperiod | Attheendoflastyear | YoYchange |
| Currentratio | 1.75 | 1.67 | 4.79% |
| Liability-to-assetratio | 38.39% | 39.40% | -1.01% |
| Quickratio | 1.62 | 1.56 | 3.85% |
| Thereportingperiod | Theprioryear | YoYchange | |
| Netprofitafterdeductingnon-recurringgainsandlosses | 44,475.34 | 32,475.34 | 36.95% |
| EBITDA/totalliabilities | 14.29% | 12.30% | 1.99% |
| Interestcoverageratio | 4.63 | 3.79 | 22.16% |
| Cash/interestcoverageratio | 13.68 | 14.07 | -2.77% |
| EBITDA/interestcoverageratio | 9.39 | 7.39 | 27.06% |
| Loanrepaymentrate | 100.00% | 100.00% | 0.00% |
| Interestcoverageratio | 100.00% | 100.00% | 0.00% |
PartXFinancialReportAuditReport
| Typeofauditopinions | Standardunqualifiedopinion |
| Signingdateoftheauditor’sreport | April26,2024 |
| Nameoftheauditor | Pan-ChinaCertifiedPublicAccountantsLLP(SpecialGeneralPartnership) |
| No.oftheauditor’sreport | PCCPAAR[2024]No.4373 |
| Namesofcertifiedpublicaccountants | BianShanshan,andWeiXiaohui |
Mainbodyoftheauditor'sreport
TotheShareholdersofInforeEnvironmentTechnologyGroupCo.,Ltd.:
I.AuditOpinionWehaveauditedthefinancialstatementsofInforeEnvironmentTechnologyGroupCo.,Ltd.(the“Company”),whichcomprisetheconsolidatedandparentcompanybalancesheetsasatDecember31,2023,theconsolidatedandparentcompanyincomestatements,consolidatedandparentcompanycashflowstatements,andconsolidatedandparentcompanystatementsofchangesinequityfortheyearthenended,aswellasnotestofinancialstatements.Inouropinion,theaccompanyingfinancialstatementspresentfairly,inallmaterialrespects,thefinancialpositionoftheCompanyasatDecember31,2023,anditsfinancialperformanceanditscashflowsfortheyearthenendedinaccordancewithChinaAccountingStandardsforBusinessEnterprises.II.BasisforAuditOpinionWeconductedourauditinaccordancewithChinaStandardsonAuditing.OurresponsibilitiesunderthosestandardsarefurtherdescribedintheCertifiedPublicAccountant’sResponsibilitiesfortheAuditoftheFinancialStatementssectionofourreport.WeareindependentoftheCompanyinaccordancewiththeChinaCodeofEthicsforCertifiedPublicAccountants,andwehavefulfilledotherethicalresponsibilities.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.III.KeyAuditMattersKeyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditofthefinancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotexpressaseparateopiniononthesematters.
(I)Revenuerecognition
1.KeyauditmattersPleaserefertosectionIII(XXVII)andsectionV(II)1ofnotestothefinancialstatementsfordetails.TheCompanyismainlyengagedinsalesofenvironmentalandsanitationmachineryandventilationequipmentaswellassanitationoperationservice.In2023,theoperatingrevenueamountedto12,631.05millionyuan,withyear-over-yeargrowthof3.06%.AsoperatingrevenueisoneofthekeyperformanceindicatorsoftheCompany,theauthenticity,accuracyandcompletenessofrevenuerecognitionhaveasignificantimpactontheCompany’sfinancialstatements,wehaveidentifiedrevenuerecognitionasakeyauditmatter.
2.ResponsiveauditproceduresOurmainauditproceduresforrevenuerecognitionareasfollows:
(1)Weobtainedunderstandingsofkeyinternalcontrolsrelatedtorevenuerecognition,assessedthedesignofthesecontrols,determinedwhethertheyhadbeenexecuted,andtestedtheeffectivenessoftheoperation;
(2)Wecheckedsalescontractswithclients,obtainedunderstandingsofmaincontractualtermsorconditions,andassessedwhethertherevenuerecognitionmethodconformedtoChinaAccountingStandardsforBusinessEnterprises;
(3)Weperformedanalysisprocedureonoperatingrevenueandgrossmarginbymonth,product,customer,project,etc.,soastoidentifywhethertherearesignificantorabnormalfluctuationsandfindoutthereason;
(4)Forrevenuefromsalesofenvironmentalandsanitationmachinery,ventilationequipment,etc.,wecheckedsupportingdocumentsrelatedtorevenuerecognitionbysamplingmethod,includingsalescontracts,salesinvoices,outbounddeliveryorder,deliverynote,deliveryreceipt,etc.Forrevenuefromsanitationoperationservice,wecheckedsupportingdocumentsrelatedtorevenuerecognitionbysamplingmethod,includingsalescontracts,serviceassessmentstatements,supervisionschedule,etc.;
(5)Weperformedconfirmationproceduresonsignificantclientsofproductsalesandmajorclientsofsanitationoperationservicetoconfirmthesalesamountsinthecurrentperiod,andthebalancesofcurrentaccounts;
(6)Weperformedcut-offtestsontheoperatingrevenuerecognizedaroundthebalancesheetdate,andassessedwhethertheoperatingrevenuewasrecognizedintheappropriateperiod;and
(7)Wecheckedwhetherinformationrelatedtooperatingrevenuehadbeenpresentedappropriatelyinthefinancialstatements.(II)Impairmentofaccountsreceivableandlong-termreceivables
1.KeyauditmattersPleaserefertosectionIII(XII)andsectionV(I)3,9and11ofnotestothefinancialstatementsfordetails.AsofDecember31,2023,thebookbalanceofaccountsreceivableamountedto6,647.08millionyuan,withprovisionforbaddebtsof779.41millionyuan,andthecarryingamountamountedto5,867.67millionyuan;thebookbalanceoflong-termreceivables(includingthoseduewithinoneyear)amountedto1,067.49millionyuan,withprovisionforbaddebtsof92.31millionyuan,andthecarryingamountamountedto975.18millionyuan.Thecarryingamountofaccountsreceivableandlong-termreceivables(collectivelyreferredtoas“receivables”)totaled6,842.85millionyuan.Basedoncreditriskfeaturesofreceivables,theCompany’smanagement(the“Management”)measuresthelossallowanceattheamountoflifetimeexpectedcreditlosses,eitheronanindividualbasisoronacollectivebasis.Forreceivableswithexpectedcreditlossesmeasuredonanindividualbasis,theManagementestimatestheexpectedcashflows,soastoidentifytheprovisionforbaddebtstobeaccrued,basedonacomprehensiveconsiderationofinformationwithreasonablenessandevidence,whichisrelatedtothepastevents,thecurrentsituationandtheforecastoffutureeconomicconditions.Forreceivableswithexpectedcreditlossesmeasuredonacollectivebasis,theManagementclassifiesportfoliosonthebasisofages,adjuststhembasedonhistoricalcreditrisklossexperienceandforward-lookingestimations,preparesthecomparisontableofagesandexpectedcreditlossrateofreceivables,soastocalculatetheprovisionforbaddebtstobeaccrued.AstheamountofreceivablesissignificantandtheimpairmenttestinginvolvessignificantjudgmentoftheManagement,wehaveidentifiedimpairmentofreceivablesasakeyauditmatter.
2.ResponsiveauditproceduresOurmainauditproceduresforimpairmentofreceivablesareasfollows:
(1)Weobtainedunderstandingsofkeyinternalcontrolsrelatedtoreceivables,assessedthedesignofthesecontrols,determinedwhethertheyhadbeenexecuted,andtestedtheeffectivenessoftheoperation;
(2)Wereviewedreceivableswithprovisionforbaddebtsmadeinpreviousperiodsfortheirsubsequentwrite-offorreversal,andassessedtheaccuracyofhistoricalestimationsmadebythe
Management;
(3)WereviewedtheconsiderationoftheManagementoncreditriskassessmentofreceivablesandobjectiveevidence,andassessedwhetherthecreditriskfeaturesofreceivableshadbeenappropriatelyidentifiedbytheManagement;
(4)Forreceivableswithexpectedcreditlossesmeasuredonanindividualbasis,weobtainedandcheckedtheManagement’sestimationsontheexpectedfuturecashflows,assessedthereasonablenessofkeyassumptionsandtheaccuracyofdataadoptedintheestimationsandcheckedthemwithacquiredexternalevidence;
(5)Forreceivableswithexpectedcreditlossesmeasuredonacollectivebasis,weassessedthereasonablenessofportfolioclassificationonthebasisofcreditriskfeatures;weassessedthereasonablenessofthecomparisontableofagesandexpectedcreditlossrateofreceivablespreparedbytheManagementbasedonthehistoricalcreditlossexperienceofportfolioswithsimilarcreditriskfeaturesandforward-lookingestimations;wetestedtheaccuracyandcompletenessofdatausedbytheManagement(includingages,etc.)andwhetherthecalculationofprovisionforbaddebtswasaccurate;
(6)WecheckedthesubsequentcollectionofreceivablesandassessedthereasonablenessofprovisionforbaddebtsmadebytheManagement;and
(7)Wecheckedwhetherinformationrelatedtoimpairmentofreceivableshadbeenpresentedappropriatelyinthefinancialstatements.(III)Impairmentofgoodwill
1.KeyauditmattersPleaserefertosectionIII(XXI)andsectionV(I)20ofnotestothefinancialstatementsfordetails.AsofDecember31,2023,thecostofgoodwillamountedto6,268.85millionyuan,withprovisionforimpairmentof623.48millionyuan,andthecarryingamountamountedto5,645.37millionyuan,accountingfor19.43%oftotalassets.TheManagementwillperformimpairmenttestongoodwilltogetherwithrelatedassetgroupsorassetgroupportfolioswhenthereisevidenceindicatingimpairmentlossinassetgrouporassetgroupportfoliorelatedtogoodwill,orattheendofeachperiod,andtherecoverableamountofrelatedassetgroupsorassetgroupportfoliosisdeterminedbasedontheestimatedpresentvalueoffuturecashflows.Keyassumptionsadoptedintheimpairmenttestinclude:revenuegrowthrateindetailedforecastperiod,growthrateforstableincome,profitmargin,pre-taxdiscountrate,etc.
AstheamountofgoodwillissignificantandimpairmenttestinvolvessignificantjudgmentoftheManagement,wehaveidentifiedimpairmentofgoodwillasakeyauditmatter.
2.ResponsiveauditproceduresOurmainauditproceduresforimpairmentofgoodwillareasfollows:
(1)Weobtainedunderstandingsofkeyinternalcontrolsrelatedtoimpairmentofgoodwill,assessedthedesignofthesecontrols,determinedwhethertheyhadbeenexecuted,andtestedtheeffectivenessoftheoperation;
(2)WereviewedthepresentvalueoffuturecashflowsestimatedbytheManagementinpreviousyearsandtheactualoperatingresults,andassessedtheaccuracyoftheManagement’shistoricalestimations;
(3)Weobtainedunderstandingsofandassessedthecompetency,professionalqualityandobjectivityofexternalappraisersengagedbytheManagement;
(4)Weassessedthecompetency,professionalqualityandobjectivityofexternalappraisersengagedbyusandtheappropriatenessoftheirworks;
(5)WeassessedthereasonablenessandconsistencyofimpairmenttestmethodadoptedbytheManagement;
(6)Weassessedthereasonablenessofkeyassumptionsusedinimpairmenttestandreviewedwhetherrelevantassumptionswereconsistentwithoveralleconomyenvironment,industrycondition,managementsituation,historicalexperience,operationplan,approvedbudget,meetingsummaryandotherassumptionsrelatedtothefinancialstatementsusedbytheManagement;
(7)WereviewedthesensitivityanalysisonkeyassumptionsperformedbytheManagement,assessedtheeffectofchangesinkeyassumptionsonimpairmenttestresult,andidentifiedsignsofpossiblemanagementbiasinchoosingkeyassumptions;
(8)Wetestedtheaccuracy,completenessandrelativityofdatausedintheimpairmenttestbytheManagementandreviewedtheinternalconsistencyofrelatedinformationintheimpairmenttest;
(9)WetestedwhetherthecalculationofestimatedpresentvalueoffuturecashflowsbytheManagementwasaccurate;and
(10)Wecheckedwhetherinformationrelatedtoimpairmentofgoodwillhadbeenpresentedappropriatelyinthefinancialstatements.
IV.OtherInformationTheManagementisresponsiblefortheotherinformation.TheotherinformationcomprisestheinformationincludedintheCompany’sannualreport,butdoesnotincludethefinancialstatementsandourauditor’sreportthereon.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementoftheotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.V.ResponsibilitiesoftheManagementandThoseChargedwithGovernancefortheFinancialStatementsTheManagementisresponsibleforpreparingandpresentingfairlythefinancialstatementsinaccordancewithChinaAccountingStandardsforBusinessEnterprises,aswellasdesigning,implementingandmaintaininginternalcontrolrelevanttothepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.Inpreparingthefinancialstatements,theManagementisresponsibleforassessingtheCompany’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlesstheManagementeitherintendstoliquidatetheCompanyortoceaseoperations,orhasnorealisticalternativebuttodoso.ThosechargedwithgovernanceareresponsibleforoverseeingtheCompany’sfinancialreportingprocess.VI.CertifiedPublicAccountant’sResponsibilitiesfortheAuditoftheFinancialStatementsOurobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithChinaStandardsonAuditingwillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencethe
economicdecisionsofuserstakenonthebasisofthesefinancialstatements.WeexerciseprofessionaljudgmentandmaintainprofessionalskepticismthroughouttheauditperformedinaccordancewithChinaStandardsonAuditing.Wealso:
(I)Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.(II)Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances.(III)EvaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelateddisclosuresmadebytheManagement.(IV)ConcludeontheappropriatenessoftheManagement’suseofthegoingconcernbasisofaccountingand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheCompany’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreporttotherelateddisclosuresinthefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However,futureeventsorconditionsmaycausetheCompanytoceasetocontinueasagoingconcern.(V)Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.(VI)ObtainsufficientandappropriateauditevidenceregardingthefinancialinformationoftheentitiesorbusinessactivitieswithintheCompanytoexpressanopiniononthefinancialstatements.Weareresponsibleforthedirection,supervisionandperformanceofthegroupaudit.Weremainsoleresponsibilityforourauditopinion.Wecommunicatewiththosechargedwithgovernanceregardingtheplannedauditscope,timescheduleandsignificantauditfindings,includinganydeficienciesininternalcontrolofconcernthatweidentifyduringouraudit.
Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andtocommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.
Pan-ChinaCertifiedPublicAccountantsLLPChineseCertifiedPublicAccountant:
(EngagementPartner)Hangzhou·ChinaChineseCertifiedPublicAccountant:
DateofReport:April26,2024
Theauditor’sreportandtheaccompanyingfinancialstatementsareEnglishtranslationsoftheChineseauditor’sreportandstatutoryfinancialstatementspreparedunderaccountingprinciplesandpracticesgenerallyacceptedinthePeople’sRepublicofChina.Thesefinancialstatementsarenotintendedtopresentthefinancialpositionandfinancialperformanceandcashflowsinaccordancewithaccountingprinciplesandpracticesgenerallyacceptedinothercountriesandjurisdictions.IncasetheEnglishversiondoesnotconformtotheChineseversion,theChineseversionprevails.
InforeEnvironmentTechnologyGroupCo.,Ltd.ConsolidatedbalancesheetasatDecember31,2023
(ExpressedinRenminbiYuan)
| Assets | NoteNo. | Closingbalance | December31,2022 |
| Currentassets: | |||
| Cashandbankbalances | 1 | 4,411,376,583.78 | 4,728,203,530.46 |
| Settlementfunds | |||
| Loanstootherbanks | |||
| Held-for-tradingfinancialassets | |||
| Derivativefinancialassets | |||
| Notesreceivable | 2 | 4,947,131.83 | 13,565,706.22 |
| Accountsreceivable | 3 | 5,867,669,476.86 | 5,625,792,472.37 |
| Receivablesfinancing | 4 | 146,814,501.64 | 107,316,593.41 |
| Advancespaid | 5 | 140,241,046.66 | 192,360,542.24 |
| Premiumsreceivable | |||
| Reinsuranceaccountsreceivable | |||
| Reinsurancereservereceivable | |||
| Otherreceivables | 6 | 316,661,073.26 | 385,622,271.00 |
| Financialassetsunderreverserepo | |||
| Inventories | 7 | 971,229,637.15 | 881,038,036.95 |
| Contractassets | 8 | 74,803,489.48 | 101,023,854.33 |
| Assetsheldforsale | |||
| Non-currentassetsduewithinoneyear | 9 | 552,082,464.00 | 476,505,825.28 |
| Othercurrentassets | 10 | 523,880,405.80 | 497,450,797.42 |
| Totalcurrentassets | 13,009,705,810.46 | 13,008,879,629.68 | |
| Non-currentassets: | |||
| Loansandadvances | |||
| Debtinvestments | |||
| Otherdebtinvestments | |||
| Long-termreceivables | 11 | 423,098,527.59 | 932,130,871.82 |
| Long-termequityinvestments | 12 | 681,629,084.69 | 676,829,959.84 |
| Otherequityinstrumentinvestments | 13 | 15,352,971.01 | 15,352,971.01 |
| Othernon-currentfinancialassets | |||
| Investmentproperty | 14 | 1,138,868.60 | 27,105,435.03 |
| Fixedassets | 15 | 2,338,316,124.14 | 2,268,287,202.01 |
| Constructioninprogress | 16 | 288,057,018.89 | 41,073,267.68 |
| Productivebiologicalassets | |||
| Oil&gasassets | |||
| Right-of-useassets | 17 | 25,125,671.95 | 31,859,454.24 |
| Intangibleassets | 18 | 5,984,348,824.39 | 6,048,114,364.49 |
| Developmentexpenditures | 19 | 30,338,218.08 | |
| Goodwill | 20 | 5,645,365,375.67 | 5,739,602,679.79 |
| Long-termprepayments | 21 | 31,130,797.49 | 30,210,935.91 |
| Deferredtaxassets | 22 | 116,448,305.64 | 114,577,132.19 |
| Othernon-currentassets | 23 | 488,484,179.84 | 306,929,738.21 |
| Totalnon-currentassets | 16,038,495,749.90 | 16,262,412,230.30 | |
| Totalassets | 29,048,201,560.36 | 29,271,291,859.98 |
Legalrepresentative:Officerinchargeofaccounting:Headofaccountingdepartment:
InforeEnvironmentTechnologyGroupCo.,Ltd.ConsolidatedbalancesheetasatDecember31,2023(continued)
(ExpressedinRenminbiYuan)
| Liabilities&Equity | NoteNo. | Closingbalance | December31,2022 |
| Currentliabilities: | |||
| Short-termborrowings | 25 | 126,939,855.26 | 440,103,105.44 |
| Centralbankloans | |||
| Loansfromotherbanks | |||
| Held-for-tradingfinancialliabilities | |||
| Derivativefinancialliabilities | |||
| Notespayable | 26 | 2,294,276,551.46 | 2,515,229,293.17 |
| Accountspayable | 27 | 2,918,543,704.46 | 2,771,961,271.66 |
| Advancesreceived | |||
| Contractliabilities | 28 | 306,777,173.57 | 274,289,978.25 |
| Financialliabilitiesunderrepo | |||
| Absorbingdepositandinterbankdeposit | |||
| Depositsforagencysecuritytransaction | |||
| Depositsforagencysecurityunderwriting | |||
| Employeebenefitspayable | 29 | 490,900,839.98 | 409,574,018.72 |
| Taxesandratespayable | 30 | 124,031,931.13 | 114,968,226.88 |
| Otherpayables | 31 | 709,941,824.77 | 657,122,287.53 |
| Handlingfeesandcommissionspayable | |||
| Reinsuranceaccountspayable | |||
| Liabilitiesheldforsale | |||
| Non-currentliabilitiesduewithinoneyear | 32 | 405,027,444.29 | 561,019,099.59 |
| Othercurrentliabilities | 33 | 36,931,126.97 | 31,616,947.24 |
| Totalcurrentliabilities | 7,413,370,451.89 | 7,775,884,228.48 | |
| Non-currentliabilities: | |||
| Insurancepolicyreserve | |||
| Long-termborrowings | 34 | 1,884,356,851.73 | 1,922,306,226.32 |
| Bondspayable | 35 | 1,360,603,802.12 | 1,308,690,556.32 |
| Including:Preferredshares | |||
| Perpetualbonds | |||
| Leaseliabilities | 36 | 16,170,790.76 | 23,255,624.30 |
| Long-termpayables | 37 | 302,949,472.95 | 315,735,814.91 |
| Long-termemployeebenefitspayable | |||
| Provisions | 38 | 1,994,511.41 | 4,575,049.22 |
| Deferredincome | 39 | 115,340,494.42 | 120,890,710.04 |
| Deferredtaxliabilities | 22 | 47,219,579.85 | 54,207,628.08 |
| Othernon-currentliabilities | 40 | 8,148,148.14 | 8,333,333.33 |
| Totalnon-currentliabilities | 3,736,783,651.38 | 3,757,994,942.52 | |
| Totalliabilities | 11,150,154,103.27 | 11,533,879,171.00 | |
| Equity: | |||
| Sharecapital | 41 | 3,179,506,670.00 | 3,179,505,559.00 |
| Otherequityinstruments | 42 | 266,914,714.33 | 266,916,341.80 |
| Including:Preferredshares | |||
| Perpetualbonds | |||
| Capitalreserve | 43 | 9,661,398,721.27 | 9,662,511,254.48 |
| Less:Treasuryshares | 44 | 94,132,795.17 | 94,132,795.17 |
| Othercomprehensiveincome | 45 | -4,630,000.00 | -4,630,000.00 |
| Specialreserve | 46 | ||
| Surplusreserve | 47 | 379,017,020.19 | 315,124,767.92 |
| Generalriskreserve | |||
| Undistributedprofit | 48 | 4,049,434,826.11 | 3,963,306,890.06 |
| Totalequityattributabletotheparentcompany | 17,437,509,156.73 | 17,288,602,018.09 | |
| Non-controllinginterest | 460,538,300.36 | 448,810,670.89 | |
| Totalequity | 17,898,047,457.09 | 17,737,412,688.98 | |
| Totalliabilities&equity | 29,048,201,560.36 | 29,271,291,859.98 |
Legalrepresentative:Officerinchargeofaccounting:Headofaccountingdepartment:
InforeEnvironmentTechnologyGroupCo.,Ltd.ParentcompanybalancesheetasatDecember31,2023
(ExpressedinRenminbiYuan)
| Assets | NoteNo. | Closingbalance | December31,2022 |
| Currentassets: | |||
| Cashandbankbalances | 564,746,779.67 | 632,554,163.45 | |
| Held-for-tradingfinancialassets | |||
| Derivativefinancialassets | |||
| Notesreceivable | |||
| Accountsreceivable | |||
| Receivablesfinancing | 43,226,079.68 | 118,400,000.00 | |
| Advancespaid | 450,233.21 | 638,924.48 | |
| Otherreceivables | 1 | 4,470,847,162.66 | 4,492,807,441.80 |
| Inventories | |||
| Contractassets | |||
| Assetsheldforsale | |||
| Non-currentassetsduewithinoneyear | |||
| Othercurrentassets | |||
| Totalcurrentassets | 5,079,270,255.22 | 5,244,400,529.73 | |
| Non-currentassets: | |||
| Debtinvestments | |||
| Otherdebtinvestments | |||
| Long-termreceivables | |||
| Long-termequityinvestments | 2 | 16,970,439,351.38 | 17,076,616,871.15 |
| Otherequityinstrumentinvestments | 15,352,971.01 | 15,352,971.01 | |
| Othernon-currentfinancialassets | |||
| Investmentproperty | |||
| Fixedassets | |||
| Constructioninprogress | |||
| Productivebiologicalassets | |||
| Oil&gasassets | |||
| Right-of-useassets | 1,830,027.06 | 593,318.35 | |
| Intangibleassets | 744,535.28 | 1,749,936.60 | |
| Developmentexpenditures | |||
| Goodwill | |||
| Long-termprepayments | |||
| Deferredtaxassets | |||
| Othernon-currentassets | |||
| Totalnon-currentassets | 16,988,366,884.73 | 17,094,313,097.11 | |
| Totalassets | 22,067,637,139.95 | 22,338,713,626.84 |
Legalrepresentative:Officerinchargeofaccounting:Headofaccountingdepartment:
InforeEnvironmentTechnologyGroupCo.,Ltd.ParentcompanybalancesheetasatDecember31,2023(continued)
(ExpressedinRenminbiYuan)
| Liabilities&Equity | NoteNo. | Closingbalance | December31,2022 |
| Currentliabilities: | |||
| Short-termborrowings | 8,006,821.92 | 20,022,000.00 | |
| Held-for-tradingfinancialliabilities | |||
| Derivativefinancialliabilities | |||
| Notespayable | 34,562,159.28 | 42,395,262.51 | |
| Accountspayable | 1,137,507.93 | 1,137,507.93 | |
| Advancesreceived | |||
| Contractliabilities | |||
| Employeebenefitspayable | 3,603,061.04 | 4,221,817.88 | |
| Taxesandratespayable | 6,535,689.77 | 6,259,662.49 | |
| Otherpayables | 783,282,804.29 | 1,064,116,084.37 | |
| Liabilitiesheldforsale | |||
| Non-currentliabilitiesduewithinoneyear | 12,180,055.74 | 311,902,807.73 | |
| Othercurrentliabilities | |||
| Totalcurrentliabilities | 849,308,099.97 | 1,450,055,142.91 | |
| Non-currentliabilities: | |||
| Long-termborrowings | 48,985,720.00 | 59,871,432.00 | |
| Bondspayable | 1,360,603,802.12 | 1,308,690,556.32 | |
| Including:Preferredshares | |||
| Perpetualbonds | |||
| Leaseliabilities | 626,060.41 | ||
| Long-termpayables | 3,000,000.00 | 3,000,000.00 | |
| Long-termemployeebenefitspayable | |||
| Provisions | 1,563,887.81 | 4,114,064.16 | |
| Deferredincome | |||
| Deferredtaxliabilities | |||
| Othernon-currentliabilities | |||
| Totalnon-currentliabilities | 1,414,779,470.34 | 1,375,676,052.48 | |
| Totalliabilities | 2,264,087,570.31 | 2,825,731,195.39 | |
| Equity: | |||
| Sharecapital | 3,179,506,670.00 | 3,179,505,559.00 | |
| Otherequityinstruments | 266,914,714.33 | 266,916,341.80 | |
| Including:Preferredshares | |||
| Perpetualbonds | |||
| Capitalreserve | 15,324,662,735.39 | 15,324,654,061.79 | |
| Less:Treasuryshares | 94,132,795.17 | 94,132,795.17 | |
| Othercomprehensiveincome | -4,630,000.00 | -4,630,000.00 | |
| Specialreserve | |||
| Surplusreserve | 344,796,630.77 | 280,904,378.50 | |
| Undistributedprofit | 786,431,614.32 | 559,764,885.53 | |
| Totalequity | 19,803,549,569.64 | 19,512,982,431.45 | |
| Totalliabilities&equity | 22,067,637,139.95 | 22,338,713,626.84 |
Legalrepresentative:Officerinchargeofaccounting:Headofaccountingdepartment:
InforeEnvironmentTechnologyGroupCo.,Ltd.ConsolidatedincomestatementfortheyearendedDecember31,2023
(ExpressedinRenminbiYuan)
| Items | NoteNo. | Currentperiodcumulative | Precedingperiodcomparative |
| I.Totaloperatingrevenue | 1 | 12,631,050,967.34 | 12,255,992,938.42 |
| Including:Operatingrevenue | 1 | 12,631,050,967.34 | 12,255,992,938.42 |
| Interestincome | |||
| Premiumsearned | |||
| Revenuefromhandlingfeesandcommissions | |||
| II.Totaloperatingcost | 11,755,419,190.66 | 11,359,383,512.75 | |
| Including:Operatingcost | 1 | 9,745,482,087.92 | 9,469,510,831.27 |
| Interestexpenses | |||
| Handlingfeesandcommissions | |||
| Surrendervalue | |||
| Netpaymentofinsuranceclaims | |||
| Netprovisionofinsurancepolicyreserve | |||
| Premiumbonusexpenditures | |||
| Reinsuranceexpenses | |||
| Taxesandsurcharges | 2 | 70,091,589.07 | 74,685,022.05 |
| Sellingexpenses | 3 | 794,334,952.02 | 762,970,847.95 |
| Administrativeexpenses | 4 | 726,159,237.45 | 609,601,680.23 |
| R&Dexpenses | 5 | 344,030,239.33 | 340,775,707.34 |
| Financialexpenses | 6 | 75,321,084.87 | 101,839,423.91 |
| Including:Interestexpenses | 156,635,777.38 | 170,568,834.86 | |
| Interestincome | 99,626,077.56 | 86,389,951.68 | |
| Add:Otherincome | 7 | 119,986,816.29 | 119,564,678.48 |
| Investmentincome(orless:losses) | 8 | -51,597,205.92 | -41,466,125.62 |
| Including:Investmentincomefromassociatesandjointventures | 4,960,692.79 | 8,548,481.77 | |
| Gainsfromderecognitionoffinancialassetsatamortizedcost | |||
| Gainsonforeignexchange(orless:losses) | |||
| Gainsonnetexposuretohedgingrisk(orless:losses) | |||
| Gainsonchangesinfairvalue(orless:losses) | |||
| Creditimpairmentloss | 9 | -216,352,591.11 | -104,837,162.42 |
| Assetsimpairmentloss | 10 | -123,390,769.02 | -312,998,494.66 |
| Gainsonassetdisposal(orless:losses) | 11 | -1,191,825.82 | 532,796.72 |
| III.Operatingprofit(orless:losses) | 603,086,201.10 | 557,405,118.17 | |
| Add:Non-operatingrevenue | 12 | 19,846,705.60 | 12,798,235.90 |
| Less:Non-operatingexpenditures | 13 | 13,031,066.19 | 13,947,988.82 |
| IV.Profitbeforetax(orless:totalloss) | 609,901,840.51 | 556,255,365.25 | |
| Less:Incometaxexpenses | 14 | 97,357,651.45 | 96,963,243.68 |
| V.Netprofit(orless:netloss) | 512,544,189.06 | 459,292,121.57 | |
| (I)Categorizedbythecontinuityofoperations | |||
| 1.Netprofitfromcontinuingoperations(orless:netloss) | 512,544,189.06 | 459,292,121.57 | |
| 2.Netprofitfromdiscontinuedoperations(orless:netloss) | |||
| (II)Categorizedbytheportionofequityownership | |||
| 1.Netprofitattributabletoownersofparentcompany(orless:netloss) | 498,383,730.00 | 418,794,179.13 | |
| 2.Netprofitattributabletonon-controllingshareholders(orless:netloss) | 14,160,459.06 | 40,497,942.44 | |
| VI.Othercomprehensiveincomeaftertax | -350,000.00 | ||
| Itemsattributabletotheownersoftheparentcompany | -350,000.00 | ||
| (I)Nottobereclassifiedsubsequentlytoprofitorloss | -350,000.00 | ||
| 1.Remeasurementsofthenetdefinedbenefitplan | |||
| 2.Itemsunderequitymethodthatwillnotbereclassifiedtoprofitorloss | |||
| 3.Changesinfairvalueofotherequityinstrumentinvestments | -350,000.00 | ||
| 4.Changesinfairvalueofowncreditrisk | |||
| 5.Others | |||
| (II)Tobereclassifiedsubsequentlytoprofitorloss | |||
| 1.Itemsunderequitymethodthatmaybereclassifiedtoprofitorloss | |||
| 2.Changesinfairvalueofotherdebtinvestments | |||
| 3.Profitorlossfromreclassificationoffinancialassetsintoothercomprehensiveincome | |||
| 4.Provisionforcreditimpairmentofotherdebtinvestments | |||
| 5.Cashflowhedgingreserve | |||
| 6.Translationreserve | |||
| 7.Others | |||
| Itemsattributabletonon-controllingshareholders | |||
| VII.Totalcomprehensiveincome | 512,544,189.06 | 458,942,121.57 | |
| Itemsattributabletotheownersoftheparentcompany | 498,383,730.00 | 418,444,179.13 | |
| Itemsattributabletonon-controllingshareholders | 14,160,459.06 | 40,497,942.44 | |
| VIII.Earningspershare(EPS): | |||
| (I)BasicEPS(yuanpershare) | 0.16 | 0.13 | |
| (II)DilutedEPS(yuanpershare) | 0.16 | 0.13 |
Legalrepresentative:Officerinchargeofaccounting:Headofaccountingdepartment:
InforeEnvironmentTechnologyGroupCo.,Ltd.
ParentcompanyincomestatementfortheyearendedDecember31,2023(ExpressedinRenminbiYuan)
| Items | NoteNo. | Currentperiodcumulative | Precedingperiodcomparative |
| I.Operatingrevenue | 1 | 156,799.03 | 818,861.05 |
| Less:Operatingcost | 1 | 45,108.06 | 818,861.05 |
| Taxesandsurcharges | 8,724.82 | 24,479.22 | |
| Sellingexpenses | 188,548.41 | ||
| Administrativeexpenses | 32,795,434.31 | 37,210,341.13 | |
| R&Dexpenses | |||
| Financialexpenses | -46,439,991.45 | -26,702,758.90 | |
| Including:Interestexpenses | 6,683,662.60 | 17,704,428.72 | |
| Interestincome | 114,151,812.97 | 105,355,828.68 | |
| Add:Otherincome | 90,205.68 | 134,351.98 | |
| Investmentincome(orless:losses) | 2 | 627,767,256.36 | 192,483,839.36 |
| Including:Investmentincomefromassociatesandjointventures | 32,220,248.17 | 25,737,537.83 | |
| Gainsfromderecognitionoffinancialassetsatamortizedcost | |||
| Gainsonnetexposuretohedgingrisk(orless:losses) | |||
| Gainsonchangesinfairvalue(orless:losses) | |||
| Creditimpairmentloss | -4,535,721.98 | 304,725.02 | |
| Assetsimpairmentloss | |||
| Gainsonassetdisposal(orless:losses) | |||
| II.Operatingprofit(orless:losses) | 637,069,263.35 | 182,202,306.50 | |
| Add:Non-operatingrevenue | 1,853,259.39 | 1,496,537.14 | |
| Less:Non-operatingexpenditures | |||
| III.Profitbeforetax(orless:totalloss) | 638,922,522.74 | 183,698,843.64 | |
| Less:Incometaxexpenses | |||
| IV.Netprofit(orless:netloss) | 638,922,522.74 | 183,698,843.64 | |
| (I)Netprofitfromcontinuingoperations(orless:netloss) | 638,922,522.74 | 183,698,843.64 | |
| (II)Netprofitfromdiscontinuedoperations(orless:netloss) | |||
| V.Othercomprehensiveincomeaftertax | -350,000.00 | ||
| (I)Nottobereclassifiedsubsequentlytoprofitorloss | -350,000.00 | ||
| 1.Remeasurementsofthenetdefinedbenefitplan | |||
| 2.Itemsunderequitymethodthatwillnotbereclassifiedtoprofitorloss | |||
| 3.Changesinfairvalueofotherequityinstrumentinvestments | -350,000.00 | ||
| 4.Changesinfairvalueofowncreditrisk | |||
| 5.Others | |||
| (II)Tobereclassifiedsubsequentlytoprofitorloss | |||
| 1.Itemsunderequitymethodthatmaybereclassifiedtoprofitorloss | |||
| 2.Changesinfairvalueofotherdebtinvestments | |||
| 3.Profitorlossfromreclassificationoffinancialassetsintoothercomprehensiveincome | |||
| 4.Provisionforcreditimpairmentofotherdebtinvestments | |||
| 5.Cashflowhedgingreserve | |||
| 6.Translationreserve | |||
| 7.Others | |||
| VI.Totalcomprehensiveincome | 638,922,522.74 | 183,348,843.64 | |
| VII.Earningspershare(EPS): | |||
| (I)BasicEPS(yuanpershare) | |||
| (II)DilutedEPS(yuanpershare) |
Legalrepresentative:Officerinchargeofaccounting:Headofaccountingdepartment:
InforeEnvironmentTechnologyGroupCo.,Ltd.ConsolidatedcashflowstatementfortheyearendedDecember31,2023
(ExpressedinRenminbiYuan)
| Items | NoteNo. | Currentperiodcumulative | Precedingperiodcomparative |
| I.Cashflowsfromoperatingactivities: | |||
| Cashreceiptsfromsaleofgoodsorrenderingofservices | 12,453,986,179.20 | 11,979,875,703.49 | |
| Netincreaseofclientdepositandinterbankdeposit | |||
| Netincreaseofcentralbankloans | |||
| Netincreaseofloansfromotherfinancialinstitutions | |||
| Cashreceiptsfromoriginalinsurancecontractpremium | |||
| Netcashreceiptsfromreinsurance | |||
| Netincreaseofpolicy-holderdepositandinvestment | |||
| Cashreceiptsfrominterest,handlingfeesandcommissions | |||
| Netincreaseofloansfromothers | |||
| Netincreaseofrepurchase | |||
| Netcashreceiptsfromagencysecuritytransaction | |||
| Receiptsoftaxrefund | 30,441,488.60 | 178,294,936.92 | |
| Othercashreceiptsrelatedtooperatingactivities | 1.(1) | 1,780,673,734.46 | 2,097,066,618.34 |
| Subtotalofcashinflowsfromoperatingactivities | 14,265,101,402.26 | 14,255,237,258.75 | |
| Cashpaymentsforgoodspurchasedandservicesreceived | 7,623,799,094.31 | 7,399,369,111.76 | |
| Netincreaseofloansandadvancestoclients | |||
| Netincreaseofcentralbankdepositandinterbankdeposit | |||
| Cashpaymentsforinsuranceindemnitiesoforiginalinsurancecontracts | |||
| Netincreaseofloanstoothers | |||
| Cashpaymentsforinterest,handlingfeesandcommissions | |||
| Cashpaymentsforpolicybonus | |||
| Cashpaidtoandonbehalfofemployees | 2,522,411,850.58 | 2,062,334,468.26 | |
| Cashpaymentsfortaxesandrates | 534,381,305.14 | 734,988,426.49 | |
| Othercashpaymentsrelatedtooperatingactivities | 1.(2) | 2,198,952,642.74 | 2,396,062,964.53 |
| Subtotalofcashoutflowsfromoperatingactivities | 12,879,544,892.77 | 12,592,754,971.04 | |
| Netcashflowsfromoperatingactivities | 1,385,556,509.49 | 1,662,482,287.71 | |
| II.Cashflowsfrominvestingactivities: | |||
| Cashreceiptsfromwithdrawalofinvestments | |||
| Cashreceiptsfrominvestmentincome | 17,581,018.93 | 24,671,510.32 | |
| Netcashreceiptsfromthedisposaloffixedassets,intangibleassetsandotherlong-termassets | 22,804,215.79 | 16,999,998.22 | |
| Netcashreceiptsfromthedisposalofsubsidiaries&otherbusinessunits | 115,100,000.00 | ||
| Othercashreceiptsrelatedtoinvestingactivities | 1.(3) | 1,650,769,977.00 | 5,401,861,000.00 |
| Subtotalofcashinflowsfrominvestingactivities | 1,691,155,211.72 | 5,558,632,508.54 | |
| Cashpaymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-termassets | 1,119,006,242.88 | 1,083,515,734.97 | |
| Cashpaymentsforinvestments | 4,900,000.00 | 130,189,561.55 | |
| Netincreaseofpledgedborrowings | |||
| Netcashpaymentsfortheacquisitionofsubsidiaries&otherbusinessunits | 43,472.96 | 83,807,513.74 | |
| Othercashpaymentsrelatedtoinvestingactivities | 1.(4) | 1,642,935,617.97 | 5,398,900,000.00 |
| Subtotalofcashoutflowsfrominvestingactivities | 2,766,885,333.81 | 6,696,412,810.26 | |
| Netcashflowsfrominvestingactivities | -1,075,730,122.09 | -1,137,780,301.72 | |
| III.Cashflowsfromfinancingactivities: | |||
| Cashreceiptsfromabsorbinginvestments | 7,119,980.00 | 57,744,844.02 | |
| Including:Cashreceivedbysubsidiariesfromnon-controllingshareholdersasinvestments | 7,119,980.00 | 34,345,285.00 | |
| Cashreceiptsfromborrowings | 1,430,455,757.80 | 2,033,074,142.02 | |
| Othercashreceiptsrelatedtofinancingactivities | 1.(5) | 48,692,000.00 | 290,555,211.59 |
| Subtotalofcashinflowsfromfinancingactivities | 1,486,267,737.80 | 2,381,374,197.63 | |
| Cashpaymentsfortherepaymentofborrowings | 1,946,364,301.72 | 1,732,314,139.87 | |
| Cashpaymentsfordistributionofdividendsorprofitsandforinterestexpenses | 471,087,036.44 | 451,503,767.45 | |
| Including:Cashpaidbysubsidiariestonon-controllingshareholdersasdividendorprofit | 7,622,681.40 | 11,792,867.41 | |
| Othercashpaymentsrelatedtofinancingactivities | 1.(6) | 44,749,906.87 | 263,396,824.36 |
| Subtotalofcashoutflowsfromfinancingactivities | 2,462,201,245.03 | 2,447,214,731.68 | |
| Netcashflowsfromfinancingactivities | -975,933,507.23 | -65,840,534.05 | |
| IV.Effectofforeignexchangeratechangesoncashandcashequivalents | 1,587,128.38 | 3,056,908.33 | |
| V.Netincreaseincashandcashequivalents | -664,519,991.45 | 461,918,360.27 | |
| Add:Openingbalanceofcashandcashequivalents | 4,580,665,245.99 | 4,118,746,885.72 | |
| VI.Closingbalanceofcashandcashequivalents | 3,916,145,254.54 | 4,580,665,245.99 |
Legalrepresentative:Officerinchargeofaccounting:Headofaccountingdepartment:
InforeEnvironmentTechnologyGroupCo.,Ltd.
