Zhejiang NHU Company Ltd.
2021 Semi-Annual Report
August, 2021
Section I Important Notes, Contents and DefinitionsThe Board of Directors, the Board of Supervisors, directors, supervisorsand senior executives of the Company hereby guarantee that the informationpresented in this semi-annual report is authentic, accurate, complete and free ofany false records, misleading statements or material omissions, and they willbear joint and several liabilities for such information.
Hu Baifan, the Company’s legal representative, Shi Guanqun, the person incharge of finance and accounting work, and Wang Xiaobi, the person in chargeof accounting institution (Accounting Officer) hereby declare and warrant thatthe financial statements in the semi-annual report are authentic, accurate andcomplete.
All directors attended the meeting of the Board of Directors for deliberationof this annual report.
Profit distribution proposal of semi-annual report or proposal oncapitalization of capital reserves reviewed by the Board of Directors in thereporting period: The Company will not distribute cash dividend, distributebonus shares, or distribute shares from capital reserve during the currentreporting period.
Note:
This document is a translated version of the Chinese version 2021 Semi-Annual Report（“2021年半年度报告”）, and the published announcements in the Chinese version shallprevail. The complete published Chinese 2021 semi-Annual Report maybe obtained atwww.cninfo.com.cn.
Contents
Section I Important Notes, Contents and Definitions ...... 2
Section II Company Profile and Key Financial Indicators ...... 5
Section III Management Discussion and Analysis ...... 9
Section IV Corporate Governance ...... 27
Section V Environmental and Social Responsibilities ...... 27
Section VI Significant Events ...... 38
Section VII Changes in Shares and Information about Shareholders ...... 48
Section VIII Information of Preferred Shares ...... 56
Section IX Situation on Corporate Bonds ...... 57
Section X Financial Report ...... 58
Section XI Documents Available for Reference ...... 200
Definitions
| Item | Refers To | Definitions |
| Company, the Company and NHU | Refers To | Zhejiang NHU Company Ltd. |
| CSRC | Refers To | China Securities Regulatory Commission |
| Zhejiang Securities Regulatory Bureau | Refers To | Zhejiang Regulatory Bureau of China Securities Regulatory Commission |
| PPS | Refers To | Polyphenylene sulfide |
| PPA | Refers To | Poly phthalamide |
| COD | Refers To | chemical oxygen demand |
| NOX | Refers To | nitrogen oxides |
| SO? | Refers To | Sulphur dioxide |
| VOC | Refers To | volatile organic compound |
| Xinchang Vitamins | Refers To | Xinchang NHU Vitamins Co., Ltd. |
| Zhejiang VYS | Refers To | Zhejiang Vityesun Animal Nutrition And Health Co., Ltd. |
| Boao Lidu | Refers To | Qionghai Boao Lidu Real Estate Co., Ltd. |
| NHU Import & Export | Refers To | Zhejiang NHU Import&Export Co., Ltd. |
| Shangyu Bio-Chem | Refers To | Shangyu NHU Bio-Chem Co., Ltd. |
| Zhejiang Pharmaceutical | Refers To | Zhejiang NHU Pharmaceutical Co., Ltd. |
| Zhejiang Special Materials | Refers To | Zhejiang NHU Construction Material Co., Ltd. |
| Shandong Pharmaceutical | Refers To | Shandong NHU Pharmaceutical Co., Ltd. |
| Shandong Vitamins | Refers To | Shandong NHU Vitamins Co., Ltd. |
| Shandong Jinghua | Refers To | Shandong NHU Fine Chemical Science and Technology CO., LTD. |
| Shandong Amino-acids | Refers To | Shandong NHU Amino-acids Co., Ltd. |
| Shandong Holding | Refers To | Shandong NHU Holdings Co., Ltd. |
| Heilongjiang Biological Technology | Refers To | Heilongjiang NHU Biotechnology Co., Ltd. |
| NHU (Hong Kong) | Refers To | NHU （HONGKONG） TRADING COMPANY LIMITED |
Section II Company Profile and Key Financial IndicatorsI. Company Profile
| Stock Abbreviation | NHU | Stock Code | 002001 |
| Stock Exchange | Shenzhen Stock Exchange | ||
| Company Name in Chinese | 浙江新和成股份有限公司 | ||
| Company Abbreviation in Chinese (If any) | NHU | ||
| Company Name in Foreign Language (If any) | ZHEJIANG NHU COMPANY LTD. | ||
| Company Abbreviation in Foreign Language (If any) | NHU | ||
| Legal Representative | Hu Baifan | ||
II. Contact Person and Contact Information
| Item | Board Secretary | Securities Affairs Representative |
| Name | Shi Guanqun | Zeng Shuying |
| Contact Address | No.418 Xinchang Dadao West Road, Xinchang, Zhejiang P.R.China | No.418 Xinchang Dadao West Road, Xinchang, Zhejiang P.R.China |
| Tel. | (0575)86017157 | (0575)86017157 |
| Fax | (0575)86125377 | (0575)86125377 |
| sgq@cnhu.com | 002001@cnhu.com |
III. Other Information
1. Company’s Contact Information
Whether the Company’s registered address, office address, postal code, website and e-mail address has changed during the reportingperiod
□ Applicable √ Not applicable
The Company’s registered address, office address, postal code, website and e-mail address have not changed during the reportingperiod, which can be found in the 2020 Annual Report.
2. Information Disclosure and Location
Whether information disclosure and location has changed during the reporting period
□ Applicable √ Not applicable
The name of the Company’s selected information disclosure newspaper, the URL of the website designated by the CSRC where thesemi-annual report is posted, and the place where the Company’s semi-annual report is available have not changed during thereporting period, which can be found in the 2020 Annual Report.
IV. Key Accounting Data and Financial IndicatorsWhether the Company needs performed retroactive adjustment or restatement of accounting data in prior years or not
√ Yes □ No
Retroactive adjustment or restatement of reasonsConsolidated under the Same Control
| Item | The Current Reporting Period | The Same Period of the Previous Year | Increase/Decrease of the Current Reporting Period Compared with the Same Period of the Previous Year | |
| Before adjustment | After adjustment | After adjustment | ||
| Operating Revenue (RMB) | 7,254,221,638.01 | 5,290,274,214.99 | 5,303,165,502.25 | 36.79% |
| Net Profit Attributable to Shareholders of the Listed Company (RMB) | 2,408,499,133.50 | 2,211,899,379.72 | 2,208,930,277.20 | 9.03% |
| Net Profit Attributable to Shareholders of the Listed Company after Deducting Non-recurring Gains and Losses (RMB) | 2,279,454,655.63 | 2,114,837,105.23 | 2,114,837,105.23 | 7.78% |
| Net Cash Flow Generated by Operational Activities (RMB) | 2,271,157,481.77 | 1,147,083,367.93 | 1,127,560,220.11 | 101.42% |
| Basic Earnings per Share (RMB/Share) | 0.93 | 0.86 [Note] | 0.86 [Note] | 8.14% |
| Diluted Earnings per Share (RMB/Share) | 0.93 | 0.86 [Note] | 0.86 [Note] | 8.14% |
| Weighted Average ROE | 12.02% | 12.44% | 12.31% | Decrease 0.29 percentage point |
| Item | At the End of the Current Reporting Period | At the End of the Previous Year | Increase/Decrease at the End of the Current Reporting Period Compared with the End of the Previous Year | |
| Before adjustment | After adjustment | After adjustment | ||
| Total Assets (RMB) | 33,647,974,809.91 | 30,897,007,799.54 | 30,897,007,799.54 | 8.90% |
| Net Assets Attributable to Shareholders of the Listed Company (RMB) | 20,231,380,128.84 | 19,336,254,922.95 | 19,336,254,922.95 | 4.63% |
Note: Shaoxing Rossence Material Technology Co.,Ltd and Shaoxing Qinjin New Materials Co., Ltd. were included in the scope ofthe Company’s consolidated statements on September 1, 2020, and Weifang Jinghe Real Estate Co., Ltd was included in the scope ofthe Company’s consolidation on November 1, 2020, and the Company made retroactive adjustments to the relevant financialstatement data.[Note] After the implementation of the Company’s profit distribution plan for 2020, the Company’s share capital increased from2,148,662,300.00 shares to 2,578,394,760.00 shares, and the above earnings per share for the same period of the previous year wasrecalculated based on the adjusted share capital.V. Differences in Accounting Data under Domestic and Foreign Accounting Standards
1. Differences of net profits and net assets in the financial reports disclosed according to the internationalaccounting standards and Chinese accounting standards
□ Applicable √ Not applicable
There is no difference in net profits and net assets of this financial report between International Financial Reporting Standards (IFRS)and China Accounting Standards in the reporting period
2. Differences between the net profits and net assets in the financial reports disclosed according to theoverseas accounting standards and Chinese accounting standards
□ Applicable √ Not applicable
There is no difference in net profits and net assets of this financial report between Overseas Accounting Standards and ChinaAccounting Standards in the reporting period.VI. Non-recurring Gains and Losses Items and Their Amounts
VI. Items and Amounts of Non-recurring Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
| Item | Amount |
| Profits or losses from disposal of non-current assets (including the write-off for the accrued impairment of assets) | 1,065,564.79 |
| The government subsidies included in the current profits and losses (excluding the government subsidies closely related to regular businesses of the Company and issued in the quota or quantity based on the national standards) | 76,380,676.96 |
| Gains or losses from investment or asset management entrusted to others | 29,617,969.78 |
| Profits and losses resulting from the changes in fair value for | 23,301,029.03 |
| holding trading financial assets, derivative financial assets and trading financial liabilities, derivative financial liabilities and investment income from disposal of trading financial assets, derivative financial assets, trading financial liabilities, derivative financial liabilities, and other obligatory right investment, excluding the effective hedging businesses related to the regular business operation of the Company | |
| Non-operating revenue and expenses other than the above | 9,566,525.91 |
| Less: Impact of income tax | 10,887,288.60 |
| Total | 129,044,477.87 |
For items defined as non-recurring gains and losses according to the No. 1 Explanatory Announcement on Information Disclosure forCompanies Offering Their Securities to Public - Non-recurring Gains and Losses, or non-recurring gains and losses items listed in thesaid document defined as recurring ones, please specify the reasons.
□ Applicable √ Not applicable
In the reporting period, the Company did not define any non-recurring gains and losses items defined and listed in the No. 1Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to Public - Non-recurring Gains andLosses, as recurring gains and losses items.
Section III Management Discussion and Analysis
I. The Principal Business of the Company during the Reporting Period
NHU is a national high-tech enterprise focusing on the production and sales of nutritional health products and new polymermaterials. It has been innovating and developing around the business fields of nutritional products, aroma chemicals, and newpolymer materials, and striving to build “chemical+” and “biological+” platforms. It has been constantly enriching its productscategory and developing functional chemicals. NHU adheres to the customer-oriented philosophy, takes customers as the center tocreate value, providing solutions for over 100 countries and regions across the world, continuously improving quality of human lifewith high-quality, healthy and green products, and creating sustainable value with win-win development. With leading technologies,scientific management and sincere services, NHU has become a world-renowned supplier of vitamins and a large nationalmanufacturer of aroma chemicals.I. Main Products and ApplicationsNutritional products: NHU’s main vitamin products include vitamin E, vitamin A, vitamin C, DL-methionine, vitamin D3,Vitamin H ,coenzyme Q10 and astaxanthin, which are mainly used as feed and food additives to enhance animal health and boostprofit of breeding industry, as well as to provide the energy and nutrition needed for human being. NHU’s vitamin products, as themain business, have a substantial market share, with a prominent industrial position, famous brand advantages, and the marketstanding of leading domestically and being well-known globally.
Aroma chemicals: NHU’s main aroma chemical products include : linalool, citral, and cis-3-hexenol series, and methyldihydrojasmonate, raspberry ketone and ligustral, covering fragrance and flavor market. Its main aroma chemical products currentlyfocus on the global market, with strong competitiveness, a high market share and relatively stable market structure.
New polymer materials: NHU’s main new material products include PPS and PPA, which are characterized by hightemperature resistance, corrosion resistance and strong stability. At present, PPS series products have successfully entered themainstream market application fields such as automobiles, electronic appliances and environmental protection.
II. Major Operations during the Reporting Period
During the reporting period, the Company has been actively taking countermeasures to seize market opportunities and maintaina positive growth trend in production and operation facing the continuous impact of the global pandemic and changes in the market.Compared with the corresponding period of last year, in the first half of 2021, NHU has achieved RMB 7,254,221,638.01 operatingincome, with an increase of 36.79%; RMB 2,811,545,441.60 total profit, with an increase of 9.82%; and RMB 2,408,499,133.50 net
profit attributable to the shareholders of the listed company, with an increase of 9.03%.
1. Collaborations to ensure the orderly progress of production and operation. During the report period, the market department ofNHU adjusted sales strategy based on the market situation in a timely manner. The production, procurement and other functionaldepartments worked closely with the sales department to improve the response to customers' demand. By establishing strategiccooperation with shipping companies and predicting the market and locking space in advance, NHU has ensured to the stabledelivery of products during special periods. And by establishing a key raw material database for weekly follow-up, implementstrategic reserves, strategic purchases and other forms, NHU has ensured to the stable supply of bulk raw materials. All suchmeasures guaranteed the stable operation of sales business.
2. Promoting the construction of key projects and research subject orderly. During the report period, NHU have beenimproving the quality and efficiency of its products and their competitiveness through process optimization and internal tapping;NHU’s 100,000-ton plant of the 250,000-ton-per-year DL-methionine phase II project, the biofermentation project (Phase I) andother new projects were in stable production; NHU’s 150,000-ton plant of the 250,000-ton-per-year DL-methionine phase II projectwas on schedule and the overall progress was under control. NHU has been steadily advancing other key R&D topics according tothe planned nodes, with its innovative achievements recognized by the society. The project of “The Key Innovation andIndustrialization Technology for Tailoring Supported Catalysts in the Micro-nano dimension” won the first prize of TechnologicalInvention in Zhejiang Province in 2020.
3. Continuously consolidating the management foundation and improving management efficiency. During the reporting period,NHU gave full play to the advantages of overall capital operation to ensure the funds required for operation, project construction andinvestment. At the same time, NHU also optimized the process information system, sorted out and optimized core business processesto improve operational efficiency, launched the equipment integrity management system, promoted the HSE management systempilot and intelligent manufacturing system construction, optimized the company organization, promoted the rotation and trainingmechanism, and innovated an efficient salary and performance management model to stimulate the initiative of each level.
There was not any significant change on NHU’s main business and business model during the reporting period.II. Core Competitiveness Analysis
1. Advantages of Corporate Culture and the Management Team. The Company advocates the purpose of “creating wealth,achieving employees and benefiting society”, the values of “new, harmony, union”, the operation philosophy of “wealth creation,balance and sustainability”, the corporate spirit of “seeking truth, innovation, quality and efficiency”, innovates and improves itsmanagement, thereby guaranteeing the stable development of the enterprise. Under the influence of the “teacher culture”, theCompany advocates that the sage is the teacher, the competent is the teacher, being modest, and educating carefully. The human
resource management is transformed into the human resource business support service. The talent supply chain construction and theleader team construction are effectively promoted. Business and professional leading talents are recruited and undergraduates aresystematically trained and reserved by introducing the business-oriented and specialty-oriented talents. The talent cultivationmeasures such as employee assignment, project training and work shift are extensively implemented. A talent team which ispioneering, innovative, pragmatic and efficient and an excellent management team which is long-term, stable and with high sense ofresponsibility are developed, promoting continuous, healthy and rapid development of the Company.
2. Advantages of Technical Resources and Technology Research and Development The Company insists on the research anddevelopment philosophy of “demand-oriented, internal and external integration”, integrates global resources, and closely cooperateswith famous domestic and foreign research institutes and universities such as Zhejiang University, Chinese Academy of Sciences,Jiangnan University, China Agricultural University, Zhejiang University of Technology, and CysBio biotechnology company ofDenmark to jointly conduct prospective studies and application field studies on chemicals. The Company has developed research anddevelopment institutes such as state-recognized enterprise technology center, national-level post-doctoral scientific researchworkstation, and national model academician and expert workstation, set up laboratories such as bio-pharmaceutical laboratory,supercritical reaction laboratory and engineering equipment research center, equipped cutting-edge research and developmentinstruments such as 600M NMR with cryoprobes, and mastered leading domestic technologies such as supercritical reaction, highvacuum distillation and continuous reaction.
3. Advantages of processes and equipment. The Company values effective combination of processes and equipment, has set upthe process equipment research institute to cooperate with domestic and foreign famous engineering companies and scientificresearch institutes. The Company keeps improving the quality of processes and equipment from all rounds through introduction,digestion, absorption and re-innovation of advanced technologies. The Company is dedicated to large-scale, airtight, continuous andautomated transformation of equipment in process and equipment research and development, to save energy, reduce emissions,improve the labor productivity and product quality, increase the intrinsic safety of the production process, lower the cost and improvethe level of automation. Currently, the Company has developed various efficient reaction and separation platforms includingcontinuous reaction, high vacuum distillation, continuous extraction, continuous crystallization, efficient filtration, simulated movingbed separation, microchannel and micro-interface reaction with respect to specific processes, and remarkable results have beenachieved in continuous transformation of reaction, vapor-liquid-solid heterogeneous reaction, and separation of air sensitive and heatsensitive materials through continuous improvement of large-size equipment.
4. Brand Advantages The Company insists on “good faith”, and has set the goals of serving the customers and creating industryvalues together with the customers for years. The Company consistently provides the customers with secure and superior products as
well as efficient and satisfactory services through technical innovation. After years of development and accumulation, the Companyhas been awarded several honorary titles in the global fine chemical industry, such as one of top ten feed additive brands in China andone of large-scale vitamin feed additive enterprises in China. The favorable reputation in the market has laid a solid foundation forthe healthy and persistent development of the Company.
III. Main Business AnalysisRefer to “I. The Principal Business of the Company during the Reporting Period”Year-on-year changes in key financial data
Unit: RMB
| Item | The Current Reporting Period | The Same Period of the Previous Year | Year-on-year increase or decrease | Reasons for Changes |
| Operating Income | 7,254,221,638.01 | 5,303,165,502.25 | 36.79% | Mainly due to the increase in sales volume of vitamin E and DL-methionine products. |
| Operating Cost | 3,755,325,045.02 | 2,143,809,060.49 | 75.17% | Mainly due to the increase in sales volume of vitamin E and DL-methionine pruducts and adjusting freight and transportation premium into operating costs for implementing the new income standard. |
| Sales Expenses | 55,479,574.90 | 132,057,487.52 | -57.99% |
| Administration Expenses | 187,505,914.10 | 183,896,476.30 | 1.96% | Mainly due to the increase in depreciation. |
| Financial Expenses | 144,530,139.09 | 76,306,971.80 | 89.41% | Mainly due to the increase in loan interests and the increase in foreign exchange losses which caused by the fluctuation in foreign exchange rate. |
| Income Tax Expense | 394,709,861.22 | 345,891,461.03 | 14.11% | Mainly due to the increase of taxable income |
| Research and Development Expense | 351,532,764.55 | 219,152,938.63 | 60.41% | Mainly due to the increase of material inputs and salary |
| Net Cash Flow Generated by Operating | 2,271,157,481.77 | 1,127,560,220.11 | 101.42% | Mainly due to the increase of accordance with operating income growth, meanwhile sales collection increases during the |
| Item | The Current Reporting Period | The Same Period of the Previous Year | Year-on-year increase or decrease | Reasons for Changes |
| Activities | current reporting period | |||
| Net Amount of Cash Flow Generated by Investment Activities | -1,066,449,910.49 | 1,519,123,736.14 | -170.20% | Mainly due to the decrease of the expired bank financial products in the current reporting period |
| Net Cash Flow Generated by Financing Activities | 351,773,744.86 | -649,397,506.59 | 154.17% | Mainly due to the increase of loans |
| Net Additions to Balance of Equivalents | 1,512,856,721.48 | 2,027,758,341.46 | -25.39% | Mainly due to the decrease in expired bank financial products |
Significant changes in the composition of the Company’s profit or sources of profit during the reporting period
□ Applicable √ Not applicable
No significant changes in the composition of the Company’s profit or sources of profit during the reporting period.Operating Income Structure
Unit: RMB
| Item | The Current Reporting Period | The Same Period of the Previous Year | Year-on-year increase or decrease | ||
| Amount | Proportion in Operating Income | Amount | Proportion in Operating Income | ||
| Total Revenue | 7,254,221,638.01 | 100% | 5,303,165,502.25 | 100% | 36.79% |
| By Industry | |||||
| Pharmaceutical Chemicals | 6,758,771,833.00 | 93.17% | 4,943,797,504.30 | 93.22% | 36.71% |
| Others | 495,449,805.01 | 6.83% | 359,367,997.95 | 6.78% | 37.87% |
| By Product | |||||
| Nutritional Products | 5,452,151,744.71 | 75.16% | 3,720,891,315.66 | 70.16% | 46.53% |
| Aroma Chemicals | 1,126,980,745.24 | 15.53% | 1,052,666,046.25 | 19.85% | 7.06% |
| New Polymer Materials | 418,367,560.13 | 5.77% | 324,009,632.99 | 6.11% | 29.12% |
| Others | 256,721,587.93 | 3.54% | 205,598,507.35 | 3.88% | 24.87% |
| By Region | |||||
| Domestic Sales | 3,295,559,229.13 | 45.43% | 2,056,800,286.67 | 38.78% | 60.23% |
| Export Sales | 3,958,662,408.88 | 54.57% | 3,246,365,215.58 | 61.22% | 21.94% |
Industry, product, or region accounting for more than 10% of the Company’s operating revenue or profit
√ Applicable □ Not applicable
Unit: RMB
| Item | Operating Income | Operating Cost | Gross Margin | Increase or Decrease of Operating Revenue Compared with the Same Period of Last Year | Increase and Decrease of Operating Cost over the Same Period of Last Year | Increase or Decrease of Gross Margin Compared with the Same Period of Last Year |
| By Industry | ||||||
| Pharmaceutical Chemicals | 6,758,771,833.00 | 3,390,108,464.20 | 49.84% | 36.71% | 75.45% | Decrease 11.08 percentage point |
| By Product | ||||||
| Nutritional Products | 5,452,151,744.71 | 2,613,224,909.87 | 52.07% | 46.53% | 91.96% | Decrease 11.34 percentage point |
| Aroma Chemicals | 1,126,980,745.24 | 625,409,670.40 | 44.51% | 7.06% | 37.41% | Decrease 12.25 percentage point |
| By Region | ||||||
| Domestic Sales | 3,295,559,229.13 | 1,898,486,520.10 | 42.39% | 60.23% | 111.80% | Decrease 14.29 percentage point |
| Export Sales | 3,958,662,408.88 | 1,856,838,524.92 | 53.09% | 21.94% | 48.85% | Decrease 8.48 percentage point |
When the statistical caliber of the Company’s main business data is adjusted in the reporting period, the Company’s main businessdata in the most recent period should be subject to the one after the statistical caliber adjusted at the end of the reporting period.
□ Applicable √ Not applicable
Reasons for over 30% changes in related data on year-on-year basis
√ Applicable □ Not applicable
① By Industry: Compared with the corresponding period of last year, the operating revenue of pharmaceutical chemical industryis increased by 36.71%, the operating cost is increased by 75.45%，mainly due to the increase of the sales of vitamin E andDL-methionine.
② By Product: Compared with the corresponding period of last year, the operating revenue of nutrition is increased by 46.53%,the operating cost is increased by 91.96%，mainly due to the increase of the sales of vitamin E and DL-methionine. And mainly dueto the increase of the sales, the operating cost of aroma chemicals is increased by 37.41% over the corresponding period of last year.
③ By Region: Mainly due to the sales increase of nutrition series products, the operating revenue in domestic business and theoperating cost in domestic and foreign business are increased by more than 30%.
IV. Non-main Business Analysis
□ Applicable √ Not applicable
V. Analysis of Assets and Liabilities
1. Significant changes in assets composition
Unit: RMB
| Item | At the End of the Current Reporting Period | At the End of the Previous Year | Proportion Increase and Decrease | Statement on Significant Changes | ||
| Amount | Proportion to Total Assets | Amount | Proportion to Total Assets | |||
| Cash and Bank Balances | 6,412,612,895.26 | 19.06% | 4,927,657,236.24 | 15.95% | Increase 3.11 percentage point | Increase in net cash flow generated by operating activities |
| Accounts Receivable | 2,502,876,087.12 | 7.44% | 1,930,930,930.01 | 6.25% | Increase 1.19 percentage point | Increase in accordance with operating income growth |
| Inventories | 3,522,689,642.11 | 10.47% | 3,117,042,558.78 | 10.09% | Increase 0.38 percentage point | No significant change |
| Fixed Assets | 13,752,889,539.13 | 40.87% | 13,914,151,215.54 | 45.03% | Decrease 4.16 percentage point | No significant change |
| Long-term Equity Investment | 358,710,928.96 | 1.07% | 343,378,891.18 | 1.11% | Decrease 0.04 percentage point | No significant change |
| Construction in progress | 2,295,793,123.43 | 6.82% | 1,325,545,420.56 | 4.29% | Increase 2.53 percentage point | Mainly due to the increase of the investment in Shandong Industrial Park Project TMB and Shangyu Industrial Park Project PPS |
| Right-of-use | 5,015,022.59 | 0.01% | 0 | 0.00% | Increase 0.01 | Impact of the implementation of |
| Assets | percentage point | the new lease standard in 2021 | ||||
| Short-term Borrowings | 2,398,007,852.59 | 7.13% | 2,363,525,192.53 | 7.65% | Decrease 0.52 percentage point | No significant change |
| Contract Liabilities | 44,962,287.54 | 0.13% | 56,302,537.11 | 0.18% | Decrease 0.05 percentage point | No significant change |
| Long-term Borrowings | 5,794,842,788.03 | 17.22% | 4,136,875,354.33 | 13.39% | Increase 3.83 percentage point | increase in loans |
| Lease Liabilities | 5,398,990.60 | 0.02% | 0 | 0.00% | Increase 0.02 percentage point | Impact of the implementation of the new lease standard in 2021 |
2. Major overseas assets
√ Applicable □ Not applicable
| Asset Specifics | Causes | Asset Size | Location | Operation Mode | Control Measures to Safeguard Asset Security | Earnings | The Proportion of Overseas Assets to the Company’s Net Assets | Whether there is a Significant Impairment Risk |
| NHU EUROPE GmbH | Establishment | 824,800,061.59 | Luneburg, Germany | Trading enterprises | Appoint directors and hire accounting firms to audit the annual financial report to ensure the safety of assets. | 15,167,263.78 | 0.61% | No |
| NHU Performance Materials GmbH | Establishment | 25,054,953.10 | Luneburg, Germany | Trading enterprises | Appoint directors and hire accounting firms to audit the annual financial report | 1,556,597.70 | 0.05% | No |
| to ensure the safety of assets. | ||||||||
| Bardoterminal GmbH | Subsidiaries acquired through business combinations not under common control | 14,086,901.27 | Luneburg, Germany | The transportation and warehousing sector | Appoint directors and hire accounting firms to audit the annual financial report to ensure the safety of assets. | 1,838,318.55 | 0.06% | No |
3. Assets and liabilities measured at fair value
√ Applicable □ Not applicable
Unit: RMB
| Item | At the Beginning of the Reporting Period | Changes in Fair Value Gains and Losses in the Current Period | Cumulative Fair Value Changes in Equity | Impairment Loss of the Reporting Period | Purchase Amount of the Reporting Period | Sales Amount of the Reporting Period | Other Variations | At the End of the Reporting Period |
| Financial Assets | ||||||||
| 1. Trading Financial Assets (excluding derivative financial assets) | 850,000,000.00 | 1,320,000,000.00 | 850,000,000.00 | 1,320,000,000.00 | ||||
| 2.Derivative Financial Assets | 2,227,964.70 | 4,198,235.42 | 6,426,200.12 | |||||
| Financial Assets Subtotal | 852,227,964.70 | 4,198,235.42 | 1,320,000,000.00 | 850,000,000.00 | 1,326,426,200.12 | |||
| Total | 852,227,964.70 | 4,198,235.42 | 1,320,000,000.00 | 850,000,000.00 | 1,326,426,200.12 | |||
Are there any significant changes in the measurement attributes of the company's main assets during the reporting period?
□ Yes √ No
4. Restrictions on asset rights as of the end of the reporting period
(1) The right of use of RMB 230,449,397.69 various cash deposits in monetary fund is restricted due to pledge.
(2) The right of use of RMB8,890,529.21 receivables for financing is restricted due to pledge for issuing bank acceptance bill.
(3) The right of use of RMB431,546,440.19 notes receivable is restricted due to being pledged for issuing bank acceptance bill.
(4) The right of use of RMB 86,062,988.84 fixed assets is restricted due to being mortgaged to the bank for Loan.
(5) The right of use of RMB10,074,981.26 intangible assets is restricted due to being mortgaged to the bank for Loan.VI. Investment analysis
1. Overview
√ Applicable □ Not applicable
| Investment In The Reporting Period (RMB) | Investment Over The Corresponding Period Of Last Year(RMB) | Rate Of Change |
| 1,118,444,545.53 | 710,039,301.37 | 57.52% |
2. Significant equity investments acquired during the reporting period
□ Applicable √ Not applicable
3. Major non-equity investments underway during the reporting period
□ Applicable √ Not applicable
4. Financial assets investment
(1) Securities investment
□ Applicable √ Not applicable
No such case as securities investment during the reporting period.
(2) Derivatives investment
√ Applicable □ Not applicable
Unit: ten thousand RMB
| Counterparty | Relation with Related Party | Whether it is a Related Transaction | Types of Derivatives Investment | Initial Amount of Derivatives Investment | Starting Date | Termination Date | Investment Amount at the Beginning of the Period | Amount Purchased during the Reporting Period | Amount Sold during the Reporting Period | Amount of Provision for Impairment Accrued (if any) | Investment Amount at the End of the Period | Proportion of Investment Amount in the Company’s net Assets at End of the Reporting Period | Actual Profit and Loss During the Reporting Period |
| Bank | Non-related party | No | Structured Forward Contracts | 9,753.70 | July 20, 2020 | February 24, 2021 | 2,459.60 | 2,459.60 | 9.48 | ||||
| Bank | Non-related party | No | Forward Contracts | 4,802.49 | December 15, 2020 | March 25, 2021 | 4,802.49 | 4,802.49 | 81.84 | ||||
| Bank | Non-related party | No | Structured Forward Contracts | 19,803.00 | December 22, 2020 | March 25, 2021 | 19,803.00 | 19,803.00 | -46.41 | ||||
| Bank | Non-related party | No | Structured Forward Contracts | 19,686.44 | December 30, 2020 | February 22, 2021 | 13,116.48 | 13,116.48 | |||||
| Bank | Non-related party | No | Structured Forward Contracts | 15,744.40 | December 30, 2020 | January 25, 2021 | 10,487.20 | 10,487.20 | |||||
| Bank | Non-related | No | Structured | 9,840.25 | Decemb | January 25, | 6,554.50 | 6,554.50 |
| party | Forward Contracts | er 30, 2020 | 2021 | ||||||||||
| Bank | Non-related party | No | Structured Forward Contracts | 39,361.13 | January 6, 2021 | January 19, 2021 | 39,361.13 | 39,361.13 | 9.93 | ||||
| Bank | Non-related party | No | Structured Forward Contracts | 9,251.42 | February 9, 2021 | February 18, 2021 | 9,251.42 | 9,251.42 | 2.76 | ||||
| Bank | Non-related party | No | Structured Forward Contracts | 3,186.36 | January 8, 2021 | February 22, 2021 | 3,186.36 | 3,186.36 | -5.69 | ||||
| Bank | Non-related party | No | Structured Forward Contracts | 41,085.00 | January 8, 2021 | March 26, 2021 | 41,085.00 | 41,085.00 | 111.66 | ||||
| Bank | Non-related party | No | Forward Contracts | 12,923.70 | January 13, 2021 | January 25, 2021 | 12,923.70 | 12,923.70 | -157.9 | ||||
| Bank | Non-related party | No | Forward Contracts | 8,768.32 | January 13, 2021 | March 26, 2021 | 8,768.32 | 8,768.32 | 10.58 | ||||
| Bank | Non-related party | No | Forward Contracts | 7,117.00 | January 14, 2021 | January 29, 2021 | 7,117.00 | 7,117.00 | -77.88 | ||||
| Bank | Non-related party | No | Structured Forward Contracts | 32,624.00 | January 28, 2021 | March 25, 2021 | 32,624.00 | 32,624.00 | 143.27 | ||||
| Bank | Non-related party | No | Structured Forward Contracts | 25,468.00 | January 28, 2021 | May 25, 2021 | 25,468.00 | 25,468.00 | 138.41 |
| Bank | Non-related party | No | Structured Forward Contracts | 32,516.00 | February 5, 2021 | March 26, 2021 | 32,516.00 | 32,516.00 | 93.00 | ||||
| Bank | Non-related party | No | Structured Forward Contracts | 19,485.00 | February 19, 2021 | March 15, 2021 | 19,485.00 | 19,485.00 | 22.70 | ||||
| Bank | Non-related party | No | Forward Contracts | 12,625.60 | February 23, 2021 | April 26, 2021 | 12,625.60 | 12,625.60 | 207.75 | ||||
| Bank | Non-related party | No | Forward Contracts | 38,986.40 | February 26, 2021 | May 17, 2021 | 38,986.40 | 38,986.40 | -58.70 | ||||
| Bank | Non-related party | No | Forward Contracts | 13,088.15 | March 8, 2021 | May 25, 2021 | 13,088.15 | 13,088.15 | 88.86 | ||||
| Bank | Non-related party | No | Forward Contracts | 3,293.25 | April 1, 2021 | April 26, 2021 | 3,293.25 | 3,293.25 | 13.87 | ||||
| Bank | Non-related party | No | Forward Contracts | 3,293.80 | April 1, 2021 | April 26, 2021 | 3,293.80 | 3,293.80 | 14.41 | ||||
| Bank | Non-related party | No | Forward Contracts | 17,233.23 | April 7, 2021 | August 25, 2021 | 17,233.23 | 10,910.75 | 6,322.48 | 0.31% | 263.29 | ||
| Bank | Non-related party | No | Forward Contracts | 3,117.63 | April 9, 2021 | April 26, 2021 | 3,117.63 | 3,117.63 | 41.43 | ||||
| Bank | Non-related party | No | Forward Contracts | 9,431.22 | April 19, 2021 | June 25, 2021 | 9,431.22 | 9,431.22 | 94.72 | ||||
| Bank | Non-related party | No | Forward Contracts | 12,948.00 | April 30, 2021 | May 25, 2021 | 12,948.00 | 12,948.00 | -31.00 | ||||
| Bank | Non-related party | No | Structured Forward | 16,250.20 | April 30, 2021 | July 26, 2021 | 16,250.20 | 9,711.20 | 6,539.00 | 0.32% | 263.97 |
| Contracts | |||||||||||||
| Bank | Non-related party | No | Forward Contracts | 19,397.10 | May 13, 2021 | July 26, 2021 | 19,397.10 | 12,923.60 | 6,473.50 | 0.32% | 229.07 | ||
| Bank | Non-related party | No | Forward Contracts | 15,812.50 | May 18, 2021 | November 22, 2021 | 15,812.50 | 7,854.50 | 7,958.00 | 0.39% | 277.65 | ||
| Bank | Non-related party | No | Forward Contracts | 12,815.00 | June 4, 2021 | June 25, 2021 | 12,815.00 | 12,815.00 | 100.60 | ||||
| Bank | Non-related party | No | Forward Contracts | 19,270.25 | June 7, 2021 | July 26, 2021 | 19,270.25 | 12,802.00 | 6,468.25 | 0.32% | 99.98 | ||
| Bank | Non-related party | No | Forward Contracts | 1,553.69 | June 15, 2021 | June 25, 2021 | 1,553.69 | 1,553.69 | -0.71 | ||||
| Bank | Non-related party | No | Forward Contracts | 5,448.24 | June 15, 2021 | July 26, 2021 | 5,448.24 | 5,448.24 | 0.27% | 72.51 | |||
| Bank | Non-related party | No | Forward Contracts | 19,290.90 | June 17, 2021 | June 25, 2021 | 19,290.90 | 19,290.90 | 223.34 | ||||
| Bank | Non-related party | No | Forward Contracts | 4,527.60 | June 22, 2021 | June 25, 2021 | 4,527.60 | 4,527.60 | 77.56 | ||||
| Bank | Non-related party | No | Forward Contracts | 6,175.40 | June 30, 2021 | August 25, 2021 | 6,175.40 | 6,175.40 | 0.31% | 15.75 | |||
| Total | 545,974.37 | -- | -- | 57,223.27 | 466,344.09 | 478,182.49 | 45,384.87 | 2.24% | 2,330.10 | ||||
| Sources of Funds for Derivatives Investment | Self-owned funds | ||||||||||||
| Litigation Involved (if applicable) | N/A | ||||||||||||
| Disclosure Date of Board of Directors’ Announcement on the Approval of Derivatives Investment (if any) | March 31, 2021 | ||||||||||||
| Disclosure Date of Shareholder Meeting’s Announcement on the Approval of Derivatives Investment (if any) | Not applicable. |
| Risk Analysis and Description of Control Measures for Derivatives Positions during the Reporting Period (including but not limited to market risk, liquidity risk, credit risk, operational risk, legal risk, etc.) | To prevent exchange rate risk, the Company and its subsidiaries have carried out derivative business, and the Company and its subsidiaries strictly implement the Rules and Regulations for the Administration of Foreign Exchange Hedging Business |
| Changes in Market Prices or Product Fair Value of Invested Derivatives during the Reporting Period, and the Analysis of the Fair Value of Derivatives Should Disclose the Specific Methods Used and the Setting of Related Assumptions and Parameters. | The floating income of the fair value of the invested derivatives was RMB 9.3699 million at the beginning of the reporting period, and it was RMB23.67 million at the end of the reporting period. |
| Explanation of Whether the Company’s derivatives Accounting Policies and Specific Accounting Principles have Changed Significantly during the Reporting Period Compared with the Previous Reporting Period | Not applicable. |
| Independent directors’ special opinions on the Company's derivatives investment and risk control | The Company has formulated the Rules and Regulations for the Administration of Foreign Exchange Hedging Business, and has established specific operating procedures for conducting foreign exchange hedging business by strengthening internal control, implementing risk prevention measures and improving the management level. The Company has analyzed the feasibility of its foreign exchange hedging business. Overall, it is feasible to carry out foreign exchange hedging, which can effectively reduce the risk of exchange rate fluctuations and help stabilize the profit level. The content and review procedures of the matter are in compliance with the relevant laws, regulations, regulatory documents and the Articles of Association, and do not constitute any damage to the interests of the Company and its other shareholders. We unanimously agree with the Company to conduct foreign exchange hedging business. |
VII. Major Assets and Equity Sales
1. Major assets sales
□ Applicable √ Not applicable
No major assets sales in the reporting period of the Company
2. Major equity sales
□ Applicable √ Not applicable
VIII. Analysis of Major Holding and Equity Participation Companies
√ Applicable □ Not applicable
Major subsidiaries and equity participation companies with a net profit impact of over 10%.
Unit: RMB
| Company Name | Company Type | Main businesses | Registered Capital | Total Assets | Net Assets | Operating Income | Operating Profit | Net Profit |
| Shangyu Bio-Chem | Subsidiary Company | Production and sales of feed additives | RMB 50 million | 4,403,903,838.82 | 3,082,086,702.23 | 1,107,164,203.39 | 593,492,656.61 | 514,659,519.60 |
| Shandong Pharmaceutical | Subsidiary Company | Production and sales of Aroma chemicals | RMB 586 million | 2,828,418,701.22 | 2,170,404,035.10 | 1,305,532,064.37 | 485,847,711.12 | 426,226,742.46 |
| Shandong Amino-acids | Subsidiary Company | Production and sales of methionine | RMB 830 million | 5,156,411,491.45 | 3,378,453,465.25 | 1,176,845,216.88 | 345,969,979.63 | 304,177,903.08 |
| Shandong Vitamins | Subsidiary Company | Production and sales of feed additives | RMB 500 million | 3,543,688,342.06 | 1,481,495,520.05 | 1,367,424,696.46 | 616,957,675.58 | 532,251,323.27 |
Acquisition and disposal of subsidiaries during the reporting period
√ Applicable □ Not applicable
| Company Name | Method of acquisition and disposal of subsidiaries during the reporting period | Impact on overall production management and performance |
| Zhejiang NHU Nylon Materials Co., Ltd. | Newly established | N/A |
IX. The structured entity controlled by the Company
□ Applicable √ Not applicable
X. Risks and Countermeasures
1. Macroeconomic Risks
Influenced by the global Covid-19 pandemic, the macroeconomic direction becomes more uncertain. NHU will pay closeattention to the evolution of the Covid-19 pandemic and its influence on the macroeconomy and this industry, actively respond to thepandemic and promote the stable development of NHU.
2. Industry and Market Competition Risk
The Company faces competition in its own industry or cross-industry entrants in the domestic and international markets, and theemergence of new technologies and new processes will not only impact the market, but also challenge the market position of theCompany in the industry. In the future, the Company will continuously lift its capabilities of research, development and innovation,improve its processes, enhance cost control, and improve the core competitiveness.
3. Risk in Raw Material Price Fluctuation
In view of the scale compression of industries with excess production capacity through the national supply-side reform, somesmall and medium-sized upstream suppliers will face high operating pressure, which will cause reduction of raw materialprocurement channels and fluctuation of the raw material prices. Due to a high proportion of the raw material cost in the total cost ofthe Company, the fluctuation of the raw material prices will impact the business performance of the Company. By establishingstrategic partnership with suppliers, the Company takes such measures as strategic procurement, expansion of procurement channels,and reasonable control of the inventory according to the market conditions, trying to guarantee the material supply and control thecost increase at a reasonable level to the maximum extent.
4. Risk in Exchange Rate Fluctuation
Considering that the sales revenue of the Company in the foreign markets accounts for a high proportion, the sales revenue andprofitability of the Company will be influenced by the trade barriers and exchange rate fluctuation caused by trade friction betweenChina and US and instability of the international economic situation. In the future, the Company will take targeted measures torespond to the international market changes, stabilize the international market position and actively expand new economic growthpoints to keep stable growth of the Company’s business.
5. Environment Protection Policy Risk
The Company is a player in the chemical and pharmaceutical manufacturing industry, which will face stricter supervision inrespect of environmental protection along with rising awareness of social and environmental protection. The Company adopts theidea of green development, implements the environmental protection management in the full life cycle, and enhances reduction,
recycling and harmless treatment of the three wastes from reduction at the source, process control and treatment at the end. In termsof process, the Company enhances control of the process source, carries out environmental protection assessment from processdevelopment and plans the environmental protection line to guarantee treatment of three wastes covering the whole chain and process.The Company takes ISO14001 as the management framework during production, establishes the systematic management system, andcarries out environmental protection management covering all the employees, times and spaces from the production source to thecenter of three wastes. In terms of hardware, the Company pays attention to environmental protection investment, equips multiplessets of waste water, waste gas and solid waste treatment devices and ensures effective running of various environmental protectionfacilities. The Company sees environmental protection as a responsibility rather than an obligation, continuously exploring the roadof sustainable development that is green and low-carbon.