ParentcompanycashflowstatementfortheyearendedDecember31,2023
(ExpressedinRenminbiYuan)
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| I.Cashflowsfromoperatingactivities: | ||
| Cashreceiptsfromsaleofgoodsandrenderingofservices | 118,392.43 | |
| Receiptsoftaxrefund | 1,008,139.39 | |
| Othercashreceiptsrelatedtooperatingactivities | 448,771,549.67 | 622,328,508.84 |
| Subtotalofcashinflowsfromoperatingactivities | 449,898,081.49 | 622,328,508.84 |
| Cashpaymentsforgoodspurchasedandservicesreceived | ||
| Cashpaidtoandonbehalfofemployees | 12,214,656.58 | 20,656,924.48 |
| Cashpaymentsfortaxesandrates | 19,920.85 | 24,479.22 |
| Othercashpaymentsrelatedtooperatingactivities | 448,609,614.55 | 727,589,122.93 |
| Subtotalofcashoutflowsfromoperatingactivities | 460,844,191.98 | 748,270,526.63 |
| Netcashflowsfromoperatingactivities | -10,946,110.49 | -125,942,017.79 |
| II.Cashflowsfrominvestingactivities: | ||
| Cashreceiptsfromwithdrawalofinvestments | 115,100,000.00 | |
| Cashreceiptsfrominvestmentincome | 355,469,611.94 | 221,911,743.60 |
| Netcashreceiptsfromthedisposaloffixedassets,intangibleassetsandotherlong-termassets | ||
| Netcashreceiptsfromthedisposalofsubsidiaries&otherbusinessunits | ||
| Othercashreceiptsrelatedtoinvestingactivities | 1,133,866,191.35 | 1,416,859,323.47 |
| Subtotalofcashinflowsfrominvestingactivities | 1,489,335,803.29 | 1,753,871,067.07 |
| Cashpaymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-termassets | ||
| Cashpaymentsforinvestments | 96,546,250.00 | |
| Netcashpaymentsfortheacquisitionofsubsidiaries&otherbusinessunits | ||
| Othercashpaymentsrelatedtoinvestingactivities | 1,020,256,248.67 | 1,441,321,272.72 |
| Subtotalofcashoutflowsfrominvestingactivities | 1,020,256,248.67 | 1,537,867,522.72 |
| Netcashflowsfrominvestingactivities | 469,079,554.62 | 216,003,544.35 |
| III.Cashflowsfromfinancingactivities: | ||
| Cashreceiptsfromabsorbinginvestments | 23,399,559.02 | |
| Cashreceiptsfromborrowings | 108,000,000.00 | 96,200,000.00 |
| Othercashreceiptsrelatedtofinancingactivities | 228,995,320.75 | |
| Subtotalofcashinflowsfromfinancingactivities | 108,000,000.00 | 348,594,879.77 |
| Cashpaymentsfortherepaymentofborrowings | 430,885,712.00 | 155,585,856.00 |
| Cashpaymentsfordistributionofdividendsorprofitsandforinterestexpenses | 367,220,162.26 | 340,633,373.24 |
| Othercashpaymentsrelatedtofinancingactivities | 1,258,782.48 | 181,368,993.06 |
| Subtotalofcashoutflowsfromfinancingactivities | 799,364,656.74 | 677,588,222.30 |
| Netcashflowsfromfinancingactivities | -691,364,656.74 | -328,993,342.53 |
| IV.Effectofforeignexchangeratechangesoncashandcashequivalents | ||
| V.Netincreaseincashandcashequivalents | -233,231,212.61 | -238,931,815.97 |
| Add:Openingbalanceofcashandcashequivalents | 631,351,957.34 | 870,283,773.31 |
| VI.Closingbalanceofcashandcashequivalents | 398,120,744.73 | 631,351,957.34 |
Legalrepresentative:Officerinchargeofaccounting:Headofaccountingdepartment:
InforeEnvironmentTechnologyGroupCo.,Ltd.
ConsolidatedstatementofchangesinequityfortheyearendedDecember31,2023
(ExpressedinRenminbiYuan)
| Items | Currentperiodcumulative | ||||||||||||
| Equityattributabletoparentcompany | Non-controllinginterest | Totalequity | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserve | Less:Treasuryshares | Othercomprehensiveincome | Specialreserve | Surplusreserve | Generalriskreserve | Undistributedprofit | |||||
| Preferredshares | Perpetualbonds | Others | |||||||||||
| I.Balanceattheendofprioryear | 3,179,505,559.00 | 266,916,341.80 | 9,662,511,254.48 | 94,132,795.17 | -4,630,000.00 | 315,124,767.92 | 3,963,306,890.06 | 448,810,670.89 | 17,737,412,688.98 | ||||
| Add:Cumulativechangesofaccountingpolicies | |||||||||||||
| Errorcorrectionofpriorperiod | |||||||||||||
| Businesscombinationundercommoncontrol | |||||||||||||
| Others | |||||||||||||
| II.Balanceatthebeginningofcurrentyear | 3,179,505,559.00 | 266,916,341.80 | 9,662,511,254.48 | 94,132,795.17 | -4,630,000.00 | 315,124,767.92 | 3,963,306,890.06 | 448,810,670.89 | 17,737,412,688.98 | ||||
| III.Currentperiodincrease(orless:decrease) | 1,111.00 | -1,627.47 | -1,112,533.21 | 63,892,252.27 | 86,127,936.05 | 11,727,629.47 | 160,634,768.11 | ||||||
| (I)Totalcomprehensiveincome | 498,383,730.00 | 14,160,459.06 | 512,544,189.06 | ||||||||||
| (II)Capitalcontributedorwithdrawnbyowners | 1,111.00 | -1,627.47 | -1,112,533.21 | 5,189,851.81 | 4,076,802.13 | ||||||||
| 1.Ordinarysharescontributedbyowners | 8,619,980.00 | 8,619,980.00 | |||||||||||
| 2.Capitalcontributedbyholdersofotherequityinstruments | 1,111.00 | -1,627.47 | 8,673.60 | 8,157.13 | |||||||||
| 3.Amountofshare-basedpaymentincludedinequity | |||||||||||||
| 4.Others | -1,121,206.81 | -3,430,128.19 | -4,551,335.00 | ||||||||||
| (III)Profitdistribution | 63,892,252.27 | -412,255,793.95 | -7,622,681.40 | -355,986,223.08 | |||||||||
| 1.Appropriationofsurplusreserve | 63,892,252.27 | -63,892,252.27 | |||||||||||
| 2.Appropriationofgeneralriskreserve | |||||||||||||
| 3.Appropriationofprofittoowners | -348,363,541.68 | -7,622,681.40 | -355,986,223.08 | ||||||||||
| 4.Others | |||||||||||||
| (IV)Internalcarry-overwithinequity | |||||||||||||
| 1.Transferofcapitalreservetocapital | |||||||||||||
| 2.Transferofsurplusreservetocapital | |||||||||||||
| 3.Surplusreservetocoverlosses | |||||||||||||
| 4.Changesindefinedbenefitplancarriedovertoretainedearnings | |||||||||||||
| 5.Othercomprehensiveincomecarriedovertoretainedearnings | |||||||||||||
| 6.Others | |||||||||||||
| (V)Specialreserve | |||||||||||||
| 1.Currentperiodappropriation | 8,608,843.62 | 8,608,843.62 | |||||||||||
| 2.Currentperioduse | -8,608,843.62 | -8,608,843.62 | |||||||||||
| (VI)Others | |||||||||||||
| IV.Balanceattheendofcurrentperiod | 3,179,506,670.00 | 266,914,714.33 | 9,661,398,721.27 | 94,132,795.17 | -4,630,000.00 | 379,017,020.19 | 4,049,434,826.11 | 460,538,300.36 | 17,898,047,457.09 | ||||
Legalrepresentative:Officerinchargeofaccounting:Headofaccountingdepartment:
InforeEnvironmentTechnologyGroupCo.,Ltd.ConsolidatedstatementofchangesinequityfortheyearendedDecember31,2023(continued)
(ExpressedinRenminbiYuan)
| Items | Precedingperiodcomparative | ||||||||||||
| Equityattributabletoparentcompany | Non-controllinginterest | Totalequity | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserve | Less:Treasuryshares | Othercomprehensiveincome | Specialreserve | Surplusreserve | Generalriskreserve | Undistributedprofit | |||||
| Preferredshares | Perpetualbonds | Others | |||||||||||
| I.Balanceattheendofprioryear | 3,175,734,760.00 | 266,929,289.24 | 9,772,795,863.75 | 455,303,777.91 | -4,280,000.00 | 296,754,883.56 | 3,874,934,971.69 | 357,221,037.38 | 17,284,787,027.71 | ||||
| Add:Cumulativechangesofaccountingpolicies | |||||||||||||
| Errorcorrectionofpriorperiod | |||||||||||||
| Businesscombinationundercommoncontrol | |||||||||||||
| Others | |||||||||||||
| II.Balanceatthebeginningofcurrentyear | 3,175,734,760.00 | 266,929,289.24 | 9,772,795,863.75 | 455,303,777.91 | -4,280,000.00 | 296,754,883.56 | 3,874,934,971.69 | 357,221,037.38 | 17,284,787,027.71 | ||||
| III.Currentperiodincrease(orless:decrease) | 3,770,799.00 | -12,947.44 | -110,284,609.27 | -361,170,982.74 | -350,000.00 | 18,369,884.36 | 88,371,918.37 | 91,589,633.51 | 452,625,661.27 | ||||
| (I)Totalcomprehensiveincome | -350,000.00 | 418,794,179.13 | 40,497,942.44 | 458,942,121.57 | |||||||||
| (II)Capitalcontributedorwithdrawnbyowners | 3,770,799.00 | -12,947.44 | -110,284,609.27 | -361,170,982.74 | 60,341,209.93 | 314,985,434.96 | |||||||
| 1.Ordinarysharescontributedbyowners | 3,761,991.00 | -112,538,093.97 | -361,170,982.74 | 46,970,675.00 | 299,365,554.77 | ||||||||
| 2.Capitalcontributedbyholdersofotherequityinstruments | 8,808.00 | -12,947.44 | 66,691.53 | 62,552.09 | |||||||||
| 3.Amountofshare-basedpaymentincludedinequity | 3,868,552.56 | 170,516.82 | 4,039,069.38 | ||||||||||
| 4.Others | -1,681,759.39 | 13,200,018.11 | 11,518,258.72 | ||||||||||
| (III)Profitdistribution | 18,369,884.36 | -330,422,260.76 | -9,249,518.86 | -321,301,895.26 | |||||||||
| 1.Appropriationofsurplusreserve | 18,369,884.36 | -18,369,884.36 | |||||||||||
| 2.Appropriationofgeneralriskreserve | |||||||||||||
| 3.Appropriationofprofittoowners | -312,052,376.40 | -9,249,518.86 | -321,301,895.26 | ||||||||||
| 4.Others | |||||||||||||
| (IV)Internalcarry-overwithinequity | |||||||||||||
| 1.Transferofcapitalreservetocapital | |||||||||||||
| 2.Transferofsurplusreservetocapital | |||||||||||||
| 3.Surplusreservetocoverlosses | |||||||||||||
| 4.Changesindefinedbenefitplancarriedovertoretainedearnings | |||||||||||||
| 5.Othercomprehensiveincomecarriedovertoretainedearnings | |||||||||||||
| 6.Others | |||||||||||||
| (V)Specialreserve | |||||||||||||
| 1.Currentperiodappropriation | 8,693,981.54 | 8,693,981.54 | |||||||||||
| 2.Currentperioduse | -8,693,981.54 | -8,693,981.54 | |||||||||||
| (VI)Others | |||||||||||||
| IV.Balanceattheendofcurrentperiod | 3,179,505,559.00 | 266,916,341.80 | 9,662,511,254.48 | 94,132,795.17 | -4,630,000.00 | 315,124,767.92 | 3,963,306,890.06 | 448,810,670.89 | 17,737,412,688.98 | ||||
Legalrepresentative:Officerinchargeofaccounting:Headofaccountingdepartment:
InforeEnvironmentTechnologyGroupCo.,Ltd.
ParentcompanystatementofchangesinequityfortheyearendedDecember31,2023
(ExpressedinRenminbiYuan)
| Items | Currentperiodcumulative | ||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserve | Less:Treasuryshares | Othercomprehensiveincome | Specialreserve | Surplusreserve | Undistributedprofit | Totalequity | |||
| Preferredshares | Perpetualbonds | Others | |||||||||
| I.Balanceattheendofprioryear | 3,179,505,559.00 | 266,916,341.80 | 15,324,654,061.79 | 94,132,795.17 | -4,630,000.00 | 280,904,378.50 | 559,764,885.53 | 19,512,982,431.45 | |||
| Add:Cumulativechangesofaccountingpolicies | |||||||||||
| Errorcorrectionofpriorperiod | |||||||||||
| Others | |||||||||||
| II.Balanceatthebeginningofcurrentyear | 3,179,505,559.00 | 266,916,341.80 | 15,324,654,061.79 | 94,132,795.17 | -4,630,000.00 | 280,904,378.50 | 559,764,885.53 | 19,512,982,431.45 | |||
| III.Currentperiodincrease(orless:decrease) | 1,111.00 | -1,627.47 | 8,673.60 | 63,892,252.27 | 226,666,728.79 | 290,567,138.19 | |||||
| (I)Totalcomprehensiveincome | 638,922,522.74 | 638,922,522.74 | |||||||||
| (II)Capitalcontributedorwithdrawnbyowners | 1,111.00 | -1,627.47 | 8,673.60 | 8,157.13 | |||||||
| 1.Ordinarysharescontributedbyowners | |||||||||||
| 2.Capitalcontributedbyholdersofotherequityinstruments | 1,111.00 | -1,627.47 | 8,673.60 | 8,157.13 | |||||||
| 3.Amountofshare-basedpaymentincludedinequity | |||||||||||
| 4.Others | |||||||||||
| (III)Profitdistribution | 63,892,252.27 | -412,255,793.95 | -348,363,541.68 | ||||||||
| 1.Appropriationofsurplusreserve | 63,892,252.27 | -63,892,252.27 | |||||||||
| 2.Appropriationofprofittoowners | -348,363,541.68 | -348,363,541.68 | |||||||||
| 3.Others | |||||||||||
| (IV)Internalcarry-overwithinequity | |||||||||||
| 1.Transferofcapitalreservetocapital | |||||||||||
| 2.Transferofsurplusreservetocapital | |||||||||||
| 3.Surplusreservetocoverlosses | |||||||||||
| 4.Changesindefinedbenefitplancarriedovertoretainedearnings | |||||||||||
| 5.Othercomprehensiveincomecarriedovertoretainedearnings | |||||||||||
| 6.Others | |||||||||||
| (V)Specialreserve | |||||||||||
| 1.Currentperiodappropriation | |||||||||||
| 2.Currentperioduse | |||||||||||
| (VI)Others | |||||||||||
| IV.Balanceattheendofcurrentperiod | 3,179,506,670.00 | 266,914,714.33 | 15,324,662,735.39 | 94,132,795.17 | -4,630,000.00 | 344,796,630.77 | 786,431,614.32 | 19,803,549,569.64 | |||
Legalrepresentative:Officerinchargeofaccounting:Headofaccountingdepartment:
InforeEnvironmentTechnologyGroupCo.,Ltd.
ParentcompanystatementofchangesinequityfortheyearendedDecember31,2023(continued)
(ExpressedinRenminbiYuan)
| Items | Precedingperiodcomparative | ||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserve | Less:Treasuryshares | Othercomprehensiveincome | Specialreserve | Surplusreserve | Undistributedprofit | Totalequity | |||
| Preferredshares | Perpetualbonds | Others | |||||||||
| I.Balanceattheendofprioryear | 3,175,734,760.00 | 266,929,289.24 | 15,433,256,911.67 | 455,303,777.91 | -4,280,000.00 | 262,534,494.14 | 706,488,302.65 | 19,385,359,979.79 | |||
| Add:Cumulativechangesofaccountingpolicies | |||||||||||
| Errorcorrectionofpriorperiod | |||||||||||
| Others | |||||||||||
| II.Balanceatthebeginningofcurrentyear | 3,175,734,760.00 | 266,929,289.24 | 15,433,256,911.67 | 455,303,777.91 | -4,280,000.00 | 262,534,494.14 | 706,488,302.65 | 19,385,359,979.79 | |||
| III.Currentperiodincrease(orless:decrease) | 3,770,799.00 | -12,947.44 | -108,602,849.88 | -361,170,982.74 | -350,000.00 | 18,369,884.36 | -146,723,417.12 | 127,622,451.66 | |||
| (I)Totalcomprehensiveincome | -350,000.00 | 183,698,843.64 | 183,348,843.64 | ||||||||
| (II)Capitalcontributedorwithdrawnbyowners | 3,770,799.00 | -12,947.44 | -108,602,849.88 | -361,170,982.74 | 256,325,984.42 | ||||||
| 1.Ordinarysharescontributedbyowners | 3,761,991.00 | -112,538,093.97 | -361,170,982.74 | 252,394,879.77 | |||||||
| 2.Capitalcontributedbyholdersofotherequityinstruments | 8,808.00 | -12,947.44 | 66,691.53 | 62,552.09 | |||||||
| 3.Amountofshare-basedpaymentincludedinequity | 3,868,552.56 | 3,868,552.56 | |||||||||
| 4.Others | |||||||||||
| (III)Profitdistribution | 18,369,884.36 | -330,422,260.76 | -312,052,376.40 | ||||||||
| 1.Appropriationofsurplusreserve | 18,369,884.36 | -18,369,884.36 | |||||||||
| 2.Appropriationofprofittoowners | -312,052,376.40 | -312,052,376.40 | |||||||||
| 3.Others | |||||||||||
| (IV)Internalcarry-overwithinequity | |||||||||||
| 1.Transferofcapitalreservetocapital | |||||||||||
| 2.Transferofsurplusreservetocapital | |||||||||||
| 3.Surplusreservetocoverlosses | |||||||||||
| 4.Changesindefinedbenefitplancarriedovertoretainedearnings | |||||||||||
| 5.Othercomprehensiveincomecarriedovertoretainedearnings | |||||||||||
| 6.Others | |||||||||||
| (V)Specialreserve | |||||||||||
| 1.Currentperiodappropriation | |||||||||||
| 2.Currentperioduse | |||||||||||
| (VI)Others | |||||||||||
| IV.Balanceattheendofcurrentperiod | 3,179,505,559.00 | 266,916,341.80 | 15,324,654,061.79 | 94,132,795.17 | -4,630,000.00 | 280,904,378.50 | 559,764,885.53 | 19,512,982,431.45 | |||
Legalrepresentative:Officerinchargeofaccounting:Headofaccountingdepartment:
InforeEnvironmentTechnologyGroupCo.,Ltd.
NotestoFinancialStatements
FortheyearendedDecember31,2023
Monetaryunit:RMBYuanI.CompanyprofileInforeEnvironmentTechnologyGroupCo.,Ltd.(the“Company”),formerlyknownasZhejiangShangfengIndustrialCo.,Ltd.,wasregisteredatZhejiangAdministrationforIndustryandCommerceonNovember18,1993.UndertheapprovalofZhejiangShareSystemPilotWorkCoordinationGroupwithdocumentofapprovalnumberedZheGu[1993]51,theCompanywasestablishedbyZhejiangFanAirCoolingEquipmentCo.,Ltd.,themaininitiator,andShangyuFanFactoryandShaoxingFluidEngineeringResearchInstitute,thejointinitiators,throughtargetedfundraising.HeadquarteredinShaoxingCity,ZhejiangProvince,theCompanycurrentlyholdsabusinesslicensewithunifiedsocialcreditcodeof913300006096799222.AsofDecember31,2023,ithasregisteredcapitalof3,179,505,559.00yuan,andtotalsharecapitalof3,179,506,670.00yuan.Thedifferencebetweentheregisteredcapitalandsharecapitalisbecausethechangerelatedtonewsharecapitalhasnotbeenregisteredattheadministrationformarketregulation.AccordingtotherecordsinChinaSecuritiesDepositoryandClearingCorporationLimited,asofDecember31,2023,theCompanyhasrestrictedoutstandingsharesof1,472,469shares,andunrestrictedoutstandingsharesof3,178,034,201shares,totaling3,179,506,670.00shares.TheCompany’sshareswerelistedontheShenzhenStockExchangeonMarch30,2000.TheCompanybelongstotheecologicalprotectionandenvironmentalmanagementindustry.ThemainbusinessactivitiesincludeR&D,maintenanceandoperationservicesofenvironmentalmonitoringinstrumentsandenvironmentalprotectionequipment,environmentaltreatmenttechnologydevelopment,consultingandservices,operationservicesofenvironmentaltreatmentfacilities,environmentalengineering,environmentalprotectionengineering,urbanengineering,saleofventilators,air-cooling,water-coolingandair-conditioningequipment,etc.Itsrevenueismainlyfromsalesofenvironmentalandsanitationmachinery,ventilationequipment,andsanitationoperationservice.ThefinancialstatementswereapprovedandauthorizedforissuebythesixthmeetingofthetenthsessionoftheBoardofDirectorsdatedApril26,2024.TheCompanyhasbrought278subsidiariesincludingChangshaZoomlionEnvironmentalIndustryCo.,Ltd.(the“ZoomlionEnvironmentalCompany”),ZhejiangShangfengSpecialBlowerIndustrialCo.,Ltd.(the“ShangfengIndustrialCompany”),GuangdongInforeTechnologyCo.,Ltd.(the“InforeTechnologyCompany”)andShenzhenGreenOrientalEnvironmentalProtectionCo.,Ltd.(the“GreenOrientalCompany”)intotheconsolidationscope.PleaserefertosectionVIIofnotestothefinancialstatementsfordetails.
II.Preparationbasisofthefinancialstatements(I)PreparationbasisThefinancialstatementshavebeenpreparedonthebasisofgoingconcern.(II)AssessmentoftheabilitytocontinueasagoingconcernTheCompanyhasnoeventsorconditionsthatmaycastsignificantdoubtsupontheCompany’sabilitytocontinueasagoingconcernwithinthe12monthsafterthebalancesheetdate.III.SignificantaccountingpoliciesandestimatesImportantnote:TheCompanyhassetupaccountingpoliciesandestimatesontransactionsoreventssuchasimpairmentoffinancialinstruments,depreciationoffixedassets,depreciationofright-of-useassets,amortizationofintangibleassets,revenuerecognition,etc.,basedontheCompany’sactualproductionandoperationfeatures.(I)StatementofcomplianceThefinancialstatementshavebeenpreparedinaccordancewiththerequirementsofChinaAccountingStandardsforBusinessEnterprises(CASBEs),andpresenttrulyandcompletelythefinancialposition,financialperformanceandcashflowsoftheCompany.(II)AccountingperiodTheaccountingyearoftheCompanyrunsfromJanuary1toDecember31undertheGregoriancalendar.(III)OperatingcycleTheCompanyhasarelativelyshortoperatingcycleforitsbusiness,anassetoraliabilityisclassifiedascurrentifitisexpectedtoberealizedorduewithin12months.(IV)FunctionalcurrencyTheCompany’sfunctionalcurrencyisRenminbi(RMB)Yuan.(V)DeterminationmethodandbasisforselectionofmaterialityTheCompanypreparesanddisclosesfinancialstatementsincompliancewiththeprincipleofmateriality.Theitemsdisclosedinnotestothefinancialstatementsinvolvingmaterialityjudgements,determinationmethodandbasisforselectionofmaterialityareasfollows:
| Discloseditemsinvolvingmaterialityjudgements | NoteNo. | Determinationmethodandbasisforselectionofmateriality |
| Significantaccountsreceivablewithprovisionforbaddebtsmadeonanindividualbasis | V(I)3(2)2) | Accountsreceivablewithsingleamountinexcessof0.3%oftotalassetsareidentifiedassignificantaccountsreceivable. |
| Significantaccountsreceivablewrittenoff | V(I)3(4)2) | Accountsreceivablewrittenoffwithsingleamountinexcessof0.3%oftotalassetsareidentifiedassignificantaccountsreceivablewrittenoff. |
| Significantadvancespaidwithageoveroneyear | V(I)5(1)2) | Advancespaidwithsingleamountinexcessof0.3%oftotalassetsareidentifiedassignificantadvancespaid. |
| Significantotherreceivableswithprovisionforbaddebtsmadeonanindividualbasis | V(I)6(3)2) | Otherreceivableswithsingleamountinexcessof0.3%oftotalassetsareidentifiedassignificantotherreceivables. |
| Significantotherreceivableswrittenoff | V(I)6(5)2) | Otherreceivableswrittenoffwithsingleamountinexcessof0.3%oftotalassetsareidentifiedassignificantotherreceivableswrittenoff. |
| Significantconstructioninprogress | V(I)16(2) | Constructioninprogresswithsingleamountinexcessof0.3%oftotalassetsareidentifiedassignificantconstructioninprogress. |
| Significantaccountspayablewithageoveroneyear | V(I)27(1)2) | Accountspayablewithsingleamountinexcessof0.3%oftotalassetsareidentifiedassignificantaccountspayable. |
| Significantcontractliabilitieswithageoveroneyear | V(I)28(2) | Contractliabilitieswithsingleamountinexcessof0.3%oftotalassetsareidentifiedassignificantcontractliabilities. |
| Significantotherpayableswithageoveroneyear | V(I)31(2) | Otherpayableswithsingleamountinexcessof0.3%oftotalassetsareidentifiedassignificantotherpayables. |
| Significantcashflowsfrominvestingactivities | V(III)1 | Cashflowsfrominvestingactivitieswithsingleamountinexcessof10%oftotalassetsareidentifiedassignificantcashflowsfrominvestingactivities. |
| SignificantcapitalizedR&DprojectsandoutsourcedR&Dprojects | VI(II)2 | CapitalizedR&DprojectsandoutsourcedR&Dprojectswithsingleamountinexcessof0.3%oftotalassetsareidentifiedassignificantcapitalizedR&DprojectsandoutsourcedR&Dprojects. |
| Significantsubsidiaries,notwholly-ownedsubsidiaries | VII(I)2 | Subsidiarieswithtotalassetsinexcessof15%ofthegroup’stotalassetsareidentifiedassignificantsubsidiariesorsignificantnotwholly-ownedsubsidiaries. |
| Significantjointventures,associatesandjointoperations | VII(V) | Jointventuresandassociateswiththeamountofsinglelong-termequityinvestmentinexcessof0.5%ofthetotalassetsareidentifiedassignificantjointventures,associatesorjointoperations. |
(VI)Accountingtreatmentsofbusinesscombinationunderandnotundercommoncontrol
1.AccountingtreatmentofbusinesscombinationundercommoncontrolAssetsandliabilitiesarisingfrombusinesscombinationaremeasuredatcarryingamountofthecombinedpartyincludedintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyatthecombinationdate.Differencebetweencarryingamountoftheequityofthecombinedpartyincludedintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyandthatofthecombinationconsiderationortotalparvalueofsharesissuedisadjustedtocapitalreserve,ifthebalanceofcapitalreserveisinsufficienttooffset,anyexcessisadjustedtoretainedearnings.
2.AccountingtreatmentofbusinesscombinationnotundercommoncontrolWhencombinationcostisinexcessofthefairvalueofidentifiablenetassetsobtainedfromtheacquireeattheacquisitiondate,theexcessisrecognizedasgoodwill;otherwise,thefairvalueofidentifiableassets,liabilitiesandcontingentliabilities,andthemeasurementofthecombinationcostarereviewed,thenthedifferenceisrecognizedinprofitorloss.(VII)Judgementcriteriaforcontrolandcompilationmethodofconsolidatedfinancialstatements
1.JudgementofcontrolAninvestorcontrolsaninvesteeifandonlyiftheinvestorhasallthefollowing:(1)powerovertheinvestee;(2)exposure,orrights,tovariablereturnsfromitsinvolvementwiththeinvestee;and(3)theabilitytouseitspowerovertheinvesteetoaffecttheamountoftheinvestor’sreturns.
2.CompilationmethodofconsolidatedfinancialstatementsTheparentcompanybringsallitscontrolledsubsidiariesintotheconsolidationscope.Theconsolidatedfinancialstatementsarecompiledbytheparentcompanyaccordingto“CASBE33–ConsolidatedFinancialStatements”,basedonrelevantinformationandthefinancialstatementsoftheparentcompanyanditssubsidiaries.(VIII)Classificationofjointarrangementsandaccountingtreatmentofjointoperations
1.Jointarrangementsincludejointoperationsandjointventures.
2.WhentheCompanyisajointoperatorofajointoperation,itrecognizesthefollowingitemsinrelationtoitsinterestinajointoperation:
(1)itsassets,includingitsshareofanyassetsheldjointly;
(2)itsliabilities,includingitsshareofanyliabilitiesincurredjointly;
(3)itsrevenuefromthesaleofitsshareoftheoutputarisingfromthejointoperation;
(4)itsshareoftherevenuefromthesaleoftheassetsbythejointoperation;and
(5)itsexpenses,includingitsshareofanyexpensesincurredjointly.(IX)RecognitioncriteriaofcashandcashequivalentsCashaspresentedincashflowstatementreferstocashonhandanddepositondemandforpayment.Cashequivalentsrefertoshort-term,highlyliquidinvestmentsthatcanbereadilyconvertedtocashandthataresubjecttoaninsignificantriskofchangesinvalue.(X)Foreigncurrencytranslation
1.TranslationoftransactionsdenominatedinforeigncurrencyTransactionsdenominatedinforeigncurrencyaretranslatedintoRMByuanatthespotexchangerateatthetransactiondateatinitialrecognition.Atthebalancesheetdate,monetaryitemsdenominatedinforeigncurrencyaretranslatedatthespotexchangerateatthebalancesheetdatewithdifference,exceptforthosearisingfromtheprincipalandinterestofexclusiveborrowingseligibleforcapitalization,includedinprofitorloss;non-cashitemscarriedathistoricalcostsaretranslatedatthespotexchangerateatthetransactiondate,withtheRMBamounts
unchanged;non-cashitemscarriedatfairvalueinforeigncurrencyaretranslatedatthespotexchangerateatthedatewhenthefairvaluewasdetermined,withdifferenceincludedinprofitorlossorothercomprehensiveincome.
2.TranslationoffinancialstatementsmeasuredinforeigncurrencyTheassetsandliabilitiesinthebalancesheetaretranslatedintoRMBatthespotexchangerateatthebalancesheetdate;theequityitems,otherthanundistributedprofit,aretranslatedatthespotexchangerateatthetransactiondate;therevenuesandexpensesintheincomestatementaretranslatedintoRMBatthespotexchangerateatthetransactiondate.Thedifferencearisingfromtheaforementionedforeigncurrencytranslationisincludedinothercomprehensiveincome.(XI)Financialinstruments
1.ClassificationoffinancialassetsandfinancialliabilitiesFinancialassetsareclassifiedintothefollowingthreecategorieswheninitiallyrecognized:(1)financialassetsatamortizedcost;(2)financialassetsatfairvaluethroughothercomprehensiveincome;(3)financialassetsatfairvaluethroughprofitorloss.Financialliabilitiesareclassifiedintothefollowingfourcategorieswheninitiallyrecognized:(1)financialliabilitiesatfairvaluethroughprofitorloss;(2)financialliabilitiesthatarisewhenatransferofafinancialassetdoesnotqualifyforderecognitionorwhenthecontinuinginvolvementapproachapplies;(3)financialguaranteecontractsnotfallwithintheabovecategories(1)and(2),andcommitmentstoprovidealoanatabelow-marketinterestrate,whichdonotfallwithintheabovecategory(1);(4)financialliabilitiesatamortizedcost.
2.Recognitioncriteria,measurementmethodandderecognitionoffinancialassetsandfinancialliabilities
(1)RecognitioncriteriaandmeasurementmethodoffinancialassetsandfinancialliabilitiesWhentheCompanybecomesapartytoafinancialinstrument,itisrecognizedasafinancialassetorfinancialliability.ThefinancialassetsandfinancialliabilitiesinitiallyrecognizedbytheCompanyaremeasuredatfairvalue;forthefinancialassetsandliabilitiesatfairvaluethroughprofitorloss,thetransactionexpensesthereofaredirectlyincludedinprofitorloss;forothercategoriesoffinancialassetsandfinancialliabilities,thetransactionexpensesthereofareincludedintotheinitiallyrecognizedamount.However,atinitialrecognition,foraccountsreceivablethatdonotcontainasignificantfinancingcomponentorincircumstanceswheretheCompanydoesnotconsiderthefinancingcomponentsincontractswithinoneyear,theyaremeasuredatthetransactionpriceinaccordancewith“CASBE14–Revenues”.
(2)Subsequentmeasurementoffinancialassets
1)FinancialassetsmeasuredatamortizedcostTheCompanymeasuresitsfinancialassetsattheamortizedcostsusingeffectiveinterestmethod.Gainsorlossesonfinancialassetsthataremeasuredatamortizedcostandarenotpartofhedgingrelationshipsshallbeincludedintoprofitorlosswhenthefinancialassetsarederecognized,reclassified,amortizedusingeffectiveinterestmethodorrecognizedwithimpairmentloss.
2)DebtinstrumentinvestmentsatfairvaluethroughothercomprehensiveincomeTheCompanymeasuresitsdebtinstrumentinvestmentsatfairvalue.Interests,impairmentgainsorlosses,and
gainsandlossesonforeignexchangethatcalculatedusingeffectiveinterestmethodshallbeincludedintoprofitorloss,whileothergainsorlossesareincludedintoothercomprehensiveincome.Accumulatedgainsorlossesthatinitiallyrecognizedasothercomprehensiveincomeshouldbetransferredoutintoprofitorlosswhenthefinancialassetsarederecognized.
3)EquityinstrumentinvestmentsatfairvaluethroughothercomprehensiveincomeTheCompanymeasuresitsequityinstrumentinvestmentsatfairvalue.Dividendsobtained(otherthanthoseaspartofinvestmentcostrecovery)shallbeincludedintoprofitorloss,whileothergainsorlossesareincludedintoothercomprehensiveincome.Accumulatedgainsorlossesthatinitiallyrecognizedasothercomprehensiveincomeshouldbetransferredoutintoretainedearningswhenthefinancialassetsarederecognized.
4)FinancialassetsatfairvaluethroughprofitorlossTheCompanymeasuresitsfinancialassetsatfairvalue.Gainsorlossesarisingfromchangesinfairvalue(includinginterestsanddividends)shallbeincludedintoprofitorloss,exceptforfinancialassetsthatarepartofhedgingrelationships.
(3)Subsequentmeasurementoffinancialliabilities
1)FinancialliabilitiesatfairvaluethroughprofitorlossFinancialliabilitiesatfairvaluethroughprofitorlossincludeheld-for-tradingfinancialliabilities(includingderivativesthatareliabilities)andfinancialliabilitiesdesignatedasatfairvaluethroughprofitorloss.TheCompanymeasuressuchkindofliabilitiesatfairvalue.TheamountofchangesinthefairvalueofthefinancialliabilitiesthatareattributabletochangesintheCompany’sowncreditriskshallbeincludedintoothercomprehensiveincome,unlesssuchtreatmentwouldcreateorenlargeaccountingmismatchesinprofitorloss.Othergainsorlossesonthosefinancialliabilities(includinginterests,changesinfairvaluethatareattributabletoreasonsotherthanchangesintheCompany’sowncreditrisk)shallbeincludedintoprofitorloss,exceptforfinancialliabilitiesthatarepartofhedgingrelationships.Accumulatedgainsorlossesthatoriginallyrecognizedasothercomprehensiveincomeshouldbetransferredoutintoretainedearningswhenthefinancialliabilitiesarederecognized.
2)FinancialliabilitiesthatarisewhenatransferofafinancialassetdoesnotqualifyforderecognitionorwhenthecontinuinginvolvementapproachappliesTheCompanymeasuresitsfinancialliabilitiesinaccordancewith“CASBE23–TransferofFinancialAssets”.
3)Financialguaranteecontractsnotfallwithintheabovecategories1)and2),andcommitmentstoprovidealoanatabelow-marketinterestrate,whichdonotfallwithintheabovecategory1)TheCompanymeasuresitsfinancialliabilitiesatthehigherof:a.theamountoflossallowancesinaccordancewithimpairmentrequirementsoffinancialinstruments;b.theamountinitiallyrecognizedlesstheamountofaccumulatedamortizationrecognizedinaccordancewith“CASBE14–Revenues”.
4)FinancialliabilitiesatamortizedcostTheCompanymeasuresitsfinancialliabilitiesatamortizedcostusingeffectiveinterestmethod.Gainsorlossesonfinancialliabilitiesthataremeasuredatamortizedcostandarenotpartofhedgingrelationshipsshallbeincluded
intoprofitorlosswhenthefinancialliabilitiesarederecognizedandamortizedusingeffectiveinterestmethod.
(4)Derecognitionoffinancialassetsandfinancialliabilities
1)Financialassetsarederecognizedwhen:
a.thecontractualrightstothecashflowsfromthefinancialassetsexpire;orb.thefinancialassetshavebeentransferredandthetransferqualifiesforderecognitioninaccordancewith“CASBE23–TransferofFinancialAssets”.
2)Onlywhentheunderlyingpresentobligationsofafinancialliabilityarerelievedtotallyorpartlymaythefinancialliabilitybederecognizedaccordingly.
3.RecognitioncriteriaandmeasurementmethodoffinancialassetstransferWheretheCompanyhastransferredsubstantiallyalloftherisksandrewardsrelatedtotheownershipofthefinancialasset,itderecognizesthefinancialasset,andanyrightorliabilityarisingfromsuchtransferisrecognizedindependentlyasanassetoraliability.Ifitretainedsubstantiallyalloftherisksandrewardsrelatedtotheownershipofthefinancialasset,itcontinuesrecognizingthefinancialasset.WheretheCompanydoesnottransferorretainsubstantiallyalloftherisksandrewardsrelatedtotheownershipofafinancialasset,itisdealtwithaccordingtothecircumstancesasfollowsrespectively:(1)iftheCompanydoesnotretainitscontroloverthefinancialasset,itderecognizesthefinancialasset,andanyrightorliabilityarisingfromsuchtransferisrecognizedindependentlyasanassetoraliability;(2)iftheCompanyretainsitscontroloverthefinancialasset,accordingtotheextentofitscontinuinginvolvementinthetransferredfinancialasset,itrecognizestherelatedfinancialassetandrecognizestherelevantliabilityaccordingly.Ifthetransferofanentirefinancialassetsatisfiestheconditionsforderecognition,thedifferencebetweentheamountsofthefollowingtwoitemsisincludedinprofitorloss:(1)thecarryingamountofthetransferredfinancialassetasofthedateofderecognition;(2)thesumofconsiderationreceivedfromthetransferofthefinancialasset,andtheaccumulativeamountofthechangesofthefairvalueoriginallyincludedinothercomprehensiveincomeproportionatetothetransferredfinancialasset(financialassetstransferredrefertodebtinstrumentinvestmentsatfairvaluethroughothercomprehensiveincome).Ifthetransferoffinancialassetpartiallysatisfiestheconditionsforderecognition,theentirecarryingamountofthetransferredfinancialassetis,betweentheportionwhichisderecognizedandtheportionwhichisnot,apportionedaccordingtotheirrespectiverelativefairvalue,andthedifferencebetweentheamountsofthefollowingtwoitemsisincludedintoprofitorloss:(1)thecarryingamountoftheportionwhichisderecognized;(2)thesumofconsiderationoftheportionwhichisderecognized,andtheportionoftheaccumulativeamountofthechangesinthefairvalueoriginallyincludedinothercomprehensiveincomewhichiscorrespondingtotheportionwhichisderecognized(financialassetstransferredrefertodebtinstrumentinvestmentsatfairvaluethroughothercomprehensiveincome).
4.FairvaluedeterminationmethodoffinancialassetsandliabilitiesTheCompanyusesvaluationtechniquesthatareappropriateinthecircumstancesandforwhichsufficientdataandinformationareavailabletomeasurefairvalue.Theinputstovaluationtechniquesusedtomeasurefairvaluearearrangedinthefollowinghierarchyandusedaccordingly:
(1)Level1inputsareunadjustedquotedpricesinactivemarketsforidenticalassetsorliabilitiesthattheCompanycanaccessatthemeasurementdate;
(2)Level2inputsareinputsotherthanquotedpricesincludedwithinLevel1thatareobservablefortheassetorliability,eitherdirectlyorindirectly.Level2inputsinclude:quotedpricesforsimilarassetsorliabilitiesinactivemarkets;quotedpricesforidenticalorsimilarassetsorliabilitiesinmarketsthatarenotactive;inputsotherthanquotedpricesthatareobservablefortheassetorliability,forexample,interestratesandyieldcurvesobservableatcommonlyquotedintervals;market-corroboratedinputs;
(3)Level3inputsareunobservableinputsfortheassetorliability.Level3inputsincludeinterestratethatisnotobservableandcannotbecorroboratedbyobservablemarketdataatcommonlyquotedintervals,historicalvolatility,futurecashflowstobepaidtofulfillthedisposalobligationassumedinbusinesscombination,financialforecastdevelopedusingtheCompany’sowndata,etc.
5.ImpairmentoffinancialinstrumentsTheCompany,onthebasisofexpectedcreditloss,recognizeslossallowancesoffinancialassetsatamortizedcost,debtinstrumentinvestmentsatfairvaluethroughothercomprehensiveincome,contractassets,leasesreceivable,loancommitmentsotherthanfinancialliabilitiesatfairvaluethroughprofitorloss,financialguaranteecontractsnotbelongtofinancialliabilitiesatfairvaluethroughprofitorlossorfinancialliabilitiesthatarisewhenatransferofafinancialassetdoesnotqualifyforderecognitionorwhenthecontinuinginvolvementapproachapplies.Expectedcreditlossesrefertotheweightedaverageofcreditlosseswiththerespectiverisksofadefaultoccurringastheweights.CreditlossreferstothedifferencebetweenallcontractualcashflowsthatareduetotheCompanyinaccordancewiththecontractandallthecashflowsthattheCompanyexpectstoreceive(i.e.,allcashshortfalls),discountedattheoriginaleffectiveinterestrate.Amongwhich,purchasedororiginatedcredit-impairedfinancialassetsarediscountedatthecredit-adjustedeffectiveinterestrate.Atthebalancesheetdate,theCompanyshallonlyrecognizethecumulativechangesinthelifetimeexpectedcreditlossessinceinitialrecognitionasalossallowanceforpurchasedororiginatedcredit-impairedfinancialassets.Forleasesreceivable,andaccountsreceivableandcontractassetsresultingfromtransactionsregulatedin“CASBE14–Revenues”,theCompanychoosessimplifiedapproachtomeasurethelossallowanceatanamountequaltolifetimeexpectedcreditlosses.Forfinancialassetsotherthantheabove,oneachbalancesheetdate,theCompanyshallassesswhetherthecreditriskonthefinancialinstrumenthasincreasedsignificantlysinceinitialrecognition.TheCompanyshallmeasurethelossallowanceforthefinancialinstrumentatanamountequaltothelifetimeexpectedcreditlossesifthecreditriskonthatfinancialinstrumenthasincreasedsignificantlysinceinitialrecognition;otherwise,theCompanyshallmeasurethelossallowanceforthatfinancialinstrumentatanamountequalto12-monthexpectedcreditloss.Consideringreasonableandsupportableforward-lookinginformation,theCompanycomparestheriskofadefaultoccurringonthefinancialinstrumentasatthebalancesheetdatewiththeriskofadefaultoccurringonthefinancialinstrumentasatthedateofinitialrecognition,soastoassesswhetherthecreditriskonthefinancial
instrumenthasincreasedsignificantlysinceinitialrecognition.TheCompanymayassumethatthecreditriskonafinancialinstrumenthasnotincreasedsignificantlysinceinitialrecognitionifthefinancialinstrumentisdeterminedtohaverelativelylowcreditriskatthebalancesheetdate.TheCompanyshallestimateexpectedcreditriskandmeasureexpectedcreditlossesonanindividualoracollectivebasis.WhentheCompanyadoptsthecollectivebasis,financialinstrumentsaregroupedwithsimilarcreditriskfeatures.TheCompanyshallremeasureexpectedcreditlossoneachbalancesheetdate,andincreasedorreversedamountsoflossallowancearisingtherefromshallbeincludedintoprofitorlossasimpairmentlossesorgains.Forafinancialassetmeasuredatamortizedcost,thelossallowancereducesthecarryingamountofsuchfinancialassetpresentedinthebalancesheet;foradebtinvestmentmeasuredatfairvaluethroughothercomprehensiveincome,thelossallowanceshallberecognizedinothercomprehensiveincomeandshallnotreducethecarryingamountofsuchfinancialasset.
6.OffsettingfinancialassetsandfinancialliabilitiesFinancialassetsandfinancialliabilitiesarepresentedseparatelyinthebalancesheetandarenotoffset.However,theCompanyoffsetsafinancialassetandafinancialliabilityandpresentsthenetamountinthebalancesheetwhen,andonlywhen,theCompany:(1)currentlyhasalegallyenforceablerighttosetofftherecognizedamounts;and(2)intendseithertosettleonanetbasis,ortorealizetheassetandsettletheliabilitysimultaneously.Foratransferofafinancialassetthatdoesnotqualifyforderecognition,theCompanydoesnotoffsetthetransferredassetandtheassociatedliability.(XII)Recognitioncriteriaandaccrualmethodforexpectedcreditlossesofreceivablesandcontractassets
1.Receivablesandcontractassetswithexpectedcreditlossesmeasuredonacollectivebasisusingsimilarcreditriskfeatures
| Categories | Basisfordeterminationofportfolio | Methodformeasuringexpectedcreditloss |
| Bankacceptancereceivable | Typeofnotes | Basedonhistoricalcreditlossexperience,thecurrentsituationandtheforecastoffutureeconomicconditions,theCompanycalculatesexpectedcreditlossthroughexposureatdefaultandlifetimeexpectedcreditlossrate. |
| Tradeacceptancereceivable | ||
| Accountsreceivable–Portfoliogroupedwithbalancesduefromrelatedpartieswithintheconsolidationscope | Balancesduefromrelatedpartieswithintheconsolidationscope | Basedonhistoricalcreditlossexperience,thecurrentsituationandtheforecastoffutureeconomicconditions,theCompanycalculatesexpectedcreditlossthroughexposureatdefaultandlifetimeexpectedcreditlossrate. |
| Accountsreceivable–Portfoliogroupedwithages | Ages | Basedonhistoricalcreditlossexperience,thecurrentsituationandtheforecastoffutureeconomicconditions,theCompanypreparesthecomparisontableofagesandlifetimeexpectedcreditlossrateofaccountsreceivable,soastocalculateexpectedcreditloss. |
| Accountsreceivable–Portfolio | Natureofreceivables | Basedonhistoricalcreditlossexperience,the |
| Categories | Basisfordeterminationofportfolio | Methodformeasuringexpectedcreditloss |
| groupedwithgovernmentsubsidiesfornewenergyvehicles | currentsituationandtheforecastoffutureeconomicconditions,theCompanycalculatesexpectedcreditlossthroughexposureatdefaultandlifetimeexpectedcreditlossrate. | |
| Otherreceivables–Portfoliogroupedwithbalancesduefromrelatedpartieswithintheconsolidationscope | Balancesduefromrelatedpartieswithintheconsolidationscope | Basedonhistoricalcreditlossexperience,thecurrentsituationandtheforecastoffutureeconomicconditions,theCompanycalculatesexpectedcreditlossthroughexposureatdefaultand12-monthorlifetimeexpectedcreditlossrate. |
| Otherreceivables–Portfoliogroupedwithperformancecompensations | Natureofreceivables | |
| Otherreceivables–Portfoliogroupedwithbuyer’scredit | Natureofreceivables | |
| Otherreceivables–Portfoliogroupedwithages | Ages | Basedonhistoricalcreditlossexperience,thecurrentsituationandtheforecastoffutureeconomicconditions,theCompanypreparesthecomparisontableofagesandexpectedcreditlossrateofotherreceivables,soastocalculateexpectedcreditloss. |
| Long-termreceivables–Portfoliogroupedwithfinanceleasepayment/Long-termreceivables–Portfoliogroupedwithreceivablesfinancingfactoringpayment/Accountsreceivable–Portfoliogroupedwithcommercialfactoringpayment | Natureofreceivables | Expectedcreditlossratesarecalculatedbasedonfive-levelclassificationofcreditassetsofnon-bankfinancialinstitutions:1.5%forpasscategory,3%forspecial-mentioncategory,30%forsubstandardcategory,60%fordoubtfulcategory,and100%forlosscategory |
| Long-termreceivables–Portfoliogroupedwithages | Natureofreceivables | Forlong-termreceivableswithinthecreditperiodthathasnotreachedthecontractualpaymentdeadline,provisionforbaddebtsisaccruedat5%ofthebalance.Forlong-termreceivablesthathaveexceededthecontractualpaymentdeadlineandhavenotyetbeenpaid,provisionforbaddebtsisaccruedbasedontheageofthebalance. |
| Contractassets–Portfoliogroupedwithwarrantyreserve | Natureofthebalance | Basedonhistoricalcreditlossexperience,thecurrentsituationandtheforecastoffutureeconomicconditions,theCompanycalculatesexpectedcreditlossthroughexposureatdefaultandlifetimeexpectedcreditlossrate. |
2.Comparisontableofagesandexpectedcreditlossrateofportfoliogroupedwithages
| Ages | Expectedcreditlossrateofaccountsreceivableofparentcompany(%) | Expectedcreditlossrateofaccountsreceivableofventilationequipmentmanufacturingindustryandenvironmentalintegratedindustry(%) | Expectedcreditlossrateofotherreceivablesofparentcompany(%) | Expectedcreditlossrateofotherreceivablesofventilationequipmentmanufacturingindustryandenvironmentalintegratedindustry(%) |
| 1-180days(inclusive,thesamehereinafter) | 0 | 5 | 0 | 5 |
| 180days-1year | 2 | 5 | 2 | 5 |
| 1-2years | 10 | 10 | 10 | 10 |
| 2-3years | 30 | 30 | 30 | 30 |
| 3-5years | 50 | 50 | 50 | 50 |
| Over5years | 80 | 100 | 80 | 100 |
Agesofaccountsreceivable,otherreceivablesandlong-termreceivablesarecalculatedfromthemonthwhensuchreceivablesareaccrued.
3.RecognitioncriteriaforreceivablesandcontractassetswithexpectedcreditlossesmeasuredonanindividualbasisForreceivablesandcontractassetswhosecreditriskissignificantlydifferentfromthatofportfolios,theCompanyaccruesexpectedcreditlossesonanindividualbasis.(XIII)Inventories
1.ClassificationofinventoriesInventoriesincludefinishedgoodsorgoodsheldforsaleintheordinarycourseofbusiness,workinprocessintheprocessofproduction,materials,supplies,etc.tobeconsumedintheproductionprocessorintherenderingofservices.
2.AccountingmethodfordispatchedinventoriesInventoriesdispatchedfromstorageareaccountedforwithweightedaveragemethod.
3.InventorysystemPerpetualinventorymethodisadopted.
4.Amortizationmethodoflow-valueconsumablesandpackages
(1)Low-valueconsumablesLow-valueconsumablesareamortizedwithone-offmethod.
(2)PackagesPackagesareamortizedwithone-offmethod.
5.Provisionforinventorywrite-downRecognitioncriteriaandaccrualmethodofprovisionforinventorywrite-down
Atthebalancesheetdate,inventoriesaremeasuredatthelowerofcostandnetrealizablevalue;provisionsforinventorywrite-downaremadeontheexcessofitscostoverthenetrealizablevalue.Thenetrealizablevalueofinventoriesheldforsaleisdeterminedbasedontheamountoftheestimatedsellingpricelesstheestimatedsellingexpensesandrelevanttaxesandsurchargesintheordinarycourseofbusiness;thenetrealizablevalueofinventoriestobeprocessedisdeterminedbasedontheamountoftheestimatedsellingpricelesstheestimatedcostsofcompletion,sellingexpensesandrelevanttaxesandsurchargesintheordinarycourseofbusiness;atthebalancesheetdate,whenonlypartofthesameitemofinventorieshaveagreedprice,theirnetrealizablevaluearedeterminedseparatelyandarecomparedwiththeircoststosettheprovisionforinventorywrite-downtobemadeorreversed.(XIV)Non-currentassetsordisposalgroupsheldforsale,discontinuedoperations
1.Classificationofnon-currentassetsordisposalgroupsheldforsaleNon-currentassetsordisposalgroupsareaccountedforasheldforsalewhenthefollowingconditionsareallmet:
(1)theassetmustbeavailableforimmediatesaleinitspresentconditionsubjecttotermsthatareusualandcustomaryforsalesofsuchassetsordisposalgroups;(2)itssalesmustbehighlyprobable,i.e.,theCompanyhasmadeadecisiononthesaleplanandhasobtainedafirmpurchasecommitment,andthesaleisexpectedtobecompletedwithinoneyear.WhentheCompanyacquiresanon-currentassetordisposalgroupwithaviewtoresale,itshallclassifythenon-currentassetordisposalgroupasheldforsaleattheacquisitiondateonlyiftherequirementof“expectedtobecompletedwithinoneyear”ismetatthatdateanditishighlyprobablethatothercriteriaforheldforsalewillbemetwithinashortperiod(usuallywithinthreemonths).AnassetoradisposalgroupisstillaccountedforasheldforsalewhentheCompanyremainscommittedtoitsplantoselltheassetordisposalgroupinthecircumstancethatnon-relatedpartytransactionsfailtobecompletedwithinoneyearduetooneofthefollowingreasons:(1)abuyerorothersunexpectedlysetconditionsthatwillextendthesaleperiod,whiletheCompanyhastakentimelyactionstorespondtotheconditionsandexpectsafavorableresolutionofthedelayingfactorswithinoneyearsincethesetting;(2)anon-currentassetordisposalgroupclassifiedasheldforsalefailstobesoldwithinoneyearduetorarecases,andtheCompanyhastakenactionnecessarytorespondtothecircumstancesduringtheinitialone-yearperiodandthecriteriaforheldforsalearemet.
2.Accountingtreatmentsofnon-currentassetsordisposalgroupsheldforsale
(1)InitialmeasurementandsubsequentmeasurementForinitialmeasurementandsubsequentmeasurementasatthebalancesheetdateofanon-currentassetordisposalgroupheldforsale,wherethecarryingamountishigherthanthefairvaluelesscoststosell,thecarryingamountiswrittendowntothefairvaluelesscoststosell,andthewrite-downisrecognizedinprofitorlossasassetsimpairmentloss,meanwhile,provisionforimpairmentofassetsheldforsaleshallbemade.Foranon-currentassetordisposalgroupclassifiedasheldforsaleattheacquisitiondate,theassetordisposalgroupismeasuredoninitialrecognitionatthelowerofitsinitialmeasurementamounthaditnotbeensoclassifiedandfairvaluelesscoststosell.Apartfromthenon-currentassetordisposalgroupacquiredthroughbusiness
combination,thedifferencearisingfromtheinitialrecognitionofanon-currentassetordisposalgroupatthefairvaluelesscoststosellshallbeincludedintoprofitorloss.Theassetsimpairmentlossrecognizedforadisposalgroupheldforsaleshallreducethecarryingamountofgoodwillinthedisposalgroupfirst,andthenreduceitscarryingamountbasedontheproportionofeachnon-currentasset’scarryingamountinthedisposalgroup.Noprovisionfordepreciationoramortizationshallbemadeonnon-currentassetsheldforsaleornon-currentassetsindisposalgroupsheldforsale,whileinterestandotherexpensesattributabletotheliabilitiesofadisposalgroupheldforsaleshallcontinuetoberecognized.
(2)ReversalofassetsimpairmentlossWhenthereisasubsequentincreaseinfairvaluelesscoststosellofanon-currentassetheldforsaleatthebalancesheetdate,thewrite-downshallberecovered,andshallbereversednotinexcessoftheimpairmentlossthathasbeenrecognizedafterthenon-currentassetwasclassifiedasheldforsale.Thereversalshallbeincludedintoprofitorloss.Assetsimpairmentlossthathasbeenrecognizedbeforetheclassificationisnotreversed.Whenthereisasubsequentincreaseinfairvaluelesscoststosellofadisposalgroupheldforsaleatthebalancesheetdate,thewrite-downshallberecovered,andshallbereversednotinexcessofthenon-currentassetsimpairmentlossthathasbeenrecognizedafterthedisposalgroupwasclassifiedasheldforsale.Thereversalshallbeincludedintoprofitorloss.Thereducedcarryingamountofgoodwillandnon-currentassetsimpairmentlossthathasbeenrecognizedbeforetheclassificationisnotreversed.Forthesubsequentreversaloftheimpairmentlossthathasbeenrecognizedinadisposalgroupheldforsale,thecarryingamountisincreasedbasedontheproportionofcarryingamountofeachnon-currentasset(excludinggoodwill)inthedisposalgroup.
(3)Non-currentassetordisposalgroupthatisnolongerclassifiedasheldforsaleandderecognizedAnon-currentassetordisposalgroupthatdoesnotmeetcriteriaforheldforsaleandnolongerclassifiedasheldforsale,oranon-currentassetthatremovedfromadisposalgroupheldforsaleshallbemeasuredatthelowerof:1)itscarryingamountbeforeitwasclassifiedasheldforsale,adjustedforanydepreciation,amortizationorimpairmentthatwouldhavebeenrecognizedhaditnotbeenclassifiedasheldforsale;and2)itsrecoverableamount.Whenanon-currentassetordisposalgroupclassifiedasheldforsaleisderecognized,unrecognizedgainsorlossesshallbeincludedintoprofitorloss.
3.RecognitioncriteriaofdiscontinuedoperationsAcomponentoftheCompanythathasbeendisposedof,orisclassifiedasheldforsaleandcanbeclearlydistinguishedisrecognizedasadiscontinuedoperationwhenitfulfillsanyofthefollowingconditions:
(1)itrepresentsaseparatemajorlineofbusinessoraseparategeographicalareaofoperations;
(2)itispartofarelatedplantodisposeofaseparatemajorlineofbusinessoraseparategeographicalareaof
operations;or
(3)itisasubsidiaryacquiredexclusivelywithareviewtoresale.
4.PresentationmethodofdiscontinuedoperationsTheCompanypresentsgainsorlossesfromcontinuingoperationsandgainsorlossesfromdiscontinuedoperationsseparatelyintheincomestatement.Operatinggainsorlossesincludingimpairmentlossofdiscontinuedoperationsanditsreversalamount,andgainsorlossesondisposalarepresentedasgainsorlossesfromdiscontinuedoperations.Fordiscontinuedoperationspresentedinthecurrentperiod,theinformationpreviouslypresentedasgainsorlossesfromcontinuingoperationsisreclassifiedasgainsorlossesfromdiscontinuedoperationsforthecomparativeperiodinthecurrentfinancialstatements.Fordiscontinuedoperationsthatnolongermeetcriteriaforheldforsale,theinformationpreviouslypresentedasgainsorlossesfromdiscontinuedoperationsisreclassifiedasgainsorlossesfromcontinuingoperationsforthecomparativeperiodinthecurrentfinancialstatements.(XV)Long-termequityinvestments
1.JudgmentofjointcontrolandsignificantinfluenceJointcontrolisthecontractuallyagreedsharingofcontrolofanarrangement,whichexistsonlywhendecisionsabouttherelevantactivitiesrequiretheunanimousconsentofthepartiessharingcontrol.Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsoftheinvesteebutisnotcontrolorjointcontrolofthesepolicies.
2.Determinationofinvestmentcost
(1)Forbusinesscombinationundercommoncontrol,iftheconsiderationofthecombiningpartyisthatitmakespaymentincash,transfersnon-cashassets,assumesitsliabilitiesorissuesequitysecurities,onthedateofcombination,itregardstheshareofthecarryingamountoftheequityofthecombinedpartyincludedintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyastheinitialcostoftheinvestment.Thedifferencebetweentheinitialcostofthelong-termequityinvestmentsandthecarryingamountofthecombinationconsiderationpaidortheparvalueofsharesissuedoffsetscapitalreserve;ifthebalanceofcapitalreserveisinsufficienttooffset,anyexcessisadjustedtoretainedearnings.Whenlong-termequityinvestmentsareobtainedthroughbusinesscombinationundercommoncontrolachievedinstages,theCompanydetermineswhetheritisa“bundledtransaction”.Ifitisa“bundledtransaction”,stagesasawholeareconsideredasonetransactioninaccountingtreatment.Ifitisnota“bundledtransaction”,onthedateofcombination,investmentcostisinitiallyrecognizedattheshareofthecarryingamountofnetassetsofthecombinedpartyincludedtheconsolidatedfinancialstatementsoftheultimatecontrollingparty.Thedifferencebetweentheinitialinvestmentcostoflong-termequityinvestmentsattheacquisitiondateandthecarryingamountofthepreviouslyheldlong-termequityinvestmentsplusthecarryingamountoftheconsiderationpaidforthenewlyacquiredequityisadjustedtocapitalreserve;ifthebalanceofcapitalreserveisinsufficienttooffset,anyexcessisadjustedtoretainedearnings.
(2)Forbusinesscombinationnotundercommoncontrol,investmentcostisinitiallyrecognizedattheacquisition-datefairvalueofconsiderationspaid.
Whenlong-termequityinvestmentsareobtainedthroughbusinesscombinationnotundercommoncontrolachievedinstages,theCompanydeterminedwhethertheyarestand-alonefinancialstatementsorconsolidatedfinancialstatementsinaccountingtreatment:
1)Inthecaseofstand-alonefinancialstatements,investmentcostisinitiallyrecognizedatthecarryingamountofthepreviouslyheldlong-termequityinvestmentsplusthecarryingamountoftheconsiderationpaidforthenewlyacquiredequity.
2)Inthecaseofconsolidatedfinancialstatements,theCompanydetermineswhetheritisa“bundledtransaction”.Ifitisa“bundledtransaction”,stagesasawholeareconsideredasonetransactioninaccountingtreatment.Ifitisnota“bundledtransaction”,thecarryingamountoftheacquirer’spreviouslyheldequityinterestintheacquireeisremeasuredattheacquisition-datefairvalue,andthedifferencebetweenthefairvalueandthecarryingamountisrecognizedininvestmentincome;whentheacquirer’spreviouslyheldequityinterestintheacquireeinvolvesothercomprehensiveincomeunderequitymethod,therelatedothercomprehensiveincomeisreclassifiedasincomefortheacquisitionperiod,excludingothercomprehensiveincomearisingfromchangesinnetliabilitiesorassetsfromremeasurementofdefinedbenefitplanoftheacquiree.
(3)Long-termequityinvestmentsobtainedthroughwaysotherthanbusinesscombination:theinitialcostofalong-termequityinvestmentobtainedbymakingpaymentincashisthepurchasecostwhichisactuallypaid;thatobtainedonthebasisofissuingequitysecuritiesisthefairvalueoftheequitysecuritiesissued;thatobtainedthroughdebtrestructuringisdeterminedaccordingto“CASBE12–DebtRestructuring”;andthatobtainedthroughnon-cashassetsexchangeisdeterminedaccordingto“CASBE7–Non-cashAssetsExchange”.
3.SubsequentmeasurementandrecognitionmethodofprofitorlossForalong-termequityinvestmentwithcontrolrelationship,itisaccountedforwithcostmethod;foralong-termequityinvestmentwithjointcontrolorsignificantinfluencerelationship,itisaccountedforwithequitymethod.
4.DisposalofasubsidiaryinstagesresultingintheCompany’slossofcontrol
(1)Judgementprinciplesof“bundledtransaction”FordisposalofasubsidiaryinstagesresultingintheCompany’slossofcontrol,theCompanydetermineswhetheritisa“bundledtransaction”basedontheagreementtermsforeachstage,disposalconsiderationobtainedseparately,objectoftheequitysold,disposalmethod,disposaltimepoint,etc.Iftheterms,conditionsandeconomiceffectofeachtransactionmeetoneormoreofthefollowingconditions,thesetransactionsareusuallyconsideredasa“bundledtransaction”:
1)thesetransactionsareenteredintoatthesametimeorincontemplationofeachother;
2)thesetransactionsformasingletransactiondesignedtoachieveanoverallcommercialeffect;
3)theoccurrenceofonetransactionisdependentontheoccurrenceofatleastoneothertransaction;and
4)onetransactionconsideredonitsownisnoteconomicallyjustified,butitiseconomicallyjustifiedwhenconsideredtogetherwithothertransactions.
(2)Accountingtreatmentsofnon-bundledtransactions
1)Stand-alonefinancialstatementsThedifferencebetweenthecarryingamountofthedisposedequityandtheconsiderationobtainedthereofisrecognizedinprofitorloss.IfthedisposaldoesnotresultintheCompany’slossofsignificantinfluenceorjointcontrol,theremainedequityisaccountedforwithequitymethod;however,ifthedisposalresultsintheCompany’slossofcontrol,jointcontrol,orsignificantinfluence,theremainedequityisaccountedforaccordingto“CASBE22–FinancialInstruments:RecognitionandMeasurement”.
2)ConsolidatedfinancialstatementsBeforetheCompany’slossofcontrol,thedifferencebetweenthedisposalconsiderationandtheproportionateshareofnetassetsinthedisposedsubsidiaryfromacquisitiondateorcombinationdatetothedisposaldateisadjustedtocapitalreserve(capitalpremium),ifthebalanceofcapitalreserveisinsufficienttooffset,anyexcessisadjustedtoretainedearnings.WhentheCompanylosescontrol,theremainedequityisremeasuredattheloss-of-control-datefairvalue.Theaggregatedvalueofdisposalconsiderationandthefairvalueoftheremainedequity,lesstheshareofnetassetsinthedisposedsubsidiaryheldbeforethedisposalfromtheacquisitiondateorcombinationdatetothedisposaldateisrecognizedininvestmentincomeintheperiodwhentheCompanylosescontroloversuchsubsidiary,andmeanwhilegoodwillisoffsetcorrespondingly.OthercomprehensiveincomerelatedtoequityinvestmentsinformersubsidiaryisreclassifiedasinvestmentincomeupontheCompany’slossofcontrol.
(3)Accountingtreatmentofbundledtransaction
1)Stand-alonefinancialstatementsStagesasawholeareconsideredasonetransactionresultinginlossofcontrolinaccountingtreatment.However,beforetheCompanylosescontroloverasubsidiary,thedifferencebetweenthedisposalconsiderationateachstageandthecarryingamountoflong-termequityinvestmentscorrespondingtothedisposedinvestmentsisrecognizedasothercomprehensiveincomeatthestand-alonefinancialstatementsandreclassifiedasprofitorlossintheperiodwhentheCompanylosescontroloversuchsubsidiary.
2)ConsolidatedfinancialstatementsStagesasawholeareconsideredasonetransactionresultinginlossofcontrolinaccountingtreatment.However,beforetheCompanylosescontroloverasubsidiary,thedifferencebetweenthedisposalconsiderationateachstageandtheproportionateshareofnetassetsinthedisposedsubsidiaryisrecognizedasothercomprehensiveincomeattheconsolidatedfinancialstatementsandreclassifiedasprofitorlossintheperiodwhentheCompanylosescontroloversuchsubsidiary.(XVI)Investmentproperty
1.Investmentpropertyincludeslanduserightofleased-outpropertyandofpropertyheldforcapitalappreciationandbuildingsthathavebeenleasedout.
2.Theinitialmeasurementofinvestmentpropertyisbasedonitscost,andsubsequentmeasurementismadeusingthecostmodel,thedepreciationoramortizationmethodisthesameasthatoffixedassetsandintangibleassets.
(XVII)Fixedassets
1.RecognitionprinciplesoffixedassetsFixedassetsaretangibleassetsheldforuseintheproductionofgoodsorrenderingofservices,forrentaltoothers,orforadministrativepurposes,andexpectedtobeusedduringmorethanoneaccountingyear.Fixedassetsarerecognizedif,andonlyif,itisprobablethatfutureeconomicbenefitsassociatedwiththeassetswillflowtotheCompanyandthecostoftheassetscanbemeasuredreliably.
2.Depreciationmethodofdifferentcategoriesoffixedassets
| Categories | Depreciationmethod | Usefullife(years) | Residualvalueproportion(%) | Annualdepreciationrate(%) |
| Buildingsandstructures | Straight-linemethod | 3-50 | 3.00-5.00 | 2.71-32.33 |
| Generalequipment | Straight-linemethod | 3-5 | 3.00-5.00 | 19.00-32.33 |
| Specialequipment | Straight-linemethod | 2-15 | 0.00-5.00 | 6.33-50.00 |
| Transportfacilities | Straight-linemethod | 3-15 | 3.00-5.00 | 6.33-32.33 |
| Otherequipment | Straight-linemethod | 3-10 | 5.00 | 9.50-31.67 |
(XVIII)Constructioninprogress
1.Constructioninprogressisrecognizedif,andonlyif,itisprobablethatfutureeconomicbenefitsassociatedwiththeitemwillflowtotheCompany,andthecostoftheitemcanbemeasuredreliably.Constructioninprogressismeasuredattheactualcostincurredtoreachitsdesignedusableconditions.
2.Constructioninprogressistransferredintofixedassetsatitsactualcostwhenitreachesthedesignedusableconditions.Whentheauditingoftheconstructioninprogressisnotfinishedwhilereachingthedesignedusableconditions,itistransferredtofixedassetsusingestimatedvaluefirst,andthenadjustedaccordinglywhentheactualcostissettled,buttheaccumulateddepreciationisnottobeadjustedretrospectively.
| Categories | Standardsandtimepointoftransferringconstructioninprogresstofixedassets |
| Machinery | Whenthedesignrequirementsoracceptancecriteriaforuseasspecifiedinthecontractaremetafterinstallationandcommissioning |
| Engineeringconstruction | Whenthecompletionacceptanceisfinishedandreachingthedesignedusableconditions |
(XIX)Borrowingcosts
1.RecognitionprincipleofborrowingcostscapitalizationWheretheborrowingcostsincurredtotheCompanycanbedirectlyattributabletotheacquisitionandconstructionorproductionofassetseligibleforcapitalization,itiscapitalizedandincludedinthecostsofrelevantassets;otherborrowingcostsarerecognizedasexpensesonthebasisoftheactualamountincurred,andareincludedinprofitorloss.
2.Borrowingcostscapitalizationperiod
(1)Theborrowingcostsarenotcapitalizedunlessthefollowingrequirementsareallmet:1)theassetdisbursementshavealreadyincurred;2)theborrowingcostshavealreadyincurred;and3)theacquisitionand
constructionorproductionactivitieswhicharenecessarytopreparetheassetforitsintendeduseorsalehavealreadystarted.
(2)Suspensionofcapitalization:wheretheacquisitionandconstructionorproductionofaqualifiedassetisinterruptedabnormallyandtheinterruptionperiodlastsformorethan3months,thecapitalizationoftheborrowingcostsissuspended;theborrowingcostsincurredduringsuchperiodarerecognizedasexpenses,andareincludedinprofitorloss,tilltheacquisitionandconstructionorproductionoftheassetrestarts.
(3)Ceasingofcapitalization:whenthequalifiedassetunderacquisitionandconstructionorproductionisreadyfortheintendeduseorsale,thecapitalizationoftheborrowingcostsisceased.
3.CapitalizationrateandcapitalizedamountofborrowingcostsForborrowingsexclusivelyfortheacquisitionandconstructionorproductionofassetseligibleforcapitalization,theto-be-capitalizedamountofinterestsisdeterminedinlightoftheactualinterestexpensesincurred(includingamortizationofpremiumordiscountbasedoneffectiveinterestmethod)ofthespecialborrowingsinthecurrentperiodlesstheinterestincomeontheunusedborrowingsasadepositinthebankorasatemporaryinvestment;whereageneralborrowingisusedfortheacquisitionandconstructionorproductionofassetseligibleforcapitalization,theCompanycalculatesanddeterminestheto-be-capitalizedamountofinterestsonthegeneralborrowingbymultiplyingtheweightedaverageassetdisbursementoftheexcessoftheaccumulativecapitaldisbursementsoverthespecialborrowingsbythecapitalizationrateofthegeneralborrowingused.(XX)Intangibleassets
1.Intangibleassetsincludelanduseright,patentright,non-patentedtechnology,etc.Theinitialmeasurementofintangibleassetsisbasedonitscost.
2.Forintangibleassetswithfiniteusefullives,theiramortizationamountsareamortizedwithintheirusefullivessystematicallyandreasonably,ifitisunabletodeterminetheexpectedrealizationpatternreliably,intangibleassetsareamortizedbythestraight-linemethodwithdetailsasfollows:
| Items | Usefullifeanddeterminationbasis | Amortizationmethod |
| Franchise | Contractualterm | Straight-linemethod |
| Landuseright | 35-50years;usefulliferegisteredonthelandusecertificate | Straight-linemethod |
| Patentedtechnology | 5-10years;economiclifecycle | Straight-linemethod |
| Software | 3-10years;estimatedeconomiclife | Straight-linemethod |
| Others | 5years;economiclifecycle | Straight-linemethod |
3.PermittedscopeofR&Dcosts
(1)PersonnelcostsPersonnelcostsincludewagesandsalaries,basicendowmentinsurancepremiums,basicmedicalinsurancepremiums,unemploymentinsurancepremiums,occupationalinjuriespremiums,maternitypremiumsandhousingprovidentfundsfortheCompany’sR&Dpersonnel,aswellaslaborcostsforexternalR&Dpersonnel.IfR&DpersonnelserveformultipleR&Dprojectsatthesametime,personnelcostsarerecognizedbasedontheir
workinghourrecordsprovidedbytheCompany’sadministrativedepartment,andproportionatelyallocatedamongdifferentR&Dprojects.IfpersonneldirectlyengagedinR&DactivitiesandexternalR&Dpersonnelareengagedinnon-R&Dactivitiesatthesametime,theCompany,basedontheirworkinghourrecordsatdifferentpositions,allocatespersonnelcostsactuallyincurredbetweenR&Dexpensesandproductionandoperatingexpensesusingreasonablemethodssuchastheratioofactualworkinghours.
(2)DirectinputcostsDirectinputcostsrefertorelevantexpensesactuallyincurredbytheCompanyforR&Dactivities,whichinclude:1)materials,fuelandpowercostsdirectlyconsumedbyR&Dactivities;2)developmentandmanufacturingcostsofmoldsandcraftequipmentusedforintermediatetestsandtrialproduction,acquisitioncostsofsamples,prototypesandgeneraltestingmethodsthatdonotconstitutefixedassets,andinspectioncostsoftrialproduction;and3)operationandmaintenance,adjustment,inspection,testingandrepairingcostsofinstrumentsandequipmentusedforR&Dactivities.
(3)Depreciationandlong-termprepaymentsDepreciationreferstothedepreciationofinstruments,equipmentandin-usebuildingsusedforR&Dactivities.Forinstruments,equipmentandin-usebuildingsbothusedforR&Dactivitiesandnon-R&Dactivities,necessaryrecordsshallbekeptontheirusage,anddepreciationactuallyincurredisallocatedbetweenR&Dexpensesandproductionandoperatingexpensesinareasonablemannerbasedontheactualworkinghours,theusablearea,etc.Long-termprepaymentsrefertothoseincurredduringrenovation,modification,decorationandrepairingofR&Dfacilities,whicharecollectedbasedonactualamountandamortizedevenlyoveraspecifiedperiod.
(4)AmortizationofintangibleassetsAmortizationofintangibleassetsrefertotheamortizationofsoftware,intellectualproperty,andnon-patentedtechnology(proprietarytechnology,licenses,designandcalculationmethods,etc.)usedforR&Dactivities.
(5)DesignexpensesDesignexpensesrefertoexpensesincurredfortheconception,developmentandmanufacturingofnewproductsandtechniques,designofprocesses,technicalspecifications,processspecificationformulation,operationalcharacteristics,etc.,includingexpensesincurredforcreativedesignactivitiestoobtaininnovative,creativeandbreakthroughproducts.
(6)EquipmentcommissioningandtestingexpensesEquipmentcommissioningexpensesrefertoexpensesincurredforR&Dactivitiesduringtoolingpreparation,includingexpensesincurredforactivitiessuchasdevelopmentofspecialandspecializedproductionmachines,changesinproductionandqualitycontrolprocedures,developmentofnewmethodsandstandards,etc.Expensesincurredforroutinetoolingpreparationandindustrialengineeringforthepurposeoflarge-scale/massandcommercialproductionarenotincludedinthepermittedscope.
Testingexpensesincludeclinicaltrialfeesfornewdrugdevelopment,on-sitetestingfeesforexplorationandproductiontechnologies,fieldtestingfees,etc.
(7)R&DoutsourcingexpensesR&DoutsourcingexpensesrefertoexpensesincurredforR&Dactivitiesoutsourcedtootherdomesticorforeignorganizationsorindividuals(outcomesofR&DactivitiesareownedbytheCompanyandcloselyrelatedtotheCompany’smainbusinessoperations).
(8)OtherexpensesOtherexpensesrefertoexpensesotherthanthosementionedabovethataredirectlyrelatedtoR&Dactivities,includingtechnicalbooksandmaterialsfees,datatranslationfees,expertconsultationfees,high-techR&Dinsurancepremiums,R&Doutcomessearch,demonstration,evaluation,appraisalandacceptancefees,intellectualpropertyapplication,registrationandagencyfees,conferencefees,businesstravellingfees,communicationfees,etc.
4.Expendituresontheresearchphaseofaninternalprojectarerecognizedasprofitorlosswhentheyareincurred.AnintangibleassetarisingfromthedevelopmentphaseofaninternalprojectisrecognizediftheCompanycandemonstrateallofthefollowings:(1)thetechnicalfeasibilityofcompletingtheintangibleassetsothatitwillbeavailableforuseorsale;(2)itsintentiontocompletetheintangibleassetanduseorsellit;(3)howtheintangibleassetwillgenerateprobablefutureeconomicbenefits,amongotherthings,theCompanycandemonstratetheexistenceofamarketfortheoutputoftheintangibleassetortheintangibleassetitselfor,ifitistobeusedinternally,theusefulnessoftheintangibleasset;(4)theavailabilityofadequatetechnical,financialandotherresourcestocompletethedevelopmentandtouseorselltheintangibleasset;and(5)itsabilitytomeasurereliablytheexpenditureattributabletotheintangibleassetduringitsdevelopment.
5.Criteriafordistinguishingtheresearchphasefromthedevelopmentphaseofaninternalprojecttocreateanintangibleasset:
Theplannedinvestigationphaseforacquiringnewtechnologyandknowledgeshouldbedefinedastheresearchphase,whichhasthecharacteristicsofplanningandexploratorynature;beforecommercialproductionoruse,whentheresearchresultsorotherknowledgeareappliedtoacertainplanordesignwiththeintentiontoproduceneworsubstantiallyimprovedmaterials,devices,products,etc.,suchstageshouldbedeterminedasthedevelopmentphase,whichhasthecharacteristicsofpertinenceandgreaterpossibilityofformingresults.TheCompanydividestheresearchanddevelopmentphasesbyformingtheprototypedrawingandstartingtheprototypetrialproduction.Expendituresintheresearchphaseofinternalresearchanddevelopmentprojectsareincludedinprofitorlosswhentheyincur.WhentheCompanyentersthedevelopmentphase,projectexpendituresarefirstcalculatedbyprojectsunder“developmentexpenditure”,andifthecapitalizationconditionsaremet,theyarepresentedasdevelopmentexpendituresinthefinancialstatements.Theprojectwillbetransferredtointangibleassetswhentheprojecthastheconditionsforsaleormassproduction.(XXI)Impairmentofpartoflong-termassetsForlong-termassetssuchaslong-termequityinvestments,investmentpropertyatcostmodel,fixedassets,
constructioninprogress,right-of-useassets,intangibleassetswithfiniteusefullives,etc.,ifatthebalancesheetdatethereisindicationofimpairment,therecoverableamountistobeestimated.Forgoodwillrecognizedinbusinesscombinationandintangibleassetswithindefiniteusefullives,nomatterwhetherthereisindicationofimpairment,impairmenttestisperformedannually.Impairmenttestongoodwillisperformedonrelatedassetgrouporassetgroupportfolio.Whentherecoverableamountofsuchlong-termassetsislowerthantheircarryingamount,thedifferenceisrecognizedasprovisionforassetsimpairmentthroughprofitorloss.(XXII)Long-termprepaymentsLong-termprepaymentsareexpensesthathavebeenrecognizedbutwithamortizationperiodoveroneyear(excludingoneyear).Theyarerecordedwithactualcost,andevenlyamortizedwithinthebeneficiaryperiodorstipulatedperiod.Ifitemsoflong-termprepaymentsfailtobebeneficialtothefollowingaccountingperiods,residualvaluesofsuchitemsareincludedinprofitorloss.(XXIII)Employeebenefits
1.Employeebenefitsincludeshort-termemployeebenefits,post-employmentbenefits,terminationbenefitsandotherlong-termemployeebenefits.
2.Short-termemployeebenefitsTheCompanyrecognizes,intheaccountingperiodinwhichanemployeeprovidesservice,short-termemployeebenefitsactuallyincurredasliabilities,withacorrespondingchargetoprofitorlossorthecostofarelevantasset.
3.Post-employmentbenefitsTheCompanyclassifiespost-employmentbenefitplansaseitherdefinedcontributionplansordefinedbenefitplans.
(1)TheCompanyrecognizesintheaccountingperiodinwhichanemployeeprovidesservicethecontributionpayabletoadefinedcontributionplanasaliability,withacorrespondingchargetoprofitorlossorthecostofarelevantasset.
(2)AccountingtreatmentbytheCompanyfordefinedbenefitplanusuallyinvolvesthefollowingsteps:
1)Inaccordancewiththeprojectedunitcreditmethod,usingunbiasedandmutuallycompatibleactuarialassumptionstoestimaterelateddemographicvariablesandfinancialvariables,measuretheobligationsunderthedefinedbenefitplan,anddeterminetheperiodstowhichtheobligationsareattributed.Meanwhile,theCompanydiscountsobligationsunderthedefinedbenefitplantodeterminethepresentvalueofthedefinedbenefitplanobligationsandthecurrentservicecost;
2)Whenadefinedbenefitplanhasassets,theCompanyrecognizesthedeficitorsurplusbydeductingthefairvalueofdefinedbenefitplanassetsfromthepresentvalueofthedefinedbenefitplanobligationasanetdefinedbenefitplanliabilityornetdefinedbenefitplanasset.Whenadefinedbenefitplanhasasurplus,theCompanymeasuresthenetdefinedbenefitplanassetatthelowerofthesurplusinthedefinedbenefitplanandtheassetceiling;
3)Attheendoftheperiod,theCompanyrecognizesthefollowingcomponentsofemployeebenefitscostarisingfromdefinedbenefitplan:a.servicecost;b.netinterestonthenetdefinedbenefitplanliability(asset);andc.changesasaresultofremeasurementofthenetdefinedbenefitliability(asset).Itemaanditembarerecognizedinprofitorlossorthecostofarelevantasset.Itemcisrecognizedinothercomprehensiveincomeandisnottobereclassifiedsubsequentlytoprofitorloss.However,theCompanymaytransferthoseamountsrecognizedinothercomprehensiveincomewithinequity.
4.TerminationbenefitsTerminationbenefitsprovidedtoemployeesarerecognizedasanemployeebenefitliabilityforterminationbenefits,withacorrespondingchargetoprofitorlossattheearlierofthefollowingdates:(1)whentheCompanycannotunilaterallywithdrawtheofferofterminationbenefitsbecauseofanemploymentterminationplanoracurtailmentproposal;or(2)whentheCompanyrecognizescostorexpensesrelatedtoarestructuringthatinvolvesthepaymentofterminationbenefits.
5.Otherlong-termemployeebenefitsWhenotherlong-termemployeebenefitsprovidedtotheemployeessatisfiedtheconditionsforclassifyingasadefinedcontributionplan,thosebenefitsareaccountedforinaccordancewiththerequirementsrelatingtodefinedcontributionplan,whileotherbenefitsareaccountedforinaccordancewiththerequirementsrelatingtodefinedbenefitplan.TheCompanyrecognizesthecostofemployeebenefitsarisingfromotherlong-termemployeebenefitsasthefollowings:(1)servicecost;(2)netinterestonthenetliabilityornetassetsofotherlong-termemployeebenefits;and(3)changesasaresultofremeasurementofthenetliabilityornetassetsofotherlong-termemployeebenefits.Asapracticalexpedient,thenettotaloftheaforesaidamountsisrecognizedinprofitorlossorincludedinthecostofarelevantasset.(XXIV)Provisions
1.Provisionsarerecognizedwhenfulfillingthepresentobligationsarisingfromcontingenciessuchasprovidingguaranteeforotherparties,litigation,productsqualityguarantee,onerouscontract,etc.,maycausetheoutflowoftheeconomicbenefitandsuchobligationscanbereliablymeasured.
2.Theinitialmeasurementofprovisionsisbasedonthebestestimatedexpendituresrequiredinfulfillingthepresentobligations,anditscarryingamountisreviewedatthebalancesheetdate.(XXV)Share-basedpayment
1.Typesofshare-basedpaymentShare-basedpaymentconsistsofequity-settledshare-basedpaymentandcash-settledshare-basedpayment.
2.Accountingtreatmentforsettlements,modificationsandcancellationsofshare-basedpaymentplans
(1)Equity-settledshare-basedpaymentForequity-settledshare-basedpaymenttransactionwithemployees,iftheequityinstrumentsgrantedvestimmediately,thefairvalueofthoseequityinstrumentsismeasuredatgrantdateandrecognizedastransactioncostorexpense,withacorrespondingadjustmentincapitalreserve;iftheequityinstrumentsgranteddonotvestuntilthecounterpartycompletesaspecifiedperiodofserviceorfulfillscertainperformanceconditions,atthebalance
sheetdatewithinthevestingperiod,thefairvalueofthoseequityinstrumentsmeasuredatgrantdatebasedonthebestestimateofthenumberofequityinstrumentsexpectedtovestisrecognizedastransactioncostorexpense,withacorrespondingadjustmentincapitalreserve.Forequity-settledshare-basedpaymenttransactionwithpartiesotherthanemployees,ifthefairvalueoftheservicesreceivedcanbemeasuredreliably,thefairvalueismeasuredatthedatetheCompanyreceivestheservice;ifthefairvalueoftheservicesreceivedcannotbemeasuredreliably,butthatofequityinstrumentscanbemeasuredreliably,thefairvalueoftheequityinstrumentsgrantedmeasuredatthedatetheCompanyreceivestheserviceisreferredto,andrecognizedastransactioncostorexpense,withacorrespondingincreaseinequity.