Section IV Corporate GovernanceI. Relevant Situation of the Annual General Meeting of Shareholders and the ExtraordinaryGeneral Meeting of Shareholders Held in the Reporting Period
1. The shareholders’ meetings for this reporting period
| Conference Session | Conference Type | Percentage of Investors Involved | Date of Conference | Date of Disclosure | Conference Resolution |
| 2020 Annual General Meeting of Shareholders | Annual General Meeting | 54.00% | April 21, 2021 | April 22, 2021 | It reviewed and approved 10 proposals, including the “2020 Annual Report of the Board of Directors”, as described in Announcement No. 2021-019 on www.cninfo.com.cn |
2. Convening of the extraordinary shareholders’ general meetings upon request of the preferredstockholders whose voting rights are restored
□ Applicable √ Not applicable
II. Changes of Directors, Supervisors and Senior Executives
□ Applicable √ Not applicable
There were no changes in the directors, supervisors and senior executives of the Company during the reporting period, which can befound in the 2020 Annual Report.III. Profit Distribution and Capital Reserve Converted to Share Capital in the ReportingPeriod
□ Applicable √ Not applicable
The Company will not distribute cash dividend, distribute bonus shares, or distribute shares from capital reserve in the reportingperiod.
IV. Implementation of the Company’s Equity Incentive Plan, Employee Stock OwnershipPlan or Other Employee Incentive Measures
√ Applicable □ Not applicable
The third employee stock ownership plan of the Company was reviewed and approved by the second extraordinary shareholders’
meeting of 2020 held on November 11, 2020, the current employee stock ownership plan is managed by the Company itself, andthe Company’s shares are acquired and held by stock purchase through secondary market, with total funds not exceeding RMB 306million and a duration of not more than 24 months. As of February 26, 2021, the Company has completed the stock purchase throughthe secondary market bidding transaction, and purchased 8,442,935 shares of the Company, accounting for 0.39% of the total sharecapital of the Company, with a transaction amount of RMB 303,710,918.74 and an average transaction price of approximately RMB
35.97 per share, with a lock-up period of 12 months from February 27, 2021. For details, please refer to the “Announcement on theCompletion of Stock Purchase under the Third Employee Stock Purchase Plan” (2021-004) published on http://www.cninfo.com.cn .The 2020 Annual General Meeting of Shareholders reviewed and approved the “2020 Profit Distribution Proposal”, agreeing todistribute a cash dividend of RMB 7 (including tax) for every 10 shares to all shareholders based on the total share capital of2,148,662,300 shares at that time, and to transfer 2 shares for every 10 shares to all shareholders by capital reserve. On May 19, 2021,the Company implemented the 2020 annual equity distribution. After the transfer, the shares held by the third employee stockownership plan changed from 8,442,935 shares to 10,131,522 shares, accounting for the same proportion of the Company’s totalshare capital. On June 9, 2021, the second holders’ meeting of the third employee stock ownership plan elected Mr Qiu Jinzhuo as amember of the Management Committee of the third employee stock ownership plan, and his term of office coincides with theduration of the third employee stock ownership plan. For details, please refer to the “Announcement on Adjusting the Members of theManagement Committee of the Third Employee Stock Ownership Plan” (2021-022) published on http://www.cninfo.com.cn .
Section V Environmental and Social ResponsibilitiesI. Major Environmental IssuesWhether the listed company and its subsidiaries belong to the key pollutant discharging units announced by the environmentalprotection department
√ Yes □ No
| Name of company or subsidiary | Name of main pollutants and pollutant characteristics | Emission methods | Number of emission outlets | Distribution of emission outlets | Emission concentration | Implemented pollutant emission standards | Total emission | Total approved emission | Excess emissions |
| NHU | VOC | Emission filter | 1 | Plant area | 10mg/m? | 100mg/m? | 0.61t | 54.95t/a | Not exceeding the standard |
| NHU | SO2 | Emission filter | 3 | Plant area | 3mg/m? | 50mg/m? | 0.04t | 8.612t/a | Not exceeding the standard |
| NHU | NOX | Emission filter | 3 | Plant area | 38mg/m? | 150mg/m? | 0.39t | 28t/a | Not exceeding the standard |
| NHU | Particulate | Emission | 3 | Plant area | 5mg/m? | 20mg/m? | 0.04t | 2.11t/a | Not |
| Name of company or subsidiary | Name of main pollutants and pollutant characteristics | Emission methods | Number of emission outlets | Distribution of emission outlets | Emission concentration | Implemented pollutant emission standards | Total emission | Total approved emission | Excess emissions |
| matters | filter | exceeding the standard | |||||||
| NHU | COD | Collection pipe | 1 | Plant area | 174mg/L | 500mg/L | 9.34t | 189.5t/a | Not exceeding the standard |
| NHU | Ammonia nitrogen | Collection pipe | 1 | Plant area | 1.7mg/L | 35mg/L | 0.19t | 13.28t/a | Not exceeding the standard |
| NHU | Total nitrogen | Collection pipe | 1 | Plant area | 19mg/L | 120mg/L | 1.85t | 45.52t/a | Not exceeding the standard |
| Shangyu Bio-Chem | NOX | Emission filter | 1 | Plant area | 47mg/m? | 240mg/m? | 6.775t | 12.96t/a | Not exceeding the standard |
| Shangyu Bio-Chem | VOC | Emission filter | 3 | Plant area | 5mg/m? | 150mg/m? | 12.624t | 271.182t/a | Not exceeding the standard |
| Shangyu Bio-Chem | COD | Collection pipe | 1 | Plant area | 310mg/L | 500mg/L | 149.862t | 447.4t/a | Not exceeding the standard |
| Shangyu Bio-Chem | Ammonia nitrogen | Collection pipe | 1 | Plant area | 22mg/L | 35mg/L | 10.927t | 31.318t/a | Not exceeding the standard |
| Shangyu Bio-Chem | Total nitrogen | Collection pipe | 1 | Plant area | 32mg/L | 70mg/L | 15.184t | 62.637t/a | Not exceeding the standard |
| Zhejiang Pharmaceutical | Particulate matters | Emission filter | 1 | Plant area | 3mg/m? | 15mg/m? | 0.0038t | 0.304t/a | Not exceeding the standard |
| Zhejiang Pharmaceutical | Particulate matters | Emission filter | 1 | Plant area | 3mg/m? | 65mg/m? | 0.46t | 8.42t/a | Not exceeding the standard |
| Zhejiang Pharmaceutica | Particulate | Emission | 2 | Plant area | 2.37mg/m? | 30mg/m? | 0.915t | 77.597t/a | Not exceeding the |
| Name of company or subsidiary | Name of main pollutants and pollutant characteristics | Emission methods | Number of emission outlets | Distribution of emission outlets | Emission concentration | Implemented pollutant emission standards | Total emission | Total approved emission | Excess emissions |
| l | matters | filter | standard | ||||||
| Zhejiang Pharmaceutical | SO2 | Emission filter | 2 | Plant area | 7mg/m? | 200mg/m? | 1.089t | 129.40t/a | Not exceeding the standard |
| Zhejiang Pharmaceutical | NOX | Emission filter | 2 | Plant area | 22mg/m? | 200mg/m? | 3.882t | 74.49t/a | Not exceeding the standard |
| Zhejiang Pharmaceutical | NOX | Emission filter | 1 | Plant area | 60mg/m? | 500mg/m? | 11.811t | 28.08t/a | Not exceeding the standard |
| Zhejiang Pharmaceutical | VOC | Emission filter | 2 | Plant area | 10.57mg/m? | 150mg/m? | 3.753t | 167.91t/a | Not exceeding the standard |
| Zhejiang Pharmaceutical | COD | Collection pipe | 1 | Plant area | 310mg/L | 500mg/L | 98.058t | 292.37t/a | Not exceeding the standard |
| Zhejiang Pharmaceutical | Ammonia nitrogen | Collection pipe | 1 | Plant area | 22mg/L | 35mg/L | 7.15t | 20.467t/a | Not exceeding the standard |
| Zhejiang Pharmaceutical | Total nitrogen | Collection pipe | 1 | Plant area | 32mg/L | 70mg/L | 9.935t | 40.93t/a | Not exceeding the standard |
| Zhejiang Special Materials | Particulate matters | Emission filter | 2 | Plant area | 5mg/m? | 30mg/m? | 0.515t | 18.61t/a | Not exceeding the standard |
| Zhejiang Special Materials | SO2 | Emission filter | 2 | Plant area | 14mg/m? | 200mg/m? | 1.182t | 89.7t/a | Not exceeding the standard |
| Zhejiang Special Materials | NOX | Emission filter | 2 | Plant area | 88mg/m? | 200mg/m? | 8.127t | 111.04t/a | Not exceeding the standard |
| Zhejiang Special | VOC | Emission filter | 1 | Plant area | 10mg/m? | 60mg/m? | 0.752t | 69.72t/a | Not exceeding the |
| Name of company or subsidiary | Name of main pollutants and pollutant characteristics | Emission methods | Number of emission outlets | Distribution of emission outlets | Emission concentration | Implemented pollutant emission standards | Total emission | Total approved emission | Excess emissions |
| Materials | standard | ||||||||
| Zhejiang Special Materials | COD | Collection pipe | 1 | Plant area | 310mg/L | 500mg/L | 59.517t | 180.15t/a | Not exceeding the standard |
| Zhejiang Special Materials | Ammonia nitrogen | Collection pipe | 1 | Plant area | 22mg/L | 35mg/L | 4.307t | 12.611t/a | Not exceeding the standard |
| Zhejiang Special Materials | Total nitrogen | Collection pipe | 1 | Plant area | 32mg/L | 70mg/L | 6.046t | 25.221t/a | Not exceeding the standard |
| Shandong Pharmaceutical | Particulate matters | Emission filter | 5 | Plant area | 1.35mg/m? | 10mg/m? | 0.63t | 5.707t/a | Not exceeding the standard |
| Shandong Pharmaceutical | SO2 | Emission filter | 4 | Plant area | 0.113mg/m? | 50mg/m? | 0.7956t | 4.046t/a | Not exceeding the standard |
| Shandong Pharmaceutical | NOX | Emission filter | 5 | Plant area | 14.8mg/m? | 100mg/m? | 5.149t | 77.328t/a | Not exceeding the standard |
| Shandong Pharmaceutical | VOC | Emission filter | 3 | Plant area | 20mg/m? | 60mg/m? | 2.12t | 27.924t/a | Not exceeding the standard |
| Shandong Pharmaceutical | COD | Collection pipe | 1 | Plant area | 639mg/L | 1000mg/L | 136t | 547t/a | Not exceeding the standard |
| Shandong Pharmaceutical | Ammonia nitrogen | Collection pipe | 1 | Plant area | 49.4mg/L | 100mg/L | 4.39t | 54.7t/a | Not exceeding the standard |
| Shandong Pharmaceutical | Total nitrogen | Collection pipe | 1 | Plant area | 54.8mg/L | 120mg/L | 11.4t | 65.64t/a | Not exceeding the standard |
| Shandong NHU Thermoelectri | Particulate matters | Emission filter | 1 | Plant area | 0.325mg/m? | 5mg/m? | 0.429t | 10.51t/a | Not exceeding the |
| Name of company or subsidiary | Name of main pollutants and pollutant characteristics | Emission methods | Number of emission outlets | Distribution of emission outlets | Emission concentration | Implemented pollutant emission standards | Total emission | Total approved emission | Excess emissions |
| c Branch Company | standard | ||||||||
| Shandong NHU Thermoelectric Branch Company | SO2 | Emission filter | 1 | Plant area | 5.34mg/m? | 35mg/m? | 6.51t | 73.61t/a | Not exceeding the standard |
| Shandong NHU Thermoelectric Branch Company | NOX | Emission filter | 1 | Plant area | 19.7mg/m? | 50mg/m? | 28.2t | 105.16t/a | Not exceeding the standard |
| Shandong Amino-acids | SO2 | Emission filter | 4 | Plant area | 7.4mg/m? | 50mg/m? | 5.66t | 92.59t/a | Not exceeding the standard |
| Shandong Amino-acids | NOX | Emission filter | 3 | Plant area | 26.27mg/m? | 100mg/m? | 20.81t | 230.77t/a | Not exceeding the standard |
| Shandong Amino-acids | Particulate matters | Emission filter | 5 | Plant area | 0.56mg/m? | 10mg/m? | 1.28t | 21.19t/a | Not exceeding the standard |
| Shandong Amino-acids | VOC | Emission filter | 1 | Plant area | 13.4mg/m? | 60mg/m? | 31.37t | 184t/a | Not exceeding the standard |
| Shandong Amino-acids | VOC | Emission filter | / | Plant area | / | / | 31.37t | 184t/a | Not exceeding the standard |
| Shandong Amino-acids | COD | Collection pipe | 1 | Plant area | 482.3mg/L | 1000mg/L | 111.89t | 361.5t/a | Not exceeding the standard |
| Shandong Amino-acids | Ammonia nitrogen | Collection pipe | 1 | Plant area | 8.65mg/L | 100mg/L | 2.02t | 36.15t/a | Not exceeding the standard |
| Shandong | Total | Collection | 1 | Plant area | 57.4mg/L | 120mg/L | 14.36t | 43.38t/a | Not |
| Name of company or subsidiary | Name of main pollutants and pollutant characteristics | Emission methods | Number of emission outlets | Distribution of emission outlets | Emission concentration | Implemented pollutant emission standards | Total emission | Total approved emission | Excess emissions |
| Amino-acids | nitrogen | pipe | exceeding the standard | ||||||
| Shandong Vitamins | VOC | Emission filter | 4 | Plant area | 20mg/m? | 60mg/m? | 15.95t | 173.53t/a | Not exceeding the standard |
| Shandong Vitamins | VOC | Emission filter | / | Plant area | / | / | 15.95t | 173.53t/a | Not exceeding the standard |
| Shandong Vitamins | SO2 | Emission filter | 2 | Plant area | 17mg/m? | 50mg/m? | 3.22t | 50.65t/a | Not exceeding the standard |
| Shandong Vitamins | NOX | Emission filter | 3 | Plant area | 95mg/m? | 100mg/m? | 5.9437t | 73.66t/a | Not exceeding the standard |
| Shandong Vitamins | Particulate matters | Emission filter | 4 | Plant area | 5mg/m? | 10mg/m? | 0.948t | 7.42t/a | Not exceeding the standard |
| Shandong Vitamins | COD | Collection pipe | 1 | Plant area | 400mg/L | 2000mg/L | 34.59t | 1140t/a | Not exceeding the standard |
| Shandong Vitamins | Ammonia nitrogen | Collection pipe | 1 | Plant area | 60mg/L | 100mg/L | 3.32t | 57t/a | Not exceeding the standard |
| Shandong Vitamins | Total nitrogen | Collection pipe | 1 | Plant area | 80mg/L | 120mg/L | 2.96t | 68.4t/a | Not exceeding the standard |
| Heilongjiang Biological Technology | Particulate matters | Emission filter | 1 | Plant area | 5.75mg/m? | 30mg/m? | 5.26t | 37.2182t/a | Not exceeding the standard |
| Heilongjiang Biological Technology | Particulate matters | Emission filter | 1 | Plant area | 13.55mg/m? | 30mg/m? | 5.26t | 37.2182t/a | Not exceeding the standard |
| Heilongjiang Biological | Particulate | Emission | 4 | Plant area | 31.6mg/m? | 200mg/m? | 5.26t | 37.2182t/a | Not exceeding the |
| Name of company or subsidiary | Name of main pollutants and pollutant characteristics | Emission methods | Number of emission outlets | Distribution of emission outlets | Emission concentration | Implemented pollutant emission standards | Total emission | Total approved emission | Excess emissions |
| Technology | matters | filter | standard | ||||||
| Heilongjiang Biological Technology | Particulate matters | Emission filter | 1 | Plant area | 32.4mg/m? | 120mg/m? | 5.26t | 37.2182t/a | Not exceeding the standard |
| Heilongjiang Biological Technology | SO2 | Emission filter | 1 | Plant area | 22.1mg/m? | 200mg/m? | 20.70t | 208.478t/a | Not exceeding the standard |
| Heilongjiang Biological Technology | SO2 | Emission filter | 1 | Plant area | 37.2mg/m? | 200mg/m? | 20.71t | 208.479t/a | Not exceeding the standard |
| Heilongjiang Biological Technology | SO2 | Emission filter | 4 | Plant area | 168.6mg/m? | 850mg/m? | 20.72t | 208.480t/a | Not exceeding the standard |
| Heilongjiang Biological Technology | SO2 | Emission filter | 1 | Plant area | 75.4mg/m? | 550mg/m? | 20.73t | 208.481t/a | Not exceeding the standard |
| Heilongjiang Biological Technology | NOX | Emission filter | 1 | Plant area | 55.3mg/m? | 250mg/m? | 14.67t | 160.074t/a | Not exceeding the standard |
| Heilongjiang Biological Technology | NOX | Emission filter | 1 | Plant area | 106.3mg/m? | 200mg/m? | 14.68t | 160.075t/a | Not exceeding the standard |
| Heilongjiang Biological Technology | NOX | Emission filter | 4 | Plant area | 51.1mg/m? | 240mg/m? | 14.69t | 160.076t/a | Not exceeding the standard |
| Heilongjiang Biological Technology | NOX | Emission filter | 1 | Plant area | 61.8mg/m? | 240mg/m? | 14.70t | 160.077t/a | Not exceeding the standard |
| Heilongjiang Biological Technology | VOC | Emission filter | 1 | Plant area | 35.4mg/m? | 150mg/m? | 8.62t | 32.4t/a | Not exceeding the standard |
| Heilongjiang Biological | COD | Collection pipe | 1 | Plant area | 152.9mg/m? | 350mg/L | 262.15t | / | Not exceeding the |
| Name of company or subsidiary | Name of main pollutants and pollutant characteristics | Emission methods | Number of emission outlets | Distribution of emission outlets | Emission concentration | Implemented pollutant emission standards | Total emission | Total approved emission | Excess emissions |
| Technology | standard | ||||||||
| Heilongjiang Biological Technology | Ammonia nitrogen | Collection pipe | 1 | Plant area | 4mg/m? | 35mg/m? | 3.611t | / | Not exceeding the standard |
| Heilongjiang Biological Technology | Total nitrogen | Collection pipe | 1 | Plant area | 9.6mg/m? | 50mg/L | 24.42t | / | Not exceeding the standard |
Construction and operation of pollution prevention and control facilitiesThe Company has established the environmental protection concept of green development: 1. Introducing the concept of greenchemistry, developing and producing products that are more environment-friendly. 2. Transferring from support-orientation toresponsibility-orientation, to conduct source reduction, process control and end treatment properly. 3. Pursuing reduction, recyclingand harmlessness to create ecological factories, and realize the harmonious development of man and nature.Wastewater treatment: The Company has a complete sewage treatment system, with a wastewater collection system forproduction sewage, domestic sewage, initial rainwater and accident water to separate the clean water from the waste water, and therainwater from the waste water. The waste pool is sealed with a cover, and all the waste gases are effectively collected and eventuallyincinerated, effectively reducing the emission of waste gases.Waste gas treatment: The Company adopts the self-developed nitrogen sealing system to effectively reduce the waste gasemission; it uses different pretreatment technologies according to the composition and nature of different waste gases, and itintroduces advanced foreign waste gas treatment devices to strengthen the waste gas treatment capacity. The Company regularlyconducts annual waste gas leak detection and repair (LDAR) to effectively supervise and reduce unorganized waste gases. TheCompany actively upgrades coal-fired thermal oil furnaces via the “coal to gas” conversion, introduces natural gas boilers, carries outlow-NOx transformation, and adds SNCR stripping facilities to the terminal to actively carry out NOx treatment. The Companyoperates and maintains the facilities of odor evaluation system, focuses all monitoring points and monitoring data daily, conductstimely trend analysis, tracking feedback on the reasons for exceeding the standard data, and basically realizes the early warning,traceability and evaluability of the Company’s odor.
Solid waste disposal: The Company has a standardized temporary storage warehouse for hazardous wastes and hazardous wasteincineration devices, and it can basically dispose of hazardous waste by itself. The solid wastes entrusted for external treatment aretransferred in strict accordance with the requirements of the “Bill in Five Parts of Management Measures for the Transfer ofHazardous Wastes” and entrusted to qualified units for treatment.Noise prevention and control: The Company chooses low-noise equipment, and adopts the noise reduction measures offoundation damping for the equipment that does not need to be fixed. In addition to taking foundation damping for air compressors,blowers and various pumps, the Company also installs additional soundproof covers around the noise sources for sound insulation.
Emergency management: The Company installs online waste gas monitors around the plant boundary to monitor theenvironment of the plant boundary in real time. It introduces VOC online monitors to monitor the emission tail gas data in real timeand uploads the detection data to the monitoring platform. It adopts waste water one enterprise one pipe online monitoring to monitorthe waste water emission index in real time and upload it to the Environmental Protection Bureau normally. It introduces domesticfirst-class elevated flare technology to specifically deal with abnormal waste gas in the production process. It introduces domesticfirst-class leak stoppage technology under pressure to reduce the abnormal leakage of pipelines, valves, flanges and tanks to theminimum, thus reducing the environmental impact caused by a large number of leaks.
Environmental impact assessment of construction projects and other administrative permits for environmentalprotection
The construction project of the tank area of Zhejiang NHU Construction Material Co., Ltd. has obtained the environmentalassessment filing form from Shangyu Branch of Shaoxing Ecological Environment Bureau (Yuhuan Jianbei [2021] No. 37).
Heilongjiang NHU Biotechnology Co., Ltd. has completed the environmental protection inspection and acceptance of thecompletion of Heilongjiang Suihua NHU Biofermentation Industrial Park Project (Phase I). It has obtained the approval of theenvironmental impact report of Heilongjiang Suihua NHU Biofermentation Industrial Park Project (Phase II) (Suihuan Letter {2020}No. 231}).
Emergency plan for unexpected environmental incidents
Shandong NHU Pharmaceutical Co., Ltd. has formulated the Emergency Plan for Environmental Emergencies of ShandongNHU Pharmaceutical Co., Ltd. according to the Measures for the Administration of Filing Emergency Plans for EnvironmentalEmergencies in Enterprises and Institutions (Trial) promulgated by the State, and filed it with Binhai Branch of Weifang EcologicalEnvironment Bureau for record in May 2021.
Heilongjiang NHU Biotechnology Co., Ltd. has formulated the Emergency Plan for Environmental Emergencies ofHeilongjiang NHU Biotechnology Co., Ltd., which was filed with Suihua Ecological Environment Bureau for record in April 2021.
Emergency plans by other subsidiaries are within the validity period.
Environmental self-monitoring program
The Company has strong pollutant discharge monitoring and management abilities, and it can timely inform the environmentalprotection administrative departments and the public of the monitoring information. The Company has developed a relevantself-testing program, which covers the indicators of organized waste gas, unorganized waste gas and groundwater. Meanwhile, theCompany has entrusted a third-party testing company to perform regular monitoring.
The Company discloses environmental information in strict accordance with requirements at national, provincial, municipal andcounty levels on enterprise environmental information disclosure. It has disclosed its environmental protection information on theplatforms of environmental information management system of key provincial and municipal sewage units.
Administrative penalties for environmental offences during the reporting Period
| Name of company or subsidiary | Cause for penalty | Offence situation | Penalty result | Impact on the production management and performance of the listed company | The Company’s corrective measures |
| N/A | N/A | N/A | N/A | N/A | N/A |
Other environmental information that should be disclosedN/AOther information related to environmental protectionN/AII. Social ResponsibilitiesN/A
Section VI Significant Events
I. Commitments made by the Company’s controlling shareholders, shareholders, relatedparties, purchasers and purchasing companies have been fulfilled during the reporting periodand those that have not been fulfilled by the end of the reporting period
√ Applicable □ Not applicable
| Commitments | Party making commitments | Commitment Type | Content | Time | Term | Performance |
| Equity division reform commitments | N/A | N/A | N/A | N/A | N/A | |
| Commitments made in the acquisition report or report on equity changes | N/A | N/A | N/A | N/A | N/A | |
| Commitments made during asset restructuring | N/A | N/A | N/A | N/A | N/A | |
| Commitments made during initial public offerings or refinancing | NHU Holding Group Co., Ltd., Zhang Pingyi, Shi Cheng, Yuan Yizhong, Hu Baishan, Shi Guanqun, Wang Xuewen, Cui Xinrong and Wang Xulin | Commitments on horizontal competition, connected transactions and occupation of funds | They signed the “Commitment on Not Engaging in Horizontal Competition”, and undertook not to engage in business activities that constitute competition with the Company’s business after listing. | June 25, 2004 | Long-term | Strictly fulfilled the commitments |
| Hu Baifan; Hu Baishan; Shi Guanqun; Wang Xuewen; Cui Xinrong; Wang Zhengjiang; Zhou Guiyang | The directors and senior executives of the Company undertake to perform their duties faithfully and diligently to safeguard the legitimate rights and interests of the Company and all shareholders, and make the following commitments in accordance with the relevant provisions of the CSRC that the Company’s measures to fill immediate returns can be | January 12, 2017 | Long-term | Strictly fulfilled the commitments |
| effectively performed: 1. not to transfer benefits to other units or individuals without compensation or on unfair terms, or use other means to harm the interests of the Company; 2. to restrain the directors and senior managers’ position-related consumption; 3. not to use the Company’s assets to engage in investment or consumption activities unrelated to the performance of their duties; 4. to link the remuneration system formulated by the board of directors or the remuneration committee to the implementation of the Company’s measures for filling immediate returns; 5. to link the exercise conditions of the Company’s equity incentives to be announced in the future to the implementation of the Company’s measures for filling immediate returns. | ||||||
| Hu Baifan; NHU Holding Group Co., Ltd. | Not to act beyond the authority to interfere with the Company’s operation and management activities, not to encroach upon the Company’s interests, and to effectively fulfill the relevant measures to fill in the Company’s returns. | January 12, 2017 | Long-term | Strictly fulfilled the commitments | ||
| Equity incentive commitment | N/A | N/A | N/A | N/A | N/A | |
| Other commitments to minority shareholders of the Company | N/A | N/A | N/A | N/A | N/A | |
| Whether the commitment has been fulfilled on time | Yes | |||||
| Where the commitment is overdue, the specific reasons for not completing the performance and the following work plan shall be explained in detail | Not applicable. | |||||
II. Non-operational capital occupation over listed companies by controlling shareholders andtheir related parties
□ Applicable √ Not applicable
During the reporting period, there is no non-operational capital occupation over listed companies by controlling shareholders andtheir related parties.III. Illegal external guarantees
□ Applicable √ Not applicable
No illegal external guarantees during the reporting period.IV. Appointment and dismissal of accounting firms
Whether the semi-annual report has been audited
□ Yes √ No
The Company’s semi-annual report has not been audited.V. Explanations made by the Board of Directors and the Board of Supervisors on the“Non-Standard Audit Report” from the accounting firm during the reporting period
□ Applicable √ Not applicable
VI. Statement by the Board of Directors on the “Non-Standard Audit Report” of the previousyear
□ Applicable √ Not applicable
VII. Bankruptcy and Restructuring
□ Applicable √ Not applicable
No such case as bankruptcy and reorganization related event during the reporting period.VIII. Litigation Matters
Significant lawsuits and arbitrations
□ Applicable √ Not applicable
There is no major lawsuit or arbitration during this reporting period.Other litigation matters
√ Applicable □ Not applicable
| Basic information on litigation | Amount involved | Whether an estimated liability is | Litigation (arbitration) | Outcome and impact of litigation (arbitration) hearings | Enforcement of litigation (arbitration) | Date of Disclosure | Disclosure Index |
| (arbitration) | formed | progress | judgments | ||||
| The dispute of Fujian Fukang Pharmaceutical Co., Ltd., Fujian Haixin Pharmaceutical Co., Ltd. and Yu Ke infringing on the trade secret of Zhejiang NHU Co., Ltd. | 50 million | No | Retrial of final appeal | Fujian Haixin Pharmaceutical Co., Ltd. was ordered to compensate ZHEJIANG NHU COMPANY, LTD. for economic losses of RMB 25 million, and Fujian Fukang Pharmaceutical Co., Ltd. and Yu Ke bore joint and several liability. | Execution completed | Not applicable. |
IX. Penalties and Rectification
√ Applicable □ Not applicable
| Name | Type | Causes | Types of investigation and penalties | Conclusions (if any) | Date of Disclosure | Disclosure Index |
| Zhu Jianmin | Independent Director | An employee surnamed Li of Merit Interactive Co.,Ltd. falsified several sales contracts and related settlement documents between the company and its customers by forging seals, etc. Merit Interactive Co.,Ltd. failed to timely discover the falsity of the above contracts and businesses, recognized the related sales revenues and prepare financial statements accordingly, resulting in false recording of its 2019 Third Quarter report, 2019 Annual Report, 2020 First Quarter Report, 2020 Semi-Annual report, and 2020 Third Quarter Report. Merit Interactive Co.,Ltd. was suspected of violating laws and regulations in information disclosure and was investigated by CSRC. Zhu Jianmin, an independent director of the | Filed for investigation or administrative penalties by CSRC | 1. Xihu District People’s Court of Hangzhou Municipality issued “(2021) Zhe 0106 Xing Chu Zi No. 200 Criminal Judgment”, which held that Li, a former employee of Merit Interactive Co.,Ltd., committed the crime of embezzlement and was sentenced to fixed-term imprisonment of 11 months and a fine of RMB 100,000; Li, the defendant, was ordered to withdraw the stolen money of RMB 257,027 and return it to Merit Interactive Co.,Ltd. 2. On July 26, 2021, Merit Interactive Co.,Ltd. received the “Prior Notice of Administrative Penalty” issued by Zhejiang Securities Regulatory Bureau, which concluded that Merit Interactive Co.,Ltd. constituted an information disclosure violation and that Zhu Jianmin, the then deputy general manager and chief financial officer, who was in charge of financial work, failed to ensure the truthfulness, accuracy and completeness of the company’s information |
| Name | Type | Causes | Types of investigation and penalties | Conclusions (if any) | Date of Disclosure | Disclosure Index |
| Company, was the then deputy general manager and chief financial officer of Merit Interactive Co.,Ltd. | disclosure and was the person in charge directly responsible for the information disclosure violation. Zhu Jianmin was given a warning and fined RMB 800,000. |
Rectification explanation
√ Applicable □ Not applicable
On February 3, 2021, Zhejiang Securities Regulatory Bureau issued the “Decision on the Issuance of Warning Letters to MeritInteractive Co.,Ltd. and Related Persons”, which concluded that the financial data of operating income, total profit and net profitattributable to shareholders of the listed company disclosed in the 2019 Annual Report and 2020 First Quarter Report, Semi-AnnualReport and Third Quarter Report of Merit Interactive Co.,Ltd. were not accurate, and at the same time there were internal controlirregularities. Zhejiang Securities Regulatory Bureau decided to take the supervisory and management measures of issuing warningletters to Fang Yi, Chairman and General Manager, Zhu Jianmin, Chief Financial Officer, and Li Haochuan, Board Secretary,respectively, and recorded such letters in the securities and futures market integrity file. The above-mentioned persons were requiredto perform their diligence obligations, organize the company to improve internal control, establish a sound financial and accountingmanagement system and information disclosure system and strictly implement them, effectively safeguard the interests of allshareholders and submit a written report to Zhejiang Securities Regulatory Bureau before February 18, 2021.X. Integrity of the Company, Its Controlling Shareholder and Actual Controller
□ Applicable √ Not applicable
XI. Significant Related-party Transactions
1. Related transactions relevant to daily operations
□ Applicable √ Not applicable
No such case as related-party transactions connected with daily operations.
2. Related transactions in acquisition or sale of assets or equities
□ Applicable √ Not applicable
No such case as related-party transactions arising from the acquisition or sale of assets or equity.
3. Significant related-party transactions arising from joint investments on external parties
□ Applicable √ Not applicable
No such case as connected transactions of joint foreign investment during the reporting period.
4. Related-party creditor’s rights and debts
□ Applicable √ Not applicable
No such case as related credits and debts during the reporting period.
5. Transactions with related financial companies and financial companies controlled by the Company
□ Applicable √ Not applicable
No deposit, loan, credit or other financial business between the Company and the related financial company, or between the financialcompany controlled by the Company and the related parties.
6. Other major related transactions
□ Applicable √ Not applicable
No other major related transactions during the reporting period.XII. Significant Contracts and Performance
1. Matters on trusteeship, contracting, and leasehold
(1) Matters on trusteeship
□ Applicable √ Not applicable
No such case as custody during the reporting period.
(2) Contracting
□ Applicable √ Not applicable
No such case as contracting during the reporting period.
(3) Leasing
□ Applicable √ Not applicable
No lease during the reporting period.
2. Significant guarantees
√ Applicable □ Not applicable
Unit: ten thousand RMB
| External guarantees from the Company and its subsidiaries (excluding guarantees to the subsidiaries) | ||||||||||
| Guaranteed party | Announcement date of disclosure of the guarantee | Guarantee amount | Actual occurrence date | Actual guarantee amount | Type of guarantee | Guaranty (if any) | Counter guarantee (if any) | Term of guarantee | Due or not | Guarantee for related parties or not |
| cap | ||||||||||
| Total amount of guarantees approved during the reporting period (A1) | 0 | Total amount of guarantees actually occurred during the reporting period (A2) | 0 | |||||||
| Total amount of guarantees approved at the end of the reporting period (A3) | 0 | Total balance of guarantees at the end of the reporting period (A4) | 0 | |||||||
| The Company’s guarantees to subsidiaries | ||||||||||
| Guaranteed party | Announcement date of disclosure of the guarantee cap | Guarantee amount | Actual occurrence date | Actual guarantee amount | Type of guarantee | Guaranty (if any) | Counter guarantee (if any) | Term of guarantee | Due or not | Guarantee for related parties or not |
| NHU (Hong Kong) | December 28, 2018 | 123,000 | May 14, 2019 | 9,690.15 | Joint and several liability guarantee | May 14, 2019 - May 13, 2021 | Yes | No | ||
| Heilongjiang Biological Technology | December 28, 2018 | 200,000 | June 24, 2019 | 200,000.00 | Joint and several liability guarantee | June 24, 2019 - December 31, 2023 | No | No | ||
| Shandong Vitamins | December 28, 2018 | 90,000 | November 29, 2019 | 50,000.00 | Joint and several liability guarantee | November 29, 2019 - December 21, 2023 | No | No | ||
| Shangyu Bio-Chem | December 28, 2018 | 17,000 | February 28, 2020 | 17,000.00 | Joint and several liability guarantee | February 28, 2020 - February 27, 2021 | Yes | No | ||
| NHU Import & Export | May 21, 2020 | 15,000 | June 30, 2020 | 10,000.00 | Joint and several liability guarantee | June 30, 2020 - September 13, 2021 | No | No | ||
| Shandong Pharmaceutical | May 21, 2020 | 20,000 | June 22, 2020 | 10,000.00 | Joint and several liability guarantee | June 22, 2020 - June 21, 2021 | Yes | No | ||
| NHU (Hong | May 21, 2020 | 120,000 | July 15, | 7,686.23 | Joint and several | July 15, 2020 - June 18, | Yes | No | ||
| Kong) | 2020 | liability guarantee | 2021 | |||||||
| NHU (Hong Kong) | May 21, 2020 | 120,000 | July 30, 2020 | 7,686.23 | Joint and several liability guarantee | July 30, 2020 - July 14, 2021 | No | No | ||
| NHU (Hong Kong) | May 21, 2020 | 120,000 | September 7, 2020 | 51,680.80 | Joint and several liability guarantee | September 7, 2020 - September 7, 2023 | No | No | ||
| NHU (Hong Kong) | May 21, 2020 | 120,000 | September 22, 2020 | 55.49 | Joint and several liability guarantee | September 22, 2020 - January 10, 2021 | Yes | No | ||
| NHU (Hong Kong) | May 21, 2020 | 120,000 | September 24, 2020 | 5,168.08 | Joint and several liability guarantee | September 24, 2020 - May 21, 2021 | Yes | No | ||
| NHU (Hong Kong) | May 21, 2020 | 120,000 | December 31, 2020 | 94.06 | Joint and several liability guarantee | December 31, 2020 - May 20, 2021 | Yes | No | ||
| Shandong Jinghua | May 21, 2020 | 50,000 | March 24, 2021 | 50,000.00 | Joint and several liability guarantee | March 24, 2021 - December 25, 2025 | No | No | ||
| NHU (Hong Kong) | May 21, 2020 | 120,000 | April 06, 2021 | 83.14 | Joint and several liability guarantee | April 06, 2021 - July 30, 2021 | No | No | ||
| NHU (Hong Kong) | April 21, 2021 | 120,000 | June 18, 2021 | 7,686.23 | Joint and several liability guarantee | June 18, 2021 - June 17, 2022 | No | No | ||
| NHU (Hong Kong) | April 21, 2021 | 120,000 | June 21, 2021 | 65.60 | Joint and several liability guarantee | June 21, 2021 - October 30, 2021 | No | No | ||
| Total amount of guarantees to subsidiaries approved during the reporting period (B1) | 455,000.00 | Total amount of guarantees to subsidiaries actually occurred during the reporting period (B2) | 57,834.97 | |||||||
| Total amount of guarantees to subsidiaries approved at the end of the reporting period (B3) | 824,450.17 | Total balance of guarantees actually paid to subsidiaries at the end of the reporting period (B4) | 377,202.00 | |||||||
| Subsidiaries' guarantees to subsidiaries | ||||||||||
| Guaranteed party | Announcement date of disclosure of the guarantee cap | Guarantee amount | Actual occurrence date | Actual guarantee amount | Type of guarantee | Guaranty (if any) | Counter guarantee (if any) | Term of guarantee | Due or not | Guarantee for related parties or not |
| Total amount of guarantees to subsidiaries approved during the reporting period (C1) | 0 | Total amount of guarantees to subsidiaries actually occurred during the reporting period (C2) | 0 | |||||||
| Total amount of guarantees to subsidiaries approved at the end of the reporting period (C3) | 0 | Total of actual guarantee balance for subsidiaries at the end of the reporting period (C4) | 0 | |||||||
| Total amount of company guarantees (namely sum of the previous three major items) | ||||||||||
| Total amount of guarantees approved during the reporting period (A1+B1+C1) | 455,000.00 | Total amount of guarantees actually occurred during the reporting period (A2+B2+C2) | 57,834.97 | |||||||
| Total amount of guarantees approved by the end of the reporting period (A3+B3+C3) | 824,450.17 | Total balance of guarantees actually paid at the end of the reporting period (A4+B4+C4) | 377,202.00 | |||||||
| Total amount of actual guarantees (A4+B4+C4) as a percentage of the Company's net assets | 18.64% | |||||||||
| Including: | ||||||||||
| Balance of guarantees to the shareholders, actual controllers and their related parties (D) | 0.00 | |||||||||
| Balance of debt guarantees directly or indirectly offered to guaranteed objects with asset-liability ratio exceeding 70% (E) | 260,000.00 | |||||||||
| Amount of the guarantees with the total volume exceeding 50% of the net assets (F) | 0.00 | |||||||||
| Total amount of the above three guarantees (D+E+F) | 260,000.00 | |||||||||
| Notes on unexpired guarantees with guarantee responsibilities occurred or evidence of possible joint liabilities within the reporting period (if any) | N/A | |||||||||
| Notes on providing external guarantees in violation of specified procedures (if any) | N/A | |||||||||
3. Entrusted financing
√ Applicable □ Not applicable
Unit: ten thousand RMB
| Specific type | Funding source | Entrusted amount | Unexpired balance | Overdue outstanding amount | Impairment amount accrued for overdue financial management |
| Bank financial products | Raised funds | 362,000 | 357,000 | 0 | 0 |
| Total | 362,000 | 357,000 | 0 | 0 | |
Specific matters on high-risk entrusted capital management with a large amount for a single item, or with low security, poor liquidityand no capital preservation guarantee.
□ Applicable √ Not applicable
Cases of entrusted financing expected to be unable to recover the principal or cases that may result in impairment
□ Applicable √ Not applicable
4. Major contracts in daily operations
□ Applicable √ Not applicable
5. Other significant contracts
□ Applicable √ Not applicable
No such case as other significant contract during the reporting period.XIII. Explanations on Other Significant Matters
□ Applicable √ Not applicable
No other significant matters needed to be explained during the reporting period.
XIV. Significant Events of the Company’s Subsidiaries
□ Applicable √ Not applicable
Section VII Changes in Shares and Information about ShareholdersI. Changes in Shares
1. Changes in shares
Unit: share
| Item | Before the change | Increase or decrease in the change (+, -) | After the change | ||||||
| Number | Percentage | Shares newly issued | Bonus shares | Shares converted from capital reserves | Others | Subtotal | Number | Percentage | |
| I. Shares with limited sales condition | 27,821,505 | 1.29% | 5,051,846 | -2,562,267 | 2,489,579 | 30,311,084 | 1.18% | ||
| 1. Other domestic shares | 27,821,505 | 1.29% | 5,051,846 | -2,562,267 | 2,489,579 | 30,311,084 | 1.18% | ||
| Shares held by domestic natural persons | 27,821,505 | 1.29% | 5,051,846 | -2,562,267 | 2,489,579 | 30,311,084 | 1.18% | ||
| II. Shares without restrictions | 2,120,840,795 | 98.71% | 424,680,614 | 2,562,267 | 427,242,881 | 2,548,083,676 | 98.82% | ||
| 1. RMB common stock | 2,120,840,795 | 98.71% | 424,680,614 | 2,562,267 | 427,242,881 | 2,548,083,676 | 98.82% | ||
| III. Total | 2,148,662,300 | 100.00% | 429,732,460 | 0 | 429,732,460 | 2,578,394,760 | 100.00% | ||
Reasons for changes in shares
√ Applicable □ Not applicable
1. On March 15, 2021, Cui Xinrong, a director of the seventh-session, Ye Yueheng, Qiu Jinzhuo and Liang Xiaodong, supervisors ofthe Company, had been out of office for six months. The shares held by them were released from restricted sale, and the total numberof shares subject to unlimited sale conditions increased by 2,562,267 shares.
2. On May 19, 2021, the Company implemented the annual equity distribution plan for 2020, based on the total share capital of2,148,662,300 shares at that time, 2 shares were transferred to all shareholders by capital reserve for every 10 shares, totaling429,732,460 shares, and the total share capital of the Company was 2,578,394,760 shares after the transfer.
Approval for changes in shares
√ Applicable □ Not applicable
The 2020 Annual General Meeting of Shareholders reviewed and approved the “2020 Profit Distribution Proposal”, agreeing todistribute a cash dividend of RMB 7 (including tax) for every 10 shares to all shareholders based on the total share capital of2,148,662,300 shares at that time, and to transfer 2 shares for every 10 shares to all shareholders by capital reserve for a total transferof 429,732,460 shares, after which the total share capital of the Company was 2,578, 394,760 shares.Transfer for changes in shares
√ Applicable □ Not applicable
This transfer of capital reserve to share capital was completed on May 19, 2021.The progress on share repurchase
□ Applicable √ Not applicable
The progress on reduction of re-purchase shares by means of centralized competitive bidding
□ Applicable √ Not applicable
Effects of changes in shares on the basic earnings per share (“EPS”), diluted EPS, net assets per share, attributable to commonshareholders of the Company, and other financial indexes over the last year and last period
□ Applicable √ Not applicable
Other contents that the Company considers necessary or are required by the securities regulatory authorities to disclose
□ Applicable √ Not applicable
2. Changes in restricted stocks
√ Applicable □ Not applicable
Unit: share
| Name of Shareholder | Number of Shares with Limited Sales Condition at the Beginning Of the Period | Number of unlocked shares with limited sales condition in current period | Number of increased shares with limited sales condition in current period | Number of shares with limited sales condition at the end of the period | Reasons for limited sales | Date of unlocking |
| Hu Baifan | 7,250,936 | 0 | 1,450,187 | 8,701,123 | Locked-up outstanding shares held by senior executives | Annual lock-up of 75% of total shareholding |
| Hu Baishan | 7,602,046 | 0 | 1,520,409 | 9,122,455 | Locked-up outstanding shares held by senior executives | Annual lock-up of 75% of total shareholding |
| Shi | 5,457,208 | 0 | 1,091,441 | 6,548,649 | Locked-up outstanding | Annual lock-up of 75% of |
| Guanqun | shares held by senior executives | total shareholding | ||||
| Wang Xuewen | 4,623,922 | 0 | 924,785 | 5,548,707 | Locked-up outstanding shares held by senior executives | Annual lock-up of 75% of total shareholding |
| Wang Zhengjiang | 239,062 | 0 | 47,812 | 286,874 | Locked-up outstanding shares held by senior executives | Annual lock-up of 75% of total shareholding |
| Zhou Guiyang | 86,064 | 0 | 17,212 | 103,276 | Locked-up outstanding shares held by senior executives | Annual lock-up of 75% of total shareholding |
| Cui Xinrong | 2,083,962 | 2,083,962 | 0 | 0 | 100% lock-up of shares for 6 months after the senior executive’s resignation | March 15, 2021 |
| Ye Yueheng | 191,250 | 191,250 | 0 | 0 | 100% lock-up of shares for 6 months after the senior executive’s resignation | March 15, 2021 |
| Qiu Jinzhuo | 95,805 | 95,805 | 0 | 0 | 100% lock-up of shares for 6 months after the senior executive’s resignation | March 15, 2021 |
| Liang Xiaodong | 191,250 | 191,250 | 0 | 0 | 100% lock-up of shares for 6 months after the senior executive’s resignation | March 15, 2021 |
| Total | 27,821,505 | 2,562,267 | 5,051,846 | 30,311,084 | -- | -- |
II. Issuance and Listing of Securities
□ Applicable √ Not applicable
III. Total Number of Shareholders and Their Shareholdings
Unit: share
| Total Number of Common Shareholders at the End of the | 91,386 | Total Number of Preferred Shareholders (If Any) (Refer to Note 8) Whose Voting Rights Have Been Recovered at the End of the Reporting Period | 0 |
| Reporting Period | ||||||||
| Shareholding list of common shareholders with over 5% shares or top ten shareholders | ||||||||
| Name of Shareholder | Nature of Shareholder | Shareholding Percentage | Number of common shares held at the end of the reporting period | Changes in the reporting period | Number of common shares held with limited sales conditions | Number of common shares held without limited sales condition | Pledges, markings or freezings | |
| State of Shares | Number | |||||||
| NHU Holding Group Co., Ltd. | Domestic Non-state-owned Legal Person | 48.55% | 1,251,903,644 | 208,650,607 | 1,251,903,644 | |||
| Hong Kong Securities Clearing Co. Ltd. | Overseas Legal Person | 2.66% | 68,647,712 | 11,095,897 | 68,647,712 | |||
| Shanghai Chongyang Strategic Investment Co., Ltd. - Chongyang Strategic Huizhi Fund | Others | 1.75% | 45,060,167 | 10,480,229 | 45,060,167 | |||
| National Social Security Fund 503 | Others | 0.99% | 25,499,920 | 8,499,906 | 25,499,920 | |||
| National Social Security Fund 112 | Others | 0.94% | 24,336,092 | 14,146,993 | 24,336,092 | |||
| Norges Bank - Equity Fund | Overseas Legal Person | 0.57% | 14,586,923 | 14,586,923 | 14,586,923 | |||
| Aegon-Industrial Fund - Industrial Bank Co., Ltd. - Xingquan - Organic Growth No. 1 Specific Multi-Client Asset Management Plan | Others | 0.55% | 14,121,268 | -1,559,081 | 14,121,268 | |||
| Kuwait Investment | Overseas | 0.52% | 13,525,529 | 13,525,529 | 13,525,529 | |||
| Authority | Legal Person | ||||||||
| Hu Baishan | Domestic Natural Person | 0.47% | 12,163,274 | 2,027,212 | 9,122,455 | 3,040,819 | |||
| Beijing Yuanfeng Private Equity Fund Management Partnership (Limited Partnership) - Yuanfeng Value Private Equity Investment Fund | Others | 0.46% | 11,977,187 | -7,012,634 | 11,977,187 | ||||
| Strategic investors or general legal entities becoming shareholders of the top 10 common shares as a result of the placement of new shares (if any) (see Note 3) | Shanghai Chongyang Strategic Investment Co., Ltd. - Chongyang Strategic Huizhi Fund became the top 10 shareholders of the Company due to its participation in the 2017 non-public offering of shares. | ||||||||
| Description of the association relationship or concerted action of above-mentioned shareholders | Among the above shareholders, Hu Baishan is a director of NHU Holding Group Co., Ltd. The Company is unaware whether there is any related relationships among other shareholders and whether they are persons acting in concert as stipulated in the “Regulations on the Takeover of Listed Companies”. | ||||||||
| Explanation of the above shareholders involved in proxy/trustee voting rights and abstention from voting rights | N/A | ||||||||
| Special note on the existence of repurchase special accounts among the top 10 shareholders (if any) (see Note 11) | Not applicable. | ||||||||
| Shareholding list of top ten common shareholders without limited sales condition | |||||||||
| Name of Shareholder | Number of common shares held without limited sales condition at the end of the reporting period | Type of Shares | |||||||
| Type of shares | Number | ||||||||
| NHU Holding Group Co., Ltd. | 1,251,903,644 | RMB common stock | 1,251,903,644 | ||||||
| Hong Kong Securities Clearing Co. Ltd. | 68,647,712 | RMB common stock | 68,647,712 | ||||||
| Shanghai Chongyang Strategic Investment Co., Ltd. - Chongyang | 45,060,167 | RMB common | 45,060,167 | ||||||
| Strategic Huizhi Fund | stock | ||
| National Social Security Fund 503 | 25,499,920 | RMB common stock | 25,499,920 |
| National Social Security Fund 112 | 24,336,092 | RMB common stock | 24,336,092 |
| Norges Bank - Equity Fund | 14,586,923 | RMB common stock | 14,586,923 |
| Aegon-Industrial Fund - Industrial Bank Co., Ltd. - Xingquan - Organic Growth No. 1 Specific Multi-Client Asset Management Plan | 14,121,268 | RMB common stock | 14,121,268 |
| Kuwait Investment Authority | 13,525,529 | RMB common stock | 13,525,529 |
| Beijing Yuanfeng Private Equity Fund Management Partnership (Limited Partnership) - Yuanfeng Value Private Equity Investment Fund | 11,977,187 | RMB common stock | 11,977,187 |
| Chongyang Group Co., Ltd. | 11,635,159 | RMB common stock | 11,635,159 |
| Explanation on associated relationship or persons acting in concert among top ten common shareholders without limited shares, and between top ten common shareholders without limited shares and top ten common shareholders | Among the above shareholders, Hu Baishan is a director of NHU Holding Group Co., Ltd. The Company is unaware whether there is any related relationships among other shareholders and whether they are persons acting in concert as stipulated in the “Regulations on the Takeover of Listed Companies”. | ||
| Explanation on Top Ten Common Shareholders’ Participation in Securities Margin Trading (If Any) (see Note 4) | Shanghai Chongyang Strategic Investment Co., Ltd. - Chongyang Strategic Huizhi Fund holds 41,939,806 shares through the customer credit transaction guarantee securities account of Guotai Junan Securities Co., Ltd.; Beijing Yuanfeng Private Equity Fund Management Partnership (Limited Partnership) - Yuanfeng Value Private Equity Investment Fund holds 5,988,587 shares through Huatai Securities Co., Ltd.’ s customer credit transaction guarantee securities account. | ||
Whether the Company’s top ten common shareholders or top ten common shareholders without limited shares agree on anyrepurchase transaction in the reporting period
□ Yes √ No
None of the Company’s top ten common shareholders or top ten common shareholders without limited shares agreed on repurchasein the reporting period.
IV. Shareholding Changes of Directors, Supervisors and Senior Executives
√ Applicable □ Not applicable
| Name | Post | Position Status | Number of Shares Held at the Beginning of the Period (share) | Number of Shares Increased in the Period (share) | Number of Shares Decreased in the Period (share) | Number of Shares Held at the End of the Period (share) | Number of Restricted Stocks Granted at the Beginning of the Period (share) | Number of Restricted Stocks Granted During the Reporting Period (share) | Number of Restricted Stocks Granted at the End of the Period (share) |
| Hu Baifan | Chairman | Incumbent | 9,667,915 | 1,933,583 | 11,601,498 | 7,250,936 | 1,450,187 | 8,701,123 | |
| Hu Baishan | Vice Chairman, President | Incumbent | 10,136,062 | 2,027,212 | 12,163,274 | 7,602,046 | 1,520,409 | 9,122,455 | |
| Shi Guanqun | Director, Vice President, Chief Financial Officer, Board Secretary | Incumbent | 7,276,277 | 1,455,255 | 8,731,532 | 5,457,208 | 1,091,441 | 6,548,649 | |
| Wang Xuewen | Director, Vice President | Incumbent | 6,165,230 | 1,233,046 | 7,398,276 | 4,623,922 | 924,785 | 5,548,707 | |
| Wang Zhengjiang | Director | Incumbent | 318,750 | 63,750 | 382,500 | 239,062 | 47,812 | 286,874 | |
| Zhou Guiyang | Director | Incumbent | 114,752 | 22,950 | 137,702 | 86,064 | 17,212 | 103,276 | |
| Total | -- | -- | 33,678,986 | 6,735,796 | 0 | 40,414,782 | 25,259,238 | 5,051,846 | 30,311,084 |
V. Change of the Controlling Shareholders and Actual ControllerChange of the controlling shareholders in the reporting period
□ Applicable √ Not applicable
No change has happened to the controlling shareholder in the reporting period of the CompanyChange of the actual controller in the reporting period
□ Applicable √ Not applicable
No change has happened to the actual controller in the reporting period
Section VIII Information of Preferred Shares
□ Applicable √ Not applicable
There are no preferred shares in the reporting period.
Section IX Situation on Corporate Bonds
□ Applicable √ Not applicable
Section X Financial Report
I. Audit ReportsHas the semi-annual report been audited
□ Yes √ No
The Company’s semi-annual report has not been audited.II. Financial StatementsUnits of financial reports in the notes: RMB
1. Consolidated Balance Sheet
Prepared by: Zhejiang NHU Co., Ltd.
Unit: RMB
| Item | June 30, 2021 | December 31, 2020 |
| Current Assets: | ||
| Cash and Bank Balances | 6,412,612,895.26 | 4,927,657,236.24 |
| Deposit Reservation for Balance | ||
| Loans to Banks and Other Financial Institutions | ||
| Trading Financial Assets | 1,326,426,200.12 | 852,227,964.70 |
| Derivative Financial Assets | ||
| Notes Receivable | 460,973,358.32 | 332,064,366.59 |
| Accounts Receivable | 2,502,876,087.12 | 1,930,930,930.01 |
| Receivables Financing | 33,076,624.55 | 295,393,346.17 |
| Prepayments | 162,474,668.98 | 116,063,557.59 |
| Premium Receivable | ||
| Reinsurance Accounts Receivable | ||
| Reinsurance Contract Reserves Receivable | ||
| Other Receivables | 210,828,040.94 | 178,610,951.64 |
| Including: interest receivable | ||
| Dividends Receivable |
| Item | June 30, 2021 | December 31, 2020 |
| Buying Back the Sale of Financial Assets | ||
| Inventories | 3,522,689,642.11 | 3,117,042,558.78 |
| Contract Assets | ||
| Holding for-sale assets | ||
| Non-current Assets Due within 1 Year | ||
| Other Current Assets | 738,127,909.93 | 1,777,569,473.96 |
| Subtotal of Current Assets | 15,370,085,427.33 | 13,527,560,385.68 |
| Non-current Assets: | ||
| Granting of loans and advances | ||
| Investment in Creditor's Rights | ||
| Investment in Other Creditor's Rights | ||
| Long-term Receivables | ||
| Long-term Equity Investment | 358,710,928.96 | 343,378,891.18 |
| Investment in Other Equity Instruments | 22,998,147.55 | 22,998,147.55 |
| Other Non-current Financial Assets | ||
| Investment Property | ||
| Fixed Assets | 13,752,889,539.13 | 13,914,151,215.54 |
| Construction in progress | 2,295,793,123.43 | 1,325,545,420.56 |
| Productive Biological Assets | ||
| Oil and gas assets | ||
| Right-of-use Assets | 5,015,022.59 | |
| Intangible Assets | 1,398,680,973.80 | 1,407,067,129.87 |
| Development Expenditure | ||
| Goodwill | ||
| Long-term Deferred Expenses | 12,891,187.70 | 13,369,412.48 |
| Deferred Income Tax Assets | 69,216,935.10 | 65,143,706.00 |
| Other Non-current Assets | 361,693,524.32 | 277,793,490.68 |
| Subtotal of Non-current Assets | 18,277,889,382.58 | 17,369,447,413.86 |
| Total Assets | 33,647,974,809.91 | 30,897,007,799.54 |
| Item | June 30, 2021 | December 31, 2020 |
| Current Liabilities: | ||
| Short-term Borrowings | 2,398,007,852.59 | 2,363,525,192.53 |
| Loan from the Central Bank | ||
| Loan from Banks and Other Financial Institutions | ||
| Transactional financial liabilities | ||
| Derivative Financial Liabilities | ||
| Notes Payable | 668,896,544.92 | 497,644,517.23 |
| Accounts Payable | 1,445,062,033.91 | 1,463,728,316.04 |
| Received Prepayments | ||
| Contract liabilities | 44,962,287.54 | 56,302,537.11 |
| Financial Assets Sold for Repurchase | ||
| Deposit Taking and Interbank Deposit | ||
| Receiving from Vicariously Traded Securities | ||
| Receiving from Vicariously Sold Securities | ||
| Payroll payable | 231,300,374.83 | 322,646,061.45 |
| Tax Payable | 270,781,522.81 | 268,864,472.38 |
| Other Payables | 52,150,619.55 | 129,839,228.89 |
| Including: interest payable | ||
| Dividends Payable | ||
| Service Charge and Commission Payable | ||
| Reinsurance Accounts Payable | ||
| Holding for-sale liabilities | ||
| Non-current Liabilities Due within 1 Year | 1,431,425,253.34 | 1,275,888,293.32 |
| Other Current Liabilities | 3,406,847.42 | 4,956,463.49 |
| Subtotal of Current Liabilities | 6,545,993,336.91 | 6,383,395,082.44 |
| Non-current Liabilities: | ||
| Insurance Contract Reserves | ||
| Long-term Borrowings | 5,794,842,788.03 | 4,136,875,354.33 |
| Item | June 30, 2021 | December 31, 2020 |
| Bonds Payable | ||
| Including: Preferred Stocks | ||
| Perpetual Bonds | ||
| Lease Liabilities | 5,398,990.60 | |
| Long-term Payables | ||
| Long-term payroll payable | ||
| Expected Liabilities | ||
| Deferred Income | 886,077,681.09 | 873,066,181.34 |
| Deferred Income Tax Liabilities | 124,527,426.39 | 99,839,731.45 |
| Other Non-current Liabilities | ||
| Subtotal of Non-current Liabilities | 6,810,846,886.11 | 5,109,781,267.12 |
| Total Liabilities | 13,356,840,223.02 | 11,493,176,349.56 |
| Shareholders' Equity: | ||
| Share Capital | 2,578,394,760.00 | 2,148,662,300.00 |
| Other Equity Instruments | ||
| Including: Preferred Stocks | ||
| Perpetual Bonds | ||
| Capital Reserves | 4,130,790,096.84 | 4,560,522,556.84 |
| Less: Treasury Share | ||
| Other Comprehensive Incomes | 16,401,379.92 | 27,803,829.31 |
| Special Reserves | 11,642,478.63 | 9,550,346.85 |
| Surplus Reserves | 1,074,331,150.00 | 1,074,331,150.00 |
| General Risk Reserves | ||
| Undistributed Profits | 12,419,820,263.45 | 11,515,384,739.95 |
| Total Shareholders' Equity Attributable to the Parent Company | 20,231,380,128.84 | 19,336,254,922.95 |
| Minority Shareholders' Equity | 59,754,458.05 | 67,576,527.03 |
| Total Shareholders' Equity | 20,291,134,586.89 | 19,403,831,449.98 |
| Total Liabilities and Shareholders' Equity | 33,647,974,809.91 | 30,897,007,799.54 |
Legal representative: Hu Baifan Chief accountant: Shi Guanqun Accounting officer: Wang Xiaobi
2. Balance Sheet of the Parent Company
Unit: RMB
| Item | June 30, 2021 | December 31, 2020 |
| Current Assets: | ||
| Cash and Bank Balances | 4,366,382,608.74 | 2,790,740,377.97 |
| Trading Financial Assets | 1,251,547,205.78 | 851,949,945.63 |
| Derivative Financial Assets | ||
| Notes receivable | 294,973,691.43 | 332,064,366.59 |
| Accounts receivable | 843,906,718.05 | 704,086,691.03 |
| Receivables Financing | ||
| Prepayments | 5,834,105.35 | 1,631,550.49 |
| Other Receivables | 4,165,535,890.92 | 4,247,680,763.92 |
| Including: interest receivable | ||
| Dividends Receivable | 186,000,000.00 | |
| Inventories | 560,496,728.67 | 566,205,506.19 |
| Contract Assets | ||
| Holding for-sale assets | ||
| Non-current Assets Due within 1 Year | ||
| Other Current Assets | 2,465,340.09 | 552,859,738.36 |
| Subtotal of Current Assets | 11,491,142,289.03 | 10,047,218,940.18 |
| Non-current Assets: | ||
| Investment in Creditor's Rights | ||
| Investment in Other Creditor's Rights | ||
| Long-term Receivables | ||
| Long-term Equity Investment | 7,049,501,465.71 | 6,372,637,172.92 |
| Investment in Other Equity Instruments | 22,998,147.55 | 22,998,147.55 |
| Other Non-current Financial Assets | ||
| Investment Property | ||
| Fixed Assets | 710,974,206.57 | 737,784,631.31 |
| Construction in progress | 1,326,286.13 | |
| Productive Biological Assets |
| Item | June 30, 2021 | December 31, 2020 |
| Oil and gas assets | ||
| Right-of-use Assets | 3,218,475.32 | |
| Intangible Assets | 106,175,960.34 | 105,425,506.93 |
| Development Expenditure | ||
| Goodwill | ||
| Long-term Deferred Expenses | 5,093,130.19 | 5,919,401.23 |
| Deferred Income Tax Assets | 40,798,010.31 | 42,345,228.44 |
| Other Non-current Assets | 3,654,720.91 | 7,202,988.32 |
| Subtotal of Non-current Assets | 7,943,740,403.03 | 7,294,313,076.70 |
| Total Assets | 19,434,882,692.06 | 17,341,532,016.88 |
| Current Liabilities: | ||
| Short-term Borrowings | 1,443,710,035.22 | 1,243,628,965.48 |
| Transactional financial liabilities | ||
| Derivative Financial Liabilities | ||
| Notes Payable | 142,847,121.26 | 155,953,161.50 |
| Accounts Payable | 208,173,112.95 | 100,374,347.92 |
| Received Prepayments | ||
| Contract liabilities | 2,783,099.28 | 8,494,783.78 |
| Payroll payable | 55,801,303.13 | 82,688,797.50 |
| Tax Payable | 51,425,499.25 | 33,578,246.55 |
| Other Payables | 17,913,058.01 | 15,543,517.50 |
| Including: interest payable | ||
| Dividends Payable | ||
| Holding for-sale liabilities | ||
| Non-current Liabilities Due within 1 Year | 740,727,989.58 | 635,930,890.44 |
| Other Current Liabilities | 361,802.91 | 1,104,321.89 |
| Subtotal of Current Liabilities | 2,663,743,021.59 | 2,277,297,032.56 |
| Non-current Liabilities: | ||
| Long-term Borrowings | 3,539,372,165.41 | 2,209,521,076.40 |
| Bonds Payable | ||
| Including: Preferred Stocks | ||
| Perpetual Bonds |
| Item | June 30, 2021 | December 31, 2020 |
| Lease Liabilities | 3,303,921.56 | |
| Long-term Payables | ||
| Long-term payroll payable | ||
| Expected Liabilities | ||
| Deferred Income | 16,867,691.54 | 18,884,041.56 |
| Deferred Income Tax Liabilities | 16,149,009.81 | 13,011,703.03 |
| Other Non-current Liabilities | ||
| Subtotal of Non-current Liabilities | 3,575,692,788.32 | 2,241,416,820.99 |
| Total Liabilities | 6,239,435,809.91 | 4,518,713,853.55 |
| Shareholders' Equity: | ||
| Share Capital | 2,578,394,760.00 | 2,148,662,300.00 |
| Other Equity Instruments | ||
| Including: Preferred Stocks | ||
| Perpetual Bonds | ||
| Capital Reserves | 3,871,120,415.45 | 4,300,852,875.45 |
| Less: Treasury Share | ||
| Other Comprehensive Incomes | 506,954.43 | 506,954.43 |
| Special Reserves | ||
| Surplus Reserves | 1,074,331,150.00 | 1,074,331,150.00 |
| Undistributed Profits | 5,671,093,602.27 | 5,298,464,883.45 |
| Total Shareholders' Equity | 13,195,446,882.15 | 12,822,818,163.33 |
| Total Liabilities and Shareholders' Equity | 19,434,882,692.06 | 17,341,532,016.88 |
3. Consolidated Income Statement
Unit: RMB
| Item | 2021 Semi-Annual | 2020 Semi-Annual |
| I. Total Operating Revenue | 7,254,221,638.01 | 5,303,165,502.25 |
| Including: Operating Income | 7,254,221,638.01 | 5,303,165,502.25 |
| Interest Income | ||
| Earned Premiums | ||
| Service Charge and Commission Income |
| Item | 2021 Semi-Annual | 2020 Semi-Annual |
| II. Total Operating Cost | 4,555,167,761.74 | 2,805,793,794.44 |
| Including: Operating Cost | 3,755,325,045.02 | 2,143,809,060.49 |
| Interest Expenditures | ||
| Service Charge and Commission Expenses | ||
| Surrender Value | ||
| Net Claims Paid | ||
| The Net Amount Withdrawn for Insurance Liability Reserves | ||
| Policyholder Dividend Expense | ||
| Reinsurance Cost | ||
| Taxes and Surcharges | 60,794,324.08 | 50,570,859.70 |
| Sales expenses | 55,479,574.90 | 132,057,487.52 |
| Administration expenses | 187,505,914.10 | 183,896,476.30 |
| Research and development expense | 351,532,764.55 | 219,152,938.63 |
| Financial expenses | 144,530,139.09 | 76,306,971.80 |
| Including: interest expenses | 162,484,715.95 | 110,160,929.73 |
| Interest Income | 72,107,022.92 | 15,204,954.21 |
| Add: Other income | 74,696,050.67 | 45,648,659.95 |
| Investment Income (Mark "-" for Loss) | 44,982,466.91 | 68,798,092.59 |
| Including: Investment Income from Affiliates and Joint Ventures | 15,735,226.24 | 5,431,597.21 |
| Profits from recognition Termination of Financial Assets at Amortized Cost | ||
| Exchange Gains (Mark "-" for Losses) | ||
| Profit of Net Exposure Hedging (Mark "-" for Loss) | ||
| Incomes from changes in fair | 23,671,758.14 | 10,437,317.13 |
| Item | 2021 Semi-Annual | 2020 Semi-Annual |
| value (losses marked with "-") | ||
| Credit Impairment Losses (Mark "-" for Loss) | -33,637,204.20 | -48,988,895.82 |
| Asset Impairment Losses (Mark "-" for Loss) | -6,714,482.90 | -2,095,132.82 |
| Asset Disposal Income (Mark "-" for Loss) | 1,065,564.79 | 84,077.01 |
| III. Operating Profit (Mark "-" for Loss) | 2,803,118,029.68 | 2,571,255,825.85 |
| Add: Non-operating Revenues | 10,346,441.45 | 914,723.22 |
| Less: Non-operating Expenses | 1,919,029.53 | 11,965,365.14 |
| IV. Total Profit (Mark "-" for Total Loss) | 2,811,545,441.60 | 2,560,205,183.93 |
| Less: Income Tax Expense | 394,709,861.22 | 345,891,461.03 |
| V. Net Profit (Mark "-" for Net Loss) | 2,416,835,580.38 | 2,214,313,722.90 |
| (I) Classified by operation continuity | ||
| 1. Net Profit as a Going Concern (Mark "-" for Net Loss) | 2,416,835,580.38 | 2,214,313,722.90 |
| 2. Net Profit of Discontinued Operation (Mark "-" for Net Loss) | ||
| (II) Classified by the attribution of ownership | ||
| 1. Net Profit Attributable to the Parent Company's Owner | 2,408,499,133.50 | 2,208,930,277.20 |
| 2. Minority Shareholders' Profit and Loss | 8,336,446.88 | 5,383,445.70 |
| VI. Net Amount of Other Comprehensive Incomes after Tax | -14,379,132.25 | 11,140,618.65 |
| Net Amount of Other Comprehensive Incomes after Tax Attributable to the Parent Company's Owner | -11,402,449.39 | 10,034,354.34 |
| (1) Other comprehensive income that cannot be reclassified as P/L | ||
| 1. Re-measure the variation of the defined benefit plan | ||
| 2. Other comprehensive |
| Item | 2021 Semi-Annual | 2020 Semi-Annual |
| income that cannot be transferred to P/L under the equity method | ||
| 3. Changes in the fair value of investment in other equity instruments | ||
| 4. Changes in the fair value of the credit risk of the enterprise | ||
| 5. Others | ||
| (II) Other comprehensive income that will be reclassified as P/L | -11,402,449.39 | 10,034,354.34 |
| 1. Other comprehensive income that can be transferred to P/L under the equity method | ||
| 2. Changes in the fair value of investment in other creditor's rights | ||
| 3. Financial assets reclassified into other comprehensive income | ||
| 4. Provisions for the credit impairment of investment in other creditor's rights | ||
| 5. Cash flow hedge reserves | ||
| 6. Currency translation difference | -11,402,449.39 | 10,034,354.34 |
| 7. Others | ||
| Net Amount of Other Comprehensive Incomes After Tax Attributable to Minority Shareholders | -2,976,682.86 | 1,106,264.31 |
| VII. Total Comprehensive Income | 2,402,456,448.13 | 2,225,454,341.55 |
| Total Comprehensive Income Attributable to the Parent Company's Owner | 2,397,096,684.11 | 2,218,964,631.54 |
| Total Comprehensive Income Attributable to Minority Shareholders | 5,359,764.02 | 6,489,710.01 |
| VIII. Earnings per Share: | ||
| (I) Basic Earnings per Share | 0.93 | 0.86 |
| Item | 2021 Semi-Annual | 2020 Semi-Annual |
| (II) Diluted Earnings per Share | 0.93 | 0.86 |
In the case of enterprise consolidation under the same control in the current period, the net profit realized by the consolidated partybefore consolidation was RMB 0.00 and the net profit realized by the consolidated party in the previous period was RMB-2,969,102.52.Legal representative: Hu Baifan Chief accountant: Shi Guanqun Accounting officer: Wang Xiaobi
4. Income Statement of the Parent Company
Unit: RMB
| Item | 2021 Semi-Annual | 2020 Semi-Annual |
| I. Operating Income | 2,405,071,741.42 | 2,245,024,997.07 |
| Less: Operating Cost | 1,649,769,660.92 | 1,363,865,308.22 |
| Taxes and Surcharges | 14,334,032.09 | 10,364,905.30 |
| Sales expenses | 12,902,562.24 | 14,314,223.18 |
| Administration expenses | 68,371,878.28 | 62,234,313.30 |
| Research and development expense | 96,647,099.84 | 79,611,214.13 |
| Financial expenses | 29,735,303.93 | 74,671,657.49 |
| Including: interest expenses | 86,481,023.12 | 84,061,987.55 |
| Interest Income | 61,283,871.93 | 8,820,555.09 |
| Add: Other income | 20,317,226.28 | 17,932,941.46 |
| Investment Income (Mark "-" for Loss) | 1,399,890,573.23 | 1,109,369,211.83 |
| Including: Investment Income from Affiliates and Joint Ventures | 16,864,292.79 | 7,179,396.25 |
| Profits from Derecognition of Financial Assets at Amortized Cost (Mark "-" for Loss) | ||
| Profit of Net Exposure Hedging (Mark "-" for Loss) | ||
| Incomes from changes in fair value (losses marked with "-") | 8,196,887.24 | 8,520,857.22 |
| Credit Impairment Losses (Mark "-" for Loss) | 6,804,182.64 | 13,874,426.31 |
| Asset Impairment Losses (Mark "-" for Loss) | -6,120,461.67 | -1,841,639.99 |
| Item | 2021 Semi-Annual | 2020 Semi-Annual |
| Asset Disposal Income (Mark "-" for Loss) | -2,538,880.18 | -119,089.10 |
| II. Operating Profit (Mark "-" for Loss) | 1,959,860,731.66 | 1,787,700,083.18 |
| Add: Non-operating Revenues | 4,706,210.71 | 17,861.51 |
| Less: Non-operating Expenses | 1,100,000.00 | 3,516,986.34 |
| III. Total Profit (Mark "-" for Total Loss) | 1,963,466,942.37 | 1,784,200,958.35 |
| Less: Income Tax Expense | 86,774,613.55 | 116,943,623.85 |
| IV. Net Profit (Mark "-" for Net Loss) | 1,876,692,328.82 | 1,667,257,334.50 |
| (I) Net Profit as a Going Concern (Mark "-" for Net Loss) | ||
| (II) Net Profit of Discontinued Operation (Mark "-" for Net Loss) | 1,876,692,328.82 | 1,667,257,334.50 |
| V. Net Amount of Other Comprehensive Incomes After Tax | ||
| (1) Other comprehensive income that cannot be reclassified as P/L | ||
| 1. Re-measure the variation of the defined benefit plan | ||
| 2. Other comprehensive income that cannot be transferred to P/L under the equity method | ||
| 3. Changes in the fair value of investment in other equity instruments | ||
| 4. Changes in the fair value of the credit risk of the enterprise | ||
| 5. Others | ||
| (II) Other comprehensive income that will be reclassified as P/L | ||
| 1. Other comprehensive income that can be transferred to P/L under the equity method | ||
| 2. Changes in the fair value of investment in other creditor's |
| Item | 2021 Semi-Annual | 2020 Semi-Annual |
| rights | ||
| 3. Financial assets reclassified into other comprehensive income | ||
| 4. Provisions for the credit impairment of investment in other creditor's rights | ||
| 5. Cash flow hedge reserves | ||
| 6. Currency translation difference | ||
| 7. Others | ||
| VI. Total Comprehensive Income | 1,876,692,328.82 | 1,667,257,334.50 |
| VII. Earnings per Share: | ||
| (I) Basic Earnings per Share | ||
| (II) Diluted Earnings per Share |
5. Consolidated Cash Flow Statement
Unit: RMB
| Item | 2021 Semi-Annual | 2020 Semi-Annual |
| I. Cash Flow Generated by Operational Activities: | ||
| Cash from Sales of Merchandise and Provision of Services | 6,823,103,213.62 | 4,944,220,993.13 |
| Net Increase in Customer's Bank Deposits and Interbank Deposits | ||
| Net Increase in Loan from the Central Bank | ||
| Net Increase in Loan from Other Financial Institutions | ||
| Cash Arising from Receiving Premiums for the Original Insurance Contract | ||
| Net Amount Arising from Reinsurance Business | ||
| Net Increase in Deposits and Investments from Policyholders | ||
| Cash Arising from Interests, |
| Item | 2021 Semi-Annual | 2020 Semi-Annual |
| Service Charges and Commissions | ||
| Net Increase in Loan from Banks and Other Financial Institutions | ||
| Net Increase in Repurchase Business Funds | ||
| Net Amount of Cash Received from the Vicariously Traded Securities | ||
| Tax Refund | 515,274,673.62 | 347,076,026.47 |
| Other Cash Receipts Relating to Operating Activities | 166,303,614.38 | 60,075,389.66 |
| Subtotal of cash inflow from operational activities | 7,504,681,501.62 | 5,351,372,409.26 |
| Cash Paid for Merchandise and Services | 3,731,367,763.85 | 2,861,983,420.55 |
| Net Increase in Loans and Advances to Customers | ||
| Net Increase in Deposits with Central Bank and Other Financial Institutions | ||
| Cash Paid for Original Insurance Contract Claims | ||
| Net increase of funds lent | ||
| Cash Paid for Interests, Service Charges and Commissions | ||
| Cash Paid for Policy Dividends | ||
| Cash Paid to and for Employees | 787,203,766.37 | 641,433,701.64 |
| Cash Paid for Taxes and Surcharges | 522,757,776.92 | 530,604,731.09 |
| Other Cash Payments Relating to Operating Activities | 192,194,712.71 | 189,790,335.87 |
| Subtotal of cash outflow from operational activities | 5,233,524,019.85 | 4,223,812,189.15 |
| Net cash flow generated by operating activities | 2,271,157,481.77 | 1,127,560,220.11 |
| II. Cash Flow from Investment |
| Item | 2021 Semi-Annual | 2020 Semi-Annual |
| Activities: | ||
| Cash Arising from Disposal of Investments | 2,276,538.05 | |
| Cash Arising from Investment Incomes | 37,215,654.69 | 67,855,515.64 |
| Net Cash Arising from Disposal of Fixed Assets, Intangible Assets and Other Long-term Assets | 8,502,600.00 | 1,507,223.49 |
| Net Cash Arising from Disposal of Subsidiaries and Other Business Units | ||
| Other Cash Receipts Relating to Investing Activities | 1,800,000,000.00 | 3,926,094,561.00 |
| Subtotal of cash inflow from investment activities | 1,845,718,254.69 | 3,997,733,838.18 |
| Cash Paid for Purchase and Construction of Fixed Assets, Intangible Assets and Other Long-term Assets | 1,308,263,685.39 | 1,078,610,102.04 |
| Cash Paid for Investments | ||
| Net Increase in Pledge Loans | ||
| Net Cash Paid for Acquisition of Subsidiaries and Other Business Units | 83,904,479.79 | |
| Other Cash Payments Relating to Investing Activities | 1,520,000,000.00 | 1,400,000,000.00 |
| Subtotal of cash outflows from investment activities | 2,912,168,165.18 | 2,478,610,102.04 |
| Net amount of cash flow generated by investment activities | -1,066,449,910.49 | 1,519,123,736.14 |
| III. Cash Flow from Financing Activities: | ||
| Cash Arising from Absorbing Investments | ||
| Including: Cash Arising from Subsidiaries Absorbing Investments by Minority Shareholders | ||
| Cash Arising from Loan | 4,130,981,309.28 | 2,537,832,892.26 |
| Item | 2021 Semi-Annual | 2020 Semi-Annual |
| Other Cash Receipts Relating to Financing Activities | 73,000,000.00 | |
| Subtotal of cash inflow from financing activities | 4,130,981,309.28 | 2,610,832,892.26 |
| Cash Paid for Borrowings Repayment | 2,095,709,235.89 | 2,580,070,226.36 |
| Cash Paid for Distribution of Dividends and Profits or Payment of Interests | 1,680,134,920.84 | 670,702,742.53 |
| Including: Dividends and Profits Paid to Minority Shareholders by Subsidiaries | ||
| Other Cash Payments Relating to Financing Activities | 3,363,407.69 | 9,457,429.96 |
| Subtotal of cash outflow from financing activities | 3,779,207,564.42 | 3,260,230,398.85 |
| Net cash flow generated by financing activities | 351,773,744.86 | -649,397,506.59 |
| IV. Impact of Fluctuation in Exchange Rate on Cash and Cash Equivalents | -43,624,594.66 | 30,471,891.80 |
| V. Net Increase in Cash and Cash Equivalents | 1,512,856,721.48 | 2,027,758,341.46 |
| Add: Cash and Cash Equivalents at the Commencement of the Period | 4,669,306,776.09 | 3,213,557,815.42 |
| VI. Cash and Cash Equivalents at the End of the Period | 6,182,163,497.57 | 5,241,316,156.88 |
6. Cash Flow Statement of the Parent Company
Unit: RMB
| Item | 2021 Semi-Annual | 2020 Semi-Annual |
| I. Cash Flow Generated by Operational Activities: | ||
| Cash from Sales of Merchandise and Provision of Services | 2,552,072,193.45 | 1,924,439,288.16 |
| Tax Refund | 48,584,987.43 | 51,541,889.88 |
| Other Cash Receipts Relating to | 84,964,666.40 | 26,370,414.41 |
| Item | 2021 Semi-Annual | 2020 Semi-Annual |
| Operating Activities | ||
| Subtotal of cash inflow from operational activities | 2,685,621,847.28 | 2,002,351,592.45 |
| Cash Paid for Merchandise and Services | 1,633,400,198.22 | 2,215,126,164.30 |
| Cash Paid to and for Employees | 149,783,536.93 | 132,411,814.25 |
| Cash Paid for Taxes and Surcharges | 78,513,703.83 | 106,629,378.77 |
| Other Cash Payments Relating to Operating Activities | 55,045,354.56 | 38,615,969.62 |
| Subtotal of cash outflow from operational activities | 1,916,742,793.54 | 2,492,783,326.94 |
| Net cash flow generated by operating activities | 768,879,053.74 | -490,431,734.49 |
| II. Cash Flow from Investment Activities: | ||
| Cash Arising from Disposal of Investments | 2,182,000.00 | |
| Cash Arising from Investment Incomes | 1,162,849,287.12 | 1,042,241,881.89 |
| Net Cash Arising from Disposal of Fixed Assets, Intangible Assets and Other Long-term Assets | 995,678.52 | |
| Net Cash Arising from Disposal of Subsidiaries and Other Business Units | ||
| Other Cash Receipts Relating to Investing Activities | 4,883,233,008.66 | 6,140,177,549.93 |
| Subtotal of cash inflow from investment activities | 6,046,082,295.78 | 7,185,597,110.34 |
| Cash Paid for Purchase and Construction of Fixed Assets, Intangible Assets and Other Long-term Assets | 2,560,544.11 | 3,013,705.76 |
| Cash Paid for Investments | 660,000,000.00 | 800,000,000.00 |
| Net Cash Paid for Acquisition of Subsidiaries and Other Business Units |
| Item | 2021 Semi-Annual | 2020 Semi-Annual |
| Other Cash Payments Relating to Investing Activities | 4,589,000,000.00 | 3,234,000,000.00 |
| Subtotal of cash outflows from investment activities | 5,251,560,544.11 | 4,037,013,705.76 |
| Net amount of cash flow generated by investment activities | 794,521,751.67 | 3,148,583,404.58 |
| III. Cash Flow from Financing Activities: | ||
| Cash Arising from Absorbing Investments | ||
| Cash Arising from Loan | 3,055,061,200.00 | 1,581,191,700.00 |
| Other Cash Receipts Relating to Financing Activities | 50,000,000.00 | |
| Subtotal of cash inflow from financing activities | 3,055,061,200.00 | 1,631,191,700.00 |
| Cash Paid for Borrowings Repayment | 1,419,380,427.30 | 2,240,012,727.27 |
| Cash Paid for Distribution of Dividends and Profits or Payment of Interests | 1,588,570,689.93 | 644,955,367.68 |
| Other Cash Payments Relating to Financing Activities | 2,810,055.12 | 3,661,792.20 |
| Subtotal of cash outflow from financing activities | 3,010,761,172.35 | 2,888,629,887.15 |
| Net cash flow generated by financing activities | 44,300,027.65 | -1,257,438,187.15 |
| IV. Impact of Fluctuation in Exchange Rate on Cash and Cash Equivalents | -8,249,728.64 | 2,300,417.37 |
| V. Net Increase in Cash and Cash Equivalents | 1,599,451,104.42 | 1,403,013,900.31 |
| Add: Cash and Cash Equivalents at the Commencement of the Period | 2,593,272,980.50 | 1,339,946,642.54 |
| VI. Cash and Cash Equivalents at the End of the Period | 4,192,724,084.92 | 2,742,960,542.85 |
7. Consolidated Statement of Changes in Owners' Equity
Amount of this period
Unit: RMB
| Item | 2021 Semi-Annual | ||||||||||||||
| Shareholders' Equity Attributable to the Parent Company's Owner | Minority Shareholders' Equity | Total Shareholders' Equity | |||||||||||||
| Share Capital | Other Equity Instruments | Capital Reserves | Less: Treasury Share | Other Comprehensive Incomes | Special Reserves | Surplus Reserves | General Risk Reserves | Undistributed Profits | Others | Subtotal | |||||
| Preferred Stocks | Perpetual Bonds | Others | |||||||||||||
| I. Balance at the End of Last Year | 2,148,662,300.00 | 4,560,522,556.84 | 27,803,829.31 | 9,550,346.85 | 1,074,331,150.00 | 11,515,384,739.95 | 19,336,254,922.95 | 67,576,527.03 | 19,403,831,449.98 | ||||||
| Add: Changes in Accounting Policies | |||||||||||||||
| Correction of Errors in the Previous Period | |||||||||||||||
| Consolidated under the Same Control | |||||||||||||||
| Others | |||||||||||||||
| II. Balance at the Start of This Year | 2,148,662,300.00 | 4,560,522,556.84 | 27,803,829.31 | 9,550,346.85 | 1,074,331,150.00 | 11,515,384,739.95 | 19,336,254,922.95 | 67,576,527.03 | 19,403,831,449.98 | ||||||
| III. Increases or Decreases in This Period (Mark "-" for Decreases) | 429,732,460.00 | -429,732,460.00 | -11,402,449.39 | 2,092,131.78 | 904,435,523.50 | 895,125,205.89 | -7,822,068.98 | 887,303,136.91 | |||||||
| (I) Total Comprehensive Income | -11,402,449.39 | 2,408,499,133.50 | 2,397,096,684.11 | 5,359,764.02 | 2,402,456,448.13 | ||||||||||
| (II) Shareholders' Contribution and Reduction in Capital | |||||||||||||||
| 1． Common stock invested by the owner | |||||||||||||||
| 2． Capital Invested by Holders of Other Equity Instruments | |||||||||||||||
| 3． Amount of |
| Share-based Payments Recorded into Shareholders' Equity | |||||||||||||||
| 4． Others | |||||||||||||||
| (III) Profit Distribution | -1,504,063,610.00 | -1,504,063,610.00 | -13,181,833.00 | -1,517,245,443.00 | |||||||||||
| 1． Appropriation of Surplus Reserves | |||||||||||||||
| 2． Appropriation of General Risk Reserves | |||||||||||||||
| 3． Distribution to Owners (or Shareholders) | -1,504,063,610.00 | -1,504,063,610.00 | -13,181,833.00 | -1,517,245,443.00 | |||||||||||
| 4． Others | |||||||||||||||
| (IV) Internal Carry-forward of Shareholders' Equity | 429,732,460.00 | -429,732,460.00 | |||||||||||||
| 1． Capital | 429,732, | -429,73 |
| Reserves Transferred into Capital (or Share Capital) | 460.00 | 2,460.00 | |||||||||||||
| 2． Surplus Reserves Transferred into Capital (or Share Capital) | |||||||||||||||
| 3． Surplus Reserves Covering Losses | |||||||||||||||
| 4． Carry-forward retained earnings of the variation of the defined benefit plan | |||||||||||||||
| 5． Other Carry-forward Retained Earnings of the Comprehensi |
| ve Income | |||||||||||||||
| 6. Others | |||||||||||||||
| (V) Special Reserves | 2,092,131.78 | 2,092,131.78 | 2,092,131.78 | ||||||||||||
| 1． Withdrawal in this period | 5,948,742.71 | 5,948,742.71 | 5,948,742.71 | ||||||||||||
| 2． Used in This Period | -3,856,610.93 | -3,856,610.93 | -3,856,610.93 | ||||||||||||
| (VI) Others | |||||||||||||||
| IV. Balance at the End of This Period | 2,578,394,760.00 | 4,130,790,096.84 | 16,401,379.92 | 11,642,478.63 | 1,074,331,150.00 | 12,419,820,263.45 | 20,231,380,128.84 | 59,754,458.05 | 20,291,134,586.89 |
Amount of Previous Period
Unit: RMB
| Item | 2020 Semi-Annual | ||||||||||||||
| Shareholders' Equity Attributable to the Parent Company's Owner | Minority Shareholders' Equity | Total Shareholders' Equity | |||||||||||||
| Share Capital | Other Equity Instruments | Capital Reserves | Less: Treasury Share | Other Comprehensive Incomes | Special Reserves | Surplus Reserves | General Risk Reserves | Undistributed Profits | Others | Subtotal | |||||
| Preferred Stocks | Perpetual Bonds | Others | |||||||||||||
| I. Balance at the End of Last Year | 2,148,662,300.00 | 4,709,068,757.66 | 37,765,885.17 | 5,337,505.56 | 951,844,916.62 | 9,158,233,971.76 | 17,010,913,336.77 | 52,482,111.04 | 17,063,395,447.81 | ||||||
| Add: Changes in Accounting Policies | |||||||||||||||
| Correction of Errors in the Previous Period | |||||||||||||||
| Consolidated under the Same Control | |||||||||||||||
| Others | |||||||||||||||
| II. Balance at the Start of This Year | 2,148,662,300.00 | 4,709,068,757.66 | 37,765,885.17 | 5,337,505.56 | 951,844,916.62 | 9,158,233,971.76 | 17,010,913,336.77 | 52,482,111.04 | 17,063,395,447.81 | ||||||
| III. Increases or Decreases in This Period (Mark "-" for | 10,034,354.34 | 2,948,527.39 | 1,134,599,127.20 | 1,147,582,008.93 | 6,489,710.01 | 1,154,071,718.94 |
| Decreases) | |||||||||||||||
| (I) Total Comprehensive Income | 10,034,354.34 | 2,208,930,277.20 | 2,218,964,631.54 | 6,489,710.01 | 2,225,454,341.55 | ||||||||||
| (II) Shareholders' Contribution and Reduction in Capital | |||||||||||||||
| 1． Common stock invested by the owner | |||||||||||||||
| 2． Capital Invested by Holders of Other Equity Instruments | |||||||||||||||
| 3． Amount of Share-based Payments Recorded into |
| Shareholders' Equity | |||||||||||||||
| 4． Others | |||||||||||||||
| (III) Profit Distribution | -1,074,331,150.00 | -1,074,331,150.00 | -1,074,331,150.00 | ||||||||||||
| 1． Appropriation of Surplus Reserves | |||||||||||||||
| 2． Appropriation of General Risk Reserves | |||||||||||||||
| 3． Distribution to Owners (or Shareholders) | -1,074,331,150.00 | -1,074,331,150.00 | -1,074,331,150.00 | ||||||||||||
| 4． Others | |||||||||||||||
| (IV) Internal Carry-forward of Shareholders' Equity | |||||||||||||||
| 1． Capital |
| Reserves Transferred into Capital (or Share Capital) | |||||||||||||||
| 2． Surplus Reserves Transferred into Capital (or Share Capital) | |||||||||||||||
| 3． Surplus Reserves Covering Losses | |||||||||||||||
| 4． Carry-forward retained earnings of the variation of the defined benefit plan | |||||||||||||||
| 5． Other Carry-forward Retained Earnings of |
| the Comprehensive Income | |||||||||||||||
| 6. Others | |||||||||||||||
| (V) Special Reserves | 2,948,527.39 | 2,948,527.39 | 2,948,527.39 | ||||||||||||
| 1． Withdrawal in this period | 6,046,872.68 | 6,046,872.68 | 6,046,872.68 | ||||||||||||
| 2． Used in This Period | -3,098,345.29 | -3,098,345.29 | -3,098,345.29 | ||||||||||||
| (VI) Others | |||||||||||||||
| IV. Balance at the End of This Period | 2,148,662,300.00 | 4,709,068,757.66 | 47,800,239.51 | 8,286,032.95 | 951,844,916.62 | 10,292,833,098.96 | 18,158,495,345.70 | 58,971,821.05 | 18,217,467,166.75 |
8. Statement of Changes in Owners' Equity of the Parent Company
Amount of this period
Unit: RMB
| Item | 2021 Semi-Annual | |||||||||||
| Share Capital | Other Equity Instruments | Capital Reserves | Less: Treasury Share | Other Comprehensive Incomes | Special Reserves | Surplus Reserves | Undistributed Profits | Others | Total Shareholders' Equity | |||
| Preferred Stocks | Perpetual Bonds | Others | ||||||||||
| I. Balance at the End of Last Year | 2,148,662,300.00 | 4,300,852,875.45 | 506,954.43 | 1,074,331,150.00 | 5,298,464,883.45 | 12,822,818,163.33 | ||||||
| Add: Changes in Accounting Policies | ||||||||||||
| Correction of Errors in the Previous Period | ||||||||||||
| Others | ||||||||||||
| II. Balance at the Start of This Year | 2,148,662,300.00 | 4,300,852,875.45 | 506,954.43 | 1,074,331,150.00 | 5,298,464,883.45 | 12,822,818,163.33 | ||||||
| III. Increases or Decreases in This Period (Mark "-" for Decreases) | 429,732,460.00 | -429,732,460.00 | 372,628,718.82 | 372,628,718.82 |
| (I) Total Comprehensive Income | 1,876,692,328.82 | 1,876,692,328.82 | ||||||||||
| (II) Shareholders' Contribution and Reduction in Capital | ||||||||||||
| 1． Common stock invested by the owner | ||||||||||||
| 2． Capital Invested by Holders of Other Equity Instruments | ||||||||||||
| 3． Amount of Share-based Payments Recorded into Shareholder |
| s' Equity | ||||||||||||
| 4． Others | ||||||||||||
| (III) Profit Distribution | -1,504,063,610.00 | -1,504,063,610.00 | ||||||||||
| 1． Appropriation of Surplus Reserves | ||||||||||||
| 2． Distribution to Owners (or Shareholders) | -1,504,063,610.00 | -1,504,063,610.00 | ||||||||||
| 3． Others | ||||||||||||
| (IV) Internal Carry-forward of Shareholders' Equity | 429,732,460.00 | -429,732,460.00 | ||||||||||
| 1． Capital Reserves Transferred into Capital (or Share Capital) | 429,732,460.00 | -429,732,460.00 | ||||||||||
| 2． Surplus |
| Reserves Transferred into Capital (or Share Capital) | ||||||||||||
| 3． Surplus Reserves Covering Losses | ||||||||||||
| 4． Carry-forward retained earnings of the variation of the defined benefit plan | ||||||||||||
| 5． Other Carry-forward Retained Earnings of the Comprehensive Income | ||||||||||||
| 6. Others | ||||||||||||
| (V) Special |
| Reserves | ||||||||||||
| 1． Withdrawal in this period | ||||||||||||
| 2． Used in This Period | ||||||||||||
| (VI) Others | ||||||||||||
| IV. Balance at the End of This Period | 2,578,394,760.00 | 3,871,120,415.45 | 506,954.43 | 1,074,331,150.00 | 5,671,093,602.27 | 13,195,446,882.15 |
Amount of Previous Period
Unit: RMB
| Item | 2020 Semi-Annual | |||||||||||
| Share Capital | Other Equity Instruments | Capital Reserves | Less: Treasury Share | Other Comprehensive Incomes | Special Reserves | Surplus Reserves | Undistributed Profits | Others | Total Shareholders' Equity | |||
| Preferred Stocks | Perpetual Bonds | Others | ||||||||||
| I. Balance at the End of Last Year | 2,148,662,300.00 | 4,300,852,875.45 | 506,954.43 | 951,844,916.62 | 4,488,013,408.28 | 11,889,880,454.78 | ||||||
| Add: Changes in Accounting Policies | ||||||||||||
| Correction of Errors in the Previous Period | ||||||||||||
| Others | ||||||||||||
| II. Balance at the Start of This Year | 2,148,662,300.00 | 4,300,852,875.45 | 506,954.43 | 951,844,916.62 | 4,488,013,408.28 | 11,889,880,454.78 | ||||||
| III. Increases or Decreases in This Period (Mark "-" for Decreases) | 592,926,184.50 | 592,926,184.50 | ||||||||||
| (I) Total Comprehensive Income | 1,667,257,334.50 | 1,667,257,334.50 | ||||||||||
| (II) Shareholders' Contribution and Reduction in Capital | ||||||||||||
| 1． Common stock invested by the owner | ||||||||||||
| 2． Capital |
| Invested by Holders of Other Equity Instruments | ||||||||||||
| 3． Amount of Share-based Payments Recorded into Shareholders' Equity | ||||||||||||
| 4． Others | ||||||||||||
| (III) Profit Distribution | -1,074,331,150.00 | -1,074,331,150.00 | ||||||||||
| 1． Appropriation of Surplus Reserves | ||||||||||||
| 2． Distribution to Owners (or Shareholders) | -1,074,331,150.00 | -1,074,331,150.00 | ||||||||||
| 3． Others | ||||||||||||
| (IV) Internal Carry-forward of Shareholders' |
| Equity | ||||||||||||
| 1． Capital Reserves Transferred into Capital (or Share Capital) | ||||||||||||
| 2． Surplus Reserves Transferred into Capital (or Share Capital) | ||||||||||||
| 3． Surplus Reserves Covering Losses | ||||||||||||
| 4． Carry-forward retained earnings of the variation of the defined benefit plan | ||||||||||||
| 5． Other Carry-forward Retained Earnings of |
| the Comprehensive Income | ||||||||||||
| 6. Others | ||||||||||||
| (V) Special Reserves | ||||||||||||
| 1． Withdrawal in this period | ||||||||||||
| 2． Used in This Period | ||||||||||||
| (VI) Others | ||||||||||||
| IV. Balance at the End of This Period | 2,148,662,300.00 | 4,300,852,875.45 | 506,954.43 | 951,844,916.62 | 5,080,939,592.78 | 12,482,806,639.28 |
III. Basic Information about the CompanyZhejiang NHU Co., Ltd. (hereinafter referred to as the Company or our company) was approved by the former SecuritiesCommission of People's Government of Zhejiang Province, Zhejiang Securities Commission [1999] No. 9 document, jointly initiatedand established by Xinchang County Synthetic Chemical Plant (renamed NHU Holding Group Co., Ltd. on November 17, 2009) andnine natural persons including Zhang Pingyi, Yuan Yizhong, Shi Cheng, Hu Baishan, Shi Guanqun, Wang Xuewen, Shi Sanfu CuiXinrong, Wang Xulin, registered in Zhejiang Administration for Industry and Commerce on April 5, 1999, and headquartered inShaoxing, Zhejiang Province. The Company now holds a business license with a unified social credit code of 91330000712560575G,a registered capital of RMB 2,578,394,760.00 and a total of 2,578,394,760.00 shares (par value of RMB 1 per share). Among them,the number of liquid shares with limited sales conditions is 30,311,084; The number of liquid shares with unlimited sales conditionsis 2,548,083,676. The Company's shares were listed and traded in Shenzhen Stock Exchange on June 25, 2004.The Company belongs to the pharmaceutical manufacturing industry. Principal business activities are the production and sale ofnutrition, flavor and fragrance and new polymer materials. Products mainly include: nutrition, flavor and fragrance and new polymermaterials.This financial statement has been approved for public by the seventh meeting of the eighth session of the Board of Directors ofthe Company on August 18, 2021.The Company has included 23 subsidiaries such as Xinchang Vitamin, NHU Import and Export, and Zhejiang VYS in thescope of consolidated financial statements of the current period. For details, please refer to the description of IX.1 of the financialreport in this section.IV. Basis for Preparing the Financial Statement
1. Basis for the preparation
The financial statement of the Company has been prepared on the basis of continuing operations.