(2)Cash-settledshare-basedpaymentForcash-settledshare-basedpaymenttransactionswithemployees,ifshareappreciationrightsvestimmediately,thefairvalueoftheliabilityincurredastheacquisitionofservicesismeasuredatgrantdateandrecognizedastransactioncostorexpense,withacorrespondingincreaseinliabilities;ifshareappreciationrightsdonotvestuntiltheemployeeshavecompletedaspecifiedperiodofserviceorfulfillscertainperformanceconditions,theliabilityismeasured,ateachbalancesheetdateuntilsettled,atthefairvalueoftheshareappreciationrightsmeasuredatgrantdatebasedonthebestestimateofthenumberofshareappreciationrightexpectedtovest.
(3)Modificationsandcancellationsofshare-basedpaymentplanIfthemodificationincreasesthefairvalueoftheequityinstrumentsgranted,theCompanyincludestheincrementalfairvaluegrantedinthemeasurementoftheamountrecognizedforservicesreceivedasconsiderationfortheequityinstrumentsgranted;similarly,ifthemodificationincreasesthenumberofequityinstrumentsgranted,theCompanyincludesthefairvalueoftheadditionalequityinstrumentsgranted,inthemeasurementoftheamountrecognizedforservicesreceivedasconsiderationfortheequityinstrumentsgranted;iftheCompanymodifiesthevestingconditionsinamannerthatisbeneficialtotheemployee,theCompanytakesthemodifiedvestingconditionsintoaccount.Ifthemodificationreducesthefairvalueoftheequityinstrumentsgranted,theCompanydoesnottakeintoaccountthatdecreaseinfairvalueandcontinuetomeasuretheamountrecognizedforservicesreceivedasconsiderationfortheequityinstrumentsbasedonthegrantdatefairvalueoftheequityinstrumentsgranted;ifthemodificationreducesthenumberofequityinstrumentsgrantedtoanemployee,thatreductionisaccountedforasacancellationofthatportionofthegrant;iftheCompanymodifiesthevestingconditionsinamannerthatisnotbeneficialtotheemployee,theCompanydoesnottakethemodifiedvestingconditionsintoaccount.IftheCompanycancelsorsettlesagrantofequityinstrumentsduringthevestingperiod(otherthanthatcancelledwhenthevestingconditionsarenotsatisfied),theCompanyaccountsforthecancellationorsettlementasanaccelerationofvesting,andthereforerecognizesimmediatelytheamountthatotherwisewouldhavebeenrecognizedforservicesreceivedovertheremainderofthevestingperiod.(XXVI)OtherfinancialinstrumentssuchaspreferredsharesandperpetualbondsPursuanttoCASBEsonfinancialinstrumentsand“RegulationsonAccountingTreatmentsofPerpetualBonds”(CaiKuai[2019]No.2)issuedbytheMinistryofFinance,forfinancialinstrumentssuchasconvertiblebondsetc.,
theCompanyclassifiesafinancialinstrumentoritscomponentsatinitialrecognitionasafinancialassetorliabilityorequityinstrument,basedoncontracttermsandeconomicessenceitrevealsinsteadofitslegalform,combiningwiththedefinitionsoffinancialasset,liabilityandequityinstrument.Atthebalancesheetdate,forafinancialinstrumentclassifiedasanequityinstrument,itsinterestexpenditureordividenddistributionistreatedasprofitdistribution,andsharerepurchaseandcancelationaretreatedaschangesinequity;forafinancialinstrumentclassifiedasafinancialliability,itsinterestexpenditureordividenddistributionistreatedasborrowingexpense,andgainorlossonrepurchaseorredemptionisincludedinprofitorloss.(XXVII)Revenue
1.RevenuerecognitionprinciplesAtcontractinception,theCompanyshallassessthecontractsandshallidentifyeachperformanceobligationinthecontracts,anddeterminewhethertheperformanceobligationshouldbesatisfiedovertimeoratapointintime.TheCompanysatisfiesaperformanceobligationovertimeifoneofthefollowingcriteriaismet,otherwise,theperformanceobligationissatisfiedatapointintime:(1)thecustomersimultaneouslyreceivesandconsumestheeconomicbenefitsprovidedbytheCompany’sperformanceastheCompanyperforms;(2)thecustomercancontrolgoodsastheyarecreatedbytheCompany’sperformance;(3)goodscreatedduringtheCompany’sperformancehaveirreplaceableusesandtheCompanyhasanenforceablerighttothepaymentsforperformancecompletedtodateduringthewholecontractperiod.Foreachperformanceobligationsatisfiedovertime,theCompanyshallrecognizerevenueovertimebymeasuringtheprogresstowardscompletesatisfactionofthatperformanceobligation.Inthecircumstancethattheprogresscannotbemeasuredreasonably,butthecostsincurredinsatisfyingtheperformanceobligationareexpectedtoberecovered,theCompanyshallrecognizerevenueonlytotheextentofthecostsincurreduntilitcanreasonablymeasuretheprogress.Foreachperformanceobligationsatisfiedatapointintime,theCompanyshallrecognizerevenueatthetimepointthatthecustomerobtainscontrolofrelevantgoodsorservices.Todeterminewhetherthecustomerhasobtainedcontrolofgoods,theCompanyshallconsiderthefollowingindications:(1)theCompanyhasapresentrighttopaymentsforthegoods,i.e.,thecustomerispresentlyobligedtopayforthegoods;(2)theCompanyhastransferredthelegaltitleofthegoodstothecustomer,i.e.,thecustomerhaslegaltitletothegoods;
(3)theCompanyhastransferredphysicalpossessionofthegoodstothecustomer,i.e.,thecustomerhasphysicallypossessedthegoods;(4)theCompanyhastransferredsignificantrisksandrewardsofownershipofthegoodstothecustomer,i.e.,thecustomerhasobtainedsignificantrisksandrewardsofownershipofthegoods;(5)thecustomerhasacceptedthegoods;(6)otherevidenceindicatingthecustomerhasobtainedcontroloverthegoods.
2.Revenuemeasurementprinciple
(1)Revenueismeasuredattheamountofthetransactionpricethatisallocatedtoeachperformanceobligation.ThetransactionpriceistheamountofconsiderationtowhichtheCompanyexpectstobeentitledinexchangefortransferringgoodsorservicestoacustomer,excludingamountscollectedonbehalfofthirdpartiesandthoseexpectedtoberefundedtothecustomer.
(2)Iftheconsiderationpromisedinacontractincludesavariableamount,theCompanyshallconfirmthebest
estimateofvariableconsiderationatexpectedvalueorthemostlikelyamount.However,thetransactionpricethatincludestheamountofvariableconsiderationonlytotheextentthatitishighprobablethatasignificantreversalintheamountofcumulativerevenuerecognizedwillnotoccurwhentheuncertaintyassociatedwiththevariableconsiderationissubsequentlyresolved.
(3)Inthecircumstancethatthecontractcontainsasignificantfinancingcomponent,theCompanyshalldeterminethetransactionpricebasedonthepricethatacustomerwouldhavepaidforifthecustomerhadpaidcashforobtainingcontroloverthosegoodsorservices.Thedifferencebetweenthetransactionpriceandtheamountofpromisedconsiderationisamortizedundereffectiveinterestmethodovercontractualperiod.TheeffectsofasignificantfinancingcomponentshallnotbeconsiderediftheCompanyexpects,atthecontractinception,thattheperiodbetweenwhenthecustomerobtainscontrolovergoodsorservicesandwhenthecustomerpaysconsiderationwillbeoneyearorless.
(4)Forcontractscontainingtwoormoreperformanceobligations,theCompanyshalldeterminethestand-alonesellingpriceatcontractinceptionofthedistinctgoodunderlyingeachperformanceobligationandallocatethetransactionpricetoeachperformanceobligationonarelativestand-alonesellingpricebasis.
3.RevenuerecognitionmethodTheCompanymainlysellsenvironmentalandsanitationmachinery,ventilationequipment,etc.,andengagesinsanitationoperationservice.
(1)Saleofventilationequipmentisaperformanceobligationsatisfiedatapointintime.RevenuefromdomesticsalesofproductsthatdonotrequireinstallationisrecognizedwhentheCompanyhasdeliveredgoodstothedesignatedaddressasagreedbycontractandsuchdeliveredgoodshavebeenverifiedforacceptancebycustomers,andtheCompanyhasobtaineddeliveryreceipts,andhascollectedthepaymentsorhasobtainedtherighttothepayments,andrelatedeconomicbenefitsarehighlyprobabletoflowtotheCompany.Forproductsthatneedtobeinstalled,revenueisrecognizedwhentheproductsaredeliveredandqualifiedforinstallation,commissioningandacceptance.RevenuefromoverseassalesisrecognizedwhentheCompanyhasdeclaredgoodstothecustomsbasedoncontractualagreementsandhasobtainedabilloflading,andtheCompanyhascollectedthepaymentsorhasobtainedtherighttothepayments,andrelatedeconomicbenefitsarehighlyprobabletoflowtotheCompany.
(2)Salesofenvironmentalandsanitationmachineryproductsisaperformanceobligationsatisfiedatapointintime,andrevenueisrecognizedwhencustomersreceiveandconsumetheproducts,andtheCompanyhascollectedthepaymentsorhasobtainedtherighttothepayments,andrelatedeconomicbenefitsarehighlyprobabletoflowtotheCompany.
(3)Comprehensiveenvironmentalandsanitationmanagementengineeringisaperformanceobligationsatisfiedovertime.Revenueisrecognizedbasedontheperformanceprogressaccordingtotheprojectprogressconfirmedbythesupervisor.
(4)Sanitationoperationserviceisaperformanceobligationsatisfiedovertime.Revenueisrecognizedbasedontheserviceassessmentstatementconfirmedbythelaborreceivingparty,etc.
(5)ForrevenuerecognitionmethodofPPPbusinesswithBOTmodel,etc.,pleaserefertosectionIII(XXXV)1ofnotestothefinancialstatementsfordetails.(XXVIII)CostsofobtainingacontractandcoststofulfillacontractTheCompanyrecognizesasanassettheincrementalcostsofobtainingacontractifthosecostsareexpectedtoberecovered.Thecostsofobtainingacontractshallbeincludedintoprofitorlosswhenincurrediftheamortizationperiodoftheassetisoneyearorless.Ifthecostsincurredinfulfillingacontractarenotwithinthescopeofstandardsrelatedtoinventories,fixedassetsorintangibleassets,etc.,theCompanyshallrecognizethecoststofulfillacontractasanassetifallthefollowingcriteriaaresatisfied:
1.Thecostsrelatedirectlytoacontractortoananticipatedcontract,includingdirectlabor,directmaterials,manufacturingoverheadcost(orsimilarcost),costthatareexplicitlychargeabletothecustomerunderthecontract,andothercoststhatareonlyrelatedtothecontract;
2.ThecostsenhanceresourcesoftheCompanythatwillbeusedinsatisfyingperformanceobligationsinthefuture;and
3.Thecostsareexpectedtoberecovered.Anassetrelatedtocontractcostsshallbeamortizedonasystematicbasisthatisconsistentwithrelatedgoodsorservices,withamortizationincludedintoprofitorloss.TheCompanyshallmakeprovisionforimpairmentandrecognizeanimpairmentlosstotheextentthatthecarryingamountofanassetrelatedtocontractcostsexceedstheremainingamountofconsiderationthattheCompanyexpectstoreceiveinexchangeforthegoodsorservicestowhichtheassetrelateslessthecostsexpectedtobeincurred.TheCompanyshallrecognizeareversalofanimpairmentlosspreviouslyrecognizedinprofitorlosswhentheimpairmentconditionsnolongerexistorhaveimproved.Thecarryingamountoftheassetafterthereversalshallnotexceedtheamountthatwouldhavebeendeterminedonthereversaldateifnoprovisionforimpairmenthadbeenmadepreviously.(XXIX)Contractassets,contractliabilitiesTheCompanypresentscontractassetsorcontractliabilitiesinthebalancesheetbasedontherelationshipbetweenitsperformanceobligationsandcustomers’payments.Contractassetsandcontractliabilitiesunderthesamecontractshalloffseteachotherandbepresentedonanetbasis.TheCompanypresentsanunconditionalrighttoconsideration(i.e.,onlythepassageoftimeisrequiredbeforetheconsiderationisdue)asareceivable,andpresentsarighttoconsiderationinexchangeforgoodsthatithastransferredtoacustomer(whichisconditionalonsomethingotherthanthepassageoftime)asacontractasset.TheCompanypresentsanobligationtotransfergoodstoacustomerforwhichtheCompanyhasreceivedconsideration(ortheamountisdue)fromthecustomerasacontractliability.(XXX)Governmentgrants
1.Governmentgrantsshallberecognizedif,andonlyif,thefollowingconditionsareallmet:(1)theCompanywillcomplywiththeconditionsattachingtothegrants;(2)thegrantswillbereceived.Monetarygovernmentgrantsaremeasuredattheamountreceivedorreceivable.Non-monetarygovernmentgrantsaremeasuredatfairvalue,andcanbemeasuredatnominalamountinthecircumstancethatfairvaluecannotbeassessed.
2.GovernmentgrantsrelatedtoassetsGovernmentgrantsrelatedtoassetsaregovernmentgrantswithwhichtheCompanypurchases,constructsorotherwiseacquireslong-termassetsunderrequirementsofgovernment.Inthecircumstancesthatthereisnospecificgovernmentrequirement,theCompanyshalldeterminebasedontheprimaryconditiontoacquirethegrants,andgovernmentgrantsrelatedtoassetsaregovernmentgrantswhoseprimaryconditionistoconstructorotherwiseacquirelong-termassets.Theyoffsetcarryingamountofrelevantassets,ortheyarerecognizedasdeferredincome.Ifrecognizedasdeferredincome,theyareincludedinprofitorlossonasystematicbasisovertheusefullivesoftherelevantassets.Thosemeasuredatnotionalamountaredirectlyincludedintoprofitorloss.Forassetssold,transferred,disposedordamagedwithintheusefullives,balanceofunamortizeddeferredincomeistransferredintoprofitorlossoftheperiodinwhichthedisposaloccurred.
3.GovernmentgrantsrelatedtoincomeGovernmentgrantsrelatedtoincomearegovernmentgrantsotherthanthoserelatedtoassets.Forgovernmentgrantsthatcontainbothpartsrelatedtoassetsandpartsrelatedtoincome,inwhichthosetwopartsareblurred,theyarethuscollectivelyclassifiedasgovernmentgrantsrelatedtoincome.Forgovernmentgrantsrelatedtoincomeusedforcompensatingtherelatedfuturecost,expensesorlosses,theyarerecognizedasdeferredincomeandincludedinprofitorlossorusedtooffsetrelevantcostduringtheperiodinwhichtherelevantcost,expensesorlossesarerecognized;forgovernmentgrantsrelatedtoincomeusedforcompensatingtherelatedcost,expensesorlossesincurredtotheCompany,theyaredirectlyincludedinprofitorlossorusedtooffsetrelevantcost.
4.Governmentgrantsrelatedtotheordinarycourseofbusinessshallbeincludedintootherincomeorusedtooffsetrelevantcostbasedonbusinessnature,whilethosenotrelatedtotheordinarycourseofbusinessshallbeincludedintonon-operatingrevenueorexpenditures.(XXXI)Deferredtaxassets/Deferredtaxliabilities
1.Deferredtaxassetsordeferredtaxliabilitiesarecalculatedandrecognizedbasedonthedifferencebetweenthecarryingamountandtaxbaseofassetsandliabilities(andthedifferenceofthecarryingamountandtaxbaseofitemsnotrecognizedasassetsandliabilitiesbutwiththeirtaxbasebeingabletobedeterminedaccordingtotaxlaws)andinaccordancewiththetaxrateapplicabletotheperiodduringwhichtheassetsareexpectedtoberecoveredortheliabilitiesareexpectedtobesettled.
2.Adeferredtaxassetisrecognizedtotheextentoftheamountofthetaxableincome,whichismostlikelytoobtainandwhichcanbedeductedfromthedeductibletemporarydifference.Atthebalancesheetdate,ifthereisanyexactevidenceindicatingthatitisprobablethatfuturetaxableincomewillbeavailableagainstwhichdeductibletemporarydifferencescanbeutilized,thedeferredtaxassetsunrecognizedinpriorperiodsarerecognized.
3.Atthebalancesheetdate,thecarryingamountofdeferredtaxassetsisreviewed.Thecarryingamountofadeferredtaxassetisreducedtotheextentthatitisnolongerprobablethatsufficienttaxableincomewillbeavailabletoallowthebenefitofthedeferredtaxassettobeutilized.Suchreductionissubsequentlyreversedtotheextentthatitbecomesprobablethatsufficienttaxableincomewillbeavailable.
4.Theincometaxanddeferredtaxfortheperiodaretreatedasincometaxexpensesorincomethroughprofitorloss,excludingthosearisingfromthefollowingcircumstances:(1)businesscombination;and(2)thetransactionsoritemsdirectlyrecognizedinequity.
5.Deferredtaxassetsanddeferredtaxliabilitiesshalloffseteachotherandbepresentedonanetbasiswhenthefollowingconditionsareallmet:(1)theCompanyhasthelegalrighttosettleoffcurrenttaxassetsagainstcurrenttaxliabilities;(2)thedeferredtaxassetsandthedeferredtaxliabilitiesrelatetoincometaxesleviedbythesametaxauthorityoneither:1)thesametaxableentity;or2)differenttaxableentitieswhichintendeithertosettlecurrenttaxliabilitiesandassetsonanetbasis,ortorealizetheassetsandsettletheliabilitiessimultaneously,ineachfutureperiodinwhichsignificantamountsofdeferredtaxassetsorliabilitiesareexpectedtoberecoveredorsettled.(XXXII)Leases
1.TheCompanyaslesseeAtthecommencementdate,theCompanyrecognizesaleasethathasaleasetermof12monthsorlessasashort-termlease,whichshallnotcontainapurchaseoption;theCompanyrecognizesaleaseasaleaseofalow-valueassetiftheunderlyingassetisoflowvaluewhenitisnew.IftheCompanysubleasesanasset,orexpectstosubleaseanasset,theheadleasedoesnotqualifyasaleaseofalow-valueasset.Forallshort-termleasesandleasesoflow-valueassets,leasepaymentsarerecognizedascostorprofitorlosswithstraight-linemethodovertheleaseterm.Apartfromtheabove-mentionedshort-termleasesandleasesoflow-valueassetswithsimplifiedapproach,theCompanyrecognizesright-of-useassetsandleaseliabilitiesatthecommencementdate.
(1)Right-of-useassetsTheright-of-useassetismeasuredatcostandthecostshallcomprise:1)theamountoftheinitialmeasurementoftheleaseliabilities;2)anyleasepaymentsmadeatorbeforethecommencementdate,lessanyleaseincentivesreceived;3)anyinitialdirectcostsincurredbythelessee;and4)anestimateofcoststobeincurredbythelesseeindismantlingandremovingtheunderlyingasset,restoringthesiteonwhichitislocatedorrestoringtheunderlyingassettotheconditionrequiredbythetermsandconditionsofthelease.TheCompanydepreciatestheright-of-useassetusingthestraight-linemethod.Ifitisreasonabletobecertainthattheownershipoftheunderlyingassetcanbeacquiredbytheendoftheleaseterm,theCompanydepreciatestheright-of-useassetfromthecommencementdatetotheendoftheusefullifeoftheunderlyingasset.Otherwise,theCompanydepreciatestheright-of-useassetfromthecommencementdatetotheearlieroftheendoftheusefullifeoftheright-of-useassetortheendoftheleaseterm.
(2)Leaseliabilities
Atthecommencementdate,theCompanymeasurestheleaseliabilityatthepresentvalueoftheleasepaymentsthatarenotpaidatthatdate,discountedusingtheinterestrateimplicitinthelease.Ifthatratecannotbereadilydetermined,theCompany’sincrementalborrowingrateshallbeused.Unrecognizedfinancingexpenses,calculatedatthedifferencebetweentheleasepaymentanditspresentvalue,arerecognizedasinterestexpensesovertheleasetermusingthediscountratewhichhasbeenusedtodeterminethepresentvalueofleasepaymentandincludedinprofitorloss.Variableleasepaymentsnotincludedinthemeasurementofleaseliabilitiesareincludedinprofitorlossintheperiodsinwhichtheyareincurred.Afterthecommencementdate,ifthereisachangeinthefollowingitems:1)actualfixedpayments;2)amountsexpectedtobepayableunderresidualvalueguarantees;3)anindexorarateusedtodetermineleasepayments;4)assessmentresultorexerciseofpurchaseoption,extensionoptionorterminationoption,theCompanyremeasurestheleaseliabilitybasedonthepresentvalueofleasepaymentsafterchanges,andadjuststhecarryingamountoftheright-of-useassetaccordingly.Ifthecarryingamountoftheright-of-useassetisreducedtozerobutthereshallbeafurtherreductionintheleaseliability,theremainingamountshallberecognizedintoprofitorloss.
2.TheCompanyaslessorAtthecommencementdate,theCompanyclassifiesaleaseasafinanceleaseifittransferssubstantiallyalltherisksandrewardsincidentaltoownershipofanunderlyingasset.Otherwise,itisclassifiedasanoperatinglease.
(1)OperatingleaseLeasereceiptsarerecognizedasleaseincomewithstraight-linemethodovertheleaseterm.Initialdirectcostsincurredshallbecapitalized,amortizedonthesamebasisastherecognitionofleaseincome,andincludedintoprofitorlossbyinstallments.Variableleasepaymentsrelatedtooperatingleasewhicharenotincludedintheleasepaymentarechargedasprofitorlossintheperiodsinwhichtheyareincurred.
(2)FinanceleaseAtthecommencementdate,theCompanyrecognizesthefinanceleasepaymentreceivablebasedonthenetinvestmentinthelease(sumofthepresentvalueofunguaranteedresidualvalueandleasereceiptsthatarenotreceivedatthecommencementdate,discountedbytheinterestrateimplicitinthelease),andderecognizesassetsheldunderthefinancelease.TheCompanycalculatesandrecognizesinterestincomeusingtheinterestrateimplicitintheleaseovertheleaseterm.Variableleasepaymentsnotincludedinthemeasurementofthenetinvestmentintheleasearechargedasprofitorlossintheperiodsinwhichtheyareincurred.
3.Saleandleaseback
(1)TheCompanyasthelesseeInaccordancewiththe“CASBE14–Revenues”,theCompanywouldassessanddeterminewhetherthetransferofanassetinthesaleandleasebacktransactionisaccountedforasasaleofthatasset.Ifthetransferofanassetisaccountedforasasaleoftheasset,theCompanymeasurestheright-of-useassetarisingfromtheleasebackattheproportionoftheoriginalcarryingamountoftheassetthatrelatestotherightofuseretainedbytheCompany.Accordingly,theCompanyrecognizesonlytheamountofanygainorlossthatrelatesto
therightstransferredtothelessor.Otherwise,theCompanycontinuestherecognitionofthetransferredassets,andrecognizesafinancialliabilityequaltotheamountoftransferincomeinaccordancewiththe“CASBE22–FinancialInstruments:RecognitionandMeasurement”atthesametime.
(2)TheCompanyasthelessorInaccordancewiththe“CASBE14–Revenues”,theCompanywouldassessanddeterminewhetherthetransferofanassetinthesaleandleasebacktransactionisaccountedforasasaleofthatasset.Ifthetransferofanassetisaccountedforasasaleoftheasset,theCompanyaccountsforthepurchaseofassetsinaccordancewithotherapplicablestandards,andaccountsfortheleaseofassetsinaccordancewiththe“CASBE21–Leases”.Otherwise,theCompanydoesnotrecognizethetransferredasset,butrecognizesafinancialassetequaltotheamountoftransferincomeinaccordancewiththe“CASBE22–FinancialInstruments:RecognitionandMeasurement”.(XXXIII)WorksafetyfundTheCompanyappropriatesworksafetyfundinaccordancewiththe“CircularonManagementMeasuresontheAppropriationandUseofWorkSafetyFund”(CaiZi[2022]No.136)issuedbytheMinistryofFinanceandtheMinistryofEmergencyManagement.Standardworksafetyfundisincludedinthecostorprofitorloss,meanwhileaccountedforunder“specialreserve”.Whenworksafetyfundisusedasanexpense,itistooffsetspecialreservedirectly.Whenworksafetyfundisqualifiedtobeincludedinthecostoffixedassets,itisaccountedforunder“constructioninprogress”andtransferredtofixedassetswhenrelatedsafetyprojectsreachthedesignedusefulconditions;meanwhile,thecostincludedinfixedassetsistooffset“specialreserve”,andaccumulateddepreciationshallberecognizedatthesameamount.Suchfixedassetsshallnotbedepreciatedinfutureperiods.(XXXIV)SegmentreportingOperatingsegmentsaredeterminedbasedonthestructureoftheCompany’sinternalorganization,managementrequirementsandinternalreportingsystem.AnoperatingsegmentisacomponentoftheCompany:
1.thatengagesinbusinessactivitiesfromwhichitmayearnrevenuesandincurexpenses;
2.whosefinancialperformanceisregularlyreviewedbytheManagementtomakedecisionsaboutresourcetobeallocatedtothesegmentandtoassessitsperformance;and
3.forwhichaccountinginformationregardingfinancialposition,financialperformanceandcashflowsisavailablethroughanalysis.(XXXV)Othersignificantaccountingpoliciesandestimates
1.PPPbusinessTheCompanyadoptsthebuild-operate-transferapproach(PPPprojects,mainlyusingBOT,TOT,etc.)toparticipateinthepublicinfrastructurebusiness.Theprojectcompanyobtainsthefranchiseofpublicinfrastructure
projectsfromgovernmentdepartmentsandparticipatesintheconstructionandoperationoftheproject.Afterthefranchiseexpires,theprojectcompanyneedstohandoverrelevantinfrastructuretothegovernmentorthedepartmentdesignatedbythegovernment.ForthePPPprojectcontractunderwhichtheCompanyprovidesmultipleservices(suchastherenderingofconstructionservicesofPPPprojectsaswellaspost-completionoperationservicesandmaintenanceservices),theCompanyidentifieseachperformanceobligationinthecontractsinaccordancewiththeprovisionsof“CASBE14–Revenues”,andallocatesthetransactionpricetoeachperformanceobligationonthebasisoftherelativestand-alonesellingprices.Ifthestand-alonesellingpricecannotbedirectlyobserved,orifthereisalackofsimilarmarketprices,theCompanywilltakeintoaccountmarketconditions,specificfactorsoftheCompanyandinformationrelatedtocustomersandotherrelevantinformation,andmakeareasonableestimateofthestand-alonesellingpriceusingmethodssuchasmarketadjustmentmethod,cost-plusmethod,residualvaluemethod,etc.Constructionservicesareperformanceobligationssatisfiedovertime.Revenuefromconstructionservicesisrecognizedbythepercentageofcompletionoftheperformanceobligations,whichisdeterminedbasedontheproportionoftheincurredcoststotheestimatedtotalcosts.Inthecircumstancethatthepercentageofcompletioncannotbemeasuredreasonably,buttheincurredcostsareexpectedtoberecovered,theCompanyrecognizesrevenueonlytotheextentoftheincurredcostsuntilitcanreasonablymeasurethepercentageofcompletion.TheCompanyhastherighttochargeusersofpublicgoodsandservicesduringtheoperationoftheprojectinaccordancewiththePPPprojectcontracts.However,iftheamountofthefeesisuncertain,suchrightdoesnotconstituteanunconditionalrighttoreceivecash,andtheconsiderationorconstructionrevenueoftherelevantPPPprojectassetsisrecognizedasintangibleassetswhenthePPPprojectassetsreachthedesignedusefulconditions,whichshallbeaccountedforinaccordancewith“CASBE6–IntangibleAssets”.IftheCompanyisqualifiedtohavetherighttoreceiveadeterminableamountofcash(orotherfinancialassets)duringtheoperationoftheprojectinaccordancewiththePPPprojectcontracts,suchamountisrecognizedasaccountsreceivablewhentheCompanyhastherighttosuchconsideration(therightdependsonlyonthefactorofthepassageoftime)andisaccountedforinaccordancewith“CASBE22–FinancialInstruments:RecognitionandMeasurement”.TheCompanyrecognizesthedifferencebetweentheconsiderationorconstructionrevenueoftherelevantPPPprojectassetsandthedeterminableamountofcash(orotherfinancialassets)asintangibleassetswhenthePPPprojectassetsreachthedesignedusefulconditions.Fortheportionoftheconsiderationorconstructionrevenuerecognizedasintangibleassets,thecontractassetsrecognizedduringtherelevantconstructionperiodarepresentedunder“intangibleassets”inthebalancesheet;forothercontractassetsrecognizedduringtheconstructionperiod,theyarepresentedunder“contractassets”,or“othernon-currentassets”inthebalancesheetiftheyareexpectedtoberealizedwithintwelvemonthsofthebalancesheetdate.AfterthePPPprojectassetsreachthedesignedusefulconditions,theCompanyrecognizesrevenuerelatedtooperatingservicesinaccordancewith“CASBE14–Revenues”.
2.Accountingtreatmentrelatedtosharerepurchase
WhentheCompanyrepurchasesitssharesforthepurposeofreducingitsregisteredcapitalorrewardingitsemployees,ifthepurchasedsharesaretobekeptastreasuryshares,thetreasurysharesarerecordedatthecashdistributedtoexistingshareholdersforrepurchase;ifthepurchasedsharesaretoberetired,thedifferencebetweenthetotalbookvalueofsharesretiredandthecashdistributedtoexistingshareholdersforrepurchaseistoreducecapitalreserve,orretainedearningswhenthecapitalreserveisnotenoughtoreduce.IftheCompanyrepurchasesvestedequityinstrumentsinequity-settledshare-basedpaymenttransactionswithemployees,costoftreasurysharesgrantedtoemployeesandcapitalreserve(othercapitalreserve)accumulatedwithinthevestingperiodaretobewrittenoffonthepaymentmadetoemployees,withacorrespondingadjustmentincapitalreserve(sharepremium).(XXXV)SignificantchangesinaccountingpoliciesChangesinaccountingpoliciesarisingfromchangesinCASBEsTheCompanyhasadoptedtheregulationsaboutaccountingfordeferredtaxrelatedtoassetsandliabilitiesarisingfromasingletransactiontowhichtheinitialrecognitionexemptiondoesnotapplyinthe“InterpretationofChinaAccountingStandardsforBusinessEnterprisesNo.16”issuedbytheMinistryofFinancesinceJanuary1,2023,andmakesadjustmentsonsuchsingletransactionsoccurringbetweenthebeginningoftheearliestcomparativeperiodandthefirstadoptiondateaccordingly.Fortaxableanddeductibletemporarydifferencesassociatedwithleaseliabilitiesandright-of-useassets,provisionsassociatedwithdecommissioningobligationsandcorrespondingassetsarisingfromsuchsingletransactionsandpresentedatthebeginningoftheearliestcomparativeperiod,thecumulativeeffectofinitiallyapplyingsuchregulationsand“CASBE18–EnterpriseIncomeTax”shallbeadjustedintoretainedearningsorotherrelateditemsatthebeginningoftheearliestcomparativeperiodpresented.SuchchangeinaccountingpolicieshasnoimpactontheCompany’sfinancialstatements.IV.Taxes(I)Maintaxesandtaxrates
| Taxes | Taxbases | Taxrates |
| Value-addedtax(VAT) | Theoutputtaxcalculatedbasedontherevenuefromsalesofgoodsorrenderingofservicesinaccordancewiththetaxlaw,netoftheinputtaxthatisallowedtobedeductedinthecurrentperiod | 3%,6%,9%,13%.Exportedgoodsaresubjectto“exemption,credit,refund”policies,withrefundrateof13%. |
| Housingpropertytax | Forhousingpropertyleviedonthebasisofprice,housingpropertytaxisleviedattherateof1.2%ofthebalanceafterdeducting30%ofthecost;forhousingpropertyleviedonthebasisofrent,housingpropertytaxisleviedattherateof12%ofleaseincome. | 1.2%,12% |
| Urbanmaintenanceandconstructiontax | Turnovertaxactuallypaid | 7%,5% |
| Educationsurcharge | Turnovertaxactuallypaid | 3% |
| Localeducationsurcharge | Turnovertaxactuallypaid | 2%,1% |
| Enterpriseincometax | Taxableincome | 15%,20%,25% |
Differententerpriseincometaxratesapplicabletodifferenttaxpayers:
| Taxpayers | Incometaxrate |
| InforeTechnologyCompany | 15% |
| GuangdongInforeIntelligentSanitationTechnologyCo.,Ltd. | 15% |
| ShangfengIndustrialCompany | 15% |
| ZoomlionEnvironmentalCompany | 15% |
| FengyunIoTTechnologyCo.,Ltd. | 15% |
| HuaianChenjieEnvironmentalEngineeringCo.,Ltd. | 15% |
| ZhejiangYolshElectricDriveTechnologyCo.,Ltd.(the“YolshCompany”) | 15% |
| XiantaoGreenOrientalEnvironmentalPowerGenerationCo.,Ltd.(the“XiantaoCompany”) | 15% |
| FoshanShundeHuaqingyuanEnvironmentalProtectionCo.,Ltd.(the“HuaqingyuanCompany”) | 15% |
| FoshanShundeDistrictHuayingEnvironmentalWaterCo.,Ltd. | 15% |
| LianjiangGreenOrientalNewEnergyCo.,Ltd.(the“LianjiangCompany”) | 15% |
| Taxpayersotherthantheabove-mentioned | 25%,20%forsmallenterpriseswithmeagerprofit |
(II)Taxpreferentialpolicies
1.Enterpriseincometax
| No. | Entities | Preferentialpolicies |
| 1 | ZoomlionEnvironmentalCompany,FengyunIoTTechnologyCo.,Ltd.,HuaianChenjieEnvironmentalEngineeringCo.,Ltd.,YolshCompany,XiantaoCompany,FoshanShundeDistrictHuayingEnvironmentalWaterCo.,Ltd. | Pursuanttothepreferentialincometaxpolicyforhigh-techenterprises,enterpriseincometaxrateisreducedto15%from2023to2025. |
| 2 | ShangfengIndustrialCompany,InforeTechnologyCompany,HuaqingyuanCompany,GuangdongInforeIntelligentSanitationTechnologyCo.,Ltd.,LianjiangCompany | Pursuanttothepreferentialincometaxpolicyforhigh-techenterprises,enterpriseincometaxrateisreducedto15%from2022to2024. |
| 3 | HuaqingyuanCompany,FoshanShundeDistrictHuayingEnvironmentalWaterCo.,Ltd.,FoshanShundeDistrictYuanrunWaterEnvironmentalProtectionCo.,Ltd.,FoshanShundeHuaboEnvironmentalWaterCo.,Ltd. | Revenuefromtheproductionofnon-restrictedandnon-prohibitedproductsthatmeettherelevantnationalandindustrystandardsusingresourcesspecifiedinthe“ResourcesComprehensiveUtilizationofEnterpriseIncomeTaxPreferentialCatalog(2008Edition)”asthemainrawmaterialwillbereducedto90%astaxableincomeforenterpriseincometaxinthecurrentperiod. |
| 4 | Subsidiariesandsub-subsidiariesincludingShenzhenInforeCityServiceIntelligentTechnologyCo.,Ltd.,FoshanShundeHuaboEnvironmentalWaterCo.,Ltd.,FoshanShundeYuanyiWaterEnvironmentalProtectionCo.,Ltd.,DingnanZoomlionEnvironmentalIndustryCo.,Ltd.,etc. | Pursuanttothe“AnnouncementofMinistryofFinance(MOF)andStateTaxationAdministration(STA)ontheFurtherImplementationoftheEnterpriseIncomeTaxPreferentialPoliciesforSmallEnterpriseswithMeagerProfitandIndividually-ownedBusinesses”(AnnouncementofMOFandSTA[2022]No.13),“AnnouncementofMOFandSTAontheEnterprisesIncomeTaxPreferentialPoliciesforSmallEnterpriseswithMeagerProfitandIndividually-ownedBusinesses”(AnnouncementofMOFandSTA[2023]No.6),andthe“AnnouncementofMOFandSTAonFurtherImplementationoftheEnterprisesIncomeTaxPreferentialPoliciesforSmallEnterpriseswithMeagerProfitandIndividually-OwnedBusinesses”(Announcement[2023]No.12),fromJanuary1,2023toDecember31,2027,theenterpriseincometaxfortheportionofthetaxableincomewithin3millionyuanisleviedat20%basedon25%ofthatportionofincome. |
| 5 | Subsidiariesandsub-subsidiariesincludingPingdingshanYingheEnvironmentalSanitationManagementCo.,Ltd.,HeyangYingheUrbanEnvironmentalServiceCo., | Pursuanttothe“LawofthePeople’sRepublicofChinaonEnterpriseIncomeTax”anditsimplementationregulations,the“NoticeofMOF,STAandNationalDevelopmentandReformCommission(NDRC)onPublishingtheCatalogofEnterpriseIncomeTaxPreferencesfor |
| No. | Entities | Preferentialpolicies |
| Ltd.,ZhangjiajieYinglianEnvironmentalManagementCo.,Ltd.,LilingZhaoyangEnvironmentalProtectionCo.,Ltd.,etc. | EnvironmentalProtection,EnergySaving,andWaterSavingProjects(Trial)”(CaiShui[2009]No.166)(the“2009Catalog”),theprojectcompaniesareentitledtoenjoythepreferentialpolicyofthree-yearexemptionfromthefirstprofit-makingyear,followedbythreeyearsof50%reductionofenterpriseincometax.Pursuanttothe“AnnouncementNo.36,2021ofMOF,STA,NDRC,andMinistryofEcologyandEnvironment”issuedbyfourdepartmentsincludingtheMOFdatedDecember16,2021,theentities’businesscomplywiththe“2021Catalog”,andrelevantprojectscanstillenjoytheabovepreferentialpolicy. | |
| 6 | RuiliYinglianEnvironmentalIndustryCo.,Ltd. | PursuanttothedocumentnumberedGuoBanHan[2012]103bytheStateCouncil,newlyestablishedenterprisesthatsettleintheRuiliPilotZoneareentitledtoenjoythefive-year-exemptionandfive-year-half-reductionpolicyfortheenterpriseincometaxsharedbythelocalauthorityoftheregion(40%oftotalenterpriseincometax),i.e.,theyenjoyenterpriseincometaxexemptionfrom2021to2025,andenjoya50%reductioninincomefrom2026to2030,whilefortheenterpriseincometaxsharedbycentralgovernment(60%),theyenjoythepreferentialpolicyassmallenterpriseswithmeagerprofit. |
2.VAT
(1)Pursuanttothe“NoticeofMOFandSTAonVATPoliciesforSoftwareProducts”(CaiShui[2011]No.100),generalVATtaxpayerswhosellsoftwareproductsdevelopedandproducedbythemselvesaresubjecttoVATrefunduponcollectionfortheamountexceeding3%oftheiractualVATburdens.In2023,thesubsidiariesZoomlionEnvironmentalCompanyandInforeTechnologyCompanyareentitledtoenjoytheVATrefunduponcollectionpolicyforsaleoftheirself-developedandself-producedsoftwareproducts.
(2)Pursuanttothe“AnnouncementofMOFandSTAonClarifyingPoliciesonVATReductionandExemption,etc.forSmall-scaleTaxpayers”(AnnouncementofMOFandSTA[2023]No.1),eligibletaxpayersengagedinthelifeservicesasmettheprovisionsofthe“AnnouncementofMOFandSTAonClarifyingExtraVATDeductionandExemptionPolicyforLifeServiceIndustry”(AnnouncementofMOFandSTA[2019]No.87)areentitledtoenjoyanextra10%VATcredit.In2023,thesubsidiariesZoomlionEnvironmentalCompanyanditscertainsubsidiaries,FoshanShundeYuanyiWaterEnvironmentalProtectionCo.,Ltd.andInforeZoomlionCityEnvironmentalServiceCo.,Ltd.areentitledtoenjoysuchpreferentialpolicy.
(3)Pursuanttothe“NoticeofMOFandSTAonExtraVATDeductionPolicyforAdvancedManufacturingEnterprises”(AnnouncementofMOFandSTA[2023]No.43),fromJanuary1,2023toDecember31,2027,advancedmanufacturingenterprisesareeligibletoenjoyanextra5%VATcredit.In2023,thesubsidiariesZoomlionEnvironmentalCompany,InforeTechnologyCompany,ShangfengIndustrialCompanyandYolshCompanyareentitledtoenjoysuchpreferentialpolicy.
(4)PursuanttoArticle5ofthe“AnnouncementofMOFandSTAonImprovingVATPolicyforImprovingComprehensiveUtilizationofResources”(AnnouncementofMOFandSTA[2021]No.40),sinceMarch1,2022,enterprisesrenderingsewagetreatmentservicesareentitledtoenjoy70%VATrefunduponcollection.In2023,thesubsidiariesHuaqingyuanCompany,FoshanShundeDistrictHuayingEnvironmentalWaterCo.,Ltd.,FoshanShundeDistrictYuanrunWaterEnvironmentalProtectionCo.,Ltd.areentitledtoenjoysuchpreferentialpolicy.PursuanttoArticle4ofthe“NoticeofMOFandSTAonPrintingandDistributingtheAnnouncementonVAT
PolicyforImprovingComprehensiveUtilizationofResources”(AnnouncementofMOFandSTA[2021]No.40),sinceMarch1,2022,enterprisesrenderingsewagetreatmentservicesareentitledtoenjoyVATrefunduponcollectionpolicyorVATexemptionpolicy.In2023,thesubsidiariesHuaqingyuanCompany,FoshanShundeDistrictHuayingEnvironmentalWaterCo.,Ltd.,FoshanShundeDistrictYuanrunWaterEnvironmentalProtectionCo.,Ltd.andFoshanShundeHuaboEnvironmentalWaterCo.,Ltd.haveadoptedVATexemptionpolicy.
(5)PursuanttoArticle2ofthe“AnnouncementofMOFandSTAonImprovingVATPolicyforImprovingComprehensiveUtilizationofResources”(AnnouncementofMOFandSTA[2021]No.40),enterprisesproducingelectricityandheatproductswithfuelfromgarbageandbiogasresourcesproducedbygarbagefermentationareentitledtoenjoy100%VATrefunduponcollection.PursuanttoArticle5,enterprisesrenderinggarbagetreatmentandsewagetreatmentservicesareentitledtoenjoy70%VATrefunduponcollection.ThesubsidiariesLianjiangCompany,ShouxianGreenOrientalNewEnergyCo.,Ltd.(the“ShouxianCompany”)andFunanGreenOrientalEnvironmentalEnergyCo.,Ltd.(the“FunanCompany”)areentitledtoenjoysuchpreferentialpolicy.
(6)Pursuanttothe“MeasuresfortheImplementationofthePilotImplementationofVATReformfortheTransportationIndustryandCertainModernServiceIndustries”(CaiShui[2011]No.111),revenuefromtechnologytransfer,technologydevelopment,andrelatedtechnicalconsulting,andtechnicalservicebusinessesisexemptfromVAT.In2023,thesubsidiaryShenzhenDingzhuEnvironmentalTechnologyCo.,Ltd.meetstheconditionandisexemptfromVAT.