2. Going concern
The Company has no items or circumstances that cause major doubts about its ability to continue operations within 12 monthsfrom the end of the reporting period.
V. Significant Accounting Polices and Accounting Estimates
Notes to specific accounting policies and accounting estimates:
According to the actual production and operation characteristics, the Company has formulated specific accounting policies andaccounting estimates for transactions or items such as impairment of financial instruments, depreciation of fixed assets, amortizationof intangible assets, and revenue recognition.
1. Statement on compliance with Accounting Standards for Business EnterprisesThe financial statements prepared by the Company comply with the requirements of the Accounting Standard for BusinessEnterprises and truly and completely reflect the company's financial position, operating results, cash flow and other relevant
information.
2. Accounting period
The fiscal year starts from January 1 and ends on December 31 of the Gregorian calendar.
3. Operating cycle
Except for the real estate industry, the business cycle of the Company's business is relatively short, and 12 months is taken asthe liquidity classification standard of assets and liabilities. The business cycle of the real estate industry generally takes more than12 months from real estate development to sales and revenue generation. The specific cycle is determined according to the projectdevelopment, and its business cycle is taken as the liquidity classification standard of assets and liabilities.
4. Functional currency
The Company and its domestic subsidiaries take CNY as the functional currency, and overseas subsidiaries such as NHU (HongKong) Trading Co., Ltd. and NHU Europe GmbH are engaged in overseas operations. The currency in the main economicenvironment in which they operate is selected as the functional currency.
5. The accounting treatment of business combinations involving enterprises under common control andbusiness combinations not involving enterprises under common control
1. Accounting treatment method for business combination under the same control
The assets and liabilities acquired by the Company in business combination are measured according to the carrying amount ofthe combined party in the consolidated financial statements of the ultimate controlling party on the combination date. The Companyadjusts the capital reserve according to the difference between carrying amount share of the owner's equity of the combined party inthe consolidated financial statements of the ultimate controlling party and the carrying amount of the combination consideration paidor the total par value of issued shares; If the capital reserve is insufficient to offset, the retained earnings shall be adjusted.
2. Accounting treatment method for business combination not under the same control
The Company recognizes the positive balance between the combination costs and fair value shares of identifiable net assets ofthe acquiree as goodwill on the acquisition date; If the combination cost is less than the fair value of identifiable net assets of theacquiree obtained in the combination, first review the measurement of the fair value of identifiable assets, liabilities and contingentliabilities of the acquiree and the combination cost, if the combination cost is still less than the fair value of identifiable net assets ofthe acquiree obtained in the combination after review, the difference shall be included in the current profits and losses.
6. Preparation method of consolidated financial statements
The parent company brings all subsidiaries under its control into the consolidation scope of the consolidated financial statements.The consolidated financial statements are prepared by the parent company in accordance with the "Accounting Standard for BusinessEnterprises No.33——Consolidated Financial Statements" based on the financial statements of the parent company and itssubsidiaries and other relevant materials.
7. Recognition criteria of cash and cash equivalents
The cash listed in the cash flow statement refers to the cash on hand and deposits that are available for payment at any time.Cash equivalents refer to the investments held by enterprises which are short-term, highly liquid, and easy to be converted intoknown amounts of cash and have little risk of value change.
8. Conversion of transactions and financial statements denominated in foreign currencies
1. Translation of foreign currency business
When the foreign currency transaction is initially recognized, it is converted into CNY at the approximate exchange rate of thespot exchange rate on the transaction date. On the balance sheet date, foreign currency monetary items are translated at the spotexchange rate on the balance sheet date. The exchange difference arising from different exchange rates, in addition to the exchangedifference between the principal and interest of foreign currency special Loan related to the acquisition and construction of assetseligible for capitalization, is included in the current profits and losses; The foreign currency non-monetary items measured athistorical cost are still translated at the approximate exchange rate of the spot exchange rate on the transaction date, and the CNYamount is not changed; The foreign currency non-monetary items measured at fair value are translated at the spot exchange rate onthe date when the fair value is determined, and the difference is included in the current profits and losses or other comprehensiveincome.
2. Translation of foreign currency financial statement
The asset and liability items in the balance sheet are translated at the spot exchange rate on the balance sheet date; Except for the"undistributed profit" item, other items of owner's equity are translated at the spot exchange rate on the transaction date; The incomeand expense items in the income statement are translated at the approximate exchange rate of the spot exchange rate on thetransaction date. The translation difference of foreign currency financial statements generated according to the above translation isincluded in other comprehensive income.
9. Financial instruments
1.Classification of financial assets and financial liabilities
Financial assets are classified into the following three categories on initial recognition: (1) Financial assets measured atamortized cost; (2) Financial assets measured at fair value with changes included in other comprehensive income; (3) Financial assetsmeasured at fair value through profit or loss.
Financial liabilities are classified into the following four categories on initial recognition: (1) Financial liabilities measured atfair value through profit or loss; (2) Financial liabilities arising from that the transfer of financial assets does not meet the conditionsfor derecognition or continues to be involved in the transferred financial assets; (3) Financial guarantee contracts that do not belongto (1) or (2) above, and loan commitments that do not belong to (1) above and lend at a lower market interest rate; (4) Financialliabilities measured at amortized cost.
2. Recognition basis, measurement method and derecognition conditions of financial assets and financial liabilities
(1) Recognition basis and initial measurement method of financial assets and financial liabilities
A financial asset or financial liability is recognized when the Company becomes a party to the financial instrument contract.When financial assets or financial liabilities are initially recognized, fair value is taken for measurement; For financial assets and
financial liabilities measured at fair value through profit or loss, relevant transaction costs are directly included in the current profitsand losses; For other types of financial assets or financial liabilities, relevant transaction costs are included in the initially recognizedamount. However, if the accounts receivable initially recognized by the Company does not contain major financing components orthe Company does not consider the financing components in the contract less than one year, the initial measurement shall be madeaccording to the transaction price defined in the "Accounting Standard for Business Enterprises No. 14——Revenue".
(2) Subsequent measurement methods of financial assets
1) Financial assets measured at amortized cost
The effective interest rate method is adopted for subsequent measurement in accordance with the amortized cost. The gains orlosses arising from financial assets measured at amortized cost and not part of any hedging relationship are included in the currentprofits and losses when they are derecognized, reclassified, amortized using the effective interest rate method or recognized asimpairment.
2) Debt instrument investment measured at fair value with changes included in other comprehensive income
Fair value is adopted for subsequent measurement. The interest, impairment losses or gains and exchange gains and lossescalculated by the effective interest rate method are included in the current profits and losses, and other gains or losses are included inother comprehensive income. Upon derecognition, the accumulated gains or losses previously included in other comprehensiveincome are transferred out of other comprehensive income and included in the current profits and losses.
3) Equity instrument investment measured at fair value with changes included in other comprehensive income
Fair value is adopted for subsequent measurement. Dividends acquired (except those belonging to the recovery part ofinvestment costs) are included in the current profits and losses, and other gains or losses are included in other comprehensive income.Upon derecognition, the accumulated gains or losses previously included in other comprehensive income are transferred out of othercomprehensive income and included in retained earnings.
4) Financial assets measured at fair value through profit or loss
The subsequent measurement is carried out at fair value, and the gains or losses resulted (including interest and dividend income)are included in the current profits and losses, unless the financial asset is part of the hedging relationship.
(3) Subsequent measurement method of financial liabilities
1) Financial liabilities measured at fair value through profit or loss
Such financial liabilities include trading financial liabilities (including derivatives belonging to financial liabilities) and financialliabilities designated to be measured at fair value through profit or loss. Such financial liabilities are subsequently measured at fairvalue. The amount of changes in the fair value of financial liabilities designated to be measured at fair value through profit or lossdue to changes in the Company's own credit risk are included in other comprehensive income, unless the treatment will cause orexpand the accounting mismatch in the profit or loss. Other gains or losses arising from such financial liabilities (including interestexpenses with the exception of changes in the fair value caused by changes in the Company's own credit risk) are included in thecurrent profits and losses, unless the financial liabilities are part of the hedging relationship. Upon derecognition, the accumulatedgains or losses previously included in other comprehensive income are transferred out of other comprehensive income and includedin retained earnings.
2) Financial liabilities arising from that the transfer of financial assets does not meet the conditions for derecognition orcontinues to be involved in the transferred financial assets;
Measure in accordance with the relevant provisions of the "Accounting Standard for Business Enterprises No. 23——Transfer
of Financial Assets".
3) Financial guarantee contracts that do not belong to (1) or (2) above, and loan commitments that do not belong to (1) aboveand lend at a lower market interest rateAfter initial recognition, subsequent measurement shall be made according to the higher of the following two amounts: ① Theamount of loss reserves determined according to the provisions on impairment of financial instruments; ② The balance of theinitially recognized amount after deducting the accumulated amortization determined in accordance with the relevant provisions ofthe "Accounting Standard for Business Enterprises No. 14——Revenue".
4) Financial liabilities measured at amortized cost
Adopt the effective interest method to measure at amortized cost. The gains or losses arising from financial liabilities measuredat amortized cost and not part of any hedging relationship are included in the current profits and losses when they are derecognizedand amortized according to the effective interest rate method.
(4) Derecognition of financial assets and financial liabilities
1) When one of the following conditions is met, financial assets are derecognized:
① The contractual right to receive cash flows from financial assets has been terminated;
② Financial assets have been transferred, and this transfer meets the provisions on the derecognition of financial assets in the"Accounting Standard for Business Enterprises No. 23——Transfer of Financial Assets"
2) When the current obligation of a financial liability (or part thereof) has been discharged, the derecognition of the financialliability (or part thereof) shall be terminated accordingly.
3. Recognition basis and measurement method of financial asset transfer
If the Company transfers almost all the risks and rewards in the title of financial assets, the financial assets shall be derecognized,and the rights and obligations generated or retained in the transfer as assets or liabilities shall be separately recognized; If almost allthe risks and rewards in the title of financial assets are retained, the transferred financial assets shall continue to be recognized. Ifthe Company neither transfers nor retains almost all the risks and rewards in the title of financial assets, it shall be treated separatelyaccording to the following circumstances: (1) If the control over the financial asset is not retained, the financial asset shall bederecognized, and the rights and obligations arising from or retained in the transfer shall be separately recognized as assets orliabilities; (2) If the control over the financial assets is retained, the relevant financial assets shall be recognized according to thedegree of continued involvement in the transferred financial assets, and the relevant liabilities shall be recognized accordingly.
If the overall transfer of financial assets meets the conditions for derecognition, the difference between the following twoamounts shall be included in the current profits and losses: (1) The carrying amount of the transferred financial assets on the date ofderecognition; (2) The sum of the consideration received from the transfer of financial assets and the amount of the correspondingderecognized part of the cumulative amount of changes in fair value originally directly included in other comprehensive income (thefinancial assets involved in the transfer are debt instrument investments measured at fair value with changes included in othercomprehensive income). If a part of a financial asset is transferred and the transferred part as a whole meets the conditions forderecognition, the overall carrying amount of the financial asset before the transfer shall be apportioned between the derecognizedpart and the continuously recognized part according to their respective relative fair values on the transfer date, and the differencebetween the following two amounts shall be included in the current profits and losses: (1) The carrying amount of the derecognizedpart; (2) The sum of the consideration of the derecognized part and the amount of the derecognized part corresponding to thecumulative amount of changes in fair value originally directly included in other comprehensive income (the financial assets involved
in transfer are debt instrument investments measured at fair value with changes included in other comprehensive income).
4. Determination method of fair value of financial assets and financial liabilities
The Company adopts the valuation techniques that are applicable in the current situation and supported by sufficient availabledata and other information to determine the fair value of relevant financial assets and financial liabilities. The company divides theinput values used in the valuation techniques into the following levels and uses them in sequence:
(1) The input value of the first level is the unadjusted quotation of the same assets or liabilities that can be acquired on themeasurement date in the active market;
(2) The input value of the second level is the input value of relevant assets or liabilities directly or indirectly observable inaddition to the input value of the first level, including: the quotation of similar assets or liabilities in the active market; the quotationof the same or similar assets or liabilities in the inactive market; other observable input values other than the quotation, such as theobservable interest rate and yield curve during normal quotation interval; the input value for market validation, etc.;
(3) The input value of the third level is the unobservable input value of relevant assets or liabilities, including the interest ratesthat cannot be directly observed or verified by observable market data, stock volatility, future cash flow of retirement obligationsassumed in business combinations, financial forecasts made using their own data, etc.
5. Impairment of financial instruments
(1) Financial instrument impairment measurement and accounting treatment
On the basis of expected credit losses, the Company conducts impairment treatment based on expected credit losses andrecognizes loss reserves on the financial assets measured at amortized cost, debt instrument investments measured at fair value withchanges included in the other comprehensive income, contract assets, lease receivables, loan commitments classified other thanfinancial liabilities measured at fair value through profit or loss, and financial guarantee contracts that do not belong to financialliabilities measured at fair value through profit or loss, or financial liabilities formed by the transfer of financial assets that do notmeet the conditions for derecognition or continue to be involved in the transferred financial assets.
Expected credit loss refers to the weighted average value of credit losses of financial instruments weighted by the risk of default.Credit loss refers to the difference between all contract cash flows receivable under the contract and all cash flows expected to bereceived by the Company discounted at the original effective interest rate, that is, the present value of all cash shortages. Amongthem, the financial assets purchased or generated by the Company with credit impairment shall be discounted according to the actualinterest rate adjusted by the credit of the financial assets.
For the purchased or derived financial assets with credit impairment, the Company only recognizes the cumulative changes ofexpected credit loss in the whole duration since initial recognition as loss reserves on the balance sheet date.
For the receivables and contract assets formed by the transactions regulated in the “Accounting Standard for BusinessEnterprises No.14——Revenue" and excluding major financing components or the Company does not consider the financingcomponents in the contract not exceeding one year, the Company uses the simplified measurement method to measure the lossreserve according to the amount equivalent to the expected credit loss in the whole duration.
For lease receivables, receivables and contract assets formed by the transactions regulated by the "Accounting Standard forBusiness Enterprises No.14——Revenue" and containing major financing components, the Company uses the simplifiedmeasurement method to measure the loss reserve according to the amount equivalent to the expected credit loss in the wholeduration.
For financial assets other than the above measurement methods, the Company assesses whether its credit risk has increased
significantly since initial recognition on each balance sheet date. If the credit risk has increased significantly since initial recognition,the Company shall measure the loss reserve according to the amount of expected credit loss during the whole duration; If the creditrisk has not increased significantly after initial recognition, the Company shall measure the loss reserve according to the amount ofexpected credit loss of the financial instrument in the next 12 months.The Company makes use of available reasonable and well-grounded information, including forward-looking information, todetermine whether the credit risk of financial instruments has increased significantly since initial recognition by comparing the riskof default of financial instruments on the balance sheet date with the risk of default on the initial recognition date.On the balance sheet date, if the Company believes that the financial instrument has only low credit risk, it is assumed that thecredit risk of the financial instrument has not increased significantly since initial recognition.The Company assesses the expected credit risk and measures the expected credit loss on the basis of individual financialinstrument or a combination of financial instruments. When based on the combination of financial instruments, the Company dividesthe financial instruments into different combinations based on the common risk characteristics.The Company re-measures the expected credit loss on each balance sheet date, and the increase or reversal amount of the lossreserve formed thereby shall be included in the current profits and losses as impairment loss or gain. For the financial asset measuredat amortized cost, the loss reserve shall offset the carrying amount of this financial asset listed in the balance sheet; For the bondinvestment measured at fair value with changes included in other comprehensive income, the Company recognizes its loss reserve inother comprehensive income and does not deduct the carrying amount of this financial asset.
(2) Financial instruments for evaluating expected credit risk and measuring expected credit loss by mechanics
| Project | Basis to Determine the Portfolio | Methods of measuring expected credit loss |
| Other receivables——Export tax rebate receivable mechanics | Nature of the funds | With reference to the historical credit loss experience, combined with the current situation and the prediction of future economic conditions, the expected credit loss is calculated through the exposure at default and the expected credit loss rate in the next 12 months or the whole duration. |
| Other receivables——VAT refund receivable mechanics | ||
| Other receivables——Land bond receivable mechanics | ||
| Other receivables——Aging mechanics | Aging |
(3) Receivables and contract assets that measure expected credit loss by mechanics
1) Specific mechanics and methods of measuring expected credit loss
| Project | Basis to Determine the Portfolio | Methods of measuring expected credit loss |
| Bank acceptance bills receivable | Bill type | With reference to the historical credit loss experience, combined with the current situation and the prediction of future economic conditions, the expected credit loss is calculated through the exposure at default and the expected credit loss rate throughout the duration. |
| Trade acceptance receivable | ||
| Accounts receivable——Aging mechanics | Aging | With reference to the historical credit loss experience, combined with the current situation and the prediction of future economic conditions, the comparison table between the aging of accounts receivable and the expected credit loss rate throughout the duration is prepared, and the expected credit loss is calculated. |
2) Accounts receivable——The comparison table of the aging of aging mechanics and the expected credit loss rate in the wholeduration
| Aging | Expected credit loss rate of accounts receivable (%) |
| Within 1 year (including, the same below) | 5 |
| 1-2 years | 20 |
| 2-3 years | 80 |
| 3 years or above | 100 |
3) Accounts receivable with insignificant single amount but single provision for bad debts
| Reason for making bad debt provision individually | There is a significant difference between the present value of future cash flow of accounts receivable and the present value of future cash flow of accounts receivable mechanics with aging as credit risk characteristics |
| Method for bad debt provision | The impairment test shall be conducted separately, and the provision for bad debts shall be based on the difference between the present value of its future cash flow and its carrying amount |
6. Offset of financial assets and financial liabilities
Financial assets and financial liabilities are presented separately in the balance sheet and do not offset each other. However, ifthe following conditions are met at the same time, the Company shall present the net amount after offsetting each other in the balancesheet: (1) The company has the legitimate right to offset the recognized amount, and such legitimate right is currently enforceable; (2)The company plans to settle on a net basis, or realize the financial assets and settle the financial liabilities at the same time.
For the transfer of financial assets that do not meet the conditions for derecognition, the Company will not offset the transferredfinancial assets and related liabilities.
10. Inventories
1. Classification of inventories
Inventories include finished products or commodities held for sale in daily activities, products in the production process,materials and supplies consumed in the production process or the rendering of services, etc.
2. Pricing method for issuing inventories
(1) The weighted averages method at the end of the month is adopted for the inventory issued other than developed products
(2) During the development of the project, the apportionment of land for development shall be calculated according to the areacovered by developed products and included in the development cost of the project.
(3) The average building area method is adopted for accounting to issue similar developed products.
(4) If the public supporting facilities are completed earlier than the relevant developed products, after the final settlement of thecompletion of the public supporting facilities, it shall be included in the development costs of the relevant development projectsaccording to the budgeting absorption of costs of the relevant development projects; If the public supporting facilities are completedlater than the relevant developed products, relevant developed products shall first accrue the cost of public supporting facilities, andthe cost of relevant developed products shall be adjusted according to the difference between the actual amount and the accruedamount after the completion and final settlement of the public supporting facilities.
3. Basis for determining the net realizable value of inventories
On the balance sheet date, inventories are measured at the lower of cost and net realizable value, and inventory write downshall be accrued according to the difference between the cost of a single inventory and net realizable value. For the inventory directlyfor sale, its net realizable value shall be determined by the amount of the estimated selling price of the inventory minus the estimatedmarketing expenses and relevant taxes in the ordinary course of production and operation; For the inventory that needs to beprocessed, its net realizable value shall be determined by the estimated selling price of finished products minus the estimated cost tobe incurred at the time of completion, estimated marketing expenses and relevant taxes in the ordinary course of production andoperation process; On the balance sheet date, if there is a contract price agreement for some part of the same inventory and nocontract price for other parts, their net realizable values shall be determined respectively, and compared with their correspondingcosts to determine the accrued or reversed amount of inventory write down respectively.
4. Inventory system
The inventory system of inventories is perpetual inventory system.
5. Amortization method of low-value consumables and packaging
(1) Low-value consumables
Amortize in accordance with the one-off writing-off process.
(2) Packaging
Amortize in accordance with the one-off writing-off process.
11. Long-term equity investment
1. Criterion of joint control and significant influence
It is recognized as joint control if there is common control over an arrangement according to the relevant agreement, and therelevant activities of this arrangement can only be decided after the unanimous consent of the participants sharing control. It isrecognized as significant influence if have the right to participate in decision-making on the financial and operating policies of theinvestee, but not being able to control or jointly control the formulation of these policies with other parties.
2. Determination of investment cost
(1) For the business combination under the same control, when the combining party takes paying cash, transferring non-cashassets, bearing debts or issuing equity securities as the combination consideration, the share of the carrying amount of the owner'sequity of the combined party in the consolidated financial statements of the final controlling party on the combination date shall betaken as its initial investment cost. The capital reserve shall be adjusted according to the difference between the initial investmentcost of long-term equity investment and the carrying amount of the combination consideration paid or the total par value of the issuedshares; If the capital reserve is insufficient to offset, the retained earnings shall be adjusted.
The Company realizes the long-term equity investment arising from business combination under the same control step by stepthrough multiple transactions, and determine whether it is a "package deal". If it is a "package deal", each transaction shall beaccounted as a transaction that acquires control. If it is not a "package deal", on the combination date, the initial investment cost shallbe determined according to the share of the carrying amount of the net assets of the combined party in the consolidated financialstatements of the final controlling party. The capital reserve shall be adjusted as per the difference between the initial investment costof the long-term equity investment on the combination date and the sum of the carrying amount of the long-term equity investmentbefore the combination plus the carrying amount of the new payment of consideration for further shares on the combination date; If
the capital reserve is insufficient to offset, the retained earnings shall be adjusted.
(2) For the business combination not under the same control, the fair value of the combination consideration paid on theacquisition date shall be taken as its initial investment cost.
The Company realizes the long-term equity investment, step by step, arising from business combination not under the samecontrol through multiple transactions, and distinguishes individual financial statements from consolidated financial statements forrelevant accounting treatment:
1) In the individual financial statements, the sum of the carrying amount of the equity investment originally held plus the newinvestment cost is recognized as the initial investment cost calculated by cost method.
2) In the consolidated financial statements, determine whether it is a "package deal". If it is a "package deal", each transactionshall be accounted as a transaction that acquires control. If it is not a "package deal", the equity held by the acquiree before theacquisition date shall be re-measured according to the fair value of the equity on the acquisition date, the difference between the fairvalue and its carrying amount shall be included in the current investment income; If the equity held by the acquiree before theacquisition date involves other comprehensive income accounted by equity method, the relevant other comprehensive income shallbe transferred to the current income on the acquisition date. However, other comprehensive income arising from changes in the netliabilities or net assets of the defined benefit plan re-measured by the investee is excluded.
(3) Except for those arising from business combination: If it is acquired by paying cash, the purchase price actually paid shallbe recognized as its initial investment cost; If it is acquired by issuing equity securities, fair value of the issued equity securities shallbe recognized as its initial investment cost; If it is acquired through debt restructuring, its initial investment cost shall be determinedin accordance with the "Accounting Standard for Business Enterprises No.12——Debt Restructuring"; If it is acquired byexchanging the non-monetary assets, its initial investment cost shall be determined in accordance with the "Accounting Standard forEnterprises No.7——Exchange of Non-monetary Assets".
3. Subsequent measurement and methods for profit and loss recognition
The long-term equity investment controlled by the investee shall be accounted by the cost method; The long-term equityinvestment of associates and joint ventures shall be accounted for by the equity method.
4. Disposal of investment in subsidiaries through multiple transactions step by step until loss of right of control
(1) Individual financial statements
For the disposed equity, the difference between its carrying amount and the actually acquired price shall be included in thecurrent profits and losses. For the residual equity, if it still has a significant influence on the investee or implements joint control withother parties, it shall be accounted by equity method; Where it can no longer exercise control, jointly control or exert significantinfluence on the investee, it shall be accounted in accordance with the relevant provisions of the "Accounting Standard for BusinessEnterprises No.22——Recognition and Measurement of Financial Instruments".
(2) Consolidated financial statements
1) Where the investment in subsidiaries through multiple transactions is processed step by step until loss of control, and it's nota "package deal",
before the loss of right of control, the capital reserve (capital premium) shall be adjusted according to the difference betweenthe disposal price and the share of net assets of the subsidiary continuously calculated from the acquisition date or combination datecorresponding to the disposal of long-term equity investment. If the capital premium is insufficient to offset, the retained earningsshall be offset.
When the control over the subsidiary company is lost, the remaining equity shall be remeasured according to its fair value onthe date of loss of right control. The difference between the sum of the consideration acquired from the disposal of equity and the fairvalue of the remaining equity minus the share of the net assets of the original subsidiary continuously calculated from the acquisitiondate or the combination date according to the original shareholding ratio shall be included in the current investment income when theright of control is lost, and meanwhile the goodwill shall be offset. Other comprehensive income related to the equity investment ofthe original subsidiary shall be transferred to the current investment income when the right of control is lost.
2) Where the investment in subsidiaries through multiple transactions is processed step by step until loss of control, and it's nota "package deal",
each transaction shall be accounted as the transaction in which the investment in subsidiaries is disposed and the right ofcontrol is lost. However, before the loss of right of control, the difference between each disposal price and the share of net assets ofthe subsidiary corresponding to the disposal of investment shall be recognized as other comprehensive income in the consolidatedfinancial statements, and shall be transferred to the current profits and losses when the control is lost.
12. Fixed assets
(1) Conditions for recognition of fixed assets
Fixed assets refer to the tangible assets held for the production of commodities, rendering of services, lease or operation andmanagement with the service life of more than one fiscal year. Fixed assets shall be recognized when economic benefits are likely toflow in and costs can be measured reliably at the same time.
(2) Methods for depreciation
| Category | Depreciation method | Useful lives of depreciation | Residual Ratio | Annual depreciation rate |
| Housing and building | Straight-line method | 7-35 | 5 | 13.57-2.71 |
| Universal equipment | Straight-line method | 5-10 | 5 | 19.00-9.50 |
| Special equipment | Straight-line method | 5-15 | 5 | 19.00-6.33 |
| Means of transport | Straight-line method | 5-7 | 5 | 19.00-13.57 |
13. Construction in progress
1. The construction in progress shall be recognized when economic benefits are likely to flow in and costs can be measuredreliably at the same time. Construction in progress shall be measured at the actual cost incurred before the asset is ready for itsintended use.
2. When the construction in progress is ready for the intended use, it shall be transferred into fixed assets at actual cost of theproject. When it is ready for the intended use but the final accounting of completion has not been settled, it shall be transferred intofixed assets at the estimated value. After the final accounting of completion is settled, the original estimated value shall be adjustedaccording to the actual cost, but the originally accrued depreciation shall not be adjusted.
14. Borrowing costs
1. Recognition principle of capitalization of borrowing costs
Where the borrowing costs incurred by the Company can be directly attributed to the acquisition, construction or production ofassets eligible for capitalization shall be capitalized and included in the cost of relevant assets; Other borrowing costs, if recognizedas expenses when incurred, shall be included in the current profits and losses.
2. Period of capitalization of borrowing costs
(1) When the borrowing costs meet the following conditions at the same time, capitalization starts: 1) Asset expenditure hasincurred; 2) Borrowing costs have incurred; 3) The acquisition and construction or production activities necessary to make the assetsready for intended use or sale have started.
(2) If the assets eligible for capitalization are abnormally interrupted in the process of acquisition, construction or production,and the interruption period exceeds 3 consecutive months, the capitalization of borrowing costs shall be suspended; The borrowingcosts incurred during the interruption are recognized as current expenses until the acquisition and construction or productionactivities of the assets restart.
(3) The capitalization of borrowing costs shall stop when the assets under acquisition, construction or production are ready forthe intended use or sale.
3. Capitalization rate and capitalization amount of borrowing cost
If a special loan is borrowed for the acquisition and construction or production of assets eligible for capitalization, the interestamount shall be recognized by the interest expense actually incurred in the current period of the special loan (including theamortization of discount or premium determined according to the effective interest rate method) minus the interest income acquiredby depositing the unused loan funds into the bank or the investment income acquired from temporary investment; If a general loan isoccupied for the acquisition and construction or production of assets eligible for capitalization, the amount of interest to becapitalized on the general loan shall be calculated and determined according to the weighted average of the accumulative assetexpenditure exceeding the asset expenditure of the special loan multiplied by the capitalization rate of the occupied general loan.
15. The assets of right to use
1. Conditions for recognizing the assets of right to use
The assets of right to use refer to the right of the company as the lessee to use the leased assets during the lease term. TheCompany recognizes the assets of right to use to the lease on the commencement of the lease term. The assets of right to use shall berecognized when there is possible inflow of economic benefits and the costs can be reliably measured at the same time.
2. Initial measurement of the assets of right to use
The assets of right to use are initially measured at cost, which includes: (1) Initial measurement amount of lease liabilities; (2)For the lease payment paid on or before the commencement of the lease term, if there are lease incentives, the relevant amount oflease incentives enjoyed shall be deducted; (3) initial direct costs incurred by the lessee; (4) The estimated cost incurred by the lesseefor dismantling and removing the leased asset, restoring the site where the leased asset is located or restoring the leased asset to thestate agreed in the lease terms.
3. Subsequent measurement of the assets of right to use
(1) The Company adopts the cost model for subsequent measurement of the assets of right to use.
(2) The Company depreciates the assets of right to use. If it can be reasonably recognized that the title of the leased asset isacquired at the expiration of the lease term, the Company shall accrue depreciation within the remaining service life of the leasedasset. If it cannot be reasonably recognized that the title of the leased asset is acquired at the expiration of the lease term, theCompany shall accrue depreciation within the shorter of the lease term and the remaining service life of the leased asset. The specificdepreciation methods of various assets of right to use are as follows:：
| Category | Depreciation method | Depreciation period (years) | Residual rate(%) | Annual depreciation rate (%) |
| Housing and building | Straight-line method | 7-35 | 5 | 13.57-2.71 |
| Universal equipment | Straight-line method | 5-10 | 5 | 19.00-9.50 |
| Special equipment | Straight-line method | 5-15 | 5 | 19.00-6.33 |
| Means of transport | Straight-line method | 5-7 | 5 | 19.00-13.57 |
(3) When the company remeasures the lease liability according to the present value of the changed lease payment and adjuststhe carrying amount of the assets of right to use accordingly, if the carrying amount of the assets of right to use has been reduced tozero, but the lease liability still needs to be further reduced, the remaining amount shall be included in the current profits and losses.
(4) On the balance sheet date, if there is any indication that the assets of right to use are impaired, the correspondingimpairment provision shall be made according to the difference between the carrying amount and the recoverable amount.
16. Intangible assets
(1) Valuation method, service life, impairment test
1. Intangible assets, including the land use right, patent right and non-patent technology, are initially measured at cost.
2. The intangible asset with limited service life shall be amortized systematically and reasonably according to the expectedrealization mode of economic benefits related to this intangible asset within the service life. If the expected realization mode cannotbe recognized reliably, the straight-line method shall be used for amortization. The specific years are as follows:
| Project | Amortization period (years) |
| Land use rights | 50、70 |
| Softwares | 10 |
| Patent right | 10 |
| Non-patented technology | 15 |
(2) Accounting policy for internal R&D expenditure
The expenditures in the research stage of internal research and development projects shall be included in the current profits andlosses when incurred. Expenditures in the internal research and development projects at development stage shall be recognized asintangible assets if the following conditions are met : (1) Complete the intangible asset to make it available for use or sale technically;
(2) Have the intention to complete the intangible asset and use or sell it; (3) The ways in which the intangible assets generateeconomic benefits, including the ability to prove the existence of a market for the products produced by using the intangible asset or
the intangible asset itself, the usefulness of the intangible asset can be proved if it is internally used; (4) There are sufficient technical,financial and other resources to support the development of the intangible asset and have the ability to use or sell the intangible asset;
(5) The expenditures for the intangible asset at development stage can be measured reliably.
17. Impairment of long-term assets
For the long-term assets such as long-term equity investment, fixed assets, construction in progress and intangible assets withlimited service life, if there is any indication of impairment on the balance sheet date, the recoverable amount shall be estimated. Forthe goodwill arising from business combination and intangible assets with uncertain service life, impairment test shall be conductedevery year, regardless of whether there are signs of impairment or not. Goodwill is tested for impairment in combination with itsrelated asset group or combination of asset groups.If the recoverable amount of the above long-term assets is lower than its carrying amount, the asset impairment provision shallbe recognized according to the difference and included in the current profits and losses.
18. Long-term deferred expenses
Long-term deferred expenses refer to the expenses that have been paid by the enterprise with the amortization period of morethan 1 year (excluding 1 year). Long-term deferred expenses shall be recorded according to the actual amount incurred and amortizedevenly by stages during the benefit period or within the specified period. If the long-term deferred expense item will not benefit thefuture accounting period, all the amortized value of the item that has not been amortized shall be transferred to the current profits andlosses.
19. Contract liabilities
The Company lists contract assets or contract liabilities in the balance sheet according to the relationship between performanceobligations and customer payments. The Company shall present the net amount after offsetting the contract assets against contractliabilities under the same contract. The Company lists the obligation to transfer commodities to customers for the considerationreceived or receivable from customers as contract liabilities.
20. Employee compensation
(1) Accountant arrangement method of short-term remuneration
In the accounting period during which employees provide services to the company, the short-term compensation actuallyincurred shall be recognized as liabilities and included in the current profits and losses or relevant asset costs.
(2) Accountant arrangement method of retirement benefit plan
Post-employment benefits are divided into defined contribution plans and defined benefit plans.
(1) In the accounting period during which employees provide services to the company, the amount payable calculated accordingto the defined contribution plan is recognized as liabilities and included in the current profits and losses or relevant asset costs.
(2) The accounting treatment of defined benefit plans usually includes the following steps:
1) According to the expected accumulative welfare unit method, unbiased and consistent actuarial assumptions are applied toestimate demographic variables and financial variables, measure the obligations arising from the defined benefit plan, and recognizethe period of relevant obligations. Meanwhile, the obligations arising from the defined benefit plan shall be discounted in order todetermine the present value and current service costs of the obligations thereof;
2) If there are assets in the defined benefit plan, the deficit or surplus arising from the present value of the defined benefit planobligations minus the fair value of the assets of the defined benefit plan shall be recognized as the net liabilities or net assets of onedefined benefit plan. If there is a surplus in the defined benefit plan, the net assets of the defined benefit plan shall be measuredaccording to the lower of the surplus of the defined benefit plan and the upper limit of assets;
3) At the end of term, the employee compensation cost arising from the defined benefit plan will be recognized as the servicecost, the net interest on the net liabilities or net assets of the defined benefit plan, and the changes arising from the remeasurement ofthe net liabilities or net assets of the defined benefit plan, among which the service cost and the net interest on the net liabilities or netassets of the defined benefit plan are included in the current profits and losses or relevant asset costs, the changes arising fromremeasurement of net liabilities or net assets of defined benefit plans are included in other comprehensive income, and are notallowed to be reversed to profits or losses in the subsequent accounting periods, but these amounts recognized in othercomprehensive income can be transferred within the scope of equity.
(3) Accountant arrangement method of termination benefits
For the dismissal welfare provided to employees, the employee compensation liabilities arising from the dismissal welfare shallbe determined at the earliest of the following two, and included in the current profits and losses: (1) When the company cannotunilaterally withdraw the dismissal welfare provided due to the termination of labor relations plan or layoff proposal; (2) When thecompany determines the costs or expenses associated with the restructuring involving the payment of dismissal welfare.
(4) Accountant arrangement method of other long-term employee benefits
Other long-term welfare provided to employees, if meets the conditions of the defined contribution plan, shall be accounted forin accordance with relevant provisions of the defined contribution plan; other long-term welfare shall be accounted for in accordancewith relevant provisions of the defined benefit plan. In order to simplify the relevant accounting treatment, the employeecompensation cost incurred is recognized as the service cost, the net interest of the net liabilities or net assets of other long-termemployee welfare, and the total net amount of changes arising from remeasuring the net liabilities or net assets of other long-termemployee welfare is included in the current profits and losses or relevant asset costs.
21. Lease liabilities
Lease liabilities shall be initially measured at the present value of the unpaid lease payments on the commencement date of thelease term. Lease liabilities are usually listed in the illiquid liabilities and illiquid liabilities due within one year.
When calculating the present value of the lease payment, the lessee shall adopt the interest rate implicit in lease as the discountrate; If the interest rate implicit in lease cannot be recognized, the lessee's interest rate on incremental Loan shall be applied as thediscount rate. The interest rate implicit in lease refers to the interest rate that makes the sum of the present value of the lessor's lease
receipts and the present value of the unguaranteed residual value equal to the sum of the fair value of the leased asset and the lessor'sinitial direct costs. The lessee's interest rate on incremental Loan refers to the interest rate that the lessee must pay to borrow moneywith similar mortgage conditions during similar periods in order to acquire assets close to the value of the assets of right to use in thesimilar economic environment.In the subsequent measurement, the lessee shall calculate the interest expense of the lease liability during each period of thelease term at a fixed periodic interest rate (i.e. the discount rate) and include it in the current profits and losses.
22. Revenue
Accounting policies for revenue recognition and measurement
1. Revenue recognition principle
On the commencement of the contract, the Company evaluates the contract to identify each individual performance obligationcontained in the contract, and determines whether each individual performance obligation is performed within a certain period oftime or at a certain point of time.When one of the following conditions is met, it belongs to the performance obligation within a certain period of time, otherwiseit belongs to the performance obligation at a certain point of time: (1) The customer acquires and consumes the economic benefitsarising from the Company's performance while the company performs the contract; (2) The customer can control the commodities inprogress during the Company's performance; (3) The commodities produced by the Company during the performance possessirreplaceable usage, and the company has the right to collect payment for the performance part accumulated so far during the wholecontract period.For the performance obligations performed within a certain period of time, the Company shall recognize the revenue accordingto the performance progress within that period of time. If the performance progress cannot be reasonably recognized and the costsincurred are expected to be compensated, the revenue shall be recognized according to the amount of costs incurred until theperformance progress can be reasonably recognized. For the performance obligations performed at a certain point of time, revenueshall be recognized when the customer acquires the right of control over relevant commodities or services. While determiningwhether the customer has acquired the right of control over the commodities, the Company shall take the followings intoconsideration: (1) The Company has the current collection right for the commodity, that is, the customer has the current paymentobligation for the commodity; (2) The Company has transferred the legal title of the commodity to the customer, that is, the customeralready has the legal title of the commodity; (3) The Company has transferred the physical commodity to the customer, that is, thecustomer has possessed the physical commodity; (4) The Company has transferred the major risks and rewards of the commoditytitle to the customer, that is, the customer has acquired the major risks and rewards of the commodity title; (5) The customer hasaccepted the commodity; (6) other signs indicating that the customer has acquired the right of control over the commodity.
2. Revenue measurement principle
(1) The Company measures the revenue according to the transaction price apportioned to each individual performanceobligation. The transaction price refers to the amount of consideration that the company is expected to be entitled to collect due to thetransfer of commodities or services to customers, excluding the payments collected on behalf of third parties and the paymentsexpected to be returned to customers.
(2) Where there is variable consideration in the contract, the Company shall determine the best estimate of the variableconsideration according to the expected value or the amount most likely to occur, but the transaction price including the variable
consideration shall not exceed the amount by which the accumulative recognized revenue is much more unlikely to be significantlyreversed when relevant uncertainties are eliminated.
(3) If there are major financing components in the contract, the Company shall determine the transaction price according to theamount due assumed to be paid in cash when the customer acquires the right of control over the commodities or services. Thedifference between this transaction price and the contract consideration shall be amortized by the effective interest rate methodduring the contract period. On the commencement of the contract, if the Company expects that the interval between the customer'sacquisition of right of control over the commodities or services and the customer's payment of the price will not exceed one year, themajor financing components in the contract will not be taken into consideration.
(4) If the contract contains two or more performance obligations, the Company shall apportion the transaction price to eachindividual performance obligation on the contract commencement date according to the relative proportion of the individual sellingprice of the commodities promised by each individual performance obligation.
3. Specific methods of revenue recognition
(1) Revenue from product sales
The Company mainly sells nutriment, flavor and fragrance, and polymer new materials, etc. The sales of products areperformance obligations at a certain point of time. The recognition of domestic product revenue shall meet the following conditions:
The Company has delivered the products to customers according to the contract, collected the payment or acquired the right ofcollection, and the relevant economic benefits are very likely to flow in. The recognition of the revenue of products for export shallmeet the following conditions: The Company has declared the products at the customs according to the contract, acquired the bill oflading, collected the payment or acquired the right of collection, and the relevant economic benefits are very likely to flow in.
(2) Revenue from real estate sales
Real estate sales are performance obligations performed at a certain point of time. Revenue recognition shall meet thefollowing conditions: The Company has delivered the products to customers according to the contract, customers have signed thedelivery note, collected the payment or acquired the right of collection, and the relevant economic benefits are very likely to flow in.
23. Government grants
1. Government grants shall be recognized when the following conditions are met at the same time: (1) The Company can meetthe conditions attached to government grants; (2) The Company can receive government grants. If the government grant is amonetary asset, it shall be measured at the amount received or receivable. If the government grant is a non-monetary asset, it shall bemeasured at the fair value; If the fair value cannot be obtained reliably, it shall be measured at the nominal amount.
2. Determination basis and accounting treatment method of government grants related to assets
According to government documents, government grants applied for the acquisition and construction or the formation oflong-term assets in other ways shall be classified as the government grants related to assets. If there is no clear stipulation in thegovernment documents, the judgment shall be based on the basic conditions necessary for acquiring the grant, and the governmentgrants related to assets shall be based on the formation of long-term assets by acquisition and construction or other means.Government grants related to assets shall offset the carrying amount of relevant assets or be recognized as deferred income. If thegovernment grants related to assets are recognized as deferred income, they shall be included in profits and losses by stages in areasonable and systematic manner during their service life. Government grants measured in nominal amount shall be directlyincluded in the current profits and losses. If relevant assets are sold, transferred, scrapped or damaged before the end of their service
life, the non-allocated balance of relevant deferred income shall be transferred to the current profits and losses of the disposal ofassets.
3. Determination basis and accounting treatment method of government grants related to incomeGovernment grants other than those related to assets shall be classified as government grants related to income. For thegovernment grants that contain both asset-related and income-related parts, if it is difficult to make a distinction betweenasset-related and income-related government grants, they shall be classified as income-related government subsidies as a whole.Where the government grants related to income are applied to compensate relevant costs or losses in subsequent periods, it shall berecognized as deferred income and included in the current profits and losses or offset relevant costs during the period when relevantcosts or losses are recognized; If it is used to compensate the relevant costs or losses incurred, it shall be directly included in thecurrent profits and losses or offset the relevant costs.
4. Government grants related to the Company's daily business activities shall be included in other income or offset related costsaccording to the essence of economic business. Government grants unrelated to the Company's daily activities shall be included inthe non-operating income.
5. Accounting treatment method of policy-oriented concessional loan discount interest
(1) Where the finance allocates the discount interest funds to the lending bank, and the lending bank provides loans to theCompany at the policy preferential interest rate, the actually received loan amount shall be taken as the entry value of the loan, andthe relevant borrowing costs shall be calculated according to the loan principal and the policy preferential interest rate.
(2) If the finance directly allocates the discount interest funds to the Company, the corresponding discount interest shall offsetthe relevant borrowing costs.
24. Deferred income tax assets / deferred income tax liabilities
1. According to the difference between the carrying amount of assets and liabilities and their tax base (if the tax base of the itemis not recognized as the asset and liability can be determined according to the tax law, the difference between the tax base and itscarrying amount), the deferred income tax assets or deferred income tax liabilities are calculated and recognized according to theapplicable tax rate during the expected recovery of the assets or settlement of the liabilities.
2. The recognition of deferred income tax assets is limited to the taxable income that is very likely to be acquired to offset thedeductible temporary differences. On the balance sheet date, if there is conclusive evidence indicating that sufficient taxable incomeis likely to be obtained in the future to offset the deductible temporary differences, the unrecognized deferred income tax assets in theprevious accounting periods shall be recognized.
3. On the balance sheet date, the carrying amount of deferred income tax assets shall be reviewed. If no sufficient taxableincome is likely to be obtained to offset the benefits of deferred income tax assets in the future, the carrying amount of deferredincome tax assets shall be written down. The amount written down shall be reversed when it is likely to obtain sufficient taxableincome.
4. The current income tax and deferred income tax of the Company shall be included in the current profits and losses as incometax expenses or income, but excluding the income tax generated under the following circumstances: (1) Business combination; (2)Transactions or items directly recognized in the owner's equity.
25. Leases
1. The Company as a lessee
On the commencement date of lease, the Company recognizes the lease of no more than 12 months and excluding the call optionas a short-term lease; When a single leased asset is brand-new, the lease of lower value is recognized as a low-value asset lease. If theCompany sublets or is expected to sublet the leased assets, the original lease shall not be recognized as the low-value asset lease.For all the short-term leases and low-value asset leases, the Company shall record the lease payment amount into the relevant assetcosts or current profits and losses according to the straight-line method / workload method in each period of the lease term.In addition to the above short-term leases and low-value asset leases with simplified treatment, the Company recognizes theright-of-use assets and lease liabilities for the lease on the commencement date of lease.
(1) Right-of-use assets
The right-of-use assets are initially measured at cost, which includes: 1) The initial measurement amount of lease liabilities; 2)For the lease payment paid on or before the commencement of the lease, if there is a lease incentive, the relevant amount of the leaseincentive enjoyed shall be deducted; 3) Initial direct costs incurred by the lessee; 4) The estimated costs incurred by the lessee fordismantling and removing the leased asset, restoring the site where the leased asset is located or restoring the leased asset to the stateagreed in the lease terms.The Company depreciates the right-of-use assets according to the straight-line method / workload method. If it can be reasonablyrecognized that the title of the leased asset is acquired at the expiration of the lease term, the Company shall accrue depreciationwithin the remaining service life of the leased asset. If it cannot be reasonably recognized that the title of the leased asset is acquiredat the expiration of the lease term, the Company shall accrue depreciation within the shorter of the lease term and the remainingservice life of the leased asset.
(2) Lease liabilities
On commencement date of the lease, the Company recognizes the present value of the unpaid lease payments as lease liabilities.The interest rate implicit in lease is applied as the discount rate when calculating the present value of lease payments. If the interestrate implicit in lease cannot be determined, the Company's incremental loan interest rate is applied as the discount rate. Thedifference between the lease payment amount and its present value shall be regarded as the unrecognized financing expense, and theinterest expense shall be recognized according to the discount rate of the present value of the lease payment amount during eachperiod of the lease term and included in the current profits and losses. The variable lease payment which is not included in themeasurement of lease liabilities shall be included in the current profits and losses when actually incurred.After the commencement of the lease, when there are changes in the actual fixed payment, the estimated payable amount ofguarantee residual value, the index or ratio applied to determine the amount of lease payments, the evaluation results or actualexercise of the call option, renewal option or termination option, the Company remeasures the lease liability according to the presentvalue of the changed lease payment, and accordingly adjusts the carrying amount of the right-of-use asset. If the carrying amount ofthe right-of-use asset has been reduced to zero, but the lease liability still need to be further reduced, the remaining amount shall beincluded in the current profits and losses.
2. The Company as a lessor
On the commencement date of the lease, the Company classifies the leases that have substantially transferred almost all the risksand rewards related to the title of the leased assets as finance leases, and all other leases are operating leases.
(1) Operating leases
The Company recognizes the lease receipts as rental income according to the straight-line method / workload method duringeach period of the lease term, capitalizes the initial direct expenses incurred, apportions them on the same basis as the recognition ofrental income, and includes them into the current profits and losses by stages. The Company's variable lease payments related tooperating leases that are not included in the lease receipts shall be included in the current profits and losses when they actually occur.
(2) Finance leases
On the commencement date of lease, the Company recognizes the financial lease receivables according to the net leaseinvestment (the sum of the unguaranteed residual value and the present value of the unreceived lease receipts discounted according tothe interest rate implicit in the lease on the commencement date of the lease), and terminates the recognition of the financial leaseassets. During each period of the lease term, the Company calculates and recognizes interest income according to the interest rateimplicit in lease.
The Company's variable lease payments that are not included in the measurement of the net lease investment shall be includedin the current profits and losses when they actually occur.
3. Sale and leaseback
(1) The Company as a lessee
The Company evaluates and determines whether the asset transfer in the sale and leaseback transaction belongs to a sale inaccordance with the provisions of the Accounting Standard for Business Enterprises No. 14——Revenue.
If the asset transfer in the sale and leaseback transaction is a sale, the Company shall measure the right-of-use asset arising fromthe sale and leaseback according to the part related to the right of use acquired from the leaseback in the original carrying amount ofthe asset, and only recognize relevant gains or losses on the rights transferred to the lessor.
If the asset transfer in the sale and leaseback transaction is not a sale, the Company shall continue to recognize the transferredasset, and recognize a financial liability equal to the transfer income, and account for this financial liability in accordance with theAccounting Standard for Business Enterprises No. 22——Recognition and Measurement of Financial Instruments.
(2) The Company as a lessor
The Company evaluates and determines whether the asset transfer in the sale and leaseback transaction belongs to a sale inaccordance with the provisions of the Accounting Standard for Business Enterprises No. 14——Revenue.
If the asset transfer in the sale and leaseback transaction is a sale, the Company shall account for the asset acquisition inaccordance with other applicable accounting standards for business enterprises, and account for the asset lease in accordance with theAccounting Standard for Business Enterprises No. 21——Lease.
If the asset transfer in the sale and leaseback transaction is not a sale, the Company shall not recognize the transferred asset, butrecognize a financial liability equal to the transfer income, and account for this financial liability in accordance with the AccountingStandard for Business Enterprises No. 22——Recognition and Measurement of Financial Instruments.
26. Safety production expenses
The safety production expenses withdrawn by the Company in accordance with the measures for the Administration of theExtraction and Use of Enterprise Safety Production Expenses (CQ [2012] No.16) jointly issued by the Ministry of Finance and the
State Administration of Work Safety shall be included in the costs of relevant products or current profits and losses, and also recordedin the "special reserve" subject. When using the drawn safety production expense, if it is the expense expenditure, it shall directlyoffset against the special reserve. For the fixed assets developed, the incurred expenses collected through the "construction inprogress" shall be recognized as the fixed assets when the safety project is completed and ready for the expected use; Meanwhile, thespecial reserve shall be offset according to the cost of fixed asset development, and the accumulative depreciation of the sameamount is recognized, this fixed asset shall not be depreciated in the subsequent periods.
27. Segmental report
The Company determines the Operation Subsection according to the internal organization structure, management requirements,internal reporting system, etc. The Operation Subsection of the Company refers to the constituent parts that can fulfill all thefollowing conditions:
1. This component can generate revenue and expenses in daily activities;
2. The management can regularly evaluate the operating performance of this component to decide resource allocation to it andevaluate its performance;
3. Relevant accounting information such as financial status, operating performance and cash flow of the component can beacquired through analysis.
28. Change in Significant Accounting Policies and Accounting Estimates
(1) Changes in significant accounting policies
√ Applicable □ Not applicable
| Content of and Reasons for the Change in Accounting Policies | Approval Process | Remarks |
| As of January 1, 2021, the Company has implemented Accounting Standards for Enterprises No.21 – Leases (hereinafter referred to as "new lease criteria") revised by the Ministry of Finance. According to the regulations on transition from the old criteria to the new, no information is adjusted in the comparable periods. Retroactive adjustment on retained earnings at the beginning of the reporting period and amount of other related item in the financial statements shall be made due to the cumulative impact of the new lease criteria implemented on the first execution date. | Not applicable. | For details, see the Announcement No. 2021-027 published on http://www.cninfo.com.cn on August 20, 2021. |
The new lease criteria have the following main effects on the financial statements of the Company on January 1, 2021.
| Affected Assets and Liabilities | December 31, 2020 | January 1, 2021 | ||
| Consolidated Subsidiaries | Parent Company | Consolidated Subsidiaries | Parent Company | |
| Right-of-use assets | 3,604,870.23 | 3,303,921.56 | ||
| Lease liabilities | 3,604,870.23 | 3,303,921.56 |
The Company has implemented Accounting Standards for Enterprises No.14 – Revenue (hereinafter referred to as "new incomestandards") revised by the Ministry of Finance since January 1, 2020. Through which the fees incurred from performance ofobligations hereunder are included in operating cost. The new income standards has the following main effects on the financialstatements of the Company for the first half of 2021:
| Affected Income Statement Items | The amount of income statement affected from January, to June, 2021 | |
| Consolidated Subsidiaries | Parent Company | |
| Operating cost | 173,980,054.97 | 4,952,821.40 |
| Sales expenses | -173,980,054.97 | -4,952,821.40 |
(2) Changes in significant accounting estimates
□ Applicable √ Not applicable
(3) The first implementation of new lease criteria from 2021 to adjust the relevant items of the financialstatements implemented at the beginning of the year for the first timeApplicable.Whether the accounts of the balance sheet at the beginning of the year shall be adjusted
√ Yes □ No
Consolidated Balance Sheet
Unit: RMB
| Item | December 31, 2020 | January 1, 2021 | Adjusted amount |
| Current Assets: | |||
| Cash and Bank Balances | 4,927,657,236.24 | 4,927,657,236.24 | |
| Deposit Reservation for Balance | |||
| Loans to Banks and Other Financial Institutions | |||
| Trading Financial Assets | 852,227,964.70 | 852,227,964.70 | |
| Derivative Financial Assets | |||
| Notes receivable | 332,064,366.59 | 332,064,366.59 | |
| Accounts receivable | 1,930,930,930.01 | 1,930,930,930.01 | |
| Receivables Financing | 295,393,346.17 | 295,393,346.17 | |
| Prepayments | 116,063,557.59 | 116,063,557.59 |
| Item | December 31, 2020 | January 1, 2021 | Adjusted amount |
| Premium Receivable | |||
| Reinsurance Accounts Receivable | |||
| Reinsurance Contract Reserves Receivable | |||
| Other Receivables | 178,610,951.64 | 178,610,951.64 | |
| Including: interest receivable | |||
| Dividends Receivable | |||
| Buying Back the Sale of Financial Assets | |||
| Inventories | 3,117,042,558.78 | 3,117,042,558.78 | |
| Contract Assets | |||
| Holding for-sale assets | |||
| Non-current Assets Due within 1 Year | |||
| Other Current Assets | 1,777,569,473.96 | 1,777,569,473.96 | |
| Subtotal of Current Assets | 13,527,560,385.68 | 13,527,560,385.68 | |
| Non-current Assets: | |||
| Granting of loans and advances | |||
| Investment in Creditor's Rights | |||
| Investment in Other Creditor's Rights | |||
| Long-term Receivables | |||
| Long-term Equity Investment | 343,378,891.18 | 343,378,891.18 | |
| Investment in Other Equity Instruments | 22,998,147.55 | 22,998,147.55 | |
| Other Non-current Financial Assets | |||
| Investment Property |
| Item | December 31, 2020 | January 1, 2021 | Adjusted amount |
| Fixed Assets | 13,914,151,215.54 | 13,914,151,215.54 | |
| Construction in progress | 1,325,545,420.56 | 1,325,545,420.56 | |
| Productive Biological Assets | |||
| Oil and gas assets | |||
| Right-of-use Assets | 3,604,870.23 | 3,604,870.23 | |
| Intangible Assets | 1,407,067,129.87 | 1,407,067,129.87 | |
| Development Expenditure | |||
| Goodwill | |||
| Long-term Deferred Expenses | 13,369,412.48 | 13,369,412.48 | |
| Deferred Income Tax Assets | 65,143,706.00 | 65,143,706.00 | |
| Other Non-current Assets | 277,793,490.68 | 277,793,490.68 | |
| Subtotal of Non-current Assets | 17,369,447,413.86 | 17,373,052,284.09 | 3,604,870.23 |
| Total Assets | 30,897,007,799.54 | 30,900,612,669.77 | 3,604,870.23 |
| Current Liabilities: | |||
| Short-term Borrowings | 2,363,525,192.53 | 2,363,525,192.53 | |
| Loan from the Central Bank | |||
| Loan from Banks and Other Financial Institutions | |||
| Transactional financial liabilities | |||
| Derivative Financial Liabilities | |||
| Notes Payable | 497,644,517.23 | 497,644,517.23 | |
| Accounts Payable | 1,463,728,316.04 | 1,463,728,316.04 | |
| Received Prepayments | |||
| Contract liabilities | 56,302,537.11 | 56,302,537.11 | |
| Financial Assets Sold for Repurchase |
| Item | December 31, 2020 | January 1, 2021 | Adjusted amount |
| Deposit Taking and Interbank Deposit | |||
| Receiving from Vicariously Traded Securities | |||
| Receiving from Vicariously Sold Securities | |||
| Payroll payable | 322,646,061.45 | 322,646,061.45 | |
| Tax Payable | 268,864,472.38 | 268,864,472.38 | |
| Other Payables | 129,839,228.89 | 129,839,228.89 | |
| Including: interest payable | |||
| Dividends Payable | |||
| Service Charge and Commission Payable | |||
| Reinsurance Accounts Payable | |||
| Holding for-sale liabilities | |||
| Non-current Liabilities Due within 1 Year | 1,275,888,293.32 | 1,275,888,293.32 | |
| Other Current Liabilities | 4,956,463.49 | 4,956,463.49 | |
| Subtotal of Current Liabilities | 6,383,395,082.44 | 6,383,395,082.44 | |
| Non-current Liabilities: | |||
| Insurance Contract Reserves | |||
| Long-term Borrowings | 4,136,875,354.33 | 4,136,875,354.33 | |
| Bonds Payable | |||
| Including: Preferred Stocks | |||
| Perpetual Bonds |
| Item | December 31, 2020 | January 1, 2021 | Adjusted amount |
| Lease Liabilities | 3,604,870.23 | 3,604,870.23 | |
| Long-term Payables | |||
| Long-term payroll payable | |||
| Expected Liabilities | |||
| Deferred Income | 873,066,181.34 | 873,066,181.34 | |
| Deferred Income Tax Liabilities | 99,839,731.45 | 99,839,731.45 | |
| Other Non-current Liabilities | |||
| Subtotal of Non-current Liabilities | 5,109,781,267.12 | 5,113,386,137.35 | 3,604,870.23 |
| Total Liabilities | 11,493,176,349.56 | 11,496,781,219.79 | 3,604,870.23 |
| Shareholders' Equity: | |||
| Share Capital | 2,148,662,300.00 | 2,148,662,300.00 | |
| Other Equity Instruments | |||
| Including: Preferred Stocks | |||
| Perpetual Bonds | |||
| Capital Reserves | 4,560,522,556.84 | 4,560,522,556.84 | |
| Less: Treasury Share | |||
| Other Comprehensive Incomes | 27,803,829.31 | 27,803,829.31 | |
| Special Reserves | 9,550,346.85 | 9,550,346.85 | |
| Surplus Reserves | 1,074,331,150.00 | 1,074,331,150.00 | |
| General Risk Reserves | |||
| Undistributed Profits | 11,515,384,739.95 | 11,515,384,739.95 | |
| Total Shareholders' Equity Attributable to the Parent Company | 19,336,254,922.95 | 19,336,254,922.95 | |
| Minority Shareholders' Equity | 67,576,527.03 | 67,576,527.03 | |
| Total Shareholders' Equity | 19,403,831,449.98 | 19,403,831,449.98 |
| Item | December 31, 2020 | January 1, 2021 | Adjusted amount |
| Total Liabilities and Shareholders' Equity | 30,897,007,799.54 | 30,900,612,669.77 | 3,604,870.23 |
Description of the adjustmentAccording to Accounting Standards for Enterprises No.21 – Lease (CaiKuai [2018] No.35) issued by the Ministry of Finance in 2018,the Company has implemented the new lease criteria and made adjustment to the relevant items in the financial statements as ofJanuary 1, 2021.
Balance Sheet of the Parent Company
Unit: RMB
| Item | December 31, 2020 | January 1, 2021 | Adjusted amount |
| Current Assets: | |||
| Cash and Bank Balances | 2,790,740,377.97 | 2,790,740,377.97 | |
| Trading Financial Assets | 851,949,945.63 | 851,949,945.63 | |
| Derivative Financial Assets | |||
| Notes receivable | 332,064,366.59 | 332,064,366.59 | |
| Accounts receivable | 704,086,691.03 | 704,086,691.03 | |
| Receivables Financing | |||
| Prepayments | 1,631,550.49 | 1,631,550.49 | |
| Other Receivables | 4,247,680,763.92 | 4,247,680,763.92 | |
| Including: interest receivable | |||
| Dividends Receivable | |||
| Inventories | 566,205,506.19 | 566,205,506.19 | |
| Contract Assets | |||
| Holding for-sale assets | |||
| Non-current Assets Due within 1 Year | |||
| Other Current Assets | 552,859,738.36 | 552,859,738.36 | |
| Subtotal of Current Assets | 10,047,218,940.18 | 10,047,218,940.18 | |
| Non-current Assets: |
| Item | December 31, 2020 | January 1, 2021 | Adjusted amount |
| Investment in Creditor's Rights | |||
| Investment in Other Creditor's Rights | |||
| Long-term Receivables | |||
| Long-term Equity Investment | 6,372,637,172.92 | 6,372,637,172.92 | |
| Investment in Other Equity Instruments | 22,998,147.55 | 22,998,147.55 | |
| Other Non-current Financial Assets | |||
| Investment Property | |||
| Fixed Assets | 737,784,631.31 | 737,784,631.31 | |
| Construction in progress | |||
| Productive Biological Assets | |||
| Oil and gas assets | |||
| Right-of-use Assets | 3,303,921.56 | 3,303,921.56 | |
| Intangible Assets | 105,425,506.93 | 105,425,506.93 | |
| Development Expenditure | |||
| Goodwill | |||
| Long-term Deferred Expenses | 5,919,401.23 | 5,919,401.23 | |
| Deferred Income Tax Assets | 42,345,228.44 | 42,345,228.44 | |
| Other Non-current Assets | 7,202,988.32 | 7,202,988.32 | |
| Subtotal of Non-current Assets | 7,294,313,076.70 | 7,297,616,998.26 | 3,303,921.56 |
| Total Assets | 17,341,532,016.88 | 17,344,835,938.44 | 3,303,921.56 |
| Current Liabilities: | |||
| Short-term Borrowings | 1,243,628,965.48 | 1,243,628,965.48 | |
| Transactional financial liabilities |
| Item | December 31, 2020 | January 1, 2021 | Adjusted amount |
| Derivative Financial Liabilities | |||
| Notes Payable | 155,953,161.50 | 155,953,161.50 | |
| Accounts Payable | 100,374,347.92 | 100,374,347.92 | |
| Received Prepayments | |||
| Contract liabilities | 8,494,783.78 | 8,494,783.78 | |
| Payroll payable | 82,688,797.50 | 82,688,797.50 | |
| Tax Payable | 33,578,246.55 | 33,578,246.55 | |
| Other Payables | 15,543,517.50 | 15,543,517.50 | |
| Including: interest payable | |||
| Dividends Payable | |||
| Holding for-sale liabilities | |||
| Non-current Liabilities Due within 1 Year | 635,930,890.44 | 635,930,890.44 | |
| Other Current Liabilities | 1,104,321.89 | 1,104,321.89 | |
| Subtotal of Current Liabilities | 2,277,297,032.56 | 2,277,297,032.56 | |
| Non-current Liabilities: | |||
| Long-term Borrowings | 2,209,521,076.40 | 2,209,521,076.40 | |
| Bonds Payable | |||
| Including: Preferred Stocks | |||
| Perpetual Bonds | |||
| Lease Liabilities | 3,303,921.56 | 3,303,921.56 | |
| Long-term Payables | |||
| Long-term payroll payable | |||
| Expected Liabilities | |||
| Deferred Income | 18,884,041.56 | 18,884,041.56 |
| Item | December 31, 2020 | January 1, 2021 | Adjusted amount |
| Deferred Income Tax Liabilities | 13,011,703.03 | 13,011,703.03 | |
| Other Non-current Liabilities | |||
| Subtotal of Non-current Liabilities | 2,241,416,820.99 | 2,244,720,742.55 | 3,303,921.56 |
| Total Liabilities | 4,518,713,853.55 | 4,522,017,775.11 | 3,303,921.56 |
| Shareholders' Equity: | |||
| Share Capital | 2,148,662,300.00 | 2,148,662,300.00 | |
| Other Equity Instruments | |||
| Including: Preferred Stocks | |||
| Perpetual Bonds | |||
| Capital Reserves | 4,300,852,875.45 | 4,300,852,875.45 | |
| Less: Treasury Share | |||
| Other Comprehensive Incomes | 506,954.43 | 506,954.43 | |
| Special Reserves | |||
| Surplus Reserves | 1,074,331,150.00 | 1,074,331,150.00 | |
| Undistributed Profits | 5,298,464,883.45 | 5,298,464,883.45 | |
| Total Shareholders' Equity | 12,822,818,163.33 | 12,822,818,163.33 | |
| Total Liabilities and Shareholders' Equity | 17,341,532,016.88 | 17,344,835,938.44 | 3,303,921.56 |
Description of the adjustmentAccording to Accounting Standards for Enterprises No.21 – Lease (CaiKuai [2018] No.35) issued by the Ministry of Finance in 2018,the Company has implemented the new lease criteria and made adjustment to the relevant items in the financial statements as ofJanuary 1, 2021.
(4) Explanation of data comparison for early stage of retroactive adjustment due to first implementation ofthe new lease criteria from 2021
□ Applicable √ Not applicable
Ⅵ. Taxes
1. Major Tax Categories and Tax Rates
| Tax Type | Taxation Basis | Tax Rate |
| VAT | According to the provisions of the tax law, the sales tax shall be calculated on the basis of the income by selling goods and taxable services. After deducting the input tax that is allowed to be deducted from the sales tax in the current period, the difference shall be the value-added tax (VAT). | 13%, 10%, 9%, 6%, 5% and 19%; the policy of “tax exemption, tax credit and tax refund” is implemented for the export goods, with the tax refund rate of 0%–13%; the policy of "refund after collection" is implemented for the export goods of the subsidiary company, Zhejiang NHU Import and Export Co., Ltd., with the tax refund rate of 0%–13%. |
| Urban Maintenance and Construction Tax | Actually paid turnover tax | 5%, 7% |
| Enterprise Income Tax | Taxable income | 15%, 25% |
| Land VAT | Compensable transfer of the added value arising from the right to use state-owned land, and property rights of ground premises and other attached structures | Four-level extra progressive rate is adopted. Calculated at a rate of 30% for added value not exceeding 50% of the deducted item amount; 40% for added value exceeding 50% of the deducted item amount and not exceeding 100% of the deducted item amount; 50% for added value exceeding 100% of the deducted item amount and not exceeding 200% of the deducted item amount; 60% for added value exceeding 200% of the deducted item amount |
| Land Usage Tax | Calculated based on the corresponding tax of the actual land area occupied, and levied per year and paid in installments | RMB 3.6/sq.m.; RMB 4/sq.m.; RMB 6/sq.m.; RMB 7.2/sq.m.; RMB 8/sq.m.; RMB 9/sq.m.; RMB 10/sq.m.; RMB 13/sq.m. |
| House Property Tax | For the advalorem tax method, calculated by 1.2% of the residual following the subtraction of 30% of the original value of the property; for the leasing income method, calculated by 12% of the leasing income | 1.2%, 12% |
| Education Surcharges | Actually paid turnover tax | 3% |
| Local Education Surcharges | Actually paid turnover tax | 2% |
| Tax Type | Taxation Basis | Tax Rate |
| Solidarity Surcharge [Note] | The amount of income tax payable | 5.50% |
| Trade Tax [Note] | Taxable income | 13.30% |
[Note] Applicable to NHU EUROPE GmbH, NHU PERFORMANCE MATERIALS GMBH, and Bardoterminal GmbHIf there are multiple taxpayers with different enterprise income tax rates, the disclosure shall be explained
| Name of Taxpayer | Income Tax Rate |
| The Company | 15% |
| Shangyu Bio-Chem | 15% |
| Zhejiang Special Materials | 15% |
| Shandong Pharmaceutical | 15% |
| Shandong Amino-acids | 15% |
| Shandong Vitamins | 15% |
| NHU EUROPE GmbH | 15% |
| NHU PERFORMANCE MATERIALS GMBH | 15% |
| Bardoterminal GmbH | 15% |
| Other taxpayers other than those mentioned above | 25% |
2. Preferential Tax Rate
According to the High and New Technology Enterprise Certificate (GR202033003531) issued by Zhejiang ProvincialDepartment of Science and Technology, Zhejiang Provincial Department of Finance, and Zhejiang Provincial Tax Service, StateTaxation Administration, the Company is certified as a high and new technology enterprise and enjoys the preferential income taxpolicies for hi-tech enterprises from 2020 to 2022. The enterprise income tax is calculated at a rate of 15% in 2021.According to the High and New Technology Enterprise Certificate (GR201933005736) issued by Zhejiang ProvincialDepartment of Science and Technology, Zhejiang Provincial Department of Finance, and Zhejiang Provincial Tax Service, StateTaxation Administration, the subsidiary company, SHANGYU NHU BIO-CHEM CO., LTD., is certified as a high and newtechnology enterprise and enjoys the preferential income tax policies for hi-tech enterprises from 2019 to 2021. The enterpriseincome tax is calculated at a rate of 15% in 2021.The High and New Technology Enterprise Certificate (2018 to 2020) for Zhejiang NHU Construction Material Co., Ltd., thesubsidiary company, has expired. The enterprise income tax is prepaid at a rate of 15% in 2021 according to Announcement of theState Administration of Taxation on Issues Concerning the Implementation of the Preferential Income Tax Policies regardingHigh-Tech Enterprises (No. 24 [2017]).According to the High and New Technology Enterprise Certificate (GR202037001084) issued by Department of Science &Technology of Shandong Province, Shandong Provincial Department of Finance, and Shandong Provincial Tax Service, StateTaxation Administration, the subsidiary company, Shandong NHU Pharmaceutical Co., Ltd., is certified as a high and newtechnology enterprise and enjoys the preferential income tax policies for hi-tech enterprises from 2020 to 2022. The enterpriseincome tax is calculated at a rate of 15% in 2021.
According to the High and New Technology Enterprise Certificate (GR202037000197) issued by Department of Science andTechnology of Shandong Province, Shandong Provincial Department of Finance, and Shandong Provincial Tax Service, StateTaxation Administration, the subsidiary company, Shandong NHU Vitamins Co., Ltd., is certified as a high and new technologyenterprise and enjoys the preferential income tax policies for hi-tech enterprises from 2020 to 2022. The enterprise income tax iscalculated at a rate of 15% in 2021.The High and New Technology Enterprise Certificate (2018 to 2020) for Shandong NHU Amino-acids Co., Ltd., subsidiarycompany, has expired. The enterprise income tax is prepaid at a rate of 15% in 2021 according to Announcement of the StateAdministration of Taxation on Issues Concerning the Implementation of the Preferential Income Tax Policies regarding High-TechEnterprises (No. 24 [2017]).Ⅶ. Notes to the Items in the Consolidated Financial StatementNote: The opening balance of the notes to the items in the consolidated financial statement indicates the data of January 1, 2021adjusted by the balance at the end of last year according to the new lease standards.
1. Cash and Bank Balances
Unit: RMB
| Item | Closing Balance | Opening Balance |
| Cash on Hand | 17,148.82 | 10,735.55 |
| Bank Balance | 6,182,146,348.75 | 4,669,296,040.54 |
| Other Cash and Bank Balances | 230,449,397.69 | 258,350,460.15 |
| Total | 6,412,612,895.26 | 4,927,657,236.24 |
| Including: Total Amount Deposited in Overseas Banks | 13,496,972.20 | 21,518,199.53 |
Other notesMonetary Funds - Other Monetary Funds
Unit: RMB
| Project | At the end of the reporting period | At the beginning of the reporting period |
| Bank Acceptance Bill Deposit | 205,331,116.11 | 233,849,274.66 |
| L/C Deposit | 22,854,163.27 | 23,350,000.00 |
| Deposit for Project Labor Wages | 1,653,668.82 | 741,108.87 |
| Construction Bond | 404,439.49 | 404,076.62 |
| ETC Deposit | 6,000.00 | 6,000.00 |
| Guarantee Deposit for Water Charges | 200,010.00 | - |
| Subtotal | 230,449,397.69 | 258,350,460.15 |
2. Trading Financial Assets
Unit: RMB
| Item | Closing Balance | Opening Balance |
| Financial Assets at Fair Value through Profit or Loss in This Period | 1,326,426,200.12 | 852,227,964.70 |
| Including: Principal-Protected Floating -Income Financial Products | 1,320,000,000.00 | 850,000,000.00 |
| Including: Derivative Financial Assets | 6,426,200.12 | 2,227,964.70 |
| Total | 1,326,426,200.12 | 852,227,964.70 |
3. Notes Receivable
(1) Disclosure of Notes Receivable
Unit: RMB
| Item | Closing Balance | Opening Balance |
| Bank Acceptance Notes | 460,973,358.32 | 332,064,366.59 |
| Total | 460,973,358.32 | 332,064,366.59 |
Unit: RMB
| Category | Balance at the End of the Period | Opening Balance | ||||||||
| Book Balance | Bad Debt Provision | Book Value | Book balance | Bad Debt Provision | Book Value | |||||
| Amount | Percentage | Amount | Accrued Proportion | Amount | Percentage | Amount | Accrued Proportion | |||
| Notes Receivable with the Bad Debt Provision Accrued Based on Combinations | 460,973,358.32 | 100.00% | 460,973,358.32 | 332,064,366.59 | 100.00% | 332,064,366.59 | ||||
| Bank Acceptance | 460,973,358.32 | 100.00% | 460,973,358.32 | 332,064,366.59 | 100.00% | 332,064,366.59 | ||||
| Bill | ||||||||||
| Total | 460,973,358.32 | 100.00% | 460,973,358.32 | 332,064,366.59 | 100.00% | 332,064,366.59 |
2) Notes Receivable That the Company Has Pledged at the End of the Period
Unit: RMB
| Item | Pledged Amount by the End of the Period |
| Bank Acceptance Notes | 431,546,440.19 |
| Total | 431,546,440.19 |
(3) Notes Receivable that the Company has Endorsed or Discounted at the End of the Period and that HaveNot Yet Expired on the Balance Sheet Date
Unit: RMB
| Item | Derecognised Amount at the End of the Period | Not Derecognised Amount at the End of Period |
| Bank Acceptance Notes | 67,677,561.91 | |
| Total | 67,677,561.91 |
Other notesThe commercial bank is the acceptor of bank acceptance bill. The possibility that no payment is made when the bankacceptance bill expires is low, so the Company derecognizes the endorsed or discounted bank acceptance bill. If no payment is madewhen the bank acceptance bill expires, the Company also bears joint responsibilities for the holder.