(7)Pursuanttothe“AnnouncementofMOF,STAandMinistryofVeteransAffairs(MVA)onTaxPoliciesforFurtherSupportingtheBusinessStartupbyandtheEmploymentofVeteransSeekingIndependentEmployment”(AnnouncementofMOF,STAandMVA[2023]No.14),fromJanuary1,2023toDecember31,2027,ifanenterpriseentersintoanemploymentcontractwithveteranseekingindependentemploymentforatermofoneyearormoreandpayssocialinsurancepremiumsinaccordancewiththelaw,itmayenjoyacreditwithinthestandardquotaagainst,insequentialorder,VAT,urbanmaintenanceandconstructiontax,educationalsurcharge,localeducationsurchargesandenterpriseincometaxaccordingtothenumberofpersonsactuallyemployedforthreeyearsfromthemonthwhentheemploymentcontractissignedandthesocialpremiumsarepaid.In2023,thesubsidiaryZoomlionEnvironmentalCompanyanditscertainsubsidiarieswereentitledtoenjoysuchtaxreductionandexemptionpolicy.
(8)Pursuanttothe“AnnouncementoftheMOF,SAT,MinistryofHunmanResourcesandSocialSecurity(MHR),MinistryofAgricultureandRuralAffairs(MAR)onTaxPoliciesforFurtherSupportingtheBusinessStartupbyandtheEmploymentofKeyPopulations”(Announcement[2023]No.15),fromJanuary1,2023toDecember31,2027,ifanenterpriseentersintoanemploymentcontractwithpeoplewhohavebeenliftedoutofpoverty,aswellaspeoplewhohavebeenregisteredasunemployedformorethansixmonthsatthepublicemploymentserviceagencyofMHRwithan“EntrepreneurshipCertificate”or“UnemploymentRegistrationCertificate”(Indicated“EnterpriseTaxAbsorptionPolicy”),foratermofoneyearormoreandpayssocialinsurancepremiumsinaccordancewiththelaw,itmayenjoyacreditwithinthestandardquotaagainst,insequentialorder,VAT,urbanmaintenanceandconstructiontax,educationalsurcharge,localeducationsurchargesandenterpriseincometaxaccordingtothenumberofpersonsactuallyemployedforthreeyearsfromthemonthwhentheemployment
contractissignedandthesocialpremiumsarepaid.In2023,thesubsidiaryZoomlionEnvironmentalCompanyanditscertainsubsidiarieswereentitledtoenjoysuchtaxreductionandexemptionpolicy.
3.ReductionandexemptionpolicyonsixlocaltaxesandtworatesPursuanttothe“AnnouncementoftheMOFandSATonTaxPoliciesforFurtherSupportingtheDevelopmentofSmallEnterpriseswithMeagerProfitandIndividually-OwnedBusinesses”(AnnouncementofMOFandSTA[2023]No.12),fromJanuary1,2023toDecember31,2027,forVATsmall-scaletaxpayers,smallenterpriseswithmeagerprofitandindividually-ownedbusinesses,resourcetax(excludingwaterresourcestax),urbanmaintenanceandconstructiontax,housingpropertytax,urbanlandusetax,stampduty(excludingsecuritiestransactionstampduty)cultivatedlandoccupationtaxandeducationsurcharge,localeducationsurchargewillbehalved.In2023,somesubsidiariesofZoomlionEnvironmentalCompany,FoshanShunheEnvironmentalProtectionCo.,Ltd.,FoshanShundeHuaboEnvironmentalWaterCo.,Ltd.andFoshanShundeYuanyiWaterEnvironmentalProtectionCo.,Ltd.wereeligibletoenjoysuchtaxpreferentialpolicy.V.Notestoitemsofconsolidatedfinancialstatements(I)Notestoitemsoftheconsolidatedbalancesheet
1.Cashandbankbalances
(1)Details
| Items | Closingbalance | Openingbalance |
| Cashonhand | 310,688.91 | 84,414.54 |
| Cashinbank | 4,150,666,527.57 | 4,590,418,271.45 |
| Othercashandbankbalances | 260,399,367.30 | 137,700,844.47 |
| Total | 4,411,376,583.78 | 4,728,203,530.46 |
| Including:Depositedoverseas | 1,519,215.68 | 3,949,867.33 |
(2)Otherremarks
1)Closingbalanceofcashinbankincludedfundsfrozenduetolawsuitsof5,100,869.89yuan,engineeringescrowaccountsnotavailableforseparateuseof154,141.05yuan,frozensecuritydepositsof290,200.17yuanandcertificatesofdepositof230,340,333.33yuan,whichwaswithuserestrictions.
2)Closingbalanceofothercashandbankbalancesincludeddepositsfornotesof179,001,533.41yuan,depositsforlettersofguaranteeof77,546,493.49yuan,engineeringdepositsof929,734.93yuan,ETCdepositsof3,000.00yuan,depositsforbuyer’screditof861,924.65yuananddepositsforlandreclamationof1,003,098.32yuan,whichwaswithuserestrictions.
2.Notesreceivable
(1)Details
| Items | Closingbalance | Openingbalance |
| Bankacceptance | 4,597,270.24 | 6,474,284.28 |
| Tradeacceptance | 349,861.59 | 7,091,421.94 |
| Items | Closingbalance | Openingbalance |
| Total | 4,947,131.83 | 13,565,706.22 |
(2)Provisionforbaddebts
1)Detailsoncategories
| Categories | Closingbalance | ||||
| Bookbalance | Provisionforbaddebts | Carryingamount | |||
| Amount | %tototal | Amount | Provisionproportion(%) | ||
| Receivableswithprovisionforbaddebtsmadeonacollectivebasis | 5,005,019.28 | 100.00 | 57,887.45 | 1.16 | 4,947,131.83 |
| Including:Bankacceptance | 4,597,270.24 | 91.85 | 4,597,270.24 | ||
| Tradeacceptance | 407,749.04 | 8.15 | 57,887.45 | 14.20 | 349,861.59 |
| Total | 5,005,019.28 | 100.00 | 57,887.45 | 1.16 | 4,947,131.83 |
(Continued)
| Categories | Openingbalance | ||||
| Bookbalance | Provisionforbaddebts | Carryingamount | |||
| Amount | %tototal | Amount | Provisionproportion(%) | ||
| Receivableswithprovisionforbaddebtsmadeonacollectivebasis | 15,111,625.30 | 100.00 | 1,545,919.08 | 10.23 | 13,565,706.22 |
| Including:Bankacceptance | 6,474,284.28 | 42.84 | 6,474,284.28 | ||
| Tradeacceptance | 8,637,341.02 | 57.16 | 1,545,919.08 | 17.90 | 7,091,421.94 |
| Total | 15,111,625.30 | 100.00 | 1,545,919.08 | 10.23 | 13,565,706.22 |
2)Notesreceivablewithprovisionforbaddebtsmadeonacollectivebasis
| Items | Closingbalance | ||
| Bookbalance | Provisionforbaddebts | Provisionproportion(%) | |
| Bankacceptanceportfolio | 4,597,270.24 | ||
| Tradeacceptanceportfolio | 407,749.04 | 57,887.45 | 14.20 |
| Subtotal | 5,005,019.28 | 57,887.45 | 1.16 |
(3)Changesinprovisionforbaddebts
| Items | Openingbalance | Increase | Decrease | Closingbalance | ||
| Accrual | RecoveryorReversal | Write-off | Others | |||
| Receivableswithprovisionforbaddebtsmadeonacollectivebasis | 1,545,919.08 | -1,488,031.63 | 57,887.45 | |||
| Total | 1,545,919.08 | -1,488,031.63 | 57,887.45 | |||
(4)Nopledgednotesatthebalancesheetdate.
(5)Endorsedordiscountedbutunduenotesatthebalancesheetdate
| Items | Closingbalancederecognized | Closingbalancenotyetderecognized |
| Bankacceptance | 4,472,210.78 | |
| Tradeacceptance | 407,749.04 | |
| Subtotal | 4,879,959.82 |
(6)Notesreceivabletransferredtoaccountsreceivableduetonon-performanceofissuer
| Items | Amounttransferred |
| Tradeacceptance | 9,618,317.80 |
| Subtotal | 9,618,317.80 |
3.Accountsreceivable
(1)Ageanalysis
| Ages | Closingbookbalance | Openingbookbalance |
| Within1year | 4,798,113,288.74 | 4,708,241,417.53 |
| 1-2years | 930,689,479.95 | 892,266,330.70 |
| 2-3years | 552,003,141.94 | 336,117,089.17 |
| 3-5years | 277,106,854.66 | 199,203,953.15 |
| Over5years | 89,167,772.76 | 74,219,972.77 |
| Total | 6,647,080,538.05 | 6,210,048,763.32 |
(2)Provisionforbaddebts
1)Detailsoncategories
| Categories | Closingbalance | ||||
| Bookbalance | Provisionforbaddebts | Carryingamount | |||
| Amount | %tototal | Amount | Provisionproportion(%) | ||
| Receivableswithprovisionmadeonanindividualbasis | 261,607,248.18 | 3.94 | 108,069,720.23 | 41.31 | 153,537,527.95 |
| Receivableswithprovisionmadeonacollectivebasis | 6,385,473,289.87 | 96.06 | 671,341,340.96 | 10.51 | 5,714,131,948.91 |
| Total | 6,647,080,538.05 | 100.00 | 779,411,061.19 | 11.73 | 5,867,669,476.86 |
(Continued)
| Categories | Openingbalance | ||
| Bookbalance | Provisionforbaddebts | Carryingamount | |
| Amount | %tototal | Amount | Provisionproportion(%) | ||
| Receivableswithprovisionmadeonanindividualbasis | 26,702,254.77 | 0.43 | 16,482,074.94 | 61.73 | 10,220,179.83 |
| Receivableswithprovisionmadeonacollectivebasis | 6,183,346,508.55 | 99.57 | 567,774,216.01 | 9.18 | 5,615,572,292.54 |
| Total | 6,210,048,763.32 | 100.00 | 584,256,290.95 | 9.41 | 5,625,792,472.37 |
2)Significantaccountsreceivablewithprovisionmadeonanindividualbasis
| Debtors | Openingbalance | Closingbalance | ||||
| Bookbalance | Provisionforbaddebts | Bookbalance | Provisionforbaddebts | Provisionproportion(%) | Basisforprovisionmade | |
| GuangdongTianshuNewEnergyTechnologyCo.,Ltd. | 189,921,071.39 | 56,976,321.42 | 30.00 | Expectedcreditlosses | ||
| Subtotal | 189,921,071.39 | 56,976,321.42 | 30.00 | |||
3)Accountsreceivablewithprovisionforbaddebtsmadeonacollectivebasis
| Items | Closingbalance | ||
| Bookbalance | Provisionforbaddebts | Provisionproportion(%) | |
| Portfoliogroupedwithages | 6,050,614,468.43 | 659,820,086.32 | 10.91 |
| Portfoliogroupedwithcommercialfactoringreceivable | 294,408,028.59 | 11,521,254.64 | 3.91 |
| Portfoliogroupedwithgovernmentgrantsreceivablefornewenergyvehicles | 40,450,792.85 | ||
| Subtotal | 6,385,473,289.87 | 671,341,340.96 | 10.51 |
4)Accountsreceivablewithprovisionmadeonacollectivebasisusingageanalysismethod
| Ages | Closingbalance | ||
| Bookbalance | Provisionforbaddebts | Provisionproportion(%) | |
| Within1year | 4,404,011,770.14 | 220,200,588.57 | 5.00 |
| 1-2years | 824,904,402.24 | 82,490,440.22 | 10.00 |
| 2-3years | 476,520,031.86 | 142,956,009.56 | 30.00 |
| 3-5years | 262,010,432.44 | 131,005,216.22 | 50.00 |
| Over5years | 83,167,831.75 | 83,167,831.75 | 100.00 |
| Subtotal | 6,050,614,468.43 | 659,820,086.32 | 10.91 |
5)Commercialfactoringportfoliogroupedbyfive-levelclassification
| Five-levelclassification | Closingbalance | |||
| Bookbalance | Unrealizedfinancingincome | Provisionforbaddebts | Provisionproportion(%) | |
| Pass | 249,939,526.65 | 3,749,092.90 | 1.50 | |
| Five-levelclassification | Closingbalance | |||
| Bookbalance | Unrealizedfinancingincome | Provisionforbaddebts | Provisionproportion(%) | |
| Special-mention | 20,623,662.36 | 618,709.87 | 3.00 | |
| Substandard | 23,844,839.58 | 7,153,451.87 | 30.00 | |
| Subtotal | 294,408,028.59 | 11,521,254.64 | 3.91 | |
(3)Changesinprovisionforbaddebts
1)Details
| Items | Openingbalance | Increase/Decrease | Closingbalance | |||
| Accrual | RecoveryorReversal | Write-off | Others | |||
| Receivableswithprovisionmadeonanindividualbasis | 16,482,074.94 | 100,712,885.29 | 484,240.00 | 8,641,000.00 | 108,069,720.23 | |
| Receivableswithprovisionmadeonacollectivebasis | 567,774,216.01 | 151,514,611.64 | 835,452.64 | 47,112,034.05 | 671,341,340.96 | |
| Total | 584,256,290.95 | 252,227,496.93 | 1,319,692.64 | 55,753,034.05 | 779,411,061.19 | |
2)Nosignificantprovisionscollectedorreversedinthecurrentperiod.
(4)Accountsreceivableactuallywrittenoffinthecurrentperiod
1)Accountsreceivablewrittenoff
| Items | Amountwrittenoff |
| Accountsreceivableactuallywrittenoff | 55,753,034.05 |
2)Nosignificantaccountsreceivablewrittenoffinthecurrentperiod.
(5)Detailsofthetop5debtorswithlargestbalancesofaccountsreceivableandcontractassets
| Debtors | Closingbookbalance | Proportiontothetotalbalanceofaccountsreceivableandcontractassets(includingcontractsassetspresentedunderothernon-currentassets)(%) | Provisionforbaddebtsofaccountsreceivableandprovisionforimpairmentofcontractassets | ||
| Accountsreceivable | Contractassets(includingcontractsassetspresentedunderothernon-currentassets) | Subtotal | |||
| No.1 | 189,921,071.39 | 189,921,071.39 | 2.75 | 56,976,321.42 | |
| No.2 | 100,039,699.41 | 100,039,699.41 | 1.45 | 17,825,857.13 | |
| No.3 | 74,592,738.95 | 74,592,738.95 | 1.08 | 5,958,563.47 | |
| No.4 | 70,454,956.26 | 5,935,440.93 | 76,390,397.19 | 1.11 | 7,895,525.34 |
| No.5 | 64,715,567.52 | 64,715,567.52 | 0.94 | 3,235,778.38 | |
| Subtotal | 499,724,033.53 | 5,935,440.93 | 505,659,474.46 | 7.33 | 91,892,045.74 |
4.Receivablesfinancing
(1)Details
| Items | Closingbalance | Openingbalance |
| Items | Closingbalance | Openingbalance |
| Bankacceptance | 146,814,501.64 | 107,316,593.41 |
| Total | 146,814,501.64 | 107,316,593.41 |
(2)Pledgedreceivablesfinancingatthebalancesheetdate
| Items | Closingbalanceofpledgednotes |
| Bankacceptance | 55,280,364.20 |
| Subtotal | 55,280,364.20 |
(3)Endorsedordiscountedbutunduereceivablesfinancingatthebalancesheetdate
| Items | Closingbalancederecognized |
| Bankacceptance | 126,601,525.47 |
| Subtotal | 126,601,525.47 |
Duetothefactthattheacceptorofbankacceptanceiscommercialbank,whichisofhighcreditlevel,thereisverylittlepossibilityoffailureinrecoverabilitywhenitisdue.Basedonthisfact,theCompanyderecognizedtheendorsedordiscountedbankacceptance.However,ifanybankacceptanceisnotrecoverablewhenitisdue,theCompanystillholdsjointliabilityonsuchacceptance,accordingtotheChinaCommercialInstrumentLaw.
5.Advancespaid
(1)Ageanalysis
1)Details
| Ages | Closingbalance | |||
| Bookbalance | %tototal | Provisionforimpairment | Carryingamount | |
| Within1year | 131,172,209.02 | 93.53 | 131,172,209.02 | |
| 1-2years | 8,100,756.68 | 5.78 | 8,100,756.68 | |
| 2-3years | 327,684.83 | 0.23 | 327,684.83 | |
| Over3years | 640,396.13 | 0.46 | 640,396.13 | |
| Total | 140,241,046.66 | 100.00 | 140,241,046.66 | |
(Continued)
| Ages | Openingbalance | |||
| Bookbalance | %tototal | Provisionforimpairment | Carryingamount | |
| Within1year | 186,619,989.22 | 97.02 | 186,619,989.22 | |
| 1-2years | 4,515,793.00 | 2.35 | 4,515,793.00 | |
| 2-3years | 1,175,026.94 | 0.61 | 1,175,026.94 | |
| Over3years | 49,733.08 | 0.02 | 49,733.08 | |
| Total | 192,360,542.24 | 100.00 | 192,360,542.24 | |
2)Nomaterialbalancewithageoveroneyear.
(2)Detailsofthetop5debtorswithlargestbalances
| Debtors | Bookbalance | Proportiontothetotalbalanceofadvancespaid(%) |
| No.1 | 7,896,200.00 | 5.63 |
| No.2 | 3,636,283.20 | 2.59 |
| No.3 | 2,387,925.65 | 1.70 |
| No.4 | 1,988,886.43 | 1.42 |
| No.5 | 1,980,000.00 | 1.41 |
| Subtotal | 17,889,295.28 | 12.75 |
6.Otherreceivables
(1)Otherreceivablescategorizedbynature
| Natureofreceivables | Closingbookbalance | Openingbookbalance |
| Temporaryadvancepaymentreceivableandpettycash | 163,429,454.84 | 189,730,555.74 |
| Securitydeposits | 82,240,734.41 | 115,535,012.45 |
| Performancecompensation | 113,460,620.00 | 113,460,620.00 |
| Others | 4,598,968.70 | 6,649,505.96 |
| Total | 363,729,777.95 | 425,375,694.15 |
(2)Ageanalysis
| Ages | Closingbookbalance | Openingbookbalance |
| Within1year | 117,612,450.57 | 195,949,031.83 |
| 1-2years | 65,555,129.46 | 171,544,892.21 |
| 2-3years | 149,623,905.77 | 27,310,051.83 |
| 3-4years | 10,558,177.00 | 22,981,433.06 |
| 4-5years | 14,053,059.51 | 3,490,125.62 |
| Over5years | 6,327,055.64 | 4,100,159.60 |
| Total | 363,729,777.95 | 425,375,694.15 |
(3)Provisionforbaddebts
1)Detailsoncategories
| Categories | Closingbalance | ||||
| Bookbalance | Provisionforbaddebts | Carryingamount | |||
| Amount | %tototal | Amount | Provisionproportion(%) | ||
| Receivableswithprovisionmadeonanindividualbasis | |||||
| Receivableswithprovisionmadeonacollectivebasis | 363,729,777.95 | 100.00 | 47,068,704.69 | 12.94 | 316,661,073.26 |
| Categories | Closingbalance | ||||
| Bookbalance | Provisionforbaddebts | Carryingamount | |||
| Amount | %tototal | Amount | Provisionproportion(%) | ||
| Total | 363,729,777.95 | 100.00 | 47,068,704.69 | 12.94 | 316,661,073.26 |
(Continued)
| Categories | Openingbalance | ||||
| Bookbalance | Provisionforbaddebts | Carryingamount | |||
| Amount | %tototal | Amount | Provisionproportion(%) | ||
| Receivableswithprovisionmadeonanindividualbasis | |||||
| Receivableswithprovisionmadeonacollectivebasis | 425,375,694.15 | 100.00 | 39,753,423.15 | 9.35 | 385,622,271.00 |
| Total | 425,375,694.15 | 100.00 | 39,753,423.15 | 9.35 | 385,622,271.00 |
2)Otherreceivableswithprovisionmadeonacollectivebasisa.Otherreceivableswithprovisionmadeonacollectivebasis–parentcompany
| Ages | Closingbalance | ||
| Bookbalance | Provisionforbaddebts | Provisionproportion(%) | |
| Portfoliogroupedwithperformancecompensation | 113,460,620.00 | 2,179,342.69 | 1.92 |
| Portfoliogroupedwithbuyer’scredit | 24,127,705.88 | 4,857,450.12 | 20.13 |
| Portfoliogroupedwithages | 4,995,936.39 | 1,713,840.08 | 34.30 |
| Including:1-180days | 258,669.54 | ||
| 180days-1year | 1,019,113.00 | 20,382.26 | 2.00 |
| 1-2years | 315,690.79 | 31,569.08 | 10.00 |
| 2-3years | 329,381.49 | 98,814.45 | 30.00 |
| 3-5years | 2,984,636.57 | 1,492,318.29 | 50.00 |
| Over5years | 88,445.00 | 70,756.00 | 80.00 |
| Subtotal | 142,584,262.27 | 8,750,632.89 | 6.14 |
Notes:Fortheportfoliogroupedwithperformancecompensation,expectedcreditlossesaremeasuredbasedontheremainingbalanceafterthemandatoryenforcementafterthebalancesheetdate.PleaserefertosectionXIV(III)1ofnotestothefinancialstatementsfordetails.b.Ventilationequipmentmanufacturingindustryandenvironmentalintegratedindustry
| Portfolios | Closingbalance | ||
| Bookbalance | Provisionforbaddebts | Provisionproportion(%) | |
| Portfolios | Closingbalance | ||
| Bookbalance | Provisionforbaddebts | Provisionproportion(%) | |
| Portfoliogroupedwithages | 221,145,515.68 | 38,318,071.80 | 17.33 |
| Including:Within1year | 104,576,885.16 | 5,229,038.34 | 5.00 |
| 1-2years | 52,869,515.66 | 5,286,951.57 | 10.00 |
| 2-3years | 35,833,904.28 | 10,750,171.28 | 30.00 |
| 3-5years | 21,626,599.94 | 10,813,299.97 | 50.00 |
| Over5years | 6,238,610.64 | 6,238,610.64 | 100.00 |
| Subtotal | 221,145,515.68 | 38,318,071.80 | 17.33 |
(4)Changesinprovisionforbaddebts
| Items | Stage1 | Stage2 | Stage3 | Subtotal |
| 12?monthexpectedcreditlosses | Lifetimeexpectedcreditlosses(creditnotimpaired) | Lifetimeexpectedcreditlosses(creditimpaired) | ||
| Openingbalance | 8,420,041.44 | 5,808,427.22 | 25,524,954.49 | 39,753,423.15 |
| Openingbalanceinthecurrentperiod | ||||
| --Transferredtostage2 | -2,649,887.72 | 2,649,887.72 | ||
| --Transferredtostage3 | -3,616,328.58 | 3,616,328.58 | ||
| --Reversedtostage2 | ||||
| --Reversedtostage1 | ||||
| Provisionmadeinthecurrentperiod | -479,707.78 | 1,972,005.47 | 7,298,991.30 | 8,791,288.99 |
| Provisionrecoveredorreversedinthecurrentperiod | 18,583.43 | 305,040.36 | 1,129,941.75 | 1,453,565.54 |
| Provisionwrittenoffinthecurrentperiod | ||||
| Otherchanges[Note] | -22,441.91 | -22,441.91 | ||
| Closingbalance | 5,249,420.60 | 6,508,951.47 | 35,310,332.62 | 47,068,704.69 |
| Provisionproportion(%) | 4.96 | 9.93 | 19.56 | 12.94 |
Note:Otherchangesrefertobalancestransferredoutduetothedisposalofsubsidiariesinthecurrentperiod.Divisionbasisforeachstages:agesofotherreceivables.
(5)Detailsofthetop5debtorswithlargestbalances
| Debtors | Natureofreceivables | Closingbookbalance | Ages | Proportiontothetotalbalanceofotherreceivables(%) | Provisionforbaddebtsatthebalancesheetdate |
| No.1 | Performancecompensationandtemporaryadvancepaymentreceivable | 113,792,911.19 | [Note] | 31.29 | 2,362,244.28 |
| No.2 | Temporaryadvancepaymentreceivable | 9,707,040.68 | 1-2years | 2.67 | 2,912,112.20 |
| No.3 | Temporaryadvancepaymentreceivable | 8,550,000.00 | 180days-1year | 2.35 | 855,000.00 |
| Debtors | Natureofreceivables | Closingbookbalance | Ages | Proportiontothetotalbalanceofotherreceivables(%) | Provisionforbaddebtsatthebalancesheetdate |
| No.4 | Securitydeposits | 6,068,877.68 | 2-3years | 1.67 | 1,820,663.30 |
| No.5 | Securitydeposits | 5,325,411.20 | 4-5years | 1.46 | 2,662,705.60 |
| Subtotal | 143,444,240.75 | 39.44 | 10,612,725.38 |
Note:Itincludes113,460,620.00yuanasperformancecompensationwithageof2to3years,298,779.19yuanastemporaryadvancepaymentreceivablewithageof3to5years,and33,512.00yuanastemporaryadvancepaymentreceivablewithageover5years.
7.Inventories
(1)Details
| Items | Closingbalance | Openingbalance | ||||
| Bookbalance | Provisionforwrite-down | Carryingamount | Bookbalance | Provisionforwrite-down | Carryingamount | |
| Rawmaterials | 124,680,011.55 | 17,707,425.98 | 106,972,585.57 | 179,291,553.12 | 10,856,535.28 | 168,435,017.84 |
| Workinprocess | 185,705,546.49 | 5,117,048.20 | 180,588,498.29 | 177,447,500.50 | 2,633,928.18 | 174,813,572.32 |
| Goodsonhand | 671,255,477.27 | 10,858,073.14 | 660,397,404.13 | 543,123,849.45 | 16,365,369.64 | 526,758,479.81 |
| Materialsonconsignmentforfurtherprocessing | 135,587.95 | 135,587.95 | 710,664.71 | 710,664.71 | ||
| Coststofulfillacontract | 23,135,561.21 | 23,135,561.21 | 10,320,302.27 | 10,320,302.27 | ||
| Total | 1,004,912,184.47 | 33,682,547.32 | 971,229,637.15 | 910,893,870.05 | 29,855,833.10 | 881,038,036.95 |
(2)Provisionforinventorywrite-down
1)Details
| Items | Openingbalance | Increase | Decrease | Closingbalance | ||
| Accrual | Others | Reversalorwrite-off | Others | |||
| Rawmaterials | 10,856,535.28 | 9,203,927.63 | 2,353,036.93 | 17,707,425.98 | ||
| Workinprocess | 2,633,928.18 | 2,675,381.31 | 192,261.29 | 5,117,048.20 | ||
| Goodsonhand | 16,365,369.64 | 3,963,683.30 | 9,470,979.80 | 10,858,073.14 | ||
| Total | 29,855,833.10 | 15,842,992.24 | 12,016,278.02 | 33,682,547.32 | ||
2)Determinationbasisofnetrealizablevalueandreasonsforthereversalorwrite-offofprovisionforinventorywrite-down
| Items | Determinationbasisofnetrealizablevalue | Reasonsforwrite-offofprovisionforinventorywrite-down |
| Rawmaterials,workinprocess | Estimatedsellingpriceofrelevantfinishedgoodslesscosttobeincurreduponcompletion,estimatedsellingexpenses,andrelevanttaxesandsurcharges | Inventorieswithprovisionforinventorywrite-downmadeatthebeginningoftheperiodwereusedorsoldinthecurrentperiod. |
| Goodsonhand | Estimatedsellingpriceofrelevantfinishedgoodslessestimatedselling | Inventorieswithprovisionforinventorywrite-downmadeatthe |
| Items | Determinationbasisofnetrealizablevalue | Reasonsforwrite-offofprovisionforinventorywrite-down |
| expenses,andrelevanttaxesandsurcharges | beginningoftheperiodweresoldinthecurrentperiod. |
(3)Coststofulfillacontract
| Items | Openingbalance | Increase | Carriedforward | Closingbalance |
| TownshipsewagedeliveryprojectphaseIIofHanshouCounty | 908,488.95 | 7,208,417.24 | 908,488.95 | 7,208,417.24 |
| KitchenprojectofShangraoGuangfengDistrict | 4,533,540.92 | 4,533,540.92 | ||
| Well-pointequipmentsalesofLeiyangCity | 1,815,112.42 | 1,815,112.42 | ||
| PretreatmentequipmentprocurementprojectofDuyunproject | 1,681,363.40 | 1,681,363.40 | ||
| LeachatedeliveryprojectofXi’anChanbaTransferStation | 1,117,852.48 | 1,117,852.48 | ||
| EquipmentsalesofYongshunCounty,XiangxiTujiaandMiaoAutonomousPrefecture-townshipsewage(Wanping) | 1,450,156.90 | 1,450,156.90 | ||
| LeachatedeliveryprojectofFuzhouQingliangshanTransferStation | 2,059,176.45 | 500,917.40 | 2,560,093.85 | |
| Others | 2,969,515.07 | 9,001,530.72 | 5,191,771.04 | 6,779,274.75 |
| Subtotal | 10,320,302.27 | 22,925,769.68 | 10,110,510.74 | 23,135,561.21 |
8.Contractassets
(1)Details
| Items | Closingbalance | ||
| Bookbalance | Provisionforimpairment | Carryingamount | |
| Qualityguaranteedepositsreceivable | 84,519,179.04 | 9,715,689.56 | 74,803,489.48 |
| Total | 84,519,179.04 | 9,715,689.56 | 74,803,489.48 |
(Continued)
| Items | Openingbalance | ||
| Bookbalance | Provisionforimpairment | Carryingamount | |
| Qualityguaranteedepositsreceivable | 116,355,489.32 | 15,331,634.99 | 101,023,854.33 |
| Total | 116,355,489.32 | 15,331,634.99 | 101,023,854.33 |
(2)Detailsonprovisionforimpairment
1)Detailsoncategories
| Categories | Closingbalance | ||||
| Bookbalance | Provisionforimpairment | Carryingamount | |||
| Amount | %tototal | Amount | Provisionproportion(%) | ||
| Receivableswithprovisionmadeonacollectivebasis | 84,519,179.04 | 100.00 | 9,715,689.56 | 11.50 | 74,803,489.48 |
| Total | 84,519,179.04 | 100.00 | 9,715,689.56 | 11.50 | 74,803,489.48 |
(Continued)
| Categories | Openingbalance | ||||
| Bookbalance | Provisionforimpairment | Carryingamount | |||
| Amount | %tototal | Amount | Provisionproportion(%) | ||
| Receivableswithprovisionmadeonacollectivebasis | 116,355,489.32 | 100.00 | 15,331,634.99 | 13.18 | 101,023,854.33 |
| Total | 116,355,489.32 | 100.00 | 15,331,634.99 | 13.18 | 101,023,854.33 |
2)Contractassetswithprovisionforimpairmentmadeonacollectivebasis
| Items | Closingbalance | ||
| Bookbalance | Provisionforimpairment | Provisionproportion(%) | |
| Portfoliogroupedwithqualityguaranteedeposits | 84,519,179.04 | 9,715,689.56 | 11.50 |
| Subtotal | 84,519,179.04 | 9,715,689.56 | 11.50 |
(3)Changesinprovisionforimpairment
| Items | Openingbalance | Increase/Decrease | Closingbalance | |||
| Accrual | Recoveryorreversal | Write-off | Others | |||
| Receivableswithprovisionforimpairmentmadeonacollectivebasis | 15,331,634.99 | -5,615,945.43 | 9,715,689.56 | |||
| Total | 15,331,634.99 | -5,615,945.43 | 9,715,689.56 | |||
9.Non-currentassetsduewithinoneyear
| Items | Closingbalance | ||||
| Bookbalance | Unrecognizedfinanceincome | Provisionforbaddebts | Carryingamount | Discountraterange(%) | |
| Salesofgoodsininstallments | 328,993,341.47 | 6,469,240.60 | 15,965,200.41 | 306,558,900.46 | 4.20-4.30 |
| Paymentsforfinancelease | 46,826,104.16 | 2,749,700.41 | 1,354,452.95 | 42,721,950.80 | 4.20-4.30 |
| Factoringofreceivablesfinancing | 215,722,449.48 | 9,685,000.00 | 3,235,836.74 | 202,801,612.74 | 4.20-4.30 |
| Total | 591,541,895.11 | 18,903,941.01 | 20,555,490.10 | 552,082,464.00 | |
(Continued)
| Items | Openingbalance | ||||
| Bookbalance | Unrecognizedfinanceincome | Provisionforbaddebts | Carryingamount | Discountraterange(%) | |
| Salesofgoodsininstallments | 433,440,778.60 | 8,785,866.67 | 21,166,538.93 | 403,488,373.00 | 4.30-4.65 |
| Paymentsforfinancelease | 58,791,768.45 | 2,263,633.33 | 895,847.05 | 55,632,288.07 | 4.30-4.65 |
| Factoringofreceivablesfinancing | 17,823,638.14 | 171,119.36 | 267,354.57 | 17,385,164.21 | 4.30-4.65 |
| Total | 510,056,185.19 | 11,220,619.36 | 22,329,740.55 | 476,505,825.28 | |
10.Othercurrentassets
(1)Details
| Items | Closingbalance | Openingbalance | ||||
| Bookbalance | Provisionforimpairment | Carryingamount | Bookbalance | Provisionforimpairment | Carryingamount | |
| InputVATtobecredited,excessinputVATcreditsandprepaidtaxes | 513,175,804.36 | 513,175,804.36 | 482,764,023.99 | 482,764,023.99 | ||
| Coststoobtainacontract | 10,704,601.44 | 10,704,601.44 | 9,306,113.04 | 9,306,113.04 | ||
| Listingexpensesofsubsidiaryspunoff | 5,380,660.39 | 5,380,660.39 | ||||
| Total | 523,880,405.80 | 523,880,405.80 | 497,450,797.42 | 497,450,797.42 | ||
(2)Coststoobtainacontract
| Items | Openingbalance | Increase | Amortization | Provisionforimpairment | Closingbalance |
| Coststoobtainacontract | 9,306,113.04 | 35,876,372.11 | 34,477,883.71 | 10,704,601.44 | |
| Subtotal | 9,306,113.04 | 35,876,372.11 | 34,477,883.71 | 10,704,601.44 |
11.Long-termreceivables
(1)Details
| Items | Closingbalance | ||||
| Bookbalance | Unrealizedfinanceincome | Provisionforbaddebts | Carryingamount | Discountraterange(%) | |
| Salesofgoodsininstallments | 474,463,111.30 | 28,883,881.35 | 69,637,094.56 | 375,942,135.39 | 4.20-4.30 |
| GuaranteedcollectionamountforBOTprojects | 32,146,788.99 | 3,759,737.26 | 1,607,339.45 | 26,779,712.28 | 4.30-4.65 |
| Paymentsforfinancelease | 21,422,534.54 | 1,929,467.83 | 486,521.79 | 19,006,544.92 | 4.20-4.30 |
| Factoringofreceivablesfinancing | 1,391,000.00 | 20,865.00 | 1,370,135.00 | 4.20-4.30 | |
| Total | 529,423,434.83 | 34,573,086.44 | 71,751,820.80 | 423,098,527.59 | |
(Continued)
| Items | Openingbalance | ||||
| Bookbalance | Unrealizedfinanceincome | Provisionforbaddebts | Carryingamount | Discountraterange(%) | |
| Salesofgoodsininstallments | 607,626,695.18 | 28,919,805.27 | 101,644,682.13 | 477,062,207.78 | 4.30-4.65 |
| GuaranteedcollectionamountforBOTprojects | 32,146,788.99 | 3,759,737.26 | 1,607,339.45 | 26,779,712.28 | 4.30-4.65 |
| Paymentsforfinancelease | 40,885,220.88 | 2,877,273.01 | 682,107.05 | 37,325,840.82 | 4.30-4.65 |
| Factoringofreceivablesfinancing | 421,616,855.59 | 24,329,491.82 | 6,324,252.83 | 390,963,110.94 | 4.30-4.65 |
| Total | 1,102,275,560.64 | 59,886,307.36 | 110,258,381.46 | 932,130,871.82 | |
(2)Changesinprovisionforbaddebts
1)Detailsoncategories
| Categories | Closingbalance | ||||
| Bookbalance | Provisionforimpairment | Carryingamount | |||
| Amount | %tototal | Amount | Provisionproportion(%) | ||
| Receivableswithprovisionforimpairmentmadeonanindividualbasis | 1,711,994.50 | 0.35 | 1,711,994.50 | 100.00 | |
| Receivableswithprovisionforimpairmentmadeonanindividualbasis | 493,138,353.89 | 99.65 | 70,039,826.30 | 14.20 | 423,098,527.59 |
| Total | 494,850,348.39 | 100.00 | 71,751,820.80 | 14.50 | 423,098,527.59 |
(Continued)
| Categories | Openingbalance | ||||
| Bookbalance | Provisionforimpairment | Carryingamount | |||
| Amount | %tototal | Amount | Provisionproportion(%) | ||
| Receivableswithprovisionmadeonacollectivebasis | 1,042,389,253.28 | 100.00 | 110,258,381.46 | 10.58 | 932,130,871.82 |
| Total | 1,042,389,253.28 | 100.00 | 110,258,381.46 | 10.58 | 932,130,871.82 |
2)Nosignificantlong-termreceivableswithprovisionforbaddebtsmadeonanindividualbasis.
3)Long-termreceivableswithprovisionforbaddebtsmadeonacollectivebasisusingageanalysismethod
| Ages | Closingbalance | ||
| Bookbalance | Provisionforbaddebts | Provisionproportion(%) | |
| Paymentsundue | 106,097,455.52 | 5,304,872.78 | 5.00 |
| Paymentsdue | 398,800,450.27 | 64,227,566.73 | 16.11 |
| Subtotal | 504,897,905.79 | 69,532,439.51 | 13.77 |
4)Long-termreceivableswithprovisionforbaddebtsusingthefive-levelclassification
| Items | Closingbalance | ||
| Bookbalance | Provisionforbaddebts | Provisionproportion(%) | |
| Portfoliogroupedwithfinanceleasepayment | 21,422,534.54 | 486,521.79 | 2.27 |
| Portfoliogroupedwithreceivablesfinancingfactoringpayment | 1,391,000.00 | 20,865.00 | 1.50 |
| Subtotal | 22,813,534.54 | 507,386.79 | 2.22 |
(3)Changesinprovisionforbaddebts
| Items | Openingbalance | Increase/Decrease | Closingbalance | |||
| Accrual | Recoveryorreversal | Write-off | Others | |||
| Receivableswithprovisionforimpairmentmadeonanindividualbasis | 1,711,994.50 | 1,711,994.50 | ||||
| Receivableswithprovisionforimpairmentmadeonacollectivebasis | 110,258,381.46 | -40,218,555.16 | 70,039,826.30 | |||
| Total | 110,258,381.46 | -38,506,560.66 | 71,751,820.80 | |||
12.Long-termequityinvestments
(1)Categories
| Items | Closingbalance | Openingbalance | ||||
| Bookbalance | Provisionforimpairment | Carryingamount | Bookbalance | Provisionforimpairment | Carryingamount | |
| Investmentsinassociates | 681,629,084.69 | 681,629,084.69 | 676,829,959.84 | 676,829,959.84 | ||
| Total | 681,629,084.69 | 681,629,084.69 | 676,829,959.84 | 676,829,959.84 | ||
(2)Details
| Investees | Openingbalance | Increase/Decrease | |||
| Investmentsincreased | Investmentsdecreased | Investmentincomerecognizedunderequitymethod | Adjustmentinothercomprehensiveincome | ||
| Associates | |||||
| TengineInnovation(Beijing)MonitoringInstrumentCo.,Ltd. | 29,631,523.07 | -1,821,854.32 | |||
| GuangdongShunkongEnvironmentalInvestmentCo.,Ltd. | 218,036,312.90 | 30,240,907.09 | |||
| GuangdongTianshuNewEnergyTechnologyCo.,Ltd.[Note1] | |||||
| ShantouZoomlionRuikangEnvironmentalSanitationServiceCo.,Ltd. | 21,960,846.16 | 2,546,071.11 | |||
| ShantouChaoyangDistrictZoomlionRuikangEnvironmentalSanitationServiceCo.,Ltd. | 31,419,699.92 | 647,839.13 | |||
| ChangshaCowaZoomlionIntelligentTechnologyCo.,Ltd. | 4,893,582.51 | -222,073.44 | |||
| GuangdongLiangkeEnvironmentalEngineeringCo.,Ltd. | 32,695,599.98 | 203,520.80 | |||
| Investees | Openingbalance | Increase/Decrease | |||
| Investmentsincreased | Investmentsdecreased | Investmentincomerecognizedunderequitymethod | Adjustmentinothercomprehensiveincome | ||
| GuangxiZoomlionGuilvUrbanEnvironmentalServiceCo.,Ltd. | 2,361,751.84 | 260,465.40 | |||
| ShenzhenYingmeiCityHousekeeperCo.,Ltd. | 28,165.29 | 41.05 | |||
| FoshanYingtongElectricalMaterialsCo.,Ltd. | 228,933,254.09 | -26,979,326.27 | |||
| ChinaUrbanInstitute(Beijing)EnvironmentalTechnologyCo.,Ltd. | 97,387,146.22 | 3,801,154.35 | |||
| BeijingXingyunZhixingTechnologyCo.,Ltd. | 9,482,077.86 | -816,487.88 | |||
| GuangdongYinglingTestingTechnologyServiceCo.,Ltd.[Note2] | |||||
| TaizhouJinzhongEnvironmentalIndustryCo.,Ltd. | 4,900,000.00 | -2,899,564.23 | |||
| Total | 676,829,959.84 | 4,900,000.00 | 4,960,692.79 | ||
(Continued)
| Investees | Increase/Decrease | Closingbalance | ||||
| Changesinotherequity | Cashdividend/Profitdeclaredfordistribution | Provisionforimpairment | Others | Carryingamount | Provisionforimpairment | |
| Associates | ||||||
| TengineInnovation(Beijing)MonitoringInstrumentCo.,Ltd. | 27,809,668.75 | |||||
| GuangdongShunkongEnvironmentalInvestmentCo.,Ltd. | 5,061,567.94 | 243,215,652.05 | ||||
| GuangdongTianshuNewEnergyTechnologyCo.,Ltd.[Note1] | ||||||
| ShantouZoomlionRuikangEnvironmentalSanitationServiceCo.,Ltd. | 24,506,917.27 | |||||
| ShantouChaoyangDistrictZoomlionRuikangEnvironmentalSanitationServiceCo.,Ltd. | 32,067,539.05 | |||||
| ChangshaCowaZoomlionIntelligentTechnologyCo.,Ltd. | 4,671,509.07 | |||||
| GuangdongLiangkeEnvironmentalEngineeringCo.,Ltd. | 32,899,120.78 | |||||
| GuangxiZoomlionGuilvUrbanEnvironmentalServiceCo.,Ltd. | 2,622,217.24 | |||||
| ShenzhenYingmeiCityHousekeeperCo.,Ltd. | 28,206.34 | |||||
| FoshanYingtongElectricalMaterialsCo.,Ltd. | 201,953,927.82 | |||||
| ChinaUrbanInstitute(Beijing)EnvironmentalTechnologyCo.,Ltd. | 101,188,300.57 | |||||
| BeijingXingyunZhixingTechnologyCo.,Ltd. | 8,665,589.98 | |||||
| GuangdongYinglingTestingTechnologyServiceCo.,Ltd.[Note2] | ||||||
| TaizhouJinzhongEnvironmentalIndustryCo.,Ltd. | 2,000,435.77 | |||||
| Total | 5,061,567.94 | 681,629,084.69 | ||||
Note1:Long-termequityinvestmentsof0.00yuaninGuangdongTianshuNewEnergyTechnologyCo.,Ltd.wasduetoitslong-termloss.Thecarryingamountofsuchlong-termequityinvestmentwasadjustedto0.00yuanbytheCompanyundertheequitymethod.Note2:Long-termequityinvestmentsof0.00yuaninGuangdongYinglingTestingTechnologyServiceCo.,Ltd.wasduetoitslong-termloss.Thecarryingamountofsuchlong-termequityinvestmentwasadjustedto0.00yuanbytheCompanyundertheequitymethod.