4. Accounts Receivable
(1) Categorical Disclosure of Accounts Receivable
Unit: RMB
| Category | Balance at the End of the Period | Opening Balance | ||||||||
| Book Balance | Bad Debt Provision | Book Value | Book balance | Bad Debt Provision | Book value | |||||
| Amount | Percentage | Amount | Accrued Proportion | Amount | Percentage | Amount | Accrued Proportion | |||
| Accounts Receivables with the Bad Debt | 2,640,177,719.11 | 100.00% | 137,301,631.99 | 5.20% | 2,502,876,087.12 | 2,037,464,941.46 | 100.00% | 106,534,011.45 | 5.23% | 1,930,930,930.01 |
| Provision Accrued Based on Combinations | ||||||||||
| Total | 2,640,177,719.11 | 100.00% | 137,301,631.99 | 5.20% | 2,502,876,087.12 | 2,037,464,941.46 | 100.00% | 106,534,011.45 | 5.23% | 1,930,930,930.01 |
Bad debt provision based on combinations: aging
Unit: RMB
| Name | Balance at the End of the Period | ||
| Book balance | Bad Debt Provision | Accrued proportion | |
| Within 1 Year | 2,616,053,456.50 | 130,802,672.83 | 5.00% |
| 1-2 Years | 21,909,191.81 | 4,381,838.36 | 20.00% |
| 2-3 years | 489,750.00 | 391,800.00 | 80.00% |
| 3 years or above | 1,725,320.80 | 1,725,320.80 | 100.00% |
| 5 years or above | 1,725,320.80 | 1,725,320.80 | 100.00% |
| Total | 2,640,177,719.11 | 137,301,631.99 | |
Disclosure by age
Unit: RMB
| Aging | Balance at the End of the Period |
| Within 1 Year (Including 1 Year) | 2,616,053,456.50 |
| 1 to 2 Years | 21,909,191.81 |
| 2 to 3 Years | 489,750.00 |
| 3 years or above | 1,725,320.80 |
| 5 Years or above | 1,725,320.80 |
| Total | 2,640,177,719.11 |
(2) Provision for Bad Debts Accrued, Recovered or Reversed in the Current PeriodProvision for bad debts in the current period:
Unit: RMB
| Category | Opening Balance | Amount of Changes in the Current Period | Balance at the End of the Period | |||
| Accrued | Recovered or Reversed | Written Off | Others | |||
| Bad Debt Provision Based on | 106,534,011.45 | 30,767,620.54 | 137,301,631.99 | |||
| Combinations | ||||||
| Total | 106,534,011.45 | 30,767,620.54 | 137,301,631.99 |
(3) Accounts Receivable of the Top Five Balances at the End of the Period Collected by Indebted Parties
Unit: RMB
| Name of Unit | Balance of Accounts Receivable at the End of the Period | As a Percentage of Total Other Receivables at the End of the Period | Bad Debt Provision at the End of the Period |
| Customer 1 | 513,125,231.63 | 19.43% | 25,656,261.58 |
| Customer 2 | 252,935,288.07 | 9.58% | 15,933,143.18 |
| Customer 3 | 156,771,329.88 | 5.94% | 7,838,566.49 |
| Customer 4 | 88,892,708.00 | 3.37% | 4,444,635.40 |
| Customer 5 | 68,767,516.46 | 2.60% | 3,438,375.82 |
| Total | 1,080,492,074.04 | 40.92% |
5. Receivables Financing
Unit: RMB
| Item | Closing Balance | Opening Balance |
| Notes receivable | 33,076,624.55 | 295,393,346.17 |
| Total | 33,076,624.55 | 295,393,346.17 |
The increase and decrease of accounts receivable financing in the current period and the changes in the fair value
□ Applicable √ Not applicable
Please refer to the disclosing methods of other receivables for the information disclosure of depreciation provisions, if thedepreciation provisions of accounts receivable financing are made according to the general model of expected credit losses:
□ Applicable √ Not applicable
Other notes:
(1) Notes receivable pledged by the Company at the end of the period
| Project | Pledged Amount by the End of the Period |
| Bank Acceptance Bill | 8,890,529.21 |
| Subtotal | 8,890,529.21 |
(2) Notes receivable that the Company has endorsed or discounted at the end of the period and that have not yet expired on thebalance sheet date
| Project | Derecognised Amount at the End of the Period |
| Bank Acceptance Bill | 268,605,122.02 |
| Subtotal | 268,605,122.02 |
The commercial bank is the acceptor of bank acceptance bill. The possibility that no payment is made when the bankacceptance bill expires is low, so the Company derecognizes the endorsed or discounted bank acceptance bill. If no payment is madewhen the bank acceptance bill expires, the Company also bears joint responsibilities for the holder.
6. Prepayments
(1) Prepayments Listed by Age
Unit: RMB
| Aging | Closing Balance | Opening Balance | ||
| Amount | Percentage | Amount | Percentage | |
| Within 1 Year | 161,544,227.31 | 99.43% | 115,835,410.14 | 99.81% |
| 1 to 2 Years | 708,638.85 | 0.43% | 108,449.06 | 0.09% |
| 2 to 3 Years | 111,959.82 | 0.07% | 34,278.04 | 0.03% |
| 3 years or above | 109,843.00 | 0.07% | 85,420.35 | 0.07% |
| Total | 162,474,668.98 | -- | 116,063,557.59 | -- |
(2) Advance Payment of the Top Five Closing Balances by Prepayment Parties
Unit: RMB
| Name of Unit | Book Balance | As a Percentage of Prepayments (%) |
| Supplier 1 | 27,612,147.10 | 16.99 |
| Supplier 2 | 21,952,237.36 | 13.51 |
| Supplier 3 | 11,136,036.93 | 6.85 |
| Supplier 4 | 7,535,416.79 | 4.64 |
| Supplier 5 | 6,461,700.00 | 3.98 |
| Subtotal | 74,697,538.18 | 45.97 |
7. Other Receivables
Unit: RMB
| Item | Closing Balance | Opening Balance |
| Other Receivables | 210,828,040.94 | 178,610,951.64 |
| Total | 210,828,040.94 | 178,610,951.64 |
1) Other Receivables Categorized by the Nature of the Funds
Unit: RMB
| Nature of the funds | Closing balance | Opening Balance |
| Guarantee Deposit | 126,081,892.13 | 126,960,566.33 |
| Export Refunds | 79,414,033.07 | 51,751,067.61 |
| Refundable VAT | 7,897,919.91 | 2,139,904.45 |
| Employee Imprest | 6,002,917.00 | 4,764,737.00 |
| Temporary Payments Receivable | 2,194,826.13 | 2,470,070.51 |
| Others | 857,757.88 | 584,839.49 |
| Total | 222,449,346.12 | 188,671,185.39 |
2) Bad Debt Provision
Unit: RMB
| Bad Debt Provision | Phase One | Phase Two | Phase Three | Total |
| Expected Credit Losses in the Next 12 Months | Expected Credit Losses for the Entire Extension (without Credit Impairment) | Expected credit losses for the entire extension (with credit impairment) | ||
| Balance on January 1, 2021 | 573,660.51 | 1,522,658.59 | 7,963,914.65 | 10,060,233.75 |
| Balance in the Current Period on January 1, 2021 | —— | —— | —— | —— |
| --Transfer to Phase Two | -148,259.93 | 148,259.93 | ||
| --Transfer to Phase Three | -1,817,790.41 | 1,817,790.41 | ||
| Provisions in the Current Period | 259,406.72 | 739,911.59 | 561,753.12 | 1,561,071.43 |
| Balance on June 30, 2021 | 684,807.30 | 593,039.70 | 10,343,458.18 | 11,621,305.18 |
Book balance changes with significant changes in loss provision in the current period
□ Applicable √ Not applicable
Disclosure by age
Unit: RMB
| Aging | Closing Balance |
| Within 1 Year (Including 1 Year) | 109,422,899.02 |
| 1 to 2 Years | 2,965,198.51 |
| 2 to 3 Years | 9,088,952.04 |
| 3 years or above | 100,972,296.55 |
| 3 to 4 Years | 1,031,302.95 |
| 4 to 5 Years | 99,271,245.29 |
| 5 Years or above | 669,748.31 |
| Total | 222,449,346.12 |
3) Provision for Bad debts Accrued, Recovered or Reversed in the Current Period
Provision for bad debts in the current period:
Unit: RMB
| Category | Opening Balance | Amount of Changes in the Current Period | Closing Balance | |||
| Accrued | Recovered or Reversed | Written Off | Others | |||
| Bad Debt Provision Based on Combinations | 10,060,233.75 | 1,561,071.43 | 11,621,305.18 | |||
| Total | 10,060,233.75 | 1,561,071.43 | 11,621,305.18 | |||
4) Other Receivables of the Top Five Closing Balances Collected by Indebted Parties
Unit: RMB
| Name of Unit | Nature of the Funds | Balance at the End of the Period | Aging | As a Percentage of Total Other Receivables at the End of the Period | Bad debt provision at the end of the period |
| Weifang City Natural Resources and Planning Bureau Binhai Branch | Guarantee Deposit | 97,900,000.00 | 4 years or above | 44.01% | |
| State Taxation Administration (Export Refunds Receivable) | Export Refunds | 79,414,033.07 | Within 1 year | 35.70% | |
| Federal Central Tax Office | Refundable VAT | 7,897,919.91 | Within 1 Year | 3.55% | |
| Suihua Labor Security Supervision Bureau | Guarantee Deposit | 850,000.00 | 1-2 years | 0.38% | 170,000.00 |
| 8,328,490.53 | 2-3 years | 3.74% | 6,662,792.42 | ||
| 930,000.00 | 3-4 Years | 0.42% | 930,000.00 |
| Xinchang County Finance Bureau | Guarantee Deposit | 5,000,000.00 | 1-2 years | 2.25% | |
| Total | -- | 200,320,443.51 | -- | 90.05% | 7,762,792.42 |
8. Inventories
Does the Company follow the disclosure requirements in the real estate industry?No
(1) Categories of Inventories
Unit: RMB
| Item | Closing Balance | Opening Balance | ||||
| Book Balance | Provision for Impairment of Inventories or Provision for Impairment of Performance Cost | Book Value | Book balance | Provision for Impairment of Inventories or Provision for Impairment of Performance Cost | Book Value | |
| Raw Materials | 427,308,799.26 | 802,452.27 | 426,506,346.99 | 558,843,825.21 | 986,354.24 | 557,857,470.97 |
| Work-in-progress | 888,466,686.58 | 888,466,686.58 | 820,838,241.10 | 820,838,241.10 | ||
| Merchandise Inventories | 1,528,329,198.26 | 6,992,312.48 | 1,521,336,885.78 | 1,201,225,837.45 | 10,578,367.06 | 1,190,647,470.39 |
| Goods in Transit | 38,247,731.11 | 38,247,731.11 | 50,257,257.15 | 50,257,257.15 | ||
| Development Cost | 394,470,197.57 | 394,470,197.57 | 294,084,933.10 | 294,084,933.10 | ||
| Developed Product | 124,217,237.05 | 124,217,237.05 | 129,785,192.22 | 129,785,192.22 | ||
| Commissioned Materials | 8,917,276.62 | 8,917,276.62 | 4,033,866.34 | 4,033,866.34 | ||
| Package | 12,251,594.46 | 12,251,594.46 | 15,062,156.67 | 15,062,156.67 | ||
| Low-value Consumption Goods | 108,275,685.95 | 108,275,685.95 | 54,475,970.84 | 54,475,970.84 | ||
| Total | 3,530,484,406.86 | 7,794,764.75 | 3,522,689,642.11 | 3,128,607,280.08 | 11,564,721.30 | 3,117,042,558.78 |
(1) Inventories—Development Cost
| Item Name | Estimated Total Investment | At the beginning of the reporting period | At the end of the reporting period |
| Boao NHU Resort Hotel | 550,000,000 | 33,575,305.88 | 33,575,305.88 |
| Weifang NHU Town II | 398,531,400 | 260,509,627.22 | 360,894,891.69 |
| Subtotal | 294,084,933.10 | 394,470,197.57 |
(2) Inventories—Developed Product
| Item Name | Completion Time | At the beginning of the reporting period | Increased in the Current Period | Decreased in the Current Period | At the end of the reporting period |
| Boao NHU Resort Center | 2014.12 | 129,785,192.22 | 4,049,073.54 | 9,617,028.71 | 124,217,237.05 |
| Subtotal | 129,785,192.22 | 4,049,073.54 | 9,617,028.71 | 124,217,237.05 |
(3) Provision for Impairment of Inventories and Provision for Impairment of Performance Cost
Unit: RMB
| Item | Opening Balance | Increased in the Current Period | Decreased in the Current Period | Closing Balance | ||
| Accrued | Others | Reversals or Write-offs | Others | |||
| Raw materials | 986,354.24 | 183,901.97 | 802,452.27 | |||
| Merchandise Inventories | 10,578,367.06 | 6,714,482.90 | 10,300,537.48 | 6,992,312.48 | ||
| Total | 11,564,721.30 | 6,714,482.90 | 10,484,439.45 | 7,794,764.75 | ||
Basis for determining the net realizable value, and reason for the reversal or write-off of inventories depreciation provision inthe current period
| Project | Basis for Determining the Net Realizable Value: | Reason for the Reversal of Inventories Depreciation Provision in the Current Period | Reason for the Write-off of Inventories Depreciation Provision in the Current Period |
| Raw Materials | The net realizable value is determined by the amount after deducting the estimated cost of completion, estimated selling expenses and relevant taxes from the estimated selling price of finished goods. | Increase in the net realizable value of inventories for inventories depreciation provision in previous periods | The inventories for inventories depreciation provision at the beginning of this period has been sold or used in the current period. |
| Merchandise Inventories | The net realizable value is determined by the amount after deducting the estimated selling expenses and relevant taxes from the estimated selling price of finished goods. | Increase in the net realizable value of inventories for inventories depreciation provision in previous periods | The inventories for inventories depreciation provision at the beginning of this period has been sold in the current period. |
9. Other Current Assets
Unit: RMB
| Item | Closing Balance | Opening Balance |
| Bank Financial Products and Structured Deposits | 200,000,000.00 | 950,000,000.00 |
| Prepaid VAT or Input Tax to Be Credited | 527,575,591.92 | 817,273,751.05 |
| Prepaid Urban Maintenance and Construction Tax | 16,532.22 | |
| Prepaid Enterprise Income Tax | 5,256,726.36 | 5,193,417.21 |
| Deferred Insurance Premium | 5,295,591.65 | 5,056,905.47 |
| Deferred Rent Fee | 12,335.78 | |
| Prepaid Education Surcharges | 9,919.36 | |
| Prepaid Local Education Surcharges | 6,612.87 | |
| Total | 738,127,909.93 | 1,777,569,473.96 |
10. Long-term Equity Investment
Unit: RMB
| The Invested Entity | Opening Balance (Book Value) | Decrease/Increase in the Current Period | Closing Balance (Book Value) | Closing balance of provision for decline in value | |||||||
| Investments Increased | Investment Decreased | Investment Profit and Loss Recognized under the Equity Method | Adjustment on Other Comprehensive Income | Other Changes in Equity | Cash Dividends or Profit Declared to Distribute | Provision for Impairment Accrued | Others | ||||
| Affiliate | |||||||||||
| Zhejiang Chunhui Environmental Protectio | 199,358,330.80 | 16,864,292.79 | 216,222,623.59 | ||||||||
| n Energy Co., Ltd. | |||||||||||
| Zhejiang Sanpo Polymer Co., Ltd. | |||||||||||
| Shandong Bin'an Technology Co., Ltd. | 6,391,064.12 | -133,045.81 | 6,258,018.31 | ||||||||
| DSM NHU Engineering Materials (Zhejiang) Co., Ltd. | |||||||||||
| Zhejiang Saiya Chemical Materials Co., Ltd. | 98,309,710.69 | 2,115,473.15 | 100,425,183.84 | ||||||||
| CysBio ApS | 39,319,785.57 | -3,124,190.21 | -390,492.14 | 35,805,103.22 | |||||||
| Total | 343,378,891.18 | 15,722,529.92 | -390,492.14 | 358,710,928.96 |
11. Investment in Other Equity Instruments
Unit: RMB
| Item | Closing Balance | Opening Balance |
| Second Pharma Co.,Ltd. | 7,790,147.55 | 7,790,147.55 |
| Shanghai NewMargin Yongjin Eqiuty Enterprise | 15,208,000.00 | 15,208,000.00 |
| Total | 22,998,147.55 | 22,998,147.55 |
12. Fixed assets
Unit: RMB
| Item | Closing Balance | Opening Balance |
| Fixed Assets | 13,752,889,539.13 | 13,914,151,215.54 |
| Total | 13,752,889,539.13 | 13,914,151,215.54 |
(1) Fixed Assets
Unit: RMB
| Item | Housing and building | Universal equipment | Special equipment | Means of transport | Total |
| I. Original Book Value | |||||
| 1. Opening Balance | 5,471,048,302.28 | 148,005,902.83 | 12,294,355,532.66 | 25,738,968.49 | 17,939,148,706.26 |
| 2. Increased in the Current Period | 270,285,525.10 | 13,966,177.98 | 175,413,843.67 | 678,422.47 | 460,343,969.22 |
| (1) Purchase | 183,696,182.85 | 7,605,086.56 | 120,215,443.53 | 630,413.62 | 312,147,126.56 |
| (2) Transferred From Construction in Progress | 86,589,342.25 | 6,361,091.42 | 55,198,400.14 | 48,008.85 | 148,196,842.66 |
| 3. Decreased in the Current Period | 16,402,192.06 | 2,467,122.74 | 84,383,612.00 | 1,178,037.74 | 104,430,964.54 |
| (1) Disposal or Scrapping | 16,402,192.06 | 2,467,122.74 | 84,383,612.00 | 1,178,037.74 | 104,430,964.54 |
| 4. Closing Balance | 5,724,931,635.32 | 159,504,958.07 | 12,385,385,764.33 | 25,239,353.22 | 18,295,061,710.94 |
| II. Accumulated Depreciation | |||||
| 1. Opening Balance | 522,190,479.09 | 84,230,573.73 | 3,401,522,313.16 | 16,291,440.70 | 4,024,234,806.68 |
| 2. Increased in the Current Period | 79,152,254.88 | 10,553,025.09 | 487,259,954.40 | 1,114,250.87 | 578,079,485.24 |
| (1) Accrual | 79,152,254.88 | 10,553,025.09 | 487,259,954.40 | 1,114,250.87 | 578,079,485.24 |
| 3. Decreased in the Current Period | 15,770.27 | 2,976,815.08 | 57,052,287.43 | 859,931.37 | 60,904,804.15 |
| (1) Disposal or Scrapping | 15,770.27 | 2,976,815.08 | 57,052,287.43 | 859,931.37 | 60,904,804.15 |
| 4. Closing Balance | 601,326,963.70 | 91,806,783.74 | 3,831,729,980.13 | 16,545,760.20 | 4,541,409,487.77 |
| III. Provision for Impairment | |||||
| 1. Opening Balance | 16,110.64 | 1,141.64 | 729,136.75 | 16,295.01 | 762,684.04 |
| 2. Increased in the Current Period | |||||
| (1) Accrual |
| 3. Decreased in the Current Period | |||||
| (1) Disposal or Scrapping | |||||
| 4. Closing Balance | 16,110.64 | 1,141.64 | 729,136.75 | 16,295.01 | 762,684.04 |
| IV. Book Value | |||||
| 1. Closing Book Value | 5,123,588,560.98 | 67,697,032.69 | 8,552,926,647.45 | 8,677,298.01 | 13,752,889,539.13 |
| 2. Opening Book Value | 4,948,841,712.55 | 63,774,187.46 | 8,892,104,082.75 | 9,431,232.78 | 13,914,151,215.54 |
(2) Temporarily Idle Fixed Assets
Unit: RMB
| Item | Original Book Value | Accumulated Depreciation | Provision for decline in value | Book value | Remarks |
| Special equipment | 47,615,262.92 | 23,585,973.70 | 24,029,289.22 |
(3) Fixed Assets Leased by Operating Lease
Unit: RMB
| Item | Closing Book Value |
| Housing and building | 28,692,265.78 |
(4) Fixed Assets with Certificates of Title Not Granted
Unit: RMB
| Item | Book Value | Reasons for Certificates of Title Not Granted |
| Housing and building | 1,454,022,332.76 | Related procedures not completed |
13. Construction in progress
Unit: RMB
| Item | Closing Balance | Opening Balance |
| Construction in progress | 2,295,793,123.43 | 1,325,545,420.56 |
| Total | 2,295,793,123.43 | 1,325,545,420.56 |
(1) Details of Construction in Progress
Unit: RMB
| Item | Closing Balance | Opening Balance | ||||
| Book balance | Provision for decline in value | Book value | Book balance | Provision for decline in value | Book value | |
| Shandong Industrial Park Project I | 15,516,662.57 | 15,516,662.57 | 4,682,266.37 | 4,682,266.37 | ||
| Heilongjiang Xinhao Project II | 43,592,931.39 | 43,592,931.39 | 24,493,344.31 | 24,493,344.31 | ||
| Hongweisu Project | 207,846,117.83 | 207,846,117.83 | 125,379,657.49 | 125,379,657.49 | ||
| Auxiliary Materials Supporting Project for Heilongjiang NHU Biofermentation Industrial Park | 62,373,927.07 | 62,373,927.07 | ||||
| Methionine Project with Annual Production of 250,000 Tons | 24,427,295.25 | 24,427,295.25 | 16,754,982.19 | 16,754,982.19 | ||
| Shandong Industrial Park Project 615 | 216,364,549.21 | 216,364,549.21 | 215,871,416.04 | 215,871,416.04 | ||
| Shandong Industrial Park Project 617A | 75,335,108.66 | 75,335,108.66 | 71,756,558.71 | 71,756,558.71 | ||
| Shandong Industrial Park Project 603 | 72,520,845.39 | 72,520,845.39 | 47,927,444.49 | 47,927,444.49 | ||
| Shandong Industrial Park Project MH | 57,682,975.41 | 57,682,975.41 | 16,423,904.95 | 16,423,904.95 | ||
| Shangyu Industrial Park Project PPS | 114,250,390.87 | 114,250,390.87 | 43,358,686.84 | 43,358,686.84 | ||
| Shandong Industrial Park Project TMB | 999,898,646.95 | 999,898,646.95 | 448,565,055.49 | 448,565,055.49 | ||
| Biochemical Engineering Workshop Renovation and Promotion Project | 63,214,354.21 | 63,214,354.21 | 58,503,795.45 | 58,503,795.45 | ||
| Daming Healthcare Project | 87,487,231.15 | 87,487,231.15 | ||||
| Other Projects | 317,656,014.54 | 317,656,014.54 | 189,454,381.16 | 189,454,381.16 | ||
| Total | 2,295,793,123.43 | 2,295,793,123.43 | 1,325,545,420.56 | 1,325,545,420.56 |
(2) Changes in Significant Construction in Progress
Unit: RMB
| Item Name | Budget | Opening Balance | Increased in the Current Period | Transferred Fixed Assets in Current Period | Other Amounts Decreased in Current Period | Closing Balance | Project Accumulative Investment as a Percentage of the Budget | Project Progress | Accumulated Capitalized Interest Amount | Including: Capitalized Interest Amount in the Current Period | Capitalization Rate of the Interest in the Current Period | Capital Source |
| Shandong Industrial Park Project I | 3,116,000,000.00 | 4,682,266.37 | 19,195,804.88 | 1,704,938.01 | 6,656,470.67 | 15,516,662.57 | 84.20% | 99.00% | 16,260,833.33 | Others | ||
| Heilongjiang Xinhao Project II | 107,462,500.00 | 24,493,344.31 | 21,663,867.33 | 2,564,280.25 | 0.00 | 43,592,931.39 | 42.95% | 52.00% | Others | |||
| Hongweisu Project | 478,229,800.00 | 125,379,657.49 | 82,466,460.34 | 0.00 | 0.00 | 207,846,117.83 | 43.46% | 72.00% | Others | |||
| Auxiliary Materials Supporting Project | 87,396,100.00 | 62,373,927.07 | 13,054,460.73 | 75,428,387.80 | 0.00 | 0.00 | 86.31% | 100.00% | Others |
| for Heilongjiang NHU Biofermentation Industrial Park | ||||||||||||
| Methionine Project with Annual Production of 250,000 Tons | 5,369,842,200.00 | 16,754,982.19 | 7,672,313.06 | 0.00 | 0.00 | 24,427,295.25 | 32.14% | 40.00% | Fund raised with shares | |||
| Shandong Industrial Park Project 615 | 209,355,000.00 | 215,871,416.04 | 493,133.17 | 0.00 | 0.00 | 216,364,549.21 | 103.35% | 97.50% | Others | |||
| Shandong Industrial Park Project 617A | 85,000,000.00 | 71,756,558.71 | 3,578,549.95 | 0.00 | 0.00 | 75,335,108.66 | 88.63% | 95.00% | Others | |||
| Shandong Industrial Park Project 603 | 97,280,300.00 | 47,927,444.49 | 24,593,400.90 | 0.00 | 0.00 | 72,520,845.39 | 74.55% | 88.00% | Others | |||
| Shandong Industrial Park Project MH | 283,501,300.00 | 16,423,904.95 | 41,259,070.46 | 0.00 | 0.00 | 57,682,975.41 | 20.35% | 37.00% | Others | |||
| Shangyu Industrial Park Project PPS | 709,000,000.00 | 43,358,686.84 | 70,891,704.03 | 0.00 | 0.00 | 114,250,390.87 | 16.12% | 31.00% | Others | |||
| Shandong Industrial Park | 1,231,605,900.00 | 448,565,055.49 | 567,038,772.65 | 15,705,181.19 | 0.00 | 999,898,646.95 | 82.46% | 92.00% | 1,531,875.00 | 1,531,875.00 | 4.28% | Others |
| Project TMB | ||||||||||||
| Biochemical Engineering Workshop Renovation and Promotion Project | 69,110,000.00 | 58,503,795.45 | 4,710,558.76 | 0.00 | 0.00 | 63,214,354.21 | 91.47% | 99.00% | Others | |||
| Daming Healthcare Project | 457,720,700.00 | 87,487,231.15 | 87,487,231.15 | 19.11% | 30.00% | Others | ||||||
| Total | 12,301,503,800.00 | 1,136,091,039.40 | 944,105,327.41 | 95,402,787.25 | 6,656,470.67 | 1,978,137,108.89 | -- | -- | 17,792,708.33 | 1,531,875.00 | -- |
14. Right-of-use Assets
Unit: RMB
| Item | Buildings for Leasing | Total |
| I. Original Book Value: | ||
| 1. Opening Balance | 3,604,870.23 | 3,604,870.23 |
| 2. Increased in the Current Period | 1,858,538.29 | 1,858,538.29 |
| 3. Decreased in the Current Period | 0.00 | 0.00 |
| 4. Closing Balance | 5,463,408.52 | 5,463,408.52 |
| II. Accumulated Depreciation | ||
| 1. Opening Balance | ||
| 2. Increased in the Current Period | 448,385.93 | 448,385.93 |
| (1) Accrual | ||
| 3. Decreased in the Current Period | ||
| (1) Disposal | ||
| 4. Closing Balance | 448,385.93 | 448,385.93 |
| III. Book Value | ||
| 1. Closing Book Value | 5,015,022.59 | 5,015,022.59 |
| 2. Opening Book Value | 3,604,870.23 | 3,604,870.23 |
Note: For the difference between the beginning of the reporting period and the end of the previous year (December 31, 2020), seeChapter V.28 of this Section.
15. Intangible Assets
(1) Details of Intangible Assets
Unit: RMB
| Item | Land use rights | Patent right | Non-patented technology | Softwares | Total |
| I. Original Book Value | |||||
| 1. Opening Balance | 1,535,867,143.93 | 15,634,893.87 | 1,880,000.00 | 24,620,367.22 | 1,578,002,405.02 |
| 2. Increased in the Current Period | 5,148,804.91 | 2,152,689.01 | 1,043,762.83 | 8,345,256.75 | |
| (1) Purchase | 5,148,804.91 | 2,152,689.01 | 1,043,762.83 | 8,345,256.75 | |
| (2) Internal Research and Development | |||||
| (3) Acquisition | |||||
| 3. Decreased in the Current Period | |||||
| (1) Disposal | |||||
| 4. Closing Balance | 1,541,015,948.84 | 17,787,582.88 | 1,880,000.00 | 25,664,130.05 | 1,586,347,661.77 |
| II. Accumulated Amortization | |||||
| 1. Opening Balance | 156,112,743.86 | 1,297,796.00 | 41,777.78 | 13,482,957.51 | 170,935,275.15 |
| 2. Increased in the Current Period | 15,117,645.60 | 622,354.44 | 62,666.67 | 928,746.11 | 16,731,412.82 |
| (1) Accrual | 15,117,645.60 | 622,354.44 | 62,666.67 | 928,746.11 | 16,731,412.82 |
| 3. Decreased in the Current |
| Item | Land use rights | Patent right | Non-patented technology | Softwares | Total |
| Period | |||||
| (1) Disposal | |||||
| 4. Closing Balance | 171,230,389.46 | 1,920,150.44 | 104,444.45 | 14,411,703.62 | 187,666,687.97 |
| III. Book Value | |||||
| 1. Closing Book Value | 1,369,785,559.38 | 15,867,432.44 | 1,775,555.55 | 11,252,426.43 | 1,398,680,973.80 |
| 2. Opening Book Value | 1,379,754,400.07 | 14,337,097.87 | 1,838,222.22 | 11,137,409.71 | 1,407,067,129.87 |
The intangible assets from internal research and development of the Company at the end of this period account for 0.00% of theintangible assets balance.
(2) Land Use Rights with Certificates of Title Not Granted
Unit: RMB
| Item | Book Value | Reasons for Certificates of Title Not Granted |
| Land use rights | 5,574,257.00 | Related procedures not completed |
16. Goodwill
(1) Original Book Value of Goodwill
Unit: RMB
| The Invested Entity or Matters Which Formed Goodwill | Opening Balance | Increased in the current period | Decreased in the Current Period | Closing Balance | |
| Generated from Business Combination | Disposal | Foreign Currency Translation Difference | |||
| Bardoterminal GmbH | 2,307,297.60 | 97,409.65 | 2,209,887.95 | ||
| Total | 2,307,297.60 | 97,409.65 | 2,209,887.95 | ||
(2) Provision of Goodwill Impairment
Unit: RMB
| The Invested Entity or | Opening | Increased in the | Decreased in the Current Period | Closing Balance |
| Matters Which Formed Goodwill | Balance | current period | |||
| Accrued | Disposal | Decreased | |||
| Bardoterminal GmbH | 2,307,297.60 | 97,409.65 | 2,209,887.95 | ||
| Total | 2,307,297.60 | 97,409.65 | 2,209,887.95 |
17. Long-term Deferred Expenses
Unit: RMB
| Item | Opening Balance | Increased in the Current Period | Amortized in the Current Period | Other Amounts Decreased | Closing Balance |
| Renovation Cost | 13,230,866.20 | 1,464,368.63 | 1,889,541.83 | 12,805,693.00 | |
| Gardening Expense | 89,881.48 | 44,940.78 | 44,940.70 | ||
| Site Leveling | 48,664.80 | 8,110.80 | 40,554.00 | ||
| Total | 13,369,412.48 | 1,464,368.63 | 1,942,593.41 | 12,891,187.70 |
18. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets Not Written Off
Unit: RMB
| Item | Closing Balance | Opening Balance | ||
| Deductible temporary difference | Deferred Income Tax Assets | Deductible temporary difference | Deferred Income Tax Assets | |
| Provision for Impairment of Assets | 58,537,569.64 | 10,555,874.72 | 41,096,831.73 | 6,778,514.76 |
| Unrealized Profit from Internal Transactions | 204,559,627.50 | 31,125,345.34 | 180,352,009.29 | 28,516,508.65 |
| Deferred Income | 129,000,956.57 | 19,690,804.36 | 132,441,298.90 | 19,866,194.83 |
| Fixed Assets Depreciation Difference | 52,299,404.53 | 7,844,910.68 | 66,549,918.38 | 9,982,487.76 |
| Total | 444,397,558.24 | 69,216,935.10 | 420,440,058.30 | 65,143,706.00 |
(2) Deferred Income Tax Liabilities Not Written Off
Unit: RMB
| Item | Closing Balance | Opening Balance | ||
| Taxable Temporary Difference | Deferred Income Tax Liabilities | Taxable temporary difference | Deferred Income Tax Liabilities | |
| Fixed Assets Tax Basis Difference | 433,962,301.69 | 77,606,551.14 | 391,333,594.21 | 71,800,274.33 |
| Profit before Tax of NHU (HONGKONG) TRADING COMPANY LIMITED | 311,258,629.20 | 46,688,794.38 | 184,979,768.52 | 27,746,965.28 |
| Changes at Fair Value of Trading Financial Instruments and Derivative Financial Instruments | 1,547,205.80 | 232,080.87 | 1,949,945.63 | 292,491.84 |
| Total | 746,768,136.69 | 124,527,426.39 | 578,263,308.36 | 99,839,731.45 |
(3) Deferred Income Tax Assets or Liabilities Listed by Net Amount after Offset
Unit: RMB
| Item | Amount of Deferred Income Tax Assets Offset against Liabilities at the End of the Period | Balance of Deferred Income Tax Assets or Liabilities after Offset at the End of the Period | Amount of Deferred Income Tax Assets Offset against Liabilities at the Start of the Period | Balance of Deferred Income Tax Assets or Liabilities after Offset at the Start of the Period |
| Deferred Income Tax Assets | 69,216,935.10 | 65,143,706.00 | ||
| Deferred Income Tax Liabilities | 124,527,426.39 | 99,839,731.45 |
(4) Details of Unrecognized Deferred Income Tax Assets
Unit: RMB
| Item | Closing Balance | Opening Balance |
| Deductible Temporary Difference | 382,370,680.20 | 253,988,934.04 |
| Deductible Losses | 420,127,591.09 | 428,660,231.59 |
| Total | 802,498,271.29 | 682,649,165.63 |
(5) Deductible Losses of Unrecognized Deferred Income Tax Assets Expired in the Following Year
Unit: RMB
| Year | Closing Balance | Opening balance | Remarks |
| 2026 | 3,312,384.19 | 3,312,384.19 | |
| 2027 | 11,527,268.52 | 11,527,269.04 | |
| 2028 | 38,888,442.26 | 38,888,442.26 | |
| 2029 | 104,120,797.51 | 104,129,305.33 | |
| 2030 | 262,278,698.61 | 270,802,830.77 | |
| Total | 420,127,591.09 | 428,660,231.59 | -- |
19. Other Non-current Assets
Unit: RMB
| Item | Closing Balance | Opening Balance | ||||
| Book Balance | Provision for decline in value | Book value | Book balance | Provision for decline in value | Book value | |
| Pollutant Emission Trading Fee | 482,349.22 | 482,349.22 | 14,447,447.94 | 14,447,447.94 | ||
| Coal Indicator Fee | 44,496,000.00 | 44,496,000.00 | 68,296,000.00 | 68,296,000.00 | ||
| Prepaid Long-term Assets | 316,715,175.10 | 316,715,175.10 | 195,050,042.74 | 195,050,042.74 | ||
| Total | 361,693,524.32 | 361,693,524.32 | 277,793,490.68 | 277,793,490.68 | ||
20. Short-term Borrowings
(1) Categories of Short-term Borrowings
Unit: RMB
| Item | Closing Balance | Opening Balance |
| Guaranteed Borrowings | 10,013,902.78 | |
| Fiduciary Borrowings | 2,298,007,852.59 | 2,225,474,073.09 |
| Fiduciary and Pledged Borrowings | 100,000,000.00 | 100,000,000.00 |
| Pledged and Guaranteed Borrowings | 28,037,216.66 | |
| Total | 2,398,007,852.59 | 2,363,525,192.53 |
21. Notes Payable
Unit: RMB
| Types | Closing Balance | Opening Balance |
| Bank acceptance bill | 668,896,544.92 | 497,644,517.23 |
| Total | 668,896,544.92 | 497,644,517.23 |
22. Accounts Payable
(1) Details of Accounts Payable
Unit: RMB
| Item | Closing Balance | Opening Balance |
| Labor and Materials Expenses | 695,383,950.46 | 567,395,890.15 |
| Payment for Engineering and Equipment | 749,678,083.45 | 896,332,425.89 |
| Total | 1,445,062,033.91 | 1,463,728,316.04 |
23. Contract Liabilities
Unit: RMB
| Item | Closing Balance | Opening Balance |
| Payment for Goods | 44,962,287.54 | 56,302,537.11 |
| Total | 44,962,287.54 | 56,302,537.11 |
24. Payroll Payable
(1) Details of Payroll Payable
Unit: RMB
| Item | Opening Balance | Increased in the current period | Decreased in the Current Period | Closing Balance |
| I. Short-term Remuneration | 322,646,061.45 | 763,598,251.09 | 854,943,937.71 | 231,300,374.83 |
| II. Dismissal Benefits - Defined Contribution Scheme | 38,297,177.21 | 38,297,177.21 | ||
| Total | 322,646,061.45 | 801,895,428.30 | 893,241,114.92 | 231,300,374.83 |
(2) List of short-term remuneration
Unit: RMB
| Item | Opening Balance | Increased in the current | Decreased in the | Closing Balance |
| period | Current Period | |||
| 1. Wages or salaries, bonuses, allowances and subsidies | 259,201,281.23 | 658,320,490.05 | 754,454,598.60 | 163,067,172.68 |
| 2. Employee Benefits | 41,895,993.67 | 41,895,993.67 | ||
| 3. Social Insurance Contributions | 21,157,221.74 | 21,157,221.74 | ||
| Including: Health Insurance Premium | 18,692,216.70 | 18,692,216.70 | ||
| Work Injury Insurance Premium | 1,560,835.34 | 1,560,835.34 | ||
| Maternity Insurance Premium | 904,169.70 | 904,169.70 | ||
| 4. Housing Provident Fund | 31,754,139.44 | 31,754,139.44 | ||
| 5. Labor Union and Employee Education Funds | 63,444,780.22 | 10,470,406.19 | 5,681,984.26 | 68,233,202.15 |
| Total | 322,646,061.45 | 763,598,251.09 | 854,943,937.71 | 231,300,374.83 |
(3) Defined Contribution Scheme
Unit: RMB
| Item | Opening Balance | Increased in the current period | Decreased in the Current Period | Closing Balance |
| 1. Basic Pension Insurance | 36,979,239.63 | 36,979,239.63 | ||
| 2. Unemployment Insurance Premium | 1,317,937.58 | 1,317,937.58 | ||
| Total | 38,297,177.21 | 38,297,177.21 |
25. Taxes Payable
Unit: RMB
| Item | Closing Balance | Opening Balance |
| VAT | 8,905,853.03 | 30,247,041.09 |
| Enterprise Income Tax | 230,984,629.40 | 197,310,396.17 |
| Individual Income Tax | 2,442,043.62 | 1,951,726.31 |
| Urban Maintenance and Construction | 2,537,948.93 | 1,971,609.80 |
| Tax | ||
| Land VAT | 14,859,137.93 | 14,519,045.43 |
| House Property Tax | 3,332,115.58 | 13,209,123.23 |
| Land Usage Tax | 5,420,464.00 | 8,067,682.42 |
| Education Surcharges (including Local Education Surcharges) | 2,283,195.89 | 1,537,328.96 |
| Stamp Duty | 16,134.43 | 7,902.60 |
| Local Water Conservancy Construction Fund | 39,142.74 | |
| Environmental Protection Tax | 3,473.63 | |
| Total | 270,781,522.81 | 268,864,472.38 |
26. Other Payables
Unit: RMB
| Item | Closing Balance | Opening Balance |
| Other Payables | 52,150,619.55 | 129,839,228.89 |
| Total | 52,150,619.55 | 129,839,228.89 |
1) Other Payables Listed by Nature of Funds
Unit: RMB
| Item | Closing Balance | Opening Balance |
| Guarantee Deposit | 32,928,013.51 | 23,102,033.05 |
| Equity Transfer Fund | 83,904,479.79 | |
| Borrowed Funds | 3,243,666.67 | |
| Temporary Receipts Payable | 6,271,104.11 | 9,575,676.08 |
| Earnest Money for Housing Purchase (Boao NHU Resort Center) | 392,991.00 | 1,893,256.00 |
| Others | 12,558,510.93 | 8,120,117.30 |
| Total | 52,150,619.55 | 129,839,228.89 |
27. Non-current Liabilities Due within 1 Year
Unit: RMB
| Item | Closing Balance | Opening Balance |
| Long-term Debt Due within 1 Year | 1,431,425,253.34 | 1,275,888,293.32 |
| Total | 1,431,425,253.34 | 1,275,888,293.32 |
| Item | At the end of the reporting period | At the beginning of the reporting period |
| Fiduciary Loans | 1,093,364,045.13 | 836,245,918.20 |
| Pledged Loans | 7,711,902.65 | 9,054,944.56 |
| Guaranteed Loans | 330,349,305.56 | 430,587,430.56 |
| Subtotal | 1,431,425,253.34 | 1,275,888,293.32 |
28. Other Current Liabilities
Unit: RMB
| Item | Closing Balance | Opening Balance |
| To-be-transferred Sales Taxes | 3,406,847.42 | 4,956,463.49 |
| Total | 3,406,847.42 | 4,956,463.49 |
29. Long-term Borrowings
(1) Categories of Long-term Borrowings
Unit: RMB
| Item | Closing Balance | Opening Balance |
| Pledged Borrowings | 43,798,750.00 | 49,635,844.80 |
| Guaranteed Borrowings | 1,510,573,819.42 | 1,175,331,152.79 |
| Fiduciary Borrowings | 4,240,470,218.61 | 2,911,908,356.74 |
| Total | 5,794,842,788.03 | 4,136,875,354.33 |
30. Lease Liabilities
Unit: RMB
| Item | Closing Balance | Opening Balance |
| Leased Buildings and Constructions | 5,398,990.60 | 3,604,870.23 |
| Total | 5,398,990.60 | 3,604,870.23 |
Note: For the difference between the beginning of the reporting period and the end of the previous year (December 31, 2020), seeChapter V.28 of this Section.