13.Otherequityinstrumentinvestments
| Items | Openingbalance | Increase/Decrease | |||
| Investmentsincreased | Investmentsdecreased | Gainsorlossesincludedintoothercomprehensiveincomeinthecurrentperiod | Others | ||
| ZhejiangShangyuRuralCommercialBankCo.,Ltd. | 800,000.00 | ||||
| ShenzhenInforeEnvironmentalProtectionIndustryFundManagementCo.,Ltd. | 270,000.00 | ||||
| ShenzhenInforeEnvironmentalProtectionIndustryM&AFund[Note] | 14,282,971.01 | ||||
| Total | 15,352,971.01 | ||||
(Continued)
| Items | Closingbalance | Dividendincomerecognizedinthecurrentperiod | Accumulatedgainsorlossesincludedintoothercomprehensiveincomeattheendoftheperiod |
| ZhejiangShangyuRuralCommercialBankCo.,Ltd. | 800,000.00 | 408,044.00 | |
| ShenzhenInforeEnvironmentalProtectionIndustryFundManagementCo.,Ltd. | 270,000.00 | ||
| ShenzhenInforeEnvironmentalProtectionIndustryM&AFund[Note] | 14,282,971.01 | ||
| Total | 15,352,971.01 | 408,044.00 |
Note:AsofDecember31,2023,ShenzhenInforeEnvironmentalProtectionIndustryM&AFundisstillinliquidation.
14.Investmentproperty
(1)Details
| Items | Buildingsandstructures | Total |
| Cost | ||
| Openingbalance | 29,071,100.66 | 29,071,100.66 |
| Items | Buildingsandstructures | Total |
| Increase | ||
| Decrease | 27,266,145.23 | 27,266,145.23 |
| 1)Disposal | 360,965.00 | 360,965.00 |
| 2)Transferredoutintofixedassets | 26,905,180.23 | 26,905,180.23 |
| Closingbalance | 1,804,955.43 | 1,804,955.43 |
| Accumulateddepreciationandamortization | ||
| Openingbalance | 1,965,665.63 | 1,965,665.63 |
| Increase | 88,593.04 | 88,593.04 |
| 1)Accrualoramortization | 88,593.04 | 88,593.04 |
| Decrease | 1,388,171.84 | 1,388,171.84 |
| 1)Disposal | 117,929.48 | 117,929.48 |
| 2)Transferredoutintofixedassets | 1,270,242.36 | 1,270,242.36 |
| Closingbalance | 666,086.83 | 666,086.83 |
| Closingcarryingamount | 1,138,868.60 | 1,138,868.60 |
| Openingcarryingamount | 27,105,435.03 | 27,105,435.03 |
(2)Investmentpropertywithcertificateoftitlesbeingunsettled
| Items | Carryingamount | Reasonsforunsettlement |
| ShangyuWandarealestate | 1,138,868.60 | Inprocessing |
| Subtotal | 1,138,868.60 |
15.Fixedassets
(1)Details
| Items | Buildingsandstructures | Generalequipment | Specialequipment | Transportfacilities | Otherequipment | Total |
| Cost | ||||||
| Openingbalance | 1,549,398,837.99 | 164,152,084.63 | 1,174,010,394.82 | 66,315,220.43 | 37,872,401.73 | 2,991,748,939.60 |
| Increase | 52,284,572.68 | 15,914,123.88 | 298,543,607.90 | 1,856,706.52 | 1,470,994.40 | 370,070,005.38 |
| 1)Acquisition | 3,474,388.92 | 10,351,560.25 | 251,273,170.38 | 1,856,706.52 | 1,470,994.40 | 268,426,820.47 |
| 2)Transferredinfromconstructioninprogress | 21,905,003.53 | 5,411,810.98 | 37,441,177.36 | 64,757,991.87 | ||
| 3)Businesscombination | 150,752.65 | 127,198.00 | 277,950.65 | |||
| 4)Transferredinfrominventories | 9,702,062.16 | 9,702,062.16 | ||||
| 5)Transferredinfrominvestmentproperty | 26,905,180.23 | 26,905,180.23 | ||||
| Decrease | 14,500.00 | 4,184,733.91 | 36,311,332.14 | 8,206,633.02 | 1,883,665.88 | 50,600,864.95 |
| 1)Disposal/Scrapping | 4,131,399.40 | 35,268,132.12 | 8,206,633.02 | 1,776,065.88 | 49,382,230.42 | |
| 2)Disposalofsubsidiaries | 14,500.00 | 53,334.51 | 1,043,200.02 | 107,600.00 | 1,218,634.53 | |
| Closingbalance | 1,601,668,910.67 | 175,881,474.60 | 1,436,242,670.58 | 59,965,293.93 | 37,459,730.25 | 3,311,218,080.03 |
| Accumulateddepreciation |
| Items | Buildingsandstructures | Generalequipment | Specialequipment | Transportfacilities | Otherequipment | Total |
| Openingbalance | 211,955,077.34 | 65,300,299.82 | 409,748,290.58 | 18,602,556.14 | 17,855,513.71 | 723,461,737.59 |
| Increase | 64,097,222.86 | 21,457,613.17 | 186,749,488.79 | 5,965,787.96 | 1,360,261.65 | 279,630,374.43 |
| 1)Accrual | 62,826,980.50 | 21,314,398.19 | 186,697,080.47 | 5,965,787.96 | 1,360,261.65 | 278,164,508.77 |
| 2)Businesscombination | 143,214.98 | 52,408.32 | 195,623.30 | |||
| 3)Transferredinfrominvestmentproperty | 1,270,242.36 | 1,270,242.36 | ||||
| Decrease | 14,065.00 | 3,673,714.78 | 19,965,831.24 | 4,791,734.14 | 1,744,810.97 | 30,190,156.13 |
| 1)Disposal/Scrapping | 3,643,672.74 | 19,142,825.69 | 4,791,734.14 | 1,653,857.30 | 29,232,089.87 | |
| 2)Disposalofsubsidiaries | 14,065.00 | 30,042.04 | 823,005.55 | 90,953.67 | 958,066.26 | |
| Closingbalance | 276,038,235.20 | 83,084,198.21 | 576,531,948.13 | 19,776,609.96 | 17,470,964.39 | 972,901,955.89 |
| Carryingamount | ||||||
| Closingbalance | 1,325,630,675.47 | 92,797,276.39 | 859,710,722.45 | 40,188,683.97 | 19,988,765.86 | 2,338,316,124.14 |
| Openingbalance | 1,337,443,760.65 | 98,851,784.81 | 764,262,104.24 | 47,712,664.29 | 20,016,888.02 | 2,268,287,202.01 |
(2)Nofixedassetstemporarilyidleatthebalancesheetdate.
(3)Fixedassetsleasedoutunderoperatingleases
| Items | Carryingamount |
| Buildingsandstructures | 22,736,364.29 |
| Subtotal | 22,736,364.29 |
(4)Fixedassetswithcertificateoftitlesbeingunsettled
| Items | Carryingamount | Reasonsforunsettlement |
| Integrationprojectplant | 302,783,876.40 | Inprocessing |
| EmployeedormitoryinLueryuan | 135,358,752.00 | Inprocessing |
| BottomrenovationworkshopinLueryuan | 21,125,640.93 | Inprocessing |
| LueryuanExhibitionCenter | 15,696,091.03 | Inprocessing |
| StaffcanteeninLueryuan | 22,984,574.86 | Inprocessing |
| Subtotal | 497,948,935.22 |
16.Constructioninprogress
(1)Details
| Projects | Closingbalance | Openingbalance | ||||
| Bookbalance | Provisionforimpairment | Carryingamount | Bookbalance | Provisionforimpairment | Carryingamount | |
| InforeEnvironmentShundeEnvironmentalProtectionTechnologyIndustrialPark(PhaseII)Project | 256,519,519.36 | 256,519,519.36 | ||||
| Equipmenttobeinstalled | 19,134,556.95 | 19,134,556.95 | 16,211,018.08 | 16,211,018.08 | ||
| Piecemealprojects | 12,402,942.58 | 12,402,942.58 | 24,862,249.60 | 24,862,249.60 | ||
| Total | 288,057,018.89 | 288,057,018.89 | 41,073,267.68 | 41,073,267.68 | ||
(2)Changesinsignificantprojects
| Projects | Budgets | Openingbalance | Increase | Transferredtofixedassets | Transferredtointangibleassets | Otherdecreases | Closingbalance |
| InforeEnvironmentShundeEnvironmentalProtectionTechnologyIndustrialPark(PhaseII)Project | 483,333,200.00 | 256,519,519.36 | 256,519,519.36 | ||||
| Equipmenttobeinstalled | 16,211,018.08 | 21,439,852.20 | 7,036,652.70 | 11,479,660.63 | 19,134,556.95 | ||
| Piecemealprojects | 24,862,249.60 | 45,469,636.25 | 57,721,339.17 | 207,604.10 | 12,402,942.58 | ||
| Total | 41,073,267.68 | 323,429,007.81 | 64,757,991.87 | 11,687,264.73 | 288,057,018.89 |
(Continued)
| Projects | Accumulatedinputtobudget(%) | Completionpercentage(%) | Accumulatedamountofborrowingcostcapitalization | Amountofborrowingcostcapitalizationinthecurrentperiod | Annualcapitalizationrate(%) | Fundsource |
| InforeEnvironmentShundeEnvironmentalProtectionTechnologyIndustrialPark(PhaseII)Project | 54.95 | 54.95 | 2,716,000.00 | 2,716,000.00 | 0.73 | Self-raised,long-termborrowings |
| Equipmenttobeinstalled | Self-raised | |||||
| Piecemealprojects | Self-raised | |||||
| Total | 2,716,000.00 | 2,716,000.00 |
17.Right-of-useassets
| Items | Buildingsandstructures | Total |
| Cost | ||
| Openingbalance | 46,849,639.86 | 46,849,639.86 |
| Increase | 2,440,036.08 | 2,440,036.08 |
| 1)Leasedin | 2,440,036.08 | 2,440,036.08 |
| Decrease | 9,387,245.15 | 9,387,245.15 |
| 1)Disposal | 9,387,245.15 | 9,387,245.15 |
| Closingbalance | 39,902,430.79 | 39,902,430.79 |
| Accumulateddepreciation | ||
| Openingbalance | 14,990,185.62 | 14,990,185.62 |
| Increase | 8,706,270.90 | 8,706,270.90 |
| 1)Accrual | 8,706,270.90 | 8,706,270.90 |
| Decrease | 8,919,697.68 | 8,919,697.68 |
| 1)Disposal | 8,919,697.68 | 8,919,697.68 |
| Closingbalance | 14,776,758.84 | 14,776,758.84 |
| Carryingamount | ||
| Closingbalance | 25,125,671.95 | 25,125,671.95 |
| Openingbalance | 31,859,454.24 | 31,859,454.24 |
18.Intangibleassets
(1)Details
| Items | Landuseright | Software | Franchise | Patentedtechnology | Total |
| Cost | |||||
| Openingbalance | 657,565,927.37 | 70,369,281.83 | 6,775,246,738.14 | 459,379,594.21 | 7,962,561,541.55 |
| Increase | 7,152,320.00 | 14,940,796.49 | 659,915,003.74 | 32,917,511.29 | 714,925,631.52 |
| 1)Acquisition | 7,152,320.00 | 3,253,531.76 | 659,915,003.74 | 670,320,855.50 | |
| 2)Transferredinfromconstructioninprocess | 11,687,264.73 | 11,687,264.73 | |||
| 3)IndependentR&D | 32,917,511.29 | 32,917,511.29 | |||
| Decrease | 362,058,343.47 | 3,536,938.02 | 365,595,281.49 | ||
| 1)Disposal | 24,255,438.09 | 3,536,938.02 | 27,792,376.11 | ||
| 2)Transferredoutintoothernon-currentassets | 337,802,905.38 | 337,802,905.38 | |||
| Closingbalance | 664,718,247.37 | 85,310,078.32 | 7,073,103,398.41 | 488,760,167.48 | 8,311,891,891.58 |
| Accumulatedamortization | |||||
| Openingbalance | 85,065,544.63 | 23,500,971.70 | 1,486,964,648.90 | 271,140,604.91 | 1,866,671,770.14 |
| Increase | 13,707,737.35 | 8,023,452.35 | 488,433,164.54 | 37,144,253.06 | 547,308,607.30 |
| 1)Accrual | 13,707,737.35 | 8,023,452.35 | 488,433,164.54 | 37,144,253.06 | 547,308,607.30 |
| Decrease | 130,675,779.15 | 634,634.14 | 131,310,413.29 | ||
| 1)Disposal | 20,113,600.89 | 634,634.14 | 20,748,235.03 | ||
| 2)Transferredoutintoothernon-currentassets | 110,562,178.26 | 110,562,178.26 | |||
| Closingbalance | 98,773,281.98 | 31,524,424.05 | 1,844,722,034.29 | 307,650,223.83 | 2,282,669,964.15 |
| Provisionforimpairment | |||||
| Openingbalance | 24,687,522.85 | 23,087,884.07 | 47,775,406.92 | ||
| Increase | |||||
| Decrease | 2,902,303.88 | 2,902,303.88 | |||
| 1)Disposal | 2,902,303.88 | 2,902,303.88 | |||
| Closingbalance | 24,687,522.85 | 20,185,580.19 | 44,873,103.04 | ||
| Carryingamount | |||||
| Closingbalance | 565,944,965.39 | 53,785,654.27 | 5,203,693,841.27 | 160,924,363.46 | 5,984,348,824.39 |
| Openingbalance | 572,500,382.74 | 46,868,310.13 | 5,263,594,566.39 | 165,151,105.23 | 6,048,114,364.49 |
(2)Nolanduserightwithcertificateoftitlesbeingunsettledatthebalancesheetdate.
19.Developmentexpenditures
(1)Details
| Items | Closingbalance | Openingbalance | ||||
| Bookbalance | Provisionforimpairment | Carryingamount | Bookbalance | Provisionforimpairment | Carryingamount | |
| Developmentexpenditures | 9,063,080.60 | 9,063,080.60 | 33,160,925.44 | 2,822,707.36 | 30,338,218.08 | |
| Total | 9,063,080.60 | 9,063,080.60 | 33,160,925.44 | 2,822,707.36 | 30,338,218.08 | |
(2)OtherremarksPleaserefertosectionVIofnotestothefinancialstatementsfordetailsondevelopmentexpenditures.
20.Goodwill
(1)Details
| Investeesoreventsresultingingoodwill | Closingbalance | Openingbalance | ||||
| Bookbalance | Provisionforimpairment | Carryingamount | Bookbalance | Provisionforimpairment | Carryingamount | |
| ZoomlionEnvironmentalCompany | 5,714,428,315.99 | 618,097,980.83 | 5,096,330,335.16 | 5,714,428,315.99 | 528,229,356.55 | 5,186,198,959.44 |
| GreenOrientalCompany | 65,456,185.12 | 65,456,185.12 | 78,074,688.12 | 78,074,688.12 | ||
| FoshanShunheEnvironmentalProtectionCo.,Ltd.[Note] | 329,083,984.91 | 3,152,463.61 | 325,931,521.30 | 316,465,481.91 | 316,465,481.91 | |
| ShangfengIndustrialCompany | 100,455,813.40 | 100,455,813.40 | 100,455,813.40 | 100,455,813.40 | ||
| YolshCompany | 13,389,232.61 | 13,389,232.61 | 13,389,232.61 | 13,389,232.61 | ||
| LianjiangCompany | 46,032,017.84 | 2,229,729.76 | 43,802,288.08 | 46,032,017.84 | 1,013,513.53 | 45,018,504.31 |
| Total | 6,268,845,549.87 | 623,480,174.20 | 5,645,365,375.67 | 6,268,845,549.87 | 529,242,870.08 | 5,739,602,679.79 |
Note:OnDecember25,2023,theCompany’ssubsidiaryFoshanInforeEnvironmentalWaterTreatmentCo.,Ltd.changeditsnametoFoshanShunheEnvironmentalProtectionCo.,Ltd.
(2)Cost
| Investeesoreventsresultingingoodwill | Openingbalance | Increase[Note] | Decrease[Note] | Closingbalance |
| ZoomlionEnvironmentalCompany | 5,714,428,315.99 | 5,714,428,315.99 | ||
| GreenOrientalCompany | 78,074,688.12 | 12,618,503.00 | 65,456,185.12 | |
| FoshanShunheEnvironmentalProtectionCo.,Ltd. | 316,465,481.91 | 12,618,503.00 | 329,083,984.91 | |
| ShangfengIndustrialCompany | 100,455,813.40 | 100,455,813.40 | ||
| YolshCompany | 13,389,232.61 | 13,389,232.61 | ||
| LianjiangCompany | 46,032,017.84 | 46,032,017.84 | ||
| Total | 6,268,845,549.87 | 12,618,503.00 | 12,618,503.00 | 6,268,845,549.87 |
Note:Pursuanttothe“EquityTransferAgreement”enteredintoinDecember2023,GreenOrientalCompanytransferred100%ofequityofFunanCompanytoFoshanShunheEnvironmentalProtectionCo.,Ltd.,withgoodwillof12,618,503.00yuantransferredoutaccordingly,whichisaportionofthegoodwillof78,074,688.12
yuanformerlyformedintheCompany’sacquisitionofGreenOrientalCompany.
(3)Provisionforimpairment
| Investeesoreventsresultingingoodwill | Openingbalance | Increase | Decrease | Closingbalance |
| ZoomlionEnvironmentalCompany[Note1] | 528,229,356.55 | 89,868,624.28 | 618,097,980.83 | |
| LianjiangCompany[Note2] | 1,013,513.53 | 1,216,216.23 | 2,229,729.76 | |
| FoshanShunheEnvironmentalProtectionCo.,Ltd.[Note3] | 3,152,463.61 | 3,152,463.61 | ||
| Total | 529,242,870.08 | 94,237,304.12 | 623,480,174.20 |
Note1:ForimpairmentlossofgoodwillofZoomlionEnvironmentalCompany,asthegoodwillof92,031,026.04yuanwasrecognizedatthetimeoftheacquisitionofZoomlionEnvironmentalCompanythroughdeferredtaxliabilitiesduetoappraisalappreciationatthedateofbusinesscombinationnotundercommoncontrol,provisionforimpairmentof3,857,982.20yuanwasmadealongwithchangesindeferredtaxliabilitiesinthecurrentperiod.Theaccumulatedprovisionforimpairmentofgoodwillarisingfromthisfactortotaled56,757,490.15yuan.Impairmentlossof86,010,642.08yuanwasrecognizedatthedifferencebetweentherecoverableamountandthecarryingamountofequipmentassetgroupportfolioofZoomlionEnvironmentalCompany,andtheaccumulatedprovisionforimpairmentofgoodwillarisingfromthisfactortotaled561,340,490.68yuan.Note2:ForimpairmentlossofgoodwillofLianjiangCompany,asthegoodwillof30,000,000.00yuanwasrecognizedatthetimeoftheacquisitionofLianjiangCompanythroughdeferredtaxliabilitiesduetoappraisalappreciationatthedateofbusinesscombinationnotundercommoncontrol,provisionforimpairmentof1,216,216.23yuanwasmadealongwithchangesindeferredtaxliabilitiesinthecurrentperiod.Theaccumulatedprovisionforimpairmentofgoodwillarisingfromthisfactortotaled2,229,729.76yuan.Note3:Impairmentlossof2,161,796.44yuanwasrecognizedatthedifferencebetweentherecoverableamountandthecarryingamountofwatergovernanceoperationassetgroup,andtheaccumulatedprovisionforimpairmentofgoodwillarisingfromthisfactortotaled2,161,796.44yuan.Impairmentlossof990,667.17yuanwasrecognizedbasedonthedifferencebetweenrecoverableamountandcarryingamountofFunanCompanyintheurban-ruralsanitationintegratedoperationassetgroupportfolio.Theaccumulatedprovisionforimpairmentofgoodwillarisingfromthisfactortotaled990,667.17yuan.
(4)Relatedinformationofassetgroupsorassetgroupportfolioswhichincludegoodwill
1)Relatedinformationofassetgroupsorassetgroupportfolios
| Assetgroupsorassetgroupportfolios | Compositionofassetgroupsorassetgroupportfoliosanditsbasis | Operatingsegmentanditsbasis | Whetherassetgroupsorassetgroupportfoliosareconsistentwiththoseatacquisitiondate/atgoodwillimpairmenttestingdateinpreviousyears |
| Sanitationvehiclesandequipmentmanufacturingandsalesassetgroup | Operatinglong-termassetsofZoomlionEnvironmentalCompany(manufacturingandsalesofsanitationvehiclesandequipment),andChangshaZhongbiaoEnvironmentalIndustryCo., | ZoomlionEnvironmentalCompany(manufacturingandsalesofsanitationvehiclesandequipment)andChangshaZhongbiaoEnvironmentalIndustryCo.,Ltd. | Yes |
| Assetgroupsorassetgroupportfolios | Compositionofassetgroupsorassetgroupportfoliosanditsbasis | Operatingsegmentanditsbasis | Whetherassetgroupsorassetgroupportfoliosareconsistentwiththoseatacquisitiondate/atgoodwillimpairmenttestingdateinpreviousyears |
| Ltd. | |||
| Urban-ruralsanitationintegratedoperationassetgroupportfolio | Operatinglong-termassetsofZoomlionEnvironmentalCompany(sanitationintegratedoperation),GreenOrientalCompany,FunanCompany,HuaianChenjieEnvironmentalEngineeringCo.,Ltd.,BiyangCountyFengheNewEnergyPowerCo.,Ltd.,andLianjiangCompany | ZoomlionEnvironmentalCompany(sanitationintegratedoperation),GreenOrientalCompany,FunanCompany,HuaianChenjieEnvironmentalEngineeringCo.,Ltd.,BiyangCountyFengheNewEnergyPowerCo.,Ltd.,LianjiangCompany | Yes[Note] |
| Watergovernanceoperationassetgroup | Operatinglong-termassetsofFoshanShunheEnvironmentalProtectionCo.,Ltd.(watertreatmentbusiness) | FoshanShunheEnvironmentalProtectionCo.,Ltd.(watertreatmentbusiness) | Yes |
| Ventilationequipmentmanufacturingandsalesassetgroup | Operatinglong-termassetsofShangfengIndustrialCompany | ShangfengIndustrialCompany | Yes |
| Electricalequipmentmanufacturingandsalesassetgroup | Operatinglong-termassetsofYolshCompany | YolshCompany | Yes |
Note:InDecember2018,ZoomlionEnvironmentalCompany,whichwasacquiredunderbusinesscombinationundercommoncontrolbytheCompany,hadtwoassetgroups,i.e.,sanitationvehiclesandequipmentmanufacturingandsalesassetgroupandurban-ruralsanitationintegratedoperationassetgroup(includingwastetransfer,landfillandtreatment).DataoforiginalgoodwillattheformationofZoomlionEnvironmentalCompanywasbasedonthefairvalueoftheidentifiablenetassetsasattheendofJune2017underasset-basedmethodintheappraisalreportnumberedZhongRuiPingBaoZi[2017]110731042,withoutconsideringthesynergybetweentheurban-ruralsanitationintegratedoperationassetgroupofZoomlionEnvironmentalCompanyandthewasteincinerationpowergenerationoperationassetgroupofformerGreenOrientalCompany.AfterthebusinesscombinationofZoomlionEnvironmentalCompany,asitsurban-ruralsanitationintegratedoperationassetgroupandthewasteincinerationpowergenerationoperationassetgroupofGreenOrientalCompanyweresimilarintermsofbusinessacquisition,productionandoperationactivities,andcashreturnrealizationmethods,andtheManagementhadstartedtocarryoutintegratedmanagement,thesetwoassetgroupswereidentifiedastheurban-ruralsanitationintegratedoperationassetgroupportfolio.TheCompanyacquiredLianjiangCompanythroughbusinesscombinationnotundercommoncontrolinFebruary2022.AfterthebusinesscombinationofLianjiangCompany,asitsassetgroupandurban-ruralsanitationintegratedoperationassetgroupandthewasteincinerationpowergenerationoperationassetgroupoftheCompanyweresimilarintermsofbusinessacquisition,productionandoperationactivities,andcashreturnrealizationmethods,andtheManagementhadcarriedoutintegratedmanagement,theassetgroupofLianjiangCompanywasidentifiedastheurban-ruralsanitationintegratedoperationassetgroupportfolio.
(5)Specificmethodfordeterminingrecoverableamount
1)Recoverableamountdeterminedbasedonthefairvaluelesscostsofdisposal
| Items | Carryingamountofassetgroupsorassetgroupportfolioswhichincludegoodwill | Recoverableamount | Provisionforimpairment |
| Urban-ruralsanitationintegratedoperationassetgroupportfolio | 198,587,216.61 | 197,596,549.44 | 990,667.17 |
| Watergovernanceoperationassetgroup | 433,349,512.21 | 431,187,715.77 | 2,161,796.44 |
| Subtotal | 631,936,728.82 | 628,784,265.21 | 3,152,463.61 |
(Continued)
| Items | Determinationmethodoffairvalueandcostsofdisposal | Keyparametersanddeterminationbasis |
| Urban-ruralsanitationintegratedoperationassetgroupportfolio | Determinedbasedonthesubsequentdisposalpriceoftheassetgroup | Equitydisposalprice,disposalexpensesincurredafterthebalancesheetdate,non-operatingassets,liabilities,workingcapital,etc.asstipulatedinthe“EquityTransferAgreement”signedbytheCompany |
| Watergovernanceoperationassetgroup |
2)Recoverableamountdeterminedbasedonthepresentvalueofestimatedfuturecashflows
| Items | Carryingamountofassetgroupsorassetgroupportfolioswhichincludegoodwill[Note1] | Recoverableamount[Note2] | Provisionforimpairment |
| Sanitationvehiclesandequipmentmanufacturingandsalesassetgroup | 11,619,748,317.81 | 11,451,100,000.00 | 86,010,642.08 |
| Urban-ruralsanitationintegratedoperationassetgroupportfolio[Note3] | 4,600,796,416.27 | 4,969,530,000.00 | |
| Ventilationequipmentmanufacturingandsalesassetgroup | 302,264,770.42 | 447,883,111.44 | |
| Electricalequipmentmanufacturingandsalesassetgroup | 44,643,222.78 | 53,492,386.65 | |
| Subtotal | 16,567,452,727.28 | 16,922.005,498.09 | 86,010,642.08 |
Note1:Thegoodwilloftheassetgroupportfoliohasincludedtheportionattributabletonon-controllingshareholders.CostoforiginalgoodwillofZoomlionEnvironmentalCompanyof5.714billionyuanwasreallocatedtothesanitationvehiclesandequipmentmanufacturingandsalesassetgroupandurban-ruralsanitationintegratedoperationassetgroupportfoliobasedonthepercentagesofgrossprofitcontributedbythetwobusinesses,with
5.636billionyuanand78millionyuanreallocated,respectively.Note2:Thepresentvalueofestimatedfuturecashflows(recoverableamount)ofsanitationvehiclesandequipmentmanufacturingandsalesassetgroupwasbasedontheappraisalreportnumberedZhongRuiPingBaoZi[2024]300596issuedbyChungruiWorldunionAssetsAppraisalGroupCo.,Ltd.Thepresentvalueofestimatedfuturecashflows(recoverableamount)ofurban-ruralsanitationintegratedoperationassetgroupportfoliowasbasedontheappraisalreportnumberedZhongRuiPingBaoZi[2024]300557issuedbyChungruiWorldunionAssetsAppraisalGroupCo.,Ltd.andtheappraisalreportnumberedJunRuiPing
BaoZi[2024]065issuedbyShenzhenJunruiAssetsAppraisalsLLP.Note3:Itdoesnotincludetheportionofurban-ruralsanitationintegratedoperationassetgroup,whichhasbeentransferredoutunderequitytransferagreementafterthebalancesheetdate.(Continued)
| Items | Forecastperiod(years) | Parametersincludingrevenuegrowthrateandgrossmarginforforecastperiodandtheirdeterminationbasis | Parametersincludingrevenuegrowthrateandgrossmarginforstableperiodandtheirdeterminationbasis | Discountrateanditsdeterminationbasis[Note4] |
| Sanitationvehiclesandequipmentmanufacturingandsalesassetgroup | 5 | [Note1] | Therevenuegrowthrateis0 | 10.71% |
| Urban-ruralsanitationintegratedoperationassetgroupportfolio | [Note1] | [Note1] | [Note1] | 8.95%-8.97% |
| Ventilationequipmentmanufacturingandsalesassetgroup | 5 | [Note2] | Therevenuegrowthrateis0 | 11.01% |
| Electricalequipmentmanufacturingandsalesassetgroup | 5 | [Note3] | Therevenuegrowthrateis0 | 12.93% |
Note1:TherecoverableamountofassetgroupsandassetgroupportfoliosisestimatedbasedonthebusinesscharacteristicsofdifferentassetgroupsorassetgroupportfoliosaccordingtothebudgetapprovedbytheManagement.Therevenuegrowthrateoftheproductproductionandsalesassetgroupin2024isbasedontheexistingorders,historicaldataandoperatingbudget,whiletheexpenserateisbasedontheaverageexpenserateofthepreviousthreeyears,incombinationwiththereasonableincomegrowth,capitaldepreciationandlaborcostgrowthinthefuture;foroperationassetgroupsorassetgroupportfolios,duetothelargedifferenceinincomeandgrossprofitmarginbetweentheinvestmentperiodandperiodofmaturityofPPPoperatingprojects,theexpectedgrowthrate,stableperiodgrowthrateandprofitrateoftheassetgroupsandassetgroupportfoliosshowanirregulardistributionwhenmultipleprojectsareruninparallel,andtheincome,costsandexpensesareestimatedbasedonthetimetomatureoperationanddesigncapacityofeachspecificproject.Note2:Therevenuegrowthrateofventilationequipmentmanufacturingandsalesassetgroupduringtheforecastperiodfrom2024to2028is13.40%,4.00%,3.00%,2.00%and1.00%,respectively,whicharedeterminedbasedontheCompany’shistoricalannualoperatingperformance,growthrates,existingorders,andtheManagement’sexpectationsformarketdevelopment.Note3:Therevenuegrowthrateofelectricalequipmentmanufacturingandsalesassetgroupduringtheforecastperiodfrom2024to2028is105.08%,25.00%,30.00%,35.00%and40.00%,respectively,whicharedeterminedbasedontheCompany’shistoricalannualoperatingperformance,growthrates,existingorders,andtheManagement’sexpectationsformarketdevelopment.Note4:Discountrate:determinedbasedonweightedaveragecostofcapital(WACC),costofequitycapitalandcostofliabilities.
21.Long-termprepayments
| Items | Openingbalance | Increase | Amortization | Otherdecreases | Closingbalance |
| Expendituresonimprovementofleased-infixedassets | 25,781,580.05 | 6,548,947.45 | 8,722,846.35 | 23,607,681.15 | |
| Others | 4,429,355.86 | 7,108,859.69 | 4,015,099.21 | 7,523,116.34 | |
| Total | 30,210,935.91 | 13,657,807.14 | 12,737,945.56 | 31,130,797.49 |
22.Deferredtaxassetsanddeferredtaxliabilities
(1)Deferredtaxassetsbeforeoffset
| Items | Closingbalance | Openingbalance | ||
| Deductibletemporarydifference | Deferredtaxassets | Deductibletemporarydifference | Deferredtaxassets | |
| Provisionforimpairmentofassets | 697,808,362.88 | 107,271,372.72 | 668,318,234.13 | 102,350,161.93 |
| Unrealizedprofitfrominternaltransactions | 20,475,833.05 | 3,071,374.96 | 22,214,585.93 | 3,332,187.89 |
| Deductiblelosses | 47,114,527.25 | 8,894,435.03 | 47,115,916.60 | 8,894,782.37 |
| Leaseliabilities | 26,136,462.82 | 4,103,472.14 | ||
| Total | 791,535,186.00 | 123,340,654.85 | 737,648,736.66 | 114,577,132.19 |
(2)Deferredtaxliabilitiesbeforeoffset
| Items | Closingbalance | Openingbalance | ||
| Taxabletemporarydifference | Deferredtaxliabilities | Taxabletemporarydifference | Deferredtaxliabilities | |
| Accelerateddepreciationoffixedassets | 26,637,066.56 | 4,698,936.18 | 24,481,935.20 | 3,672,290.28 |
| Assetsappraisalappreciationduetobusinesscombinationnotundercommoncontrol | 267,111,526.85 | 45,461,139.37 | 448,250,679.76 | 50,535,337.80 |
| Right-of-useassets | 25,125,671.95 | 3,951,853.51 | ||
| Total | 318,874,265.36 | 54,111,929.06 | 472,732,614.96 | 54,207,628.08 |
(3)Deferredtaxassetsorliabilitiesafteroffset
| Items | Closingbalance | Openingbalance | ||
| Deferredtaxassetsoffsetbydeferredtaxliabilities | Deferredtaxassets/liabilitiesafteroffset | Deferredtaxassetsoffsetbydeferredtaxliabilities | Deferredtaxassets/liabilitiesafteroffset | |
| Deferredtaxassets | 6,892,349.21 | 116,448,305.64 | 114,577,132.19 | |
| Deferredtaxliabilities | 6,892,349.21 | 47,219,579.85 | 54,207,628.08 | |
(4)Detailsofunrecognizeddeferredtaxassets
| Items | Closingbalance | Openingbalance |
| Deductibletemporarydifference | 825,763,726.98 | 510,065,399.73 |
| Deductiblelosses | 749,514,337.17 | 596,581,457.35 |
| Unrealizedprofitfrominternaltransactions | 364,794,037.67 | 343,937,402.32 |
| Total | 1,940,072,101.82 | 1,450,584,259.40 |
(5)Maturityyearsofdeductiblelossesofunrecognizeddeferredtaxassets
| Maturityyears | Closingbalance | Openingbalance | Remarks |
| Year2023 | 24,742,029.97 | ||
| Year2024 | 86,322,391.77 | 82,954,604.70 | |
| Year2025 | 187,721,684.90 | 206,033,354.21 | |
| Year2026 | 94,150,648.91 | 97,279,157.08 | |
| Year2027 | 175,149,966.49 | 185,572,311.39 | |
| Year2028 | 206,169,645.10 | ||
| Total | 749,514,337.17 | 596,581,457.35 |
23.Othernon-currentassets
(1)Details
| Items | Closingbalance | ||
| Bookbalance | Provisionforimpairment | Carryingamount | |
| Assetstobedisposalof | 227,240,727.12 | 227,240,727.12 | |
| Contractassets–Qualityguaranteedepositreceivable | 164,081,168.47 | 21,618,229.88 | 142,462,938.59 |
| Advancesforlong-termassets | 55,114,043.37 | 55,114,043.37 | |
| Coststoobtainacontract | 63,666,470.76 | 63,666,470.76 | |
| Receivablesforagentconstruction | 8,518,174.25 | 8,518,174.25 | |
| Total | 518,620,583.97 | 30,136,404.13 | 488,484,179.84 |
(Continued)
| Items | Openingbalance | ||
| Bookbalance | Provisionforimpairment | Carryingamount | |
| Contractassets–Qualityguaranteedepositreceivable | 154,548,259.36 | 17,968,552.02 | 136,579,707.34 |
| Advancesforlong-termassets | 93,266,692.04 | 93,266,692.04 | |
| Coststoobtainacontract | 68,565,164.58 | 68,565,164.58 | |
| Receivablesforagentconstruction | 8,518,174.25 | 8,518,174.25 | |
| Total | 324,898,290.23 | 17,968,552.02 | 306,929,738.21 |
(2)Contractassets
1)Details
| Items | Closingbalance | ||
| Bookbalance | Provisionforimpairment | Carryingamount | |
| Contractassets–Qualityguaranteedepositreceivable | 164,081,168.47 | 21,618,229.88 | 142,462,938.59 |
| Total | 164,081,168.47 | 21,618,229.88 | 142,462,938.59 |
(Continued)
| Items | Openingbalance | ||
| Bookbalance | Provisionforimpairment | Carryingamount | |
| Contractassets–Qualityguaranteedepositreceivable | 154,548,259.36 | 17,968,552.02 | 136,579,707.34 |
| Total | 154,548,259.36 | 17,968,552.02 | 136,579,707.34 |
2)Detailsonprovisionforimpairmenta.Detailsoncategories
| Categories | Closingbalance | ||||
| Bookbalance | Provisionforimpairment | Carryingamount | |||
| Amount | %tototal | Amount | Provisionproportion(%) | ||
| Receivableswithprovisionmadeonacollectivebasis | 164,081,168.47 | 100.00 | 21,618,229.88 | 13.18 | 142,462,938.59 |
| Total | 164,081,168.47 | 100.00 | 21,618,229.88 | 13.18 | 142,462,938.59 |
(Continued)
| Categories | Openingbalance | ||||
| Bookbalance | Provisionforimpairment | Carryingamount | |||
| Amount | %tototal | Amount | Provisionproportion(%) | ||
| Receivableswithprovisionmadeonacollectivebasis | 154,548,259.36 | 100.00 | 17,968,552.02 | 11.63 | 136,579,707.34 |
| Total | 154,548,259.36 | 100.00 | 17,968,552.02 | 11.63 | 136,579,707.34 |
b.Contractassetswithprovisionforimpairmentmadeonacollectivebasis
| Portfolios | Closingbalance | ||
| Bookbalance | Provisionforimpairment | Provisionproportion(%) | |
| Portfoliogroupedwithqualityguaranteedeposits | 164,081,168.47 | 21,618,229.88 | 13.18 |
| Subtotal | 164,081,168.47 | 21,618,229.88 | 13.18 |
3)Changesinprovisionforimpairmenta.Details
| Items | Openingbalance | Increase/Decrease | Closingbalance | |||
| Accrual | Recoveryorreversal | Write-off | Others | |||
| Receivableswithprovisionforimpairmentmadeonacollectivebasis | 17,968,552.02 | 4,018,806.01 | 369,128.15 | 21,618,229.88 | ||
| Total | 17,968,552.02 | 4,018,806.01 | 369,128.15 | 21,618,229.88 | ||
b.Nosignificantprovisionscollectedorreversedinthecurrentperiod.
(3)Coststoobtainacontract
| Items | Openingbalance | Increase | Amortization | Provisionforimpairment | Closingbalance |
| Coststoobtainacontract | 68,565,164.58 | 25,071,451.76 | 29,970,145.58 | 63,666,470.76 | |
| Subtotal | 68,565,164.58 | 25,071,451.76 | 29,970,145.58 | 63,666,470.76 |
24.Assetswithtitleoruserightrestrictions
(1)Details
1)Detailsonassetswithrestrictionsatthebalancesheetdate
| Items | Closingbookbalance | Closingcarryingamount | Typeofrestrictions | Reasonsforrestrictions |
| Cashandbankbalances | 495,231,329.24 | 495,231,329.24 | Guaranteed,frozen,etc. | Deposits,escrowaccount,frozenduetolitigationpreservation |
| Notesreceivable–Bankacceptance | 4,472,210.78 | 4,472,210.78 | Endorsedordiscounted | Endorsedordiscountedbutundue |
| Notesreceivable–Tradeacceptance | 407,749.04 | 349,861.59 | Endorsedordiscounted | Endorsedordiscountedbutundue |
| Accountsreceivable | 357,237,223.82 | 338,232,491.18 | Pledged | Pledged |
| Receivablesfinancing | 55,280,364.20 | 55,280,364.20 | Pledged | Pledged |
| Long-termreceivablesandnon-currentassetsduewithinoneyear | 66,695,425.00 | 61,841,516.63 | Recoursefactoring,pledged | Recoursefactoring,pledged |
| Fixedassets | 72,439,458.40 | 27,881,359.42 | Mortgaged | Mortgaged |
| Intangibleassets | 84,779,751.51 | 77,778,795.88 | Mortgaged | Mortgaged |
| 100%ofequityofBiyangCountyFengheNewEnergyPowerCo.,Ltd. | 105,047,950.25 | 105,047,950.25 | Pledged | Pledged[Note] |
| Items | Closingbookbalance | Closingcarryingamount | Typeofrestrictions | Reasonsforrestrictions |
| 100%ofequityofFunanCompany | 78,720,044.41 | 78,720,044.41 | Pledged | |
| 100%ofequityofPoyangGreenOrientalRenewableEnergyCo.,Ltd. | 76,768,690.77 | 76,768,690.77 | Pledged | |
| 75%ofequityofLianjiangCompany | 112,692,107.66 | 112,692,107.66 | Pledged | |
| 25%ofequityofLianjiangCompany | 37,564,035.89 | 37,564,035.89 | Frozen | Frozenduetolitigationpreservation |
| Total | 1,547,336,340.97 | 1,471,860,757.90 |
Note:ThepledgedamountreferstotheCompany’sproportionateshareofnetassetsintheseentities.
2)Detailsonassetswithrestrictionsatthebeginningofcurrentperiod
| Items | Openingbookbalance | Openingcarryingamount | Typeofrestrictions | Reasonsforrestrictions |
| Cashandbankbalances | 147,538,284.47 | 147,538,284.47 | Guaranteed,frozen,etc. | Securitydeposits,escrowaccount,frozenduetolitigationpreservation |
| Notesreceivable–Bankacceptance | 2,732,733.00 | 2,732,733.00 | Endorsedordiscounted | Endorsedordiscountedbutundue |
| Notesreceivable–Tradeacceptance | 5,422,499.62 | 4,836,352.06 | Endorsedordiscounted | Endorsedordiscountedbutundue |
| Accountsreceivable | 276,390,131.13 | 273,691,152.48 | Pledged | Pledged |
| Receivablesfinancing | 42,293,141.00 | 42,293,141.00 | Pledged | Pledged |
| Long-termreceivablesandnon-currentassetsduewithinoneyear | 66,716,222.75 | 60,356,875.95 | Recoursefactoring | Recoursefactoring |
| Fixedassets | 561,518,592.09 | 477,655,980.05 | Mortgaged | Mortgaged |
| Intangibleassets | 56,073,651.51 | 47,082,404.81 | Mortgaged | Mortgaged |
| 100%ofequityofFunanCompany | 69,631,957.01 | 69,631,957.01 | Pledged | Pledged[Note] |
| 100%ofequityofPoyangGreenOrientalRenewableEnergyCo.,Ltd. | 80,733,192.59 | 80,733,192.59 | Pledged | |
| 50%ofequityofLianjiangCompany | 68,922,363.62 | 68,922,363.62 | Pledged | |
| 100%ofequityofBiyangCountyFengheNewEnergyPowerCo.,Ltd. | 105,525,597.14 | 105,525,597.14 | Pledged | |
| 25%ofequityofLianjiangCompany | 34,461,181.81 | 34,461,181.81 | Frozen | Frozenduetolitigationpreservation |
| Total | 1,517,959,547.74 | 1,415,461,215.99 |
Note:ThepledgedamountreferstotheCompany’sproportionateshareofnetassetsintheseentities.
25.Short-termborrowings
| Items | Closingbalance | Openingbalance |
| Guaranteedborrowings | 66,077,658.34 | 281,942,622.11 |
| Pledgedborrowings | 29,830,000.00 | |
| Mortgagedborrowings | 18,018,500.00 | 18,020,900.00 |
| Creditborrowings | 8,006,821.92 | 140,139,583.33 |
| Pledgedandguaranteedborrowings | 5,006,875.00 | |
| Total | 126,939,855.26 | 440,103,105.44 |
26.Notespayable
| Items | Closingbalance | Openingbalance |
| Tradeacceptance | 58,782,211.43 | 222,877,645.46 |
| Bankacceptance | 2,235,494,340.03 | 2,292,351,647.71 |
| Total | 2,294,276,551.46 | 2,515,229,293.17 |
27.Accountspayable
(1)Details
| Items | Closingbalance | Openingbalance |
| Paymentsforgoods | 2,580,677,947.96 | 2,547,048,086.70 |
| Paymentsforengineeringandequipment | 240,704,266.86 | 164,908,990.42 |
| Others | 97,161,489.64 | 60,004,194.54 |
| Total | 2,918,543,704.46 | 2,771,961,271.66 |
(2)Nomaterialclosingbalancewithageoveroneyear.
28.Contractliabilities
(1)Details
| Items | Closingbalance | Openingbalance |
| Paymentsforgoodsreceivedinadvance | 290,854,742.72 | 247,747,809.30 |
| Rebateforcustomers | 15,922,430.85 | 26,542,168.95 |
| Total | 306,777,173.57 | 274,289,978.25 |
(2)Nomaterialclosingbalancewithageoveroneyear.
29.Employeebenefitspayable
(1)Details
| Items | Openingbalance | Increase | Decrease | Closingbalance |
| Short-termemployeebenefits | 405,398,080.74 | 2,467,413,107.42 | 2,385,539,192.67 | 487,271,995.49 |
| Post-employmentbenefits-definedcontributionplan | 1,991,692.81 | 119,076,238.47 | 118,435,010.78 | 2,632,920.50 |
| Terminationbenefits | 2,184,245.17 | 19,327,584.57 | 20,515,905.75 | 995,923.99 |
| Total | 409,574,018.72 | 2,605,816,930.46 | 2,524,490,109.20 | 490,900,839.98 |
(2)Detailsofshort-termemployeebenefits
| Items | Openingbalance | Increase | Decrease | Closingbalance |
| Wage,bonus,allowanceandsubsidy | 389,433,590.07 | 2,301,824,431.43 | 2,219,899,492.88 | 471,358,528.62 |
| Employeewelfarefund | 767,326.06 | 60,407,067.82 | 59,534,554.49 | 1,639,839.39 |
| Items | Openingbalance | Increase | Decrease | Closingbalance |
| Socialinsurancepremium | 833,759.70 | 61,992,305.12 | 61,878,494.51 | 947,570.31 |
| Including:Medicarepremium | 768,080.23 | 55,857,687.14 | 55,764,342.50 | 861,424.87 |
| Occupationalinjuriespremium | 65,679.47 | 6,134,617.98 | 6,114,152.01 | 86,145.44 |
| Housingprovidentfund | 1,806,925.39 | 36,374,491.24 | 36,548,481.56 | 1,632,935.07 |
| Tradeunionfundandemployeeeducationfund | 12,556,479.52 | 6,814,811.81 | 7,678,169.23 | 11,693,122.10 |
| Subtotal | 405,398,080.74 | 2,467,413,107.42 | 2,385,539,192.67 | 487,271,995.49 |
(3)Detailsofdefinedcontributionplan
| Items | Openingbalance | Increase | Decrease | Closingbalance |
| Basicendowmentinsurancepremium | 1,595,528.10 | 115,104,704.80 | 114,149,325.50 | 2,550,907.40 |
| Unemploymentinsurancepremium | 396,164.71 | 3,971,533.67 | 4,285,685.28 | 82,013.10 |
| Subtotal | 1,991,692.81 | 119,076,238.47 | 118,435,010.78 | 2,632,920.50 |
30.Taxesandratespayable
| Items | Closingbalance | Openingbalance |
| VAT | 86,581,679.18 | 66,918,012.44 |
| Enterpriseincometax | 27,900,731.55 | 36,440,528.78 |
| Individualincometaxwithheldfortaxauthorities | 4,803,397.21 | 3,778,293.58 |
| Urbanmaintenanceandconstructiontax | 506,023.66 | 1,991,056.41 |
| Housingpropertytax | 1,191,074.92 | 2,606,954.11 |
| Landusetax | 1,168,188.55 | 157,193.04 |
| Stampduty | 1,433,178.29 | 1,661,333.48 |
| Educationsurcharge | 252,330.39 | 845,859.65 |
| Localeducationsurcharge | 135,999.15 | 562,045.06 |
| Others | 59,328.23 | 6,950.33 |
| Total | 124,031,931.13 | 114,968,226.88 |
31.Otherpayables
(1)Details
| Items | Closingbalance | Openingbalance |
| Recoursefactoringofaccountsreceivable[Note] | 22,660,825.00 | 66,789,887.39 |
| Temporaryreceiptspayable | 354,511,622.56 | 297,006,996.69 |
| Securitydeposits | 165,161,284.82 | 129,748,015.42 |
| Others | 167,608,092.39 | 163,577,388.03 |
| Items | Closingbalance | Openingbalance |
| Total | 709,941,824.77 | 657,122,287.53 |
Note:ThebalancereferstotherecoursefactoringofaccountsreceivablemadebyZoomlionEnvironmentalCompanytothenon-bankfinancialinstitutions.However,asnon-bankfinancialinstitutionshavetherighttorequestZoomlionEnvironmentalCompanytorepurchasetheaccountsreceivableiftheyareoverdue,theaccountsreceivableshallnotbederecognized,andthereceiptsoffactoringshallberecognizedasotherpayables.
(2)Nomaterialclosingbalancewithageoveroneyear.
32.Non-currentliabilitiesduewithinoneyear
| Items | Closingbalance | Openingbalance |
| Long-termborrowingsduewithinoneyear | 387,310,047.45 | 555,746,357.94 |
| Leaseliabilitiesduewithinoneyear | 8,613,396.84 | 4,673,226.74 |
| Long-termpayablesduewithinoneyear | 9,104,000.00 | 599,514.91 |
| Total | 405,027,444.29 | 561,019,099.59 |
33.Othercurrentliabilities
| Items | Closingbalance | Openingbalance |
| OutputVATtoberecognized | 36,931,126.97 | 31,616,947.24 |
| Total | 36,931,126.97 | 31,616,947.24 |
34.Long-termborrowings
| Items | Closingbalance | Openingbalance |
| Pledgedborrowings | 200,179,577.30 | 454,467,547.52 |
| Mortgagedborrowings | 154,000,000.00 | |
| Guaranteedborrowings | 47,300,000.00 | 70,029,166.64 |
| Creditborrowings | 90,650,000.00 | 18,800,000.00 |
| Mortgagedandguaranteedborrowings | 150,000,000.00 | |
| Pledgedandguaranteedborrowings | 1,392,227,274.43 | 1,229,009,512.16 |
| Total | 1,884,356,851.73 | 1,922,306,226.32 |
35.Bondspayable
(1)Details
| Items | Closingbalance | Openingbalance |
| Convertiblecorporatebonds | 1,360,603,802.12 | 1,308,690,556.32 |
| Total | 1,360,603,802.12 | 1,308,690,556.32 |
(2)Currentperiodmovements(notincludingotherfinancialinstrumentssuchaspreferredshares/perpetualbonds
classifiedasfinancialliabilities)
| Bonds | Parvalue | Couponrate(%) | Issuingdate | Maturity | Amountoutstanding | Whetherdefault |
| Inforeconvertiblebonds | 100.00 | [Note] | 11/4/2020 | 6years | 1,476,189,600.00 | No |
| Subtotal | 100.00 | 1,476,189,600.00 |
(Continued)
| Bonds | Openingbalance | Currentperiodissuance | Parvalueinterest | Premium/Discountamortization | Currentperiodrepayment | Convertedtoshares | Fundsreturnedduetoconversionofbondsintoshares | Closingbalance |
| Inforeconvertiblebonds | 1,308,690,556.32 | 13,440,998.27 | 50,289,412.70 | 11,808,996.02 | 8,157.13 | 12.02 | 1,360,603,802.12 | |
| Subtotal | 1,308,690,556.32 | 13,440,998.27 | 50,289,412.70 | 11,808,996.02 | 8,157.13 | 12.02 | 1,360,603,802.12 |
Note:Thecouponrateis0.20%inthefirstyear,0.50%inthesecondyear,0.80%inthethirdyear,1.50%inthefourthyear,1.80%inthefifthyearand2.00%inthesixthyear.
(3)ConvertingconditionsandtimeofconvertiblebondsUnderthe“ApprovalofthePublicOfferingofConvertibleBondsbyInforeEnvironmentTechnologyGroupCo.,Ltd.”issuedbyChinaSecuritiesRegulatoryCommission(ZhengJianXuKe[2020]2219)datedSeptember10,2020,onNovember4,2020,theCompanyissuedpubliclyconvertiblebondsof1,476,189,600yuan,withatotalissuanceof14,761,896pieces,andatermof6years.Thecouponrateoftheconvertiblebondsissuedthistimeis
0.20%inthefirstyear,0.50%inthesecondyear,0.80%inthethirdyear,1.50%inthefourthyear,1.80%inthefifthyear,and2.00%inthesixthyear.Interestoftheconvertiblecorporatebondsispaidonceayear,andprincipalandthelastyear’sinterestarepaidatmaturity.TheCompanywillredeemallconvertiblebondsnotconvertedbyinvestorsatthe110%oftheparvalue(includingthelastyear’sinterest)within5tradingdaysuponmaturityoftheconvertiblebondsissuedthistime.Thedurationoftheconvertiblebondsissuedthistimeis6yearsfromthedateofissuance,thatis,fromNovember4,2020toNovember3,2026.Theinitialconversionpriceoftheconvertiblebondsissuedthistimeis8.31yuan/share;theconversionperiodoftheconvertiblebondsissuedthistimestartsfromthefirsttradingday(May10,2021)aftertheexpirationofsixmonthsfromtheenddateoftheissuanceonNovember10,2020tothematuritydateoftheconvertiblebonds(November3,2026).AsofDecember31,2023,atotalof1,389InforeconvertiblebondshadbeenconvertedtotheCompany’sordinaryAshares,withatotalof16,944sharesconverted.Inthecurrentperiod,capitalreserve(sharepremium)of8,673.60yuanwasrecognizedatthedifferencebetweenthecarryingamountoftheconvertiblebondsactuallyconvertedandotherequityinstrumentsandsharecapitalincreasedduetoactualconversionofbondsintoshares.
36.Leaseliabilities
| Items | Closingbalance | Openingbalance |
| Items | Closingbalance | Openingbalance |
| Unpaidleasepayments | 17,036,813.59 | 24,948,023.12 |
| Less:Unrecognizedfinancingexpenses | 866,022.83 | 1,692,398.82 |
| Total | 16,170,790.76 | 23,255,624.30 |
37.Long-termpayables
(1)Details
| Items | Closingbalance | Openingbalance |
| Long-termpayables | 15,173,333.32 | |
| Specialpayables | 287,776,139.63 | 315,735,814.91 |
| Total | 302,949,472.95 | 315,735,814.91 |
(2)Long-termpayables
| Items | Closingbalance | Openingbalance |
| Factoringfundspayable | 15,173,333.32 | |
| Subtotal | 15,173,333.32 |
(3)Specialpayables
| Items | Openingbalance | Increase | Decrease | Closingbalance | Reasonsforbalance |
| Specialfundsfortreasurybondprojects | 3,000,000.00 | 3,000,000.00 | Fundsfromconversionoftreasurybondsintoloans. | ||
| SpecialfundsforJiayuSewageTreatmentProject | 176,015,774.58 | 9,475,977.00 | 27,203,971.75 | 158,287,779.83 | SpecialgovernmentfundsforPPPprojects. |
| SpecialfundsforTongshanSewageTreatmentProject | 136,720,040.33 | 3,144,000.00 | 13,375,680.53 | 126,488,359.80 | SpecialgovernmentfundsforPPPprojects. |
| Subtotal | 315,735,814.91 | 12,619,977.00 | 40,579,652.28 | 287,776,139.63 |
38.Provisions
| Items | Closingbalance | Openingbalance | Reasonsforbalance |
| Creditguarantees | 1,994,511.41 | 4,575,049.22 | Guaranteeforbuyer’scredit |
| Total | 1,994,511.41 | 4,575,049.22 |
39.Deferredincome
(1)Details
| Items | Openingbalance | Increase | Decrease | Closingbalance | Reasonsforbalance |
| Governmentgrants | 120,890,710.04 | 3,994,300.00 | 9,544,515.62 | 115,340,494.42 | Governmentgrantsrelatedtoassets |
| Total | 120,890,710.04 | 3,994,300.00 | 9,544,515.62 | 115,340,494.42 |
(2)Otherremarks
PleaserefertosectionVIII(II)ofnotestothefinancialstatementsfordetailsongovernmentgrantsincludedintoprofitorloss.
40.Othernon-currentliabilities
| Items | Closingbalance | Openingbalance |
| Centralspecialconstructionfunds | 8,148,148.14 | 8,333,333.33 |
| Total | 8,148,148.14 | 8,333,333.33 |
41.Sharecapital
(1)Details
| Items | Openingbalance | Movements | Closingbalance | ||||
| Issueofnewshares | Bonusshares | Conversionofreservetoshares | Others | Subtotal | |||
| Totalshares | 3,179,505,559.00 | 1,111.00 | 1,111.00 | 3,179,506,670.00 | |||
(2)OtherremarksTheCompanyconvertedconvertiblecorporatebondswithparvalueof9,000yuanintotheCompany’sordinaryAsharesof1,111shares,withcapitalpremium(sharepremium)recognizedat8,673.60yuan.
42.Otherequityinstruments
(1)PleaserefertosectionV(I)35ofnotestofinancialstatementsforbasicinformationofconvertiblecorporatebondsoutstandingatthebalancesheetdate.
(2)Currentperiodmovementsoffinancialinstrumentssuchaspreferredsharesorperpetualbondsoutstandingatthebalancesheetdate
| Items | Openingbalance | Increase | Decrease | Closingbalance | ||||
| Quantity | Carryingamount | Quantity | Carryingamount | Quantity | Carryingamount | Quantity | Carryingamount | |
| Convertiblecorporatebonds | 14,760,597 | 266,916,341.80 | 90 | 1,627.47 | 14,760,507 | 266,914,714.33 | ||
| Total | 14,760,597 | 266,916,341.80 | 90 | 1,627.47 | 14,760,507 | 266,914,714.33 | ||
Note:AsofDecember31,2023,convertiblecorporatebondswithparvalueof9,000yuanhadbeenconvertedintoordinaryAshares,withotherequityinstrumentsdecreasedby1,627.47yuanaccordingly.
43.Capitalreserve
(1)Details
| Items | Openingbalance | Increase | Decrease | Closingbalance |
| Capitalpremium(sharepremium) | 9,604,610,324.24 | 164,826.05 | 1,277,359.26 | 9,603,497,791.03 |
| Othercapitalreserve | 57,900,930.24 | 57,900,930.24 |
| Items | Openingbalance | Increase | Decrease | Closingbalance |
| Total | 9,662,511,254.48 | 164,826.05 | 1,277,359.26 | 9,661,398,721.27 |
(2)Otherremarks
1)Currentincreaseofcapitalpremium(sharepremium)wasmainlydueto:
a.theconversionofconvertiblecorporatebondswithparvalueof9,000yuanintotheCompany’sordinaryAsharesof1,111shares,withcapitalpremium(sharepremium)recognizedat8,673.60yuan;b.thedifferenceof156,152.45yuanbetweenthereducedregisteredcapitalof38,423,985.00yuanofthesubsidiaryXiantaoYingheEnvironmentalProtectionCo.,Ltd.basedontheresolutionofitsshareholders’meetinginDecember2023andtheproportionateshareinnetassetscontinuouslycalculatedfromtheacquisitiondateorcombinationdate.
2)Currentdecreaseofcapitalpremium(sharepremium)wasmainlyduetothedifferenceof1,277,359.26yuanbetweentheconsiderationforacquisitionof4%ofequityofthesubsidiaryHuaianChenjieEnvironmentalEngineeringCo.,Ltd.inJune2023andtheproportionateshareinnetassetscontinuouslycalculatedfromtheacquisitiondateorcombinationdate.
44.Treasuryshares
| Items | Openingbalance | Increase | Decrease | Closingbalance |
| Treasuryshares | 94,132,795.17 | 94,132,795.17 | ||
| Total | 94,132,795.17 | 94,132,795.17 |
45.Othercomprehensiveincome(OCI)
| Items | Openingbalance | Currentperiodcumulative | Closingbalance | |||||
| NetOCIaftertax | Less:OCIpreviouslyrecognizedbuttransferredtoretainedearningsinthecurrentperiod(attributabletoparentcompanyaftertax) | |||||||
| Currentperiodcumulativebeforeincometax | Less:OCIpreviouslyrecognizedbuttransferredtoprofitorlossinthecurrentperiod | Less:Incometaxexpenses | Attributabletoparentcompany | Attributabletonon-controllingshareholders | ||||
| Itemsnottobereclassifiedsubsequentlytoprofitorloss | -4,630,000.00 | -4,630,000.00 | ||||||
| Including:Changesinfairvalueofotherequityinstrumentinvestments | -4,630,000.00 | -4,630,000.00 | ||||||
| Total | -4,630,000.00 | -4,630,000.00 | ||||||
46.Specialreserve
| Items | Openingbalance | Increase | Decrease | Closingbalance |
| Worksafetyfund | 8,608,843.62 | 8,608,843.62 | ||
| Total | 8,608,843.62 | 8,608,843.62 |
47.Surplusreserve
(1)Details
| Items | Openingbalance | Increase | Decrease | Closingbalance |
| Statutorysurplusreserve | 315,124,767.92 | 63,892,252.27 | 379,017,020.19 | |
| Total | 315,124,767.92 | 63,892,252.27 | 379,017,020.19 |
(2)OtherremarksCurrentincreaseof63,892,252.27yuanwasduetotheappropriationofstatutorysurplusreserveat10%ofnetprofitgeneratedbytheparentcompanyinthecurrentperiod.
48.Undistributedprofit
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Openingbalance | 3,963,306,890.06 | 3,874,934,971.69 |
| Add:Netprofitattributabletoownersoftheparentcompany | 498,383,730.00 | 418,794,179.13 |
| Less:Appropriationofstatutorysurplusreserve | 63,892,252.27 | 18,369,884.36 |
| Dividendpayableonordinaryshares | 348,363,541.68 | 312,052,376.40 |
| Closingbalance | 4,049,434,826.11 | 3,963,306,890.06 |
(II)Notestoitemsoftheconsolidatedincomestatement
1.Operatingrevenue/Operatingcost
(1)Details
| Items | Currentperiodcumulative | Precedingperiodcomparative | ||
| Revenue | Cost | Revenue | Cost | |
| Mainoperations | 12,593,195,441.07 | 9,725,483,452.68 | 12,206,399,059.56 | 9,429,679,886.47 |
| Otheroperations | 37,855,526.27 | 19,998,635.24 | 49,593,878.86 | 39,830,944.80 |
| Total | 12,631,050,967.34 | 9,745,482,087.92 | 12,255,992,938.42 | 9,469,510,831.27 |
| Including:Revenuefromcontractswithcustomers | 12,627,471,564.83 | 9,743,083,609.80 | 12,253,033,163.91 | 9,467,213,554.61 |
(2)Breakdownofrevenue
1)Breakdownofrevenuefromcontractswithcustomersbygoodsorservices
| Items | Currentperiodcumulative | Precedingperiodcomparative | ||
| Revenue | Cost | Revenue | Cost | |
| Intelligentsanitation | 10,715,122,532.51 | 8,366,738,029.63 | 10,242,746,845.76 | 8,023,297,059.91 |
| Otherbusinesses | 1,912,349,032.32 | 1,376,345,580.17 | 2,010,286,318.15 | 1,443,916,494.70 |
| Subtotal | 12,627,471,564.83 | 9,743,083,609.80 | 12,253,033,163.91 | 9,467,213,554.61 |
2)Breakdownofrevenuefromcontractswithcustomersbyoperatingregions
| Items | Currentperiodcumulative | Precedingperiodcomparative | ||
| Revenue | Cost | Revenue | Cost | |
| Domestic | 12,580,574,554.53 | 9,709,744,510.62 | 12,234,221,595.20 | 9,451,301,571.85 |
| Overseas | 46,897,010.30 | 33,339,099.18 | 18,811,568.71 | 15,911,982.76 |
| Subtotal | 12,627,471,564.83 | 9,743,083,609.80 | 12,253,033,163.91 | 9,467,213,554.61 |
3)Breakdownofrevenuefromcontractswithcustomersbytimeoftransferringgoodsorrenderingservices
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Recognizedatapointintime | 5,853,953,110.98 | 6,705,692,980.49 |
| Recognizedovertime | 6,773,518,453.85 | 5,547,340,183.42 |
| Subtotal | 12,627,471,564.83 | 12,253,033,163.91 |
2.Taxesandsurcharges
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Urbanmaintenanceandconstructiontax | 19,347,236.29 | 27,686,507.84 |
| Educationsurcharge | 9,237,216.76 | 12,075,573.31 |
| Housingpropertytax | 16,056,747.97 | 9,759,719.80 |
| Landusetax | 9,274,170.36 | 8,282,959.61 |
| Localeducationsurcharge | 4,897,252.61 | 7,807,835.47 |
| Stampduty | 9,430,645.45 | 7,540,686.80 |
| Vehicleandvesselusetax | 1,791,754.71 | 1,481,678.21 |
| Environmentalprotectiontax | 22,817.10 | 50,061.01 |
| Others | 33,747.82 | |
| Total | 70,091,589.07 | 74,685,022.05 |
3.Sellingexpenses
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Employeebenefits | 335,609,966.84 | 340,290,000.65 |
| Marketingexpensesandagencyfees | 265,269,393.83 | 221,534,865.64 |
| Businessentertainmentexpenses | 48,124,800.71 | 47,320,675.86 |
| Officeexpenses | 44,084,358.46 | 39,159,155.49 |
| Expensesfortenderingandbidding | 23,714,813.45 | 33,479,432.56 |
| Vehicleusagefees | 26,437,459.78 | 27,886,649.81 |
| Businesstravellingexpenses | 24,235,527.24 | 22,889,790.05 |
| Depreciationandamortization | 2,564,157.65 | 8,871,711.08 |
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| After-salesserviceexpenses | 9,468,198.50 | 8,427,436.37 |
| Share-basedpayments | 789,290.58 | |
| Others | 14,826,275.56 | 12,321,839.86 |
| Total | 794,334,952.02 | 762,970,847.95 |
4.Administrativeexpenses
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Employeebenefits | 405,851,793.11 | 325,720,014.09 |
| Depreciationandamortization | 96,124,324.58 | 92,377,339.97 |
| Officeexpenses | 55,346,741.42 | 49,435,534.41 |
| Businessentertainmentexpenses | 57,420,506.69 | 47,088,220.88 |
| Agencyconsultingfees | 49,770,146.66 | 38,554,467.66 |
| Vehicleusagefees | 11,285,144.00 | 15,346,887.97 |
| Businesstravellingexpenses | 12,998,629.92 | 9,732,527.31 |
| Repairfees | 3,476,335.42 | 2,863,363.74 |
| Share-basedpayments | 1,905,828.75 | |
| Others | 33,885,615.65 | 26,577,495.45 |
| Total | 726,159,237.45 | 609,601,680.23 |
5.R&Dexpenses
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Employeebenefits | 246,795,666.58 | 248,961,357.20 |
| Directinputs | 34,669,099.04 | 40,506,455.35 |
| Otherexpenses | 62,565,473.71 | 50,336,437.55 |
| Share-basedpayments | 971,457.24 | |
| Total | 344,030,239.33 | 340,775,707.34 |
6.Financialexpenses
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Interestexpenses | 156,635,777.38 | 170,568,834.86 |
| Interestincome | -99,626,077.56 | -86,389,951.68 |
| Gainsandlossesonforeignexchange | -1,587,128.38 | -3,056,908.33 |
| Others | 19,898,513.43 | 20,717,449.06 |
| Total | 75,321,084.87 | 101,839,423.91 |
7.Otherincome
| Items | Currentperiodcumulative | Precedingperiodcomparative | Amountincludedinnon-recurringprofitorloss |
| Governmentgrantsrelatedtoassets | 9,544,515.62 | 8,085,032.61 | 2,128,328.14 |
| Governmentgrantsrelatedtoincome | 69,450,144.75 | 93,590,019.49 | 50,838,222.61 |
| Refundofhandlingfeesforwithholdingindividualincometax | 424,735.51 | 429,102.26 | |
| VATextradeductions | 40,567,420.41 | 17,460,524.12 | |
| Total | 119,986,816.29 | 119,564,678.48 | 52,966,550.75 |
8.Investmentincome
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Investmentincomefromlong-termequityinvestmentsunderequitymethod | 4,960,692.79 | 8,548,481.77 |
| Gainsfromfairvalueremeasurementatthetimeofobtainingcontrol | 51,896,314.25 | |
| Investmentincomefromfinancialproducts | 12,111,406.99 | 19,091,108.25 |
| Performancecompensation | -50,000,000.00 | |
| Lossesfromdebtrestructuring | -3,130,560.92 | -5,380,200.00 |
| Gainsfromnon-recursefactoringofaccountsreceivable | -64,671,667.09 | -65,918,373.23 |
| Others | -867,077.69 | 296,543.34 |
| Total | -51,597,205.92 | -41,466,125.62 |
9.Creditimpairmentloss
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Baddebts | -218,933,128.92 | -103,391,907.05 |
| Creditguaranteeloss | 2,580,537.81 | -1,445,255.37 |
| Total | -216,352,591.11 | -104,837,162.42 |
10.Assetsimpairmentloss
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Inventorywrite-downloss | -15,842,992.24 | -15,053,708.82 |
| Impairmentlossofgoodwill | -94,237,304.12 | -296,010,591.93 |
| Impairmentlossofothernon-currentassets | -12,686,044.85 | 2,080,536.79 |
| Impairmentlossofcontract | 5,615,945.43 | -1,192,023.34 |
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| assets | ||
| Impairmentlossofdevelopmentexpenditures | -6,240,373.24 | -2,822,707.36 |
| Total | -123,390,769.02 | -312,998,494.66 |
11.Gainsonassetdisposal
| Items | Currentperiodcumulative | Precedingperiodcomparative | Amountincludedinnon-recurringprofitorloss |
| Gainsondisposaloffixedassets | -661,936.68 | 301,250.20 | -661,936.68 |
| Gainsondisposalofintangibleassets | -529,889.14 | 10,073.29 | -529,889.14 |
| Gainsondisposalofright-of-useassets | 221,473.23 | ||
| Total | -1,191,825.82 | 532,796.72 | -1,191,825.82 |
12.Non-operatingrevenue
| Items | Currentperiodcumulative | Precedingperiodcomparative | Amountincludedinnon-recurringprofitorloss |
| Gainsondamageorretirementofnon-currentassets | 428,721.52 | 8,797.04 | 428,721.52 |
| Penaltyandconfiscatoryincome | 14,363,825.53 | 9,298,430.37 | 14,363,825.53 |
| Others | 5,054,158.55 | 3,491,008.49 | 5,054,158.55 |
| Total | 19,846,705.60 | 12,798,235.90 | 19,846,705.60 |
13.Non-operatingexpenditures
| Items | Currentperiodcumulative | Precedingperiodcomparative | Amountincludedinnon-recurringprofitorloss |
| Donationexpenditures | 1,837,168.20 | 2,302,553.92 | 1,837,168.20 |
| Lossesondamageorretirementofnon-currentassets | 2,654,891.96 | 2,913,020.22 | 2,654,891.96 |
| Specialfundsforlocalwaterconservancyconstruction | 490,964.79 | 409,764.78 | |
| Penaltyandconfiscatoryexpenses | 6,546,510.22 | 6,695,894.28 | 6,546,510.22 |
| Others | 1,501,531.02 | 1,626,755.62 | 1,501,531.02 |
| Total | 13,031,066.19 | 13,947,988.82 | 12,540,101.40 |
14.Incometaxexpenses
(1)Details
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Currentperiodincometaxexpenses | 106,216,873.13 | 110,132,217.76 |
| Deferredincometaxexpenses | -8,859,221.68 | -13,168,974.08 |
| Total | 97,357,651.45 | 96,963,243.68 |
(2)Reconciliationofaccountingprofittoincometaxexpenses
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Profitbeforetax | 609,901,840.51 | 556,255,365.25 |
| Incometaxexpensesbasedontaxrateapplicabletotheparentcompany | 152,475,460.13 | 139,063,841.31 |
| Effectofdifferenttaxrateapplicabletosubsidiaries | -108,201,596.08 | -14,174,894.59 |
| Effectofpriorincometaxreconciliation | 10,458,266.74 | 2,488,907.40 |
| Effectofnon-taxableincome | -1,995,800.61 | -10,408,754.85 |
| Effectofnon-deductiblecosts,expensesandlosses | 17,657,279.37 | 10,640,861.01 |
| Effectofutilizationofdeductiblelossesnotpreviouslyrecognizedasdeferredtaxassets | -13,171,099.82 | -3,001,651.62 |
| Effectofdeducibletemporarydifferencesordeductiblelossesnotrecognizedasdeferredtaxassetsinthecurrentperiod | 86,948,728.47 | 20,910,057.40 |
| Effectofextradeduction | -46,798,282.51 | -49,866,353.99 |
| Differencebetweendeferredandcurrentincometaxrates | -15,304.24 | 1,311,231.61 |
| Incometaxexpenses | 97,357,651.45 | 96,963,243.68 |
15.Othercomprehensiveincome,netofincometaxPleaserefertosectionV(I)45ofnotestothefinancialstatementsfordetails.(III)Notestoitemsoftheconsolidatedcashflowstatement
1.Othercashreceiptsorpaymentsrelatedtooperatingactivities,investingactivitiesandfinancingactivities
(1)Othercashreceiptsrelatedtooperatingactivities
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Receiptsofdepositsfornotes,lettersofcreditandlettersofguarantee | 167,737,972.76 | 385,183,093.29 |
| Receiptsofgovernmentgrants | 58,010,336.36 | 112,106,818.35 |
| Receiptsofsecuritydeposits | 111,742,962.57 | 109,630,599.89 |
| Recoveryofpettycashandtemporaryadvancepaymentreceivable | 99,329,855.08 | 76,785,785.58 |
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Temporaryreceiptspayable | 180,665,554.52 | 152,028,816.71 |
| Receiptsofinterestincome | 76,788,792.42 | 48,011,644.19 |
| Receiptsoffactoringpaymentandprincipaloffinancelease | 1,066,072,685.44 | 1,128,899,220.36 |
| Receiptofprincipalandinterestoftimedeposits | 67,760,782.25 | |
| Others | 20,325,575.31 | 16,659,857.72 |
| Total | 1,780,673,734.46 | 2,097,066,618.34 |
(2)Othercashpaymentsrelatedtooperatingactivities
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Paymentsfordepositsfornotes,lettersofcreditandlettersofguarantee | 285,090,684.20 | 130,498,826.74 |
| Operatingperiodexpenses | 731,115,039.63 | 807,025,083.75 |
| Paymentsforsecuritydeposits | 63,056,515.55 | 64,966,788.26 |
| Paymentsforpettycashandtemporaryadvancepaymentreceivable | 60,967,713.23 | 120,806,495.16 |
| Paymentsforfactoringandprincipaloffinancelease | 719,746,793.47 | 1,181,778,621.41 |
| Timedeposits | 230,000,000.00 | |
| Temporaryreceiptspayable | 94,331,472.76 | 80,648,317.53 |
| Others | 14,644,423.90 | 10,338,831.68 |
| Total | 2,198,952,642.74 | 2,396,062,964.53 |
(3)Othercashreceiptsrelatedtoinvestingactivities
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Redemptionoffinancialproducts | 1,638,150,000.00 | 5,398,900,000.00 |
| Receiptsofspecialpayables | 12,619,977.00 | |
| Receiptsofprincipalandinterestofcallloans | 2,961,000.00 | |
| Total | 1,650,769,977.00 | 5,401,861,000.00 |
(4)Othercashpaymentsrelatedtoinvestingactivities
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Purchaseoffinancialproducts | 1,638,150,000.00 | 5,398,900,000.00 |
| Recoveryofspecialpayables | 3,000,000.00 | |
| Cashoutflowsfromdisposalofsubsidiaries | 1,785,617.97 | |
| Total | 1,642,935,617.97 | 5,398,900,000.00 |
(5)Othercashreceiptsrelatedtofinancingactivities
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Receiptsofcallloans | 48,692,000.00 | 44,250,000.00 |
| Receiptsofpaymentsforemployeestockownershipplan | 228,995,320.75 | |
| Recoursefactoringofaccountsreceivable | 17,309,890.84 | |
| Total | 48,692,000.00 | 290,555,211.59 |
(6)Othercashpaymentsrelatedtofinancingactivities
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Returnofcallloans | 32,418,130.98 | 57,303,692.00 |
| Paymentsforrents | 10,331,775.89 | 6,227,752.76 |
| Purchaseofnon-controllinginterest | 2,000,000.00 | |
| Paymentsforfactoringservicefeesandhandlingfees | 14,049,209.58 | |
| Paymentsforemployeestockownershipplan | 180,112,670.02 | |
| PrepaidIPOlistingexpenses | 5,703,500.00 | |
| Total | 44,749,906.87 | 263,396,824.36 |
2.Supplementaryinformationtothecashflowstatement
| Supplementaryinformation | Currentperiodcumulative | Precedingperiodcomparative |
| (1)Reconciliationofnetprofittocashflowsfromoperatingactivities: | ||
| Netprofit | 512,544,189.06 | 459,292,121.57 |
| Add:Provisionforassetsimpairment | 339,743,360.13 | 417,835,657.08 |
| Depreciationoffixedassets,oilandgasassets,productivebiologicalassets | 278,253,101.81 | 217,634,741.39 |
| Depreciationofright-of-useassets | 8,706,270.90 | 7,064,171.89 |
| Amortizationofintangibleassets | 508,294,636.17 | 458,736,681.20 |
| Amortizationoflong-termprepayments | 12,737,945.56 | 8,520,526.60 |
| Lossesondisposaloffixedassets,intangibleassetsandotherlong-termassets(Less:gains) | 1,104,586.11 | -614,542.02 |
| Fixedassetsretirementloss(Less:gains) | 2,226,170.44 | 2,904,223.18 |
| Lossesonchangesinfairvalue(Less:gains) | ||
| Financialexpenses(Less:gains) | 156,286,924.35 | 177,688,052.22 |
| Investmentlosses(Less:gains) | -17,097,464.58 | -24,239,932.54 |
| Decreaseofdeferredtaxassets(Less:increase) | -1,871,173.45 | -4,814,568.19 |
| Increaseofdeferredtaxliabilities(Less:decrease) | -6,988,048.23 | -8,354,405.89 |
| Supplementaryinformation | Currentperiodcumulative | Precedingperiodcomparative |
| Decreaseofinventories(Less:increase) | -115,741,461.68 | 226,633,956.56 |
| Decreaseofoperatingreceivables(Less:increase) | -217,119,189.86 | -409,725,335.43 |
| Increaseofoperatingpayables(Less:decrease) | -75,523,337.24 | 129,881,870.69 |
| Others | 4,039,069.40 | |
| Netcashflowsfromoperatingactivities | 1,385,556,509.49 | 1,662,482,287.71 |
| (2)Significantinvestingandfinancingactivitiesnotrelatedtocashreceiptsandpayments: | ||
| Conversionofdebtintocapital | ||
| Convertiblebondsduewithinoneyear | ||
| Fixedassetsleasedinunderfinanceleases | ||
| (3)Netchangesincashandcashequivalents: | ||
| Cashattheendoftheperiod | 3,916,145,254.54 | 4,580,665,245.99 |
| Less:Cashatthebeginningoftheperiod | 4,580,665,245.99 | 4,118,746,885.72 |
| Add:Cashequivalentsattheendoftheperiod | ||
| Less:Cashequivalentsatthebeginningoftheperiod | ||
| Netincreaseofcashandcashequivalents | -664,519,991.45 | 461,918,360.27 |
3.Compositionofcashandcashequivalents
(1)Details
| Items | Closingbalance | Openingbalance |
| 1)Cash | 3,916,145,254.54 | 4,580,665,245.99 |
| Including:Cashonhand | 310,688.91 | 84,414.54 |
| Cashinbankondemandforpayment | 3,914,780,983.13 | 4,580,210,453.03 |
| Othercashandbankbalancesondemandforpayment | 1,053,582.50 | 370,378.42 |
| Centralbankdepositondemandforpayment | ||
| Depositinotherbanks | ||
| Loanstootherbanks | ||
| 2)Cashequivalents | ||
| Including:Bondinvestmentsmaturingwithinthreemonths | ||
| 3)Cashandcashequivalentsattheendoftheperiod | 3,916,145,254.54 | 4,580,665,245.99 |
| Including:Cashandcashequivalentsofparentcompanyorsubsidiarieswithuserestrictions |
(2)Cashandcashequivalentswithuserestrictions
| Items | Closingbalance | Openingbalance | Reasonsforuserestrictionsandforconsideredascashandcashequivalents |
| Items | Closingbalance | Openingbalance | Reasonsforuserestrictionsandforconsideredascashandcashequivalents |
| Raisedfunds | 77,431,277.37 | 115,338,436.21 | Raisedfunds |
| Businessfundsspecificallyusedforprojectpayments | 22,851,951.00 | Specialfunds | |
| Subtotal | 100,283,228.37 | 115,338,436.21 |
(3)Cashandbankbalancesnotconsideredascashandcashequivalents
| Items | Closingbalance | Openingbalance | Reasonsfornotconsideredascashandcashequivalents |
| Depositsforbankacceptance | 179,001,533.41 | 46,878,240.34 | Unabletobewithdrawnondemand |
| Depositsforlettersofguarantee | 77,546,493.49 | 87,619,095.60 | Unabletobewithdrawnondemand |
| Engineeringdeposits | 929,734.93 | 927,865.56 | Unabletobewithdrawnondemand |
| ETCdeposits | 3,000.00 | 3,000.00 | Unabletobewithdrawnondemand |
| Depositsforlandreclamation | 1,003,098.32 | 1,000,832.05 | Unabletobewithdrawnondemand |
| Depositsforbuyer’scredit | 861,924.65 | 901,432.50 | Unabletobewithdrawnondemand |
| Engineeringescrowaccountsthatarenotavailableforseparateuse | 154,141.05 | 9,107,818.42 | Unabletobewithdrawnondemand |
| Frozenbankdepositsduetolawsuits | 5,100,869.89 | 1,100,000.00 | Unabletobewithdrawnondemand |
| Timedepositsandinterests | 230,340,333.33 | Unabletobewithdrawnondemand | |
| Others | 290,200.17 | Unabletobewithdrawnondemand | |
| Subtotal | 495,231,329.24 | 147,538,284.47 |
4.Changesinliabilitiesrelatedtofinancingactivities
| Items | Openingbalance | Increase | Decrease | Closingbalance | ||
| Changesincash | Changesinnon-cash | Changesincash | Changesinnon-cash | |||
| Short-termborrowings | 440,103,105.44 | 599,206,768.24 | 9,696,553.27 | 922,066,571.69 | 126,939,855.26 | |
| Dividendpayable | 355,986,223.08 | 355,986,223.08 | ||||
| Otherpayables | 29,093,805.32 | 21,380,000.00 | 2,040,387.09 | 28,714,555.94 | 23,799,636.47 | |
| Long-termborrowings(includinglong-termborrowingsduewithinoneyear) | 2,474,887,976.24 | 831,248,989.56 | 93,048,642.05 | 1,127,518,708.67 | 2,271,666,899.18 | |
| Bondspayable(includingbondspayableduewithinoneyear) | 1,308,690,556.32 | 63,722,253.84 | 11,809,008.04 | 1,360,603,802.12 | ||
| Items | Openingbalance | Increase | Decrease | Closingbalance | ||
| Changesincash | Changesinnon-cash | Changesincash | Changesinnon-cash | |||
| Leaseliabilities(includingleaseliabilitiesduewithinoneyear) | 31,093,459.07 | 4,126,126.53 | 10,248,232.04 | 187,165.96 | 24,784,187.60 | |
| Long-termpayables(includinglong-termpayablesduewithinoneyear) | 27,312,000.00 | 2,703,662.62 | 4,175,192.30 | 1,563,137.00 | 24,277,333.32 | |
| Subtotal | 4,283,868,902.39 | 1,479,147,757.80 | 531,323,848.48 | 2,460,518,491.76 | 1,750,302.96 | 3,832,071,713.95 |
5.SignificantactivitiesnotinvolvingcashreceiptsandpaymentsPleaserefertosectionV(III)4ofnotestothefinancialstatementsfordetailsonsignificantinvestingandfinancingactivitiesnotinvolvingcashreceiptsandpayments.(IV)Others
1.Monetaryitemsinforeigncurrencies
| Items | Closingbalanceinforeigncurrencies | Exchangerate | RMBequivalentattheendoftheperiod |
| Cashandbankbalances | 38,281,796.98 | ||
| Including:USD | 1,299,398.42 | 7.0827 | 9,203,249.19 |
| EUR | 3,577,091.77 | 7.8592 | 28,113,079.64 |
| HKD | 1,065,402.95 | 0.9062 | 965,468.15 |
| Accountsreceivable | 17,855,293.19 | ||
| Including:USD | 164.00 | 7.0827 | 1,161.56 |
| EUR | 2,271,749.24 | 7.8592 | 17,854,131.63 |
2.Leases
(1)TheCompanyaslessee
1)PleaserefertosectionV(I)17ofnotestothefinancialstatementsfordetailsonright-of-useassets.