31. Deferred Income
Unit: RMB
| Item | Opening Balance | Increased in the current period | Decreased in the Current Period | Closing Balance | Causes |
| Government Subsidies | 873,066,181.34 | 53,240,000.00 | 40,228,500.25 | 886,077,681.09 | Received government subsidies related to assets, amortized by the depreciation progress of the corresponding assets |
| Total | 873,066,181.34 | 53,240,000.00 | 40,228,500.25 | 886,077,681.09 | -- |
Projects related to government subsidies:
Unit: RMB
| Liabilities | Opening Balance | The amount of new subsidies in this period | Amount Recorded as Operating Revenue in This Period | Amount Recorded as Other Income in This Period | Amount Written off Costs in This Period | Other variations | Closing Balance | Related to Assets/Income |
| Special Funds for Biofermentation Industrial Park Project | 476,914,860.00 | 24,668,010.00 | 452,246,850.00 | Related to assets | ||||
| Special Funds for Enterprise Development (Shandong Vitamin) | 84,635,251.75 | 4,836,300.10 | 79,798,951.65 | Related to assets | ||||
| Special Funds for Xinhao Combined Heat and Power Project | 35,547,916.69 | 1,887,499.98 | 33,660,416.71 | Related to assets | ||||
| 2019 Technical Renovation for Green Deep Processing | 34,260,000.00 | 0.00 | 34,260,000.00 | Related to assets | ||||
| Special Funds for Enterprise Development (Amino Acid) | 38,950,549.48 | 572,802.18 | 38,377,747.30 | Related to assets | ||||
| Subsidies for Shandong Site Levelling | 29,026,913.28 | 359,094.72 | 28,667,818.56 | Related to assets | ||||
| Shandong Enterprise | 19,285,039.00 | 218,907.06 | 19,066,131.94 | Related to assets |
| Liabilities | Opening Balance | The amount of new subsidies in this period | Amount Recorded as Operating Revenue in This Period | Amount Recorded as Other Income in This Period | Amount Written off Costs in This Period | Other variations | Closing Balance | Related to Assets/Income |
| Development Funds | ||||||||
| PPS Project with Annual Production of 10,000 Tons | 13,238,499.92 | 913,000.02 | 12,325,499.90 | Related to assets | ||||
| Grants for PPS Resin with Annual Production of 5,000 Tons and PPS Composite Material with Annual Production of 6,000 Tons | 11,400,000.00 | 1,425,000.00 | 9,975,000.00 | Related to assets | ||||
| Enterprise Development Funds of Advanced Manufacturing Industrial Park | 8,690,037.83 | 99,125.88 | 8,590,911.95 | Related to assets | ||||
| Effective Input Expansion for Industry in 2016 | 7,022,400.00 | 478,800.00 | 6,543,600.00 | Related to assets | ||||
| Funds for Key Projects of Industry Revitalization and Technological Upgrading in 2012 | 5,351,785.70 | 713,571.42 | 4,638,214.28 | Related to assets | ||||
| Fiscal Subsidies for Low-rent Housing | 6,339,417.24 | 120,428.58 | 6,218,988.66 | Related to assets | ||||
| Subsidies for Shandong Land Leasing for | 5,123,252.66 | 125,115.78 | 4,998,136.88 | Related to assets |
| Liabilities | Opening Balance | The amount of new subsidies in this period | Amount Recorded as Operating Revenue in This Period | Amount Recorded as Other Income in This Period | Amount Written off Costs in This Period | Other variations | Closing Balance | Related to Assets/Income |
| Dormitories | ||||||||
| Subsidies for Input in Shangyu Biochemical Infrastructure | 4,898,735.72 | 158,885.94 | 4,739,849.78 | Related to assets | ||||
| Public Testing Service Platform Construction Project | 4,000,000.00 | 499,999.98 | 3,500,000.02 | Related to assets | ||||
| Subsidies for Infrastructure Fee | 8,275,875.00 | 398,812.50 | 7,877,062.50 | Related to assets | ||||
| Compensation for 2017 Environment Resources Project | 3,840,000.00 | 240,000.00 | 3,600,000.00 | Related to assets | ||||
| Subsidies for Land and Infrastructure Construction | 3,242,880.00 | 405,360.00 | 2,837,520.00 | Related to assets | ||||
| 2017 Special Fiscal Funds for Real Economy Revitalization (Traditional Industry Transformation) | 2,679,299.82 | 269,614.28 | 2,409,685.54 | Related to assets | ||||
| Subsidies for RTO Project | 1,666,666.86 | 199,999.98 | 1,466,666.88 | Related to assets | ||||
| 2017 Special Funds for Marine Economy Development | 2,000,000.00 | 0.00 | 2,000,000.00 | Related to assets | ||||
| Special Funds for High Quality Development of Manufacturing | 2,109,286.90 | 152,478.60 | 1,956,808.30 | Related to assets |
| Liabilities | Opening Balance | The amount of new subsidies in this period | Amount Recorded as Operating Revenue in This Period | Amount Recorded as Other Income in This Period | Amount Written off Costs in This Period | Other variations | Closing Balance | Related to Assets/Income |
| Enterprise Development Funds (Shandong Refinement) | 52,224,561.00 | 52,224,561.00 | Related to assets | |||||
| Special Funds for Technological Upgrading (Shandong Vitamin) | 20,500,000.00 | 20,500,000.00 | Related to assets | |||||
| Special Funds for Warehouse Logistics Assistance Program | 25,080,000.00 | 25,080,000.00 | Related to assets | |||||
| Other Subsidies | 12,342,952.49 | 7,660,000.00 | 1,485,693.25 | 18,517,259.24 | Related to assets | |||
| Subtotal | 873,066,181.34 | 53,240,000.00 | 40,228,500.25 | 886,077,681.09 |
Note: For the government subsidies included in the current profits and losses, see Note VII (58) of this section.
32. Share Capital
Unit: RMB
| Item | Opening Balance | Increased or Decreased Amount in the Current Period (+/-) | Closing Balance | ||||
| Shares newly issued | Bonus shares | Shares converted from capital reserves | Others | Subtotal | |||
| Total Shares | 2,148,662,300.00 | 429,732,460.00 | 429,732,460.00 | 2,578,394,760.00 | |||
Note: According to the 2020 Annual Profit Distribution Plan passed by the resolution of the 2020 Annual General Meeting ofStockholders, based on the total capital of 2,148,662,300.00 shares at the end of 2020, the Company distributes all shareholders 2shares for each 10 shares by capital reserve, with a total of 429,732,460.00 shares transferred. The total share capital of the Companyafter transferring is 2,578,394,760.00 shares. The above capital reserve converted to share capital has been verified by Pan-ChinaCertified Public Accountants LLP (Special General Partnership) who issued the Capital Verification Report (T.J.Y. [2021] NO. 234).
33. Capital Reserve
Unit: RMB
| Item | Opening Balance | Increased in the current period | Decreased in the Current Period | Closing Balance |
| Capital Premium (Capital Share Premium) | 4,277,237,673.92 | 429,732,460.00 | 3,847,505,213.92 | |
| Other Capital Reserves | 283,284,882.92 | 283,284,882.92 | ||
| Total | 4,560,522,556.84 | 429,732,460.00 | 4,130,790,096.84 |
Reason for decrease/increase in the current period: Decrease in capital premium (equity premium) in the current period is the capitalreserve converted to share capital in the current period. For details, see VII.32
34. Other Comprehensive Incomes
Unit: RMB
| Item | Opening Balance | This Period's Amount of Occurrence | Closing Balance | |||||
| Amount Occurred Before Income Tax in the Current Period | Less: Recorded into Other Comprehensive Incomes in Previous Period and Transferred to P/L in the Current Period | Less: Recorded into Other Comprehensive Incomes in Previous Period and Transferred to Retained Income in the Current Period | Less: Income Tax Expense | Attributable to the Company after Tax | Attributable to the Minority Shareholders after Tax | |||
| Other Comprehensive Income That Will Be Reclassified into P/L | 27,803,829.31 | -27,560,965.25 | -11,402,449.39 | -2,976,682.86 | 16,401,379.92 | |||
| Including: Other Comprehensive Income That Can Be Transferred to P/L under the Equity Method | 506,954.43 | 506,954.43 | ||||||
| Difference from Foreign Currency Financial Statement Translation | 27,296,874.88 | -27,560,965.25 | -11,402,449.39 | -2,976,682.86 | 15,894,425.49 | |||
| Other Comprehensive Incomes in Total | 27,803,829.31 | -27,560,965.25 | -11,402,449.39 | -2,976,682.86 | 16,401,379.92 | |||
35. Special Reserves
Unit: RMB
| Item | Opening Balance | Increased in the current period | Decreased in the Current Period | Closing Balance |
| Safety Production Costs | 9,550,346.85 | 5,948,742.71 | 3,856,610.93 | 11,642,478.63 |
| Total | 9,550,346.85 | 5,948,742.71 | 3,856,610.93 | 11,642,478.63 |
36. Surplus Reserve
Unit: RMB
| Item | Opening Balance | Increased in the current period | Decreased in the Current Period | Closing Balance |
| Statutory Surplus Reserve | 1,074,331,150.00 | 1,074,331,150.00 | ||
| Total | 1,074,331,150.00 | 1,074,331,150.00 |
37. Undistributed Profits
Unit: RMB
| Item | Current Period | Previous Period |
| Undistributed Profit after Adjustment at the Start of the Period | 11,515,384,739.95 | 9,158,233,971.76 |
| Add: Net Profit Attributable to Parent Company's Owner in the Current Period | 2,408,499,133.50 | 2,208,930,277.20 |
| Less: Payable Dividends on Ordinary Shares | 1,504,063,610.00 | 1,074,331,150.00 |
| Undistributed Profit at the End of the Period | 12,419,820,263.45 | 10,292,833,098.96 |
38. Operating Income and Operating Costs
Unit: RMB
| Item | This Period's Amount of Occurrence | Amount Occurred in the Previous Period | ||
| Income | Cost | Income | Cost | |
| Main Business | 7,180,589,252.55 | 3,709,144,810.85 | 5,285,935,511.71 | 2,133,390,266.47 |
| Other Businesses | 73,632,385.46 | 46,180,234.17 | 17,229,990.54 | 10,418,794.02 |
| Total | 7,254,221,638.01 | 3,755,325,045.02 | 5,303,165,502.25 | 2,143,809,060.49 |
Note: Costs incurred from performance of contracts is included in the operating costs in the current period. For details, see chapter V.28 of this section.
Information about revenue:
Unit: RMB
| Contract Classification | Total |
| Principal Place of Business | |
| Domestic | 3,295,559,229.13 |
| Overseas | 3,958,662,408.88 |
| Subtotal | 7,254,221,638.01 |
| Main Business Types | |
| Nutritional products | 5,452,151,744.71 |
| Essences and fragrances | 1,126,980,745.24 |
| New materials | 418,367,560.13 |
| Others | 256,721,587.93 |
| Subtotal | 7,254,221,638.01 |
| Time of Revenue Recognition | |
| Including: Commodities (Transferred at a Point) | 7,254,221,638.01 |
| Subtotal | 7,254,221,638.01 |
Information about performance of obligations:
N/AInformation about transaction price allocated to the remaining performance of obligations:
The revenue corresponding to the performance of obligations under the contracts which are signed but are not performed ornot performed completely at the end of this reporting period is RMB 1,021,907,408.90, in which RMB 1,021,907,408.90 is estimatedto be recognized as revenue in 2021.
39. Taxes and Surcharges
Unit: RMB
| Item | This Period's Amount of Occurrence | Amount Occurred in the Previous Period |
| Urban Maintenance and Construction Tax | 16,593,941.36 | 15,662,602.92 |
| Education Surcharges | 15,258,637.11 | 14,468,776.36 |
| Land VAT | 640,367.32 | 225,819.50 |
| Stamp Duty | 2,929,669.52 | 2,022,185.58 |
| House Property Tax | 11,778,391.04 | 5,418,917.10 |
| Land Usage Tax | 12,989,995.35 | 12,236,260.22 |
| Vehicle and Vessel Use Tax | 24,675.80 | 19,653.13 |
| Environmental Protection Tax | 578,646.58 | 516,644.89 |
| Total | 60,794,324.08 | 50,570,859.70 |
40. Selling Expenses
Unit: RMB
| Item | This Period's Amount of Occurrence | Previous Period's Amount of Occurrence |
| Handling Charges and Transportation Premium | 1,466,649.89 | 79,683,153.39 |
| Sales Commission and Customs Clearance Fee | 17,692,240.72 | 18,789,506.93 |
| Advertising and Promotion Expenses, and Business Entertainment Expenses | 3,567,586.35 | 3,848,627.67 |
| Payroll | 23,212,723.68 | 20,689,730.57 |
| Office and Traveling Expenses | 5,649,153.96 | 4,780,171.09 |
| Others | 3,891,220.30 | 4,266,297.87 |
| Total | 55,479,574.90 | 132,057,487.52 |
Note: Costs incurred from performance of contracts in the selling expenses is included in the operating costs in the current period.For details, see V. 28 of this section.
41. Administration Expenses
Unit: RMB
| Item | This Period's Amount of Occurrence | Previous Period's Amount of Occurrence |
| Payroll | 91,901,943.55 | 96,800,579.80 |
| Office and Traveling Expenses | 15,975,577.72 | 13,006,051.13 |
| Depreciation Cost and Intangible Asset Amortization | 42,187,840.96 | 32,300,328.20 |
| Business Entertainment Expenses | 9,654,999.32 | 6,059,332.99 |
| Insurance Premium | 7,655,409.05 | 6,742,146.81 |
| Others | 20,130,143.50 | 28,988,037.37 |
| Total | 187,505,914.10 | 183,896,476.30 |
42. R&D Expenses
Unit: RMB
| Item | This Period's Amount of Occurrence | Amount Occurred in the Previous Period |
| Direct Input | 126,033,421.52 | 59,560,240.63 |
| Payroll | 149,468,367.40 | 110,880,668.96 |
| Depreciation Cost and Intangible Asset Amortization | 24,293,575.58 | 18,736,565.61 |
| Office and Traveling Expenses | 15,628,605.63 | 8,169,701.42 |
| Outsourcing Cost | 13,402,568.01 | 10,686,584.62 |
| Others | 22,706,226.41 | 11,119,177.39 |
| Total | 351,532,764.55 | 219,152,938.63 |
43. Financial Expenses
Unit: RMB
| Item | This Period's Amount of Occurrence | Amount Occurred in the Previous Period |
| Interest Expenditures | 162,484,715.95 | 110,160,929.73 |
| Less: Interest Income | 72,107,022.92 | 15,204,954.21 |
| Exchange gains or losses (Mark "-" for Incomes) | 43,236,369.19 | -28,926,159.63 |
| Others | 10,916,076.87 | 10,277,155.91 |
| Total | 144,530,139.09 | 76,306,971.80 |
44. Other Incomes
Unit: RMB
| Sources of Other Income | This Period's Amount of Occurrence | Amount Occurred in the Previous Period |
| Government Subsidies Related to Assets | 40,228,500.25 | 15,893,203.74 |
| Government Subsidies Related to Income | 33,328,436.43 | 28,936,325.99 |
| Charge Return for Withholding Individual Income Tax | 1,139,113.99 | 819,130.22 |
| Total | 74,696,050.67 | 45,648,659.95 |
Note: For the government subsidies included in other income in the current period, see Notes VII (58) of this section.
45. Investment Income
Unit: RMB
| Item | This Period's Amount of Occurrence | Amount Occurred in the Previous Period |
| Long-term Equity Investment Income | 15,735,226.24 | 5,431,597.21 |
| Measured by Equity Method | ||
| Investment Income from Possession of Financial Instruments | ||
| Including: Investment in Other Equity Instruments | ||
| Investment Income from Disposal Trading Financial Assets | -370,729.11 | -10,125,310.54 |
| Including: Financial Assets at Fair Value through Profit or Loss in the Current period | 2,643,037.39 | 140,624.46 |
| Financial Liabilities Measured at Fair Value with Changes Recorded into Current Profit and Loss | -3,013,766.50 | -10,265,935.00 |
| Interest from Discounting Notes | ||
| Income from Bank Financial Products and Structured Deposits | 29,617,969.78 | 73,491,805.92 |
| Total | 44,982,466.91 | 68,798,092.59 |
46. Income from Changes in Fair Value
Unit: RMB
| Sources of Income from Changes in Fair Value | This Period's Amount of Occurrence | Amount Occurred in the Previous Period |
| Trading Financial Assets | 25,239,240.62 | 1,916,459.91 |
| Transactional financial liabilities | -1,567,482.48 | 8,520,857.22 |
| Total | 23,671,758.14 | 10,437,317.13 |
47. Credit Impairment Loss
Unit: RMB
| Item | This Period's Amount of Occurrence | Amount Occurred in the Previous Period |
| Losses on Bad Debts | -33,637,204.20 | -48,988,895.82 |
| Total | -33,637,204.20 | -48,988,895.82 |
48. Asset Impairment Loss
Unit: RMB
| Item | This Period's Amount of Occurrence | Amount Occurred in the Previous Period |
| Loss from Impairment of Inventories and Impairment of Performance Cost | -6,714,482.90 | -2,095,132.82 |
| Total | -6,714,482.90 | -2,095,132.82 |
49. Asset Disposal Income
Unit: RMB
| Sources of Asset Disposal Income | This Period's Amount of Occurrence | Amount Occurred in the Previous Period |
| Profit and Loss from Disposal of Non-current Assets | 1,065,564.79 | 84,077.01 |
| Total | 1,065,564.79 | 84,077.01 |
50. Non-operating Revenues
Unit: RMB
| Item | This Period's Amount of Occurrence | Amount Occurred in the Previous Period | Amount Recorded into Non-recurring Profit and Loss in the Current Period |
| Income from Indemnification | 9,044,364.95 | 753,931.20 | 9,044,364.95 |
| Others | 1,302,076.50 | 160,792.02 | 1,302,076.50 |
| Total | 10,346,441.45 | 914,723.22 | 10,346,441.45 |
51. Non-operating Expense
Unit: RMB
| Item | This Period's Amount of Occurrence | Amount Occurred in the Previous Period | Amount Recorded into Non-recurring Profit and Loss in the Current Period |
| Donations | 877,525.00 | 10,117,774.40 | 877,525.00 |
| Local Water Conservancy Construction Fund | 298,453.46 | ||
| Others | 1,041,504.53 | 1,549,137.28 | 1,041,504.53 |
| Total | 1,919,029.53 | 11,965,365.14 | 1,919,029.53 |
52. Income Tax Expense
(1) Income Tax Expense Table
Unit: RMB
| Item | This Period's Amount of Occurrence | Amount Occurred in the Previous Period |
| Current Income Tax Expense | 374,095,395.38 | 345,849,333.57 |
| Deferred Income Tax Expense | 20,614,465.84 | 42,127.46 |
| Total | 394,709,861.22 | 345,891,461.03 |
(2) Reconciliation of Accounting Profits and Income Tax Expenses
Unit: RMB
| Item | This Period's Amount of Occurrence |
| Total Profit | 2,811,545,441.60 |
| Income Tax Calculated at Statutory/Applicable Tax Rate | 421,731,816.24 |
| Impact by Applying Different Tax Rates to Subsidiaries | -10,673,966.07 |
| Impact of Income Tax before Adjustment in This Period | -1,775,129.65 |
| Impact of Non-taxable Revenue | -1,192,681.53 |
| Impact of the Non-deductible Costs, Expenses and Losses | 1,067,622.05 |
| Impact of Deductible Losses from Unrecognized Deferred Income Tax Assets in the Previous Period | -22,437,104.00 |
| Impact of Deductible Temporary Difference or Deductible Losses from Unrecognized Deferred Income Tax Assets in the Current Period | 62,976,030.77 |
| Impact of Additional Deduction of the Research and Development Expenses | -54,986,726.59 |
| Income tax expense | 394,709,861.22 |
53. Other Comprehensive Income
For net of tax of other comprehensive income, see Note VII (34) of this section.
54. Items of Cash Flow Statement
(1) Other Cash Receipts Relating to Operating Activities
Unit: RMB
| Item | This Period's Amount of Occurrence | Amount Occurred in the Previous Period |
| Bank Interest Income | 72,170,716.37 | 14,595,570.94 |
| Government Subsidies Received | 82,860,435.49 | 37,322,837.08 |
| Temporary Loans and Guarantee Deposits Received | 4,650.00 | 2,190,342.70 |
| Other Net Amounts Received | 11,267,812.52 | 5,966,638.94 |
| Total | 166,303,614.38 | 60,075,389.66 |
(2) Other Cash Payments Relating to Operating Activities
Unit: RMB
| Item | This Period's Amount of Occurrence | Amount Occurred in the Previous Period |
| R&D Expenditure | 9,072,525.23 | 5,073,304.02 |
| Handling Charges and Transportation Premium | 0 | 73,804,213.88 |
| Office and Traveling Expenses | 11,497,951.02 | 11,818,804.30 |
| Advertising and Promotion Expenses, and Business Entertainment Expenses | 10,942,559.78 | 8,101,614.52 |
| Sales Commission and Customs Clearance Fee | 8,641,852.83 | 11,610,472.33 |
| Insurance Premium | 5,366,502.83 | 2,357,120.82 |
| Other Expenses and Net Amounts | 146,673,321.02 | 77,024,806.00 |
| Total | 192,194,712.71 | 189,790,335.87 |
(3) Other Cash Receipts Relating to Investing Activities
Unit: RMB
| Item | This Period's Amount of Occurrence | Amount Occurred in the Previous Period |
| Financial Products Recovered at the Beginning of this Period | 1,800,000,000.00 | 3,850,000,000.00 |
| Land Deposits Recovered | 71,314,561.00 | |
| Deposits of Contingent Option Recovered | 4,780,000.00 | |
| Total | 1,800,000,000.00 | 3,926,094,561.00 |
(4) Other Cash Payments Relating to Investing Activities
Unit: RMB
| Item | This Period's Amount of Occurrence | Amount Occurred in the Previous Period |
| Purchased Financial Products | 1,520,000,000.00 | 1,400,000,000.00 |
| Total | 1,520,000,000.00 | 1,400,000,000.00 |
(5) Other Cash Receipts Relating to Financing Activities
Unit: RMB
| Item | This Period's Amount of Occurrence | Amount Occurred in the Previous Period |
| Recovered Cash and Bank Balances Pledged for Borrowing | 73,000,000.00 | |
| Total | 73,000,000.00 |
(6) Other Cash Payments Relating to Financing Activities
Unit: RMB
| Item | This Period's Amount of Occurrence | Previous Period's Amount of Occurrence |
| Paid Charges for Bank Financing | 2,069,877.48 | 6,799,330.40 |
| Paid Charges for Issuing Loan Guarantee | 1,293,530.21 | 2,596,211.80 |
| Paid Cash and Bank Balances Pledged for Borrowing | 61,887.76 | |
| Total | 3,363,407.69 | 9,457,429.96 |
55. Supplementary Information about the Cash Flow Statement
(1) Supplementary Information about the Cash Flow Statement
Unit: RMB
| Supplementary Information | Amount of this period | Amount of Previous Period |
| 1． Reconciliation of Net Profit to Cash Flows from Operational Activities: | -- | -- |
| Net Profit | 2,416,835,580.38 | 2,214,313,722.90 |
| Add: Provision for Impairment of Assets | 40,351,687.10 | 51,184,028.64 |
| Depreciation of Fixed Assets, Oil and Gas Assets, Productive Biological Assets | 578,079,485.24 | 343,991,868.23 |
| Depreciation of Right-of-use Assets | 448,385.93 | |
| Amortization of Intangible Assets | 16,731,412.82 | 15,921,794.71 |
| Amortization of Long-term Prepaid Expenses | 1,942,593.41 | 457,395.84 |
| Losses on Disposal of Fixed Assets, Intangible Assets and Other Long-term Assets (Mark "-" for Incomes) | -1,065,564.79 | -84,077.01 |
| Losses on Scrapping of Fixed | 17,993.76 |
| Supplementary Information | Amount of this period | Amount of Previous Period |
| Assets (Mark "-" for Incomes) | ||
| Losses on Fair Value Changes (Mark "-" for Incomes) | -23,671,758.14 | -10,437,317.13 |
| Financial Expenses (Mark "-" for Incomes) | 209,472,718.30 | 88,948,908.07 |
| Losses on Investment (Mark "-" for Incomes) | -44,982,466.91 | -68,798,092.59 |
| Decrease on Deferred Income Tax Assets (Mark "-" for Incomes) | -4,073,229.10 | -8,999,940.93 |
| Increase on Deferred Income Tax liabilities (Mark "-" for Decreases) | 24,687,694.94 | 9,042,068.39 |
| Decrease on Inventories (Mark "-" for Increases) | -401,877,126.78 | -253,520,308.60 |
| Decrease on Operational Receivables (Mark "-" for Increases) | -234,285,135.31 | -454,214,969.17 |
| Increase on Operational Payables (Mark "-" for Decreases) | -307,454,789.08 | -800,082,861.24 |
| Others | -162,000.00 | |
| Net cash flow generated by operating activities | 2,271,157,481.77 | 1,127,560,220.11 |
| 2． Major Investing and Financing Activities Not Involving Cash Receipts and Payments: | -- | -- |
| Conversion of Debt into Capital | ||
| Convertible Bonds Due within 1 Year | ||
| Fixed Assets under Finance Lease | ||
| 3． Net Changes in Cash and Cash Equivalents: | -- | -- |
| Closing Balance of Cash | 6,182,163,497.57 | 5,241,316,156.88 |
| Less: Opening Balance of Cash | 4,669,306,776.09 | 3,213,557,815.42 |
| Add: Closing Balance of Cash Equivalents | ||
| Less: Opening Balance of Cash Equivalents | ||
| Net additions to balance of equivalents | 1,512,856,721.48 | 2,027,758,341.46 |
(2) Composition of Cash and Cash Equivalents
Unit: RMB
| Item | Closing Balance | Opening Balance |
| I. Cash | 6,182,163,497.57 | 4,669,306,776.09 |
| Including: Cash on Hand | 17,148.82 | 10,735.55 |
| Bank Deposit for Payment at Any Time | 6,182,146,348.75 | 4,669,296,040.54 |
| III. Closing Balance of Cash and Cash Equivalents | 6,182,163,497.57 | 4,669,306,776.09 |
Other notes:
The closing balance of monetary funds is RMB 6,412,612,895.26, Bank Acceptance Bill Deposit is RMB 205,331,116.11, L/CDeposit is RMB 22,854,163.27, Deposit for Project Labor Wages is RMB 1,653,668.82, Construction Bond is RMB 404,439.49,ETC Deposit is RMB 6,000.00, Guarantee Deposit for Water Charges is RMB 200,010.00，which is not Cash and Cash Equivalents:
The opening balance of monetary funds is RMB 4,927,657,236.24, Bank Acceptance Bill Deposit is RMB 233,849,274.66, L/CDeposit is RMB 23,350,000.00, Deposit for Project Labor Wages is RMB 741,108.87, Construction Bond is RMB 404,076.62, ETCDeposit is RMB 6,000.00，which is not Cash and Cash Equivalents.
56. Assets with Restricted Ownership Rights or Rights to Use
Unit: RMB
| Item | Closing Book Value | Cause of Restrictions |
| Cash and Bank Balances | 230,449,397.69 | See "Cash and Bank Balances" in the financial statement. |
| Notes receivable | 431,546,440.19 | See "Notes Receivable" in the financial statement. |
| Receivables Financing | 8,890,529.21 | See "Receivables Financing" in the financial statement. |
| Fixed assets | 86,062,988.84 | Mortgaged to bank for borrowing |
| Intangible Assets | 10,074,981.26 | Mortgaged to bank for borrowing |
| Total | 767,024,337.19 | -- |
57. Monetary Items in Foreign Currencies
(1) Monetary Items in Foreign Currencies
Unit: RMB
| Item | Closing Balance in Foreign Currencies | Exchange Rate for Conversion | Closing Balance Converted into RMB |
| Cash and Bank Balances | -- | -- | 690,101,206.42 |
| Including: USD | 88,548,944.83 | 6.4601 | 572,035,038.50 |
| EUR | 12,921,672.86 | 7.6862 | 99,318,561.94 |
| HKD | 1,569,397.45 | 0.8321 | 1,305,895.62 |
| JPY | 298,659,424.00 | 0.0584 | 17,441,710.36 |
| Accounts receivable | -- | -- | 1,980,934,756.26 |
| Including: USD | 260,651,154.68 | 6.4601 | 1,683,832,524.35 |
| EUR | 38,653,981.41 | 7.6862 | 297,102,231.91 |
| Other Receivables | 10,216,238.01 | ||
| Including: EUR | 1,325,734.49 | 7.6862 | 10,189,860.44 |
| HKD | 31,700.00 | 0.8321 | 26,377.57 |
| Short-term Borrowings | 512,201,680.42 | ||
| Including: USD | 15,032,244.28 | 6.4601 | 97,109,801.27 |
| EUR | 54,004,824.12 | 7.6862 | 415,091,879.15 |
| Accounts Payable | 76,696,793.52 | ||
| Including: USD | 108,418.10 | 6.4601 | 700,391.77 |
| EUR | 9,887,382.81 | 7.6862 | 75,996,401.75 |
| Other Payables | 651,815.14 | ||
| Including: USD | 88,746.64 | 6.4601 | 573,312.17 |
| EUR | 9,674.15 | 7.6862 | 74,357.45 |
| HKD | 4,982.00 | 0.8321 | 4,145.52 |
| Non-current Liabilities Due within 1 Year | 7,711,902.65 | ||
| Including: EUR | 1,003,344.00 | 7.6862 | 7,711,902.65 |
| Long-term Borrowings | 43,798,750.00 | ||
| Including: EUR | 5,698,362.00 | 7.6862 | 43,798,750.00 |
(2) Notes on overseas business entities, including that for the important overseas business entities, theoverseas main premises, functional currency and selection basis shall be disclosed. If there are changes onits functional currency, the causes for the changes shall be disclosed as well.
√ Applicable □ Not applicable
NHU Europe GmbH is the holding subsidiary of NHU (HONGKONG) TRADING COMPANY LIMITED, holding 51% ofshares. NHU PERFORMANCE MATERIALS GMBH is the wholly-owned subsidiary of NHU (HONGKONG) TRADINGCOMPANY LIMITED; Bardoterminal GmbH is the wholly-owned subsidiary of NHU Europe GmbH. The three companies arelocated at Lüneburg, German, and adopt EUR as the functional currency.
58. Government Subsidies
(1) Basic Information about Government Subsidies
1) Government subsidies related to assets
Unit: RMB
| Project | Deferred Income at the Beginning of This Period | New Subsidies in This Period | Amortization Expenses in This Period | Deferred Income at the End of This Period | Items Reported for Amortization in This Period | Note |
| Special Funds for Biofermentation Industrial Park Project | 476,914,860.00 | 24,668,010.00 | 452,246,850.00 | Other income | S.J.K.G. (2018) No.55 |
| Special Funds for Enterprise Development (Shandong Vitamin) | 84,635,251.75 | 4,836,300.10 | 79,798,951.65 | Other income | ||
| Special Funds for Xinhao Combined Heat and Power Project | 35,547,916.69 | 1,887,499.98 | 33,660,416.71 | Other income | S.J.K.G.W.H. (2018) No.123 | |
| 2019 Technical Renovation for Green Deep Processing | 34,260,000.00 | 0.00 | 34,260,000.00 | Other income | Z.F.G.M. (2019) No.127 | |
| Special Funds for Enterprise Development (Shandong Amino-acids Acid) | 38,950,549.48 | 572,802.18 | 38,377,747.30 | Other income | W.B.C.Z.Z. (2018) No.40 | |
| Subsidies for Shandong Site Levelling | 29,026,913.28 | 359,094.72 | 28,667,818.56 | Other income | ||
| Shandong Enterprise Development Funds | 19,285,039.00 | 218,907.06 | 19,066,131.94 | Other income | W.B.C.Z.Z. (2014) No.513, W.B.C.Z.Z. (2016) No.194, W.B.C.Z.Z. (2017) No.307 |
| PPS Project with Annual Production of 10,000 Tons | 13,238,499.92 | 913,000.02 | 12,325,499.90 | Other income | ||
| Grants for PPS Resin with Annual Production of 5,000 | 11,400,000.00 | 1,425,000.00 | 9,975,000.00 | Other income |
| Project | Deferred Income at the Beginning of This Period | New Subsidies in This Period | Amortization Expenses in This Period | Deferred Income at the End of This Period | Items Reported for Amortization in This Period | Note |
| Tons and PPS Composite Material with Annual Production of 6,000 Tons | ||||||
| Enterprise Development Funds of Advanced Manufacturing Industrial Park | 8,690,037.83 | 99,125.88 | 8,590,911.95 | Other income | ||
| Effective Input Expansion for Industry in 2016 | 7,022,400.00 | 478,800.00 | 6,543,600.00 | Other income |
| Funds for Key Projects of Industry Revitalization and Technological Upgrading in 2012 | 5,351,785.70 | 713,571.42 | 4,638,214.28 | Other income | According to Z.C.Q. (2012) No. 276 of Zhejiang Provincial Department of Finance and Economy and Information Technology Committee of Zhejiang, the company obtained the special funds for new cephalosporin antibiotics project with the annual production of 10T. | |
| Fiscal Subsidies for Low-rent Housing | 6,339,417.24 | 120,428.58 | 6,218,988.66 | Other income | ||
| Subsidies for Shandong Land Leasing for Dormitories | 5,123,252.66 | 125,115.78 | 4,998,136.88 | Other income | ||
| Subsidies for Input in Shangyu Biochemical Infrastructure | 4,898,735.72 | 158,885.94 | 4,739,849.78 | Other income |
| Public Testing Service | 4,000,000.00 | 499,999.98 | 3,500,000.02 | Other income |
| Project | Deferred Income at the Beginning of This Period | New Subsidies in This Period | Amortization Expenses in This Period | Deferred Income at the End of This Period | Items Reported for Amortization in This Period | Note |
| Platform Construction Project | ||||||
| Subsidies for Infrastructure Fee | 8,275,875.00 | 398,812.50 | 7,877,062.50 | Other income |
| Compensation for 2017 Environment Resources Project | 3,840,000.00 | 240,000.00 | 3,600,000.00 | Other income | ||
| Subsidies for Land and Infrastructure Construction | 3,242,880.00 | 405,360.00 | 2,837,520.00 | Other income |
| 2017 Special Fiscal Funds for Real Economy Revitalization (Traditional Industry Transformation) | 2,679,299.82 | 269,614.28 | 2,409,685.54 | Other income | X.C.Q. (2019) No.151 | |
| Subsidies for RTO Project | 1,666,666.86 | 199,999.98 | 1,466,666.88 | Other income | W.C.Q.Z. (2014) No.207 | |
| 2017 Special Funds for Marine Economy Development | 2,000,000.00 | 2,000,000.00 | Other income | S.Y.C.J. (2018) No.12 | ||
| Special Funds for High Quality Development of Manufacturing | 2,109,286.90 | 152,478.60 | 1,956,808.30 | Other income | X.J.X. (2020) No.79 | |
| Enterprise Development Funds (Shandong Refinement) | 52,224,561.00 | 52,224,561.00 | Other income | W.B.C.Z.Z. (2020) No.34 |
| Special Funds for Technological Upgrading | 20,500,000.00 | 20,500,000.00 | Other income |
| Special Funds for Warehouse Logistics Assistance Program | 25,080,000.00 | 25,080,000.00 | Other income | H.F.G.T.Z. (2020) No.542 | ||
| Other Subsidies | 12,342,952.49 | 7,660,000.00 | 1,485,693.25 | 18,517,259.24 | Other income | |
| Subtotal | 873,066,181.34 | 53,240,000.00 | 40,228,500.25 | 886,077,681.09 |
2) Government subsidies related to income and used for compensating relevant costs or losses incurred by the Company
| Project | Amount | Items Reported | Note |
| Government Rewards | 3,542,654.00 | Other income | Related to income |
| Others | 29,785,782.43 | Other income | Related to income |
| Subtotal | 33,328,436.43 |
3) Interest subsidies
| Project | Deferred Income at the Beginning of This Period | Amount of New Subsidies in the Current Period | Carry-forwarded Subsidies in the Current Period | Deferred Income at the End of This Period | Items Reported in the Current Period | Note |
| Interest subsidies | 2,823,740.28 | 2,823,740.28 | Financial expenses |
| Subtotal | 2,823,740.28 | 2,823,740.28 |
4) Government subsidies recorded into P/L in the current period is RMB 73,556,936.68
(2) Repayment of Government Subsidies
□ Applicable √ Not applicable
VIII. Changes in the Scope of Consolidation
1. Changes in the Scope of Consolidation for Other Reasons
Acquisition and disposal of subsidiaries during the reporting period
√ Applicable □ Not applicable
| Company Name | Method of acquisition and disposal of subsidiaries during the reporting period | Impact on overall production management and performance |
| Zhejiang NHU Nylon Materials Co., Ltd. | Newly established | N/A |
Zhejiang NHU Nylon Materials Co., Ltd. was established on March 5, 2021, as a wholly-owned subsidiary of ZhejiangNHU Co., Ltd.IX. Equity in Other Entities
1. Equity in Subsidiaries
(1) Composition of Important Subsidiaries
| Name of Subsidiaries | Main Place of Business | Registered Address | Business Nature | Shareholding Percentage | Acquisition Method | |
| Direct | Indirect | |||||
| Shangyu Bio-Chem | Shangyu, Zhejiang | Shangyu, Zhejiang | Manufacturing | 100.00% | Establishment | |
| Shandong Pharmaceutical | Weifang, Shandong | Weifang, Shandong | Manufacturing | 100.00% | Establishment | |
| NHU (Hong Kong) | Hong Kong, China | Hong Kong, China | Commerce | 100.00% | Establishment | |
| Zhejiang Special Materials | Shangyu, Zhejiang | Shangyu, Zhejiang | Manufacturing | 100.00% | Establishment | |
| Shandong Amino-acids | Weifang, Shandong | Weifang, Shandong | Manufacturing | 100.00% | Establishment | |
| Shandong Vitamins | Weifang, Shandong | Weifang, Shandong | Manufacturing | 100.00% [Note 1] | Establishment | |
| NHU EUROPE GmbH | Luneburg, Germany | Luneburg, Germany | Trade | 51.00% [Note 2] | Establishment | |
| Shandong NHU Holdings Co., Ltd. | Weifang, Shandong | Weifang, Shandong | Service | 100.00% | Establishment | |
| Heilongjiang Biological Technology | Suihua, Heilongjiang | Suihua, Heilongjiang | Manufacturing | 100.00% | Establishment |
Explanations on the fact that the proportion of the shares held by a subsidiary differs from that of voting rights:
[Note 1]: Held through the subsidiary Shandong NHU Holdings Co., Ltd.[Note 2]: Held through the subsidiary NHU (Hong Kong) Trading Co., Ltd.
(2) Important Non-Wholly Owned Subsidiaries
Unit: RMB
| Name of Subsidiaries | Minority Shareholding Percentage | Profit or Loss Attributable to Minority Shareholders in the Current Period | Dividends Declared to Minority Shareholders in the Current Period | Minority Shareholders' Equity Balance at the End of the Period |
| NHU EUROPE GmbH | 49.00% | 8,336,446.88 | 13,181,833.00 | 59,754,458.04 |
(3) Main Financial Information of Important Non-Wholly Owned Subsidiaries
Unit: RMB
| Name of Subsidiaries | Closing Balance | Opening Balance | ||||||||||
| Current Assets | Non-current Assets | Total Assets | Current Liabilities | Non-current Liabilities | Total Liabilities | Current Assets | Non-current Assets | Total Assets | Current Liabilities | Non-current Liabilities | Total Liabilities | |
| NHU EUROPE GmbH | 719,681,547.47 | 103,611,569.82 | 823,293,117.29 | 657,546,493.74 | 43,798,750.00 | 701,345,243.74 | 557,333,673.19 | 109,005,921.19 | 666,339,594.38 | 478,792,469.90 | 49,635,844.80 | 528,428,314.70 |
Unit: RMB
| Name of Subsidiaries | This Period's Amount of Occurrence | Amount Occurred in the Previous Period | ||||||
| Operating Income | Net Profit | Total Comprehensive Income | Cash Flow Generated by Operational Activities | Operating Income | Net Profit | Total Comprehensive Income | Cash Flow Generated by Operational Activities | |
| NHU EUROPE GmbH | 880,665,472.68 | 17,013,156.89 | 10,938,293.87 | 64,150,528.47 | 883,804,563.98 | 10,986,623.88 | 13,244,306.13 | 5,608,973.28 |
2. Equity in joint venture arrangements or affiliates
(1) Essential Joint Ventures or Affiliates
| Names of Joint Ventures or Affiliates | Main Place of Business | Registered Address | Business Nature | Shareholding Percentage | Accounting Treatment of Investment in Joint Ventures or Affiliates | |
| Direct | Indirect | |||||
| Zhejiang Chunhui Environmental Protection Energy Co., Ltd. | Shangyu, Zhejiang | Shangyu, Zhejiang | Manufacturing | 34.2857% | Equity Method Accounting | |
| DSM NHU Engineering Materials (Zhejiang) Co., Ltd. | Shangyu, Zhejiang | Shangyu, Zhejiang | Manufacturing | 40.00% | Equity Method Accounting | |
| Zhejiang Saiya Chemical Materials Co., Ltd. | Shangyu, Zhejiang | Shangyu, Zhejiang | Manufacturing | 49.00% | Equity Method Accounting | |
(2) Main Financial Information of Essential Affiliates
Unit: RMB
| Item | Closing balance / accrual of current period | Opening balance / accrual of previous period | ||||
| Zhejiang Chunhui Environmental Protection Energy Co., Ltd. | DSM NHU Engineering Materials (Zhejiang) Co., Ltd. | Zhejiang Saiya Chemical Materials Co., Ltd. | Zhejiang Chunhui Environmental Protection Energy Co., Ltd. | DSM NHU Engineering Materials (Zhejiang) Co., Ltd. | Zhejiang Saiya Chemical Materials Co., Ltd. | |
| Current Assets | 280,686,009.25 | 52,735,054.71 | 75,428,896.63 | 315,880,629.16 | 46,855,677.24 | 45,646,530.22 |
| Non-current Assets | 505,003,788.24 | 14,324,539.25 | 167,271,429.38 | 455,644,920.86 | 14,760,235.10 | 175,471,429.07 |
| Total Assets | 785,689,797.49 | 67,059,593.96 | 242,700,326.01 | 771,525,550.02 | 61,615,912.34 | 221,117,959.29 |
| Current Liabilities | 129,316,023.82 | 80,713,865.12 | 35,917,911.67 | 167,519,267.96 | 74,217,481.09 | 19,238,056.31 |
| Non-current Liabilities | 25,724,192.09 | 2,631,735.00 | 22,544,241.63 | 2,804,190.00 | ||
| Total Liabilities | 155,040,215.91 | 80,713,865.12 | 38,549,646.67 | 190,063,509.59 | 74,217,481.09 | 22,042,246.31 |
| Equity attributable to shareholders of the parent company | 630,649,581.58 | -13,654,271.16 | 204,150,679.34 | 581,462,040.43 | -12,601,568.75 | 199,075,712.98 |
| Share of net assets calculated based on the shareholding ratio | 216,222,623.59 | -5,461,708.46 | 100,033,832.88 | 199,358,330.80 | -5,040,627.50 | 97,547,099.36 |
| - Goodwill | 762,611.33 | 762,611.33 | ||||
| Book value of equity investment in affiliates | 216,222,623.59 | 100,796,444.21 | 199,358,330.80 | 98,309,710.69 | ||
| Operating Income | 196,623,027.27 | 54,950,710.21 | 139,702,151.72 | 120,727,989.91 | 17,313,621.45 | 86,849,470.71 |
| Net Profit | 49,187,541.15 | -1,052,702.41 | 5,074,966.36 | 20,939,914.44 | -11,463,484.97 | 1,343,850.82 |
| Total Comprehensive Income | 49,187,541.15 | -1,052,702.41 | 5,074,966.36 | 20,939,914.44 | -11,463,484.97 | 1,343,850.82 |
(3) Financial Summary of Non-essential Joint Ventures and Affiliates
Unit: RMB
| Item | Closing balance / accrual of current period | Opening balance / accrual of previous period |
| Affiliates: | -- | -- |
| Total book value of investments | 42,063,121.53 | 45,710,849.69 |
| The total count of the following items based on the shareholding ratios | -- | -- |
| --Net profit | -656,507.53 | -1,613,290.77 |
| --Total comprehensive income | -656,507.53 | -1,613,290.77 |
(4) Excess Losses Incurred by Joint Ventures or Affiliates
Unit: RMB
| Names of Joint Ventures or Affiliates | Accumulated unrecognized losses accumulated in the prior period | Unrecognized loss in the current period (or net profit shared in the current period) | Accumulated unrecognized losses at the end of the current period |
| Zhejiang Sanpo Polymer Co., Ltd. | -46,012,244.60 | -298,266.67 | -46,310,511.27 |
X. Risks Relating to Financial InstrumentsThe objective of the Company in engaging in risk management is to strike a balance between risks and returns, to minimize thenegative impact of risks on the Company's operating performance, and to maximize the interests of shareholders and other equityinvestors. Based on this risk management objective, the fundamental strategy of the Company's risk management is to identify andanalyze various risks to which the Company is exposed, establish appropriate risk tolerance bottoms and conduct risk management,and monitor various risks in a timely and reliable manner to keep them within bounds.The Company is exposed to various risks relating to financial instruments in its day-to-day operations, mainly including creditrisk, liquidity risk and market risk. The management has deliberated and approved policies to manage these risks, as summarizedbelow:
(I) Credit RiskThe credit risk refers to the risk of one party of a financial instrument suffering financial losses due to the other party's inabilityto perform its obligations.