2)PleaserefertosectionIII(XXXII)ofnotestothefinancialstatementsfordetailsontheCompany’saccountingpoliciesonshort-termleasesandleasesforwhichtheunderlyingassetisoflowvalue.Theamountsofshort-termleasesandlow-valueassetleasesincludedintoprofitorlossareasfollows:
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Expenserelatingtoshort-termleases | 19,527,703.71 | 10,884,849.01 |
| Expenserelatingtoleasesoflow-valueassets(excludingshort-termleases) | ||
| Total | 19,527,703.71 | 10,884,849.01 |
3)Profitorlossandcashflowsrelatedtoleases
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Interestexpensesonleaseliabilities | 1,190,325.15 | 1,337,799.45 |
| Variableleasepaymentsincludedinprofitorlossbutnotincludedinthemeasurementofleaseliabilities | ||
| Incomefromsubleasingright-of-useassets | ||
| Totalcashoutflowsrelatedtoleases | 29,859,479.60 | 17,112,601.77 |
| Gainsorlossesarisingfromsale |
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| andleasebacktransactions |
4)PleaserefertosectionIX(II)ofnotestothefinancialstatementsfordetailsonmaturityanalysisofleaseliabilitiesandrelatedliquidityriskmanagement.
(2)TheCompanyaslessor
1)Operatingleasea.Leaseincome
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Leaseincome | 3,249,127.28 | 1,855,150.51 |
| Including:Incomerelatingtovariableleasepaymentsnotincludedinthemeasurementoftheleaseliabilities |
b.Assetsleasedoutunderoperatingleases
| Items | Closingbalance | December31,2022 |
| Buildingsandstructures | 23,875,232.89 | 27,105,435.03 |
| Subtotal | 23,875,232.89 | 27,105,435.03 |
PleaserefertosectionV(I)15ofnotestothefinancialstatementsfordetailsonfixedassetsleasedoutunderoperatingleases.c.Undiscountedleasepaymentstobereceivedarisingfromnon-cancellableleasesbasedontheleasecontractsignedwithlessee
| Remainingyears | Closingbalance | December31,2022 |
| Within1year | 104,738.00 | 157,112.00 |
| 1-2years | 104,738.00 | 157,112.00 |
| 2-3years | 104,738.00 | 157,112.00 |
| 3-4years | 104,738.00 | 157,112.00 |
| 4-5years | 104,738.00 | 157,112.00 |
| Over5years | 157,112.00 | |
| Total | 523,690.00 | 942,672.00 |
2)Financeleasea.Profitorlossrelatedtofinancelease
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Financeincomeonthenetinvestmentinthelease | 2,245,842.84 | 5,464,955.41 |
b.Reconciliationofundiscountedleasepaymentstonetinvestmentinthelease
IncomerelatingtovariableleasepaymentsnotincludedinthemeasurementofthenetinvestmentintheleaseItems
| Items | Closingbalance | December31,2022 |
| Undiscountedleasepayments | 68,248,638.70 | 99,676,989.33 |
| Less:Unrealizedfinanceincomerelatingtoleasepayments | 4,679,168.24 | 5,140,906.34 |
| Add:Presentvalueofunguaranteedresidualvalue | ||
| Netinvestmentinthelease | 63,569,470.46 | 94,536,082.99 |
c.Undiscountedleasepaymentstobereceivedarisingfromnon-cancellableleasesbasedontheleasecontractsignedwithlessee
| Remainingyears | Closingbalance | December31,2022 |
| Within1year | 46,826,104.16 | 58,791,768.45 |
| 1-2years | 19,550,334.54 | 32,869,315.86 |
| 2-3years | 1,497,760.00 | 6,143,705.02 |
| 3-4years | 374,440.00 | 1,497,760.00 |
| 4-5years | 374,440.00 | |
| Total | 68,248,638.70 | 99,676,989.33 |
VI.R&Dcosts(I)R&Dcosts
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Employeebenefits | 252,327,439.92 | 266,224,944.76 |
| Directinputs | 37,083,931.61 | 44,582,928.01 |
| Otherexpenses | 63,438,534.25 | 52,458,233.21 |
| Share-basedpayment | 971,457.24 | |
| Total | 352,849,905.78 | 364,237,563.22 |
| Including:R&Dcoststobeexpensed | 344,030,239.33 | 340,775,707.34 |
| R&Dcoststobecapitalized | 8,819,666.45 | 23,461,855.88 |
(II)Developmentexpenditures
1.Changesindevelopmentexpenditures
| Items | Openingbalance | Increase | Decrease | Closingbalance | |||
| Internaldevelopmentexpenditures | Others | Recognizedasintangibleassets | Transferredoutintoprofitorloss | Others | |||
| Items | Openingbalance | Increase | Decrease | Closingbalance | |||
| Internaldevelopmentexpenditures | Others | Recognizedasintangibleassets | Transferredoutintoprofitorloss | Others | |||
| R&Dofindoorself-drivingoperatingsystem | 765,552.19 | 765,552.19 | |||||
| Intelligentbarreledgarbagetransfermachine | 662,327.79 | 662,327.79 | |||||
| Indoorsweepingrobot | 870,662.83 | 870,662.83 | |||||
| Deepcleaningmachine | 524,164.55 | 524,164.55 | |||||
| Researchonwirecontroltechnologyforsmallself-madechassis | 4,115,027.48 | 120,653.35 | 4,235,680.83 | ||||
| R&Dofoutdoorself-drivingoperatingsystem(Stage2) | 5,758,682.29 | 826,253.18 | 6,584,935.47 | ||||
| Researchonaerodynamicnoisecontrolandpneumaticconveyingenergy-savingtechnology | 2,351,791.55 | 85,060.50 | 2,436,852.05 | ||||
| Pureelectricroadsweeper | 1,565,839.40 | 1,565,839.40 | |||||
| SanitationrobotIoTplatform | 3,351,117.77 | 248,957.47 | 3,600,075.24 | ||||
| Economicalgarbagetransfertruck | 225,467.15 | 225,467.15 | |||||
| Developmentofcleaningrobotbasedonautonomousunmannedsystem | 1,325,659.13 | 734,617.23 | 2,060,276.36 | ||||
| SpecialfundsforS2000seriestop-sellingproducts | 2,442,440.66 | 1,997,898.12 | 4,440,338.78 | ||||
| SpecialfundsforS18seriestop-sellingproductproject | 4,283,010.42 | 3,193,424.27 | 7,476,434.69 | ||||
| Brandnewfirstgenerationeconomicalversionofrollingsweeper | 470,115.54 | 1,612,802.33 | 2,082,917.87 | ||||
| Indoorfloorwashingrobot | 1,763,287.72 | 1,763,287.72 | |||||
| Pureelectricsmallgarbagecleaningmachine | 1,024,782.18 | 1,024,782.18 | |||||
| Pureelectricsidewalksweeper | 1,592,468.75 | 1,592,468.75 | |||||
| Pureelectricgarbagecollector | 68,528.04 | 68,528.04 | |||||
| Total | 33,160,925.44 | 8,819,666.45 | 32,917,511.29 | 9,063,080.60 | |||
2.Impairmentofdevelopmentexpenditures
(1)Changesinprovisionforimpairment
| Items | Openingbalance | Increase | Decrease | Closingbalance | ||
| Accrual | Others | Disposal/Scrapping | Others | |||
| R&Dofindoorself-drivingoperatingsystem | 765,552.19 | 765,552.19 | ||||
| Intelligentbarreledgarbagetransfermachine | 662,327.79 | 662,327.79 | ||||
| Indoorsweepingrobot | 870,662.83 | 870,662.83 | ||||
| Deepcleaningmachine | 524,164.55 | 524,164.55 | ||||
| Items | Openingbalance | Increase | Decrease | Closingbalance | ||
| Accrual | Others | Disposal/Scrapping | Others | |||
| Pureelectricroadsweeper | 1,565,839.40 | 1,565,839.40 | ||||
| Economicalgarbagetransfertruck | 225,467.15 | 225,467.15 | ||||
| Indoorfloorwashingrobot | 1,763,287.72 | 1,763,287.72 | ||||
| Pureelectricsmallgarbagecleaningmachine | 1,024,782.18 | 1,024,782.18 | ||||
| Pureelectricsidewalksweeper | 1,592,468.75 | 1,592,468.75 | ||||
| Pureelectricgarbagecollector | 68,528.04 | 68,528.04 | ||||
| Subtotal | 2,822,707.36 | 6,240,373.24 | 9,063,080.60 | |||
(2)Impairmenttestondevelopmentexpenditures
| Items | Carryingamount | Recoverableamount | Provisionforimpairment |
| R&Dofindoorself-drivingoperatingsystem | |||
| Intelligentbarreledgarbagetransfermachine | |||
| Indoorsweepingrobot | |||
| Deepcleaningmachine | |||
| Pureelectricroadsweeper | 1,565,839.40 | 1,565,839.40 | |
| Economicalgarbagetransfertruck | 225,467.15 | 225,467.15 | |
| Indoorfloorwashingrobot | 1,763,287.72 | 1,763,287.72 | |
| Pureelectricsmallgarbagecleaningmachine | 1,024,782.18 | 1,024,782.18 | |
| Pureelectricsidewalksweeper | 1,592,468.75 | 1,592,468.75 | |
| Pureelectricgarbagecollector | 68,528.04 | 68,528.04 | |
| Subtotal | 6,240,373.24 | 6,240,373.24 |
(Continued)
| Items | Determinationmethodoffairvalueandcostsofdisposal |
| R&Dofindoorself-drivingoperatingsystem | FullprovisionforimpairmentismadeastheCompanyterminatesR&DoftheprojectduetoitsR&Dresourcedirectionadjustmentandchangesofmarketdemand. |
| Intelligentbarreledgarbagetransfermachine | FullprovisionforimpairmentismadeastheCompanyterminatesR&DoftheprojectduetoitsR&Dresourcedirectionadjustmentandchangesofmarketdemand. |
| Indoorsweepingrobot | FullprovisionforimpairmentismadeastheCompanyterminatesR&DoftheprojectduetoitsR&Dresourcedirectionadjustmentandchangesofmarketdemand. |
| Deepcleaningmachine | FullprovisionforimpairmentismadeastheCompanyterminatesR&DoftheprojectduetoitsR&Dresourcedirectionadjustmentandchangesofmarketdemand. |
| Pureelectricroadsweeper | FullprovisionforimpairmentismadeastheCompanyterminatesR&DoftheprojectduetoitsR&Dresourcedirectionadjustmentandchangesofmarketdemand. |
| Items | Determinationmethodoffairvalueandcostsofdisposal |
| Economicalgarbagetransfertruck | FullprovisionforimpairmentismadeastheCompanyterminatesR&DoftheprojectduetoitsR&Dresourcedirectionadjustmentandchangesofmarketdemand. |
| Indoorfloorwashingrobot | FullprovisionforimpairmentismadeastheCompanyterminatesR&DoftheprojectduetoitsR&Dresourcedirectionadjustmentandchangesofmarketdemand. |
| Pureelectricsmallgarbagecleaningmachine | FullprovisionforimpairmentismadeastheCompanyterminatesR&DoftheprojectduetoitsR&Dresourcedirectionadjustmentandchangesofmarketdemand. |
| Pureelectricsidewalksweeper | FullprovisionforimpairmentismadeastheCompanyterminatesR&DoftheprojectduetoitsR&Dresourcedirectionadjustmentandchangesofmarketdemand. |
| Pureelectricgarbagecollector | FullprovisionforimpairmentismadeastheCompanyterminatesR&DoftheprojectduetoitsR&Dresourcedirectionadjustmentandchangesofmarketdemand. |
| Subtotal |
VII.Interestinotherentities(I)Compositionoftheconsolidationscope
1.TheCompanyhasbrought278subsidiariesincludingZoomlionEnvironmentalCompany,ShangfengIndustrialCompany,InforeTechnologyCompany,andGreenOrientalCompanyintotheconsolidationscope.
2.Basicinformationofsignificantsubsidiaries
| Subsidiaries | Registeredcapital | Mainoperatingplaceandplaceofregistration | Businessnature | Holdingproportion(%) | Acquisitionmethod | |
| Direct | Indirect | |||||
| ShangfengIndustrialCompany | 109.21millionyuan | Shaoxing,Zhejiang | Fanequipmentmanufacturingandothers | 60.20 | Businesscombinationnotundercommoncontrol | |
| GreenOrientalCompany | 150millionyuan | Shenzheng,Guangdong | Environmentalmonitoringandsolidwastedisposal | 70.00 | Businesscombinationnotundercommoncontrol | |
| FunanCompany | 87.50millionyuan | Funan,Anhui | Environmentalmonitoringandsolidwastedisposal | 70.00 | Businesscombinationnotundercommoncontrol | |
| XiantaoCompany | 125millionyuan | Xiantao,Hubei | Environmentalmonitoringandsolidwastedisposal | 70.00 | Businesscombinationnotundercommoncontrol | |
| ShouxianCompany | 87.50millionyuan | Shouxian,Anhui | Environmentalmonitoringandsolidwastedisposal | 70.00 | Businesscombinationnotundercommoncontrol | |
| XiantaoYingheEnvironmentalProtectionCo.,Ltd. | 100.14millionyuan | Xiantao,Hubei | Environmentalmonitoringandsolidwastedisposal | 70.32 | 5.35 | Setup |
| InforeTechnologyCompany | 110millionyuan | Foshan,Guangdong | Environmentalmonitoringandsolidwastedisposal | 100.00 | Setup | |
| FoshanShunheEnvironmentalProtectionCo.,Ltd. | 300millionyuan | Foshan,Guangdong | Environmentalmonitoringandsolidwaste | 100.00 | Businesscombinationnotundercommoncontrol | |
| Subsidiaries | Registeredcapital | Mainoperatingplaceandplaceofregistration | Businessnature | Holdingproportion(%) | Acquisitionmethod | |
| Direct | Indirect | |||||
| disposal | ||||||
| HuaqingyuanCompany | 12millionyuan | Foshan,Guangdong | Environmentalmonitoringandsolidwastedisposal | 100.00 | Businesscombinationnotundercommoncontrol | |
| FoshanShundeDistrictHuayingEnvironmentalWaterCo.,Ltd. | 3millionyuan | Foshan,Guangdong | Environmentalmonitoringandsolidwastedisposal | 100.00 | Businesscombinationnotundercommoncontrol | |
| FoshanShundeDistrictYuanrunWaterEnvironmentalProtectionCo.,Ltd. | 12millionyuan | Foshan,Guangdong | Environmentalmonitoringandsolidwastedisposal | 100.00 | Businesscombinationnotundercommoncontrol | |
| FoshanShundeHuaboEnvironmentalWaterCo.,Ltd. | 1millionyuan | Foshan,Guangdong | Environmentalmonitoringandsolidwastedisposal | 100.00 | Businesscombinationnotundercommoncontrol | |
| ZoomlionEnvironmentalCompany | 2,351.53millionyuan | Changsha,Hunan | Smartcityservices | 100.00 | Businesscombinationundercommoncontrol | |
| ChangshaZoomlionChanggaoEnvironmentalIndustryCo.,Ltd. | 30millionyuan | Changsha,Hunan | Smartcityservices | 100.00 | Setup | |
| FujianNan’anYinglianUrbanEnvironmentalServiceCo.,Ltd. | 30millionyuan | Nan’an,Fujian | Smartcityservices | 80.00 | Setup | |
| ZhangjiajieYinglianEnvironmentalManagementCo.,Ltd. | 8millionyuan | Zhangjiajie,Hunan | Smartcityservices | 90.00 | Setup | |
| CiliCountyZoomlionHuabaoEnvironmentalIndustryCo.,Ltd. | 6millionyuan | Cili,Hunan | Smartcityservices | 60.00 | Setup | |
| HanshouZoomlionEnvironmentalIndustryCo.,Ltd. | 13millionyuan | Hanshou,Hunan | Smartcityservices | 90.00 | Setup | |
| LonghuiCountyZoomlionEnvironmentalIndustryCo.,Ltd. | 1millionyuan | Longhui,Hunan | Smartcityservices | 100.00 | Setup | |
| ShimenZoomlionEnvironmentalIndustryCo.,Ltd. | 15millionyuan | Shimen,Hunan | Smartcityservices | 90.00 | Setup | |
| NingboInforeFinanceLeaseCo.,Ltd. | USD72.60million | Ningbo,Zhejiang | Financelease | 99.31 | 0.69 | Setup |
(II)Businesscombinationnotundercommoncontrol
1.Businesscombinationnotundercommoncontrolinthecurrentperiod
| Acquirees | Equityacquisitiondate | Equityacquisitioncost | Proportionofequityacquired(%) | Equityacquisitionmethod | Acquisitiondate |
| HubeiYinglingTestingTechnologyServiceCo.,Ltd. | May18,2023 | 156,438.75 | 100.00 | Acquisition | May18,2023 |
(Continued)
| Acquirees | Determinationbasisforacquisitiondate | Acquiree’sincomefromacquisitiondatetoperiodend | Acquiree’snetprofitfromacquisitiondatetoperiodend | Acquiree’scashflowsfromacquisitiondatetoperiodend | ||
| Netinflows | Netinflows | Netinflows | ||||
| fromoperatingactivities | frominvestingactivities | fromfinancingactivities | ||||
| HubeiYinglingTestingTechnologyServiceCo.,Ltd. | Transferofcontrol | 86,770.44 | -812,968.37 | -87,733.23 |
2.Combinationcostsandgoodwill
| Items | HubeiYinglingTestingTechnologyServiceCo.,Ltd. |
| Combinationcosts | |
| Cash | 156,438.75 |
| Totalcombinationcosts | 156,438.75 |
| Less:Shareoffairvalueofnetidentifiableassetsacquired | 156,438.75 |
| Goodwill/Balanceoffairvalueofnetidentifiedassetsacquiredafterdeductingcombinationcosts |
3.Acquisition-dateidentifiableassetsandliabilitiesofacquirees
(1)Details
| Items | HubeiYinglingTestingTechnologyServiceCo.,Ltd. | |
| Acquisition-datefairvalue | Acquisition-datecarryingamount | |
| Assets | 410,344.64 | 410,344.64 |
| Cashandbankbalances | 112,965.79 | 112,965.79 |
| Accountsreceivable | 97,680.00 | 97,680.00 |
| Advancespaid | 16,000.00 | 16,000.00 |
| Otherreceivables | 43,871.50 | 43,871.50 |
| Fixedassets | 82,327.35 | 82,327.35 |
| Long-termprepayments | 57,500.00 | 57,500.00 |
| Liabilities | 253,905.89 | 253,905.89 |
| Accountspayable | 104,920.44 | 104,920.44 |
| Employeebenefitspayable | 29,996.37 | 29,996.37 |
| Taxpayable | 1,006.22 | 1,006.22 |
| Otherpayables | 117,982.86 | 117,982.86 |
| Netassets | 156,438.75 | 156,438.75 |
| Netassetsacquired | 156,438.75 | 156,438.75 |
(2)FairvaluedeterminationmethodonidentifiableassetsandliabilitiesThecarryingamountofassetsandliabilitiesontheacquisitiondateofHubeiYinglingTestingTechnologyServiceCo.,Ltd.istakenasthefairvalueofidentifiableassetsandliabilities.
(II)DisposalofsubsidiariesOne-timedisposalleadingtolossofcontroloverasubsidiaryDetails
| Subsidiaries | Equitydisposalconsideration | Equitydisposalproportion(%) | Equitydisposalmethod | Lossofcontroldate | Determinationbasisforlossofcontroldate | DifferencebetweendisposalconsiderationandnetassetsattributabletotheCompanyattheconsolidatedfinancialstatementslevel |
| GuchengYinglianUrbanEnvironmentalServiceCo.,Ltd. | 500,000.00 | 100.00 | Transfer | 8/24/2023 | Substantialcontroltransfer | -381,328.08 |
| ZaozhuangYinglianUrbanEnvironmentalServiceCo.,Ltd. | 500,000.00 | 100.00 | Transfer | 3/1/2023 | Substantialcontroltransfer | -7,097.77 |
| YichunYinglianUrbanEnvironmentalServiceCo.,Ltd. | 500,000.00 | 100.00 | Transfer | 8/8/2023 | Substantialcontroltransfer | -235,810.55 |
| ChongqingYinglianCitySanitationServiceCo.,Ltd. | 500,000.00 | 100.00 | Transfer | 12/6/2023 | Substantialcontroltransfer | 24,004.26 |
| HuaibeiZhongfengUrbanEnvironmentalServiceCo.,Ltd. | 1.00 | 100.00 | Transfer | 9/13/2023 | Substantialcontroltransfer | -215,560.78 |
(Continued)
| Subsidiaries | Proportionofremainingequityatthelossofcontroldate(%) | Carryingamountofremainingequityatthelossofcontroldate | Fairvalueofremainingequityatthelossofcontroldate | Gains/Lossesonfairvalueremeasurementofremainingequity | Determinationmethodandmajorassumptiononfairvalueofremainingequityatthelossofcontroldate | Changesinothercomprehensiveincome/equityrelatedtoformersubsidiary’sequityinvestmenttransferredtoinvestmentincome |
| GuchengYinglianUrbanEnvironmentalServiceCo.,Ltd. | ||||||
| ZaozhuangYinglianUrbanEnvironmentalServiceCo.,Ltd. | ||||||
| YichunYinglianUrbanEnvironmentalServiceCo.,Ltd. | ||||||
| ChongqingYinglianCitySanitationServiceCo.,Ltd. | ||||||
| HuaibeiZhongfengUrbanEnvironmentalServiceCo.,Ltd. |
(III)Changesintheconsolidationscopeduetootherreasons
1.Entitiesbroughtintotheconsolidationscope
| Entities | Equityacquisitionmethod | Equityacquisitiondate | Capitalcontribution | Holdingproportion(%) |
| LiaochengChipingDistrictYingshengEnvironmentalSanitationServiceCo.,Ltd. | Setup | 1/4/2023 | 100,000.00 | 100.00 |
| JiangmenLvyingUrbanEnvironmentalServiceCo.,Ltd. | Setup | 2/3/2023 | [Note] | 100.00 |
| FuzhouChangleDistrictYingshengUrban | Setup | 2/8/2023 | [Note] | 100.00 |
| Entities | Equityacquisitionmethod | Equityacquisitiondate | Capitalcontribution | Holdingproportion(%) |
| EnvironmentalServiceCo.,Ltd. | ||||
| ChongqingBananDistrictYingheUrbanEnvironmentalServiceCo.,Ltd. | Setup | 2/17/2023 | 300,000.00 | 100.00 |
| GuangzhouYingtaiUrbanManagementServiceCo.,Ltd. | Setup | 2/22/2023 | [Note] | 100.00 |
| FoshanShundeDistrictYingchuangUrbanEnvironmentalServiceCo.,Ltd. | Setup | 3/1/2023 | 2,300,000.00 | 100.00 |
| PuningHonglianEnvironmentalServiceCo.,Ltd. | Setup | 3/7/2023 | [Note] | 100.00 |
| HefeiYingshengUrbanEnvironmentalServiceCo.,Ltd. | Setup | 3/15/2023 | 200,000.00 | 100.00 |
| FengyangYingheEnvironmentalSanitationManagementCo.,Ltd. | Setup | 3/21/2023 | 500,000.00 | 100.00 |
| SanyaLianyingUrbanEnvironmentalServiceCo.,Ltd. | Setup | 3/22/2023 | 100,000.00 | 100.00 |
| FuzhouYingheEnvironmentalDevelopmentCo.,Ltd. | Setup | 4/11/2023 | [Note] | 60.00 |
| ChuzhouTongyingEnvironmentalSanitationManagementCo.,Ltd. | Setup | 4/11/2023 | 500,000.00 | 100.00 |
| YongxinYingheEnvironmentalSanitationManagementCo.,Ltd. | Setup | 4/17/2023 | 500,000.00 | 100.00 |
| LianjiangLianyingUrbanEnvironmentalServiceCo.,Ltd. | Setup | 4/21/2023 | 2,100,000.00 | 100.00 |
| GuangzhouYingzhiUrbanEnvironmentalSanitationServiceCo.,Ltd. | Setup | 5/5/2023 | [Note] | 100.00 |
| ShenzhenLonggangYinglianEnvironmentalServiceCo.,Ltd. | Setup | 6/2/2023 | [Note] | 100.00 |
| ShenzhenYinglianAfforestEngineeringCo.,Ltd. | Setup | 6/5/2023 | [Note] | 100.00 |
| YangjiangYingheUrbanEnvironmentalServiceCo.,Ltd. | Setup | 6/8/2023 | 10,000,000.00 | 100.00 |
| RenshouYingheUrbanandRuralSanitationServiceCo.,Ltd. | Setup | 6/13/2023 | 2,000,000.00 | 100.00 |
| ChibiLianyingEnvironmentalSanitationManagementCo.,Ltd. | Setup | 6/27/2023 | 14,662,100.00 | 100.00 |
| ShenZhenLonggangDistrictYingjiCityServiceCo.,Ltd. | Setup | 7/5/2023 | [Note] | 100.00 |
| WuyiYingheEnvironmentalSanitationManagementCo.,Ltd. | Setup | 7/18/2023 | [Note] | 100.00 |
| XuchangJian’anDistrictTongyingEnvironmentalSanitationManagementCo.,Ltd. | Setup | 7/18/2023 | 100,000.00 | 100.00 |
| Entities | Equityacquisitionmethod | Equityacquisitiondate | Capitalcontribution | Holdingproportion(%) |
| FoshanShundeDistrictLianyingUrbanEnvironmentalServiceCo.,Ltd. | Setup | 7/20/2023 | 1,770,000.00 | 59.00 |
| TaizhouYingheEnvironmentalSanitationManagementCo.,Ltd. | Setup | 7/24/2023 | [Note] | 100.00 |
| ChangshaYingheEnvironmentalSanitationManagementCo.,Ltd. | Setup | 7/24/2023 | 500,000.00 | 100.00 |
| HuichangYingmaoEnvironmentalManagementCo.,Ltd. | Setup | 7/25/2023 | 6,500,000.00 | 65.00 |
| TangshanYinglianEnvironmentalManagementCo.,Ltd. | Setup | 7/26/2023 | [Note] | 100.00 |
| YongfengYingheEnvironmentalSanitationManagementCo.,Ltd. | Setup | 7/27/2023 | 500,000.00 | 100.00 |
| NanjingYinglianEnvironmentalTechnologyCo.,Ltd. | Setup | 8/1/2023 | 1,000,000.00 | 100.00 |
| SuzhouWujiangYingheEnvironmentalSanitationManagementCo.,Ltd. | Setup | 8/4/2023 | 200,000.00 | 100.00 |
| XiajiangYingheEnvironmentalSanitationManagementCo.,Ltd. | Setup | 8/14/2023 | 500,000.00 | 100.00 |
| LongquanTongyingEnvironmentalSanitationServiceCo.,Ltd. | Setup | 8/22/2023 | 100,000.00 | 100.00 |
| XinhuaYinglianModernEnvironmentalServiceCo.,Ltd. | Setup | 8/28/2023 | 10,879,960.00 | 80.00 |
| GuangxiLuochengYingxinUrbanEnvironmentalServiceCo.,Ltd. | Setup | 9/25/2023 | [Note] | 51.00 |
| SuzhouYingfenEnvironmentalIndustryCo.,Ltd. | Setup | 10/30/2023 | 2,100,000.00 | 70.00 |
| RenshouZhongyingSanitationServiceCo.,Ltd. | Setup | 11/3/2023 | 2,000,000.00 | 70.00 |
| NantongLianyingEnvironmentalServiceCo.,Ltd. | Setup | 11/17/2023 | 100,000.00 | 100.00 |
| HuazhouLianshengUrbanEnvironmentalServiceCo.,Ltd. | Setup | 12/11/2023 | 8,000,000.00 | 100.00 |
| HeyuanZijinLianshengUrbanEnvironmentalServiceCo.,Ltd. | Setup | 12/27/2023 | [Note] | 100.00 |
| TangshanYingxingSanitationEquipmentManufacturingCo.,Ltd. | Setup | 12/28/2023 | [Note] | 68.00 |
| QuanzhouYingxinUrbanEnvironmentalServiceCo.,Ltd. | Setup | 12/29/2023 | [Note] | 100.00 |
| ZhejiangYolshIntelligentEmergencyEquipmentCo.,Ltd. | Setup | 12/13/2023 | 100,000,000.00 | 70.00 |
| HeyangYingheUrban | Setup | 4/26/2023 | 5,000,000.00 | 100.00 |
| Entities | Equityacquisitionmethod | Equityacquisitiondate | Capitalcontribution | Holdingproportion(%) |
| EnvironmentalServiceCo.,Ltd. | ||||
| XuzhouTongyingSanitationServiceCo.,Ltd. | Setup | 12/5/2023 | 100,000.00 | 100.00 |
Note:AsofDecember31,2023,theCompanyhasnotpaidcontributiontotheseentities.
2.Entitiesexcludedfromtheconsolidationscope
| Entities | Equitydisposalmethod | Equitydisposaldate | Disposal-datenetassets | Netprofitfromtheperiodbeginningtothedisposaldate |
| MeishanPengshanZhongfengEnvironmentalIndustryCo.,Ltd. | Cancellation | 10/10/2023 | -287,156.36 | |
| ChengduYinglianEnvironmentalManagementCo.,Ltd. | Cancellation | 6/1/2023 | -4,011.80 | |
| GuangxiGuipingYingheEnvironmentalSanitationManagementCo.,Ltd. | Cancellation | 8/18/2023 | -43,942.03 | |
| ShengzhouYingheEnvironmentalSanitationManagementCo.,Ltd. | Cancellation | 7/12/2023 | -65,689.18 | |
| ChongyangYinglianEnvironmentalProtectionCo.,Ltd. | Cancellation | 2/28/2023 | 0.04 | |
| YiyangYinglianEnvironmentalSanitationManagementCo.,Ltd. | Cancellation | 4/19/2023 | 25.21 | |
| WanningYinglianEnvironmentalIndustryCo.,Ltd. | Cancellation | 4/4/2023 | 296,440.93 | |
| ShenzhenLonghuaDistrictYinglianUrbanServiceCo.,Ltd. | Cancellation | 10/14/2023 | -203.21 | |
| GuangdongInforeSmartTechnologyCo.,Ltd. | Cancellation | 1/6/2023 | ||
| AnhuaYingshengEnvironmentalSanitationServiceCo.,Ltd. | Cancellation | 9/20/2023 | -10,713.04 |
(IV)Transactionsresultinginchangesinsubsidiaries’equitybutwithoutlosingcontrol
1.Changesinsubsidiaries’equity
| Subsidiaries | Dateofchange | Holdingproportionbeforechange | Holdingproportionafterchange |
| HuaianChenjieEnvironmentalEngineeringCo.,Ltd. | 6/1/2023 | 96.00% | 100.00% |
| XiantaoYingheEnvironmentalProtectionCo.,Ltd. | 12/25/2023 | 80.58% | 75.67% |
2.Effectoftransactionsonnon-controllinginterestandequityattributabletoparentcompany
| Items | HuaianChenjieEnvironmentalEngineeringCo.,Ltd. | XiantaoYingheEnvironmentalProtectionCo.,Ltd. |
| Acquisitioncosts/Disposalconsiderations | ||
| Cash | 2,000,000.00 | 35,872,650.00 |
| Totalacquisitioncosts/disposalconsiderations | 2,000,000.00 | 35,872,650.00 |
| Less:Shareinsubsidiaries’netassetsbasedonacquired/disposednetassetsproportion | 722,640.74 | 35,716,497.55 |
| Balance | 1,277,359.26 | 156,152.45 |
| Including:Capitalreserveadjusted | 1,277,359.26 | 156,152.45 |
(V)Interestinjointventuresorassociates
1.Significantjointventuresorassociates
| Associates | Mainoperatingplace | Placeofregistration | Businessnature | Holdingproportion(%) | Accountingtreatmentoninvestmentsinjointventuresorassociates | |
| Direct | Indirect | |||||
| FoshanYingtongElectricalMaterialsCo.,Ltd. | Foshan | Foshan | Manufacturing | 49.00 | Equitymethod | |
2.Mainfinancialinformationofsignificantassociates
| Items | Closingbalance/Currentperiodcumulative | Openingbalance/Precedingperiodcomparative |
| FoshanYingtongElectricalMaterialsCo.,Ltd. | FoshanYingtongElectricalMaterialsCo.,Ltd. | |
| Currentassets | 1,111,710,931.09 | 1,089,506,862.74 |
| Non-currentassets | 164,920,906.11 | 201,274,064.95 |
| Totalassets | 1,276,631,837.20 | 1,290,780,927.69 |
| Currentliabilities | 672,193,265.67 | 691,609,958.01 |
| Non-currentliabilities | 55,400,000.00 | 520,544.08 |
| Totalliabilities | 727,593,265.67 | 692,130,502.09 |
| Non-controllinginterest | 66,338,530.17 | 68,425,663.17 |
| Equityattributabletoownersofparentcompany | 482,700,041.36 | 530,224,762.44 |
| Proportionateshareinnetassets | 236,523,020.27 | 259,810,133.60 |
| Adjustments | ||
| Others | -34,569,092.45 | -30,876,879.51 |
| Carryingamountofinvestmentsinassociates | 201,953,927.82 | 228,933,254.09 |
| Operatingrevenue | 1,773,954,226.95 | 2,238,921,694.12 |
| Netprofit | -49,874,177.08 | -44,464,542.43 |
3.Aggregatedfinancialinformationofinsignificantjointventuresandassociates
| Items | Closingbalance/Currentperiodcumulative | Openingbalance/Precedingperiodcomparative |
| Associates | ||
| Totalcarryingamountofinvestments | 479,675,156.87 | 447,896,705.75 |
| Proportionatesharesinthefollowingitems | ||
| Netprofit | 31,940,019.06 | 31,671,037.49 |
| Othercomprehensiveincome | ||
| Totalcomprehensiveincome | 31,940,019.06 | 31,671,037.49 |
VIII.Governmentgrants(I)Governmentgrantsincreasedinthecurrentperiod
| Items | Amount |
| Governmentgrantsrelatedtoassets | 3,994,300.00 |
| Including:Includedintodeferredincome | 3,994,300.00 |
| Governmentgrantsrelatedtoincome | 69,450,144.75 |
| Including:Includedintootherincome | 69,450,144.75 |
| Total | 73,444,444.75 |
(II)Liabilitiesrelatedtogovernmentgrants
| Items | Openingbalance | Increase | Amountincludedintootherincome | Amountincludedintonon-operatingrevenue |
| Deferredincome | 120,890,710.04 | 3,994,300.00 | 9,544,515.62 | |
| Subtotal | 120,890,710.04 | 3,994,300.00 | 9,544,515.62 |
(Continued)
| Items | Amountoffsettingcosts | Amountoffsettingassets | Otherchanges | Closingbalance | Relatedtoassets/Relatedtoincome |
| Deferredincome | 115,340,494.42 | Relatedtoassets | |||
| Subtotal | 115,340,494.42 |
(III)Governmentgrantsincludedintoprofitorloss
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Governmentgrantsincludedintootherincome | 78,994,660.37 | 101,675,052.10 |
| Total | 78,994,660.37 | 101,675,052.10 |
(IV)Governmentgrantsreturnedinthecurrentperiod
| Items | Amountsreturned | Reasonforreturn |
| Specialfundforpromotinghigh-qualitydevelopmentofforeigninvestmentinFoshanof2021 | 893,100.00 | GuangdongInforeIntelligentSanitationTechnologyCo.,Ltd.failedtomeettherequirementsofgovernmentgrantsasitwastransformedfromaforeign-investedenterprisetoadomestic-fundedone,andreturnedthegovernmentgrantsof2021. |
| Total | 893,100.00 |
IX.RisksrelatedtofinancialinstrumentsInriskmanagement,theCompanyaimstoseektheappropriatebalancebetweentherisksandbenefitsfromitsuseoffinancialinstrumentsandtomitigatetheadverseeffectsthattherisksoffinancialinstrumentshaveontheCompany’sfinancialperformance,soastomaximizetheprofitsofshareholdersandotherequityinvestors.Basedonsuchriskmanagementobjectives,theCompany’sriskmanagementpoliciesareestablishedtoidentifyandanalyzetherisksfacedbytheCompany,tosetappropriaterisklimitsandcontrols,andtomonitorrisksandadherencetolimitsonatimelyandreliablebasis.TheCompanyhasexposuretothefollowingrisksfromitsuseoffinancialinstruments,whichmainlyinclude:
creditrisk,liquidityrisk,andmarketrisk.TheManagementhasdeliberatedandapprovedpoliciesconcerningsuchrisks,anddetailsare:
(I)CreditriskCreditriskistheriskthatonepartytoafinancialinstrumentwillcauseafinanciallossfortheotherpartybyfailingtodischargeanobligation.
1.Creditriskmanagementpractice
(1)EvaluationmethodofcreditriskAteachbalancesheetdate,theCompanyassesseswhetherthecreditriskonafinancialinstrumenthasincreasedsignificantlysinceinitialrecognition.Whenassessingwhetherthecreditriskhasincreasedsignificantlysinceinitialrecognition,theCompanytakesintoaccountreasonableandsupportableinformation,whichisavailablewithoutunduecostoreffort,includingqualitativeandquantitativeanalysisbasedonhistoricaldata,externalcreditriskrating,andforward-lookinginformation.TheCompanydeterminesthechangesindefaultriskoffinancialinstrumentsduringtheestimatedlifetimethroughcomparisonofthedefaultriskatthebalancesheetdateandtheinitialrecognitiondate,onanindividualbasisoracollectivebasis.TheCompanyconsidersthecreditriskonafinancialinstrumenthasincreasedsignificantlywhenoneormoreofthefollowingqualitativeandquantitativestandardsaremet:
1)Quantitativestandardmainlyrelatestothescenarioinwhich,atthebalancesheetdate,theprobabilityofdefaultintheremaininglifetimehasrisenbymorethanacertainpercentagecomparedwiththeinitialrecognition;
2)Qualitativestandardmainlyrelatestosignificantadversechangesinthedebtor’soperationorfinancialposition,presentorexpectedchangesintechnology,market,economyorlegalenvironmentthatwillhavesignificantadverse
impactonthedebtor’srepaymentability;
(2)Definitionofdefaultandcredit-impairedassetsAfinancialinstrumentisdefinedasdefaultedwhenoneormorefollowingeventshaveoccurred,ofwhichthestandardisconsistentwiththatforcredit-impairment:
1)significantfinancialdifficultyofthedebtor;
2)abreachofbindingclauseofcontract;
3)itisverylikelythatthedebtorwillenterbankruptcyorotherfinancialreorganization;
4)thecreditorofthedebtor,foreconomicorcontractualreasonsrelatingtothedebtor’sfinancialdifficulty,havinggrantedtothedebtoraconcession(s)thatthecreditorwouldnototherwiseconsider.
2.MeasurementofexpectedcreditlossesThekeyfactorsinthemeasurementofexpectedcreditlossincludetheprobabilityofdefault,lossgivendefault,andexposuretodefaultrisk.TheCompanydevelopsamodeloftheprobabilityofdefault,lossgivendefault,andexposuretodefaultriskonthebasisofquantitativeanalysisofhistoricaldata(e.g.,counterpartyrating,guaranteemeasuresandcollateraltype,paymentmethod,etc.)andforward-lookinginformation.
3.PleaserefertosectionV(I)2,3,4,6,8,11and23ofnotestothefinancialstatementsfordetailsonthereconciliationtableofopeningbalanceandclosingbalanceoflossallowancesoffinancialinstrument.
4.ExposuretocreditriskandconcentrationofcreditriskTheCompany’screditriskisprimarilyattributabletocashandbankbalancesandreceivables.Inordertocontrolsuchrisks,theCompanyhastakenthefollowingmeasures:
(1)CashandbankbalancesTheCompanydepositsitsbankbalancesandothercashandbankbalancesinfinancialinstitutionswithrelativelyhighcreditlevels,hence,itscreditriskisrelativelylow.
(2)ReceivablesandcontractassetsTheCompanyperformscreditassessmentoncustomersusingcreditsettlementonaregularbasis.TheCompanyselectscredibleandwell-reputedcustomersbasedoncreditassessmentresult,andconductsongoingmonitoringonbalanceofreceivables,toavoidsignificantrisksinbaddebts.AstheCompany’screditrisksfallintoseveralbusinesspartnersandcustomers,asofDecember31,2023,7.33%(December31,2022:9.38%)ofthetotalaccountsreceivableandcontractassetswasduefromthefivelargestcustomersoftheCompany.TheCompanyhasnosignificantcentralcreditrisk.ThemaximumamountofexposuretocreditriskoftheCompanyisthecarryingamountofeachfinancialassetatthebalancesheet.(II)LiquidityriskLiquidityriskistheriskthattheCompanymayencounterdeficiencyoffundsinmeetingobligationsassociated
withcashorotherfinancialassetssettlement,whichispossiblyattributabletofailureinsellingfinancialassetsatfairvalueonatimelybasis,orfailureincollectingliabilitiesfromcounterpartiesofcontracts,orearlyredemptionofdebts,orfailureinachievingestimatedcashflows.Inordertocontrolsuchrisk,theCompanycomprehensivelyutilizesfinancingtoolssuchasnotessettlement,bankborrowings,etc.andadoptslong-termandshort-termfinancingmethodstooptimizefinancingstructures,andfinallymaintainsabalancebetweenfinancingsustainabilityandflexibility.TheCompanyhasobtainedcreditlimitfromseveralcommercialbankstomeetworkingcapitalrequirementsandexpenditures.Financialliabilitiesclassifiedbasedonremainingtimeperiodtillmaturity
| Items | Closingbalance | ||||
| Carryingamount | Contractamountnotyetdiscounted | Within1year | 1-3years | Over3years | |
| Bankborrowings | 2,398,606,754.44 | 2,785,244,392.01 | 598,015,270.38 | 611,768,269.63 | 1,575,460,852.00 |
| Notespayable | 2,294,276,551.46 | 2,294,276,551.46 | 2,294,276,551.46 | ||
| Accountspayable | 2,918,543,704.46 | 2,918,543,704.46 | 2,918,543,704.46 | ||
| Otherpayables | 709,941,824.77 | 709,941,824.77 | 709,941,824.77 | ||
| Leaseliabilities | 24,784,187.60 | 26,511,358.34 | 9,474,544.70 | 17,036,813.64 | |
| Long-termpayables | 312,053,472.95 | 312,053,472.95 | 9,104,000.00 | 15,173,333.32 | 287,776,139.63 |
| Bondspayable | 1,360,603,802.12 | 1,566,237,165.60 | 11,809,516.80 | 22,142,844.00 | 1,532,284,804.80 |
| Subtotal | 10,018,810,297.80 | 10,612,808,469.59 | 6,551,165,412.57 | 666,121,260.59 | 3,395,521,796.43 |
(Continued)
| Items | December31,2022 | ||||
| Carryingamount | Contractamountnotyetdiscounted | Within1year | 1-3years | Over3years | |
| Bankborrowings | 2,918,155,689.70 | 3,064,480,800.96 | 795,179,666.92 | 725,728,644.01 | 1,543,572, |