1. Credit Risk Management Practice
(1) Credit Risk Evaluation Method
The Company assesses at each balance sheet date whether the credit risk of relevant financial instruments has increased
substantially since initial recognition. In determining whether credit risk has increased substantially since initial recognition, theCompany considers reasonable and substantiated information available without incurring unnecessary additional costs or efforts,including qualitative and quantitative analysis based on historical data, external credit risk ratings and forward-looking information.Based on a single financial instrument or a portfolio of financial instruments with similar credit risk profiles, the Companydetermines the change in the risk of default over the expected life of financial instruments by comparing the risk of default of thefinancial instruments at the balance sheet date with the risk of default at the initial recognition date.
The Company considers a significant increase in the credit risk of a financial instrument to have occurred when one or more ofthe following quantitative and qualitative criteria are triggered:
1) The quantitative criteria are mainly defined as an increase in the probability of default for the remaining duration on thebalance sheet date by more than a certain proportion compared to the time of initial recognition;
2) The qualitative criteria are mainly defined as material adverse changes in the debtors' operating or financial conditions,existing or anticipated changes in the technological, market, economic or legal environment that will have material adverse effects onthe debtors' ability to repay the Company, and so on.
(2) Definition of Defaulted and Credit Impaired Assets
The Company defines a financial asset as having defaulted when the financial instrument meets one or more of the followingconditions, the criteria of which are consistent with the definition of having incurred credit impairment:
1) The debtor runs into material financial difficulties;
2) The debtor violates the terms binding on it in the contract;
3) The debtor is highly likely to become insolvent or undergo other financial restructuring;
4) The creditor grants concessions to the debtor that the debtor would not have made in any other situation due to economic orcontractual considerations related to the debtor's financial difficulties.
2. Measurement of Expected Credit Losses
The key parameters for the measurement of expected credit losses include probability of default, loss given default andexposure to default. The Company considers quantitative analysis of historical data (such as counterparty ratings, types of guaranteesand pledges, and repayment methods) and forward-looking information to establish the probability of default, loss given default andexposure to default risk.
3. A reconciliation of the allowance for losses on financial instruments at the beginning and end of the period is detailed in thenotes to this section VII 3, 4 and 7 of the Financial Report.
4. Credit Risk Exposure and Concentration of Credit Risk
The Company's credit risk mainly arises from monetary funds, and accounts receivable. To control the above related risks, theCompany has taken the following measures, respectively.
(1) Monetary funds
The Company places bank deposits and other monetary funds in financial institutions with high credit ratings, thus its credit
risk is low.
(2) Accounts receivable
The Company continuously conducts credit evaluations of customers who choose credit transactions. Based on the creditevaluation results, the Company engages in transactions with approved and creditworthy customers and monitors their receivablebalances to ensure that the Company is not exposed to material bad debt risk.
Since the Company only deals with approved and creditworthy third parties, no collateral is required. The concentration ofcredit risk is managed on a customer basis. As of June 30, 2021, the Company has certain credit concentration risk, with 40.92%(35.19% on December 31, 2020) of the Company's accounts receivable originating from the top five customers in terms of balance.The Company does not hold any collateral or other credit enhancements on its accounts receivable balances.The Company's maximum exposure to credit risk is the book value of each financial asset in the balance sheet.(II) Liquidity RiskThe liquidity risk refers to the risk of a shortage of funds when the Company fulfills its obligation of settlement by cash orother financial assets. Liquidity risk may arise from the inability to sell financial assets at fair value promptly; or from the inability ofthe other party to repay its contractual debts; or from early maturity of debts; or from the inability to generate expected cash flows.To control this risk, the Company uses a combination of financing instruments including note settlement and bank Loan, andadopts an appropriate combination of long- and short-term financing methods to optimize the financing structure and maintain abalance between financing sustainability and flexibility. The Company has obtained bank credit lines from a number of commercialbanks to meet working capital requirements and capital expenditures.Classification of financial liabilities by remaining maturity
Unit: RMB
| Project | At the end of the reporting period | ||||
| Book Value | Undiscounted contractual amount | Within 1 Year | 1-3 years | 3 years or above | |
| Bank Loan | 9,624,275,893.96 | 10,179,010,336.67 | 4,125,617,367.31 | 5,499,429,748.01 | 553,963,221.35 |
| Notes Payable | 668,896,544.92 | 668,896,544.92 | 668,896,544.92 | ||
| Accounts Payable | 1,445,062,033.91 | 1,445,062,033.91 | 1,445,062,033.91 | ||
| Other Payables | 52,150,619.55 | 52,150,619.55 | 52,150,619.55 | ||
| Subtotal | 11,790,385,092.34 | 12,345,119,535.05 | 6,291,726,565.69 | 5,499,429,748.01 | 553,963,221.35 |
(Continued)
Unit: RMB
| Project | At the beginning of the reporting period | ||||
| Book Value | Undiscounted contractual amount | Within 1 Year | 1-3 years | 3 years or above | |
| Bank Loan | 7,776,288,840.18 | 8,221,866,812.16 | 3,874,954,917.32 | 4,176,224,771.56 | 170,687,123.28 |
| Notes Payable | 497,644,517.23 | 497,644,517.23 | 497,644,517.23 | ||
| Accounts Payable | 1,463,728,316.04 | 1,463,728,316.04 | 1,463,728,316.04 | ||
| Other Payables | 129,839,228.89 | 129,839,228.89 | 129,839,228.89 |
| Subtotal | 9,867,500,902.34 | 10,313,078,874.32 | 5,966,166,979.48 | 4,176,224,771.56 | 170,687,123.28 |
(III) Market Risk
The market risk refers to the risk in which the fair value or future cash flow of financial instruments changes due to the changeof market price. Market risk mainly includes interest rate risk and foreign exchange risk.
1. Interest Rate Risk
The interest rate risk refers to the risk in which the fair value or future cash flow of financial instruments changes due to thechange of market interest rate. The Company is exposed to fair value interest rate risk for fixed-rate interest-bearing financialinstruments, and to cash flow interest rate risk for floating-rate interest-bearing financial instruments. The Company determines theproportion of fixed- and floating-rate financial instruments based on market circumstances and maintains an appropriate mix offinancial instruments through regular review and monitoring. The Company's exposure to cash flow interest rate risk relates primarilyto the Company's Loan that bear interest at floating rates.
As of June 30, 2021, the Company's bank Loan at floating interest rates is RMB 9,624,275,893.96 (RMB7,776,288,840.18 onDecember 31, 2020). A hypothetical change of 50 basis points in interest rates, assuming other variables remain unchanged, wouldnot have a material impact on the Company's total profit and shareholders' equity.
2. Foreign Exchange Risk
The foreign exchange risk refers to the risk in which the fair value or future cash flow of financial instruments changes due tothe change of foreign exchange rate. The Company's exposure to changes in foreign exchange rates relates primarily to theCompany's assets and liabilities denominated in foreign currencies. For assets and liabilities denominated in foreign currencies, in theevent of a short-term imbalance, the Company will buy or sell foreign currencies at market rates when necessary to ensure that thenet risk exposure is maintained at an acceptable level.
Details of the Company's period-end assets and liabilities denominated in foreign currencies are described in VII 57(1) of thissection of the Financial Report.XI. Disclosure of Fair Values
1. Fair values of the assets and liabilities at the end of the period
Unit: RMB
| Item | Fair values at period-end | |||
| First level measurement ata fair value | Second level measurement at fair value | Third level measurement at fair value | Total | |
| I. Constant measurement at fair value | -- | -- | -- | -- |
| 1. Trading Financial Assets | 6,426,200.12 | 1,320,000,000.00 | 1,326,426,200.12 | |
| Financial Assets at Fair Value through Profit or Loss in This Period | 6,426,200.12 | 1,320,000,000.00 | 1,326,426,200.12 | |
| Including: Principal-Protected Floating -Income | 1,320,000,000.00 | 1,320,000,000.00 | ||
| Financial Products | ||||
| Derivative Financial Assets | 6,426,200.12 | 6,426,200.12 | ||
| 2. Receivables Financing | 33,076,624.55 | 33,076,624.55 | ||
| 3. Investment in Other Equity Instruments | 22,998,147.55 | 22,998,147.55 | ||
| Total assets constantly measured at fair value | 6,426,200.12 | 1,376,074,772.10 | 1,382,500,972.22 |
2. For the continuous and non-continuous second-level fair value measurement items, the valuationtechniques adopted and the qualitative and quantitative information of important parametersThe fair value was determined based on the quoted forward exchange rate published by Bank of China Limited. at the end ofthe period.
3. For the continuous and non-continuous third-level fair value measurement items, the valuationtechniques adopted and the qualitative and quantitative information of important parameters
1. For the purchased principal-protected floating-income short-term bank financial products and structured deposits, their fairvalues were determined by their face values.
2. For bank acceptance bills, their fair values were determined by their face values.
3. The Company adopted the cost of investment as a reasonable estimate of fair value because there were no significantchanges in the business environment, operating conditions and financial position of the invested companies, Second Pharma Co.,Ltd.and Shanghai NewMargin Yongjin Eqiuty Enterprise
XII. Related Parties and Related-party Transactions
1. The Company's Parent Company
| Name of parent company | Registered Address | Business Nature | Registered Capital | Shareholding ratio of the parent company | Proportion of voting rights of the parent company |
| NHU Holding Group Co., Ltd. | Xinchang, Zhejiang | Manufacturing | 120 million | 48.55% | 48.55% |
Description of the Company's parent company
The ultimate controlling party of the Company is a natural person, Hu Baifan.
2. Information about the Company's subsidiaries
Details of the Company's subsidiaries are provided in the notes to this section IX.1 of the Financial Report.
3. Information about the Company's joint ventures and affiliates
Details of the Company's essential joint ventures and affiliates are provided in the notes to this section IX.2 of the Financial Report.Here are the information about other joint ventures and affiliates that have related-party transactions with the Company in the currentperiod or have balance from related-party transactions with the Company in the previous period:
| Names of joint ventures and affiliates | Relationship with the Company |
| Zhejiang Chunhui Environmental Protection Energy Co., Ltd. | Affiliates of the Company |
| Zhejiang Saiya Chemical Materials Co., Ltd. | Affiliates of the Company |
| DSM NHU Engineering Materials (Zhejiang) Co., Ltd. | Affiliates of the Company |
4. Information about other related parties
| Names of other related parties | Relationship between the Company and other related parties |
| SYNCHEM INTERNATIONAL CO.,LTD | Joint-stock company by the Company's actual controller |
| Beijing Winsunny Pharmaceutical CO.,LTD | Controlled by NHU Holding Group Co., Ltd. |
| Zhejiang ASEN Pharmaceutical Co.,Ltd | Controlled by NHU Holding Group Co., Ltd. |
| Xinchang County Hechun Greening Co., Ltd | Controlled by NHU Holding Group Co., Ltd. |
| Zhejiang Deli Equipment Co., Ltd. | Controlled by NHU Holding Group Co., Ltd. |
| Front Pharmaceutical Plc. | Controlled by NHU Holding Group Co., Ltd. |
| Xinchang County NHU Real Estate Co., Ltd | Controlled by NHU Holding Group Co., Ltd. |
| Suihua NHU Real Estate Co., Ltd | Controlled by NHU Holding Group Co., Ltd. |
| Weifang NHU Real Estate Co., Ltd | Controlled by NHU Holding Group Co., Ltd. |
| Qionghai Heyue Property Services Co., Ltd | Controlled by NHU Holding Group Co., Ltd. |
| Boao Qionghai Holliyard Hotel Management Co., Ltd | Controlled by NHU Holding Group Co., Ltd. |
| Shaoxing Heyue Property Services Co., Ltd | Controlled by NHU Holding Group Co., Ltd. |
| Shangyu Shaoxing NHU Real Estate Co., Ltd | Controlled by NHU Holding Group Co., Ltd. |
| Xinchang Qinjin Investment Co., Ltd. | Holding company by the Company's actual controller |
| Shaoxing Formost Material Co., Ltd. | Joint-stock company by the Company's actual controller |
| Heilongjiang Haotian Corn Development Co., Ltd. | Subsidiary as minority shareholder |
Other notesCustomer Three holds 25% of the equity in NHU Europe GmbH, a controlling subsidiary of the Company's subsidiary, NHU(Hong Kong) Trading Co., Ltd. For the sake of prudence, the Company discloses the transactions and payment balances betweenCustomer Three and the subsidiary NHU Europe GmbH in related-party transactions.
5. Information about related-party transactions
(1) Related-party transactions involving purchase and selling of merchandise and provision and acceptanceof labor servicesMerchandise purchase and acceptance of labor services
Unit: RMB
| Related parties | Content of the related - party transaction | This Period's Amount of Occurrence | Approved transaction limit | Over the transaction limit or not | Previous Period's Amount of Occurrence |
| Zhejiang Deli Equipment Co., Ltd. | Purchase of merchandise | 22,406,681.48 | 90,000,000.00 | No | 25,086,854.11 |
| Zhejiang Chunhui Environmental Protection Energy Co., Ltd. | Purchase of steam | 43,692,487.59 | 70,200,000.00 | No | 32,340,736.57 |
| Waste treatment service fee | 68,688.20 | 133,030.80 | |||
| Zhejiang Saiya Chemical Materials Co., Ltd. | Purchase of merchandise | 100,257,926.52 | 175,000,000.00 | No | 75,061,380.31 |
| Zhejiang ASEN Pharmaceutical Co.,Ltd | Purchase of merchandise | 1,255,535.33 | 1,019,964.60 | ||
| Xinchang County Hechun Greening Co., Ltd | Purchase of merchandise | 3,981,660.62 | 9,089,239.86 | ||
| Boao Qionghai Holliyard Hotel Management Co., Ltd | Catering and accommodation services | 64,855.00 | 41,229.00 | ||
| Qionghai Heyue Property Services Co., Ltd | Property management | 375,616.74 | 317,448.87 | ||
| Shaoxing Heyue Property Services Co., Ltd | Property management | 187,934.15 | 212,058.42 | ||
| Xinchang County NHU Real Estate Co., Ltd | Catering and accommodation services | 465,980.79 | 270,148.21 | ||
| Shandong Bin'an Technology Co., Ltd. | Training fee | 185,789.16 | 0.00 | ||
| Subtotal | 172,943,155.58 | 143,572,090.75 |
Sales of merchandise and provision of services
Unit: RMB
| Related parties | Content of the related - party transaction | This Period's Amount of Occurrence | Amount Occurred in the Previous Period |
| SYNCHEM INTERNATIONAL CO.,LTD | Pharmaceutical intermediates | 78,979,450.67 | 55,169,808.72 |
| Front Pharmaceutical Plc. | Testing fee | 6,018.87 | |
| Beijing Winsunny Pharmaceutical CO.,LTD | Pharmaceutical intermediates | 141,509.43 | |
| Zhejiang ASEN Pharmaceutical Co.,Ltd | Pharmaceutical intermediates | 297,917.51 | 566,371.68 |
| DSM NHU Engineering Materials (Zhejiang) Co., Ltd. | New materials | 40,144,943.15 | 13,390,484.38 |
| Utility bill | 525,305.20 | 181,002.80 | |
| Loading and unloading charges | 28,245.28 | ||
| Total | 120,117,371.24 | 69,313,686.45 |
(2) Related leasing
The Company being the lessor:
Unit: RMB
| Name of the lessee | Type of the leased assets | Rental income confirmed in this period | Rental income confirmed in the previous period |
| Boao Qionghai Holliyard Hotel Management Co., Ltd | Land use rights and houses | 60,000.00 | |
| DSM NHU Engineering Materials (Zhejiang) Co., Ltd. | Land use rights and houses | 190,139.67 | 191,189.91 |
| NHU Holding Group Co., Ltd. | Land use rights and houses | 16,513.76 | 27,522.94 |
The Company being the lessee:
Unit: RMB
| Name of the lessor | Type of the leased assets | Lease expense recognized during the current period | Lease expense recognized during the previous period |
| NHU Holding Group Co., Ltd. | Land use rights and houses | 905,906.40 | 905,906.40 |
(3) Related guarantee
The Company being the secured party
Unit: RMB
| Guarantor | Guarantee Amount | Starting date | Maturity date | Guarantee fulfilled |
| completely or not | ||||
| NHU Holding Group Co., Ltd. | 500,000,000.00 | January 23, 2019 | December 21, 2023 | No |
| 200,000,000.00 | July 31, 2020 | July 18, 2022 | No | |
| 200,000,000.00 | July 31, 2020 | June 15, 2022 | No | |
| 300,000,000.00 | November 17, 2020 | November 16, 2022 | No | |
| 500,000,000.00 | December 03, 2020 | September 21, 2025 | No | |
| 200,000,000.00 | January 20, 2021 | January 19, 2023 | No | |
| 100,000,000.00 | April 14, 2021 | April 12, 2023 | No | |
| Subtotal | 2,000,000,000.00 |
(4) Remuneration to key management personnel
Unit: RMB
| Item | This Period's Amount of Occurrence | Amount Occurred in the Previous Period |
| Salary of key management personnel | 5,177,598.00 | 2,982,381.00 |
(5) Other related-party transactions
(1) The owners of Boao Resort Center apartments entrusted the operation and management of the serviced apartments to BoaoQionghai Holliyard Hotel Management Co., Ltd
(2) The amount of goods sold by NHU EUROPE GmbH to Customer Three during the current period was RMB 55,983,045.96, andthe balance of accounts receivable at the end of the period was RMB 7,751,954.68
6. Receivables and payables of the related parties
(1) Receivables
Unit: RMB
| Item Name | Related parties | Closing Balance | Opening Balance | ||
| Book Balance | Bad Debt Provision | Book balance | Bad debt provision | ||
| Accounts receivable | SYNCHEM INTERNATIONAL CO.,LTD | 28,290,235.23 | 1,249,559.78 | 24,564,693.12 | 1,228,234.66 |
| DSM NHU Engineering Materials (Zhejiang) Co., Ltd. | 22,299,897.69 | 1,114,994.89 | 18,972,791.53 | 948,639.58 | |
| Subtotal | 50,590,132.92 | 2,364,554.67 | 43,537,484.65 | 2,176,874.24 | |
| Prepayments | Zhejiang Deli Equipment Co., Ltd. | 21,549,049.10 | |||
| Subtotal | 21,549,049.10 | ||||
| Other Receivables | Zhejiang Chunhui Environmental Protection Energy Co., Ltd. | 80,000.00 | 80,000.00 | ||
| Subtotal | 80,000.00 | 80,000.00 | |||
| Other Non-current Assets | Shangyu Shaoxing NHU Real Estate Co., Ltd | 168,339,247.00 | 101,003,548.00 | ||
| Subtotal | 168,339,247.00 | 101,003,548.00 |
(2) Payables
Unit: RMB
| Item Name | Related parties | Closing balance | Opening Balance |
| Accounts Payable | Zhejiang Deli Equipment Co., Ltd. | 3,085,920.94 | 7,314,438.78 |
| Zhejiang Chunhui Environmental Protection Energy Co., Ltd. | 8,159,367.60 | 7,449,905.70 | |
| Zhejiang Saiya Chemical Materials Co., Ltd. | 18,782,927.22 | 115.04 | |
| Second Pharma Co.,Ltd. | 6,408.00 | ||
| Suihua NHU Real Estate Co., Ltd | 10,374,876.83 | 10,374,865.03 | |
| Xinchang County Hechun Greening Co., Ltd | 777,984.05 | 1,943,036.80 | |
| Subtotal | 41,187,484.64 | 27,082,361.35 | |
| Contract liabilities | Zhejiang Deli Equipment Co., Ltd. | 14,700.89 | 13,009.64 |
| Zhejiang ASEN Pharmaceutical Co.,Ltd | 1,858.41 | ||
| Subtotal | 14,700.89 | 14,868.05 | |
| Other Payables | Zhejiang Deli Equipment Co., | 663,500.00 | 3,500.00 |
| Ltd. | |||
| Xinchang County Hechun Greening Co., Ltd | 480.00 | ||
| Weifang NHU Real Estate Co., Ltd | 87,148,146.46 | ||
| Subtotal | 663,500.00 | 87,152,126.46 |
XIII. Commitments and Contingencies
1. Significant commitments
Important commitments on the balance sheet day
1. Forward exchange settlement contracts
According to the "Global Capital Market Transactions" and related transaction application forms signed between the Companyand HSBC Bank (China) Limited Hangzhou Branch, the "Master Agreement on Financial Derivatives Transactions in the ChinaInterbank Market (2009 Version)" and supplementary agreements signed with DBS Bank (China) Limited Shanghai Branch, and the"ISDA 2002 MASTER AGREEMENT" signed with Bank of China (Hong Kong) Limited, the details of the Company's undeliveredforward exchange settlement contracts as of June 30, 2021 are as follows:
| Currency | Nominal amount in USD | Nominal amount in Euro | Agreed exchange rate | Closing date |
| USD/EUR | 5,000,000.00 | 6.4710 | 2021/7/16 | |
| 5,000,000.00 | 6.4660 | 2021/7/16 | ||
| 5,000,000.00 | 6.4760 | 2021/7/26 | ||
| 5,000,000.00 | 6.4705 | 2021/7/26 | ||
| 10,000,000.00 | 6.5390 | 2021/7/26 | ||
| 4,000,000.00 | 7.8920 | 2021/7/26 | ||
| 7,000,000.00 | 7.7832 | 2021/7/26 | ||
| 4,000,000.00 | 7.7165 | 2021/8/16 | ||
| 4,000,000.00 | 7.9142 | 2021/8/25 | ||
| 4,000,000.00 | 7.7220 | 2021/8/25 | ||
| 5,000,000.00 | 7.9580 | 2021/10/22 | ||
| 5,000,000.00 | 7.9580 | 2021/11/22 | ||
| Subtotal | 30,000,000.00 | 33,000,000.00 |
2. Various types of unexpired guarantees issued
As of June 30, 2021, the various types of unexpired guarantees issued by the Company and its subsidiaries are as follows：
| Issuing bank | Applicant | Type of guarantee | Amount of guarantee | Conditions of issuance |
| Bank of China Limited Xinchang Sub-branch | The Company | Performance guarantee | USD128,710.00 | Use of bank credit lines |
| Performance guarantee | USD101,540.00 | Use of bank credit lines | ||
| HSBC Bank (China) Co., | The Company | Financing guarantee | EUR 10,000,000.00 | Use of bank credit lines |
| Ltd. Hangzhou Branch | Financing guarantee | EUR 10,000,000.00 | Use of bank credit lines |
3. Unexpired letters of credit issued
As of June 30, 2021, the unexpired letters of credit issued by the Company and its subsidiaries are as follows:
| Issuing bank | Applicant | Letter of credit balance | Conditions of issuance |
| Bank of China Limited Xinchang Sub-branch | The Company | ||
| USD 254,151.00 | Use of bank credit lines | ||
| USD 45,450.00 | Use of bank credit lines | ||
| USD 751,426.20 | Use of bank credit lines | ||
| USD 214,693.20 | Use of bank credit lines | ||
| USD 1,019,792.70 | Use of bank credit lines |
| China Construction Bank Corporation Weifang Binhai Sub-branch | Shandong Pharmaceutical | EUR 2,740,000.00 | Use of bank credit lines |
| Bank of China Limited Shangyu Sub-branch | Zhejiang Special Materials | JPY 220,000,000.00 | Security deposit of JPY 220,000,000.00 |
| Bank of Communications Shaoxing Xinchang Sub-branch | The Company | CNY 100,000,000.00 | Security deposit of CNY 10,000,000.00 |
4. "Note pool" business
The Company and its subsidiary, NHU Import & Export, entered into the "Bank of Communications Yun Tong Account NotePooling Service Agreement" with Bank of Communications Co., Ltd., under which the Company pledged and endorsed bankacceptances to the depositary bank, constituting a pledged note pool; and the Company opens a margin account for the note pool, todeposit margins as security for the credit granted under the note pledge and to deposit the pledged bank acceptances for payment. Theavailable credit limit of the Company's pledge is the sum of the pledged notes and the immediate balance of the margin account lessthe used pledged notes, and the agreement stipulates that the sum of the pledged notes and the margin account of the Group shall notbe less than the pledged amount used for issuing the notes. The Company and its subsidiaries Shangyu NHU Bio-Chem, ZhejiangPharmaceutical, Zhejiang Special Material, Shaoxing Yuchen New Materials, Shandong Pharmaceutical, Shandong Vitamin,Shandong Amino-acids Acid, Heilongjiang Biotechnology, Shandong Fine Chemical, Heilongjiang Xinhao Thermal Power,Xinchang Vitamin and Zhejiang Vityesun entered into the "Note Pool Business Cooperation Agreement" with China Zheshang BankCo., Ltd., under which the Company pledged the asset pool or the note pool as security and opened a margin account for the notepool to pay the margin at a certain ratio, with no specific agreement on the amount of the margin. As of June 30, 2021, the balance ofbank acceptance notes pledged by the Company amounted to RMB 440,436,969.40 and the deposit of RMB 196,531,116.11 in thenote pool with China Zheshang Bank Co., Ltd.XIV. Events after the Balance Sheet DateAs of the date when this Financial Statement was approved for external reporting, the Company had no other material eventsafter the balance sheet date.
XV. Other Significant Matters
1. Subsection information
(1) Basis for determining the reporting subsection and the accounting policyThe Company determines the reporting subsection according to the internal organizational structure, management requirements,and internal reporting system, as well as the industry sections. Assets and liabilities used jointly by the sections are allocated amongthe different sub-sections in proportion to their scales.
(2) Financial information of the reporting subsection
Unit: RMB
| Item | Pharmaceutical chemicals | Others | Inter-section offset | Total |
| Main business revenue | 7,130,020,338.49 | 267,320,671.46 | 216,751,757.40 | 7,180,589,252.55 |
| Main business cost | 3,705,929,273.76 | 219,967,294.49 | 216,751,757.40 | 3,709,144,810.85 |
| Total assets | 31,834,715,605.92 | 2,413,726,315.89 | 600,467,111.90 | 33,647,974,809.91 |
| Total liabilities | 12,696,364,683.97 | 1,260,942,650.95 | 600,467,111.90 | 13,356,840,223.02 |
2. Others
(1) Matters related to the Employee Stock Ownership Plan
On November 11, 2020, the Company held the Second Extraordinary General Assembly of 2020 to deliberate and approve theproposals related to the Employee Stock Ownership Plan, including the Third Employee Stock Ownership Plan of Zhejiang NHU Co.,Ltd. (Draft) and its Summary, and approved the implementation of the Third Employee Stock Ownership Plan of the Company. Theself-financing source of the holders of this Employee Stock Ownership Plan is the legal remuneration of the employees of theCompany, self-financing and other means permitted by laws and administrative regulations, with the amount of capital contributionnot exceeding RMB 153 million and the capital allotment not exceeding RMB 153 million (bank borrowing or major shareholderborrowing) in the ratio of 1:1, for a total amount of funds not exceeding RMB 306 million. The occupancy fee of the majorstockholder borrowing is 6%, and the interest of the corresponding proportion of the principal is returned according to the settlementtime and proportion of the stock ownership plan, but the interest is not charged when the loss or gain of the stock ownership plan islower than the fee (including the management fee, transaction fee, interest of the allotment part, etc.). As of February 26, 2021, theCompany's Third Employee Stock Ownership Plan purchased a total of 8,442,935 shares of the Company through secondary marketbidding transactions, accounting for 0.39% of the total share capital of the Company, with a transaction amount ofRMB303,710,918.74 and an average transaction price of approximately RMB35.97 per share, thus completing the purchase of sharesunder the Company's Third Employee Stock Ownership Plan.
(2) Purchases of financial products with funds raised
The Company held the 2020 Annual General Assembly on April 21, 2021, at which the "Proposal on the Use of Part of UnusedFunds Raised for Cash Management" was deliberated and approved, agreeing that the Company should use unused funds raised up to
RMB3.57 billion (including RMB3.57 billion) for cash management and purchase short-term financial products with high security,good liquidity and capital protection agreement for a period of not more than 12 months from the date of approval at the 2020 AnnualGeneral Assembly to the 2021 General Assembly, on a rolling basis, provided that the normal operation of the investment projects ofthe funds raised is not affected. As of June 30, 2021, the actual balance of financial products and structured deposits purchased by theCompany with temporarily idle funds raised was RMB 3.57 billion.XVI. Notes to Main Items in the Financial Statements of the Parent Company
1. Accounts receivable
(1) Categorical Disclosure of Accounts Receivable
Unit: RMB
| Category | Closing Balance | Opening Balance | ||||||||
| Book Balance | Bad Debt Provision | Book Value | Book balance | Bad Debt Provision | Book Value | |||||
| Amount | Percentage | Amount | Accrued Proportion | Amount | Percentage | Amount | Accrued Proportion | |||
| Accounts Receivables with the Bad Debt Provision Accrued Based on Combinations | 888,322,861.11 | 100.00% | 44,416,143.06 | 5.00% | 843,906,718.05 | 741,143,885.29 | 100.00% | 37,057,194.26 | 5.00% | 704,086,691.03 |
| Total | 888,322,861.11 | 100.00% | 44,416,143.06 | 5.00% | 843,906,718.05 | 741,143,885.29 | 100.00% | 37,057,194.26 | 5.00% | 704,086,691.03 |
Bad debt provision based on combinations
Unit: RMB
| Name | Closing Balance | ||
| Book balance | Bad Debt Provision | Accrued proportion | |
| Within 1 Year | 888,322,861.11 | 44,416,143.06 | 5.00% |
Disclosure by age
Unit: RMB
| Aging | Closing Balance |
| Within 1 Year (Including 1 Year) | 888,322,861.11 |
| Total | 888,322,861.11 |
(2) Provision for Bad Debts Accrued, Recovered or Reversed in the Current Period
Provision for bad debts in the current period:
Unit: RMB
| Category | Opening Balance | Amount of Changes in the Current Period | Closing Balance | |||
| Accrued | Recovered or Reversed | Written Off | Others | |||
| Bad Debt Provision Based on Combinations | 37,057,194.26 | 7,358,948.80 | 44,416,143.06 | |||
| Total | 37,057,194.26 | 7,358,948.80 | 44,416,143.06 | |||
(3) Accounts Receivable of the Top Five Balances at the End of the Period Collected by Indebted Parties
Unit: RMB
| Name of Unit | Balance of Accounts Receivable at the End of the Period | As a Percentage of Total Other Receivables at the End of the Period | Bad Debt Provision at the End of the Period |
| Customer 1 | 482,605,460.05 | 54.33% | 24,130,273.00 |
| Customer 2 | 88,345,208.00 | 9.95% | 4,417,260.40 |
| Customer 3 | 71,589,326.08 | 8.06% | 3,579,466.30 |
| Customer 4 | 44,596,983.78 | 5.02% | 2,229,849.19 |
| Customer 5 | 24,876,357.06 | 2.80% | 1,243,817.85 |
| Total | 712,013,334.97 | 80.16% |
2. Other receivables
Unit: RMB
| Item | Closing Balance | Opening Balance |
| Dividends Receivable | 186,000,000.00 | |
| Other Receivables | 3,979,535,890.92 | 4,247,680,763.92 |
| Total | 4,165,535,890.92 | 4,247,680,763.92 |
(1) Dividends Receivable
1) Classification of Dividends Receivable
Unit: RMB
| Project (or Invested Unit) | Closing Balance | Opening Balance |
| Shandong Pharmaceutical | 186,000,000.00 | |
| Total | 186,000,000.00 |
(2) Other receivables
1) Other receivables categorized by the nature of the funds
Unit: RMB
| Nature of the funds | Closing balance | Opening Balance |
| Guarantee Deposit | 98,597,037.50 | 98,617,037.50 |
| Export Refunds | 6,807,503.13 | 2,982,236.49 |
| Employee Imprest | 3,378,537.00 | 3,754,737.00 |
| Temporary Payments Receivable | 178,933.01 | |
| Borrowed Funds | 4,075,350,397.87 | 4,361,194,541.67 |
| Others | 758,082.17 | 472,076.44 |
| Total | 4,184,891,557.67 | 4,467,199,562.11 |
2) Bad Debt Provision
Unit: RMB
| Bad Debt Provision | Phase One | Phase Two | Phase Three | Total |
| Expected Credit Losses in the Next 12 Months | Expected credit losses for the entire extension (without credit impairment) | Expected Credit Losses for the Entire Extension (with Credit Impairment) | ||
| Balance on January 1, 2021 | 218,136,891.03 | 546,150.58 | 835,756.58 | 219,518,798.19 |
| Balance in the Current Period on January 1, 2021 | —— | —— | —— | —— |
| --Transfer to Phase Two | -88,078.75 | 88,078.75 | ||
| --Transfer to Phase Three | -89,692.30 | 89,692.30 | ||
| Provisions in the Current Period | -14,189,368.31 | -192,222.03 | 218,458.90 | -14,163,131.44 |
| Balance on June 30, 2021 | 203,859,443.97 | 352,315.00 | 1,143,907.78 | 205,355,666.75 |
Book balance changes with significant changes in loss provision in the current period
□ Applicable √ Not applicable
Disclosure by age
Unit: RMB
| Aging | Closing Balance |
| Within 1 Year (Including 1 Year) | 4,083,996,382.60 |
| 1 to 2 Years | 1,761,574.99 |
| 2 to 3 years | 448,461.51 |
| 3 years or above | 98,685,138.57 |
| 3 to 4 Years | 4,021.95 |
| 4 to 5 Years | 98,029,884.29 |
| 5 Years or above | 651,232.33 |
| Total | 4,184,891,557.67 |
3) Provision for Bad debts Accrued, Recovered or Reversed in the Current Period
Provision for bad debts in the current period:
Unit: RMB
| Category | Opening Balance | Amount of Changes in the Current Period | Closing Balance | |||
| Accrued | Recovered or Reversed | Written Off | Others | |||
| Bad Debt Provision Based on Combinations | 219,518,798.19 | -14,163,131.44 | 205,355,666.75 | |||
| Total | 219,518,798.19 | -14,163,131.44 | 205,355,666.75 | |||
4) Other Receivables of the Top Five Closing Balances Collected by Indebted Parties
Unit: RMB
| Name of Unit | Nature of the Funds | Balance at the End of the Period | Aging | As a Percentage of Total Other Receivables at the End of the Period | Bad debt provision at the end of the period |
| Heilongjiang Biological Technology | Borrowed Funds | 1,375,180,313.90 | Within 1 Year | 32.86% | 68,759,015.70 |
| Shandong Amino-acids | Borrowed Funds | 902,126,300.98 | Within 1 Year | 21.56% | 45,106,315.05 |
| Shandong Jinghua | Borrowed Funds | 562,274,895.47 | Within 1 Year | 13.43% | 28,113,744.77 |
| Shandong Vitamins | Borrowed Funds | 488,395,602.76 | Within 1 Year | 11.67% | 24,419,780.14 |
| Zhejiang Special | Borrowed Funds | 339,684,229.18 | Within 1 Year | 8.12% | 16,984,211.46 |
3. Long-term equity investment
Unit: RMB
| Item | Closing Balance | Opening Balance | ||||
| Book Balance | Provision for decline in value | Book value | Book balance | Provision for decline in value | Book value | |
| Investment in subsidiaries | 6,833,278,842.12 | 6,833,278,842.12 | 6,173,278,842.12 | 6,173,278,842.12 | ||
| Investment in affiliates and joint ventures | 216,222,623.59 | 216,222,623.59 | 199,358,330.80 | 199,358,330.80 | ||
| Total | 7,049,501,465.71 | 7,049,501,465.71 | 6,372,637,172.92 | 6,372,637,172.92 | ||
(1) Investment in Subsidiaries
Unit: RMB
| The Invested Entity | Opening Balance (Book Value) | Decrease/Increase in the Current Period | Closing Balance (Book Value) | Closing balance of provision for decline in value | |||
| Investments Increased | Investment Decreased | Provision for impairment accrued | Others | ||||
| Xinchang Vitamins | 49,407,990.15 | 100,000,000.00 | 149,407,990.15 | ||||
| NHU Import & Export | 13,500,000.00 | 13,500,000.00 | |||||
| Boao Lidu | 54,020,492.00 | 54,020,492.00 | |||||
| Zhejiang VYS | 5,000,000.00 | 5,000,000.00 | |||||
| Shangyu Bio-Chem | 414,100,091.44 | 414,100,091.44 | |||||
| Shandong Pharmaceutical | 586,000,000.00 | 586,000,000.00 | |||||
| NHU (Hong Kong) | 16,406,160.00 | 16,406,160.00 | |||||
| Zhejiang Pharmaceutical | 480,000,000.00 | 480,000,000.00 | |||||
| Zhejiang | 554,844,108.53 | 554,844,108.53 | |||||
| Materials | |||||
| Total | -- | 3,667,661,342.29 | -- | 87.64% | 183,383,067.12 |
| Special Materials | |||||||
| Shandong Amino-acids | 2,900,000,000.00 | 2,900,000,000.00 | |||||
| Shandong Holding | 786,000,000.00 | 586,000,000.00 | 200,000,000.00 | ||||
| Heilongjiang Biological Technology | 900,000,000.00 | 400,000,000.00 | 1,300,000,000.00 | ||||
| Shandong Jinghua | 160,000,000.00 | 160,000,000.00 | |||||
| Total | 6,173,278,842.12 | 1,246,000,000.00 | 586,000,000.00 | 6,833,278,842.12 |
(2) Investment in affiliates and joint ventures
Unit: RMB
| Name of Investees | Opening Balance (book value) | Decrease/Increase in the Current Period | Closing Balance (Book Value) | Closing balance of provision for decline in value | |||||||
| Investments Increased | Investment Decreased | Investment Profit and Loss Recognized under the Equity Method | Adjustment on Other Comprehensive Income | Other Changes in Equity | Cash Dividends or Profit Declared to Distribute | Provision for Impairment Accrued | Others | ||||
| Affiliate | |||||||||||
| Zhejiang Chunhui Environmental Protection Energy Co., Ltd. | 199,358,330.80 | 16,864,292.79 | 216,222,623.59 | ||||||||
| Total | 199,358,330.80 | 16,864,292.79 | 216,222,623.59 | ||||||||
4. Operating income and operating costs
Unit: RMB
| Item | This Period's Amount of Occurrence | Amount Occurred in the Previous Period | ||
| Income | Cost | Income | Cost | |
| Main Business | 2,385,252,517.66 | 1,634,468,165.07 | 2,235,493,773.37 | 1,357,878,710.73 |
| Other Businesses | 19,819,223.76 | 15,301,495.85 | 9,531,223.70 | 5,986,597.49 |
| Total | 2,405,071,741.42 | 1,649,769,660.92 | 2,245,024,997.07 | 1,363,865,308.22 |
Information about revenue:
Unit: RMB
| Contract Classification | Pharmaceutical chemicals | Total |
| Principal Place of Business | ||
| Of which: Domestic | 1,177,299,548.21 | 1,177,299,548.21 |
| Overseas | 1,227,772,193.21 | 1,227,772,193.21 |
| Subtotal | 2,405,071,741.42 | 2,405,071,741.42 |
| Main Product Types | ||
| Of which: Nutritional products | 2,352,864,603.63 | 2,352,864,603.63 |
| Others | 52,207,137.79 | 52,207,137.79 |
| Subtotal | 2,405,071,741.42 | 2,405,071,741.42 |
| Time of Revenue Recognition | ||
| Including: Commodities (Transferred at a Point) | 2,405,071,741.42 | 2,405,071,741.42 |
| Subtotal | 2,405,071,741.42 | 2,405,071,741.42 |
Information about performance of obligations:
N/AInformation about transaction price allocated to the remaining performance of obligations:
The revenue corresponding to the performance of obligations under the contracts which are signed but are not performed or notperformed completely at the end of this reporting period is RMB 411,632,910.53, in which RMB 411,632,910.53 is estimated to berecognized as revenue in 2021.
5. Investment income
Unit: RMB
| Item | This Period's Amount of Occurrence | Amount Occurred in the Previous Period |
| Long-term equity investment income calculated by cost method | 1,289,000,000.00 | 955,025,000.00 |
| Long-term Equity Investment Income Measured by Equity Method | 16,864,292.79 | 7,179,396.25 |
| Investment Income from Disposal Trading Financial Assets | -3,841,064.35 | -9,817,100.00 |
| Including: Financial Assets at Fair Value through Profit or Loss in the Current period | -2,653,997.46 | |
| Financial Liabilities Measured at Fair | -1,187,066.89 | -9,817,100.00 |
| Value with Changes Recorded into Current Profit and Loss | ||
| Interest income from interbank lending | 74,902,773.84 | 89,665,090.28 |
| Income from financial products | 22,964,570.95 | 67,316,825.30 |
| Total | 1,399,890,573.23 | 1,109,369,211.83 |
XVII. Supplementary Information
1. Breakdown of non-recurring gains and losses for this period
√ Applicable □ Not applicable
Unit: RMB
| Item | Amount | Note |
| Profit and Loss from Disposal of Non-current Assets | 1,065,564.79 | |
| The government subsidies included in the current profits and losses (excluding the government subsidies closely related to regular businesses of the Company and issued in the quota or quantity based on the national standards) | 76,380,676.96 | |
| Gains or losses from investment or asset management entrusted to others | 29,617,969.78 | |
| Profits and losses resulting from the changes in fair value for holding trading financial assets, derivative financial assets and trading financial liabilities, derivative financial liabilities and investment income from disposal of trading financial assets, derivative financial assets, trading financial liabilities, derivative financial liabilities, and other obligatory right investment, excluding the effective hedging businesses related to the regular business operation of the Company | 23,301,029.03 | |
| Non-operating revenue and expenses other than the above | 9,566,525.91 | |
| Less: Impact of income tax | 10,887,288.60 | |
| Total | 129,044,477.87 | -- |
For items defined as non-recurring gains and losses according to the No. 1 Explanatory Announcement on Information Disclosure forCompanies Offering Their Securities to Public - Non-recurring Gains and Losses, or non-recurring gains and losses items listed in thesaid document defined as recurring ones, please specify the reasons.
□ Applicable √ Not applicable
2. Return on net assets and earnings per share
| Profit for the reporting period | Weighted Average ROE | Earnings per share | |
| Basic Earnings per Share (RMB/Share) | Diluted Earnings per Share (RMB/Share) | ||
| Net profit attributable to common | 12.02% | 0.93 | 0.93 |
| shareholders of the Company | |||
| Net profit attributable to common shareholders of the Company after deducting non-recurring gains and losses | 11.38% | 0.88 | 0.88 |
3. Differences in accounting data between domestic and overseas accounting standards
(1) Differences of net profits and net assets in the financial reports disclosed according to the internationalaccounting standards and Chinese accounting standards
□ Applicable √ Not applicable
(2) Differences of net profits and net assets in the financial reports disclosed according to the overseasaccounting standards and Chinese accounting standards
□ Applicable √ Not applicable
Section XI Documents Available for Reference
1. Financial statements signed and sealed by the Company's legal representative, the person incharge of finance and accounting work, and the person in charge of accounting department;
2. Originals of all the Company's documents and announcements published on newspapersdesignated by the China Securities Regulatory Commission within the reporting period;
3. Other documents for reference.
Zhejiang NHU Company LTD.Legal Representative: Hu Baifan